Intel’s marketing campaign is a two-fold approach in steering the Internet of Things to Singapore and its people, right where we want it to be: the focal point of discussion, awareness and appreciation of the future in technology and lifestyle. In terms of the cost for this campaign, we appropriate it as 30% of the expected revenue (Net Operating Profits After Tax) from the first year of our new brand valuation (NPV of 2014: $73.2 M x 30% = $21.96 M).
First, we plan to pitch to the B2B segments on how Intel can be its major partners be it in hardware or software capabilities. In the hardware segment, Intel aims to be the top-of-mind Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) for the medical and electronic devices manufacturers. In the software segment, emphasize how Intel can increase productivity, optimize performance, enhance efficiency and improve technology solutions for software publishers and system integrators. This would be the big players of the B2B segments, however, our campaign would not also lose touch on the small players and start-ups, especially those that have products and services that have the potential to disrupt and innovate in this competitive landscape. This will all be done through acquiring, communicating or collaborating with the target industry partners and their respective research & development department. Our target partners would be in the manufacturing, healthcare/medical, and retail industries.
Second, as we implement our campaign on the B2B segments, we will also concurrently keep the end users into the loop of our marketing campaign. We regard the B2C segment as being an integral part of our efforts to ramp up the usage, awareness and acceptance of the Internet of Things here in Singapore. The earlier the customers are exposed to the idea and made aware of IoT, the more beneficial it is for everyone. Intel will communicate to B2C through engaging them using different portals as is summarized below, with the acronyms I.N.T.E.L.:
Inform - build awareness on the Internet of Things by increasing its presence in mainstream media (e.g. Mediacorp) and out-of-home advertisements (e.g. ClearChannel) through print ads, commercials, infomercials and edorsements.
Nurture - Maintain communications and build relationships among its users through social media (e.g. Facebook, YouTube, Twitter), live interaction (e.g. roadshows) and events (e.g. concerts).
Transform - Shape and change people’s mindset and thinking about Intel on its critical role in the manufacturing, healthcare/medical and retail industries for the Internet of Things.
Educate - Teach existing & potential users via 'virtual' ways thru fun & informative videos posted and shared in social media and 'real' ways: schools (e.g. Singapore Management University), museums (e.g. ArtScience Museum) & consumer electronic shows (e.g. SITEX, COMEX)
Lifestyle - with this campaign, Intel hopes to be a brand that eventually becomes part of its user's lifestyle not just in the technological aspect but more importantly associated in their daily activities.
Intelligent Heartware Connectivity
Overall Growth Strategy
Intel’s marketing campaign is just one of its strategies to compete in each relevant market segments, ultimately under the umbrella of the Internet of Things, for its overall growth strategy, Intel uses its core competencies in the design and manufacture of integrated circuits, as well as financial resources, global presence, brand recognition, and software development. It has the scale, capacity, and global reach to establish new technologies and respond to customers' needs quickly. Some of its key focus areas are as follows:
Customer Orientation
Its strategy focuses on developing the next generation of products based on the needs and expectations of customers. In turn, its products help enable the design and development of new form factors and usage models for businesses and consumers. It offers platforms that incorporate various components designed and configured to work together to provide an optimized computing solution compared to components that are used separately.
Architecture and Platforms
It focuses on improved energy-efficient performance for computing and communications systems and devices. Improved energy-efficient performance involves balancing improved performance with lower power consumption. Intel continues to develop multi-core microprocessors with an increasing number of cores, which enable improved multitasking and energy efficiency. In addition, meet the demands of new and evolving notebook, consumer electronics, and various embedded market segments, it offers and are continuing to develop specialized products that are designed to provide improved performance due to higher integration, lower power consumption, and smaller form factors.
Silicon and Manufacturing Technology Leadership
Intel’s strategy for developing microprocessors with improved performance is to synchronize the introduction of a new microarchitecture with improvements in silicon process technology. This coordinated schedule allows Intel to develop and introduce new products based on a common microarchitecture quickly, without waiting for the next generation of silicon process technology. This is referred to as Intel’s "tick-tock" technology development pace.
Business Environment and Software
Intel believes that it is well positioned in the technology industry to help drive innovation, foster collaboration, and promote industry standards that will yield innovation and improved technologies for users. Intel will plan to continue to cultivate new businesses and work to encourage the industry to offer products that take advantage of the latest market trends and usage models. Through its Software and Services Group, it is able to help enable and advance the computing ecosystem by providing development tools and support to help software developers create applications and operating systems that take advantage of its platforms.
Strategic Investments
Intel makes investments in companies around the world that it believes will generate financial returns, further their strategic objectives, and support their key business initiatives. Their investments, including those made through the Intel Capital program, generally focus on investing in companies and initiatives to stimulate growth in the digital economy, create new business opportunities for Intel, and expand global markets for its products. Currently, to set the stage for the Internet of Things, Intel has made key acquisitions, these include:
Havok: $110 million (2007) – computer software for digital media creators
Wind River Systems: $800 million (2009) – embedded system software portfolio
McAfee: $7.68 billion (2010) – security software company
Basis Science Inc.: $100 million (2014) – health-tracking wearable device maker
References:
Girdhar and Mallick. Study on Intel and AMD Point of Difference, Strategies, 2011.