Discuss how Intel changed ingredient-marketing history. What did it do so well in those initial marketing campaigns? Intel Corporation is an American multinational chip maker. Intel is one of the worlds largest and highest valued semiconductor chip makers, based on revenue. ] It is the inventor of the ex. Series of microprocessors, the processors found in most personal computers.
Intel developed the chips which set the standard for personal computing during the asses, beginning with the 8086 chip and then developing a series of product improvements. Competitors adopted the same naming convention, and Intel’s product name could not be protected. Thus Intel has to take action to become distinctive to consumer. Intel began transition from a microprocessor producer to a branded product company. They lunched the “Intel Inside” campaign as an ingredient branding marketing campaign.
Intel has encouraged almost 200 Other Equipment Manufacturer partners with the objective f creating a consumer brand to make sense of the rapidly changing product cycle. In 1991, Intel launched the successful co-pop program in which they convinced manufacturers to place the “Intel inside” logo unit in their advertising and other marketing material. The name “Intel Inside” became the first trademark in the electrical component industry. This campaign focused the entire organization around the brand and created a highly effective advertising campaign. The name “Intel Inside” became the first trademark in the electrical component industry.
This campaign focused the entire organization around the brand and created a highly effective advertising campaign. The Intel Inside campaign aimed to “educate both the BMW marketing excellence By fatalistically and to explain to them the differences between the microprocessors” – without the technical Jargon. Many consumers were uncertain about the quality and reliability of microprocessors, and Intel found a way of taking away the mystery of the product, gaining the confidence of the end consumer that “Intel Inside” represented quality and reliability. At first this met with skepticism, outside the company and within it.
But that didn’t deter Intel. As well as advertising for itself, it had the bright idea of contributing directly to PC makers’ campaigns-as long as they promoted Intel at the same time. The advertising results were stunning. For example, late in 1991, Intel research indicated that only 24 percent of European PC buyers were familiar with the Intel Inside@ logos. One year later that figure had grown to nearly 80 percent, and by 1995 it had soared to 94 percent and continues at these high levels today. Ten years into the campaign, products that don’t boast the presence of Intel inside are bound to arouse suspicion among consumers.
People will wonder, “Why don’t they use Intel chips? Are they using something cheaper, or not as good? ” Computer manufacturers began co-branding their computers with Intel, the logo gained wider recognition, and consumers perceived it as a benefit in performance. One of the most important benefits of this marketing strategy is creating a quality standard. Since Intel taught it’s consumers to “look for the Intel Inside logo” as an assurance of quality. Intel has been linked to premium brands like IBM and Compact -they have created the lasting impression that Intel makes something worth paying more for.
Intel issued a platform that included a new microprocessor, an extended battery, and wireless capabilities. The company launched a multimillion-dollar media effort around the new platform called “Unwired”, which urged the wired world to Unwire. As the PC industry slowed in the mid-asses, Intel sought opportunities in new growth areas such as home entertainment and mobile devices. Intel’s thought about assessing growth opportunities and noticed consumers’ need change. So they started lunching new products and services to meet that development and change.
In 2007, Intel created he Classmate PC – a small, kid-friendly, durable, and affordable Intel processor- based computer intended for children in remote regions of the world. It was part of an initiative called Intel Learning Series. After a year, Intel Launched the Atom processor, the company’s smallest processor to date, designed as the Classmate PC. Key results of using Ingredient branding Strategy: Sales increased. Awareness of the Intel Logo increased. Its was 24% at 1991. At 1995 after “Intel Inside” campaign. It was 94%. It helped moving the Intel brand outside the Pc and into the minds of customers.
Build strategic alliance with stakeholders and gave hem returns to support Intel’s marketing strategies. Advertising their products by “Bunny People” and “Blue Man Group” in its commercials. Developed new produced to new target markets and relate them to important issues ( Intel Learning Series). In 2001 Intel was listed as the sixth most valuable brand in the world, with published brand value estimated of 35$ billion. Dropping the “Intel Inside” tagging or not? They did not lose anything by dropping the “Intel Inside” tagging, in the contrary they won. Changing the slogan can mean changing the company strategy direction.
The old slogan was deeply in customer’s mind. No matter the slogan changed, people still like Intel and trust its quality. It’s the good image has been deeply rooted in people. Competition between AMID and INTEL: AMID is the first competitor of Intel in the world of manufacturing microprocessors AMID slogan: “THE FUTURE IS FUSION” 1. History of AMID co: Advanced Micro Devices, Inc. Is an American multinational semiconductor company based in Sunnyvale, California, United States, that develops computer processors and related technologies for business and consumer markets.
While initially it manufactured its own processors, the company became fables after Global Foundries was spun off in 2009. Mad’s main products include microprocessors, motherboard chippies, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications. AMID is the second-largest global supplier of microprocessors based on the ex. Architecture and also one of the largest suppliers of graphics processing units. It also owns 8. % of Expansion, a supplier of non-volatile flash memory. AMID is the only significant rival to Intel in the central processor (CPA’) market for (ex. Based) personal computers 2. AMID, INTEL and the Market Strategies In the personal computer central processing unit (PC CPU) market, two firms – of the market, with INTEL capturing more than 75% of the market. Over the years many firms have tried to enter the market but AMID is the only that has become an important competitor to Intel.
During the asses, AMID used a lower pricing strategy than Intel, and also created and introduced several new products that performed in a similar or better manner than those manufactured by Intel. Nevertheless, AMID products -even those similar in quality to Intel products- have not been successful in capturing a significantly higher market share. Several arguments have been put forth to explain the inability of AMID to increase its market shares. Perhaps, the most important is that Intel has created a strong brand reputation among consumers.
The Intel Inside advertising campaign is one of the most important advertising efforts in the PC industry; it represented the first time than a PC component manufacturer directed advertising at final consumers. As a result of its advertising efforts, Intel has ranked fifth among the most important global brands since 2001 , with an estimated brand value of over $30 billion in 2007. In contrast, AMID does not place importance n brand positioning and advertising; rather, it concentrates its marketing strategy in low-prices, which has been shown to have a negative effect on brand reputation.
After controlling for price, quality and other unobservable product characteristics of the products, It’s found that both the Intel brand and the advertising expenditures allow to explain consumer behavior and that consumers are willing to pay a high premium for Intel products -between 30% and 50% of Intel average selling price- and that if Intel had not employed strong advertising campaigns, its market shares would be significantly lower. Table 1 shows a summary of the dataset, including yearly quantities, average prices, average performance, and advertising expenditures from 19th 2004.
The data show that Intel sales are more than three times AMID sales, and that Intel captures 83. 49% of the total sales during this period. During most of this period, Intel’s average prices were much higher than Mad’s average prices, except in 2003 and 2004 where AMID prices are insentience by the sales of the more expensive Etalon 64 AMID closed the gap between its products and Intel’s and in some years took the performance leadership with its products. The advertising data show the strong effort that Intel put on building brand reputation.
In each year, Intel’s advertising expenditures are between 4 and 8 times higher than Mad’s advertising expenditures. AMID has already switched its future emphasis from the traditional PC market to gaming consoles, embedded Soc and niche server chips. AMID continues to go head- to-head with Intel in PC Cups but this is large market where AMID still has enough market share to Justify the competition. Intel is cash-rich, and return that cash to shareholders through buybacks and dividends.
AMID is cash-poor, and will likely quire a couple of years of good execution on its new strategy before being able to return cash to shareholders. Of course, in the rapidly changing world of technology, there are perils for the two companies, including competition in some niches and the usual possibility of failing to execute. 3. Mad’s four-three strategy to beat Intel AMID is trying to create a market move and is trying to assure us that Intel won’t brand, eliminate Intel’s technical advantage, and be the MOM vendor of choice. 3. 1.
Devalue the Intel brand Mad’s attack on Intel’s brand has two parts: The first is an aggressive move against he company for past alleged anti-trust activity worldwide. This was initially successful in Japan and most recently spread to the European Union which has released to Intel only a set of charges. These charges are kept secret in an effort to protect Intel; however it is interesting that the “secret” nature actually works against Intel in this regard because, largely thanks to Microsoft’s own EX. Problems, people assume the worst. . 2. Eliminate Intel’s technology advantage AMID is competitive in volume lines but these don’t currently include the lucrative bile segment where Intel’s battery life and system performance have a significant advantage Mad’s acquisition of TAT is an attempt to hit Intel technically where they are weakest and, Intel’s response of trying to catch AMID/TAT is going to be very difficult to execute. If they could complete the merger and have converged products this year, AMID would have a significant advantage over Intel.
Unfortunately it takes time to complete a merger and it takes even longer to integrate the products that are providing the greatest benefits. Of the strategy components, this acquisition is the cost risky, however, it is this part that builds towards market dominance and, without it, there is little chance AMID could move beyond Intel. 3. 3. Become the Memo’s vendor of choice Memo’s, the companies that brand server and PC hardware, prefer vendor relationships where the vendor knows they are a vendor and is clearly subservient to the MOM.
They are frustrated with both Intel and Microsoft, because these two companies often don’t seem to understand they are vendors and that the Memos don’t work for them. AMID, on the other hand, makes a habit of asking what the Memos want and is actually try to deliver on it. This takes the form of more flexible platforms and a wider variety of platforms and, in some cases (HP Blade PC’s) custom work. This focus on customer satisfaction, listening rather than telling, makes it more difficult to drive commonality in the market, but it also develops loyalty with the vendors who, over time, are becoming more comfortable with the firm. . A closer look at Intel and Mad’s strategies for 2014: Targeting new markets 2014 is set to be a year of tremendous change for both Intel and AMID. Both companies are responding to rapidly shifting market dynamics as the computing rake continues its greatest product transition since the PC debuted nearly forty years ago. The two CPU manufacturers are attacking this shift from different directions and with different product strategies – we’ll have a look at both here, starting with Intel first. 4. 1 .
Intel goes for tablets, 2-in-l’s For 2014, Intel is focusing on what it calls 2-in-l’s – systems with both docks and but the way in which these designs are presented to the mass market reflects a fundamental change of thinking. In the past, 2-in-l systems have been tablets first and foremost with overpriced docks that offer minimum functionality, yet cost OHIO- ad for a USB port and a keyboard. This has changed. Modern ex. 2-in-l’s integrate the dock as standard and don’t slap on an enormous price increase for doing so. . 2. Mad’s multi-pronged assault The major difference between Intel and AMID is that Intel is shifting its Atom strategy to fend off ARM in data centers while simultaneously attacking in tablets. AMID is launching (or has Just launched) entire new product families to hopefully seize market share, and it moved toward Increasing Presence In Game Consoles To Diversify Revenue Base. AMID devised a unified gaming strategy that addresses its Lana to drive the gaming market across consoles, cloud platforms, tablets and PC’s.
It believes that it is effectively positioned to drive the next revolution in gaming and now powers all major next generation consoles including Sonny’s Palpitation 4, Nineteen’s WI U and Microsoft’s Oxbow One. AMID believes that gaming is one of the key pillars of its embedded custom chip business. Despite stiff competition from other forms of gaming, game consoles account for 42% of the $65 billion global video game market. 4. 3. Difference between AMID and Intel Key Difference: AMID and Intel are two different companies that are competing with ACH other to capture the semiconductor industry.
The major difference between the two is : price, while Intel offers high prices for its products; AMID offers cheap prices for the masses. Pentium is the brand of processors that belong to Intel, while AMID sells the processors under the AMID name itself AMID Intel Industry Semiconductors Founded May 1, 1969 July 18, 1968 Products Microprocessors, Motherboard chippies, Graphics processors, Random-access memory and TV tuner cards. Bluetooth chippies, flash memory, microprocessors, motherboard chippies and network interface cards. Stands for
Advanced Micro Devices Intel Corporation Company Type Public Headquarters Sunnyvale, California Santa Clara, California Price AMID processors are cheaper compared to Intel processors. Expensive compared to AMID processors. Technology As technology wise, Intel is believed to have superior processors that outperform the AMID processors. Market Share According to Postmarks CPU Benchmarks in the fourth quarter of 2012, AMID held the market share of 27. 5 % for ex. Infrastructures. According to Postmarks CPU Benchmarks in the fourth quarter of 2012, Intel held the market share of 72. 5% for ex. Infrastructures.
