Case- Inside Intel Inside
Mr Bobby Hajjaj
Intel has become one of the world's most recognizable computer brands following its long-running Intel Inside campaign, which started in 1991. Intel, initially a semiconductor-maker company, is based in Santa Clara, California. The five-note jingle was introduced the following year for its tenth anniversary which was heard around the world. It is one of the most powerful brands in the corporate world. It started developing microprocessors from the 70s and is known for its microprocessors. Intel’s microprocessors are found in over 80% of the PCs sold worldwide. It can thus be inferred that Intel is in fact, the leader in the microprocessor market. The PC market incurred strong competition in formative years and Intel emerged as a strong player. Intel emphasized its brand name by carrying out the ‘Intel Inside’ brand ingredient program whereby it launched co-op advertisements incorporating the OEMs. This created an expansive brand awareness and recognition making consumers weary about microprocessors.
The purpose of this paper is to suggest the importance of marketing for Intel to execute a marketing practice that would give Intel a competitive advantage in addition to its innovative microprocessors status. Thus Intel Inside as a brand can provide value to its users.
Five C’s Analysis:
* Company: Intel is the world's largest manufacturer of CPUs and chipsets. They dominate the Microprocessor industry with around 80% of the market shares. Their main priority is leading technology and they mainly focus on the reliability. These are its core brand attributes.
* Customers: Intel typically has two customer bases. The first is the business users who are mostly the OEMs like- Microsoft, DELL, Compaq, NCR etc. The second base consists of the consumers who use computers for business, educational or just for recreational purposes.
* Competitors: Major competitions faced by Intel despite capturing 80% of the market share are from AMD (Advanced Micro Devices), Texas Instruments, Cyrix also the AIM alliance consisting of Apple, IBM and Motorola producing RISC chips.
* Collaborators: For Intel major collaborators would include the Original Equipment manufacturers (OEMs). These entities incorporate Intel products, which are basically their respective building blocks, in their macro-products. They have been very beneficial during the ‘Intel Inside’ brand ingredient promotional campaign whereby the co-op advertisements were carried out. Other collaborators include DELL and such who use Intel products.
* Context: Intel is currently operating in such a market where the sales of desktop computers are declining in contrast to the quick rise in the sale of digital portable devices. In addition to the current market trend, the ever changing technological innovation is another aspect Intel needs to take care of. Customer needs are also under constant change. This causes the product life cycles to be short either directly or indirectly. On top of it, Intel must abide by some regulations set by the Federal Trade Commission Authority.
Outstanding performance for digital media applications
OEMs and End Users
At what price?
$64 to $4227
-Sold under umbrella brand: ‘Intel Inside’
* Itanium – 1 A 64, Xeon, PIII Xeon – Servers and Workstations * Pentium 4, Pentium III and Celeron – Desktop Computers * Mobile PIII – M, Mobile Celeron – Mobile Computers
-Full line of Microprocessors ranging from $64 to $4,227.
-Cost of sales R&D and cost is very high.
- Due to extreme rivalry among the competitor customers became more prices sensitive. Place:
-End-aisle displays. Retail Stores and Hands-on demonstration -For advertising dollars to display logos in print ads and on...
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