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Marketing Management
Intel Pentium

Marketing Management Case 1 Group Assignment
By:
EMBA06 group A6
Arjen Seckel
Mustafa Hanif
Xavier Barbier
Cedric van der Meulen
Richard Diepeveen

Table of Contents QUESTION 1 2
QUESTION 2 443
QUESTION 3 AND 4 665
QUESTION 5 887
QUESTION 6 887
APPENDIX A 998

Question 1
1

Assess Intel's brand situation prior to November 24, 1994. What were the major elements of its success?

Pentium was (and still is) the best-known brand name of all personal computer microprocessors. Intel started out at the end of the sixties and was the first to introduce a microchip with semi conductors. It was also Intel's Gordon Moore that predicted that the capacity of a chip would double every 18 months and it was Intel that did the just that almost ever since.
At the beginning of the 1990-‘s Intel started a huge marketing campaign promoting it's Pentium as the number one chip for PCs in the growing market of home and business users, using their famous slogan "Intel inside" a step change from the former run-of-the-mill promotion campaigns of x86 chips – that failed to achieve distinct brand recognition. Intel also learnt from its strategic dissonances (and their bitter results) and was relatively quicker to change and harvest from this new campaign. At the heart of the success of this campaign was the co-branding strategy where the Intel inside message was located near the established big cats of the PC markets e.g. IBM, Compaq – and therefore
Consumers readily identified a quality, up to date computer as one with an Intel chip inside. The consumers believed the Intel chip was an essential part of the computer they purchased. The brand of the chip inside was even more important than the brand of the computer itself. The chip was considered to be the brain of the computer and consumers were prepared to pay a premium for it. Powerful marketing and a high tech chips however were not the only reason for Intel to

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