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
- 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
- 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
- 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.
- 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
- 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.
Editor's Notes
- Good Morning ! Everyone In today’s competitive market, if a firm wants to achieve success and survive, then Environment Scanning is one of the important activity that it needs to do. Thereby We will portray the industrial environment of Intel Corp.
- 3D robotics US based Company
- The interface level involves those key participants who immediately interface with an industrial firm to support in production, distribution and purchases of a firms goods and services. There are 4 key participants – The Buyers,Suppliers,Faciltators and market segment
- Based on the distinctive nature of industrial market a firm may view itself as a industrial marketer, a competitor, distributor or a input supplier As intel provies components to PC manufacturers,hence Intel project itself as a input supplier to these Buyers Intel Buyers can be largely classified into – OEMs – one who use intel products in their finished products . Examples of OEM’s are HP, dell Ibm ODM’s- which are much similar to OEM’s but only difference is that they design products according to consumers specifications.ODM’s example are Quanta and SuperMicro which make servers for big giants like Facebook and amazon Users – Google is the only company which directly incorporates the intel products to use in its servers. The last Distributors- Intel has a wide geographical netwotk of distributors who supply processors to the mass market http://www.maltiel-consulting.com/google-facebook-top-buyers-of-intel.html http://www.differencebetween.net/miscellaneous/difference-between-odm-and-oem/
- Intel being the processor chipset manufacturers procures only some raw material likes silicon copper and plastics from its suppliers and all other components are manufactured by intel itself Intel has number of investors which supplies funds to intel http://investors.morningstar.com/ownership/shareholders-major.html?t=INTC
- Facilitators are the ones who facilitate the working and promotion of any firm There are 2 ways – First is how other firms facilitates intel - Advertising agencies like Venables Bell and partner manages all the advetisements - Intel Promoters which are its OEM’s who are required to mention the intel inside in all their TV commericials Book http://www.intelcapital.com/in/advantage/our-focus.html Manufacturers rep Distributors Banks and Insurance Companies
- http://en.wikipedia.org/wiki/Intel
- Wee directive needs to be followed In
- Maneuvering: guide to manipulate and change to achieve till the end.