Intel Branding Strategy Case

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The University of IOWA
Tipple School of Management
IMBA Program – Intake 6

Prepared By Group 2: Kimmy Wong
Diana Hung
Mike Yeh
Ken Wan
Date: 18/07/2009

1. Was the Intel Inside campaign worth it ? What were its strengths and weaknesses?

The unfavorable judgment against Intel “386” trademark in 1991 indicated that any competitor could market its product using the same marks, numerical sequencing, used by Intel. To differentiate from competitors and solve the problem of market confusion among the product offerings, Intel developed an alternative branding strategy by focusing on building the company’s brand image instead of product-based brand strategy. Under the new branding strategy, Intel was established as a brand, a reliable and premium brand, ably transferring the equity of “386” and “486” microprocessor to Intel, the company and to distinguish Intel products and to communicate the depth of Intel as a corporation with respect to its competitors as well.

To boost the awareness of Intel’s brand name and strong differentiation, the company employed a series promotion campaigns to reinforce the main message of “Intel Side” aggressively after loss of trademark. Detail of their promotion campaigns are as under:

Intel campaign has successfully introduced the microprocessor to the market and consumers can identify its microprocessor technology. Its success laid the groundwork for moving into next generation. Through repeat impressed promotional message be certain that consumer have Intel technology on the inside. As Intel is the leader and the best microprocessor supplier.

In Intel Inside campaign, the company applied “push” strategy to seek support of the OEMs by encouraging them using Intel microprocessor in manufacturing their product and including the Intel Inside logo in their print ads. Under this strategy, Intel found much infusive reaction from OEMs, created a great awareness of “Intel Inside” logo and driven positive perception and favorable association towards Intel brand simultaneously. With the help of the program, Intel cut the utter confusion clones bring to the marketplace. In turn, strong brand image and premium status has been built successfully. Moreover, the campaign powerfully in reinforcing on two key associations: “safety” and “technology”- whenever and wherever consumers saw the Intel logo and also created a brand image for products that fall under the Intel Side umbrella. At the same time, a “pull” effect was generated on the consumer and presented a very persuasive argument for OEM to use its product. In turn, it built a remarkable brand value to Intel, the company and its stakeholders as well.

This campaign had demolished the negative perception of Intel and well-reposition Intel as a premium brand with promising of “Safety” and “Technology”. The new established brand successfully differentiate its product from competitors and help Intel move the market forward into new generations of microprocessor and to leverage its advantage and equity to its new generation of technologies.

Frankly, the campaign is worth it since Intel got more than 700 OEMs to signed for the program and induce the first and second tier big OEMs to join co-operation program as well via the “pull” effect successfully. Consumer research indicated that most viewers of the TV ad remembered the Intel name instead of the product. The Intel, on the other hand, proved much more successful in educating the consumer on the specific product attributes associated with the Intel processor and created a favorable association and positive perception for consumers that they...
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