, 2016

GROUP NO.: 42
Debpratim Sarkar | SnehaKundapur | Naveen Chander Dhar | SaswatiNayak

B2B MARKETING
Inside Intel Inside

Problem Statement
In what ways can Pamela Pollace, vice president and director of Intels
worldwide marketing operations extend the Intel Inside branding campaign to
non-PC product categories such as cell phones and PDAs

Introduction
Intel Corporation is the biggest semiconductor manufacturer in the world and
has changed theglobal marketplace radically since it was founded in 1968.
The first handheld calculators and PCs (PersonalComputers) were developed
through theinnovation of Intelsmicroprocessors. In the early 70s
increasedcompetition from Japanese semiconductor manufacturers had
dramatically reduced the profitability of thismarket this made Intel to shift
the company's focus to microprocessors.
From the late 80s until the late 90s Intel had a 10-year period of
unprecedented growth as the primaryhardware supplier to the PC industry,
supplying microprocessor to IBM.Intels productLineof Pentium processors
had become a household name.Today at least 80% of Intels processors are
used inPCs globally. Their product line consists of: chipsets, motherboards
and flash memory.
In June 1994, Intel was confronted with its first major product related crisis
where an end user discovered a minor flaw in the new Pentium processor.
This resulted in a$475 million loss in Intel's revenue. Ironically the media
coverage regarding this flaw gave Intel publicawareness and for the first time
consumers realized the importance of microprocessors. Intel changedsome
of its business practices to be more end-user focused.
Intel needed to regain the lost marketplace, with the launch of its new
product development modelthe Core micro-architecture Intel regained the
market lead. This new processor was considered to be anexceptional leap in
processor performance.
Intel has become one of the world's most recognizable computer brands
following its long-runningIntel Insidecampaign. The campaign, which started
in 1991, was created by Intel marketingmanager Dennis Carter. TheIntel
Insideadvertising campaign sought public brand loyalty and awareness
of Intel processors in consumer computers
Intel's decision to market its product as a branded component was genius - it
was ground breaking in its industry of microprocessors at the time, and was
instrumental in creating equity as an input brand.

'Intel Inside' became the first trademark in the electrical component industry.
They effectively taught consumers to understand computers as an assurance
of quality through their name. Intel's main success factors included an
established reputation in the technology field, a willingness to collaborate
with partners, and an aggressive marketing budget even despite economic
turns.

Issues

The main issue with Intel was the competition coming from other microprocessor
manufacturers who were targeting low end customers. Intel had not tapped into this
market.
Cloning was another major issue because if which Intel was not able to differentiate
its product from its competitors. They were providing cloned product of Intel with a
lesser price. They were known in the market because of the cloned product not
because of their own brand.
Technical specification of the microprocessors were not conveyed properly. So there
was lot of confusion regarding its performance.
Intel was always associated with computers. So it was not very sure that consumers
will psychologically accept the extension of the brand to new product categories like
mobile phone and PDAS.
Intel previously tried putting the Intel brand in other devices in the past, but it had
retreated from those kinds of efforts when it became apparent that Intel may find it
difficult to make returns in these markets.
Mobile is a lesser price product compared to PC. So it is not sure whether consumers
will be bothered about the silicon in it. Marketing efforts may not be very fruitful
unless Intel can proof consumers why exactly their Silicon is better and why
consumer should buy their product rather than their competitors.

Recommendations

Extending the campaign Intel Inside brand to other product categories may be
difficult if the other products do not remain in line with what is expected of Intel.
Psychologically, consumers only consider Intel processors as high performing
computing devices. So to extend this branding campaign to new product categories,
Pollace needs to discuss with the technical teams in Intel to make sure that the new
products can be marketed in a similar fashion.
Intel should not be too worried about previous failures while making these decisions.
Previously when Intel tried a new marketing strategy with the Intel Outside

marketing scheme, the technology behind it was not developed enough to provide
similar promise of being a high performing computing device. Now Intel is having a
product that can fulfil this requirement and it is the right time to capitalize on the
brand recognition as other product categories start to mirror the computing
requirements of PCs. But to achieve this, Pollace needs to work closely with the
technical team of Intel to make sure the upcoming products are upto the mark and
can actually deliver.
As long as Intel is having a competitive product that actually is better than the
products available in the market, the Intel brand itself will create demand among
people with devices that has Intel processors in them due to Intels success in the PC
market.
At this time the production and sales of computer are becoming stagnat as the use of
cell phone is gradually increasing. So if Intel is able to capitalize on this it will create a
great opportunity for Intel.