Intel is the leader in the microprocessor (chip) market by a very large margin. But it is not complacent. As the leader, it is Intel’s responsibility to grow the market, especially in emerging countries like India. Intel Corporation Global Vice-president (sales and marketing group) & Director (marketing strategy and campaigns) Nancy Bhagat and Intel South Asia Director (marketing) Sandeep Aurora discuss their plan to connect with the Indian audience with Preeti Khicha.
What does the Intel brand stand for?
Bhagat: At the very highest level, the Intel brand is about bringing things to life and we would like to use the phrase — ‘amazing things happen with Intel’. Traditionally, this has been limited to the PC and notebook space, but as we expand our technology and move into new types of devices and markets, we are finding that Intel can bring amazing things to life in smart phones, TVs and cars… so it is really an exciting time for us.
The latest campaign for Intel — Sponsors of Tomorrow — was developed with the intent of capturing what Intel truly does. Consumers do not really know about all the technology that we develop in the lab. Also many of the devices that our partners bring out are based on ideas that come from Intel. However, the brand not only stands for technology, research and innovation but also leadership. We are committed towards people and that is reflected in our focus on education.
How close is Intel to becoming a generic brand?
Bhagat: I don’t think we are generic at all. At Intel, we have challenges because we are an ingredient brand — we are inside computers and PCs; so people don’t see us. However, awareness of Intel around the world, including India, is very high. One of our challenges now is to not only let people know the brand, but to think about us in a way that is primary, and not secondary. This is particularly in markets where people are buying laptops and computers for the first time. So if people are looking for a PC, they look for one which has Intel inside. They should believe that Intel will be able to bring us the best that we can possibly afford.
However, we are lucky that we are starting from a very strong place. Our awareness is close to 80 per cent with people here in India. If it was a brand that consumers have never heard of, it would be much harder.
What percentage of Intel’s advertising and marketing budget do you assign to India?
Bhagat: India features on our top-five list of important countries. This is not just from an advertising and marketing point of view but also everything we do as a company. Other markets on this list include China, Brazil, US and Germany.
Is the advertising strategy for India different from the US? How do you adapt to India?
Bhagat: We have a strategy globally, but it is very important that we find common ground. We work closely to ensure that our advertising is relevant in each market. India is a vibrant market of passion and capability and we want to bring that alive in our communication.
Aurora: For example, in the Sponsors of Tomorrow campaign, we used an Indian talent, Ajay Bhatt, which was a huge hit in India. It showcases two things: Intel’s innovation and the ability to bring in new products, and the contribution that Indians are making in the technology industry. This resonated very well with Indian people. Also we do region- specific campaigns. For example, during Diwali, our communication was around the festive season. The advertising communicated what is a good PC to buy during the holiday season.
However, the key thing is that we don’t want in any way to dilute our core messaging and what the Intel brand stands for. So when consumers see an Intel logo anywhere on a PC, it is the same level of trust that we are generating worldwide. And that’s important because we make products that get shipped globally and are used globally.
Bhagat: It is not only communicating our brand directly with consumers, but also working with our partners which include a broad group of people. This includes people that make a PC (for example, Dell and Lenovo) to software vendors like Microsoft. We work with vendors at the global level, but local relationships are also very critical to us. We believe that our relationships with consumers and partners will strengthen as we continue to show value. What is your strategy for rural markets?
Aurora: I think there are two sets of markets. One is where you are speaking to consumers about what you should look for when buying a PC and the other is the rural consumer who is not even aware of PC as a category. In cities you see a lot of one-on-one computing where consumers buy a laptop for personal use. In villages, India is starting with the shared computing model where computers are available through the common service centres which the government initiates. Currently, 200,000 of them have already been launched. Rural consumers are still getting used to technology first-hand. Intel’s focus is on educating rural consumers on PC usage and how technology can help change their lives. We do joint programmes with the government to help reach out. For example, helping them discover how technology can help them learn about the price of grain so that they are not cheated by middlemen.
Do you do any joint marketing programmes with original equipment manufacturers (OEMs)?
Aurora: Yes, we have a global marketing programme because we are an ingredient brand. India is no exception. Here we work with OEMs to create the marketing programme. We also have a programme for local OEMs like HCL, Zenith and Wipro. In India, 30 to 40 per cent of the market gets serviced by channels which assemble the PC and there is a programme even for them. They are given a marketing development fund which they can use to promote their brand in their particular area.
Given that consumers can’t touch and feel our product, it is important for us to train retailers and channel partners about what a PC does and communicate the benefits of the different products to the consumer. We spend a lot of energy and resources in training the entire eco-system of partners.
In terms of going to schools, what success have you seen?
Aurora: In India we have trained over a million teachers in the last 7 to 10 years. The objective of the Intel Education Programme is to make technology understandable. The key problem is that when teachers were studying, they never used PCs in schools and hence they are not comfortable using them. For this reason they don’t encourage children to use PCs. The training programme not only trains teachers on how to use programs on a PC (example, Word and Excel) but also shows them how to use the PC as a tool that aids them while teaching.
Now, teachers not only use the PC as a tool for teaching but they also encourage children. Several schools post their homework on websites which kids can download at home. Parents too can go online and track their child’s progress. Technology is slowly revolutionising the way we study. So for Indian students to become successful in the future (as they join the global workforce), it is important to ensure that teachers get trained. We have worked very closely with state governments in promoting this initiative. For example, we train people from the government-side who in turn train the teachers. It is a sort of viral message which spreads.
Have you done any work on the social media platform?
Bhagat: Social media is extremely important and this is something that we are focused on for the last couple of years. In fact, we have an internal training class called Digital IQ. Unless we are knowledgeable about being online or blogging, we can’t use it effectively as marketers. Facebook is incredibly important to us and we are looking to launch some new programmes next year.
Are there unique things you have done in global markets that you want to bring to the emerging markets like India?
Aurora: In India, we have done some interesting programmes that are strategic and integrated. We tied up with PVR Cinemas to air a special communication during a movie break. The communication features some of DreamWorks’ leading characters like the Madagascar Penguins. It was played across 250 screens through the month of November in both English and Hindi. To complement the screening, there was advertising on ticket jackets, ticket counters and popcorn tubs. This is a marketing innovation that we saw in India and we might take it to global markets.
Bhagat: We have also done innovative things around the world like The Creators Project where Intel works with a publishing company that focuses on creative people — it could be a musician, a fashion designer or an architect. The website is co-sponsored by Intel and works with different artists around the world that use technology or have love and appreciation for it. Artists can display content and videos online. We later extended this in several countries like London, US, Korea and China, and held events to showcase this work. The objective is to bring creative people together on a website, so that people can access it. We are looking to extend this to new markets and India might be on the list.
What has been your key learning from India?
Bhagat: In India, we realised it is not just about training, but also about access to our products. Over the last few years, we introduced a product called the netbook which has a different processor and is less expensive. This allows people to buy a computer and have access to the Internet, when they otherwise would not be able to afford a bigger computer. Besides access to the product, it is also about having access to bandwidth. We are working with the government, service providers and telecommunication companies to facilitate this.
From India, we learnt that it is not just about producing a product that people will buy, but also about understanding the nature of the market and its challenges. Our aim is to influence and provide solutions.
Aurora: A key thing to note is that from a PC penetration standpoint, India is at the level where it is going to take off. The next four or five years are going to be huge in terms of growth, especially for the PC category including desktops, laptops, netbooks and so on. With the BWA auctions done and the rollout of 4G, affordable broadband will become available across India. As people begin using true broadband, they will realise the true benefits of a connected PC, and the whole revolution of adopting PCs even more will begin. We believe this is the start of a huge curve for India.
How important is India for Intel?
Bhagat: I am married to an Indian (laughs…), so it is certainly important!
India is an incredible market — a growing and influential market. The role India is playing in the global stage is continuing to become more and more important. We believe that India is a market of potential, where people are aspiring for better lives, and they realise that technology is helping them. Access to the Internet is helping kids do better in school. Our focus is on working with the government to help bring computers in people’s hands. Also, in the area of education around technology, we believe the opportunity is tremendous.
India is poised to create the future in many ways and that is what excites us. We want to partner with India to make this happen. We want to be top-of-mind, and hence we have a long-term commitment for India. We have increased our marketing investment in India over the last couple of years, and in the next few years we will continue on this journey.
