What was the original motivation behind Intel’s decision to launch the Intel Inside branding campaign? What factors have accounted for the success of the campaign? From a consumer perspective, how does the Intel inside logo affect your PC buying decisions?
Intel was a market leader in PC Microprocessor industry. Due to evolving new technology and intensifying competition, sustaining technological lead was of utmost priority in 1990 for Intel. They had threats from growing powers like AIM (Apple, IBM and Motorola) tie ups in 1991. To counter this competition, Intel doubling up their R&D. There were simultaneous development of products of 2 generations going on. The other competitors could not catch up with …show more content…
But they felt that educating end customer was very important. This was one new initiative in the industry. The branding strategy was known as “Ingredient Branding”. ie branding of a component which is inside another gadget that the end customer will use. They used these logos on OEM’s ads. They had negotiated with press, media etc to get volume discounts. Intel had also shared a part of OEM’s advertisement cost.
Should the company extend the “Intel Inside” branding campaign to other non-PC categories such as cell phones and PDAs? Why or why not? What does Pollace mean when she says, “we need to be thinking about computing, which can encompass any number of different devices’?
Data suggest that the requirements of both mobile and PC market is almost similar. But the size of cellphone market is expected to go up. This made a compelling preposition for Intel to enter the cellphone market.
There is no reason that the launch of “Intel Inside” promotion strategy for mobiles will affect the PC leadership position of the company. Both of them belonged to a very different Product category and market segment. So the only question was to find out whether it will be successful. We cannot assume that the strategy that worked in PC market would work in mobile market as well for the following differences between mobile and PC microprocessor market. 1. Customers in PC industry focused on speed, quality & reliability. Same may not be the case for mobile market. Their