With the chipmaker weathering increasing competition in the microprocessor market from AMD and local players, the brand is eyeing such sectors as home entertainment and wireless as avenues for future growth.
Given Asia's propensity for rapid technological development, many believe that this approach is of particular importance in this region. Asia-Pacific accounted for 40 per cent of Intel's revenues in 2003.
"Overall, Intel's positioning works for emerging markets, which are more PC-centric," explained one source. "But given that emerging markets in Asia have shown an ability to leapfrog technological developments, it's time for Intel to compete outside the computer."
Intel recently reorganised its operations around five platforms - mobility, digital home, digital health, digital enterprise and channel products - in a bid to drive convergence of communications and computing. Together with its decision to jettison longtime ad partner Euro RSCG, these moves are believed to reflect Intel's desire to possibly overhaul its 'Intel inside' positioning. "Intel is at the crossroads, and 'Intel inside' has been used for 10 years," said another source involved in the review. "It is time for a change and Asia will be crucial because of the number of computers produced here."
Intel's key competitor is AMD, which is also expected to review its advertising account after news that its retained agency - McCann Erickson - is vying with DDB and a Young & Rubicam-led WPP team for the Intel business.
AMD unveiled its own brand campaign three years ago, and Carlyle Brand Consultants CEO Joseph Baladi believes that its impact may be being felt by Intel now.
"AMD is quite a tenacious brand," said Baladi. "It went through a full global brand positioning project three years ago, which is manifesting itself now."
In addition to AMD, Intel's main competition in the region comes from smaller local players, making commodisation a real risk.
"You have AMD on the one hand and a constellation of smaller players that are biting at the heels of Intel," said Baladi. "You've got a generic product, so (Intel's) massive market share could face dilution."
Baladi also points out that, in common with other ingredient brands, Intel will need to ensure that relationships with its corporate partners remain strong. According to one of the sources, this may not be the case.
"Relationships with corporate partners have been difficult in some cases, so now is the time to change the balance of power and the only way to do so is to strengthen the Intel brand," said the source.
"The challenge is to continue sustaining the relationships it has with host brands," agreed Baladi. "It needs to demonstrate it's worthy of that partnership role."