Marketing Case Study: Intel Branding

Case Analysis

This case study is on Intel branding and how a product has been branded. Intel is one of the best hardware manufacturers in the world and the leading company in chipset and microprocessors. They have been market leaders in this industry. There is a quote referring to Software being associated with Microsoft and similarly Intel has been associated with hardware. They refer to Intel as a marketing and technology monster that is seemingly unstoppable. We are briefed about the way Intel took its way into leadership and how it came up with its first print advertisement. The need for a component brand in the late 1970’s helped Intel pave its way into the market. Then, we come upon how the Intel microprocessors have been marketed and

It also launched 386 and 486 at 1985 and 1989 respectively. These chips became successful products. In 1985, Intel entered into an agreement with Microsoft Corporation and formed “Wintel Monopoly” that every computer running with Windows operating system use Intel microprocessor. Intel also licenced the technology of these chips to AMD. AMD began making use of the processor numbers to market its own products at cheaper prices and captured 52% of the market by 1990. So Intel began to intensify its marketing strategy. It transformed the PC from a business management tool to a device that offered information, entertainment and

Also, comment on the coop marketing strategy and the execution of the Intel Inside campaign, What are the merits and demerits of a component branding strategy To communicate with the end users, a new tagline- ‘Intel. The computer inside’ was adopted to highlight that Intel’s products are reliable, sage and technologically advance. Intel started to advertise in the print media around the world. It also released its first TV advertisement in 1992. This featured a trip through the inside of a computer TV thereby enabling customers to buy. The number of people who owned home-PCs increased. It also started to advertise on the web. Intel’s coop advertising program helped to increased the income form $7.31 billion in 1999 to $10.53 billion in 2000. But the company spent $1.5 billion in 2001.

The component branding was taken because the microprocessor is the key component of PC. Intel shared the advertising costs with the OEMs for print advertisements that included the logo. So as a result But Intel created a cooperative fund where 300 PC OEMs had joined Intel for the coop program. But 5% of the purchase price of the microprocessors were put aside for advertising