AMD’s Brand Value Surpasses Intel’s for the First Time
This scenario is akin to a 'dog bites man' tale, where the roles have unexpectedly reversed. Historically, Intel held a commanding lead in brand value over AMD, largely due to strategic initiatives like the "Bunny People" campaign under the guidance of former CMO Dennis Carter during Andy Grove's tenure. This era saw Intel's brand equity soar, thanks to a substantial marketing push.
However, the baton of brand leadership wasn't passed effectively down the line. Over time, Intel's once formidable brand advantage has waned. The recent Kantar Brandz report starkly illustrates this shift, with AMD now at position 41 and Intel slipping to 48. This inversion prompts a deeper look into how such a change occurred, its implications for both companies, and the potential risks it poses to the broader PC and server markets.
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Intel Inside: A Marketing Legacy
The "Intel Inside" campaign was a monumental marketing strategy that my wife once oversaw, underscoring one of Intel's most potent branding tools. It's challenging to think of another tech brand that achieved such widespread recognition.
Today, we often overlook who manufactures the processors in our everyday devices, from home appliances to electric vehicles, yet understanding the origin of components like batteries is crucial, given their varying quality. For instance, while Tesla owners might not know offhand who supplies their car's batteries, Tesla has made it clear that Panasonic is their partner.
This level of consumer awareness didn't materialize by chance. It was the result of an extensive campaign spearheaded by Dennis Carter throughout much of the 1990s. Unlike many tech firms that undervalue marketing or appoint engineers to marketing roles without sufficient marketing acumen, Intel, under Carter, invested heavily in building its brand.
How AMD Moved Ahead of Intel
AMD might not be renowned for its marketing prowess, but under CEO Lisa Su's stewardship, the company has excelled in execution. Their products have been reliable, often surpassing expectations. AMD's strategy includes key acquisitions aimed not at outpacing Intel, but at narrowing the gap with Nvidia, particularly in the AI sector.
Historically, AMD hasn't been a leading brand in consumer recognition, yet its steady performance has incrementally increased its brand value. Conversely, Intel's brand value has declined, partly due to reduced investment in marketing and a shift away from its distinctive ingredient branding strategy.
Wrapping Up: Technology’s Big Marketing Problem
Engineers often helm tech companies, and while they excel in technical aspects, they're not typically celebrated for their interpersonal skills. Marketing, much like sales, thrives on these skills but on a grand scale.
Take Windows 95, for instance, which was marketed with unprecedented vigor, yet it also highlighted Microsoft's misunderstanding of marketing. Despite its commercial triumph, Microsoft didn't replicate this strategy, primarily because their support systems couldn't handle the influx. The logical step would have been to enhance support capabilities, but instead, they dismantled the very teams that fueled Windows 95's success. This pattern repeated with the Xbox team, contributing to the later flops of the Zune and Microsoft Phone.
After Dennis Carter's departure from Intel, subsequent Chief Marketing Officers dismantled the "Bunny People" campaign and diminished the "Intel Inside" brand. They failed to appreciate the necessity of nurturing and expanding Intel's once formidable brand equity. Every executive should be proficient in their domain, not just filling roles without the requisite expertise.
The tech sector seems to be learning this lesson the hard way. Dell has climbed to 81st in the Kantar Brandz rankings, but Lenovo, HP, and HPE didn't even feature. This isn't unique to tech; in automotive, Tesla ranks at 26, the sole American car brand in the top 100.
Unless there's a shift towards adequately funding and staffing marketing departments, companies will continue to face financial repercussions due to poor brand management. It's disheartening to witness the decline of "Intel Inside." Hopefully, Intel can reignite the passion and focus needed to restore its brand to symbolize quality once more.
Meanwhile, Nvidia, Qualcomm, and AMD should be commended for their strategic execution!