History If Intel
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Intel has changed in many ways through the companys history. It is in a unique market and Intel has developed an advertising campaign to help it flourish and dominate all competitors. Intel did not reach success over night. This paper will explore how the company developed, what they did to market the product, and the spoils of having a highly successful marketing plan coupled with a product of extremely high value.
Robert Noyce and Gordon Moore are the two founders of Intel. The two had been working for a semiconductor and wanted to branch out on their own. The company needed a business plan to attract investors. Instead of hiring a company to help develop this plan Robert Noyce went home and wrote a simple one page plan on his personal typewriter. They then found a financier named Art Rock who believed in the vision so much that he was able to raise 2.5 million dollars in two days. This was enough money to get the company moving in 1968. The company ended its first year making only 2,672 dollars. They would spend the next two years developing and created the worlds first microprocessor in 1971. Intel also developed the first erasable programmable memory that same year. These two innovations proved to be the foundation for the personal computing revolution. This lead to the companys first 3 million dollar month in 1973. Intel continued to develop and in 1983 the company passed 1 billion dollars in annual revenue for the first time. The company developed its Intel inside campaign in 1991. Two years after the start of the campaign the financial world ranked the Intel brand as the third most valuable in the world. By this time Intel has taken control of the market with its microprocessors powering over 85% of all desktops. In 1998 Intel launched its first processor for the value market segment. This product is known as the Celeron processor. Intel then broke into the sever market by 2001 with the introduction of the Itanium processor. Then finally in 2003 Intel unveiled its Mobile Centrino Technology which has helped the laptop market develop lighter, thinner portable computers. All of these developments show the great importance for Intel to continuously develop new technology rapidly to sustain the companys power and competence in the computer industry. The founders of Intel have been awarded various medals for their accomplishments including one from then President Jimmy Carter and then again from President Ronald Reagan.
The development of a brand campaign is the reason that the world knows so much about what powers a computer. Before 1991 when Intel started the campaign, the company was only well known to computer makers. Intel had relied on PC venders to convey the Intel message in the past. This plan left the company with minimal brand recognition among consumers. In 1989 Intel invested billions of dollars into developing cutting edge technology and billions more into assuring performance and reliability. These developments lead the company to decide that a stronger brand name was needed to communicate its technology and advances to the public. The company along with an advertising agency raised two questions. First, could a pure technology company play in the same league as Proctor & Gamble, General Motors, and McDonalds? Secondly, the processor although a key component of PCs, was just that, only a component.
These two questions made it essential for Intel to work with the manufacturers of the computers. Intel then studied other consumer marketing techniques employed by well known companies supplying a component or ingredient to a finished product like NutraSweet, Teflon, and Dolby. This brought the company to, “the computer inside” marketing approach. This positioned the company into an important role