Description
This presentation describes evolution, branding strategy, success factors and vulnerabilities of Intel.
Breakthrough Marketing
A Case Presentation
SJMSOM, IIT Bombay
Outline of the presentation
Intel Corporation
Early challenges to Intel
Branding Strategy
Brand Makeover
Present Vulnerabilities
SJMSOM, IIT Bombay
Slide 2
Intel Corporation
History of Intel
? Intel was founded on July 18, 1968, as Integrated Electronics Corporation by semiconductor pioneers Robert Noyce and Gordon Moore. ? An American global technology company and the world's largest semiconductor chip maker ? Headquartered at Santa Clara, California, USA ? Inventor of the x86 series of microprocessors, the processors found in most personal computers.
Intel as we know it today
? ? ? ?
Market leader in microprocessor industry with above 80% share Intel ranked 7th on the Interbrand’s annual 100 Best Global Brand list. A brand value of $32 billion The world leader in silicon innovation, develops technologies, products, and initiatives to continually advance how people work and live
SJMSOM, IIT Bombay
Slide 3
What does brand “Intel” stands for
Vision
Intel constantly pushes the boundaries of innovation in order to make people's lives more exciting, more fulfilling, and easier to manage.
Mission
Cutting edge technologies and Constant innovation Combine advanced chip design capability with a leading-edge manufacturing capability
Slide 4
SJMSOM, IIT Bombay
Threats and opportunities for Intel
Did not pose any threats for Intel’s technical superiority and strong presence in the market
Consumers Suppliers
OEM, Compaq
New Entrants
Porter’s Five
Substitutes Competititors
Motorola AMD RISC, Motorola,
IBM
Intel faced challenges in communicating its technical superiority to consumers and threat of competitors and substitutes increased
Sun, Silicon Graphics
Complimentors
Microsoft
SJMSOM, IIT Bombay
Slide 5
Major Challenges for Intel
Competitors
• Chip-makers came out with clones of 486 chips. • Rival microprocessor designs, like the Power PC, a joint venture of IBM, Apple and Motorola. • Rise of competitors like AMD reduced the market share of INTEL • Companies like Microsoft advocated RISC (reduced instruction set computing) architecture whereas INTEL backed CISC architecture.
Substitutes and Complementors
• Internet had given rise to the threat of substitutes –Network Computing • Microsoft and Intel formed a Wintel alliance to develop software that supports its products, yet the software production was often lagged. • Intel waited 10 years after introducing a 32-bit processor before Microsoft finally introduced a 32-bit operating system (Windows 95).
Consumers
• Competitors adopted the same naming convention, and Intel's product names – making the product indistinctive, creating confusion among consumers • Intel's products were hidden from consumers, buried deep inside PCs. • Intel had to depend on large OEMs such as Compaq and IBM to adopt their microprocessors, so that manufacturing can be stepped up as soon as possible and the cost can be dropped.
SJMSOM, IIT Bombay
Slide 6
Challenge for the Marketers
What is the first thing that comes to your mind when you here Intel?
Intel was the technology leader and it needed to be communicated to consumers
Issue of relevance to common people.
Understanding the significance of a microprocessor
Intel stands away from the magical experience of computing.
People don't think about processor’s brand much while buying a computing system
SJMSOM, IIT Bombay
Slide 7
Branding Strategies
A new Tag line
•Transferred the products from mere numbers to the company itself •Associating Intel with safety, leading technology and reliability. •Gain consumer confidence in the Intel Brand To create a “Pull” for Intel Based PCs •The campaign was a success since it led to increase in the demand for Intel based PCs
Ingredient Branding
•Created brand awareness to end users. •Manufacturers agreed to feature Intel on their products through PC Print ads and Intel pays 6% of avg selling price to them •By the year end, 300 PC OEMs had signed on to support the program •Intel has continued with ingredient branding till date
Co-op Marketing
In 1994, Intel collaborated with Compaq -- the biggest PC maker at that time and paid 50% of the ad cost featuring 3 sec of Intel jingle OEMs displayed the Intel logo along with their ad in print media for 50% cost The expensive gamble paid off as Intel inside became a household name
The image of being technologically superior was imprinted on the brain of the consumer successfully by Intel’s marketing campaigns
SJMSOM, IIT Bombay Slide 8
Intel over the years
Intel’s branding strategy has evolved over the years and has made trademarks like “Inside” and “CORE”
SJMSOM, IIT Bombay Slide 9
SJMSOM, IIT Bombay
Brand Makeover
• 25th Sept 2003: Intel Unwired Day: Free Public WiFi Internet for One Day.
http://forums.anandtech.com/showthread.php?t=1158528
SJMSOM, IIT Bombay
Slide 11
Brand Makeover
• 2006: Introduced a New Logo and New Slogan – Leap Ahead • $2 billion Global Marketing Campaign • Developed a new microprocessor platform “ViiV” aimed at home entertainment.
SJMSOM, IIT Bombay
Slide 12
Brand Makeover
Result of Marketing Campaigns • Created the impression of Intel as a "warm and fuzzy consumer company” • $32 billion brand Valuation
– (5th Place in 2006 InterbrandlBusinessWeek ranking of the Best Global Brands.)
SJMSOM, IIT Bombay Slide 13
Present Vulnerabilities
• Intel does not grants free distribution rights for the firmware that must be included in the operating system for the wireless devices to operate . As a result of this, Intel became a target of campaigns by the open source community. • Some of the firmware must be provided with the free distribution license. Intel also needs to put more promote the LessWatts.org campaigns.
Open Source
• Intel with its current “Sponsors of Tomorrow” ad campaign has designed its ads to set them apart from the common people. They want to show that Intel and their employees are different, which creates a disconnect.
Advertisements
• Since the Intel microprocessors today are being used by the common masses and Intel is the main source of processors, the ads should be able to connect with the people and carry them along rather than setting themselves apart.
• The EU found that Intel had engaged in anti-competitive practices and subsequently fined Intel $1.06 billion. Intel was found to have paid companies to exclusively use Intel chips in their products, and therefore harmed other companies.
Legal Issues
• Federal trade commission(FTC) alleges that Intel has waged a systematic campaign to shut out rivals’ competing microchips by cutting off their access to the marketplace. • AMD subsequently launched a website promoting these allegations.
SJMSOM, IIT Bombay
Slide 14
Wintel Axis
•Split in the Wintel axis -: Microsoft’s support for ARM and the expansion beyond x86 is a critical move that will cut into Intel’s business sooner or later – if Windows on ARM will be successful.
Acquisitions
•Intel's acquisition of McAfee-: Between 1999-2003, Intel spent over $11 billion buying about 40 companies, and the vast majority of these acquisitions failed. In fact, of the 15 largest acquisitions in its history, Intel has shut down or sold off the acquired products in every single case
•The slowing growth of the PC chips and the emergence of graphic chip technology. •Nvidia's decision to build central processors and emergence of Chinese chip makers. •The challenge for the future of Intel is that the relevance of the PC is waning in an increasingly mobile world. Intel may be dominant in PC architecture, but in the world of netbooks, smartphones, and tablet PCs, Intel is an underdog and faces stiff competition from rival platforms
Competition
SJMSOM, IIT Bombay
Slide 15
References
• http://en.wikipedia.org/wiki/Intel_Corporation • http://www.intel.com/pressroom/intel_inside.htm
• http://www.brandingasia.com/cases/case2.htm
• http://www.intangiblebusiness.com/BrandServices/Marketing-services/News/Ingredient-branding-casestudy-Intel~466.html
SJMSOM, IIT Bombay
Thank You
SJMSOM, IIT Bombay
doc_541525839.pptx
This presentation describes evolution, branding strategy, success factors and vulnerabilities of Intel.
Breakthrough Marketing
A Case Presentation
SJMSOM, IIT Bombay
Outline of the presentation
Intel Corporation
Early challenges to Intel
Branding Strategy
Brand Makeover
Present Vulnerabilities
SJMSOM, IIT Bombay
Slide 2
Intel Corporation
History of Intel
? Intel was founded on July 18, 1968, as Integrated Electronics Corporation by semiconductor pioneers Robert Noyce and Gordon Moore. ? An American global technology company and the world's largest semiconductor chip maker ? Headquartered at Santa Clara, California, USA ? Inventor of the x86 series of microprocessors, the processors found in most personal computers.
Intel as we know it today
? ? ? ?
Market leader in microprocessor industry with above 80% share Intel ranked 7th on the Interbrand’s annual 100 Best Global Brand list. A brand value of $32 billion The world leader in silicon innovation, develops technologies, products, and initiatives to continually advance how people work and live
SJMSOM, IIT Bombay
Slide 3
What does brand “Intel” stands for
Vision
Intel constantly pushes the boundaries of innovation in order to make people's lives more exciting, more fulfilling, and easier to manage.
Mission
Cutting edge technologies and Constant innovation Combine advanced chip design capability with a leading-edge manufacturing capability
Slide 4
SJMSOM, IIT Bombay
Threats and opportunities for Intel
Did not pose any threats for Intel’s technical superiority and strong presence in the market
Consumers Suppliers
OEM, Compaq
New Entrants
Porter’s Five
Substitutes Competititors
Motorola AMD RISC, Motorola,
IBM
Intel faced challenges in communicating its technical superiority to consumers and threat of competitors and substitutes increased
Sun, Silicon Graphics
Complimentors
Microsoft
SJMSOM, IIT Bombay
Slide 5
Major Challenges for Intel
Competitors
• Chip-makers came out with clones of 486 chips. • Rival microprocessor designs, like the Power PC, a joint venture of IBM, Apple and Motorola. • Rise of competitors like AMD reduced the market share of INTEL • Companies like Microsoft advocated RISC (reduced instruction set computing) architecture whereas INTEL backed CISC architecture.
Substitutes and Complementors
• Internet had given rise to the threat of substitutes –Network Computing • Microsoft and Intel formed a Wintel alliance to develop software that supports its products, yet the software production was often lagged. • Intel waited 10 years after introducing a 32-bit processor before Microsoft finally introduced a 32-bit operating system (Windows 95).
Consumers
• Competitors adopted the same naming convention, and Intel's product names – making the product indistinctive, creating confusion among consumers • Intel's products were hidden from consumers, buried deep inside PCs. • Intel had to depend on large OEMs such as Compaq and IBM to adopt their microprocessors, so that manufacturing can be stepped up as soon as possible and the cost can be dropped.
SJMSOM, IIT Bombay
Slide 6
Challenge for the Marketers
What is the first thing that comes to your mind when you here Intel?
Intel was the technology leader and it needed to be communicated to consumers
Issue of relevance to common people.
Understanding the significance of a microprocessor
Intel stands away from the magical experience of computing.
People don't think about processor’s brand much while buying a computing system
SJMSOM, IIT Bombay
Slide 7
Branding Strategies
A new Tag line
•Transferred the products from mere numbers to the company itself •Associating Intel with safety, leading technology and reliability. •Gain consumer confidence in the Intel Brand To create a “Pull” for Intel Based PCs •The campaign was a success since it led to increase in the demand for Intel based PCs
Ingredient Branding
•Created brand awareness to end users. •Manufacturers agreed to feature Intel on their products through PC Print ads and Intel pays 6% of avg selling price to them •By the year end, 300 PC OEMs had signed on to support the program •Intel has continued with ingredient branding till date
Co-op Marketing
In 1994, Intel collaborated with Compaq -- the biggest PC maker at that time and paid 50% of the ad cost featuring 3 sec of Intel jingle OEMs displayed the Intel logo along with their ad in print media for 50% cost The expensive gamble paid off as Intel inside became a household name
The image of being technologically superior was imprinted on the brain of the consumer successfully by Intel’s marketing campaigns
SJMSOM, IIT Bombay Slide 8
Intel over the years
Intel’s branding strategy has evolved over the years and has made trademarks like “Inside” and “CORE”
SJMSOM, IIT Bombay Slide 9
SJMSOM, IIT Bombay
Brand Makeover
• 25th Sept 2003: Intel Unwired Day: Free Public WiFi Internet for One Day.
http://forums.anandtech.com/showthread.php?t=1158528
SJMSOM, IIT Bombay
Slide 11
Brand Makeover
• 2006: Introduced a New Logo and New Slogan – Leap Ahead • $2 billion Global Marketing Campaign • Developed a new microprocessor platform “ViiV” aimed at home entertainment.
SJMSOM, IIT Bombay
Slide 12
Brand Makeover
Result of Marketing Campaigns • Created the impression of Intel as a "warm and fuzzy consumer company” • $32 billion brand Valuation
– (5th Place in 2006 InterbrandlBusinessWeek ranking of the Best Global Brands.)
SJMSOM, IIT Bombay Slide 13
Present Vulnerabilities
• Intel does not grants free distribution rights for the firmware that must be included in the operating system for the wireless devices to operate . As a result of this, Intel became a target of campaigns by the open source community. • Some of the firmware must be provided with the free distribution license. Intel also needs to put more promote the LessWatts.org campaigns.
Open Source
• Intel with its current “Sponsors of Tomorrow” ad campaign has designed its ads to set them apart from the common people. They want to show that Intel and their employees are different, which creates a disconnect.
Advertisements
• Since the Intel microprocessors today are being used by the common masses and Intel is the main source of processors, the ads should be able to connect with the people and carry them along rather than setting themselves apart.
• The EU found that Intel had engaged in anti-competitive practices and subsequently fined Intel $1.06 billion. Intel was found to have paid companies to exclusively use Intel chips in their products, and therefore harmed other companies.
Legal Issues
• Federal trade commission(FTC) alleges that Intel has waged a systematic campaign to shut out rivals’ competing microchips by cutting off their access to the marketplace. • AMD subsequently launched a website promoting these allegations.
SJMSOM, IIT Bombay
Slide 14
Wintel Axis
•Split in the Wintel axis -: Microsoft’s support for ARM and the expansion beyond x86 is a critical move that will cut into Intel’s business sooner or later – if Windows on ARM will be successful.
Acquisitions
•Intel's acquisition of McAfee-: Between 1999-2003, Intel spent over $11 billion buying about 40 companies, and the vast majority of these acquisitions failed. In fact, of the 15 largest acquisitions in its history, Intel has shut down or sold off the acquired products in every single case
•The slowing growth of the PC chips and the emergence of graphic chip technology. •Nvidia's decision to build central processors and emergence of Chinese chip makers. •The challenge for the future of Intel is that the relevance of the PC is waning in an increasingly mobile world. Intel may be dominant in PC architecture, but in the world of netbooks, smartphones, and tablet PCs, Intel is an underdog and faces stiff competition from rival platforms
Competition
SJMSOM, IIT Bombay
Slide 15
References
• http://en.wikipedia.org/wiki/Intel_Corporation • http://www.intel.com/pressroom/intel_inside.htm
• http://www.brandingasia.com/cases/case2.htm
• http://www.intangiblebusiness.com/BrandServices/Marketing-services/News/Ingredient-branding-casestudy-Intel~466.html
SJMSOM, IIT Bombay
Thank You
SJMSOM, IIT Bombay
doc_541525839.pptx