Marketing Management: Intel Case Study and Strategic Recommendations

This report provides a comprehensive analysis of Intel's marketing challenges, particularly its struggles in the mobile market. It identifies key issues such as the changing consumer preferences and Intel's delayed entry into the mobile sector. The report explores two alternative solutions: product development with differentiation, focusing on creating energy-efficient chips for mobile devices, and creating market penetration through aggressive marketing strategies, drawing on examples like the Red X campaign. A PESTEL analysis is conducted to assess the external market factors influencing Intel's marketing plan. The report then proposes a quantitative and qualitative analysis to determine the best alternative, which is the aggressive marketing of low-power consumption chips. Finally, it presents a SMART-based marketing plan, emphasizing R&D collaboration, a strategic marketing mix, and innovative marketing techniques to adapt to the ever-changing technological landscape. The report concludes that effective marketing is crucial for a company's success, alongside product innovation.

marketing management
Marketing Management

marketing management
Contents
Introduction.........................................................................................................................................2
2a. Alternative solution 1 with pros and cons....................................................................................2
2b. Alternative solution 2 with pros and cons....................................................................................3
3 Identifying the best alternative........................................................................................................4
a. Quantitative analysis...............................................................................................................4
b. Qualitative Analysis.................................................................................................................5
Developing a plan for implementing the chosen solution.................................................................5
Conclusion............................................................................................................................................6
Bibliography........................................................................................................................................7
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marketing management
1. Introduction
The assignment seeks to understand how an organisation can overcome its marketing issues
to survive in the market in future. The case study of Intel has been chosen to study the key
marketing issues faced by the company. The study provides an insight into marketing
challenges faced by Intel and the alternative solutions that can be applied. The study also
consists of qualitative and quantitative analysis based on the data given and a plan based on
SMART perspective. As per the study, the major issues faced by Intel are:
 Intel failed to realise that consumers’ needs change and like in the 90s, consumers do
not bother about what processor is present inside. Consumers are concerned only with
Apple, Samsung, Android that is visible outside.
 Intel capitalised on technology alone which is not enough to capture markets in the
long run. Though this technique worked in the 90s, today the PC market is on a
decline. Hence, Intel needs to market itself for the newer innovations.
 Intel caught the boat late in case of mobiles as the handset makers have other options
such as the ARM. Intel could not market the cell phones effectively which led to the
closure of Intel mobiles.
2a. Alternative solution 1 with pros and cons
The first alternative solution that can be employed is product development with
differentiation.
Intel is known for making high-end PC chips which are capable of high-end storage,
calculations suitable for a PC (Jeffers & Reinders, 2013). They also consume more energy.
However, the solution would be to create chips that are suitable for mobiles and smartphones
and consume much lesser energy giving a better battery life. The company must build on
power consumption factor to compete against ARM chips which consume very less energy.
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marketing management
Product development can help in this strategy. The advantages will be that Intel can partner
with leading brands such as Apple, Samsung for increasing their market share for mobiles.
The disadvantage is that the mobile market is dynamic and user preferences keep changing.
This leads to more competition. As a result, there are chances that the power of the brand
Intel may get diluted and the focus may shift completely towards mobiles.
2b. Alternative solution 2 with pros and cons
The second solution is creating market penetration through aggressive marketing strategies.
Once Intel succeeds in creating low power microchips for mobiles and smartphones, the
marketing efforts need to be pushed. The Red X campaign from Intel's history can be taken as
an example. The solution would be to convince the manufacturers about the quality of Intel
chips used in mobile phones. The strategy to be built must stress on quality of Intel chips and
its competitor's chips for example ARM. Intel's reputation on innovative products with the
best quality can be emphasized here. Intel must focus on understanding the consumer's
demands and adapt to the new market. The advantage here is that mobile market has huge
growth potential and creating opportunities for Intel. The disadvantage is that there are
several competitors in the market creating a challenge for Intel to create something
innovative.
PESTEL analysis
A PESTEL analysis can help in identifying the characteristics of the external market which
can be considered for designing a marketing plan.
Political: The government support for globalisation creates an opportunity as well as the
threat for Intel. Global markets mean that Intel has opportunities for potential markets in the
future (Baldwin, 2016). However, it also means increased competition from other players.
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marketing management
Economical: Economically stable markets are an opportunity for Intel as these markets can
afford to buy Intel technology. Increase in the level of disposable incomes in developing
countries proves to be favourable for Intel.
Socio-cultural: There is a constant need to develop ecological products which will be energy
efficient (Hu, 2014). Intel must treat this as an opportunity and create microprocessors which
are energy efficient yet possess high speed and storage capacity.
Technological: In the case of technology, Intel must try to manufacture innovative
microprocessors which are capable to stand the competition. This is an opportunity as the
mobile market is constantly growing.
Environmental: Environmental factor is an opportunity for Intel to create products which are
environment-friendly.
Legal: Intel faces the threat of increasing competitive regulations. Improvement in
international patent protection helps in protecting Intel’s intellectual properties namely
microprocessor designs.
3 Identifying the best alternative
The alternative will be to market low power consumption chips aggressively in the market.
a. Quantitative analysis
 The marketing strategy of Intel shifted from PCs during the late 90s as the
semiconductor product prices dipped.
 In early 2000, Intel ventured into non-PC markets using semiconductor technology,
but they were unsuccessful.
 Intel diversified the buyers producing chips for different products such as TV, phone
etc.
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marketing management
 The company cannot rest on its dominance in the PC market as PC markets are on a
declining trend.
b. Qualitative Analysis
Intel’s mission is to bring smart and connected devices to every person on earth (W. Glenn
Rowe, 2011). The Power of Moore’s law in the mission calls for continuous product
development. The target of the company is to reach the global market for semiconductors,
microprocessors and other technology. The solution suggested aligns with the mission
statement that Intel has been a leader in producing high-speed microprocessors. However,
these are suitable for heavy devices such as PCs and laptops as they can be connected to the
wall and charged. However, in the case of booming markets of mobiles and smartphones,
heavy batteries will not be successful. Mobiles need batteries which are lightweight and
smaller. Intel needs to develop processors which are smaller in size and consume lesser
energy.
4. Developing a plan for implementing the chosen solution
The marketing plan for Intel-based on SMART objectives are:
 The Research and Development team must work together with the marketing
department to understand the customer demands and produce innovative products
based on the need. A trend for a specific time must be studied to understand the
demands. For instance, customer’s need for lightweight and sleek mobiles can be used
to create microprocessors which are compact in size but promise performance in the
form of battery life and weight. A right mix of product, people, place, and promotion
can be adopted for a successful marketing strategy.
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marketing management
 Innovation in mobile technology followed by aggressive marketing techniques like
the Internet, social media, demonstrations in stores, print media, product launch,
discounts can help in attracting new customers.
 As technology tends to become obsolete after some time, Intel must think ahead of its
competitors and develop and market advanced features through innovative marketing
techniques.
Conclusion
Through Intel, it becomes evident that product innovation alone is not enough for a company
to flourish. The products must be marketed effectively to sustain in the market.
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marketing management
Bibliography
Baldwin, R. (2016). The Great Convergence. London: Harvard University Press.
Hu, A. (2014). China: Innovative Green Development. Heidelberg: Springer.
Jeffers, J., & Reinders, J. (2013). Intel Xeon Phi Coprocessor High Performance Programming.
Waltham: Newnes.
W. Glenn Rowe, L. G. (2011). Cases in Leadership. London: SAGE.
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