Intel Case

Topics: Marketing, X86, Intel 4004 Pages: 5 (795 words) Published: March 26, 2011


Intel makes the microprocessors that are found in 80 percent of the world’s

personal computers. In the early days, Intel microprocessors were known simply

by their engineering numbers, such as “80386” or “80486.” Intel positioned

its chips as the most advanced. The trouble was, as Intel soon learned, numbers

can’t be trademarked. Competitors came out with their own “486” chips,

and Intel had no way to distinguish itself from the competition. Worse, Intel’s

products were hidden from consumers, buried deep inside PCs. With a hidden,

untrademarked product, Intel had a hard time convincing consumers to pay

more for its high-performance products.

Intel’s response was a marketing campaign that created history. The company

chose a trademarkable name (Pentium) and launched a marketing campaign

to build awareness of the Intel brand. The “Intel Inside” campaign was

Intel’s effort to get its name outside of the PC and into the minds of consumers.

Intel used an innovative cooperative scheme to extend the reach of its campaign.

It would help computer makers who used Intel processors to advertise

their PCs if the makers also included the Intel logo in their ads. Intel also gave

computer manufacturers a rebate on Intel processors if they agreed to place an

“Intel Inside” sticker on the outside of their PCs and laptops.

Simultaneously with the cooperative ads, Intel began its own ad program to

familiarize consumers with the Intel name. The “Intel Inside” campaign changed

Intel’s image from a microprocessor maker to a quality standard-bearer. The

ads that included the Intel Inside logo were designed to create confidence in the

consumer’s mind that purchasing a personal computer with an Intel microprocessor

was both a safe and technologically sound choice. Between 1990

and 1993, Intel invested over $500 million in advertising and promotional programs

designed to build its brand equity. By 1993, Financial World estimated

the Intel brand to be worth $17.8 billion.

Intel continues its integrated campaigns to this day. For example, when

launching its Centrino mobile platform, Intel began with TV ads that aired in the

United States and 11 other countries. These ads include the animated logo and

now familiar five-note brand signature melody. Print, online, and outdoor advertising

followed shortly thereafter. Print ads ran in magazines and featured ads

that targeted that magazine. For instance, an ad appearing in a sports magazine

showed the logo in the center of a tennis racquet with the tagline “High

performance laptop. No strings attached.”

Simultaneously, Intel held a “One Unwired Day” event that took place in major

cities such as New York, Chicago, San Francisco, and Seattle. In addition to allowing

free trial Wi-Fi access, each city held festival events that included live music,

product demonstrations, and prize giveaways. The company also set up free access

demonstration sites (with wireless Centrino-powered laptops) in areas frequented

by road warriors, such as San Francisco’s airport. To boost interest in mobile computing,

the company partnered with Zagat Survey to produce a mini-guide inserted

into The New Yorker that identified more than 50 “Wi-Fi Hotspots”—mainly restaurants

and hotels—in the “One Unwired Day” cities. Finally, Intel ran online ads on

such Web sites as and Yahoo! created a Wi-Fi Center Web

site co-sponsored by Intel and featuring Centrino advertising.

The “Unwired” campaign was another Intel success in marketing integration.

The $300 million total media effort for the Centrino mobile platform helped

generate $2 billion in revenue for Intel during the first nine months of the campaign.

Among marketers, Intel won the Innovation award in the Business...
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