Intel: A case study in Corporate Branding

Perhaps the most successful technology company to balance the dual requirements of innovation and reliability in its branding is Intel.

Because of the fears consumers have, when things go wrong with technology products they react disproportionately. Take the well documented example of Intel, when initial faults discovered by customers after the launch of the Pentium chip by Intel were potentially devastating,and the company was receiving up to 10,000 calls a day from dissatisfied or unhappy customers. Good crisis management saved the day, and Intel regained their position of trust and high quality performance in the minds of consumers.

Intel is a model of good technology branding and positioning, and had it not already had a strong position crisis management may not have been enough to save the day. The company really survived and prospered because of this, and has shown how a power positioning approach can solve the problems of consumer technophobia, with its now famous Intel Inside campaign. As a component that is not visible to consumers who buy personal computers, and OEM producers offering price advantages to manufacturers, this was no easy task.

The Intel position has always been based on authenticity, quality and performance, supported strongly by consistent global campaigns. The Intel Inside logo is placed on all print advertising, print and point-of-sale merchandising, shipping cartons, packaging, and is used by world brand and OEM computer manufacturers. Supported by explanatory communication material, it has to a large extent succeeded in calming the fears of consumers who are doubtful of the performance of critical and complicated product elements they do not understand. The introduction of the Intel 'Bunny people' in astronaut-type attire in an attempt to humanise and add personality to product has not been so successful, being perceived by many as cold and impersonal.

Interestingly, Intel has now developed individual product brands, as is the case with the Pentium and Pentium II range. The rationale for this is that a name like Pentium ( derived from the Greek word pent meaning five and alluding to the fifth generation of X86 computer chips ) provides a kind of shorthand which is more meaningful to the consumer, summarising the benefits more easily. Pentium II is positioned as a high performance product aimed at business and consumer users. More recently the Intel equivalent of a 'no frills' product range called Celeron has been introduced, still endorsed by the parental name, but meant for a different target audience. This is positioned around value, compatibility and quality, but the Celeron initial offering has not had a brilliant start.

It remains to be seen whether Intel has really understood the needs of different market segments, and whether or not the cheaper product can hold true to the position and associations that Intel has so single-mindedly projected over the last several years. Also, if consumers will perceive the move as a more risky alternative, and even if it will devalue the position of the higher price existing products. In the worst scenario, the different products might cannibalise each others sales, and generate customer confusion. Intel intends to introduce more branded chips, and careful education of the consumer in this highly complex market will be essential to negate customer confusion and achieve successful brand positioning.

Brand strengths: humanization, personality, brand name, positioning

Excerpted from Branding in Asia by Paul Temporal. Click on the book title to order from Amazon.

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