IBM Begins New Branding Strategy

IBM, hoping to flag its presence as a behind-the-scenes maker of semiconductors, hard drives and other hardware products, will include an “IBM Technology” logo on Nintendo’s Gamecube this fall as part of a new ingredient branding strategy.

In addition to Gamecube, which sports an IBM Power PC chip, the IBM logo will also begin to appear on handheld computers, cell phones, set-top boxes and other products that use IBM chips, a company rep said. IBM launched its original equipment manufacturing (OEM) business in 1993. OEM business last year accounted for $10 billion of IBM’s revenues.

Chip maker Intel pioneered the strategy of so-called ingredient branding in the computer category with its “Intel Inside” program in the early 90s. Lee Green, IBM’s corporate dir-identity and design, said the program is different than Intel Inside because, for one thing, IBM won’t be paying its OEM customers coop dollars, as Intel does.

“Our customers value and appreciate the value of the IBM name and hope to leverage that,” Green said.