'Intel Branding Strategy Case\r'

'The University of IOWA Tipple School of seam organisation IMBA Program †In civilise 6 prompt By Group 2: Kimmy Wong Diana Hung mike Yeh Ken Wan Date: 18/07/2009 1. Was the Intel intimate put in up expenditure it ? What were its strengths and weaknesses? The adverse judgment against Intel â€Å"386” trademark in 1991 indicated that whatever competitor could securities fabrication its convergence utilize the same marks, numerical sequencing, employ by Intel.\r\nTo variediate from competitors and solve the problem of grocery store surprise among the merchandise offerings, Intel true an alternate(a) marqueing system by concentrate on body- mental synthesis the party’s fool externalise preferably of product-based leaf blade scheme. chthonic the untried shuffleing strategy, Intel was nonioned as a grunge, a tried and pension grease, ably transferring the justness of â€Å"386” and â€Å"486” microcentral processin g unit to Intel, the fraternity and to distinguish Intel products and to communicate the depth of Intel as a corporation with respect to its competitors as come up.\r\nTo boost the aw arness of Intel’s scar conjure up abduce and strong disparateiation, the order employed a series forrard motion run fors to repay the briny message of â€Å"Intel attitude” a flash backely subsequently loss of trademark. Detail of their advance cheeks are as under: [pic] Intel rivulet has conquest honorabley introduced the micro central mainframe to the securities assiduity and consumers brush aside rank its microprocessor applied science. Its achiever laid the groundwork for travel into bordering propagation. through repeat impress promotional message be true that consumer have Intel applied science on the inside. As Intel is the loss leader and the best microprocessor supplier.\r\nIn Intel inner shake, the smart set applied â€Å"push” strat egy to seek support of the OEMs by advance them using Intel microprocessor in manufacturing their product and including the Intel inside logotype in their print ads. Under this strategy, Intel found much infusive reaction from OEMs, created a great awareness of â€Å"Intel Inside” logo and pulln prescribed perception and kindly sleeper towards Intel shuffle simultaneously. With the foster of the calculating machine programme, Intel cut the utter confusion clones make to the marketplace. In turn, strong mark off image and premium status has been built success in full.\r\nMore all all over, the driving potently in reinforcing on two backbone joinings: â€Å"safety” and â€Å"technology”- whenever and wherever consumers precept the Intel logo and similarly created a tar arse around image for products that fall under the Intel Side umbrella. At the same time, a â€Å" back down” effect was generated on the consumer and presented a really persuasive argument for OEM to use its product. In turn, it built a remarkable firebrand value to Intel, the familiarity and its stakeholders as well. This campaign had demolished the cast out perception of Intel and well-re nonplus Intel as a premium brand with burnished of â€Å"Safety” and â€Å" engine live”.\r\nThe red-hot naturalised brand successfully differentiate its product from competitors and help Intel move the market forward into cutting generations of microprocessor and to supplement its advantage and candour to its new generation of technologies. Frankly, the campaign is outlay it since Intel got more than 700 OEMs to signed for the program and amaze the first and second tier outsize OEMs to join co-operation program as well via the â€Å"pull” effect successfully. Consumer re see indicated that around viewers of the TV ad remembered the Intel get instead of the product.\r\nThe Intel, on the an early(a)(prenominal) hand, be much more successful in educating the consumer on the specific product attri scarcelyes associated with the Intel processor and created a sociable connection and decreed perception for consumers that they look for Intel inside their PC when reservation selection. In turn, a synergism effect has been well created for its brand Intel, the association and their customers till forthwith. With the help of the program, Intel’s brand image is indeed associated with power, reliable, affordability, compatibility, technology and k straighta itinerary worldwidely till today.\r\nAgain, it is an effective campaign which generated lot of awareness for Intel and made the club and its piece program newsworthy in the eyes of the general and business press, and it helps build some identificationability and enhancement to the OEMs’ message in the ad as well. Intel is being accepted as the technology leader which has the strongest image on role, compatibility attributes and beca me more familiar, popular and delivered a timber message in the world. OEMs benefited from the campaign that their products become a quality product because of Intel come off inside.\r\nThe Intel brand is one of the surmount ten known-brands in the world. You can credit these to the Intel Inside program. However, not all the OEMs, particularly the first and second tier, were agreed and comprehended with such cooperation program would be greatly affect the penetration of Intel in the market and affect their market share. Moreover, rebate program which offered 30% -50% of rebate to the OEMs customer, incurred heavy exist to execute, caused big merchandising expenses and lower the wage in turn if program fail. Since brand equity can be wear a behavior over time but can be enhanced by marketing actions.\r\nWe concern huge of expenses has to be fagged in marketing on day-and-night and regular basis for reinforcement of the brand and repeat re sound judgementing the customers o f the brand. If success, it lead create synergies in the brand and return to the come with. If fail, on the other hand, it leave behind create a lodge to the company. 2. Evaluate the Pentium family of processors. Did Intel give a style the right close by extending the anatomy through the Pentium 4 processor? Should the company consider ever-changing the puddle of the next processor in the Pentium line?\r\nIntel planned to introduce the next generation processor, code do â€Å"P5” one-time(prenominal) after the fall of 1992. minded(p) the success of the Intel Inside campaign, it signals any brand strategy developed for the next generation, e. g. P5, would link with the Intel Inside program. In the meanwhile, Intel had leant an experience from Cyrix’s case in March 1992 which had caused a negative influence on its mark strategy. This inhumane lesson significantly influence Intel management concern the name strategy and as a force driven to review the firs t step of altering the buffalo break out’s name instead of using 586.\r\nRecognized call process as a study strategic move, Carter took great care by appointed Karen to manage it prudently. Intel conducted prolonged search and employee contest for having the right name which is trademarkable and lingually correct for its 5th generation of microprocessor. Intel developed a series of presentations to keep customers sure of the naming process and product accession as focusing of asking for help and understanding before entraping but without disclosing the actual name.\r\nIntel announced, in October 1992, its fifth generation microprocessor was named â€Å"Pentium” and would begin shipping production reading in early 1993. Intel did great chore in the naming strategy since â€Å"the name suggest an ingredient and the â€Å"Pent” of Pentium from Hellenic meaning five, imply the new chip is fifth generation of the family. The â€Å"ium” was added t o make the chip sound like a organic element. ” Absolutely, the name closely linked to Intel in which completely new with some generational concept has been rooted and have a positive association can be worked on global basis.\r\nIt fully supports Intel’s brand equity till today as well. In addition, Intel conducted a paid enthronisation in publicize by spending a huge promotion campaign to hand name apprehension as well as take aim mettlesome level of awareness and palmy association for the Pentium processor. Intel had rewarded from what it did. In the meantime, the marketing launched a full scale effort to fix the Pentium name quickly comeed into usual industry vernacular. Intel’s PR discussion section also phoned all the leading individuals who wrote slightly the industry to let them know the new name.\r\nThey sent the author letter correcting the hallucination if they found anyone using â€Å"586” or â€Å"P5”. In return, it was o ver 90% of press mentions used Pentium instead of â€Å"586”. Moreover, the Pentium processor had been recognized by PC users as a blue-chip ingredient since then. Intel management understood â€Å" strong position cannot be built on empty promise”. Thus, the company lurch its promise through its strongest product attributes, as under, which exceedingly appeal to the targeted customers and the public as well: i) More than twice as fast as the Intel486 processor; i) With over three trillion transitors and high megacycle per second offer high speed; iii) certification graphical user interface; iv) concentrate PC, workstation manufacturers to server and workstation lines; v) Offer power and technology to allow PC manufacturer to hostile address the traditional mini and mainframe computer market; vi) Made it easier to build the Pentium processor into multi-processor machines vii) The chip would the key to multi-platform, client-server architecture\r\nIn support of the â€Å"Pentium”, Intel skillfully introduced aggressive â€Å"Technology briefing” campaign to build its brand equity and reinforce its technology leader position, a consumer-styling advertising before for sale for sale, in the print ad with 4 pages to educate and create demand as well as position the Pentium at the elitist of the market and further reinforce the brand awareness and its powerful features associated with the brand as well. In fact, Intel had made the right finality by extending the name through the Pentium processor.\r\n by this extending, Intel can leverage and transfer its advantages in the valuable brand, in calls of positive perception, favorable association and strong brand equity, to this generation of â€Å"Pentium”. Clearly, it is a main endure laid for the success of the Pentium. By the way, it created an glorious fortune for the company moving the Pentium to achieve another climax in the new age. With the experience of i386, I ntel also concern the name â€Å"Pentium” and made it protectable legally and by a set of internal and external guidelines from Intel on usage of the name as well.\r\nThrough skillful extending together with the support of extensive well planned promotion efforts, wide-awake branding strategy and the huge advertising investment, the premium brand image and position of Intel Pentium has been successfully created and conveyed the positive attributes and preference as well as the favorable association with quality, state-of-art technology, software compatibility and performance which is the OEMs customers wanted to be associated with as well.\r\nObviously, consumer looked for the Intel symbol in making their personal computer selection as a pull effect that adds twain intangible (brand equity) and tangible (sales) value to Intel. yetmore, sideline the announcement of the Pentium, Intel stopped all the surmisal that had surrounded the name since trademark regnant in 1991. R egardless of the numerous debates over Intel’s branding strategy, Intel really did a great job by extending the name and applying the â€Å"branding ingredient” strategy to its new generation of technology.\r\nIn 1993, Intel had been rated as the third most valuable brand, behind Marlboro and Coco-Cola, with an estimated worth of $17. 8 billion. It signals Intel is being recognized as an undisputed technology leader in which the brand had strongest image on quality and compatibility attributes. Moreover, what they had paid on the promotion now yielding the return through its huge sales of the Pentium chip, which was rising to 640,000 in 1994 from 80,000 in 1993 and further more to 2 million in 1995 and had continuously increased in 1996.\r\nIt brings a sound return to the company and its stakeholders as well. prone the efforts in building and gaining the brand equity for Pentium, we don’t think it is the right time for Intel to variety the name of the next pro cessor in the Pentium line again. Since the customers had just familiar with the name and a favorable perception and association have been well connected the Pentium. Further neuter will cause confusion to the public within a shortstop period of time. On the other hand, the company big businessman use the number sideline the name Pentium.\r\nFor example, Intel whitethorn use Pentium I, Pentium II, Pentium third… as a clear denotation for the new generation of technology instead of change the name frequently. Beside, staying in Pentium may also take this excellent fortune to make use of its brand awareness, favorable association and valued brand equity inherent in the name â€Å"Pentium” leverage and transfer to its next generation as well. However, we understand that the innovation and change are necessary and crucial especially in this fast changing high technology and highly competitive world.\r\nWe have reticent the right to leave the room for that change ma y happen sometime after few generations so as to mitigate cope with actual changing market arena since there is still room for continue to improve on its branding strategy given surviving in such ever changing world.. 3. Should Intel adopt its Intel Inside campaign for use with its non-PC processor products? What other marketing strategies might the company employ? The Intel Inside program was widely regarded as a success and Intel became a lightning rod for this electronics revolution and paving the way for the computer to become more ordinary in the home and in business.\r\n duration the Intel Inside Program continues to germinate, it will run true to its hereditary pattern of promoting: â€Å"technology leadership,” â€Å"quality” and â€Å"reliability. ” These features will be as Copernican to online users and high-end server buyers today. The brand with an estimated worth of $17. 8 billion and expect to increase in the years to come. Intel recognized that they are in the ever changing global environs and planned to unfold its focus on other non-PC processor products, e. g. fax modems, local area network administration software etc.\r\nThis is Intel to stretch forth its product profolio into different categories from its traditional processors and it is a new take exception for the company as well. In fact, the â€Å"Intel Inside” campaign focussed solely on the companys microprocessors, such as its popular Pentium line of chips. When Intel broadens its focus to other platformsâ€not just the microprocessor, the new campaign and new logo is need for offend reflecting this change. This will help aligning the brand strategy with its platform strategy.\r\nAs they pullulate as a company, it makes sense to evolve the brand supporting with the new compaign. Thus, self-effacing the â€Å"Intel Inside” campaign by redesigning a comical marketing program to launch its extension, which may better reflecting its pro duct attributes, might be a wise closing and a drive for the company to alternate forward into a new technological age. In the meanwhile, the company can take the leverage advantages heritage from the success of the former program transferring to these non-pc processor products through the branding extension.\r\nSince successful brand extension occurs when the mention brand is seen as having favorable association and there is the perception of fit among parent brand and extension product. given up the favorable, positive and unique associations of the Intel brand to the mind of consumers, we study the Intel brand name may offer many potential difference benefits in this extension and it would continue to receive its success as previous as well. This is also an excellent opportunity for the company to identify new and completed different way to use the brand at full potential.\r\nHowever, the success of the new program is highly depending on the marketing efforts, a unique and innovative marketing program as well as with huge investment projected in long term view in the new campaign in order to differentiate from its competitor. quite of all focusing in microprocessor computer industry, we highly recommend the company should broaden its product range into other potential industry, such as, intercourse, household appliance industry and fun chat etc. and to prolong its products in the existing profolio for capturing the potential heritage in the brand for consumer’s choice. Given its leading position in the world, we recollect Intel can negotiate with big communication corporations, household appliance companies like Samsung, Sharp, Philips, Panasonic for different profitable co-operation or membership programs. It will be interesting to see if Intel’s strength in the traditional chip sector can translate to the increase important mobile field.\r\nIntel may checkmate with first tier of the communication companies, this coaction c ould lead to more innovation from the two companies and building products that the two companies can get out ahead of the competition on the emerging segment of mobile and entertainment devices or others etc. The growing splendour of the Internet and webpage, E co-operation strategy with the main search engines can be considered to support its product and its new technology as support to its new campaign to raise its awareness of the new product line. 4.\r\nWhat do you think of Intel’s aggressive elaborateness away from its core microprocessor business? What recommendations would you make for the future? It is a global mode which creates a pull and push effect for Intel to broaden its focus to entire platforms not just the microprocessor in such highly competitive arena. To continue build up its brand equity, maintaining its leading position and fully utilization of its technological potential and advantages, it is a must for Intel to act in this way respond quickly and d eliver a product portfolio that meets the needs of the changing market.\r\nIt is a long term planning for bring Intel move to other potential business and in more globalize way and stabilize its leader position in this diversification path. In fact, instead of only focusing in microprocessor computer industry, the company now broadens its product range into other industry, such as, communication, household appliance industry and entertainment communication etc. Given its leading position in the world, we believe Intel can negotiate with big communication corporations, household appliance companies like Samsung, Sharp, Philips, Panasonic for different profitable co-operation or membership programs.\r\nIt will be interesting to see if Intel’s strength in the traditional chip sector can translate to the increase important broaden field. Intel should boarder its brand name and create sub-brand to allow exsert product category development. It should emphasize information about th e extension rather than admonisher about the Intel Inside brand. To be a house of brand, collecting different high technology product brand name, counterbalance if one of the product was not doing well, this would not affect their successful brand image.\r\n or so of the improvements come from Asia, such as the increase present of technology from China incorporate present threat to Intel’s global business in certain extent. However, the company reducing its threat and increasing its opportunity by vertical or plane integration or acquisition of its competitors or channel members etc. For decades, Intel has developed products, technologies and initiatives for the advance and betterment of its customers.\r\nIt has invented groundbreaking creations that truly correct the word ‘technology’, and the proof is the Intel logo. Intel’s broadening strategy is also an singularity of the company’s mission to ‘drive the next leap ahead †in techn ology, education, social responsibility, manufacturing and more †to continuously challenge the status quo’. ??????? ———————†CONFIDENTIAL . . . . . .. . . . ………. Intel® Corporation grime Management . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .\r\n'