Shobhit Shrivas IIT MADRAS

Market Segment

Intel

Facilitators

Buyers

Market Segments

Suppliers

Competitors - AMD- Nvidia- Texas Instruments Inc.

Market Share PC => 79.3%Mobile PC => 84.4 %

Product Mix &

Industrial Marketing Environment

Product Mix of INTEL

Processor Mobile Devices Networking Products

Intel-Atom-Processor-Z3570

Value Processor

Intel Core

Chipsets

Controllers

Adapters

Boards

Galileo

Edison

Intel-Atom-Processor-Z3736F

Intel-Atom-Processor-Z3530

Intel-Atom-Processor-Z3736G

Intel Xeon

Intel Quark

Pentium

Celeron

Switches

Optics

Cables

Workstation Server

Server Chipset

PC Chipset

Server Products

RAID

Server board

I/O device

Intel in Microprocessors

1971: Intel 4004 1972: Intel 8008 1974: Intel 808 1978: Intel 8086 y 8088

1980 “Project Crush” + Design wins (Intel + IBM)- IBM open standard- Success in format war- Being a free rider by design wins

1983 License control- Restrict licenses to four company- More design wins and more revenue- Set up the industry standard

Platform building: x86

1982: Intel 80286Second-source strategy

1985: Intel 80386 1989: Intel 80486Sole-source strategy: becoming proprietary

Tom Dunlap, senior vice president and general counsel

Intel vs. AMD“AMD’s products were big, ugly, and late.” (mid-1980)“By the Pentium generation, AMD couldn’t get any trade secrets and couldn’tcopy our microcode, so our products developed quite differently.” (1995)

1991: AMD AMx86 1996: AMD K5

1996: AMD K6 y AMD K6-2

1999: AMD Athlon K7(Classic y Thunderbird)

1993: Intel Pentium 1995: Intel Pentium Pro 1997: Intel Pentium II 1999: Intel Pentium III

Industrial Marketing Strategies

Intel Inside Campaign (1991) “To educate both the retail sales associates and the

consumers about the value of Intel microprocessors, and to explain to them the differences between the

microprocessors.”Campaign Highlights:

Association with 200 OEM’s for Brand Recognition.1st Trademark in the Electric Component Industry.“Intel Inside” aka Quality & Reliable product for Buyers.

5 years later:Intel’s link with World Market Leaders : COMPAQ, IBM !

Current Scenario: Brand value quantified at US$35 billion (Initial investment

US$3.4 billion)

1990 Success marketing: the “Red X” campaign specifically against AMD, and the“Intel inside” end-user branding and advertising program to OEMs.

Success in microprocessors

Dennis Carter, head of corporate marketing

Pentium bug: good response to product flaw and effective end user promotion

Architectural competition: RISC vs. CISC (Intel)

1994

1990-1995

Intel inInternet Market

Becoming the builder of the Internet

Intel invested a large amount in such a short time, but not matured enough for the new competition and newbusiness. However, it could have been worse if Intel did do so.1. There was a recession and decreasing on world

PC microprocessor revenue .2. The competition in new business was even stronger

than its core business .3. Internally, Intel had a series of implementation errors

(p.15).2001-2002 Intel shut down businesses ranging from Web hosting, network switching,

and network appliances to Intel consumer products. Barrett introduced a back-to-basics program to achieve operational excellence.

Why?

Technology Strategies Maidique and Patch (1978)

DRAMs Microprocessors Internet

First-to-Market or Leader Strategy

Intel Lead Intel Lead Protecting PC and server platforms

Second-to-Market or Fast Follower Strategy Beat by Japanese Block

Establishing new standards in network and communications (WiFi)

Late-to-Market or Cost Minimization Strategy

No complimentaryassets Run and block ?

Market Segmentation or Specialist Strategy

Lost the marketIntel got the lead for segmentation (brand value)

?

Macro-Environment

6 Major Factors affecting Intel

Economic FactorsProduct demand• Customer product needs• Competitors pricing• Tax rates• Standard of living• Market acceptance

Ecological Factors

Design semi-conductor keeping environment in mind

Responsible operations(supply chain)

Engaging employees to reduce impact

Recycling- Follows WEEE directive

Chip life extended up to 10 years

Technological Factors

Complex process of producing integrated circuits

Response to technological and market developments

Third party threats

Process of Transition

Conclusion:

A product is a bundle of utilities consisting of various product features and accompanying services.

Intel, by with the help of it’s product knowledge, marketing strategies and by innovatively changing the features and product according to the advance technology requirement is the leading brand in the technology segment.

DISCLAIMER

Created By Shobhit Shrivas, IIT MADRAS

during Marketing Internship under Prof. Sameer Mathur, IIM Lucknow