Case Analysis of Intel Corporation: Going into Overdrive By: Kamal Syal PGDM 11 02 B54 Problem Recognition: 1.

Commercialization of Intels Overdrive processor (When, Where, To Whom and How) 2. How to design Marketing mix of Intel(factors they should consider before launching of Overdrive processor) 3. What kind of Marketing Strategy should be adopted BY INTEL? 4. How to position Overdrive processor with respect to MPG? 5. What kind of distribution channels should be adopted by INTEL? 6. Mechanical Compatibility of Intel Overdrive processor? 7. Logical Compatibility of Intel Overdrive processor? 8. What will be the Impact of Overdrive on MPG business? 9. How to apply Overdrive processor concept to all the three lines of Intel 486 series? 10. Are Overdrive processors easy to install? 11. What kind of Innovation can take place at regular intervals to gain competitive advantage? 12. Organizing new product development. Recommendations: Although Intels has good reputation and brand name in market, still they have to resolve the above factors for the successful launch of overdrive processors. We will cover the above factors step by step and try to resolve all the issues with respect to Over Drive Processors. 1. Commercialization of Intels Overdrive processor (When, Where, To Whom and How): When: Market entry time is very critical, it should not conflict with MPG business. So, they should enter into the market as the first entrant rather than being a parallel entrant or late entrant. They should launch Overdrive processor in May 1992 after the launch of DX2 in March 1992. Where: Intel Corporation should decide whether to launch the new product in a region, several regions, national market, and International market. My suggestion is that Intel should launch its product in USA and Japan first and then expand it globally. USA 1. OEMs like dell and gateways who have indicated their desire to sell the Overdrives through their channels. 2.40 direct accounts 3. National distributors, regional distributors, direct resellers, superstores etc. Japan 1. System Manufacturers 2. Direct Resellers. Europe 1. Distributors. To Whom: MIS managers IT Clients Users Need high speed Computing

How: A proper action plan should be develop before launching Overdrive processors into the markets.Oftenly, new product launches take longer and cost more money then expected. So, INTEL should properly allocate its time and resources.

2. Marketing mix of INTEL Overdrive Processor: 1. Product: Who is the product aimed at? Overtime processor is especially for IT clients (MIS managers) and for those users who want doubling speed of the computer. What benefit will customers expect? 1. Fast speed. 2. Better performance. 3. Easy upgradations. 4. After Sales Support. 5. Easy to install. How does the INTEL plan to position the Overdrive processor within the market? They will position themselves by creating category membership and a cost effective product which will not only double the speed of processor but also cater the needs of MIS managers globally. What differential advantages will the Overdrive processors (Product) offers over their competitors? Features Form Reparability Customization Delivery Installation Customer Consulting Ordering Ease

2. Price: Overdrive processors should be kept at minimal cost may be around 500$-600$ range , so that it becomes cheaper than the end user other options. 3. Place: Intel Corporation should decide whether to launch the new product in a region, several regions, national market, and International market. My suggestion is that Intel should launch its product in USA and Japan first and then expand it globally. 4. Promotion: They should adopt all the following measures in order to successfully launch a product.

3. Marketing Strategy: Intel should consider marketing strategy in which the marketing mix is used to attract and satisfy the target market(s) and accomplish an organization's objectives. Specifically, Intel Corporation marketing strategy should consider the following factors: Environment analysis and marketing research Consumer analysis Product planning (including services, and ideas) Distribution planning Promotion planning Price planning 4. Positioning: They should position themselves as a different product with respect to MPG business not as a substitute product and should take into account that Overdrive should not affect the MPG business. They should segment their product as a niche product and position themselves as the first time entrant of Overdrive Processors. 5. Distribution channels which should be adopted by INTEL: Distribution should take place regionally .It should first enter the USA market and if product results out to be success, then it should penetrate into global market. USA 1. OEMs like dell and gateways who have indicated their desire to sell the Overdrives through their channels. 2.40 direct accounts 3. National distributors, regional distributors, direct resellers, superstores etc. Japan 1. System Manufacturers 2. Direct Resellers. Europe 1. Distributors. 6. Mechanical Compatibility of Intel Overdrive processor? Overdrive processor should successfully pass the test for heat emission, air flows, heat sinks and insertion forces. This will not only be helpful in proper running of processors but also be a added competitive advantage with respect to Down market OEMs 7. Logical Compatibility of Intel Overdrive processor? Overdrive processor should have wider windows of tolerance and window must have a large enough overlap for the PC to work efficiently.

8. What will be the Impact of Overdrive on MPG business? Impact of overdrive processors should have a minimal effect on MPG business. This can be done by targeting and positioning yourself as a complete new niche market which will cater needs of specific group of people. Although MPG business will get affected by the launch of Overdrive processor. 9. How to apply Overdrive processor concept to all the three lines of Intel 486 series? Intel Overdrive processor should firstly be applied to DX2 which will be followed by SX AND then by DX. DX2 has just entered into the market and if overdrive processor is added to it, it will definitely add value to the product.DX2 has got all the functions and features which will support Overdrive Processor. 10. Are Overdrive processors easy to install? From Exhibit-7, we can easily conclude that Overdrive processors were easy to install Its a 7-step operation and anyone can install an Overdrive processor by itself. Upgradations are also important part for any processor. One can easily upgrade the display, add in modules to accomplish specific tasks, easily add memory and can even upgrade the CPU in Overdrive Processor. 11. What kind of Innovation can take place at regular intervals to gain competitive advantage? Any product need to be innovated after certain time interval. So, Intel should innovate after every 2-3 years in order to sustain the competitive advantage and luxury position in the market. Presently, they are in the Niche Market but at certain point of time imitators will come across (AMD) and successful launch their product. So innovation of processor should take place after every 2-3 years. Overdrive Processors should have below characteristics: 1. Relative Advantage 2. Compatability 3. Complexity 4. Divisibility 5. Communicability. Conclusion Based on the above recommendations, I would conclude that Overtime processor should come in market at a proper time frame and all the above factors should be taken into recommendation before successful launch INTEL Overdrive processor.