Extend to New Products?
Pamela Pollace, vice president and director of Intel's
worldwide marketing operations, is debating whether the company should extend
its "Intel Inside" branding campaign to non-PC product categories,
such as cell phones and PDAs. The "Intel Inside" campaign has been
one of the most successful branding campaigns in history, but it is too old, and growth in the PC market appears to be
stagnating. However, she is concerned that since Intel does not dominate these other markets like it does the
PC market, it won't be successful.
Initially the motivation behind the branding of Intel Inside
was to establish the company by name and identify the high performance products
that were used inside the computer with the company. This was in an effort to
create an image for a company and to establish its brand presence to the
general public. They already had a well established reputation of a quality brand, but they wanted to raise awareness of their brand and create a positive image.
Key Issues and Solutions
- The major problem faced by Intel was the competition from other microprocessor manufacturers, who were producing chips which took aim at a cheaper computer market which Intel had not yet tapped into.
- Intel was unable to differentiate its products from its competitors due to the number of clone products in the market.
- Consumers were left confused and often guessing as to what was the content and performance of MP.
- Consumers knew Intel's product because of the cloning but Intel wanted them to recognize the product through the brand itself.
Solutions:
- They established a co-op advertising program to start attracting original equipment manufacturers and place their products in mass produced PC’s.
- Fight the competitors with technology, marketing, lawyers, and money power. All focused towards the same goal.
Intel Consultant Point of View
It would be wise for Intel to extend their technology and
services to other products. At this time, the sales and
production of computer were stagnating, as PDA’s and cell phones were on the
rise. The figures in the future would reflect the same trend and it creates a great
opportunity for Intel to use their band equity from the computer market and
translate that into the cell phone and PDA. If Intel were to capitalize on this, they could maintain their presence in the PC market, while extending their reach
to alternate markets and improve their company.
http://www.mbaknol.com/management-case-studies/case-study-intel-inside-campaign-by-intel/
I think you have summarized Intel's key concerns for "Intel Inside" very well. It's understandable for a large company like Intel to have hesitation going into a new field, for there is a lot at stake. I think that you have addressed the problems well, too. With a good record of developing microprocessors for PC, Intel definitely stands a chance competing with other competitors.
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