Oct 21, 2014
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