Smell

Sound

Taste

Touch

Sight

Only about 9% of all companies make use of sound to make their brands more distinct, recognizable and memorable…

- Brand Sense by Martin Lindstorm

…and Intel with its unique trademark sound has been doing just that for years now.

Is the ingredient core to functionality and tenders significantly different benefits than competitive offerings, simultaneously.

Does the ingredient brand leverage the perceived value of the host brand and final product.

Is the technology (C.A) sustainable over long term.

Growth opportunities outside the alliance.

Important strategic considerations before opting for ingredient branding:

Pre-requisites for successfully implementing ingredient branding strategy: Keller's 4 tasks

1. •Convincing consumers that it significantly impacts performance of end product.

2. •Consumers must perceive chosen ingredient as superior to competitive offerings.

3. •Clearly placed/positioned symbol or logo on product packaging or body.

4. •Creating push and pull programs

Reaching Up

Enhances brand image and improves penetration

Reaching Beyond

Strong image and new customer base

Reaching In

Greater penetration and enhanced product functionality

Reaching Out

Significant value addition to core functionality and new customer base

TARGET MARKET

Exte

nd

ed

New Market

Existing

Core

CO

MP

LE

ME

NTA

RIT

YCo-branding

strategies

Ingredient Branding: Advantages

Ingredient Brand Host Brand

•Penetration route sorted. •Improved brand image in case its lesser known.

•Ingredient can become point of entry, eg. quality standard, and exploit its CA.

•Quick recognition and acceptance by consumers.

•Direct contact with consumers possible.

•IB leverages quality perception of end product among consumers.

•Shared R&D costs. •Shared marketing costs.

•Adds the ‘exclusivity’ factor to final product.

Dilemma of Ingredient Branding: Exclusivityvs Ubiquity

“Ingredient branding hurts the top-end players just as often as it helps the bottom-end players”. -David Aaker.

The Intel Inside campaign aimed to "educate both the retail sales associates and the consumers about the value of Intel microprocessors, 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.

Focus of branding strategy: INTEL

Identifying the problem:Developing strategic course of actionImplementing strategic decisionAssessing effectiveness of decision

INTEL Inside: The case

Due to a number of clone products in the market, Intel was unable to differentiate its products from the herd.

Consumers were left baffled for choice and often guessing as to the content and performance of MP.

Consumers knew Intel through its product offerings which were often being cloned. Intel wanted consumers to recognize its product through the brand Intel itself that connoted reliability and superior performance.

Identifying the problem

Intel Coop Program marked the birth of brand Intel.

The program intended to levitate Intel as a brand through 3 strategic steps:

1. Developing and using a brand logo in advertisements of OEMs.

2. Engaging tier 2 and 3 OEMs in the program via profitable propositions.

3. Prolific advertisement to create awareness about importance and superiority of Intel chips.

Developing Strategic Solution

Designing a unique logo.Convincing tier 2 and 3 OEMs initially of the

short term and long term benefits of alliance and engaging them.

Direct advertisement aimed at organizational rather product communication thus enabling a ‘brand consumer connect.’

Implementing the Coop Program

Awareness of Intel logos prior to IB strategy was a meagre 24% in European PC market.That, within 2 years of its launch soared wildly to 94%

Worldwide sales within a year of launch of IB strategy rose by63%.

By 2002 Intel broke into the list of top 10 most valuable brands.

Assessing the program

Power of Intel brand equity

Year Brand Equity Interbrand Rank

2008: $31,261 mln 72007: $ 30,954 mln 72006: $ 32,319 mln 52005: $ 35,588 mln 52004: $ 33,499 mln 52003: $ 31,112 mln 5

2002: $ 30,860 mln 52001: $ 34,670 mln 5

Leveraging Brand Equity

This presentation on ‘Intel’s Ingredient Branding Strategy’ was prepared by:

Ajay Pal Singh- D02Alok Wadhan- D03Amit Gambhir-D04Bhavik Sheth-D06Pawan Aggarwal- D28Sohini Patel- D43Vijayendra Singh Pathania_ D51Himangini Chauhan- D54