For decades, Intel symbolized innovation and reliability. Its iconic “Intel Inside” campaign didn’t just sell microprocessors… it made Intel a household name. The strategy positioned the company as an aspirational ingredient brand – an emblem of quality – that audiences actively sought in their devices. Yet, fast forward to 2024, and Intel’s story is one of waning influence.
Significant losses and leadership upheaval.
Pat Gelsinger, the company’s now-former CEO, resigned this week after a contentious board meeting… leaving a legacy of ambitious goals, unmet.
And the once-unassailable icon – faltering in its ability – to defend a promise.
The opportunity to analyze: How a brand with such market dominance lost its lofty posture. But perhaps most importantly for sales and marketing leaders in this channel, what can builder products brands learn from Intel’s experience?
A Fall from Grace
Under Gelsinger’s leadership, Intel launched an aggressive turnaround plan in 2021… aiming to recapture its crown as a leader in semiconductor manufacturing. The roadmap was ambitious: Regain technological superiority. Establish a profitable contract manufacturing business. And compete with AI chip leaders like Nvidia.
These aspirations came at predictable costs. Both financially and reputationally.
Yet these plans were not obscure. Capital investments aligned with an expanded workforce. And innovative approaches to core products. Instead, margins sank, contracts were lost… and progress on key projects lagged.
Challenger brands surged ahead in the same economic conditions.
Dominating the AI and chip sectors… where Intel sought to make inroads.
Lessons for Building Product Brands
It’s clear that building product brands, face similar challenges to maintain relevance and market leadership. Here are four key takeaways from Intel’s decline for building materials marketing:
1. Don’t Rest on Legacy Success
Intel’s branding dominance through “Intel Inside” was groundbreaking… but the company failed to sustain the innovation that made the campaign resonate. Likewise, building product brands must continually evolve their offerings. A strong legacy can provide a foundation — but relying on past achievements is not enough – in a competitive marketplace.
For example, manufacturers of cabinetry or countertops cannot depend solely on heritage or a legacy of craftsmanship. Brands must address evolving customer needs, such as sustainability and wellness as well as smart home integration to stay relevant.
2. Match Ambition with Execution
Gelsinger set lofty goals for Intel but struggled to deliver results. Overpromising – without a clear path to execution – damages credibility.
Building product manufacturers often face a similar pitfall when introducing new technologies or installed building products. While it’s tempting to market transformative solutions, those claims must be backed by realistic timelines. Incremental milestones. And measurable outcomes. Clear communication with stakeholders – contractors, specifiers and end users – ensures expectations are managed.
3. Adapt to Market Changes
Intel underestimated the speed and impact of channel shifts… most noticeably in their case, the rise of AI chips and supply chain/contract manufacturing. In building materials, market trends such as the rise of prefab construction, demand for energy-efficient materials, or multigenerational lifestyle solutions require manufacturers to stay nimble.
Consider the rise of modular home components. Brands slow to enter this market may find themselves sidelined… as competitors gain traction to growing segments of environmentally conscious influencers.
4. Align Leadership with Strategic Vision
A concise, unified vision is crucial for navigating transitions. Intel board’s discord – and Gelsinger’s inability to frame mutual expectations – is clear in this week’s results. For building product brands, leadership teams must be aligned on sales and marketing goals… from expanding into new markets, to evolving models and manufacturing capabilities. The entire supply chain must be working toward the same objectives.
Rebuilding Confidence
Intel’s story underscores the difficulty of regaining trust… once it’s lost. Building product brands must remain vigilant. Especially as they evolve. Whether launching a revolutionary product – or reinforcing a market position – brands must prioritize consistency, innovation and responsiveness.
Intel’s fall also serves as a reminder of the power of branding. The company’s early success was driven by its ability to position itself as a symbol of quality and innovation.
Building product brands too must understand that their reputation is more than just the products they sell. Rather, it’s all about the promises they make.
As Intel searches for its next CEO and attempts to rebuild, it faces an uphill battle to reclaim its status. For building product brands, the lesson is clear: Innovation, adaptability, and execution aren’t optional.
They’re essential to staying on top.
If you’re interested in aligning your sales and marketing leadership or how to grow as a better “challenger brand” in the marketplace, we’re here to help. Download our white paper and send an email to Steve at sk@kleberandassociates.com to get the conversation started.
