Intel Corporation

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Intel Corporation

BUNNY PEOPLE CAMPAIGN
TIME FOR A PENTIUM II PROCESSOR? CAMPAIGN

2200 Mission College Blvd.
PO Box 58119
Santa Clara, California 95052-8119
USA
Telephone: (408) 765-8080
Fax: (408) 765-9904
Web site: www.intel.com

BUNNY PEOPLE CAMPAIGN

OVERVIEW

During the 1980s the popularity and performance of personal computers (PCs) experienced phenomenal growth. Chip maker Intel Corporation, based in Santa Clara, California, produced a major share of the microprocessors powering those PCs, leading the way in both consumer recognition and sales and claiming a 90 percent market segment share by the late 1990s. By 1990 Intel had begun to focus its marketing on shaping the corporate brand with newly hired agency EURO RSCG DSW Partners, Salt Lake City. The agency set out to create a brand image for Intel's chips as "The computer inside," a concept that, in a 1991 campaign, hit the bull's-eye. "Intel inside" became more than a campaign tag line; it was an industry icon.

Throughout the 1990s the PC industry faced an ever-increasing demand from consumers for faster, high-performance microprocessors for their personal computers. In 1997 Intel responded by introducing its most enhanced technology in 10 years, MMX and the Pentium II processor. Acknowledging the increasing trend to use PCs for entertainment as well work, Ann Lewnes, Intel's director of worldwide advertising, stated, "[The company's objective] is to create awareness and excitement among consumers. We wanted to position the product as fun, particularly for multimedia applications."

Intel was the only tech company to purchase ads for the 1997 Super Bowl's coveted commercial slots. During Intel's 30 seconds, "Bunny People" did the disco. These Bunny People were modeled after chip technicians who work in the hyperclean manufacturing rooms of fabrication plants. Their spacesuit like "cleansuits," or "bunny suits," are worn to prevent even the tiniest of particles from contaminating the processors. In the spot a group of Bunny People danced about in brightly colored lam, bunny suits. Said Lewnes, "These commercials are humorous, high-tech fantasies that show how fun computing can be with MMX technology." Another spot in the campaign featured Seinfeld star Jason Alexander as a hapless character hoping to impress potential blind dates via Intel's video phone. These spots, together with related print ads, radio spots, and promotions, spurred both consumer approval and rival spoofing and was the most comprehensive campaign ever undertaken by Intel.

HISTORICAL CONTEXT

By the 1980s computers had begun to move from a largely scientific and industrial market into the personal user market. Intel's 1989 ad campaign with Shafer & Shafer, an Irvine, California, tech agency, prompted consumers to upgrade their systems with the latest technologies. Intel had just released its 386 chip, an upgrade of

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its 286 chip. When computer makers and buyers did not rush to upgrade, a striking "Red X" campaign was designed. Print ads and billboards featured graffiti-esque red spray paint x-ing out "286" and scrawling in "386SX" in an effort to move consumers along the upgrade food chain. In 1990 Intel signed on EURO RSCG DSW Partners. That year's campaign, "The Computer Inside," focused on building the corporate brand. In 1991 the company launched "Intel Inside." The success of the "Intel Inside" campaign was due in part to brilliant co-op marketing—that is, paying PC makers to feature the logo in ads. Through a combined marketing effort between Intel and computer makers, the "Intel Inside" logo on PCs became a seal of approval in the minds of consumers.

Between the years 1989 and 1996 Intel's revenues soared from $3.1 billion to $20.8 billion, net income rose from $391 million to $5.2 billion, and market segment share grew from under 60 percent to 80 percent. The "Intel Inside" campaign had solidified Intel's image of superior performance, outweighing the fact that the company's microprocessors cost considerably more than those available from its competitors. Intel became a cash cow, with sales increasing a whopping 30 to 50 percent every year between 1994 and 1997.

As Intel's enviable success was turning heads and profits, their competitors were carving a different niche. Prior to 1997 the average PC price was $2,000. In that year Compaq Computer Corporation set an industry precedent by offering a high-powered PC at a bargain-basement price of $999, powered by rival Cyrix Corporation's MediaGX chip. The sub-$1,000 PC market proved irrepressible. Within a year nearly all major PC makers were offering the new price point, resulting in a segment sales increase from 7 percent of the U.S. retail market in 1996 to approximately 25 percent in 1997. Intel's president and CEO Dr. Andrew S. Grove explained the company's response to this competition to Business Week: "For us to walk away from a market whose size is going to be measured in tens of millions of units per year, maybe bigger, is inconceivable…. It is very important for us to participate at both ends of the wire." The company planned to make up for meager profits on the low end with increased volume and on the high-end with sales directed at server and workstation markets.

TARGET MARKET

The success of Intel's brand identification could largely be summed up in two words: "Intel Inside." The tag line had proven enormously successful in whispering "performance inside" into the ears of PCs buyers. Consumers wanted an assurance that their PC could go the distance double-time as they cruised the Internet, developed intricate audio and animation programs, and played power-hungry computer games.

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The age market for such a product was widespread—PC users from their late teens to late 40s. To reach such a diffuse target, the "Blind Date" and "Bunny People" spots were aired on such programs as ER, Seinfeld, and Veronica's Closet, with cable TV spots purchased on The History Channel, CNN, and A&E. The women's market was targeted with print ads placed in Self, Vanity Fair, Gourmet, and, for the first time, Martha Stewart Living.

The "Bunny People" spots proved the most popular aspect of the campaign. The mood set by Wild Cherry's boogie-down tune, "Play That Funky Music," hit home with those at both ends of the Baby Boomer generation. Boomers who had come of age during the 1970s identified with the disco reference from firsthand experience. The theme spoke to younger Boomers as well because the campaign was launched during a late 1990s nostalgia for anything from the 1970s. The hints of '70s nostalgia in the disco-themed ads proved a winner with the youngest target market segment as well. Intel's campaign had successfully caught the ears of all ages within its intended market.

COMPETITION

By the 1997 release of MMX technology, Intel had a decided claim on the title of world's top selling chip maker. Primary competition came from Cyrix Corporation's MediaGX processor and Advanced Micro Devices's (AMDs) K6chip. Intel had already earned a distinguished reputation for performance, if not low-end pricing. Rivals Cyrix and AMD set out to develop a reputation for high quality at a more competitive price than Intel's. Cyrix's 1997 marketing goals were strikingly similar to Intel's, with one exception. "People want to be entertained in their living room—they don't want just a productivity tool. Through our innovative processor and system technology, we've made possible an easy-to-use home infotainment system with PC capability that people can actually afford," stated Cyrix's vice president of corporate marketing, Steve Tobak, on the company's website. Intel's rivals had an edge in competing in the sub-$1,000 PC market, because their processors continued to be available at prices well below the Pentium's. Consumers had been offered a sub-$1,000 PC that could perform, and they scooped them up. Market segment share for the price point jumped from 10 percent in 1996 to upwards of 20 percent the following year. "It's the first time in many years that there has been a viable alternative [to Intel] at the low end," IBM senior vice president Samuel J. Palmisano told Business Week. His company tapped AMD's K6 chip for their low-end line of PCs. Intel's monopoly on high performance chips that could run desirable software had been challenged, and at a considerably lower cost to PC makers.

AMD's fall 1997 campaign, developed by Hill, Holliday Advertising, sent out just this message. One spot featured a secret agent held captive by an evil mastermind whose plot to rule the world is foiled when the processor in his expensive PC cannot deliver. Thanks to the AMD processor in his PC, the secret agent handily escapes. On AMD's website, Tom Stites, vice president of communications, said, "These television spots target personal computer consumers. Our intent is to show that buying PCs based on the AMD K6 processor is a smart choice. The message is that no matter how much or how little consumers are prepared to spend for a similarly configured system, they will get better performance with the AMD K6. Our message of performance and value is compelling, but our primary competitor outspends us on advertising by almost twenty to one. In order to be heard above the noise, commercials from AMD must break through with humor and excitement."

Apple Computer, Inc., could not have agreed more. In 1997 Apple joined forces with TBWA Chiat/Day for the first time in over a decade. This team was responsible for having produced Apple's legendary "1984" campaign, voted the best ad of all time by advertising professionals. In early 1998 the team followed their cerebral 1997 "Think Different" campaign with the "Toasted Bunny" spot, a direct spoof on Intel's disco dancing "Bunny People." Apple had already made fun of Intel's vaunted processor speed in a spot of a garden snail crawling along with a Pentium II chip on its back. Their "Toasted Bunny" spot featured a guy in a shimmering blue cleansuit, accompanied by the 1970s classic "Disco Inferno." As the foil-clad techie dances to the beat, his feet burst into flames, and he has to be doused by a fireman. Apple's website deepened the tease with, "Ah, there's nothing sweeter than the smell of toasted chips in the morning."

MARKETING STRATEGY

Intel's decision to take a more humorous marketing tack came about as chip suppliers were discovering that consumers were not responding well to ads dwelling on the technical intricacies of PCs. On television two "Blind Date" spots, starring Jason Alexander, were the first ads to lighten up. Director Jim Gartner, who had brought to life Pepsi's "Dad's Blessing," HBO's "Falling TV" and Visa's "Burro," teamed up with EURO RSCG DSW Partners in creating the spots, a tongue-in-cheek portrayal of Intel's video phone capabilities.

In the second round of spots, the Bunny People characters were introduced in a send-up of the boring geek stereotype. The first spot, debuting during the 1997 Super Bowl, contrasted a traditional fabrication-plant setting with a more free-spirited MMX technology department. Within this more fun-loving environment, the Bunny People danced the workday away, suggesting the PC user could experience new heights of fun with the aid of MMX technology. The Bunny People showed up on television spots throughout the year, and during the fall an international flavor was added by having the Bunny People travel the globe in a "TechMobile," created by Batmobile designers Trans FX of Los Angeles. In the "Road Trip" spot the Bunny People became so excited about Pentium II technology, they were inspired to build the TechMobile to help them spread the word around the world. In a second spot the TechMobile delivered the beloved Bunny People to Hong Kong, where they were hailed by crowds in awe of the marvels of Pentium II.

The television and print campaigns were complemented by radio commercials and an interactive sweepstakes. On the websites of MTV, Interzine, Gamespot, MPlayer, Hotwired, and Hollywood Online, users were supplied with clues for the official sweepstakes found on Intel's website.

Intel continued its proven track record of co-op marketing in 1997. The home PC buyer's awareness of the Intel microprocessor increased from 20 percent at 1992's campaign launch date to 80 percent in 1996, according to Dennis Carter, vice president of sales and marketing for the company. Even more impressive was the 90 percent recognition in the business market. Carter told Advertising Age magazine that 70 percent of home PC buyers and 85 percent of business buyers preferred Intel and were willing to pay the higher price the "Intel Inside" logo commanded.

PLAYING IS THE THING

Intel's "Bunny People" campaign succeeded in transforming supposedly geeky MMX chip technicians into fun-loving, dance-at-the-drop-of-a-keystroke guys. The ads were popular in consumer surveys, and thanks to Intel merchandising, anyone enamored with the brightly suited techies could take home an eight-inch beanbag doll version of their very own. Bunny People character dolls, available in an assortment of cleansuit colors, were among a treasure trove of merchandise developed around MMX technology. Consumers could pick up a Bunny People doll at their favorite computer outlet or log on to Uniquely Intel, the company's Internet merchandise catalog (http://www.intel.com), to scoop up Bunny People embellished beach towels, bags, tumblers, watches, and apparel.

Since the inception of "Intel Inside," consumers had shown a strong allegiance to the company's co-op efforts. According to a September 15, 1997, issue of Advertising Age, Intel had an estimated advertising budget of $900 million in 1997, $750 million of which went into co-op ads. As of 1997, approximately 1,500 PC makers were participating with Intel in co-op marketing, wherein they received a 6 percent rebate on chip purchases by tacking the Pentium logo on their PCs and ads. PC makers would come up with one-third of the cost of print ads and one-half that of broadcast costs. For the first half of the year, nearly 80 percent of the $202.9 million spent on U.S. PC advertising in computer and business publications featured the "Intel Inside" logo according to Sheila Craven, president of Adscope, an ad tracking company. Intel's contributions toward shared advertising proved irresistible, with every major Intel-based PC maker participating by 1996.

OUTCOME

Intel's "Bunny People" campaign proved a strong success, thanks to the uplifting image provided by Wild Cherry's "Play That Funky Music." A USA Today Ad Track survey found the spot among the top 10 favorite ads among baby boomer consumers, making it the most popular tech campaign ever measured by the poll. It ranked in the top 20 of 90 campaigns measured by Ad Track in a two-year period. The breakdown showed that 30 percent of those answering the survey claimed they liked the MMX ads a lot, with 38 percent of those between 18 and 24 giving the ads a thumbs up. A mere 8 percent of those polled felt the television spots were ineffective. Consumers said they felt the disco-dancing Bunny People imparted a fun, consistent image for the brand. Ricky Banaag, Intel Microelectronics country manager for the Philippines, told Newsbytes News, "Our research shows that the Bunny People characters have been a positive influence on Intel's brand personality. Bunny People characters have helped make the Intel brand more friendly and accessible."

Industry insiders were not necessarily so positive. Apple executive Allen Olivio called the "Bunny People" ads frivolous in Entertainment Weekly. "It's what happens to advertisers when they don't have anything to say." Marketing consultant Gary Stibel showed concern that Intel's funky ads might threaten the reputation for high quality secured with its earlier "Intel Inside" identification, and he suggested to USA Today that Intel should stick to a consistent image. A president of an undisclosed ad agency for a major computer client, commenting on Intel's focus on co-op marketing, told Advertising Age, "Most people that buy computers don't even know that that chip is in there. They care about the performance of the computer. It really doesn't matter what the chip is." But John Dahlin of EURO RSCG DSW Partners responded, "Ultimately the success of your work is the success of your client. What we do is produce advertising that works great for the problems that our client has. If it doesn't win a lot of awards … as long as a billion people buy Pentium, I can handle that." Intel could well handle its year-end report for 1997: revenue totaled $25.1 billion, with net income at $6.9 billion. It was the eighth consecutive year of earnings and revenue record setting for the world's largest chip maker.

FURTHER READING

Abrams, Judith. "Hearing Footsteps in Sub-$1,000 Market." Multimedia Monitor, November 1, 1997.

Armstrong, David. "Computers; Loose Connections." The Press, December 23, 1997.

Enrico, Dottie. "Consumers Bought into Real-World Ads in '97." USA Today, December 29, 1997.

??????. "Consumers Flip for Hip Chip Ads but Is Intel's Image Being Squandered?" USA Today, May 12, 1997.

??????. "For Advertisers, Age Starts to Matter." USA Today, September 22, 1997.

Goldfisher, Alastair. "Apple Torches Bunny in Latest TV Campaign." The Business Journal, San Jose, March 23, 1998.

"Intel Bunny People to Invade Aussie Living Rooms." Newsbytes News Network, February 26, 1997.

"Intel Launches $100+ Million Worldwide Ad Campaign." Computer Publishing & Advertising Report, September 29, 1997.

"Intel Unveils Global Pentium II Processor Ad Campaign." M2 PressWire, September 16, 1997.

Jacobs, A. J., and Shawna Malcom. "Spoof in Advertising: Imitation Is the Sincerest Form of Parody." Entertainment Weekly, April 10, 1998.

Johnson, Bradley. "Challenge for Intel: Boosting Tech Market." Advertising Age, September 15, 1997.

Reinhardt, Andy, Ira Sager, and Peter Burrows, "Cover Story: Intel." Business Week, December 22, 1997.

Seaman, Debbie. "What's the Big Idea?" Advertising Age's Creativity, May 1, 1998.

Stahlman, Mark. "MMX Is Great, But Do We Need It?" Computer Reseller News, February 10, 1997.

"US $10 Million Intel Media Blitz for Asia Pacific." Newbytes News Network, November 17, 1997.

                                                  Barbra Brady

TIME FOR A PENTIUM II PROCESSOR? CAMPAIGN

OVERVIEW

Intel Corporation, the world's largest manufacturer of computer chips, had used a consistent marketing strategy to make its brand universally recognizable. Since 1991 Intel had advertised its line of chips directly to consumers with the tag line "Intel Inside." By 1998, 80 percent of all active computers were powered by Intel's Pentium chip, and its share of the global chip market was also an impressive 80 percent. According to the National Post, Intel so "thoroughly dominate[d] the microprocessor industry that [its] slogan [had] become a defining reality of personal computing." Intel had thrived in part because its advertising had convinced consumers and business users to upgrade repeatedly to its latest products. As Advertising Age explained, Intel's marketing premise was to bill itself as providing "the fastest, latest, and greatest chips." In May 1997 Intel introduced the Pentium II, a microprocessor that was more powerful than its predecessors and also contained innovative MMX technology, which allowed for improved multimedia functions.

After initially pitching the Pentium II to the business side of the market, Intel decided that 1998 was the year in which to explain to a mass consumer audience why they should also buy personal computers containing the Pentium II. In September of that year, Intel launched its "Time For A Pentium II Processor?" campaign, which consisted of a trio of television commercials created by Messner Vetere Berger McNamee Schmetterer/Euro RSCG—the first work this agency had produced for Intel. The purpose of the three spots was "to dramatize the question of what would happen if the deficiencies of Pentium II's competitors (and progenitors) insinuated themselves" into the real world, noted Advertising Age on September 28, 1998. Although Intel's lead in the microprocessor market was substantial, its competitors had begun to make inroads by offering budget chips. Consumers were becoming increasingly unwilling to pay premium prices for Intel's cutting-edge technology when they could purchase computers powered by cheaper chips, that—although slower—were still capable of executing a variety of tasks.

The three "Time" spots humorously and hyperbolically illustrated the difficulties a failure to use a Pentium II processor could create. One ad depicted a sky diver whose parachute unfurls at a glacial speed. As he plummets towards the ground, a message box pops up on screen: "Processing parachute, please wait." Another commercial portrayed a soccer match in which the goalie had not fully downloaded. As the opposing team advances with the ball, only his legs have materialized and a similar "please wait" message is displayed. The final commercial featured a baseball game where the pitcher's fastball never arrives at home plate. "Whoaaa," the broadcaster exclaims as the ball hangs in the air, "the pitch hasn't processed yet. Aw, this slow processing thing is a tough break for this young kid." Another "window" appears—"Processing fastball"—to explain the delay. Each commercial closed with a voice-over querying, "Time for a Pentium II Processor?" accompanied by the "Intel Inside" logo. Intel was quite pleased with the spots. Not only did they boost sales of the Pentium II itself but they were lauded by consumers and advertising industry insiders alike.

HISTORICAL CONTEXT

Intel's greatest marketing innovation was to target a mass audience with its microprocessors. Beginning in 1989 with its famous "Red X" campaign on behalf of its 386 chip, Intel recognized the rewards afforded by hawking its wares directly to a broad range of consumers rather than simply aiming for technophiles. This approach was significantly at odds with what was then conventional wisdom concerning technology advertising. According to the September 15, 1997, issue of Advertising Age, ad critics derided Intel's consumer-based efforts because "most people that buy computers don't even know that the chip is in there … They care about the performance of the computer [not] what chip the chip is." Microprocessor manufacturers typically touted their products to original equipment manufacturers (OEMS), who assembled personal computers and then sold machines to the public. Intel, by contrast, believed that it could create demand for its products through savvy ads, and that by doing so it could get personal computer users to pay attention to microprocessor brands and even ask specifically for computers containing Intel.

"Intel Inside," which was conceived by Dahlin Smith White and debuted in 1991, consistently delivered the message that Intel's chips were superior. The first "Intel Inside" ads were designed to promote Intel's 486 chip (the successor to the 386), and the company continued to use the campaign as it rolled out new generations of ever more speedy and advanced chips including the Pentium and then the Pentium Pro chips. Early "Intel Inside" commercials took viewers on a high-tech voyage through the innards of a computer that ended at the processor, the "brain" of the machine. Later ads were more sophisticated, such as the company's "Bunny People" spots, which first aired during the 1997 Super Bowl, and depicted disco-dancing technicians adding fun to Pentium chips. (These "Bunny People" commercials were also the first to feature the Pentium II chip.) In addition to the television, print, and radio campaigns that ran under the umbrella of "Intel Inside," the company also sponsored an advertising co-op, in which it paid a portion of an OEM's marketing costs if the manufacturer would announce that its machines had "Intel Inside," generally accomplished by way of a sticker affixed to each computer made. By 1997 every major computer maker participated in the co-op, including Compaq, IBM, Packard-Bell, and Hewlett-Packard. Contrary to the glum forecasts of tech insiders, Intel's consumer-targeted campaigns were an unequivocal success. The company's revenue had grown from $3.1 billion in 1989 to $20.8 billion in 1996, and "its Pentium brand has become synonymous with the rise of the PC," declared Marketing.

The Pentium II was not only faster, but it also performed multimedia functions better than its predecessors. In May 1997 Intel launched a campaign for the Pentium II that sought to reach business PC users. This $20 million print and Internet campaign used the slogan "The Next Chapter in PC Technology," and appeared in newspapers such as the New York Times, Wall Street Journal, and USA Today.

TARGET MARKET

After completing the campaign aimed exclusively at business PC users, Intel focused on a mass consumer audience with "Time." While the market for technical products had once been dominated by a computing elite, one-third of all American households owned a PC by 1994, according to the Wall Street Journal on September 20, 1994. Reaching such a vast and diverse audience was a challenge. As Advertising Age explained on October 7, 1996, Intel's overarching goal was to craft advertisements that were "relevant to consumer and business targets" alike, across demographic and geographic divides.

The primary way "Time" attempted to appeal to a broad audience was to avoid technical terms and jargon that would alienate some consumers (albeit while catering to a more computer-savvy segment). This was a key shift from the "Bunny People" approach, which had reached a more technology-oriented audience with its focus on the chip-making process. Instead, the "Time" spots "cleverly connect[ed] the cold concept of computer processing power to real-life situations," according to the Orange County Register. Without resorting to a discussion of megabits or graphic interface, Intel perfectly illustrated the campaign's underlying premise that computer speed was a necessity. In this way, the campaign reflected the computing reality of the mass of people who used their machines mainly as tools to word process, surf the Internet, and download information from favorite Web sites. The spots tapped into the "frustration [such a consumer] feels if [her] PC isn't working as fast as it might," a Messner executive told Marketing. The campaign hoped to play off the frustration everyone felt at some point, as they sat by idly while their computers slowly downloaded a file. The "message bar" incorporated in the commercial ("Processing parachute") was nearly identical to those that cropped up on all machines during a download.

"Time" simultaneously strove not to alienate those whose computer skills transcended this basic tool level. As the Dow Jones News Service noted, Intel had to "reach the 'in' crowd while amusing the rest of the audience." The ironic humor of the spots helped fulfill this goal by ensuring that regardless of a viewer's level of technical know-how, the spots would be engaging and witty.

COMPETITION

Despite Intel's overwhelming past success in its consumer advertising, "Time" was launched at a crucial point for the company. In what the National Post termed "a rare, but costly stumble," Intel had "failed to foresee that many users would prefer low-cost PCs that handle[d] typical computing tasks with alacrity" instead of "costlier machines based on Intel's fastest and most lucrative processors." By the summer of 1997, the San Jose Business Journal reported the results of a survey conducted by ZD Market Intelligence, which indicated that a stunning 34 percent of U.S. businesses would consider buying PCs with a chip other than a Pentium, and 25 percent claimed they were "highly interested" in purchasing a non-Intel PC.

INTEL HITS A HOMER

Shortly after the debut of "Time for a Pentium II Processor?" Intel broke a more general branding spot featuring an unlikely hero—Homer Simpson of the hit comedy show The Simpsons. The animated commercial depicts the famously stupid Simpson getting a Pentium chip implanted in his brain. He becomes a brilliant professor, who formulates a sort of unified pastry theory. The spot, which appeared after November 8, 1998, closed with a shot of the back of Homer's head—on which was stamped the famous "Intel Inside" logo. An Intel marketing executive explained in a press release that "Homer Simpson is the perfect vehicle to communicate that having an Intel processor makes your computer smarter … If an Intel chip can turn Homer Simpson into a scholar, imagine what it can do for your PC."

Advanced Micro Devices Inc. (AMD) was one of Intel's competitors that was winning over OEMs and customers alike with its inexpensive chips. According to the National Post, AMD controlled 50 percent of the chip market for PCs costing less than $1,000 by 1998, and it was supplying chips for the consumer computer lines at OEMS, such as Compaq, IBM, and Packard-Bell, that had previously been Intel's exclusive domain. Part of AMD's strategy was to make consumers aware of its offerings. In 1996 the company launched a television campaign with the tag line "amd@work." Created by Hill, Holliday, Connors, Cosmopulos, the spots detailed how AMD chips "make the technology that people use today more affordable, more powerful, easier to use," an AMD spokesperson told Advertising Age on October 7, 1996. In May 1997 AMD announced that it would price its chips 25 percent below the cost of a comparable Intel microprocessor. In 1998 AMD aired humorous spots that demonstrated the 3-D capabilities of its chips.

Cyrix, a unit of National Semiconductor Corp., also gained a foothold in the low-end computer chip market. In November 1998 Cyrix inaugurated its first branding campaign. As its focal point, Cyrix stressed its cheaper prices and positioned itself as an egalitarian product. The print and television campaign "intended to let consumers know that Cyrix is enabling the PC manufacturers to deliver high-performance computers … for well under $1,000," Cyrix's director of advertising told the November 2, 1998, Brandweek. The ads, which were designed by Goldberg Moser O'Neilland targeted first-time PC buyers, used bold drawing done in the Russian constructivist style to augment the campaign's tag line "The Liberation of Information." One print piece, "Liberty and Access for All," made its proletarian pitch: "Gen X-ers, empty nesters, boomers, cocooners, closet capitalists, web surfers, gainers, educators, unite."

In addition to this pressure at the less expensive end of the market, Intel also encountered more aggressive marketing from one of its high-end competitors, Apple Computer. After breaking out of its long slump, Apple debuted three competitive ads in March 1998. Crafted by TBWA Chiat/Day, these spots directly attacked the Pentium II. In one, a man wearing a suit identical to those of Intel's "Bunny People" has to be hosed down. As he looks at the camera with smoke pouring from his helmet, the voice-over (performed by actor Richard Dreyfus) declared, "Apple Computer would like to apologize for toasting the Pentium II processor in public." Apple claimed its G3 chip, which was a joint project between Apple, IBM, and Motorola, was twice as fast as the Pentium II. "Apple has to make some very strong product statements here," a company executive told the Wall Street Journal on March 26, 1998.

MARKETING STRATEGY

Intel selected television as the means to convey the message of "Time." Since the company sought to reach a mass audience, it selected an array of programs, ranging from The X-Files to major sporting events to late night chat shows, on which to air its spots. To heighten the impact, the campaign debuted during the season premieres of heavily watched shows such as NBC's Thursday night titans Seinfeld and ER. The company also used web banner ads to spread its message. These efforts featured a slow moving download screen similar to the television executions.

Intel's goals for the campaign were two-fold. Since the company wanted to drive sales for the Pentium II, the product's name featured prominently in the tag line in each commercial. On the other hand, because Intel was increasingly under siege from competitors who sold bargain chips, Intel needed the campaign to reinforce its overall branding message. Therefore, while the commercials used the speed of the Pentium II's as a specific product selling point, the implicit message was "to educate our consumer audience about what role the processor plays in their PC and the value of it," Joanne O'Brien, Intel's manager of consumer advertising, told Brandweek on October 26, 1998.

Ever since Intel had first ventured into consumer advertising, it was faced with a challenge. Because its chips grew exponentially more advanced every few months, Intel was continually in the midst of introducing a new microprocessor. Its advertising had somehow to cultivate consumers' desire for the latest and fastest chip. As the September 15, 1997, Advertising Age explained, "Intel's future depends as much on marketing as it does on technology … it must continue to create demand for its ever-faster chips." "Time" strove to incite this demand. By presenting the problems of the technical world in the "real" world of the commercials' soccer game and skydiving, Intel sought to make the speed of one's processor less a concept of computing and more about computing's growing power over life. The divide between reality and virtual reality was blurred in the spots. The campaign's chief goal was to encourage viewers to feel a sense of concern over matters technical, and then to find a solution in the message of the ads. "Time" worked to make consumers "feel comfortable with a … product that was impersonal," according to USA Today.

OUTCOME

Intel expressed satisfaction with "Time." The humorous vignettes combined with Intel's persistent use of the "Intel Inside" tag line, helped fuel sales of the Pentium II. In addition, the campaign was credited with reinforcing the Intel brand before an even more massive launch campaign—the one for the Pentium III microprocessor early in 1999.

"Time for a Pentium II Processor?" was also quite well-received by its target audience. Consumer surveys revealed that the "Time" ads were the best-liked advertising Intel had ever released. Moreover, advertising critics were enthusiastic. While many of Intel's previous efforts had been soundly panned within the ad industry, "Time" spots received plaudits from advertising critics. Advertising Age 's Bob Garfield praised the campaign on September 28, 1998, for focusing on the product and successfully distinguishing its from its competitors. "Anyone who has ever tried to multitask or download video understands" the spot's moniker, he noted.

FURTHER READING

Beatty, Sally Goll. "Apple's Ads Scorch Intel Bunnies." Wall Street Journal, March 26, 1998.

Garfield, Bob. "Intel Downloads Chip Woes into Real World." Advertising Age, September 28, 1998.

Goldfisher, Alastair. "Intel Plants New Brain in Homer: Chipmaker Latest to Air Consumer-Oriented Commercials." San Jose Business Journal, November 9, 1998.

Goldman, Kevin. "Computer Companies Try TV Ads' Mass Appeal." Wall Street Journal, September 20, 1994.

"If Only Homer Simpson Had a Brain! It Happens, in New Intel Campaign." Brandweek, October 26, 1998.

Johnson, Bradley. "Advanced Micro Devices Spreads Word on Its Chips." Advertising Age, October 7, 1997.

??????. "Challenge for Intel: Boosting Tech Market." Advertising Age, September 15, 1997.

??????. "Computer World's Task: Sell 1 Brand to 2 Targets." Advertising Age, October 7, 1996.

McLuhan, Robert. "Speed Is the Issue for Intel." Marketing, December 3, 1998.

Nguyen, Peter. "Short Cuts." Orange County Register, October 11, 1998.

Piller, Charles. "Intel's Dominance under Siege." National Post, February 26, 1999.

Wells, Melanie. "Toon Town Takes Over Baby Boom." USA Today, November 4, 1998.

                                          Rebecca Stanfel

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