Maximizing partner base has always been top priority for any vendor aspiring to emerge as the market leader. Several companies have taken the route to aggressive marketing and pillaging competitors' partner network in this aspect with mixed responses over a period of time

Last year, one of the major PC vendors changed its marketing strategies altogether, venturing into the channel sales policy which it had so long despised. The move clearly states how important a channel network of the partner is and how it can pull up or push down the sales.

Focusing on the channel community and maintaining its balance, channel maximization, has, however, not been the focus with Intel Corporation in India. Although the vendor is strong in channel sales with its total business being routed through the channels, Intel is not keen on spending volumes just maximizing its presence.

With one of its closest competitors, recently moving aggressively in channel space, Intel is on a bid to focus more on consolidating and streng­thening its base rather than merely expanding it.

Ashok Nair South Asia Channel Business Manager

An Introduction
Originating in the USA way back in 1968, Integrated Electronics has been through several distinct phases. In the primary stage, Intel was distinguished simply by its ability to make semiconductors with its primary products featuring as the static random access memory (SRAM) chips. The company grew during the 1970s as it expanded and improved its manufacturing processes and produced a wider range of products, still dominated by various memory devices.

The company is credited to have built the first microprocessor (Intel 4004) in 1971 and one of the first microcomputers in 1972. By the early 1980s, its business was dominated by dynamic random access memory chips. However, the company soon shifted its focus to microprocessors, changing some fundamental aspects of the business model. After 2000, as growth in demand for high-end microprocessors slowed down and competitors garnered significant marketshare, initially in low-end and mid-range processors, Intel's dominant position was reduced. In the early 2000s the
then-CEO Craig Barrett attempted to diversify the company's business beyond semiconductors, but few of these activities were ultimately successful.

The Channel Structure
Following the common model of a 3-tier segment, Intel follows a tri-linear model of partner base. The company has three partner levels: Elite, Associate and Registered. Intel has also claimed that the company conducts its total business through the channels.

Registered partner base is the most common for the company with more than 10,000 partners across India working with the company. The second level accounts for the Associate partners. The Elite level comprises the company's most prized partners which members to nearly 100 across the nation. Although clear sales targets accounts for the basis of a partners promotion from level 1 to level 3, mere box pushing is not the sole criteria of climbing the ladder. Aspiring to incorporate only quality partners in its fold, the company also revises the partners profile in the market with his resources and the knowledge in the field of business and the technology that one deals in.

The Channel Team
Drawing up the boundary line is not only applicable for its channel partners, the same thumb rule applies for its channel sales team too. The company has clearly demarcated zones of operation and sales across the nation clearly dividing the nation into four corners incorporating foreign nations like Sri Lanka, Nepal and Bangladesh in the four zones.

On top of the channel team lies the Country Manager. One Sales Director and MD is next in the hierarchy who heads the two divisions. The marketing division is headed by Prakash Bagri. In the Zone level, Intel has appointed Zonal Directors who are responsible for those districts. Further down the line, Channel Account Managers are appointed who are in charge of the individual markets within the regions responsible for managing the actual accounts.

Broadly, the Directors who look after the different regions are; Rajesh Gupta heading the West, B Suryanarayanan heading the South and Sandeep Aurora in charge of the North division.

The Channel Strategy
Growth in the channel is always a top priority for Intel. However, the company is not involved in mere box pushing and sales target criteria. Here, deciding on the partner growth as well as sales maximization, the company has framed multiple training programs and growth strategies to build focus on channel partners to develop a niche in a particular segment or technical quality of operation.

The company endorses the Intel Channel Conference (ICC) which is one of the largest events in the IT fraternity in the entire nation. In the ICC, the company primarily targets to enhance the technical knowledge of its partners throughout the entire nation also focusing on building a well-knit array of channel networks.

The Road Ahead
Intel seems to be satisfied with the performance it has recorded over the years. As the company's primary strategy incorporates training programs and the Flex strategy, the company is always under the process of working on its technical aspects.

Also, the company has extensive support programs for its partners. Having a chain of 'walk-in' centers in 11 cities for its partners the company provides product replacement schemes and offers Advanced Warranty support to its tier-1 and 2 partners. For the time being, it seems that the company is not heading towards any major policy changes or restructuring of the process.

As told to Avishek Rakshit by Ashok Nair, South Asia Channel Business Manager
avishekr@cybermedia.co.in

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