The case discusses the marketing initiatives undertaken by the global microprocessor industry leader, Intel. The reasons that made it necessary for the company, to brand what was essentially `just another component' in the PC industry are discussed in detail. The case explores the component branding game plan of Intel and mentions the marketing activities undertaken by the company, with special reference to the Intel Inside campaign. The case also discusses the growing criticism against Intel and the intensifying competition in the microprocessor market.
One of the highlights of the campaign was Company Chief Executive Craig Barrett (Barrett) going on stage, accompanying the song with tambourine! It was even reported that "the Bee Gees classic now sounded more like the theme song to Barrett's efforts to restore Intel's glory days." Posters for the campaign depicted a rainbow emerging from the Intel MMX logo, giving it a colorful, shiny look. The catchy and unusual campaign reportedly went on to become one of the most well remembered ones from Intel. For the company, it was yet another step towards becoming the `only' brand one could think of when it came to microprocessors. Intel had to its credit the distinction of single-handedly transforming the microprocessor market over the years.
The company had begun operations in days when people were not very aware of the term microprocessor and its significance for the computers they were buying (Refer Exhibit I for a note on microprocessors). Even those consumers who were somewhat computer-savvy did not know much about them. But by the early 21st century, customers all over the world were able to recite their processor specifications like a nursery rhyme. Thanks to Intel that made the chip inside the Personal Computer (PC) so popular.
Intel had been able to bring about this change, primarily due to its focused R&D and product development efforts. However, its biggest success lay perhaps in its well-etched and executed marketing strategies devised, over the years, to promote Intel as a brand. Through its efforts Intel became synonymous with computer microprocessor chips and the undisputed industry leader. The company had an 80% share of the global microprocessor market—leading not only in terms of sales revenues, but also in terms of innovation. |