Intel is an American multinational technology company that develops, manufactures, and sells computer hardware and software. Ever since its inception, Intel has been monumental in building state-of-the-art IT infrastructure not only for its own services but also for the entire industry. Today, Intel has more than 100 locations around the globe.
In the Intel case study, we shall be talking about Intel’s marketing strategy with the help of its marketing mix, marketing campaigns, SWOT analysis, and digital marketing presence. So let’s get right into it by first getting to know the company a little better.
Intel is headquartered in Santa Clara, California. The company was founded on July 18, 1968, by Robert Noyce and Gordon Moore. It is the world’s largest semiconductor chip manufacturer and developer of microprocessors. The company also manufactures graphic chips, network interface controllers and integrated circuits, motherboard chipsets, flash memory, embedded processors, and other equipment related to computing.
Basically, Intel provides computers, networking, data storage, and communications platforms. A lesser-known fact about the company is that the name ‘Intel’ was conceived from the words ‘integrated’ and ‘electronics’.
The company is presently divided into the following segments:
- The Client Computing Group (CCG)
- The Data Center Group (DCG)
- The Internet of Things Group (IOTG)
- The Non-Volatile Memory Solutions Group (NSG)
- The Programmable Solutions Group (PSG)
- and All Other.
Now that we understand the company’s business and history, let’s start discussing its marketing beginning with the marketing mix.
Intel’s Marketing Mix
The concept of the “marketing mix” refers to a business’s foundation model, which is traditionally focused on product, price, place, and promotion (also known as the “4 Ps”). The marketing mix is a set of marketing tools that a company employs to achieve its marketing goals. Following is Intel’s marketing mix:
Intel’s Product Strategy
In terms of volume and sales, Intel is the most successful Silicon chip manufacturer. It provides microprocessors to a number of well-known computer manufacturers, including Dell, Apple Inc., HP, and Lenovo. Embedded processors, network interface controllers, flash memory, graphics chips, and motherboard chipsets are also produced by the company. It makes significant investments in new chip design, resulting in at least one new chip each year. Intel’s greatest advantage in achieving market leadership has been in designing and introducing new chips.
Intel has been renowned for dual-core, Core2duo, i3, i5, and i7 processors in different generations ranging from 1st to 7th. As a result, the Intel marketing mix includes its full portfolio of products.
Intel’s Pricing Strategy
Intel’s pricing strategy is that of a market leader due to its supremacy in the market. AMD, for example, has been a market follower. Intel has assured its customers that it is the best processor manufacturer in the industry, and as a result, it has not been challenged for its pricing over the years. It has a 90 percent market share as a result of its stronghold on the market. Since it buys its raw materials in bulk from its manufacturers, the company’s total production costs are reduced, resulting in significant revenues.
Intel’s Place Strategy
Intel has its headquarters in Santa Clara and is spread across 63 countries. The following venues are used by the company to reach its target audience:
- Intel Shop
- IT resellers
- Authorized sellers of embedded products
The Intel Shop is the company’s most direct channel for product delivery and sale. Intel Shop, for example, is a section of the company’s official website. There are also physical Intel shops in strategic locations around the world. The company also has agreements with IT resellers, such as parts and accessory retailers.
Authorized embedded product sellers include, for example, computer systems that use Intel microprocessors and boards. This mix of locations/venues aids the company in expanding its global market presence in order to distribute and sell its goods. The business effectively uses market penetration as an intensive strategy for growth through this part of its marketing mix.
Intel’s Promotion Strategy
Intel promotes its products to end-users of computing technologies as well as direct buyers, who are mainly laptop, desktop, and associated computer manufacturers. The following promotional tools are part of Intel’s promotional mix:
- Public Relations
- Direct Marketing
Advertisements are a costly but successful marketing technique used by Intel to increase sales of its products and those of equipment manufacturers using Intel processors and boards. For example, the company was able to successfully raise customer awareness and loyalty to Intel products through the “Intel Inside” promotional campaign, which was introduced in the 1990s. Other ads, such as the one for the 2017 Super Bowl, are also successfully employed by the company.
Public relations is an essential advertising strategy as well. The business, for example, sponsors special events such as high school science fairs. Sponsorships like these help raise brand awareness and consumer loyalty. These public awareness campaigns are also part of a larger initiative to display corporate social responsibility.
Furthermore, the company uses direct marketing to sell its products. To achieve profitable agreements, the organisation communicates directly with equipment producers and sellers. This element of Intel’s marketing mix shows that advertising, public relations, and direct marketing all play a significant role in achieving the company’s promotional goals.
The marketing mix, thus, sums up each detailed part of Intel’s 4Ps strategy. Let us finally talk about Intel’s marketing strategy now.
Marketing Strategy of Intel
In this section of the blog, we shall discuss Intel’s marketing strategy by way of its STP i.e. segmentation, targeting, and positioning. Intel narrows down the large and varied target audience into specific groups, from heterogeneous to homogeneous groups to understand buying behaviours of customers. Intel, thus, carries out its segmentation based on demographic factors- based on age, life cycle, gender, income, religion, race, and nationality as well as psychographic factors- based on consumer buying behavior, such as lifestyle, values, attitudes, interests, etc.
Undifferentiated targeting strategy is used by intel to target these segments as most of its products are standardised and available worldwide. Intel’s target audience is anyone and everyone searching for a new computer. Intel is known mainly for its processors and chips, and so the company positions its products and services based on the product’s usage and benefits. Primarily, focusing on their value as a brand in their positioning. From this positioning of ‘High-Quality Technology Products’, Intel recently repositioned itself as a ‘Leader in Technology Breakthroughs.’ This positioning is well-strategised when looked at its history and contributions to the industry.
Moving further, another major part of a company’s marketing efforts is its campaigns. Let’s take a look at some of Intel’s marketing campaigns.
Intel’s Marketing Campaigns
Intel has successfully carried out various marketing campaigns over its many years of existence in the industry. These campaigns not only help promote its products but also set the tone for the brand in the minds of the consumers. Following are two of Intel’s most memorable marketing campaigns:
“The Sponsors of Tomorrow”
The Sponsors of Tomorrow was the name of one of Intel’s most popular marketing campaigns. So what message did the organisation want to communicate with this campaign? Since Intel’s products are designed to serve as a “human” assistant to its clients, the commercial shows an emotional connection with them. The campaign echoes this sentiment as Intel’s advanced level of technology is aimed at shaping the present and future, with the IT giant playing the part of a sponsor. Thus, showing Intel as a sponsor of the futuristic tomorrow. This was a viral campaign and got Intel a lot of brand recognition.
“Go Do Something Wonderful”
The “go do something wonderful” campaign, which is based on a quote from Intel co-founder Robert Noyce, aims to inspire people about what they can do with the aid of a PC with Intel Inside. The ad focuses on stories that demonstrate what all technology can accomplish for each person.
After learning about the company’s many marketing tools and channels, we conducted a SWOT analysis to get a better understanding of its position.
SWOT Analysis of Intel
SWOT stands for strengths, weaknesses, opportunities, and threats. The Swot analysis is a technique for assessing a company’s competitive position and formulating strategic plans. Internal and external factors, as well as present and future prospects, are all evaluated in a SWOT analysis. The following table breaks down Intel’s SWOT analysis:
- Brand value & recognition
- Technology leader
- Consistent Innovation
- Global presence
- Economies of scale
- Long-standing partnership with Microsoft
- Business diversification is limited.
- Minor presence in the smartphone industry
- Dependence on Windows-based computers
- Automatic cars, drones
- Business diversification
- Product development for the smartphone industry
- Price war
- Rapidly shifting industry to mobile computing
The table reiterates what we have been learning so far with regards to Intel’s multiple strengths. But if the company minimises its weaknesses while mitigating threats and capitalising on future potential, it can keep adding on to its already impressive list of strengths.
Lastly, but most importantly, we shall talk about Intel’s digital marketing presence.
Intel’s Digital Marketing Presence
Having a strong digital presence is extremely crucial for any company in today’s times, especially a consumer-focused technologically advanced company like Intel. In this section of the blog, thus, we analyse Intel’s social media presence across some of its most important and active platforms.
- Intel has 1.6M followers on Instagram, 4.8M followers on Twitter, and 37 M likes on Facebook.
- They are very active on these social media platforms and post regularly.
- Their posts are mainly filled with lots of images and information about their upcoming products and services. Detailing their services and new features, additions, etc.
- The company also engages in social issues and awareness. For example, they celebrated Women’s History Month by featuring their female employees making history in the industry.
- They also regularly feature accomplished users who swear by their products and use them daily on their pages, by narrating their stories and experiences.
- Festive marketing is also practised by the company by wishing their customers on various occasions like Valentine’s Day, New Years’, Christmas, etc.
- Lastly, their content is engaging and interactive with the audience as well. They poet random quizzes and questions to their followers which encourages them to comment and share.
Intel is one of the largest chipmaker companies and IT equipment manufacturers. The company clearly does justice to its history and brand name with its marketing. Their campaigns have always connected with the audience leading to its massive brand recall today. The marketing mix, especially showed us how each strategy and development is well planned and executed to deliver to the customers and retain them effectively.
Intel’s marketing strategy, including its digital marketing presence, have successfully evolved over the years and are up with the times. If Intel continues to innovate in its signature methods, the company shall surely be able to maintain its upward trajectory for even longer.
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