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Intel - The Inside Story
urfing through online videos you might bump into this one: A kid hanging a PC from a hanger. tied to a long rope on his windowsill. Lightning strikes and blows it up. Don't be surprised^—it's just a kid being creative in the Intel viral marketing campaign. The campaign runs 7 0 / ways to get rid of your old PC—so your mom or boss can buy vou a new one with core 2 duo. 'This is one of Intel's marketing strategies for the eore 2 duo proeessor. In tune with its online marketing program, it foresees a separate website for Intel India, grabbing attention with Intel advertisements leading them to localized content. While spreading the marketing tentacles offline, Intel is closely following the 4Ps of marketing-Product, Price, Plaee (distribution) and Promotion. Place: Making Inroads "Unique to India is the Plaee—the distribution channels. And over the years we have developed dealer consistency establishing a unique breadth in the market," says John McClure, Director-Marketing and Operations for Intel, South Asia. The fragmented Indian market compels companies to go through channel partners to make inroads. With over 3000 active channel partners, Intel has penetrated more cities than competitors. They constantly work with channel partners by giving them good products and increase their margins. Intel acts as a partner with dealers giving them cover for their marketing and advertising eampaigns. They conduct training sessions for these dealers twice a year to reduce the dealers' cost of staff training. The 'Genuine I n t e l Dealer' (GID) cert i ficat e
provided at the end of the trainings acts as an accreditation. "Competitors do it only when they have money. We are consistent with our products and trainings," informs McClure. Tie-ups with OEMs like LG, Zenith, Lenovo, HCL and Wipro Technologies to sell their products—helped Intel reach a larger market. Companies in turn develop their own brand value and get support with their sales and marketing programs from Intel. Products: Pushing The Envelope Added to these marketing strategics. Intel's India Development Center develops products specific to the Indian continent. For example, for rural areas it has developed a eommunity PC that can function in hot and dusty conditions and runs on a car battery for eight hours. They have an in-built remote management system to save on the cost of a meehanic. "Indians want the best technology for every penny invested. They demand a full system at the price of Rs. 10,000," assesses McClure. This led to the development of the 'Affordable P C , lookitig more like a DVD
"There is an increased flow of money for marketing. And we have to innovate to share the marketing voice,"
John McClure. Director - Marketing and Operations for Intel, South Asia.
player, having a mobile proeessor. Size, power consumption and noise were minimized with this product. For the future, Intel has designed a new product—Classroom PC, aimed at public school students to communicate faster with eacb other.
The plan includes the donation of 10. where students be creative and post online videos spreading the word." says McClure. • There was a drop In market share whenever they were in the process of a transition. It has co-developed Baramati's first digital hospital by I n t e l s a w a d e c l i n e in t h e i r m a r k e t share due to t h e following reasons • They faced supply related problems. It is also teaming up with cyber cafe chains to have onscreen advertisements. CEO. research and development. education. It is working closely with the Govemment to improve rural education and to lower healthcare costs. setting up high-speed Internet network connecting the community computer centers and public kiosks.2 Gh. figures anri subject to change. providing WiMAX network and a telemedicine program.. software engineers from the IT industry comment that AMD products show better performance in terms of graphics. nan-inclusive of taxes. The tangible bottomline benefits: Producing millions of potential PC consumers. a computer warehouse owner in Bangalore. TV campaigns and in gaming goes well with AMD processor. In the 02.'06 it had decreased to 78. a private cybercafe owner and a PC assembler in Bangalore. wbich lead to 3 decrease in sales. games and video conferencing.B Ghz 3.000 PCs to state governments and training one million teaehers. Intel has itself given competitors the opportunity to grow. enjoying the benefits of being an early starter. 4600 X2 0ual Core 2. Why The Slip? In spite of having the advantage.4 Ghz E6600/1066f4 MB Core 2 Duo Core 2 ExtremE XSeQO 2. However. Intel for the last 17 years has been the lone player in the game. looking to increase digital literacy." says McClure. Price: Expensive But Sought After In spite of competitors having cheaper products. Intel has itself given competitors the opportunity to grow." says C. 0 9!) IBG Jan 2006 07 . With India's growing wireless networks having datacard system connected via cellular networks. "Intel has better marketing strategies." Vinay Mehta. It has designed a platform having a module for connecting to the wireless WAN system—to be launched next year.13 Ghz E6400/106EI2 MB Core 2 Duo 2. Paul Otellini. And we have to innovate to share the marketing voice.PRICE LIST Intel 3. Intel has already started working on newer processors to make them faster and more efficient.0GhzlLGA775)533ilMBI524 Rupees 4)50 Rupees 2910 AMD 2800 sEMpnarti (AM2I Athlon 30Q0164bli) 939pin 3200 (64bit| 939pin Attiton 3500 (64bitl 939pin Athlon 3600 X2 Dual Core AM2 4200X2 Dual Core 2. The G4 graphics card Note: Prices mentioned above are as of Nov. On the Intel versus AMD front. they hold the market due to this. Intel sees wireless as the hottest area. community outreach.93 Ghz 4150 4600 8690 3900 4150 8180 10575 11250 37125 neoo 56100 48375 displays at the eommunity center showing the PC for fun and education have proved to be powerful sales campaigns. Intel is still the leader in India because of its strong brand image. "Comparing technical details. "There is an increased flow of money for marketing. inside the PCs lies the Intel microprocessor. Intel has seen a decline in market share. The data at the end of the quarter will decide Intel's next strategy. "The Indian buyer has become more affluent. Now the technology leader faces the challenge of sustaining its success. they added. Twenty percent of the marketing expenses is allocated for pilot projects. Yogesh.'O6. It has collaborated with other technology companies.86GhzE630a/1066f2MBCDte2DiJO 2. Strategies like Intel advertisements on school buses and hoardings are proving to be good communicators.6 percent from 82. and the brand re-call has helped us a great deal. fiveyear initiative known as 'World Ahead Program' in May 2006. And yes. people feel AMD gives value for money. These are approx. • One major factor for the decline was that their price was higher than the competitor's offerings. The nearest competitor AMD has been gaining in the market reaching a high of 23 percent. "People feel other company products give value for money. the company believes that traditional marketing strategies like PR campaigns have worked best for them. a computer warehouse distributor in Bangalore. Intel informed that it would change its micro-architecture every two years rather than four like in the past to regain their market share.2 percent in QI. Promotion: Being Visible Intel has launched a SI billion. Currently Intel is experimenting with viral marketing.4 Gh2 FX • 62 2.D6Ghzll£A775l533i1MBf524 3.2 GhzlLGA 7751 800flM8(541 1." perceives Vinay Mehta. 2006. moving ffom 1(86 to Pentium and to Intel Core 2 Duo micro architecture. Supporting this.