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Intel Corporation designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chippies. The Company sells these platforms primarily to original equipment manufacturers (Memos), original design manufacturers (DMS), and industrial and communications equipment manufacturers in the computing and communications industries. The Company’s platforms are used in a range of applications, such as personal computers (PC’s) (including Latrobe systems), data centers, tablets, marathoner, automobiles, automated factory systems and medical devices.
The journey Intel’s first commercial product was the 3101 Scotty bipolar 64 bit static random access memory (SRAM) chip. In 1971, Intel released 4004, the world’s first microprocessor chip. In 1972, Intel released the 8008 microprocessor which is twice as powerful as the 4004. In 1974, Intel released 8080 microprocessor. This was used in the IBM PC’s. In 1978, Intel released the 8080-8088 microprocessor. The chip went on to become a huge success ; gave a major boost to Intel’s sales & goodwill. In 1982, Intel released the 80286 microprocessor chip. (Also known as the 286).
In 1985, the 386 chip was released and in 1986, the 486 chip was released. These chips were highly successful products. Intel had also licensed the technology of these chips to competitors like MAD to make their own version of the chip. Marketing initiative Since the marketing of PC’s in the late sass’s, the marketing of IT related software & Hardware was mainly driven by computer vendors & software publishers. However Intel relied completely on its Memo’s (Computer Vendors). As a result customers (End users) had very little awareness about Intel ; its products.
Intel inspired by Moor’s law, focused on the marketing of their processors. It started interacting with the IT managers who came to buy PC’s for Business purposes briefed them about the features ; advantages of the existing microprocessors as well as the new releases. Customer awareness about the SEX processor increased and translated into increasing sales. Branding concept During 1990, Intel had to deal with certain legal problems. Arch rival MAD which had been given the license to manufacture chips by Intel, began making use of the latter’s processor numbers to market its own products.
By offering chips at comparatively cheaper price, MAD captured 52% of the market share. Intel had assumed that the 386 & 486 were protected trademarks and that no other company could make use of them. Intel then made attempts to protect the technology of the 386 & the 486 processors. As a result, MAD sued Intel for breach of contract. Intel had lost the case and the courts stated that the processor numbers were not trademarks. This opened the doors for other companies to use them. Intel realized the need for a better marketing program that would protect its rights.
Intel sought to create a strong brand to communicate better with customers, justify the billions of dollars invested in product development & highlight the superior performance & reliability of its products. Intel aimed at gaining customer confidence. It decided to run campaigns that demonstrated the value & benefits of buying a processor from a leading company in the Industry. This was the first of its kind in the Industry. In 1991, Intel adopted a new tagging “Intel- the computer inside”. Intel used the AD agency “Dahlia Smith & White” for its marketing program.
The tagging aimed at emphasizing the important role of microprocessors in a PC & also highlighted the fact that Intel’s products were reliable, safe ; technologically advanced. Later the tagging was shortened to “Intel Inside”. The tagging was accompanied by a logo in which the words “Intel Inside” appeared inside a circle. Marketing Saga The new marketing program consisted mainly of an incentive based cooperative advertising program. Intel created a cooperative fund wherein 5% of the purchase price of the microprocessor was kept aside for advertising funds ; made available to all PC makers . .NET shared the Advertising costs with the Memo’s for print advertisement that included the Intel Logo. This became popular & many Memo’s joined the program. After the SUccess of this program, Intel started to advertise in the print media. Intel released its first TV ad in early 1992. This AD was made by Industrial Light Magic for the new Intel ii processor. It stressed on the power, speed ; affordability of the chip. The ad was designed using the state of the art special effects ; featured a trip through the Inside of Computer.
TV provided Intel the right platform to effectively communicate the “Intel Inside” program’s message to the consumer. Intel was able to build a distinctive & positive image in the minds of consumer the world over. In 1993 & 1994, Intel launched the Pentium & Pentium Pro chips. Company decided to use names instead of numbers. Intel’s investment in marketing not only increased the demand for chips but also created more PC demand. The demands for PC’s were growing rapidly in spite of the increase in PC prices.
Intel was the catalyst in this PC revolution that swept the entire world. Intel subsequently started advertising in the web and also encouraged PC makers to use this media. Intel also allowed them to use the company logo & message in their advertisements. This helped the company convey to customers the important role of its chips by giving them a good Internet browsing experience. It was during the late 1990 that the internet gained popularity & consumers Egan turning to it for gaining information on products & purchasing online.
Intel took steps to become a leader in the Internet economy. The company spruced up its “Intel Inside” program to promote & support e- commerce marketing activities undertaken by computer manufacturers. Intel entered into tie-up with many companies & could successfully market its chips as a component brand via online. To leverage the popularity of Intel logo, the company even started selling products like books, (for Engineers & IT professionals), caps, T shirts, key chains, pens, Coffee Mugs & Dolls.
These products have been made available through the company’s website ; came with the “Intel Inside” logo printed or embroidered on them. The printed material on the merchandise generally featured the latest product launched by the company. In 2001, in another innovative move, Intel setup the “Intel Inside” online network. This was essentially a web based tool that helped manage business transactions related to the company’s cooperative advertising program. The “Intel Inside” online network which was available rash a day provided even services in languages other than English (Chinese & Japanese).
Intel’s consistent efforts towards providing customer satisfaction through quality services ; its innovative efforts at component branding fetched commensurate results. Besides PC manufacturers, the company marketed it products to various other industries such as the Industrial equipment, military equipment ; commercial industries. In 2001, however Intel’s profit decreased drastically. Though the global IT slump & US economic slowdown were partially responsible for this decline, the lower average selling prices of crisscrosses & decrease in sales in general were the main culprits.
During this period, Intel had to face a nationwide (US) class action suit regarding the performance of the Pentium 4 processor. In 2002, Intel’s market share had climbed back to 87%. It remained the only company in the world that was able to make the PC just a package that came with Intel chips inside it. The fact that customers rushed to upgrade their PC’s every time Intel released a new chip spoke volume about the cult of “Intel Inside” devotees the company had created & nurtured over the years.