INTEL- THE COMPONENT BRANDING

SAGA

GROUP MEMBERS:MANISHA VERMA

MANISHA ROYKUNASHNI MEHERJI

MEGHA BHARTIYA

Established in 1968 by three engineers to develop technology for silicon based chips.This led to the formation of Intel (Integrated Electronics)Main buyer was Busicom, a Japanese company that manufactured calculators.4004, world’s first microprocessor chip made by Intel was released in 1971After the success of 4004, Intel released the 8008 microprocessor in 1972, which was used in a PC called Mark-8. Released 8080 in 1974 and 8086-8088 in 1978. the later was chosen by IBM to make new PCs and it became a huge successThis was followed by the release of 80286, which was the first processor that could run programs written for its predecessor.

COMPANY PROFILE

CORE BUSINESS

MAJOR BUYERS

develop technology for silicon based chips.BUSICOM (JAPANESE CALCULATOR MANUFACTURING COMPANY)MARK-8( WORLD’S FIRST HOME PC)ALTAIRIBM

To create awareness among PC users about Intel and its products.Most PC users were not even aware of the availability of advanced processors and their cost-saving performanceThis realization was inspired by “Moore’s Law”, which stated that ‘the number of transistors on the microprocessors roughly doubles every 18 months to two years’.Initially, interactive marketing and B2B interactions increased customer awareness among business users.Creating a strong brand to communicate with the consumers.To present the microprocessor as a ‘key component’ and ‘not just a component’ in the computer.

WHY BRANDING INTEL??

ELEMENTS OF MARKETING INTEL

BRANDING STRATEGY •TO COMMUNICATE WITH THE END USER.•GAINING CONSUMER CONFIDENCE IN INTEL AS A BRAND.

PURE TECHNOLOGY COMPANY •EMPHASIZED THE ROLE OF MICROPROCESSORS.•HIGHLIGHTED THAT INTEL PRODUCTS WERE TECHNOLOGICALLY ADVANCED.

COOP PROGRAM •SHARED THE ADVERTISING COST WITH OEMs FOR PRINT. ADVERTISEMENTS THAT INCLUDED THE INTEL LOGO.

WEB ADVERTISING •CONVEYED THE ROLE OF CHIPS IN GIVING THE CONSUMER A GOOD INTERNET BROWING EXPERIENCE.•SUPPORTED E-COMMERCE MARKETING.

Promoted Intel’s MMX technologically featured people (bunny people)Company’s chief executive was also a part of it. This portrayed that employees at all levels were equally committed to innovation.Catchy, unusual campaign went on to become the most well remembered advertisement.

THE “BUNNY PEOPLE”

INNOVATIVE ADVERTISINGTO COMMUNICATE WITH THE END USER BY CREATING AWARENESS FOR INTEL PRODUCTS

GAINING CONSUMER CONFIDENCE IN INTEL AS A BRAND.

CREATED AN IMPACT AMONG END-CONSUMERS

PROJECTED INTEL AS A “PURE-TECHNOLOGY” COMPANY

EMPHASIZED THE INNOVATIVE AND TECHNOLOGICALLY ADVANCED PRODUCTS

SHOWED THE COMMITMENT OF THE COMPANY TOWARDS CREATING “NEW”

TOOK THE FIRST- MOVER ADVANTAGE IN THE INDUSTRY BY GOING FOR PRINT AND TELEVISION ADVERTISEMENTS

Intel Inside Program to promote and support e-commerce marketing activities undertaken by computer manufacturers.Entered tie-ups for innovative web-based marketing and sales deals.By doing so, it marketed its chips as a component brand during online PC purchases throughout the world.Sold merchandise such as books, T-shirts, pens, etc. through its website to popularize the Intel logoSet up the Intel Inside Online Network, a web-based tool that managed business transactions related to the company’s coop advertising program.

INCREASING BRAND VALUE

INTEL’S BAD FORTUNES

In 2001,profits decreased to $1.29billion.

IT slump and the US economic slowdown

Lower average selling prices of microprocessors and decrease in sales

Bad publicity for Intel due to complaints of ‘abusive marketing practices’

Alleged that Intel gave subsidies to PC vendors for opting for Intel microprocessors and using the ‘Intel Inside’ logos or tunes in their advertisements.

In 2002, it faced a nationwide class action suit regarding the performance of Pentium 4 processors.

PROBLEM INITIATION FOR THE COMPANY – 21st centuryBad publicity for Intel due to complaints of ‘abusive marketing practices’.Led to virtual stranglehold on the microprocessor market.AMD took advantage of this situation by increasing its focus on marketing its processors.AMD launched a multimedia campaign similar to that of Intel.Moreover, AMD processors were reasonably priced and were of competitive quality to that of Intel.

THE ROAD AHEAD

Interactive marketing to increase and sustain business users.Major investments in R/D to make new technologically advanced products.

Putting the focus on high quality products and process and communicating the same to the end-users.Keep the customer involved with the company by increasing interaction through media and campaigns.

Market research- to understand the needs of the customers.

THANK YOU