Intel Inside
Let's pretend it's 2002. Should Intel do a brand extension with Intel Inside into consumer electronics such as mobile devices and tablets?
The first question is, what does Intel Inside mean? The company built the brand to convey to consumers that their processors mean reliability and leading technology. Seeing Intel Inside was supposed to make buyers trust the product with an Intel in it more than a product without an Intel. But, do consumers care about that? I had not even noticed the Intel Inside logo on my Lenovo yoga, even though it is located right next to the arrow keys:
On the other hand, some reliability is key for consumers who are buying products with poor tech support, like phones and tablets. I would need more information on this to determine how the Intel Inside logo would change consumers' behavior in the target extension category.
How to determine if a brand extension will work:
Assuming customers do care what processor is in their devices, Intel would have to determine if a brand extension makes sense. According to brandextension.org, companies need to consider the following for a successful brand extension (I have paraphrased a bit):
1. Brands should not extend unless they are well known. Check. Intel was and is a highly recognized brand.
2. Brand extensions must be a logical fit with consumers' expectations. Check. Intel is a tech brand extending into another tech category.
3. Brand extensions must have leverage in the new category; Customers should be able to see the value the brand brings in the new category. This is where we are unclear on Intel - would consumers notice and care? According to @jnakul they would (see the portion of his post that deals with Motorola phones).
4. Brand extension should not confuse consumers. In other words, the brand's character or story shouldn't be lost. Check!
5. Brands should not be stretched in too many diverse categories. Check. At that point the Intel Inside logo was mainly being used in desktops and laptops. The case points out that there was risk of equity dilution, but I would argue that the brand was strong enough to extend to several more categories.
6. Brand extensions need to create positive synergy for the parent brand. Check. Intel positioned itself to be "the center of your digital world", which meant that if someone bought a laptop with an Intel they might be more inclined to buy a phone with Intel in it as well.
7. Every brand extension should open a new category. Check. Intel had 1% share of the cell phone chipset market.
(http://www.brandextension.org/principles.html)
Based on this list, Intel would be quite successful with a brand extension into consumer electronics such as mobile phones and tablets.