AMD hires Burnett for China

AMD, the world's second-largest chip maker, has hired Leo Burnett to handle its creative business for Greater China, where it faces a formidable competitor in Intel.

Burnett's appointment follows AMD's late 2005 launch of a Greater China office, based in Beijing. Burnett pitched against Dentsu, Bates and several local shops, while Carat China has the media brief. "With Burnett's expertise, we are expecting to lift AMD's brand awareness and shake up the China market in 2006," said Clare Long, AMD China corporate marketing specialist. Burnett's Beijing managing director Benjamin Tsang said AMD would work on addressing low brand awareness in the three Greater China markets, having sufficiently differentiated its products and technology from its key rival. Tsang said AMD was sharpening its image to capitalise on promising growth opportunities offered by China's low PC penetration, estimated at just four per cent last year. "AMD is not only enhancing its profile within the market, but also establishing strong relationships with several key computer manufacturers. The agency's core objective is to further strengthen and grow AMD's presence by developing brand communication strategies within China," he said. AMD's previous China relationship ended last year when McCann Erickson won Intel's global AOR. AMD faces an uphill climb in China at a time when Intel is re-inventing its brand to capitalise on its 20-year history in the market. Over the years, Intel has invested US$1.3 billion on R&D in China, has sales coverage of 400 cities, and earned more than $4.6 billion from China in 2004.