January 23, 2006
Intel Unveils Brand New Image
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Jack Horgan - Contributing Editor


by Jack Horgan - Contributing Editor
Posted anew every four weeks or so, the EDA WEEKLY delivers to its readers information concerning the latest happenings in the EDA industry, covering vendors, products, finances and new developments. Frequently, feature articles on selected public or private EDA companies are presented. Brought to you by EDACafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!

Introduction


On January 3, 2006 Intel Corporation formally unveiled a new brand identity that it said "represents a significant milestone in the company's history and further signifies the company's evolution to a market-driving platform solutions company." The company has made a fundamental shift in its approach to the market that began with the development of the Intel Centrino mobile technology platform. The company reorganized itself around the platform model last year, and is now focused on four key market segment opportunities: mobile, digital home, enterprise and health. The company has also announced that it will deliver a new platform for the digital home - Intel Viiv
technology - in early 2006. The announcement was made at the same time as the Consumer Electronics Show in Las Vegas. Paul Otellini was one of the keynote speakers at the show.


On rare occasions companies change their names. A name change might occur as a result of a merger or major acquisition such as Exxon Mobil. Synopsys began in 1986 as Optimal Solutions. Cadence Design Systems, Inc was formed in May 1988 as the result of a merger between SDA Systems Inc. and ECAD, Inc. The name change might occur in an attempt to overcome negative publicity such as WorldCom becoming MCI. This might occur when a firm changes its basic business strategy. It might occur when a firm wants to replace a name associated with outmoded technology. IBM was Computing-Tabulation Company until 1924. It may simply occur as a marketing effort to revitalize a struggling company.


When a company changes its name, it generally changes its logo. A company may obviously change its logo without changing its name. The IBM logo was originally based on a globe. The familiar three letter logo was originally an outline of the letter, it then became a solid version and is now a stripped version. In the case of a name and/or logo change a firm will spend a substantial amount of money developing new and replacing old versions of everything with the company name or logo.


A good example of a company name change is Exxon. In the early seventies Jersey Standard changed its corporate name to Exxon enabling it to replace three regional brands (Esso, Enco and Humble) of gasoline with a single national brand. After the merger with mobile the firm became Exxon Mobile. A more recent example of a company name change is SBC Communications Inc. who changed its name to AT&T Inc. after it acquired AT&T Corporation.


An example of a logo change would be the NBC (National Broadcast Company) who in 1976 introduced with considerable fan fare a new logo, a stylized "N" built from two trapezoids. They were embarrassed when it was found that tiny Nebraska ETV Network that had a nearly identical logo. NBC paid the Nebraska company to obtain the rights to the logo.


Companies frequently change product names, advertising themes and taglines. Taglines are an important component of marketing campaigns. General Electric taglines have included "We Bring Good Things to Life", "Progress is Our Most Important Product", "Live Better Electrically," and now "imagination at work". Nike uses "Just Do It", BMW "The Ultimate Driving Machine" and IBM "On Demand"


Sometimes a company changes its name or a product name for political correctness. There once was a dietetic candy called AIDS. In 1957 Sam and Bo started a restaurant called Sambo's. The restaurant chain once had over 1,200 units. The firm used a logo based on a children's story called "Little Black Sambo". Although the story takes place in India and Sambo is Indian, many thought the boy was African. The negative public relations caused the firm to close all but the original store in Santa Barbara. AIDS dietary candy


A brand is a product, service or concept that can be distinguished from similar products, services and concepts the way cattle ownership can be determined by a symbol burnt into the skin of the animal. The visual elements of a brand included shape, font, color and text. But a brand is more than this. According to Building Brands Limited a brand is "a collection of perceptions in the mind of the consumer." In the heyday of IBM hardware is was said that "no one ever got fired for buying IBM"


Intel is not merging with anyone, they dominate the semiconductor manufacturing industry, and their "Intel Inside" marketing campaign has been an enormous success. How many consumers know the vendor of the memory or disk drive of the computer they own? Most know not only the name of the vendor of the processor chip but the version of the Pentium or Centrino chip they have. In fact in July 2005 Interbrand Corporation, a leading brand consultancy firm, ranked the top 100 brands on net present value based upon their five year projection of intangible earnings discounted by certain risk factors. The results were published in Business Week. In this report Intel ranked
number 5 behind Coca-Cola, Microsoft, IBM and GE. The value of the Intel brand was calculated to be nearly $36 billion.


The original Intel logo developed 37 years ago (1968) by company founders Robert Noyce and Gordon Moore was described variously as dropped-e, lowered-e or decended-e Intel logo. In 1991 Intel began using Intel Inside advertising logo. The Intel Inside® Program is one of the world's largest co-operative marketing programs, supported by thousands of PC makers who are licensed to use the Intel Inside® logos. The new logo will feature an oval swirl souring the company name.


New and Old Logo



New and Old Ad Logo

The re-branding includes
Branded platforms: Viiv, Centrino, Centrino Duo

Processor bands
Core: Solo, Duo

Pentium: D, M, 4HT, Extreme, 4, 4 Extreme

Celeron: M, D

Itanium 2

Xeon
Each of these has its own logo with a consistent look and feel. The 'Intel Inside' still appears as part of some of the logos.


These changes comes less than a year after Paul Otellini succeeded Craig Barrett as Intel CEO and only a few weeks after Eric Kim was promoted to the role of Chief Marketing Officer. Kim been hired away from Samsung last fall. He was credited with making significant inroads against Sony. Over the last five years Samsung has had the largest increase in brand value at 186%. In a statement Eric Kim said that "'Intel® Leap ahead™' is a simple expression that declares who we are and what we do. This is part of our heritage. Our mission at Intel has always been to find and drive the next leap ahead - in technology, in education, social responsibility, manufacturing and
more - to continuously challenge the status quo. It's about using Intel technology to make life better, richer and more convenient for everyone."


Otellini, Intel's first chief executive without an engineering degree, has strong opinions about being more market than technology driven. He sees the days when Intel could thrive by being focused on individual microprocessors as past and he believes the firm needs to be bringing together chips and software into so-called platforms.


The company staretgy had been to develop new and improved microprocessors by ramping up their clock speeds, by developing chips based on multicore processing, or by having two or more cores in one processor.


In 2003 with the introduction of Intel Centrino mobile technology Intel first provided customers with full sets of technology ingredients - such as microprocessors, chipsets, communications chips, base software capabilities, and other enabling tools that work together as a platform to improve the way technology is used.


During the first quarter of 2005, the company reorganized its business groups to bring all major product groups in line with the company's strategy to design and deliver technology platforms. These new business units include the Digital Enterprise Group, the Mobility Group, the Digital Home Group, the Digital Health Group and the Channel Platforms Group. The platform-based organizations also reflect the ongoing convergence of computing and communications by incorporating both capabilities across the new groups. The Mobility Group will develop platforms for notebook PCs and handheld computing and communications devices. The Digital Enterprise Group will develop computing and communications infrastructure platforms for end-to-end solutions in businesses. The Digital Home Group will develop computing and communications platforms for use by consumers in the emerging digital home, with emphasis on living room entertainment applications and consumer electronics devices. The Digital Health Group will develop products and explore business opportunities for Intel architecture products in healthcare research, diagnostics and productivity, as well as personal healthcare. At the time Otellini said " Each operating unit has the autonomy to allocate
computing and communications resources to be successful, making Intel's entire structure consistent with our platform products strategy. " For the first three quarters of 2005 the Digital Enterprise Group had $18.8 billion in revenue, the Mobility Group $9.7 billion and the others combined for $189 million.


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-- Jack Horgan, EDACafe.com Contributing Editor.




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