COMPARATIVE RESPONSE MATRIX

Marketing Management – I

Individual Assignment - I

Name – Nikhil Kochrekar

Roll Number - 221528
Programme – Master of Business Administration (FT)
Section – E
Submitted to Prof. Meeta Munshi
Table of Contents

Comparative Response Matrix ............................................................................................... 2

Objective ............................................................................................................................................. 3
Comparative response matrix
Intel vs AMD (Advanced Micro Devices) ............................................................................. 4
Timeline Infographics ............................................................................................................... 6
Price v/s Price (Cp,p) ............................................................................................................... 8
Intel Core i7-7700K v/s AMD Ryzen 7 1700X.................................................................................. 8
Quality v/s Quality (Cq,q)........................................................................................................ 9
Core i9-10900K v/s AMD Ryzen 9 5900X........................................................................................ 9
Advertisement v/s Advertisement (Ca,a) ............................................................................. 10
“Intel Inside” v/s “AMD Me” ........................................................................................................ 10
Price v/s Quality (Cp,q) ......................................................................................................... 11
Intel’s i9-12900K v/s AMD Ryzen 5 7600X.................................................................................... 11
Advertisement v/s Quality (Ca,q) ......................................................................................... 12
Jim Parsons Ad Campaign v/s Zen 1st Gen Processors................................................................. 12
Price v/s Advertisement (Cp,a) ............................................................................................. 13
Intel lowers 9th gen prices v/s AMD increases advertising budget.............................................. 13
Advertisement v/s Price (Ca,p) ............................................................................................. 14
Intel’s drone performance v/s AMD’s massive price cuts............................................................ 14
Quality v/s Price (Cq,p) ......................................................................................................... 15
Intel Core i7-11700K v/s Ryzen 5 5600G....................................................................................... 15
Advertisement v/s Quality (Ca,q) ......................................................................................... 16
Intel’s i9 12900KF v/s AMD’s Increased Marketing Spend............................................................ 16
Conclusion .............................................................................................................................. 17
Works Cited ........................................................................................................................... 18

1|Page
 Comparative Response Matrix

COMPARATIVE RESPONSE MATRIX

Company A Action

Price Quality Advertising

Company B Price Cp,p Cq,p Ca,p
Reaction Quality Cp,q Cq,q Ca,q

Advertising Cp,a Cq,a Ca,a

Total 1.0 1.0 1.0

(P – Price, Q – Quality, A – Advertisement Expense) Fig.1

In today’s world the competition among organisations is so fierce that every organisation is
trying to one up each other. Businesses want to stay ahead of the curve and outclass their
competitors. Currently, the trends, deregulations, advancement in technology, etc has become
so fast paced that businesses have to be prepared for anything, specifically competitors’
response to their business and marketing strategies. This is where the various aspects of
marketing mix come into play, Comparative response matrix assists businesses to put together
and integrate various characteristics of marketing mix to achieve an edge over their
competitors. Comparative response matrix is resilient and efficient mechanism for the top
management and marketing personnel. It helps businesses to anticipate the reaction of their
competitors to any of their own business strategies. This order of action-reaction is easier to
envision with the assistance of Comparative response matrix. “Every action has an equal and
opposite reaction” stands true in this context as well. There are three key elements in the
Comparative response matrix.

➢ Price
➢ Quality
➢ Advertising

The model further bifurcates into 9 specific instances that demonstrate the subcategories that
are weighed in conformity with Company A's activity and Company B's response. Fig. 1 shows
us the three key elements of Comparative Response Matrix i.e., price denoted by ‘p’, quality
denoted by ‘q’ and finally advertisement denoted by ‘a’. ‘C’ is the coefficient that denotes the
likelihood and probability that how Company B will respond with respect to Company A’s

2|Page
strategy which utilizes one of the above three aspects of the Comparative response matrix. For
e.g., the Cp,p cell shows that if company A changes the price (action) of its product then
company B will respond in a similar fashion by changing the price (reaction) of its product to
stay Comparative. This holds true for any changes to the three factors of price, quality, and
advertising. Once the matrix is created, it can be used to gauge competition responses and
develop relevant marketing tactics.

Objectives

The goal of this assignment is to analyse the matrix that will enable us to better understand:
How do the businesses respond to the competition from their rivals? How successful will the
outcomes of their tactics be? These inquiries will assist the business in creating analogies that
will help them gain market share, increase revenue and stay Comparative.

3|Page
 Comparative response matrix Intel vs AMD (Advanced Micro Devices)

Intel Corp., U.S. manufacturer of semiconductor computer circuits. Robert Noyce and
Gordon Moore, the creators of the integrated circuit, established Intel as NM Electronics in
1968 with the goal of producing large-scale integrated (LSI) circuits. It first launched the
most potent semiconductor chips then available in the early 1970s, which quickly took the
place of the magnetic cores formerly used in computer memories. In 1978, Intel produced the
8088 microprocessor, which IBM selected to utilise in its first personal computer (the IBM
PC). After that, Intel microprocessors were adopted as the industry standard for all PC-type
devices. Even when other producers created microprocessors that were compatible with Intel,
more than 80% of PCs still used Intel.

Advanced Micro Devices, Inc. (AMD), is a multinational corporation with a focus on

producing semiconductors for use in high performance computing. The company also
manufactures motherboard chip sets, flash memory, graphics processors, and a wide range of
other parts for consumer electronics products. The business is a significant provider of
microprocessors (computer chips). California's Santa Clara is home to AMD.

4|Page
Comparative response matrix Intel vs AMD (Advanced Micro Devices)

5|Page
 “Intel Inside” ad
campaign.
2001

“AMD Me” ad
2002 campaign.
“Intel Inside” ad
Intel’s ad ’ campaign.
campaign with Jim 2016
Parsons.

AMD launches 1st

2017 Gen Zen
microarchitecture.

Intel launches core

i7-7700k and later 2017
reduces its price.

AMD cuts down on

2017 Ryzen 1700X price
to counter intel.

Intel’s Guiness ’
record breaking 2018
drone performance
at winter olympics.

AMD drops prices

of Ryzen 3,5 & 7
2018 series processors
by 30%.

6|Page
Intel lowers prices
of 9th gen 2019
processors.

AMD increases
2019 their advertising
spend.

Intel launches core

i9-10900K. 2020

AMD launches
2020 Ryzen 9 5900X.

2
Intel releases i7-
11700K. 2021

AMD releases
2021 Ryzen 5 5600G.

Core i9-12900KF is
launched by intel. 2021

AMD increases its

2022 marketing spend
by 45%.

2
Intel launches i9-
12900K. 2022
\2
AMD announces
2022 Ryzen 9 7950X and
Ryzen 9 7900X

7|Page
 Price v/s Price (Cp,p)
Intel Core i7-7700K v/s AMD Ryzen 7 1700X

Intel has always been at the forefront of semiconductor computer circuits manufacturing, but
AMD has been trying to catch up with intel’s predominance and has been successful to bridge
the gap slowly.
Intel’s Core i7-7700K was launched on January 3rd, 2017. At the time of the launch, it was
priced at $350. This processor was made using Intel's new and enhanced 14nm+ manufacturing
process and was built on the Kaby Lake microarchitecture. On March 2nd, 2017, exactly after
2 months from Intel’s Core i7-7700K release date, AMD launched Ryzen 7 1700X to compete
with Intel’s Core i7-7700K. AMD’s Ryzen 7 1700X was priced at $399 when it was released,
roughly 14% higher in price than Intel’s i7-7700K. Later in November 2017, Intel acted and
decided to drop i7-7700K’s price from $350 to $289, to which AMD reacted by decreasing
the price of Ryzen 7 1700X to $279 which was a massive decrease from the $399 launch price.
This amounted to a whopping 27.5% decrease in price as opposed to Intel’s 17% price
reduction. Currently, Intel’s i7-7700K is priced at $350 whereas AMD’s Ryzen 7 1700X is
available at $130. There have been significant upgrades in the processor industry and these
processors have become outdated now. There are much better quality and high-performance
processors available today at these price range.

8|Page
 Quality v/s Quality (Cq,q)
Core i9-10900K v/s AMD Ryzen 9 5900X

Launched in April 2020, the Intel Core i9-10900K is a processor with 10 cores. It used the
Comet Lake architecture and Socket 1200 and is a member of the Core i9 series. Intel was able
to virtually double the threads to 20 thanks to Intel Hyper-Threading which helped in increasing
the performance. The unlocked multiplier on the Core i9-10900K may be adjusted at will,
substantially simplifying overclocking as you can select any overclocking frequency to increase
performance efficiency. In response to Intel’s Core i9-10900K AMD launched Ryzen 5000
CPUs series in November 2020 lead by AMD Ryzen 9 5900X. Ryzen 5000 CPUs have allowed
AMD to ultimately overthrow Intel in terms of pure gaming performance, productivity
performance, overclocking and thermals. The AMD Ryzen 9 5900X, became a premium
processor with 16 cores and 32 threads and a staggering 4.9GHz boost clock, was the top model
in the new Ryzen 5000 CPU series. Even without taking into account the improvement in IPC
(instructions per clock) performance brought on by the major Zen 3 redesign, that represents a
fairly significant generational leap over the Ryzen 9 3950X. Intel's long-standing record for
single-threaded performance was ultimately broken by AMD's Zen 3 architecture.

9|Page
 Advertisement v/s Advertisement (Ca,a)
“Intel Inside” v/s “AMD Me”

For the longest time Intel dominated the processor industry with their value, performance and
as well as advertising/branding, particularly their “Intel inside” campaign. We can use the
increase in Intel's market capitalization to demonstrate the significance of the Intel Inside
emblem to consumers. Prior to the launch of the "Intel Inside" branding campaign in 1991,
Intel had a market value of roughly $1 billion. This rise in shareholder value serves as an
example of the effectiveness of Intel's branding approach. In 2001 Intel was listed as the sixth
most valuable brand in the world. Its capitalization reached approximately 5 billion by 2003,
once the campaign had been put into action. In a world full of computers where “Intel Inside”
is the norm, Advanced Micro Devices AMD had the monumental task of converting the general
public to its chips. One of AMD's most notable consumer marketing campaigns was the 'AMD
Me' campaign. In 2002, for the first time in its 33-year history, AMD launched its largest global
integrated branding and advertising campaign called the 'AMD Me' campaign with the punch
line “Challenge me. Surprise me. Free me. AMD me.” AMD called it the “largest global,
integrated branding and advertising campaign” in its 33-year history. The ‘AMD me’
campaign aimed to build deep relationships with customers and address the real-world needs
of the global marketplace.

10 | P a g e
 Price v/s Quality (Cp,q)
Intel’s i9-12900K v/s AMD Ryzen 5 7600X

On April 5, 2022, the Intel Core i9-12900K was released. When it was first released, this CPU
cost $739. Later, it dropped to just $610 and was offered for a significant $129 discount off.
That was the lowest pricing we have ever seen for this processor. Reacting to this AMD has
now confirmed the Ryzen 9 7950X, 7900X, Ryzen 7 7700X, and Ryzen 5 7600X CPUs as of
July 27, 2022. Based on the Zen 4 core architecture, AMD Ryzen 5 7600X will have 6 cores
and 12 threads available. The CPU's average clock speed was 4.95 GHz, with a base rate of 4.4
GHz. The new AMD Ryzen 5 7600X 6-Core "Zen 4" CPU Samples Crushes Intel's Core i9-
12900K In Single-Core Performance, Up To 23% Faster Multi-Threaded performance. AMD’s
new Zen 4 architecture is a new leap by AMD in terms of quality and performance from their
previously Zen 3 architecture. AMD Ryzen 5 7600X is expected to be priced at $750.

11 | P a g e
 Advertisement v/s Quality (Ca,q)
Jim Parsons Ad Campaign v/s Zen 1st Gen Processors

Intel launched series of commercials in 2016-2017 featuring the well-known actor, Jim Parsons.
For this campaign intel brought on Jim Parsons and used his persona “Sheldon” from “The Big
Bang Theory” a popular TV show which used to air during that period. Jim Parsons character
“Sheldon” in “The Big Bang Theory” is known for his brilliant mind but also his quirky
behaviour and idiosyncrasies. In totality intel did 6 commercials with Jim Parsons, one of them
also featured the most decorated Olympian Michael Phelps. The commercial was titled “The
pool, #Phelpsface” because a meme of Michael Phelps comedic angry face was popularised
during 2016 Rio Olympics. In response to this in March 2017 AMD launched their newest 1st
gen of Zen microarchitecture. Zen is the codename for a family of computer processor
microarchitectures from AMD. Zen was a successor to both Excavator and Puma. It was an
entirely new design, built from the ground up for optimal balance of performance and power
capable of covering the entire computing spectrum from fanless notebooks to high-performance
desktop computers. The first set of processors, as part of the Ryzen 7 were Ryzen 7 1700,
1700X and 1800X, which were priced as $329, $399 and $499.

12 | P a g e
 Price v/s Advertisement (Cp,a)
th
Intel lowers 9 gen prices v/s AMD increases advertising budget

On October 7th 2019 Intel lowered the price of its 9th generation Core desktop processors with
F and KF designations by 5-10%, which denote parts lacking integrated graphics. Previously,
the F and KF chips carried the same pricing as the non-F models. All eight processors are now
cheaper than before, in terms of Intel's official pricing on each one. For example, Intel's official
pricing for both the i9-9900K and i9-9900KF was listed at $488 before this. Now the pricing
on the i9-9900KF is $463, making if $25 cheaper than the 9900K. Core i3-9350KF—$148
(down $21 from $169). Core i3-9100F—$97 (down $25 from $122). Countering this AMD
increased their quarterly marketing and advertising spend by $21 Million, from $185 Million
in Q3 of 2019 to $206 Millions in Q4 of 2019. This helped AMD to increase their quarterly net
revenue by $326 Million, from $1801 Million to $2127 Million.

13 | P a g e
 Advertisement v/s Price (Ca,p)
Intel’s drone performance v/s AMD’s massive price cuts

Intel set a new Guinness World Record as 1,218 Intel® Shooting Star™ drones light up the
night sky at the Olympic Winter Games PyeongChang 2018. Millions of television viewers
tuned in to the Olympic Winter Games PyeongChang February 2018 opening ceremony in
South Korea. Viewers around the world witnessed history coming to life as 1,218 Intel®
Shooting Star™ drones decorated the night sky, setting a Guinness World Records title for the
most UAVs airborne simultaneously. For more than a year, members of Intel’s drone team
across Finland, Germany, California, and South Korea flew under the radar to test the top-secret
mission to give Olympic Winter Games audiences the record-breaking show. To counter the
buzz created by intel, AMD dropped their prices by 30% of 12 of their processors from Ryzen
3,5 and 7 series. To name a few Ryzen Threadripper 1900X went from $549 to $449, Ryzen 5
1600 dropped to $189 from $219, Ryzen 7 1700X - Original Price: $399, New Price: $309, etc.

14 | P a g e
 Quality v/s Price (Cq,p)
Intel Core i7-11700K v/s Ryzen 5 5600G

In 2021 just at the end of the month of march intel launched i7-11700K at an introductory price
of $399. This 11th gen processor was a successor to the i7 10th gen processors which had
improved performance and quality. AMD has long presented itself as the less expensive CPU.
Because of this, the majority of PC and laptop makers utilized their chipsets for their entry-
level products. This made them more appealing to purchasers on a tight budget who
nevertheless desired a respectable degree of performance. Just after few months AMD decided
to launch their newest processor Ryzen 5 5600G in the month of August 2021. In one-to-one
comparison of Intel’s i7-11700K against AMD’s Ryzen 5 5600G, intel performed slightly
better in all aspects except one which was performance to price ratio because AMD’s Ryzen 5
5600G was priced at $259 which stood $140 below intel’s i7-11700K price.

15 | P a g e
 Quality v/s Advertisement (Cq,a)
Intel’s i9 12900KF v/s AMD’s Increased Marketing Spend

Intel’s i9 12900KF was launched in Q4 of 2021. The i9 12900Kf is one of Intel's high-end
desktop and workstation processors from the 12th Generation Alder Lake family. With
this Alder Lake lineup, Intel has outperformed Rocket Lake peers by an amazing 19% in terms
of IPC. Because of the higher IPC, single-threaded performance is superior, which enabled Intel
to reclaim its gaming throne from AMD. The 12th Gen Intel Core i9 12900KF outperforms the
Ryzen 9 5950x in single-thread benchmarks by wide margins and by narrow margins in multi-
core testing. In response to this AMD increased their marketing spend by from $412 Million in
Q4 2021 to $587 Millions in Q1 2022 which was roughly 45% increase over the previous
quarter. Below is the a table showing AMD’s marketing spend spread over all the quarters of
2021 and first quarter of 2022. We can see there’s a consistent increase in advertising spend in
the range of 5-10% over each quarter but in Q1 2022 AMD increased their marketing spend by
45% when compared to the previous quarter.

16 | P a g e
 AMD's Marketing Spend

600

500

400
$ Million

300

200

100

0
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Marketing Spend
.

Conclusion

Success of a strategy depends on how well businesses are able to understand various external
factors most importantly competitors’ strategies and reaction to their own strategies.
Comparative marketing matrix provides us with a rational model to stay Comparative in the
fast-paced business environment. Having such a tool at our disposal is beneficial because with
the help Comparative marketing matrix we can make use of different elements of marketing
mix to analyse and forecast our competitor’s reaction to our strategies, this helps us to stay
ahead of the curve and plan accordingly. Lastly, every marketer should be able to understand
and utilize Comparative marketing matrix to Comparative in this cut-throat business
environment.

17 | P a g e
 Works Cited

https://www.britannica.com/topic/Advanced-Micro-Devices-Inc

https://www.britannica.com/summary/Intel

https://www.forbes.com/sites/antonyleather/2017/11/23/amd-and-intel-in-massive-black-friday-

processor-price-war/?sh=5483ede1770a

https://en.wikichip.org/wiki/intel/core_i7/i7-7700k

https://en.wikipedia.org/wiki/Ryzen

https://arstechnica.com/gadgets/2020/11/a-history-of-intel-vs-amd-desktop-performance-with-cpu-

charts-galore/

https://www.pcmag.com/comparisons/amd-ryzen-9-5900x-vs-intel-core-i9-10900k-which-high-end-

cpu-is-right-for

https://www.adsoftheworld.com/brands/intel

https://www.gamesradar.com/intel-i9-cpu-deals-march-14/

https://www.cpubenchmark.net/compare/AMD-Ryzen-7-3700X-vs-Intel-i7-9700K-vs-Intel-i7-

10700K/3485vs3335vs3733

https://www.adsoftheworld.com/brands/intel

https://www.intel.com/content/www/us/en/technology-innovation/article/record-breaking-drones-

kick-off-pyeongchang-

2018.html#:~:text=Intel%20sets%20a%20new%20Guinness,of%20most%20UAVs%20airborne%20sim

ultaneously.

https://www.forbes.com/sites/antonyleather/2018/01/09/amd-announces-massive-ryzen-cpu-price-

cuts/?sh=3402f8203f0e

https://ir.amd.com/news-events/press-releases/detail/930/amd-reports-fourth-quarter-and-annual-
2019-financial-results

18 | P a g e
https://www.infoworld.com/article/2644682/amd-and-intel--the-long-war-ahead.html

https://meettheboss.tv/blog/amd-marketing-the-unmarketable

https://www.mbaskool.com/marketing-mix/products/17742-amd.html

https://www.amd.com/en/partner/marketing-materials

https://iide.co/case-studies/intel-marketing-strategy/

https://www.marketing91.com/marketing-strategy-intel/

https://www.statista.com/statistics/697852/intels-marketing-expenditure-since-2006/

https://dazeinfo.com/2020/05/12/intel-advertising-expenses-by-year-graphfarm/

https://en.wikipedia.org/wiki/List_of_Intel_processors

https://en.wikipedia.org/wiki/List_of_AMD_Ryzen_processors

19 | P a g e