Amd Marketing Report 13941 Essay Example

responsible for developing this product. Established on May 1st, 1969, AMD unveiled their initial offering, a 4-bit MSI shift register, in November of the same year.

September 1972 marked the IPO of AMD, as they issued 525,000 shares at $15 per share. In January 1973, they established their initial offshore manufacturing center in Malaysia. By 1975, AMD expanded its product line to include the 8080A standard processor and the AM2900 family. Additionally, in 1976, AMD and Intel entered into a cross-license agreement.

The 1083 technology exchange agreement allowed AMD and Intel to share and utilize each other's processor designs for PCs and other IC devices. In 1979, AMD became listed on the New York Exchange. The company made its first appearance on the Fortune 500 list in 1985. In March 1991, AMD unveiled the AM386 microprocessor family, which ended Intel's monopoly. April 1993 marked the introduction of the initial members of the Am486 microprocessor family. As a competitor to Intel's Pentium+ processor, AMD launched the AMD-K6+ processor in 1997 as part of the sixth generation.

The AMD Athlon+ processor was introduced by AMD in 1999, making it the world's first seventh-generation processor. In the same year, AMD completed its Fab 30 in Dresden, which is now recognized as one of the largest and most advanced semiconductor factories globally. (Historical information source: AMD official website). When examining the company, it is crucial to understand AMD's mission statement.

According to their mission statement, AMD produces integrated circuits and offers programmable products and application solutions to manufacturers of equipment for personal and networked computation and communication.

AMD uses innovation, process technology leadership, and manufacturing excellence to offer innovative products and services that

enhance performance, cut costs, and speed up time to market for our global target customers. This strategy allows AMD to grow faster and achieve a higher return on equity compared to the semiconductor industry. Believing in the enrichment of the world through informational technology, AMD plays a vital role as a top supplier in this digital age. We collaborate with our customers to enable people worldwide to live more productive lives by facilitating the creation, processing, and communication of valuable information and knowledge.

AMD, a company that can be found at www.amd.com, strongly emphasizes the importance of respect for people in their business practices. According to Jerry Sanders, the President of AMD, "People first, products and profit will follow." Now, let's delve into their actual product. The AMD Athlon+ is the seventh generation of CPUs using the x86 architecture, primarily designed for Windows+ computing. In 1991, AMD entered the CPU market by introducing the AM386 microprocessor family.

AMD's first processor belonged to the third generation of processors, breaking Intel's monopoly on the x86 microprocessor market. Despite being considered a follower in the CPU market for many years, AMD managed to gain market share from Intel by introducing the seventh generation of x86 CPUs with Athlon in 1999. Athlon surpassed Intel's top processors, establishing AMD as a leader in High-End computing and allowing them to compete directly with Intel. The Electronic Engineering Times article provides insight into what can be expected in this year's CPU market and emphasizes the significance of these changes.

Intel (Santa Clara, Calif.) reported a total revenue of $8.7 billion in the fourth quarter (Q4) and anticipates a potential sales decrease of up to 15%

in the current quarter. The Q4 revenue remained steady compared to the previous quarter while exhibiting a 6% growth from the same period in 1999. If the sequential sales decline reaches 15%, it would represent Intel's largest drop in history. Conversely, AMD disclosed $1.2 billion in revenue for Q4, reflecting a 21% increase from Q4 of 1999 with no change from the previous quarter.

According to the CEO of AMD, Sanders, sales for the current quarter are expected to remain stable. Additionally, AMD reported a net income of $178 million, while Intel's net income was substantially higher at $2.6 billion. In terms of total sales in 2000, AMD achieved $4.6 billion, marking a 63% increase from the previous year. On the other hand, Intel reached $33.7 billion in sales with a 15% growth rate. Sanders proudly declared it as AMD's most successful year ever.

What distinguishes this product? Firstly, it was the first one to enter the market, providing it with a competitive advantage. Moreover, Athlon outperformed its rivals in numerous independent benchmark tests.

Another compelling aspect supporting the case for this product is that the supplier (AMD) successfully fulfilled consumer demand for this processor consistently. AMD implemented Copper chip production a whole year ahead of Intel, albeit exclusively in their latest facility, Fab30 Dresden. This crucial technology enables the utilization of copper as the material for interconnects (unlike other producers worldwide who employ aluminum). With copper, the CPU attains a higher clock speed, consumes less power, and generates less heat during operation. AMD currently aims to prioritize the Athlon's performance attributes as a means to surpass Intel and attract customers.

The mentioned processor stands out from its competitors

with several notable features. Its exceptional processing power is suitable for both mainstream Microsoft Windows software and computation-intensive applications used in high-end desktops. It also provides the most powerful multimedia experience on an X86 platform, thanks to its cutting-edge Enhanced 3Dnow instructions and inclusion of all instruction sets found in competing processors. Additionally, it incorporates the most advanced x86 microarchitecture, allowing users to access tomorrow's technology today. Moreover, Athlon has the most powerful floating point capability available, ensuring fast and smooth operation even in performance-demanding environments like 3D design, CAD, CAM, etc. It surpasses competitors with similar or higher clock speeds as well. Athlon effectively addresses customer needs across these categories by delivering a high-end processor that offers outstanding performance and reliability. AMD is actively striving to attract corporate buyers during this crucial period for their entry into this market year.Phil Trent, Marketing Director for SMI and founder of MarketingDirector.org, discusses AMD's desire to establish a presence in the corporate market. To accomplish this objective, AMD intends to leverage SMP (symmetric multi-processing) and Sledgehammer (also referred to as Hammer), their forthcoming 64-bit CPU. In the year 2001, AMD will integrate its LDT (Lightning Data Transfer) technology into their SMP solution. This integration will allow two or more CPUs to collaborate with greater efficiency than Intel's x86 technology offers.

AMD and its Athlon line have a significant advantage over Intel in terms of product availability. While Intel struggles to meet demand for their previous generation microchips, AMD promptly supplies ample quantities of their CPUs upon release. These processors are readily available online and in major computer-focused retail stores, including the latest models. Additionally, price plays a crucial

role in consumer decision-making. Customers can purchase one of the top processors currently on the market for just $200. By investing around $2000, individuals can build a high-end computer that meets all home or office computing requirements. To visualize this better, below is a comparison chart showing the pricing fluctuations between AMD and Intel over the past year and a half. Notably, new prices were recently set on April 30th, resulting in an impressive almost 50% decrease.

• AMD April 30 2001 April 18 2001
• Athlon 1.3 GHz (133 MHz FSB) 183 $ 350 $
• Athlon 1.3 GHz (100 MHz FSB) 173 $318$
• Athlon 1.2 GHz (133 MHz FSB)158 $294$
• Athlon 1.2 GHz (100 MHz FSB)156 $268$
• Athlon processore a >The interesting fact is that you can now purchase an Athlon processor with a speed of up to< Athlon processo con una velocita di fino a > for under $183, which is a competitive retail price.< per meno di $183, che e un prezzo competitivo al dettaglio. Price plays a crucial role in AMD's battle against Intel, the market leader.Il prezzo svolge un ruolo cruciale nella battaglia di AMD contro Intel, il leader del mercato. AMD aims to attract both business and private customers by providing a competitive product that often outperforms Intel CPUs, all at significantly lower prices.AMD mira ad attirare sia clienti aziendali che privati fornendo un prodotto competitivo che spesso supera le CPU Intel, il tutto a prezzi significativamente inferiori. Furthermore, the availability of this product makes it one of the best choices currently on the market.Inoltre, la disponibilita di questo prodotto lo rende una delle
  

migliori scelte attualmente sul mercato.
AMD has implemented a specific price strategy, which involves keeping its processor prices thirty percent lower than Intel's and responding to changes in Intel's prices.AMD ha implementato una specifica strategia di prezzo, che comporta il mantenimento dei prezzi del processore trenta percento inferiori rispetto a quelli di Intel e la risposta alle variazioni dei prezzi di Intel.
Additionally, before proceeding to the next session, the attention is directed to the awards received by the processor.Inoltre, prima di passare alla prossima sessione, l'attenzione e rivolta ai premi ricevuti dal processore.

The processor has been awarded various honors, including CPU of the Year from Maximum PC in different years, World Class Award Product of the Year from PC World in July 2000, and Analyst's Choice Award Best PC Processor from Microprocessor Report in January 2000. It has also received recognition from publications such as PC Magazine, 3D Magazine, and the Houston Chronicle. On an international level, it was named Best New Computer Hardware by The Toronto Star in May 2000 and Best New Product by Breakaway Canada Computing Technology Association of Canada on April 12, 2000.Game.exe in Russia was also awarded the Best Processor of 1999 in the Hardware for Games category by Game.exe in March 2000. Furthermore, it received various accolades from different countries and publications such as PC Magazine en Espanol (Mexico), PC Magazine (UK), PC Expert (France), Info PC (France), Generation PC (France), PC Compatibles (France), PC Direct (France), PC Achat (France), PC World (Denmark and Norway), PC World Komputer (Poland), PC Kurier (Poland) Personal Computer Magazine(The Netherlands, Home Computer(Russia)), CHIP Magazine(Israel, Poland) MikroPC(Finland) China Computerworld(China) China Computer Reseller Weekly(China). It was

also recognized as Highly Recommended Hardware by eNet. Additionally, it won the Upgrade Product of 1999 by Australian Personal Computer(Australia) and received the CeBIT-Oscar for "Trend Setting Technology" in the Hardware Category from CHIP Magazin(Germany) in February 2000.The Athlon CPU has received numerous awards and recognition, such as Most Innovative Manufacturer (PC Direct, Germany), Most Innovative Hardware (PC Shopping, Germany), Company of the Year (PC Shopping, Germany), Best CPU Hi-End Use, Best CPU Games, Best CPU Office Use (all from VIDI Magazine, Croatia), Innovation of the Year (PC Professionell, Germany), Zloty Processor (Teleinfo, Poland), Golden Computer (Computer Bild), Product of the Year (PC Magazine, Italy and CHIP Magazine, Poland), and Recommended Product (PC Actual, Spain). Additionally, it was named "CPU of the Year" for 2000 by Maximum PC. The text highlights that the Athlon CPU is known for its competitive performance and price. It is also well-promoted with an annual marketing budget ranging from 15-18 million dollars.

Here is how AMD planned to generate attention for its product: The initiative starts with print ads in magazines and newspapers during November. The creative from Hill, Holliday, Connors, Cosmopulos, Boston, targets sophisticated consumers, small- and medium-sized businesses, and corporate buyers. It delivers messages about how different software programs perform better on the AMD Athlon processor compared to Intel Corp's fastest Pentium III processor, which is the market share leader (Advertising Age, Oct 4, 1999 p20).

AMD will achieve their marketing objective by using the following tools:

• Partner presentations (under NDA)
• Partner or third-party training events
• Advertisements
• Web communications
• Printed collateral
• Trade show materials
• Multimedia demonstrations
• AMD internal communications
• Any integrated promotional campaigns

(AMD website, www.amd.com)

Positioning Statement

The AMD Athlon processor powers the next generation in computing platforms, delivering exceptional performance

for cutting-edge applications and an unparalleled computing experience. (AMD website, www.amd.com) The current campaign theme is "AMD Athlon+ - You have the Power."

The campaign focuses on issues such as cutting-edge performance, a rich multimedia experience, advanced technology, and the importance of a reliable partner. A particularly interesting advertisement attempt was made in a 30-second clip that mimics the format of the show "Who Wants to Be a Millionaire?". The ad presents an average person who must choose between a PC powered by an Athlon processor and one powered by Intel's Pentium III processor. The goal is to demonstrate that choosing the right PC can save the person from a dangerous situation, in this case, rerouting a runaway train. Unfortunately, the contestant selects the wrong PC, and as a result, the train continues to approach. The ad ends with the contestant standing in front of his destroyed house while the game show announcer remarks, "Ooh, that had to hurt." (Brandweek, Nov 15, 1999 v40 i43 p5)

This advertisement highlights the importance of performance in decision-making and appeals to a wide range of consumers, including both average home computer buyers and corporate purchasers of high-end workstations. Additionally, the advertisement introduces AMD's CPU product line, known as the roadmap, which spans across various sectors of the CPU market. This includes entry-level options like Intel Celeron+ and AMD Duron+, as well as the high-performance workstation and server markets where AMD currently has limited presence. In conclusion, AMD is a rapidly growing company that competes with Intel for new markets. Industry experts predict that by the end of the year, AMD will capture over 30% of the overall CPU market share.

This

company has a great pricing strategy that gives it a competitive advantage over Intel. With the customers in mind, I believe this company will grow rapidly and be reliable.

Works Cited

1. Advanced Micro Devices Website, www.amd.com
2. Advertising Age, Oct 4, 1999 p20
3. Brandweek, Nov 15, 1999 v40 i43 p5
4. Electronic Engineering Times, 01/22/2001 Issue 1150, p14
5. Phil Trent, Newsfactor Network, http://www.newsfactor.com/