BMW marketing excellence Essay Example

perception that their products were worth the extra cost. Furthermore, Intel launched a platform featuring new microprocessors, extended battery life, and wireless capabilities. To promote this platform and encourage wireless technology adoption, they initiated a major media campaign called "Unwired." Recognizing the slowdown in the PC industry during the mid-1990s, Intel explored opportunities in new areas such as home entertainment and mobile devices. They responded to changing consumer demands by introducing new products and services. As part of their Intel Learning Series initiative in 2007, they introduced the compact and affordable Classmate PC aimed at children in remote locations. The following year witnessed the introduction of their smallest processor yet: the Atom processor designed specifically for the Classmate PC.Intel successfully implemented an Ingredient branding Strategy, leading to increased sales and a significant rise in recognition of the Intel logo from 24% in 1991 to 94% in 1995 through their "Intel Inside" campaign. This strategy expanded the Intel brand beyond PCs by forming strategic partnerships with stakeholders and supporting marketing strategies. Advertising efforts included commercials featuring "Bunny People" and "Blue Man Group." Intel also developed new products for new markets, addressing important issues like the Intel Learning Series. By 2001, Intel became the sixth most valuable brand worldwide, estimated at $35 billion. Although discontinuing the use of the "Intel Inside" tagline, there were no losses incurred; instead, gains were achieved. Changing slogans could potentially impact the company's strategic direction as it had deeply ingrained itself in customers' minds. However, despite this change, Intel remains admired and trusted for its high-quality offerings. In their microprocessor manufacturing industry, their main competitor is AMID (Advanced Micro Devices), an American

semiconductor company based in Sunnyvale, California specializing in developing computer processors and related technologies for both business and consumer markets.AMID, initially manufacturing their own processors, transitioned to being fabless after spinning off Global Foundries in 2009. Their product range comprises microprocessors, motherboard chips, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded systems applications. AMID also holds a significant stake in Expansion - a non-volatile flash memory supplier - further solidifying their market presence. While Intel dominates the central processor market for personal computers with over 75% market share, AMID has emerged as a strong competitor due to its lower pricing strategy and introduction of high-performing products. However, despite offering quality products, AMID has struggled to increase its market share significantly compared to Intel. One reason for this is Intel's strong brand reputation achieved through successful marketing campaigns like the "Intel Inside" advertising campaign. Since 2001, Intel has been ranked as the fifth most important global brand and had a brand value of over $30 billion in 2007. Conversely, AMID prioritizes low prices instead of branding and advertising which negatively impacts its brand reputation. Factors such as price, quality, and unobservable product characteristics influence consumer behavior with consumers willing to pay a premium for Intel products.Strong advertising campaigns are crucial for securing Intel's significant market shares. Table 1 provides an overview of the dataset for this study, which includes yearly quantities sold, average prices, average performance, and advertising expenditures from 2004. The data shows that during this period, Intel's sales were more than three times higher than AMID's, capturing 83.49% of total sales. Despite fluctuations in prices due to sales of the

more expensive Etalon 64 model in 2003 and 2004, AMID consistently had lower average prices compared to Intel. However, AMID has managed to bridge this gap and even surpass Intel in terms of performance leadership.

In contrast, Intel heavily focuses on advertising to build its brand reputation. While Intel spends significantly more on advertisements (between 4 and 8 times) than AMID each year, AMID has shifted its focus towards gaming consoles, embedded Soc, and niche server chips instead of the traditional PC market. Despite this shift, AMID still competes with Intel in the PC market where it holds a significant market share.

However, there are differences between the two companies regarding their cash positions. Unlike cash-rich Intel that returns cash through buybacks and dividends for shareholders, cash-poor AMID will require successful execution of their new strategy for a few years before being able to do so.

Both companies face risks in the ever-changing technology landscape including competition in specific niches and the risk of ineffective strategy execution.
Mad's strategy is to devalue their brand while positioning themselves as the preferred vendor in the market in order to outperform Intel. A key aspect of Mad's attack against Intel involves aggressively addressing alleged past anti-trust activity worldwide. This approach has been successful in Japan and recently extended with charges brought by the European Union against Intel. Mad aims to protect its interests through undisclosed charges.

It should be noted that Intel's secrecy works against them, as people tend to assume the worst due to Microsoft's own issues. On the other hand, AMID competes strongly in volume lines but lacks Intel's advantage in the profitable battery segment, where Intel excels in battery life

and system performance.

AMID aims to target Intel's weakest area technically by acquiring TAT, posing a challenge for Intel to catch up with AMID/TAT. If the merger between AMID and TAT is successful and both companies integrate their products this year, AMID will have a significant advantage over Intel. However, completing a merger takes time and integrating products with maximum benefits takes even longer.

Despite being risky, this acquisition is crucial for AMID to achieve market dominance; without it, they have little chance of surpassing Intel. Memo prefers vendor relationships where vendors acknowledge their subordinate role and recognize Memo as the vendor.
Intel and Microsoft often frustrate Memo because they do not recognize Memo as a vendor and act as if they are not employed by them. In contrast, AMID actively tries to understand Memo's needs and works towards fulfilling them. Both Intel and AMID respond to the changing computing market by targeting new markets and implementing different strategies to increase their market presence. In 2014, Intel focuses on 2-in-1 systems for tablets, which now come with integrated docks as a standard feature. On the other hand, AMID launches new product families to expand their market share and diversify revenue sources. They also aim at the gaming market across consoles, cloud platforms, tablets, and PCs. Gaming is crucial for AMID's embedded custom chip business as it powers major next-generation consoles like Sony's PlayStation 4, Nintendo's Wii U, and Microsoft's Xbox One. Game consoles account for 42% of the $65 billion global video game market despite facing tough competition from other gaming options. Both Intel and AMID are competitors in the semiconductor industry but have different pricing strategies -

Intel offers high-priced products while AMID provides affordable options for the general public.

Intel, founded on May 1st, 1969, provides processors under the Pentium brand and offers various products including microprocessors, motherboard chips, graphics processors, RAM (random-access memory), and TV tuner cards. In contrast, AMID focuses on their own branded processors but also specializes in Bluetooth chips, flash memory devices,microprocessors,motherboard chips,and network interface cards.