Advertising & Branding summary

Case: Inside Intel Inside

Big question: is Intel planning to extend its Intel Inside brand campaign to other product categories, such as cell phones, PDAs (Personal Digital Assistant), and so forth? Intel Inside campaign was more than 10 years old, and it succeeded in creating one of the most valuable brands in the world. Pamela Pollaces, vice president and director of Intels worldwide marketing operations, primary responsibility to protect, sustain and build brand equity Risks by extending the brand they would be exploring uncharted territory. Also, if this happened, they would be diluting the brand in some way. The cost of it would be damaging the brand equity theyve been working on so hard. Intel: business of microprocessors, (silicon chips) a central processing unit that controls processing of data in PCs, servers, workstations and many other electronic devices. They represent from 20% to 40% of a PCs manufacturing cost. They had short product life cycles Appearance of Apple (without Intel chip) Intel immediately set out to become the leading chip supplier in this market. 1980 Intel secured a contract with IBM Personal Computer, gaining 70% share of the market. Chip 386 first microprocessor that could operate multiple operating systems Slow adoption of this last chip. People wanted the previous version (286) They wanted to prove if the problem was that end users werent aware of the product differences marketing experiment market research: problems they found: 1. Computer buyers believed the 286 was capable of doing everything they needed to; so they didnt had the need to upgrade it 2. Concerns that software used with their 286 wasnt compatible with 386 Challenge: change perception low-cost experiment using billboard advertising in a single market; at the beginning they had the 286 number crossed, and then they had the 386 number enclosed in a circle. They also said 386 was the same price as 286 but with more advantages (Red X Campaign). Results: sales of 386 began to pick up; customers changed their buying plans as a result of the 6 week campaign. The problem even though this was successful, it wasnt going to work with other products that had to be introduced every other year. Solution to create an umbrella brand that could span (abarcar) successive generations of products. Answer Looking for umbrella brand names they chose Intel. The Computer Inside. Problems with Original equipment manufacturers (OEM). They ended up designing a co-op advertising program with the OEMs. In the program, Intels OEMs would be able to accrue co-op advertising dollars on the basis of their

purchases of Intel chips. Also the OEMs had to put Intels logo in their ads and on their computers. The logo said simply Intel Inside. There 3 goals: 1. Create more advertising in the industry 2. Get their logo on OEMs products 3. Get consumers to pay more attention to microprocessors 300 OEMs signed under this program. The co-op ads were supplemented by Intels own advertising campaign All Intels advertising were designed to explain why having Intel Inside was important; the 2 attributes they wanted for people to associate were safety (reliability) & leading technology. 94: Introduced Intel Pentium processor under the Intel Inside umbrella. Animated jingle five-tone melody played at the end of every radio & tv co-op advertisement. Bunny People characters 1997 Super Bowl immediate hit Intel ranked the 6th most valuable brand in the world With the competition, they had to double up on its R&D investment (2 generations of chips at the same time) 1994: small crisis with a minor flaw in the new Pentium processor - they replace all 2002: marketing team was working closely with the technology teams. Now, after marketing teams do market research on consumer needs, they talk to the technical folks to see how to turn those consumer needs into product features. For this period, the companys brand image didnt change. The core values of the brand remained the same. Advertisements became more and more creative. Pentium 4 chip was considering to offer outstanding performance for digital media applications; Intel had focused much of its Pentium 4 processor advertising on digital media. Ads were controversial because they were featuring the Blue Man Group. This generated controversy; however Intels marketing dept. believed this group represented creativity, innovation and simplicity. Going back to the initial question, Pollace says: Intel did not dominated these non-PC markets the way tit did the PC market. However, it did maintain a respectable presence in these markets with its StrongArm processor, which was used in several popular handheld computers. Although, the co. had experimented with putting the Intel brand on other devices in the past, but it had retreated from these efforts when it had become apparent that the co. could not make returns in these markets commensurate with the level of returns from the processor business. More generally, it was not clear that consumers would respond to any kind of ingredient branding campaign in these categories