Marketing Case Study - Intel

Top 5 computer brands: = Industrial Single ProductLittle differentiationFew BuyersLarge BuyersSignificant Buyer Leverage Intel's Business Market A Market Leader Presented by:Aline Barbosa, Thi Le, Simon Lenton, Alexandria Tibbetts & Daniel Wood Three Key Questions Derived Demand EasterEggsChocolateCocoa Market Constraints Integrated MarketingCommunications Creating the Right Mix to Support the Pull Strategy concl u TO de CAMPAIGN Co-branding marketing strategy Launched in 1991 OBJECTIVE Promote awareness of the final customersExploitation of reputation Benchmark of microprocessor industry Business to business behaviour Increase worldwide sales IMPLEMENTATION Incentive-based cooperative advertising programCo-op fund Six percentage rebate on microprocessor purchasesReduce its offer in half if the PC makers add another logo Awareness of Intel: 20% in 1992 to 80% in 1996 and 90% in business marketIntel logo as an assurance of quality, safety, leading technology and reliable1500 computer makers participating in the campaign of IntelIn the first year of campaign, sales increased 60%Controlled 85% market share of microprocessors by 1998 RESULTS OF THE CAMPAIGN REFERENCE LIST Source: http://www.nyquistcapital.com/2006/05/18/intel-first-fire-the-marketing-guy Source: Advertising Age's Business Marketing, vol. 82, no. 7, pp. 1-3 Isn’t the computer brand the most important feature to the buyer? Who is going to be a computer brand leader in the future? Top 10 computer brands Intel's Choice Of Marketing Strategy Marketing Communications? OBJECTIVE is "to inform, persuade and remind customers, reinforce their attitudes and perceptions and influence them to behave in a particular way." cut through clutter facilitate delivery of promise WHY? competitive strategy – Differentiation leapfrog strategy co-branding derived demand pull strategy greater resources for R & D Arnott, N., 1994, ‘Inside Intel's

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marketing coup’, Sales and Marketing Management, vol. 146, no.2, pp. 78-81.Intel Corporation, 2010, ‘2010 Annual Report – Financial Information’, Intel Corporation, viewed 27 April 2012, Intel Corporation, 2011, ‘2011 Annual Report – Sales and Marketing, Intel Corporation, viewed 27 April 2012, < http://www.intc.com/intelAR2011/business/marketing/ >Intel Corporation, 2012, ‘Intel Inside program: Anatomy of a brand campaign’, Intel Corporation, viewed 20th April 2012, Johnson B 1997, ‘Intel-ligence inside’, Advertising Age's Business Marketing, vol. 82, no. 7, pp. 1-3.Kotler, P., Burton, S., Armstrong, G., Brown, L. & Deans, K., 2010, ‘Marketing’, Pearson Education, Ed. 8, Frenchs Forest, NSW, Australia.Reilly, B., 1997, ‘Intel shows marketing's strength’, Advertising Age's Business Marketing, vol. 82, no. 7, p. 15The-top-tens.com, 2012, ‘Best Computer Brands – Top Ten List’, The Top Tens, viewed 19th April 2012, ,http://www.the-top-tens.com/lists/best-computer-brands.asp>Whitwell, S., 2005, ‘Ingredient branding case study: Intel’, Intangible business, viewed 20th April 2012, . higher bargaining power (supplier) ingredient branding Competitive strategies as value - Product Leadership rather than (Kotler et. al, 2010, p. 506) 1. What is derived demand?2. How important is brand?3. Why target consumer markets? Semi conductor microchip maker1st mover - established 1968Created first commercialised microchip in 1971 80% market share by 20082010 - market capitalisation of US$140.84 BillionSalient brand recognitionBrilliant marketing campaign commenced in 1991 - "Inside Intel" Intel has brilliantly harnesses derived demand for its product creating a brand identity of its product across all personal computing hardware.The 'Intel Inside' marketing campaign is a exemplar of good strategy and timing.

Intel commitment to R&D and technical excellence should not be ignored. Q estions?

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