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

2. • Founders: Gordon Moore, Robert Noyce
• Founded: July 18, 1968
• Headquarters: Santa Clara, California
• Largest Semi-Conductor Chipmaker based on
Revenue

3. 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

4. Product Mix
&
Industrial Marketing
Environment

5. 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

6. The Interface Level

7. 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

8. Seller’s Interface
Intel BuyersSuppliers
Raw Material
- Silicon
- Copper
- Plastic
Capital
- Vanguard Group, Inc
- State Street Corp
- BlackRock Fund Advisors

9. 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

10. Market Segment
Intel
Facilitators
Buyers
Market
Segments
Suppliers
Competitors
- AMD
- Nvidia
- Texas Instruments Inc.
Market Share
PC => 79.3%
Mobile PC => 84.4 %

11. Publics

12. Financial Publics
• Institutional ownership : 64.65%
• Total value (Millions) : $ 113,932/-
• Major Investors: Barclays Global Investors UK Holdings group,
Vanguard Group Inc.

13. 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

14. 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

15. 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.

16. Macro-Environment

17. 6 Major Factors affecting Intel

18. Economic Factors
Product demand
• Customer product needs
• Competitors pricing
• Tax rates
• Standard of living
• Market acceptance

19. 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

20. 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

21. Technological Factors
• Complex process of producing integrated circuits
• Response to technological and market developments
• Third party threats
• Process of Transition

22. Demographic Factors
Increasing
population
Age
discrimination
Booming IT
sector

23. Industrial Marketing Strategies

24. Industrial Environment Marketing Strategies
• Independent Strategies
• Cooperative Strategies
• Strategic Manoeuvring
24

25. 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 .”

26. 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

27. Intel’s Cooperative Strategies
“Strategies involving cooperation with industries, firms,
groups etc.”
Intel’s Strategy
Ingredient Branding
Strategy
Association with
publishers & media

28. 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)

29. 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.

30. Government Regulations on I.T. and Hardware
equipment

31. 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

32. 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.