Intel Case Study

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Question 1:
a. Intel’s product is intangible to the final user. Intel’s i386 SX was one of their most advanced products, but due to some legal issues it could not trademark it, making it vulnerable to its competitors. This shows that before the ‘Intel Inside’ strategy Intel’s product could not be differentiated amongst its competitors, even though it was Intel’s prodigy. And so the increase in competition and the aspect of no distinct functional or process benefits in the products made the consumers very confused. There was a need to create brand awareness among direct and indirect consumers. Now microprocessors are not things that consumers would buy on a daily basis as they fall under the category of unsought products. And so Intel took a brave step initiated the ‘Intel Inside’ campaign promoting the microprocessors in a way that it made the consumers aware of this ‘chip’ being in a computer which credited those computers to be of good quality and technologically advanced. The use of the ‘Vacancy’ sign in the television commercials showed that Intel was always preparing for the future and advancing their technology and that their newest product was like a breakthrough. Before this campaign Intel was subjected to focusing only on promoting it to only their immediate buyers, but after this campaign they made their presence felt in the eyes of the general public. This change of focus was more like a re-positioning tactic, as instead of marketing to PC manufacturing companies they decided to target their final consumers itself, which helped them build the consumer’s trust and familiarity with Intel, giving Intel a comparative advantage over other products. By gaining the consumer’s trust Intel, could extend its product lines and depths with the acquired brand equity and raise itself as a premium product in future. Before the ‘Intel Inside’ campaign they used a Hi/Low pricing strategy by selling their 386 chip at the price of...
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