The highlight of this particular case was the fact that, Pamela Pollace the vice president and director of Intel Inside’s marketing operations was contemplating to extend its Intel Inside brand to other product categories. After thorough analysis of this case it would be wise for Intel NOT TO EXTEND its brand whatsoever. Instead Intel should continue to have its microprocessors solely for personal computers. Hence extending the brand could adversely affect the brand image of Intel Inside. Over the years Intel Inside has been renowned for producing microprocessors that are safe and reliable, therefore extending Intel Inside brand to other electronic devices would be of immense risk. In addition such an extension would contradict the value proposition. Even if Intel goes ahead with the extension there will be a degree of uncertainty surrounding the move. Intel Inside is a high performance brand therefore if it fails to deliver the expectation of the market, which could result in brand dilution, eventually this will damage the brand equity which is going to be extremely difficult to restore. Currently Intel produces and sells flash memory chips which are doing well. 60% of Intel’s flash memory goes to cell-phone market, and the other 40% goes by shipment to other PDAs and set-top boxes. But, this does not make considerable profit in the profit margin. On the other hand Intel’s key source of revenue is from the Desktop Computer Processor market segment which yields 39% of the total revenue compared to a mere 11% from Mobile Computer Processor. Therefore, it is best for Intel to continue its present activities instead of brand extension.
Mobile/Notebook Computers: Mobile and Notebook computers have been an increasing mode technology which in future has the potential to dominate the tech industry making itself a prime product for general people to use as a substitute to the desktop or laptop computers. Given Intel’s reputation...
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