Abstract

This case is about the consumer and channel marketing initiatives adopted by Sunnyvale, California-based chipmaker, Advanced Micro Devices (AMD). Unlike its arch-rival Intel Corporation (Intel), which marketed its microprocessors to the consumers through several noteworthy marketing campaigns, AMD did not market its microprocessors extensively to the consumers. The most notable marketing campaign launched by AMD was the ‘AMD Me’ campaign launched in 2002. It launched the AMD Commercial Channel Access Program in 2005 to meet the business needs of its partners. In 2009, the company launched the ‘Vision’ campaign that sought to make the PC buying process easier for consumers. It extended its channel marketing initiatives by launching the Fusion Partner Program in 2009. Through this program, AMD sought to offer its partners customized tools and resources to boost their sales depending on their inimitable business models. AMD’s focus on marketing received appreciation from industry observers, experts, and channel partners. They felt that though AMD lagged behind Intel in marketing, it was making efforts to wean away a significant portion of the market share from the market leader by launching new technological solutions and effective marketing initiatives catering to both consumers and its channel partners. Experts felt that AMD was prepared to take on Intel aggressively in 2010 and beyond, but opined that the company still had a long way to go in order to catch up with Intel, which dominated the market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges in marketing/branding a component or ingredient branding
• Analyze the consumer marketing initiative of AMD, particularly its Vision Campaign that sought to simplify the PC buying decision of consumers
• Analyze the channel marketing initiatives adopted by AMD, particularly its new Fusion Partner Program
• Understand the nature of the semiconductor industry and the competition in this market. Explore further branding strategies that AMD could adopt to garner more market share and enhance its competitive position.

Keywords

Component branding, Channel marketing, B2B marketing, Behavioral segmentation, Fusion Partner Program, Consumer marketing, branding, advertising, Vision Campaign, Value-added resellers, OEM, channel partnerships, global channel marketing, AMD, Intel