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Intel to Focus on Small Cities
By
Pallabika Ganguly
Mumbai, Jun 24, 2008
Intel has launched Atom processors to serve the new category of low-cost, Internet-centric mobile computing devices dubbed netbooks, and desktop PCs dubbed nettops. In an exclusive interview with ChannelTimes, Rajesh Gupta, director - Marketing and Sales, Intel (South Asia), speaks to Pallabika Ganguly about the company's latest marketing campaign, utility and the company's warranty programs. Excerpts...
What's the significance of 45nm technology?
The semiconductor business faces two challenges - to develop a design that is internally connected to the circuit diagram or logic, and to shrink the size for efficiency. Bigger the wafer size, more number of chips can be cut in each process - making it highly economical. While industry's general practice is to use 200mm wafer size, Intel moved to 300mm wafer size around 3-4 years back.
We had launched core 2 Duo at 65nm and in a bid to raise its performance level, we had to shrink the same logic to raise the speed from 2GHz to 2.4GHz/2.5 GHz. Hence, we came up with 45nm technology. By the year-end, nearly 70% of our products will have the 45nm technology. By reducing the chip size, Intel can now cut more number of chips from each wafer.
What strategy has been adopted to expand the sale of Atom in smaller cities?
We are increasing our focus on tier 3, 4 and 5 cities. Last year, we had launched a new programme - Hinterland Program - for these cities.
The programme highlights our idea to venture into small cities with the hub-and-spoke distribution paradigm. In this, a major industrial city acts as a hub with connected small cities benefiting from it, and arranged around it like the spokes of a wheel. We are also using the local language to interact with the customers in every region.
For instance, we identified Ahmedabad or Rajkot as a hub and Jamnagar and Bhavnagar as spokes. Although, the model is primarily focused from the dealers' perspective, we also wish to bring customers to the main stream.
How will you market the Atom processor in India?
Our newly-launched Atom processor opens a new category of products or a new segment. However, our marketing plans will remain same as before. We follow four simple steps:
1. Create awareness among people about new technology. The marketing process for this product is still in the initial stage, and will take some time to implement thoroughly.
2. We will also try some globally implemented models, which we hope to fetch success in India too.
3. We will also try to use the existing ecosystem to take our product to the market. If they fail, we will implement a new delivery system.
4. We will educate channel partners on one side and consumers on the other, about the product.
Finding key vendors for our products and solutions in India is our biggest challenge.
A good graphics card can do a lot even with a low capacity processor. What's your take on this?
PC market is not a homogenous market. We have been serving to different category of people for the past 30 years. This message is for a specific segment of customers and it does not apply to the other sectors. Intel is not in the business of graphics.
Are there any plans to change the warranty scheme structure?
Till now, we are following a robust model of warranty system. We are offering product services through our Chennai repair center under the warranty guidelines. Intel offers international warranty on its products. However, soon we will be changing the warranty structure - particularly in the box CPUs. For the products that are not purchased in India, the consumers will have to pay the shipment cost from the place where they had purchased. We will honor the international warranty, but it will be from the point of purchase.
For example, if a product is purchased in Dubai and the customer demands its warranty here, we will get the replacement. But the customer has to pay all transaction charges from Dubai to India. We wish to create transparent customer services, and vow to offer better services to our Indian customers.
What are your plans to meet the emerging market competition?
We are enjoying an 85% of the market share. We have created our own identity by delivering true and quality services to our customers. Many times, products are launched only on the paper. But in our case, we take them to the end-users. Very soon, we will come out with 35nm technology, when others are struggling with 45nm.
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WE ARE NOT AT ALL AGREE WITH UPCOUNTRY FOCUS MATTER FROM INTEL SIDE BECAUSE TILL TODAY WE HAD NOT SEEN SUCH POLICIES FOR UPCOUNTRY. SECONDLY INTEL HAD STARTED CONSUMABLES PARTIES TO PROMOTE THEIR PRODUCT !!!!!!!!!
TILL TODAY UPCOUNTRY HAD TO PURCHASE FROM OTHER THEN DISTRIBUTOR ONLY.WE ARE INTO THIS BUSINESS SINCE 13 YEARS BUT TILL TODAY NO GOOD SCHEME FOR UPCOUNTRY, NO PROPER FOCUS ON UPCOUNTRY .
WE HAD GIVEN SOME FEEDBACK TO MR TANVEER OF INTEL PERSON SINCE 4 MONTHS BUT TILL TODAY RESULT IS ZERO.
AND YES WE ARE AGREE ON GOOD QUALITY GRAPHICS CARDS DO A LOT EVEN ON LOW CAPACITY PROCESSOR. JUST CHECK SEMPRON PROCESSO WITH ASUS M2N AND GOOD QUALITY GRAPHICS CARD, GIVES BEST PERFORMANCE. |
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- JASMIN KAMDAR,
BINARY SYSTEMS, JAMNAGAR
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We are intrested. |
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- C.B.Pandey,
DIGI SERV, Durgapur
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sir,
Intel use to best in its product.We are interested in becoming its distrbution channel.Kindly provide requiremnt for intel distribution channel |
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- Rakesh Kumar,
Agarwal Singhal, agra
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I would say that Intel plan is like the tiger behind the sheep skin. When they want to sell new technologies, which is beneficial only to Intel and third world countries, they will look at b,c & e class cities. When sufficient numbers are achieved, they will give the sub-distribution to some sub-distis in a & b class which serves the dual purpose of making money and dumping the poor small dealers who puts in effort to bring out new products and technologies. This attitude can be very evident from his evasive and wrong answer on the Graphics card part. |
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- Harikrishnan,
Alltime Power T, Cochin
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