AMD: Setting the Brand on Fire

May 15, 2008

Advanced Micro Devices (AMD), known for its Opteron microprocessors, is extending its brand into the computer market. Targeting small and medium sized businesses, AMD is attempting to revitalize lost market share from rival Intel. After six consecutive quarters of losing market share to this formidable competitor, AMD needs to recognize the urgency to revitalize its brand.

If marketed effectively, this new product line could be a decisive factor in elevating AMD’s brand image in order to out-distance Intel, which currently outshines AMD with over ten times the brand equity as a percent of market cap.

One main factor for AMD’s low brand equity is a lack of familiarity among consumers. The company has, unfortunately, never been known for effective ad campaigns, and it needs to understand just how important direct marketing can be for brand building. Intel, which is not even the industry leader in brand equity, aggressively shows consumers why its brand is worth the investment. Everyone remembers the Intel Pentium TV ads featuring the Blue Man Group.

A lackluster past should compel AMD to consider modifying its present image and begin to show potential consumers why its new product brand is a valuable commodity. There is a pressing need for building and leveraging AMD’s brand through an innovative investment in branding. In a consumer market where businesses ceaselessly replace computers en mass every few years, AMD has a prime opportunity to capture market share over present competitors that market only chipsets rather than the full computer.

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