SCHOOL OF BUSINESS
Case Study: Intel
Course Name: BMKT505 – Marketing Management
Fatima Haydar , Fatima Koussa
11231774 , 11010172
Hanna Maalouf, PhD
1- Discuss how Intel changed ingredient-marketing history. What did it do so well in those initial marketing campaigns? Intel Corporation is an American multinational chip maker. Intel is one of the worlds largest and highest valued semiconductor chip makers, based on revenue.] It is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel developed the chips which set the standard for personal computing during the 1980s, beginning with the 8086 chip and then developing a series of product improvements. Competitors adopted the same naming convention, and Intel’s product name could not be protected. Thus Intel has to take action to become distinctive to consumer. Intel began transition from a microprocessor producer to a branded product company. They lunched the “Intel Inside” campaign as an ingredient branding marketing campaign. Intel has encouraged almost 200 Other Equipment Manufacturer partners with the objective of creating a consumer brand to make sense of the rapidly changing product cycle. In 1991, Intel launched the successful co-op program in which they convinced manufacturers to place the "Intel inside" logo unit in their advertising and other marketing material. The name "Intel Inside" became the first trademark in the electrical component industry. This campaign focused the entire organization around the brand and created a highly effective advertising campaign. The name "Intel Inside" became the first trademark in the electrical component industry. This campaign focused the entire organization around the brand and created a highly effective advertising campaign. The Intel Inside campaign aimed to "educate both the retail sales associates and the consumers about the value of Intel microprocessors, and to explain to them the differences between the microprocessors" - without the technical jargon. Many consumers were uncertain about the quality and reliability of microprocessors, and Intel found a way of taking away the mystery of the product, gaining the confidence of the end consumer that "Intel Inside" represented quality and reliability. At first this met with skepticism, outside the company and within it. But that didn't deter Intel. As well as advertising for itself, it had the bright idea of contributing directly to PC makers' campaigns-as long as they promoted Intel at the same time. The advertising results were stunning. For example, late in 1991, Intel research indicated that only 24 percent of European PC buyers were familiar with the Intel Inside® logos. One year later that figure had grown to nearly 80 percent, and by 1995 it had soared to 94 percent and continues at these high levels today. Ten years into the campaign, products that don't boast the presence of Intel inside are bound to arouse suspicion among consumers. "People will wonder, "Why don't they use Intel chips? Are they using something cheaper, or not as good?" Computer manufacturers began co-branding their computers with Intel, the logo gained wider recognition, and consumers perceived it as a benefit in performance. One of the most important benefits of this marketing strategy is creating a quality standard. Since Intel taught it’s consumers to "look for the Intel Inside logo" as an assurance of quality. Intel has been linked to premium brands like IBM and Compaq -they have created the lasting impression that Intel makes something worth paying more for. Intel issued a platform that included a new microprocessor, an extended battery, and wireless capabilities. The company launched a multimillion-dollar media effort around the new platform called “Unwired”, which urged the wired world to...
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