INTEL CorporationSales & Distribution:IT-Industry

Gaurav Singh BisenMBA-Tech Program-MarketingNMIMS University

Presentation Flow

I.T Industry in India Why Intel? SWOT

Analysis

Intel’s Product Line

Sales Organization & Structure

Buyer-Seller Interface

Sales Forecasting

Intel’s Distribution

Channel

Conclusion & References

I.T Industry in India.

Major Components

GDP

Revenue

Campaign

IT Services

&BPO

7.5 % till now.

More than $48 Billion

Digital India

Campaign

About Intel Corporation.Market Leader in Microprocessors & Chips

Headquarters in St. Clara, USA.

High Value Add in India. No Manufacturing

11 Locations in India.

Intel Market Share

2014 F Company Headquarters 2014 Total

1 Intel U.S. 51368

2 Samsung South Korea 37259

3 TSMC Taiwan 25088

4 Qualcomm U.S. 19100

5 Micron + Elpida U.S. 16614

SWOT Analysis- IntelStrengths Weakness

OpportunityThreats

Strength-Intel

• Acceptance • Largest share around

the world • Almost every brand

which makes computer is using Intel product.

• F a c t : P r o v e d i n F i n a n c i a l R e p o r t 2005-2014.

• Fact: Intel is a top l e a d i n g i n S t o c k Details in 03 April 2015

• Highest in invest on R&D.

• R&D played a very crucial role in the s u c c e s s o f I n t e l brand value.

• F a c t : I n t e l , t h e highest spending for R&D for 2013-2014.

• Easier for the new p r o d u c t t o b e accepted by the market.

• design and develop next genera t ion product .

• Gained trust from thousand customer b y p r a c t i c i n g “Industry Standard

Research & Dev.Market Value & Share Largest Cust. Base

Weakness-Intel

• Accused o f u s ing divisive strategies in defense of its market position against its competitors.

• Retail prices are higher compared to competitors.

• Major weakness is downside trends of PC sales in the recent years.

Price SensitivityWrong Market Positioning Dip in Sales of PC

Opportunity-Intel

• Keep customer as they are first preference and m a k e c h a n g e s o n regular basis

• R e l a t e d diversification would prove to be a huge success: cellular or broadband portion.

• Evidence : In te l aware AMD is one of the BIGGEST competitor and that is why Intel keep moving forward and the result where I n t e l g a i n t h e market share of 80% (+/-) and put Intel as competitive advantage.

DiversificationCustomer Preference Continous Improvement

Threat-Intel

• Mobile and Smartphone chips like ARM may destruct Intel PC business.

• Google is planning to make its own ARM-based processor

• Cellphones can perform the same task as of PCs

Threat from GOOGLEWell established Competitors Increasing Cell-phone Market

Product-Mix INTELProcessors Mobile Devices Boards Chipsets Network Product Server Product

Intel Core (i3,i5,i7)

Value Processor

Intel Xeon

Intel Quark

Pentium

Celeron

Intel-Atom-

Processor-Z3570

Intel-Atom-

Processor-Z3736F

Intel-Atom-

Processor-Z3530

Intel-Atom-

Processor-Z3736G

EDISSON

GALELIO

Server Chipset

Workstation Server

PC Chipset

Server board

RAID

I/O device

Adapters

Controllers

Switches

Optics

Cables

Design by Management-HierarchyCEO

Brian Krzanich

CFO Stacy Smith

President Marketing

Human Resources

Legal and Secretary

Finance

Treasurer

Client Computing HR and Talent

Associate Legal and Privacy

Sales Staff

Sales Organization and Hierarchy

A strong partnership was required between Intel Sales and Marketing and IT leadership for this collaboration.

Intel IT implemented a social collaboration platform that enables sales teams to:

•Discover content and people. •participate in focused & relevant discussions •Speeding decision making.

Sales Efforts by Intel’s TeamDeveloped a sales collaboration model

Evaluation and selection a social collaboration platform

Engaged employees through Proof of Concept

Employee Transition & Change Management

Buyer-Seller InterfaceINTEL

OEM ODM Others

Hewlett-Packard

Dell Computers

SuperMicro

Quanta

Source- http://www.intc.com/intelAR2011/business/marketing/

Sales Forecasting-Intel

Source- http://www.applematters.com/article/mac-sales-its-all-about-the-chips/P15/

Short Product Lifecycle

High Manufacturing Lead Times

Derived Demand

Ingredient Branding-Intel

+ + +

Information Aggregation Mechanism

Intel’s Sales & Distribution ChannelThe concept of 4C and 2S

4-C

2-S

COMPETITORS

CHANNELCOLLABORATORS

CUSTOMERS

SUBSTITUTES

SUPPLIERS Raw Materials - Silica, Plastic

Reduce Instruction Set Computer: Alternative of Intel Chipset

4-C’s for Sales & Distribution (INTEL)COMPETITORS

CHANNEL

COLLABORATORS

CUSTOMERS

AMD Google Motorola Cycrix

Apple Dell HP Toshiba

DIRECT

INDIRECT

Sales Force, Mail, Telemarketing, Some Internet/Catalog, Company Store

Stores (department, convenience, supermarkets, Some Internet/Catalog (e.g. Askul)

OS Software

4C & 2S Structure-Intel.

IntelSuppliers

Competitors

Substitutes

Channel Customers

E N D

U S E R

Direct

C H A N N E L

Software Providers • OS • Application

CollaboratorsLicensees -IBM -Others

RISC: SUN Microsystems

KYOCERRA

GOOGLE, AMD, MOTOROLA, CYCRIX

Retailers & Dealers: • Amazon • Snapdeal - Flipkart - Jumbo - Croma - Brand

outlets

APPLE,DELL, HP, TOSHIBA

Intel: In News❖ Intel HDMI Dongle- Plug &

Play- Windows 10.❖ Intel’s Atom Processors:

Failure. ARM rated for Mobile Devices on Top.

❖ Marketing & Branding:❖ Brand Ambassador: Jim

Parson aka Sheldon Cooper.

THANK YOUAditi JainAnkit JoshiSanchit LuthraVaibhav MakkarParag SamantGaurav Singh Bisen