Intel will spend $2 billion on selling new look in 2006

INTEL is to spend $2 billion (£1.16 billion) on a global advertising campaign in 2006 which will see the technology group dump one of the world's most famous logos.
The group, which is based in California, says that it needs a new look because it no longer wants to be seen as a business that only makes computer processors. Intel wants to sell consumer electronics, wireless communications and healthcare. It also wants to create all kinds of chips and software, not just microprocessors.
The revamping of Intel's image will include a redesign of the logo, with the words "Intel Inside" replaced by "Leap Ahead". The new livery will be revealed to the public on Tuesday.
Intel refused to divulge which agencies have won the advertising contract.
The group is also planning to phase out the familiar Pentium brand, replacing it with a series of new brand names, including Viiv, the name of a new chip for home computer users to download films.
Intel declined to comment on the cost of replacing the logo but insisted that it is just a "small part" of its planned advertising and marketing spending in 2006. Advertising industry sources said that the rebranding might cost tens of millions of dollars.
However, some Intel shareholders have questioned the group's decision to change the familiar logo.
Samuel B Jones, chief investment officer at Trillium Asset Management, a leading Intel shareholder, said: "I understand why Intel would want people to understand that their focus is not just on PCs, but why abandon the existing branding? They have huge recognition globally and I'm not sure they need to go this far."
Another reason for the re-branding could be an awareness that growth in PC sales is slowing and sales of handheld devices and mobile phones are on the rise. Revenue growth at the group is forecast to be slower next year.
One step in the group's marketing strategy was the hiring of Eric Kim, who was poached from Samsung a year ago to be chief marketing officer. Mr Kim had led Samsung's marketing since 1999 and helped build the Korean maker of consumer electronics, mobile phones and computer chips into a well-known global brand.