Intel - The Component Branding Saga


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
 
Case Studies in Business Marketing

ICMR HOME | Case Studies Collection

Case Details:

Case Code : MKTG038
Case Length : 13 Pages
Period : 1997 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Intel
Industry : OEM
Countries : India

To download Intel - The Component Branding Saga case study (Case Code: MKTG038) click on the button below, and select the case from the list of available cases:



Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Marketing Case Studies
Marketing Management Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Excerpts

The Need for a Component Brand

Since the development of PCs in the late-1970s, the marketing of IT related software and hardware was mainly driven by computer vendors and software publishers. However, Intel relied completely on its computer-vendor customers otherwise known as Original Equipment Manufacturers (OEMs) to convey to end users the benefits of using an Intel processor...

Marketing The Microprocessors

The company developed a component branding strategy that aimed at gaining consumer confidence in Intel as a brand. It decided to run campaigns that would demonstrate the value and benefits of buying a processor from a leading company in the industry. The most innovative aspect of this strategy was the decision to communicate directly with end-users. This was a very novel idea for a 'pure technology' company. Intel's decision was eyed with suspicion by industry observers as no other company in the industry had ever done this before.

It was reported that even many within the company also had the same opinion. Intel however decided to go ahead with its plans, and with the help of an advertising agency, Dahlin Smith and White, designed a campaign for its products. The company adopted a new tagline -'Intel...

What Lies Ahead?

All was not well with Intel as it moved into the 21st century - in 2001 its profits decreased drastically to $ 1.29 billion. Though the company felt that the global IT slump and the US economic slowdown were partly responsible for this decline, the lower average selling prices of microprocessors and a decrease in sales in general were the main culprits. The decline in sales was believed to be caused by the bad publicity caused by antitrust investigations carried out on the company by the European Commission. This investigation was carried out because of several complaints against Intel for using 'abusive marketing practices.'...

Exhibits

Exhibit I: The 'Bunny People' Advertisement
Exhibit II: What's in a Microprocessor
Exhibit III: Intel's Microprocessor Timeline
Exhibit IV: Intel - Net Revenues & R&D Expenditure (1992-2001)
Exhibit V: Intel - Consolidated Statements of Income (1999-2001)
Exhibit VI: Intel's Competitors



Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Text Books, Work Books, Case Study Volumes.