Nov
19
It didn’t have to happen this way. But Intel had embarked on a corporate branding program aimed at consumers without understanding the ramifications of its actions. The company had spent millions of dollars promising people that having an Intel inside their computers would make their machines, and by extension their lives, better. Once publicity and perception had compromised this promise, it was incumbent upon Intel to react immediately to redeem itself. Taking refuge in technical minutiae and engineering doublespeak wasn’t an option. Instead, Intel had to chart a course of
Groveling
Groveling mixed with effusive apologies
Immediate promises to make it all better
The ritual execution of several middle managers, if necessary
If absolutely necessary, the ritual execution of several selected members of upper management, up to and including the CEO (think Enron)
Intel could have saved itself tens, perhaps hundreds, of millions of dollars if the company had immediately offered to replace any “defective” chip, no questions asked. Far fewer people than the number who actually did ask for new chips would have bothered, but the hysteria whipped up by the whole mess roiled the market and raised awareness and concern over the issue.
Still, when it was all over, Intel seemed to recover rather nicely from the whole fiasco. In 1994, people were buying PCs like there was no tomorrow and Intel had the millions available to learn its lesson. These days, the company’s Web site brags that
“Today, the Intel Inside Program is one of the world’s largest cooperative marketing programs, supported by some 1,000 PC makers who are licensed to use the Intel Inside logos. Since the program’s inception in 1991, well over $7 billion has been invested by Intel and computer manufacturers in advertising that carried the Intel Inside logos. This has created an estimated 500 billion impressions, while building Intel’s worldwide name. Today the Intel brand is one of the top ten known-brands in the world, in a class with Coke, Disney and McDonalds, according to various rankings.”
It’s hard to argue with success like that! And, after all, though bunnies know how to multiply, whoever said they could count?
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