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Industrial marketing Strategies-Intel Case Study

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Industrial Marketing Environment- A case study studying various environment (external and internal) affecting company's strategies to target their customers in B2B environment.

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Industrial marketing Strategies-Intel Case Study

  1. 1. • Founders: Gordon Moore, Robert Noyce • Founded: July 18, 1968 • Headquarters: Santa Clara, California • Largest Semi-Conductor Chipmaker based on Revenue
  2. 2. Strength • Huge R & D Spend •Innovation •Market Leadership •Global Presence •Strong Tie ups Weakness • Highly Confined to PC Segment •Small existence in Mobile Processors Market Opportunity •Mobile Segment – Hardware as well as Software • Unmanned Aerial Vehicles (Drones) Threat • Lagging in Mobile & Portable Segment
  3. 3. Product Mix & Industrial Marketing Environment
  4. 4. 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
  5. 5. The Interface Level
  6. 6. Buyer’s Interface Intel Buyers Input Supplier Manufacturers (OEM’s) • HP , Dell , IBM Manufacturers (ODM’s) • Quanta, SuperMicro Users • Google Distributors • Processor Chipsets For Assembled PC’s
  7. 7. Seller’s Interface Intel BuyersSuppliers Raw Material - Silicon - Copper - Plastic Capital - Vanguard Group, Inc - State Street Corp - BlackRock Fund Advisors
  8. 8. Facilitator’s Interface Intel Capital - 1250 companies in 52 countries - Building Technology Ecosystems Developer Tools - Intel XDK Advertising Agencies - Venables Bell & Partner Intel Promoters - OEM’s “Intel Inside” Intel Buyers Supplier s Facilitators
  9. 9. Market Segment Intel Facilitators Buyers Market Segments Suppliers Competitors - AMD - Nvidia - Texas Instruments Inc. Market Share PC => 79.3% Mobile PC => 84.4 %
  10. 10. Publics
  11. 11. Financial Publics • Institutional ownership : 64.65% • Total value (Millions) : $ 113,932/- • Major Investors: Barclays Global Investors UK Holdings group, Vanguard Group Inc.
  12. 12. Independent Press • Intel developing voice-embedded software in local Indian languages -by Press Trust Of India, Jun 05, 2013 • Overheard: More Chips on Intel -Wall Street Journal, Jan 16, 2015
  13. 13. General Publics For an Industrial marketer like Intel, the demand for its products by the customers depends directly on the final demand by the end user, thus general public satisfaction also plays an important role. Vigyaan Yatra, UP, India Educating India campaign by Intel
  14. 14. Internal Publics • Intel believes that employees are the company's assets and thus on a regular basis, it comes up with different programs which help employees enhance their talent. For example: • ‘Aarambh’ - wherein managers are made to interact with the newcomers; • ‘Anubhav’ - an experiential learning program; • CAIR (Careers At Intel Realised) Fair - where employees are provided with resources, tools and support to work on areas they are passionate about.
  15. 15. Macro-Environment
  16. 16. 6 Major Factors affecting Intel
  17. 17. Economic Factors Product demand • Customer product needs • Competitors pricing • Tax rates • Standard of living • Market acceptance
  18. 18. 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
  19. 19. Physical Factors • Obtaining the resources or products • Subject to theft, loss or misuse of personal data and components • Risks of global operations • Employees: Hardware and Software Engineers
  20. 20. Technological Factors • Complex process of producing integrated circuits • Response to technological and market developments • Third party threats • Process of Transition
  21. 21. Demographic Factors Increasing population Age discrimination Booming IT sector
  22. 22. Industrial Marketing Strategies
  23. 23. Industrial Environment Marketing Strategies • Independent Strategies • Cooperative Strategies • Strategic Manoeuvring 24
  24. 24. Intel’s Independent Strategies Competitive Aggression Product Differentiation Speed, innovation & manufacturing techniques Competitive Pacification Improving Competitive Relations Implicit Cooperation Technology Leadership “Strategies to reduce environmental uncertainties using its own resources & ingenuity .”
  25. 25. Political/Legal • Indirect Lobbying • Anti- Trust regulatory issues (May 2009) Resource Supplies • Resolution of irregular demand • Vendor Managed Inventory (VMI) Publics • Corporate image advertising • Commitment to interest groups
  26. 26. Intel’s Cooperative Strategies “Strategies involving cooperation with industries, firms, groups etc.” Intel’s Strategy Ingredient Branding Strategy Association with publishers & media
  27. 27. 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)
  28. 28. Intel’s Strategic Manoeuvring “Strategies that are designed to alter or change the firms relationship with respect to its interface environment.” • Domain Selection • Discovery of new markets with limited regulations & competitions. • Example: Intel’s R&D in Drones & Intel Atom for Smartphones. • Diversification • Geographic Expansions.
  29. 29. Government Regulations on I.T. and Hardware equipment
  30. 30. Court Cases against and by Intel • Intel v/s Independent Indian Tech firms • Intel and its subsidiaries taken to Competition Commission of India in 2011 • Ruled in favour of Intel in 2014 • European union imposed a fine of $1.44 billion on Intel in 2008 and the ruling was sustained in 2014
  31. 31. Conclusion • Survival of Intel through thorough search of Macro-Environment • Introduction of new opportunities due to opening up of new markets. • R&D partnership with Ascending Technologies, Germany may lead to change of market dynamics.

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