Intel Industrial Mktg.

8/14/2019 Intel Industrial Mktg.

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Industrial Marketing

Prepared By:-Raval Chandrashekhar RDBIM-SURAT2008-10

Place and Promotions Strategy


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INTRODUCTION

Integrated Electronics Corporation (Intel Co.Ltd.)

World's largest semiconductor chip maker

Started as a memory controllers company andswitched to microprocessors

Unprecedented growth in PC market guidedIntel to change its business operations anddomain

Intel is a known household name today


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Introduction Contd

Founded in 1968 with primary emphasis onproducing semiconductor memory formainframe computers and minicomputers

Began developing microprocessors in early

1970s Secured contract to provide microprocessors

for IBM personal computers in 1980


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OMPANY PROFILE Established in 1968 by three engineers to develop

.technology for silicon based chips (This led to the formation of Intel Integrated

)Electronics ,Main buyer was Busicom a Japanese company that

.manufactured calculators , 4004 world s first microprocessor chip made by

Intel was released in 1971 ,After the success of 4004 Intel released the 8008

,microprocessor in 1972 which was used in a PC- .called Mark 8

- .Released 8080 in 1974 and 8086 8088 in 1978 the

later was chosen by IBM to make new PCs and itbecame a huge success ,This was followed by the release of 80286 which

was the first processor that could run programs.written for its predecessor


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Breakthrough Moments for INTEL

Started marketing computer chips directly toconsumers, instead of design engineers, in1988 Red X Campaign

Created umbrella brand for successiveproducts Developed two generations of chips at the

same time

Initiated very successful co-opperativeadvertising program.

Introduction of Celeron brand for low-end PCmarket.


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Intels Core Competency

Intel Corporation has three elements of its corecompetency:

Underlying process technology

Being able to manufacture in high volume

Doing sophisticated high-volume design

This has helped the firm to achieve highbrand loyalty and growth in this segment, andhas made the leader in microprocessorsegment.


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Important Strategic Alliances

Emulex technology initiative for processors

Cisco networking expertise

DreamWorks for creating high end 3D animations

Oracle health care products

Nokia innovations in mobile computing devices,

combine the performance of powerful computers

with high-bandwidth mobile broadband

communications and ubiquitous Internet

connectivity.

Close partnerships with DELL, HP and Gateway


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Product portfolio and strategies

Processors (core processors,Core i3, i5 and i7 are thelatest)

Motherboards Networking Adapters for

wireless and Ethernetnetworks

Chipsets (enhancedcapabilities for audio, videoand communication)

Consumer Electronics mediaprocessing, demodulatorsand tuners

Software Products compilers,tune analyzers etc.

Storage devices

Health systems

Continuously innovate so asto make products hopbetween introduction and

growth stage Customized products Community PC (Intel India)

Earlier Supplier Involvement

High investment in R&D toimprove manufacturingprocess, to ensure speedof delivery to market

Adopts a preemptivecompetitive strategy.

Product Categories Strategies


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Promotional Strategies

Pull strategy Intel Inside Campaign

Global Events - Intel Developer Forum (IDF) & Intel Extreme

Masters

Corporate Responsibility Initiatives - Intel Teacher Programand Intel World Ahead Program.

Trade Shows - Computex in Taipei, Consumer ElectronicsShow s in Las Vegas etc.

Support Programs Intel Software Partner Program

Social Media Intel Blogs, Inside Scoop, Software Networkand Community Discussions


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CORE BUSINESS

MAJOR BUYERS

evelop technology for silicon

(USICOM JAPANESE CALCULATOR MANUFACTURING - ( )ARK 8 WORLD S FIRST HOME PCALTAIRIBM


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HY BRANDING INTEL??

o create awareness among PC users about Intel and its.roducts ost PC users were not even aware of the availability of-dvanced processors and their cost saving performance ,his realization was inspired by Moore s Law whichtated that the number of transistors on the

icroprocessors roughly doubles every 18 months to two .ears ,nitially interactive marketing and B2B interactions.ncreased customer awareness among business users .reating a strong brand to communicate with the consumers o present the microprocessor as a key component and not

.ust a component in the computer


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LEMENTS OF MARKETING INTEL


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HE BUNNY PEOPLE

romoted Intel s MMXechnologically featured( )eople bunny people

ompany s chief executive was.lso a part of it Thisortrayed that employees atll levels were equally.ommitted to innovation

,atchy unusual campaign wentn to become the most well.emembered advertisement


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NNOVATIVE ADVERTISING


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NCREASING BRAND VALUE

ntel Inside Program to promote and support-commerce marketing activities undertaken.y computer manufacturers - -ntered tie ups for innovative web based.arketing and sales deals ,y doing so it marketed its chips as aomponent brand during online PC purchases.hroughout the world , - ,old merchandise such as books T shirts, .ens etc through its website to popularizehe Intel logo ,et up the Intel Inside Online Network a-eb based tool that managed businessransactions related to the company s coop.dvertising program


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NTEL S BAD FORTUNES


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ROBLEM INITIATION FOR THE COMPANY 21ST CENTURY

blicity for Intel due to complaints of abusive marketing pr

.ed to virtual stranglehold on the microprocessor market

tage of this situation by increasing its focus on marketing

MD launched a multimedia campaign similar to that of Intel

ssors were reasonably priced and were of competitive qualit


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HE ROAD AHEAD.nteractive marketing to increase and sustain business users

/or investments in R D to make new technologically advanced produ

s on high quality products and process and communicating the same

er involved with the company by increasing interaction through medi

- .arket research to understand the needs of the customers


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Customers Original equipment manufacturers (OEMs) and

original design manufacturers (ODMs) who makecomputer systems, cellular handsets andhandheld computing devices, andtelecommunications and networking

communications equipment.

PC and network communications products users(including individuals, large and small businesses,

and service providers)

Other manufacturers, including makers of a widerange of industrial and communications

equipment.


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Distribution Channel


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Distribution Channel

Partners with VARs (Value Added Resellers) - For instanceCore Corporation is leading VAR in Japan for Intel

Helps in recruiting Deployment Value Added Resellers

IPDs (Intel Product Dealers)

Programs for channel members - Intel Channel Partner Program - The Intel Channel Conference

SCQI (Supplier Continuous Quality Award) is awardedevery year to motivate quality from suppliers


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Achieving Supply Chain Efficiencies

Addressing uncertainty based on a planning approachconsisting of three methods; the Product TransitionIndex (PTI), the Transition Playbook, and the TransitionDashboard

Efficient capacity planning

Open architecture standard called OPENSTAR* forsemiconductor test equipment is used.

Unified global procurement solution.

Use of automated data systems and tools - RosettaNet


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Pricing

For its Premium Customers like Dell it provides its

new technology exclusively to them and not to any

other manufacturer so that they can have better

market grip, for this Intel charges huge premiums

from them.

Intel trims the price of its older generation product

lines while introducing a new product so as to

move out its inventory of older version and gives

the product a death before it reaches to decline


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Pricing

Pays rebates and financial incentives to OEMs and dealers to

push Intel products. Intel Has been once accused of

making such payments illegally by AMD.

Pricing is strongly driven and influenced by competition from

AMD specially in markets like US where AMD has a

stronger grip- Evident from the price cut initiatives taken

by company in mid 2009. The prices of five different

versions of the Intel Core 2 Quad processor were cut by as

much as 40 percent.


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Empowered employees and training

Intel University - training courses offer in-person and online opportunities for learningand applying new skills.

Tie ups with universities for carrying out R&D - ParLab at UC Berkeley - UPCRC at Univ. Illinois - Intel Visual Computing Institute at

Saarland University

Research@Intel Day - A yearly programconducted to display newer technologies onwhich personals are working.


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Strategic Mapping Intels strategy is to be at the heart of new

developments in home entertainment,security, medical care, etc.

In te l


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INTEL AND ITS B2B STRATEGIES

PlacePlace

B2B project structure

Intels Initial E-business project structure was

more off based on order takings on phone and

face to face.

Intel created a self-service extranet called E-

business program. Access to the site wasrestricted to Intels authorized business

partners and customers.


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INTEL AND ITS B2B STRATEGIES

PLACEPLACE

E-business strategies

Broaden and deepen sales outreach- Borderless World on

web.

Target middle tier for better efficiency.

Improve customer service by delivering personalized

information

E-business infrastructure

Servers

OS and Databases

Application development


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INTEL AND ITS B2B E-BUSINESSSTRATEGIES- PLACE

Results

Intels Web orders replaced non-Web orders Intels network infrastructure improvements in

the year 2000 made it one of the best

efficient and secured E-Business Infrastructure

and resulting into more than 75% order

takings on its web-portal.

Today INTEL gets 100% of its orders on web.


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100%

80%

60%

40%

20%

0

1997 1998 1999 2000 2001

Non-Web Orders Web-orders


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Place- Distribution

Manufacturing Unit- Usually it places its manufacturing unit

considering the locations of its major suppliers like Dell and

HP but in many cases these firms have place themselves

near Intels manufacturing units. As both are highlydependent on each other for cost efficiencies.

Mode of Transportation

Air- When sending orders over the boundries Intel uses air

transports. It is no more interested in sea route because of

time factors.

Roadways- Where roadways is available and feasible it also

delivers through roadways. E.g US, and European countries.


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Few Must learn lessons from Intel

Tailoring to customers needs Complementing rather than cannibalizing

traditional ways of competing.

Anticipating changes and focusing oncontinuous quality improvement.


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LESSONS LEARNED AND SUCCESSFACTORS

Delivering personalized Web content Focusing on quality of connections with

customers and customer relationships.

Providing worldwide support and customertraining.

Designing good E-business architecture

Th k Y


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Thank You

Intel Industrial Mktg.

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