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ppt on the Case study "Intel: Building a Technology Brand"

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  1. 1. Intel: Building a Technology Brand<br />By<br />M.Krishnan<br />Sashidharan.S<br />P.Vijaykumar<br />
  2. 2. The Intel Inside Campaign<br />
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  4. 4. Value of Intel Inside Logo to consumers<br />Market Cap before branding was $1 billion. By 2003, after the campaign was implemented, it reached $5 billion. <br />This growth of shareholder value illustrates the power of Intel’s branding strategy.<br />In 1992, the first year of “Intel Inside” campaign, worldwide sales rose 63%. <br />Awareness of the Intel logo amongst European PC purchasers grew from 24% at the start of “Intel Inside” campaign in 1991, to 94% by 1995 and in 2001<br />
  5. 5. Strengths<br />Intel found a way of taking away the mystery of the product, gaining the confidence of the end consumers that “Intel Inside” represented quality and reliability<br />It concentrated on increasing derived demand<br />Adopted both push and pull strategy<br />Relevant and simplified understanding of chips to customers<br />Associated Intel with processors, thus helping launch future chip launches<br />
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  7. 7. Weaknesses<br />Intel Inside theme made it difficult to diversify across other product lines apart from microprocessor without changing the theme<br />Conflict with Tier-1 OEMs<br />
  8. 8. Intel Inside Brand Equity<br /><ul><li> Active Engagement
  9. 9. Marcom Award, Grand Marquis</li></ul>Resonance<br /><ul><li>Trust
  10. 10. Self respect
  11. 11. Tech Savvy
  12. 12. Technology Leader
  13. 13. Innovator
  14. 14. Customer Focused</li></ul>Judgments<br />Feelings<br /><ul><li> Quality
  15. 15. Compatibility
  16. 16. Speed
  17. 17. CPU Brand
  18. 18. Linked with PC
  19. 19. Technology Driven
  20. 20. Name of the Company</li></ul>Performance<br />Imagery<br />Salience<br /><ul><li> Co-operative Advertising with OEM’S
  21. 21. Intel brand name linked with Microprocessors</li></li></ul><li>Continued use of Pentium<br />Intel Pentium had garnered huge brand recognition through press, technical magazines and ads.<br />Discontinuation of this theme would have meant drainage of efforts and resources put into building the brand Pentium<br />Also, introduction of processors happened every next year making it impractical to launch promotion campaign for every product<br />
  22. 22. What should AMD do?<br />AMD cannot even imagine a campaign like that of Intel’s<br />Intel has already established a name for itself in the customer’s mind through its campaign, so if AMD does something similar it would not prove to be as effective as Intel’s campaign<br />AMD should focus on better value for money, increased efficacy and penetration into frugal markets as PC industry is stagnating<br />
  23. 23. Intel’s Segmentation<br />Intel’s segmentation was based on performance which varied with price. Depending on it, the target market also differed.<br />Having a technological product with its specifications upfront actually helps the customer appreciate the benefits and shortcomings at the time of purchase and prevents any dissatisfaction thereafter.<br />It gives a wider coverage of the market<br />Xeon performed poorly in comparison to Opteron and it definitely needs up gradation<br />
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  25. 25. Was it the right move?<br />At the time of the case study the sales and production of computer were stagnating, as PDA’s and cell phones were on the rise and it creates a great opportunity for Intel to use their brand equity from the computer market and translate that into the cell phone and PDA.<br />A need to cut through the clutter of competitive activity<br />Marketing with the help of Steve Jobs! <br />Partner with giants in other industries. E.g. Google – Electricity, WiFi<br />
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  28. 28. Thank You<br />