Intel - The Component Branding Saga

The company developed a component branding strategy that aimed at gaining consumer confidence in Intel as a brand. It decided to run campaigns that would demonstrate the value and benefits of buying a processor from a leading company in the industry. The most innovative aspect of this strategy was the decision to communicate directly with end-users. This was a very novel idea for a 'pure technology' company. Intel's decision was eyed with suspicion by industry observers as no other company in the industry had ever done this before.

All was not well with Intel as it moved into the 21st century - in 2001 its profits decreased drastically to $ 1.29 billion. Though the company felt that the global IT slump and the US economic slowdown were partly responsible for this decline, the lower average selling prices of microprocessors and a decrease in sales in general were the main culprits. The decline in sales was believed to be caused by the bad publicity caused by antitrust investigations carried out on the company by the European Commission. This investigation was carried out because of several complaints against Intel for using 'abusive marketing practices.'...