Intel Case Study

INTEL CASE STUDY

Product & Brand Management

Pranav Surana

151

PG-Marketing

1. What were the strengths and weaknesses of the Intel inside campaign?

Strengths

* It placed the company and its name directly in front of the consumer

* The campaign aimed at changing Intel's image from a microchip-maker to a quality standard bearer

* The tie-up with OEM's was a masterstroke since Intel had to just spend 30%-50% of the ad costs and reap the dual benefits of high sales(Rebates were to a cap of 3% of the purchase amounts) and also wide-spread branding

* It very smartly made the OEM's dependent on Intel instead of the other way round. The differentiating factor became Intel and not the OEM's

* The Advertising medium and name was based upon strong research data.

* A perfect mix of push and pull strategy

Weakness

* The success of the campaign heavily depended upon the OEMs agreeing to it majorly the BIG 3 of them. Intel did not have a backup plan for it

* The campaign did not focus as much on the product as on the Brand name. Hence consumers awareness of Intel brand grew but they were still not aware of the Product features and benefits

2. Evaluate Intel's continued use of the Pentium family of processors. Did Intel make the right decision by extending the name through the Pentium 4 processor?

* Intel needed a brand to differentiate itself from the AMD and other processors present in the market.

* Its initial high price maintained that the exclusivity of the product and also reinforced its image of being better than the rest.

* The continued use of Pentium made sense because the Processors belonged to the same generation.

* The more than 30% compounded annual growth reinforces the fact that Intel strategy of continuing with Pentium name.

3. Suppose you were the CMO for AMD. How would you propose the company position itself to better compete with Intel? Would you propose that AMD institute an Inside-Like ad campaign?

* I would not propose an Inside-Like ad campaign. The reasons are:-

o Intel already has a first mover's advantage in tying up with most of the OEMs hence it would be extremely difficult for AMD to lure them to agree to it.

o AMD's revenues makes such a branding exercise unviable.

* I would compete with Intel by focusing on the following issues

o Focusing on remaining ahead of Intel in the Product cycle by investing on R&D

o Narrow the scope of our products to target a particular segment

o Use a customer-centric approach to ensure innovation directly addresses customer needs,

o Show the customers superior value for money with power savings and our commitment to innovation,

o And slowly build