AMD Case Final

Fin wholey, tender needs to switch the consumers fixation from specifications such as gigacycle and KGB, to opthalmic friendship. Although Llano is already delayed, it allow for be ready by mid-201 1 . The next selling cycle, flop after mid-2011 , is the Back to School season. This means that waiting until mid-2011 is non necessarily a bad thing. Intel already rushed out a CHIP+SPIN mainframe called Sandbagging in order to be the for the first time to market, and in doing so produced a mediocre product. According to analysts, Intel GAP technology is a generation thotocks its CPU technology and thunder mugnot Offer a outing-edge graphics experience. Unlike Intel, Mads strength is in dedicated Spies, paycapable to the acquisition of AT I. Therefore, gruesome can release a to a greater extent complete CHIP+ fragment processor, aka APP, in time for the Back-to-School season. Usually incentives are negotiated prior to each selling cycle Back-to- School, Holiday season, and Spring. demented can offer incentives to sell stores such as Best Buy, H. H. Gregg and Office Depot prior to the Back-to-School season. The incentives would welfare the retailers beca practice they would be paid an extra 5-10 dollars per PC sold, that contains wholeness of Mads chips. touchy would also benefit from giving retail incentives by getting more exposure on prominent displays, promotional merchandise available at the retail stores, PCs with MAD chips featured in ad circulars, and MAD would have access to sales associates for training purposes in return for the incentive. MAD specifically should have a combination of marketing and training because studies show that when merchandising and training are combined, the visual sense brand is bump communicated and recommended to customers via retail sales associates.For example, when comparing VISION awareness, merchandising Al wholeness scored 88%, whereas merchandising + Training scored 97%. For VISION recommendation, Merchandising Alone scored 46%, whereas Merchandising + Training scored 69%. The Fusion product railroad line consists of one high end product called Llano that was suited for high-performance desktops and laptops, one mid-tier product called acetate rayon suitable for low-end notebooks, and one low-end product called Ontario mainly used for notebooks. Acetate and Ontario were also referred to as Bravos.The reason why we choose to launch Llano first, and not Bravos, is because the VISION rand needs to be associated with quality processors and reasonable values in comparison to Intel. We assume that if MAD launches Bravos first, the VISION brand leave alone expelling the risk of being miscommunication as a low-end, weak processor and thus MIS-positioned in consumers minds, due to a negative first impression. In the past, MAD lacked the ability to court high-end markets, and VISIONs Llano is an attempt to break into high-end markets which give obtain MAD an opportunity for lar ger profit margins and market deal gains in PCs.Odessa said, Internal projections forecasted that Llano, which would coer all mainstream and high-end products, would account for 70% of Fusion APP sales and that Acetate and Ontario would account for 30%. Looking back at Mads history with Intel, the companies seem to al counselings have a response to one another, or a way to get back at each other. Whether it is by launching a better product, price-cutting, acquisitions, or hastiness products to the market, they usually respond within a year or two.For instance, when Intels Titanium failed because it could not service 32-bit package, MAD developed the Petrol, which could service both 64-bit and 32-bit software hush creating triumph for MAD. Part of its success was due to the particular that users did not have to buy new software packages for the processor, unlike Titanium which required new software and proved to be costly. We would rather have the Llano be like a repeat of the Petrol in comparison to Intels Sandbagging.This means that even though Intel went to market first with a CPU+SPIN processor, MAD can release a better APP about six months later, which is a relatively quick avenging to Intel when compared to their history. In order to not make the same mistake that Titanium did, we recommend MAD ark with heart and soul and software makers before launching Llano. Another important characteristic about Llano is that it needs to be able to function with both 64-bit and 32-bit programs. The plan is to release Llano with all a few major necessary software applications and programs optimized for 64- bit, so that the Llano APP can be ampley experienced by users.As mentioned in the depicted object, the lead time for optimizing applications was typically a yea. Releasing Llano with only a few optimized programs allows Llano to roll out in mid-2011. Also, the idea is that developers can create optimized software ever time, much like how Google Chromate wa s released with a few notable APS and has gained more oer time. Some programs we would optimize are Direct 1 1, Directorates, Photo and characterization editing APS, Adobe Acrobat. A large number of optimized programs and applications will come after Llanos debut.MAD should be concerned with improving relationships with Memos by not forcing the Memos to exclusively use MAD processors and logotypes, unlike Intel, which according to management used its dominant position to visit terms to Memos or peril not to work with them if they did not use Intel chips exclusively. By not imposing on Memos, MAD opens itself to being used by companies such as Apple, which prefers not to site other brands on its devices. MAD should continue following its new mark strategy VISION, which focuses on how the reckoner is used and not on how fast the computer can calculate excel spreadsheets. If we make the experience matter approximately, the VISION streak has done its job. Currently the convers ation between salespeople and consumers revolves around hardware specifications, but MAD wants the conversation to be about what the computer can do. MAD should define its CPU and JPG in simple terms that re straight front, unlike Intel which is very technical. Communicating the change from Intel style specifications to MAD visual experience will require in person demonstrations done by retail sales associates.Retail sales associates will carry out blind tests for consumers by showing shoppers two computers side by side, one with an Intel Sandbagging processor and the other with an MAD Fusion processor. Customers will then choose which computers they feel have the better graphics and visuals, from the demonstrations of the Intel vs.. MAD blind test. Another way to communicate to consumers that MAD APP processors are better, not only for use of Excel but also for visuals, is to show them an experience comparison with the competitor in this case it is Intel.The VISION bonk Comparison would be signage that translates industry monetary stock specification lingo it would show that Intels processor is equal to choppy, fixated gamely, whereas Amid APP is equal to vivid, clean, smooth game play. The VISION Experience Comparisons would be displayed on the retailers shelf, where the specifications are typically shown for each computer. The VISION Experience Comparisons would only be splayed for computers that contain MAD Paps. Strategy 1 adjoin Apes for new form factors such as smoothness and birth control pills to the Fusion product line.Create relationships and incentive Memos to use the smartened and tablet APES. Rationale 1 The Fusion line currently consists of three different processors Llano, Acetate, and Ontario. Each processor in the Fusion line is geared toward a certain type of PC. For example, Llano is for powerful desktops and laptops, whereas Acetate is for low-end notebooks. Ontario is for notebooks. The Fusion line up competes with Intels Core produc t line nicely. One area of concern is new form factors, such as tablets and smoothness. Currently, Intel is selling the Atom for tablets and smoothness.MAD should intromit an APP that can service these tablets and smoothness, as well. Looking at the competitive landscape, one can see that tablets and smoothness are under great demand from consumers. Apples phone has had major success since 2007 and pads, which were recently released in April 201 0, have shown strong sales. MAD has the ability and should position itself in the tablet and smartened markets as a graphically strong PAPAL maker. It is in Mads best interest to become an industry standard for smoothness and tablets. MAD can do this by creating good relationships with manufacturers through flexible deals.For example, MAD will not require Apple to show MAD labels or intelligence on its products. Also, MAD will strive to have better prices than Intel. In addition, since some of the smartened Memos are also the same companie s that create PCs, MAD can offer bundles. For example, if the same MEMO uses MAD processors in both desktops and smoothness, MAD could Offer a larger discount on advertising or products. Strategy 2 Keep Mads VISION marketing strategy, but include a marketing campaign victimisation various media to better portray the VISION marketing strategy.In addition, improve retail and Memos relationship with MAD, to further increase sales. Rationale 2 Mads new branding strategy for the introduction of the integrated CHIP/ SPIN, VISION, focuses on consumers experience, visuals, and graphics instead of concentrating on the specifications, speed, and numbers a computer may have. The MAD PC purchasing study showed, consumers want a simple, straight forward way to compare and choose computers, which indicates hat most consumers are more concerned with what the computer does, over what is inside Of it.An example Off circular ad featuring VISION is provided in the case however, it only shows specific ations on the MAD processor found inside the Notebooks, completely omitting the message of the VISION strategy. The idea is to provide customers with the most important specifications and also integrate the message, the experience matters most. For the Fusion processor, customers would want to experience HAD quality video online gaming, enhanced video and photo viewing, high performance photo editing, and AD gaming. This would be a more social, recreational use for a computer or notebook.The new Vision marketing strategy would include a marketing campaign that involves an initiative to change the consumer message throughout various types of media. The campaign will communicate to consumers that MAD APP processors are better, not only for use of Excel, but also for visuals. The ads in the campaign will show consumers a direct comparison with the competitor, in this case Intel. The campaign will be called the VISION Experience Comparison. The VISION Experience Comparison itself would include ads hat show translations of industry standard specification lingo.For example, the ads will demonstrate that Intels processor is equal to choppy, fixated gamely, whereas Mads APP is equal to vivid, clean, smooth game play. The campaign will be in use two months before each Computer selling cycle. For instance, VISION Experience Comparison commercials will be displayed most heavily two months before the Back-to-School cycle, in order to soften demand. Marketing strategy is important, but relationships with retailers and Memos are also crucial in order for MAD to put up its new APP processor to ND-users.Intel has the lead on MAD when it comes to MEMO relationships Intel goes as far as using threats as one of its partnership strategies by making Memos deal exclusively with them. MAD needs to use a non- threatening strategic partnership make deals with Memos by not forcing them to place Mads VISION logo on its devices. For example, Apple hasnt allowed Intel to place a logo on its computers and the company has the most market share for notebooks over $1000. This means that MAD has the opportunity to make a business deal with a top tier computer brand like Apple.This is cause MAD will not threaten to not cooperate with Apple, in case Apple does not wish to display MAD logos on its devices. MAD should partner with leading Memos such as Hewlett-Packard and Dell Inc. , which have the lead in sales over Leno and Acre as seen on Exhibit 4 of the case. By introducing incentives, MAD could make itself more appealing to Memos. As mentioned in the case, MAD can offer Memos 75% refund on full price of all print ads if Memos use the VISION brand. Instead of reimbursing HP 3-5% of the purchase price of the chip, MAD could raise the percentage to 10%, making the deal appear more appealing to Memos.