intel corporation (1)

8/8/2019 Intel Corporation (1)

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Presented by-

Alka Agrawal

Anand Garg

Ipsita Ojha

Missy MimansaNeha Yadav

Preeti Sinha

Subrajyoti Priyavrata


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Founded by Robert Noyce and Gordon Moore in 1968.

LSIDRAM and EPROM were initial two successfulproducts.

Went public in 1971- companys first profitable year.

Introduced first general purpose micro processor in 1974.

8bit- 8080.

16 bit- 8086 in 19788 bit bus version of 8086 in 1978.

Faced tough competition- Motorola 6800 processor.

In response Intel launched campaign for 8086/8088 .


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y 16 bit 80286 mp- first to feature multitasking and on chipsecurity.

y By 1988 the installed base of 286 based PCs was 15 millionworldwide.

y 1985-86- Recession- abandoned DRAM business.

y 32 bit mp- Intel386DX- top operating speed of 5 MIPS. Volumeshipment began in mid 1986.

y Intel486 mp- 1989, 32 bit held 1.2 mln transistors on a singlechip n integrated math processor.

y 1990- $3.9 bln company.

y Intel processors were found in 80% of IBM machines


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Microprocessor Industry in 1991y INTEL-Since 1986, only supplier of 386technology since 1990

only supplier of 486 technology.

y AMD- announced launch of AM386, its own version of Intelsi386SX.

y Two small semiconductor firms were to launch 386- compatibleproducts within an year.

yCyrix developing its own 386/486 hybrid.

y In 1991 Compaq, Microsoft and MIPS computers

led the creation of ace alliance intended to develop and use OSthat runs on Intels processor and MIPSs RISC chip.


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Branding Issues confronting Intel

y Intel- market and technology leader.

y First to introduce new generation of products and toestablish new technology in consumers mind

y PROBLEM-How to differentiate its products from itscompetitors.

Competitors have used Intels numerical sequencing toname their products since launch of 286, which Intellicensed to several vendors but 386 technology wasnt.

What 1 competitor called a 386 chip may or may not havethe same product characteristic as Intels mp


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Initial branding efforts

y In 1980s Intel moved from push strategy to pull strategyand advertising strategy was re-directed from computermanufacturers to buyers

y

Until this time consumers choice of a PC was based on thebrand image of the manufacturery Intel hoped to create brand awareness of INTEL and brand

preference of its mps inside the PC.y In 1989 campaign promoted Intels microprocessor through

their numbers- the 286 and 386.yWithin months, buyers began asking for PCs with the

Intel386SX chip, promoting its expansion.y In 1990, campaign broadened to promote 486 mp as well as

Intel name. Intel wanted to make sure that consumers knew

to buy Intel technology.


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Evolution of Intel inside Branding

Strategy

y In March 1991, Intel lost 386 trademark case.

y Urgency was felt to come up with new strategy.

y Three elements of the strategy-1. The use of logo based around the words Intel Inside to

represent Intel processors used in PC.

2. Use of MDF funds to share PC OEM advertising expense.

3. Advertising program to build equity in new brand(transferringthe equity of 386 and 486 mps to Intel)

y Companys name was put directly in front of consumer, Intel

wanted to brand the whole company.


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Choosing a logo

y The company wanted to make the consumer believe that whatwas inside the computer was as important as the companywhich assembled it.

y In order to keep continuity with The computer inside taglinewhich was used everywhere in the world, the phrase waschanged to intel inside, which clearly conveyed to consumer

that it was an Intel microprocessor in the computer.y The new logo- a swirl with Intel Inside- placed the company

and its name directly in front of the consumer.


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Communications Strategy

y Ne ra i trate y etti s rt f t e s

y ers al c ter a fact rers ere t e sti rta t r f s

y e tea la e pus strate y t create a pullrefere ce a c s ers f r I tel r cts


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Enlisti

ng S rt Of O

EMs

y Intel developed a cooperative advertising programavailable to all computer manufacturers

y Offered rebates

y Impact of negotiation

y Print was the main medium of communication

y

Fear of brand equity dilution


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Intel Inside Programy Launch of Intel Inside program in November 1991

y Intel offered to rebate 30-50 % of the cost of any print

ads that included the Intel Inside logoy Intel Inside logo was designed to create confidence in

the consumers mind

y Main focus on safety and technology

y David House - Intel hopes to encourage users to skipthe i386TM and go right to computers using i486TMchips.


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OEMs And The Intel Inside Program

y IBM was the first major OEM to use the Intel Insidelogo

y IBM offered to use the new logo in draft form

y Over 300 OEMs had signed cooperative advertisingagreements with Intel by December 1991

y 100 of these companies featured the Intel logo in theirads


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Intels Ad Campaign

y The first ad using the Intel Inside logo was a print adthat ran in July 1991

y Primary objective of this ad was to get the new Intel

Inside logo in front of consumersy In November 1991,Intel launched its first TV ad

,Room For The Future

y The ad developed by Intels ad agency, Dahlin Smith

White, used special effects designed by Lucas ArtsIndustrial Light and Magic Co.

y Intel ran a print version of the Intel486 SX commercial


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Continued..

y Viewers remembered the Intel name, rather than theproduct, the Intel486 SX chip

y

In March 1992,Intel introduced its second television ady A second version of this ad was introduced in August 1992

y Mixed opinions of Intels marketing group

y Complementing the TV campaign was a print campaign

launched after the initial airing of the TV ady The Library ad promoted the compatibility of Intel

equipped personal computers with leading softwarepackages


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Intel Inside program In 1992y By December 1992,over 700 customers participated in

2nd and 3rd tier OEMs

y The first tier OEMs remained reluctant to use thelogo

y Intel announced plans to introduce more than 25versions of the Intel486TM microprocessor

y The slogan The Computer Inside was substitutedwith the Intel company logo at the bottom right cornerof each ad


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Branding P5

y 5th generation chip had to be launched, which wasinitially named P5

yBut Cyrix, a competitor, came up with a mp named as486SLC in 1992.

y Gave the customers a feeling that it was superior toIntels i386 processor, though it was not. So Intels

share prices droppedy So a new name was now required which was difficult to

copy


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N

aming P5y Karen Alter was appointed for the new name choice

y Criteria for choice was :

y

difficult to copyy trademark able

y Indicate new generation of technology

y Had positive associations and worked globally

y Support Intels brand equityy Sound like an ingredient

y Target customers for naming end users; not OEMsbecause they were concerned with name


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Name Selectiony Extensive research was undertaken:

y Inputs gathered from 1200 employees, public, tradepublications etc.

y Three concept categories created:y 1. closely linked to Intely 2. technologically cool

y 3. Completely new with some generational conceptembedded

y 10 names were chosen for eachy Then task force selected finally one name from each to

present to top management

y In top management meeting, reasons for the choices of

each name were discussed


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Launching The Pentium Processory Name was announced finally on Oct 20, 1992 in a CNN

interview

y Reason given for selecting Pentium :

y Pent means five which shows the fifth generation ofIntel processors

y Ium shows it is an ingredient

y Conveyed positive attributes like quality, technology etc.

y So applied both to end users and OEMs


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Huge Promotional Campaigny Attention was paid that no where was 586 or any other

name used

y No product detailed were provided now, as acceptance of

name was to be made firsty All main customers were informed before hand

y PR called all industry writers and informed them about thenew name

y

20,000 documents were converted like trademarksdocuments, all internal communications, email, productmaterial etc.

y Continuous interviews were being given


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Guidelines To Keep The Name

Protectable

y Not to use as a trademark or plural

y Pentiumize, is wrong

y Usage in OEM is not permitted

y The CMC Pentium 5, is wrong

y OEMs may include reference

y The CMC contains Intel Pentium processor, is right


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The age of pentium processor

productsy March 22, 1993 intel announced that the company

begun shipping versions of the pentium chip.

y Pentium processor ran typical software programs more

than twice as fast as the intel486 microprocessor..y The chip contain over 3mn transistor, compared with

the 486d 1.2 mn .

y The chip initially expected to be used by PC and

workstation manufacturers to expand their servers andworkstation lines.

y May 10, 1993, intel introduced its first ad for pentiumprocessor.


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Continued..

y The ad ,describing some detail how the pentium

processor made PC run faster.y Intel was using advertisement to create hype among

the consumer for its new pentium chip and to stayahead of clones of its old products.


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Era of success

y In three years intel had invested over $500mn inadvertising and promotional designed to build the intel

brand equity.y The intel inside campaign had constitute the bulk of this

investment.

y The two main pillars of intel brand are:

1. intels guarantee of safety

2. providing most advance technologyy The success story of intel inside program clear with its

brand image.

y This campaign got many awards.


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Continued..

y Now intel is the biggest brand in the computerprocessor market.

y Intel inside is not only a campaign for the company,

whole branding strategy id moving around thecampaign.

y In the 1993 intel rated as the third most valuablebrand.

y

Now customer want to see intel inside logo in personalcomputer.

y Now end user world wide viewed intel as thetechnology leader.


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What next???

y Need a new technology to continuously lead themarket.

y March 1994, introduction of new powerPC chip byMotorola, apple and IBM add new complexity to planfor new branding strategy.

y Intel every year launch a new chip in the category.

y Latest processor launched by intel is huge success arei3, i5 and i7


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Our insights

y The team planned push strategy to create a pullpreference among consumers for Intel products

y

Consumer always attract towards informativeadvertisement.

y Creating awareness among consumer is not easy.

y Consumer need modified products regularly,

switching cost of customer now a days is not so high.


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intel corporation (1)

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