Intel Inside Branding Case Study
Intel Inside Branding Case Study
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This 3 page Reader was uploaded by Stephanie Miller on Wednesday January 29, 2014. The Reader belongs to a course at University of California Santa Barbara taught by a professor in Fall. Since its upload, it has received 284 views.
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Date Created: 01/29/14
Entrepreneurial Marketing Intel Inside If you find any useful materials for this assignment please post the paragraph or link to articles here Here is a pretty good link and a couple highlights from the link httpwwwintecompressroomintel insidehtm httpwwwintangibebusinesscomBrandServicesMarketingservicesNewsI ngredient brandingcasestudyIntequot 466htm httpwwwmodern8comdeliveringtheartofbranddesignfromthescienceofbrand strategy Intel would create a coop fund where it would take a percentage of the purchase price of processors and put it in a pool for advertising funds Available to all computer makers it offered to cooperatively share advertising costs for PC print ads that included the Intel logo After the OEM program was underway Intel started print advertising around the world to explain the logo to consumers Along with colorful TV advertisements Intel added a distinctive and memorable threesecond animated jingle Starting in 1995 the nowfamiliar tone helped cement a positive Intel image in the minds of millions of consumers The advertising results were stunning By the late 1990s the program was widely regarded as a success Intel39s innovative marketing helped broaden awareness of the PC fueling consumer demand while prices continued to plunge After six years and almost two decades in the PC business Intel had arrived in the public consciousness as a worldclass player Its brand was known worldwide its name synonymous with the computer industry Intel Branding Case Study 022712 Before 1989 the micro processing chip within a computer was considered a commodity item and nobody knew what chip was in their computer A Computer was a computer and it contained dozens of parts which made it run on a day to day basis As the purchase of personal computers started to take off Intel saw an opportunity to brand their processors to set themselves apart from the competition Instead of directing their branding and value proposition to their direct customers Ie computer manufacturers they instead focused their attention on the end user Advertising agency Dahlin Smith White in Salt Lake city took on the challenge of creating the Intel Inside Logo and branding the company which led to its total market dominance over the last 10 years controlling 90 of the market in 1997 Intel positioned themselves as a premium product which would deliver the highest results and sell to the best computer manufacturers They were able to convince computer manufacturers that their computers would have a higher perceived value if they purchases the Intel branded micro processors Dahlin Smith White created the tag line Intel The computer inside Later shortened to Intel Inside portrayed the value of the chip inside on the overall performance of the computer Computer manufacturers saw the effect that the branding experience had on the customer which began a market pull for Intel chips Not only did Intel require that computer manufacturers include the Intel Inside logo sticker on each individual computer those same computer manufacturers were happy to do so By slapping an Intel Inside sticker on their computers they were creating a differentiating factor about their own brand and portraying their own overall brand as meeting a higher standard with the use of Intel products Now computer manufacturers that would advertise and market their computers were incentivized to include the Intel logo growing the brand and raising the value of the computer in question Between 1991 and 1992 the number of European PC buyers who recognized the Intel logo jumped from 24 to an astounding 8O1 Furthermore the clear branding of Intel Inside allowed them to separate themselves from other microprocessor manufacturers This was in direct response that the court ruling that they did not own trademarks to their 386 and 486 models No matter what the microprocessor was still a component found within computers so Intel had to work closely with computer manufacturers to make their brand known and available to the public Intel convinced publishers and media organizers to lower their prices for manufacturers who participated in the program which seemingly brought the advertisers more business through the Intel Inside program Intel also adopted an incentive based cooperative advertising program 1 http wwwintangiblebusinesscomBrandServicesMarketing services News Ingredient branding case study Intel466html which might be one of their most amazing moves This was available to all computer makers and offered a pool of shared advertising money taken from a percentage of microprocessor revenue Computer makers who used Intel Inside could get part of their advertising paid for by Intel and Intel was in turn getting more advertising and making more sales creating a full positive feedback loop They followed up on their marketing campaign by setting a higher bar for the microprocessors that would be included in the computer giving the consumer better value and helping drive their prices down over time due to the volume of output There might have never been such a significant decrease in microprocessor price while increasing the value if this approach was not taken They were able to cozy up to their consumer by removing the scary barriers of computer lingo As the personal computer grew most people were ignorant of what powered their machine Intel explained their functionality and advantage in layman terms to their consumer which brought the consumer closer to the brand Once the user was in the store buying the computer they knew that if they wanted a faster more streamlined experience then Intel was the solution This awareness factor was both a plus for Intel as well as the consumer who was no longer lost in the store when choosing between different models they could make an educated choice based on specifications they understood Their branding efforts were solidified in the consumers mind with their print advertising and TV ad campaigns Intel invested a lot of money to create an ad that showed the speed of the microprocessor to millions of viewers of the Super Bowl Each ad was finished with the distinctive jingle of the Intel Inside brand This solidified positive association of the Intel brand among consumers raising purchases of computers using Intel Using a variety of marketing methods and all of the 3 of the 4 Ps of marketing not including price Intel was able to become a dominant force in the market It was essential for them to pursue this type of aggressive campaign because as a commodity they would always just be fighting for the computer manufacturer39s attention on price and speed This type of branding allowed tehm to offer the best solution for a reasonable price that computer manufacturers and customers were happy about Sources httpwwwintelcompressroomintel insidehtm httpwwwintangiblebusinesscomBrandServicesMarketing services News Ingredient branding case study Intel466html httpwwwmodern8comdelivering the art of brand design from the science of brand strategy
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