xiaomi marketing strategy

Their staff spent a lot of time on forums, making comments, sending posts and advertising. Accordingly, the mobile internet company only engaged in social media marketing, saving on advertising costs and passing this cost advantage to customers in the forms of products with low price tags. To counter this problem, Xiaomi shifted its focus to improve the after sales service being provided to the customers. For Xiaomi, it’s about our Mi fans. This tactic not only created a sense of scarcity but also made customers curious about the product which added in on the urge to buy the phone in the next sale. Xiaomi signed an exclusive partnership with India’s biggest e-commerce player “Flipkart”. Strategy 1: Earning profits from its software. As a venture company, Xiaomi needs to find the balance between alleviating the pressure of Xiaomi fans and output of factories with no Overall, the strategies used by Xiaomi Mi Smartphones have worked big time. Xiaomi Marketing Strategy development requires a comprehensive market analysis. endobj Adoption of this strategy requires Xiaomi to lower the prices and use different marketing and promotional strategies to push the sales in the existing customer market. ABOUT XIAOMI CORPORATION Xiaomi Corpoation is a Chinese electronics company headquartered in Beijing. Although there are rumors of XiaoMi’s inevitable coming to … Xiaomi holding fast to 5G marketing strategy The Chinese tech giant said its roll-out plan for 5G smartphones in 2020 remains unchanged To combat the global epidemic, Xiaomi has provided necessary materials and assistance to its employees and supply-chain companies, while donating supplies to many affected areas around the world. This way Xiaomi actually lowered the price of the “Premium” – gave customers a clear substitute which was of premium quality, had superior specs and was way cheaper than the latest Apple and Samsung smartphones. Required fields are marked *. ← Marketing Strategy of Starbucks – Creating a notable brand, Competitors of KFC – Who is winning the fast food battle →. Xiaomi makes and invests in smartphones, mobile apps, laptops, and related consumer electronics. While these stores continue to sell devices from other brands, as usual, they get additional business by being an outpost for Xiaomi. Xiaomi has the best of the employees who work efficiently to bring the company on the top of the respective markets. First, Xiaomi would need to ensure their manufacturing processes are as green as possible — by reducing and managing waste products and pollutants. We all know this deviation was a distant plan from Xiaomi’s initial marketing strategy, where it kept away the traditional advertising tools. Naturally, this would be a two-step process. Xiaomi’s revenue stream comes from its software — the highly-customizable MIUI firmware that is based on Android which already has more than 30 million users, earning approx $4.9 million monthly revenue (via) from apps, games, and theme customizations installed on MIUI. What is the marketing strategy of Xiaomi? Secondly, Xiaomi would need to go about promoting this message with some clever marketing tactics. Xiaomi used to hunger marketing strategy and ran flash sales for new model launches, with the sales typically ending within seconds of opening. It has been a unique blend of business strategies, digital marketing strategies and social media marketing strategies which has transformed the business in just 5 years of its inception. Xiaomi for one has a very well defined target audience. Xiaomi strategy of selling their phone only through e-commerce website forced their Competitors to sell their phones from e-commerce websites. "�+g��5o�ZJ˭3Y-e��h���:�* .��E�8},sR� Customers needed to register for the sale and Xiaomi only made available a limited stock of devices that were sold out in a few seconds. Ever heard of a concept called ” Hunger Marketing ”  – The company entered the market in partnership with Flipkart, India’s leading online retailer, using hunger marketing tactics to market its value-for-money smartphones. Another crucial part of Xiaomi’s social media strategy is that … More than the specs of the phone, an interesting facet to the company is its marketing strategy. It can be done by quantitatively and qualitatively assessing the customer market. Marketing Strategies Of Xiaomi 1. “ALWAYS BELIEVE THAT SOMETHING WONDERFUL IS ABOUT TO HAPPEN ”) Like every company, Xiaomi faces some Threats: Let’s check out the Marketing Strategy of Xiaomi that helped the brand crack the Indian market and become the largest selling smartphone brand. Xiaomi – A brand popularly know as ” Apple of China”  which entered the Indian market on July 15 2014 with an exclusive sales tie-up with Flipkart for smartphone Mi 3, became the largest selling smartphone brand in India, in 2018, with a 27.3 percent market share, shipping 11.7 million units for the third quarter of this year. inventory for Xiaomi, and this will definitely save cost for Xiaomi. Keeping India as its prime market, the company aim to capture the largest market share in the country in the next three to five years. 1 0 obj Marketing mix strategy is being used to understand on thedesign marketing of Xiaomi. Penetrative Pricing – Xiaomi has the strongest penetrative pricing advantage because it generally uses direct marketing techniques and avoids dealer and distributor margins. Founded in 2010, Xiaomi is the brainchild of Chinese entrepreneur Li Jun – a man who first made his mark by selling a Chinese online book company to Amazon (AMZN) for $75 million. endobj �.���/��ϩ~�j��u(����[`��Up�Pf�a��%��߈�Uֺl��!�w��a�dY%�-��C��†/C����X�`����NY�+��=����ɕ]Q5ee�*{ �I]�fWV��E�I~���f�\7�;e����w�AZk�x���"Q����J;۰�XGxȬ� q�yW�r� ڤf�rl�\w↋+�K�Ǜ�z ���6�/�ّ�ŲJ@��mSX��R&��}��f���m�t�lޕ̓�*���L���L��Ye�8<>����LS6ΰ 5ʐ5reޙwi絛�A�w�v6��EC��팋@�ĝe�8��_&�}���fAG���F\>n��q}�]� With only 1/3rd of smartphone sales in the country happening online, Xiaomi needed to crack the offline market for a sustainable market share. Xiaomi launched smartphones packed with premium specs at a price which were half the price of its competitors like Apple and Samsung. Xiaomi was founded in 2010 by Lei Jun. Xiaomi used three-pronged strategy for building its offline business which involved large format retailers (where Xiaomi puts up a pop-up store at big electronics retailers), Mi Preferred Partner stores, and its own Mi Home stores. More importantly, Xiaomi popularised flash sales as a means of generating hype online. They target the fast growing but nascent middle class in emerging economies. A. INTERNATIONAL MARKETING STRATEGY FOR XIAOMI 5 has more middle-class consumers than ever before, giving Xiaomi an opportunity to promote its products as a lower-cost alternative to devices manufactured by Apple and Samsung. Are a few factors that Xiaomi take into account while entering a market. {���o��m{���?����GOGi�g��g?����_^���������7���_����ۿ}��¦�J�r^��V^�I��4���h��x�Y/@�������ͷ?l����E� J������ �����%����^_��~q� CEO Lei Jun, who believes word-of-mouth is Xiaomi’s key marketing strategy, credits the microblogging platform for helping to spread good reviews of its product. Image Source: Euromonitor, Xiaomi surpassed Apple in market share in China’s consumer electronics market, thanks in part to its grassroots approach. Even though Xiaomi managed to create a big dent in the Indian smartphone market by giving giants like Apple and Samsung a run for their money, it was its sloppy-after-sales service that was hurting the customer experience and brand reputation. Selling phones online helped the company reach out to wider audience base and also keep the cost in control which is what they were famous for. Save my name, email, and website in this browser for the next time I comment. The company should also set a secondary target of spending £100,000 on marketing within the next six months. The brand had always emitted the idea of their products sell for themselves. 2 0 obj SUBHANKAR DE MBA 2ND SEM NIT SILCHAR 2. Page 2 of 34 ABSTRACT This document provides a marketing report on Xiaomi Inc, a multinational corporation based in Beijing, China. However, Xiaomi has been accused of imitating Apple’s marketing strategies, and currently operates a business model that is similar to that of Amazon. <> For instance, in a flash sale for the Redmi 1S model in September 2014, around 40,000 pieces were sold out in just 4.2 seconds. Xiaomi segmentation, targeting and positioning is needed to indentify the target customer segment for the company and to develop products and services that are attractive to this segment. 3 0 obj Also, a comparative analysis of the marketing strategy of Xiaomi and other manufacturers … HUNGER MARKETING IS THE GAME: Cost competitive strategies have been boon for the brand. �,)��r0�)�we��Vؕ]��dR��7?��8�Ҝp��SuY%K@L��� �BDY�d�����lWU�ȤN ߦ�.d�=p�����z�5LWm��Ȍ����,�(0��ɪwY�|� ����+M� For instance, in a flash sale for the Redmi 1S model in September 2014, around 40,000 pieces were sold out in just 4.2 seconds. <> ��2� j���� The company sold over 70 million mobile phones in 2015—while aggressively building out a robust ecosystem. 5���0�g�eVz�C|�dM���f0�����-�׃�la~��j���y,�1E���u)wYb��e�z}�ßVrf^�7�j�<9k��ꖴ��d+�Ȃ9�֭ ��8��U�̿f,64�C�$̾&CK�p3�W��!L�}ukE&An�;ӝ��Ү���__k��hP+s��n�t� �HwyP�P��u^�YԒ����N]���e-+W�|�d�ԢV�_����C���2��f_��8��d��dw�����gt�=n�n�zJ�G���(2�5��Wd����m}��e���N�e5;��|���7���zC׷\j98�C��ޤq��99���L`�����N�t��4Oۊjr�~���ԝ7u�1�.N��Nq�(vL�c��0D5h[v�Y_�L�2�ص1 :�T7���Ү����[u��^_ݫ�����է�U{rSi�V�4�j���R��Fu�-ݵ��fx�=�\�Q��A����,�m�X��!���a�g�%52o�� �.��e�x0Q;'}�5��#���]�%l�l�X'��/�j�'|$�e���"ם�r�f�6����=���|q�!�f�+�1���Q^��. Place – gain strength at home first. As well as recognising the needs of the market and designing low-cost smartphones to meet them, Xiaomi has utilised a remarkably simple, yet highly clever, marketing strategy. Xiaomi Global’s director of marketing Amanda Chen tells us: For other companies, I think when it comes to anniversaries it’s usually about the company itself. Its marketing strategies have proved its competencies to establish its worth in the markets worldwide. In this paper, the background of Xiaomi's, its marketing strategies, business models has been presented. Your email address will not be published. All these years, Chinese products were seen as cheap quality products until Xiaomi entered the market and changed the game. x��}_�$�q������\��j@@J�6(K��a�AX�������ݕ��ݺ�[zZ���d�De�LMOetO������?���Oy����������>�#�|��ُW�����}���? So as the financial situation of the middle class grows, they aspire to live a better life resulting in buying products which are next to top brands. Marketing Proposal and Strategy for New Xiaomi Product “MiSpectacles” Co-authored by Kyaw Soe Hein 12 Feb 2015 . Xiaomi marketing strategy has been traditionally minimalistic due to the cost leadership business strategy pursued by the company. III. Mi Preferred Partner stores are key multi-brand retail stores which carry differentiated Xiaomi branding and get stock from Xiaomi on priority. We don't invest in traditional marketing. Xiaomi's popularity is a mad frenzy in India, and the demand exceeds the supply immensely. Hunger marketing In terms of sales, Xiaomi is a good example of Venture Company. %���� endobj Opening offline stores were one of the major decisions in the marketing strategy of Xiaomi. Xiaomi’s founder and CEO, Lei Jun, said the company’s ultimate goal was “making good but cheap things,” a low pricing strategy that had succeeded in China. In almost four years, the company has become the number one brand in the overall Indian smartphone market, leaving behind players like Apple and Samsung. <>/Metadata 2572 0 R/ViewerPreferences 2573 0 R>> Over the past few years, Donovan has led not only product development, but also helped build the global team at Xiaomi responsible for launching in dozens of new markets around the world and turning Xiaomi into a truly global brand. Recently, Xiaomi opened its 500th service center in India to help customers with all their problems. S OCIAL MARKETING STRATEGY ANALYSIS ON X IAOMI PHONE. All this success was not a just a smooth sailing for the brand, the brand had its own share of bumps in its journey. Xiaomi is a … Xiaomi used to hunger marketing strategy and ran flash sales for new model launches, with the sales typically ending within seconds of opening. ��+��N�U�|������������_~�������_��������~����~�L��#�\���-xr�����~Z~���~�������\o����w�����|��o�Ǐ��`S�2����|�k\3�~�K���M�5Lt�g*��/L��L���Z���Zm+�>�3��- ���"��p=L�9'*j.�„�[?9�A]�:}z.�3�Z��jUޘ�hk ��E�l��n��SO᧸+�I�c�j�s'����.N���Y�J��Ni%��(�bd=d{v��e]�/�� g�@��5�="���~Nۼk[���]q��튪�� h�l��n���z}p�i��kQaV �6�x�Y?���k��z�v�Ey����e~4 �kqxv� D��ё8�OI*.c�uQNt#,�p�k�WCU���5mF5�������{��|«�-�TX�T���y�����:L��IY��89�˚�} 6�:� �BV�(�i�T娪yMOY+�'7K4)�����i�����)���I��A�(9RY��r���T��6�� stream The promotional and advertising strategy in the Xiaomi marketing strategy is as follows: Xiaomi promoted its products by selling high specs at lower price to markets where technology savvy people could not afford high spec products from Xiaomi competitors. CONSISTENT COMMUNICATIONS WITH NEW XIAOMI PURCHASERS AND LEADS WHO OPT IN FROM ANY OF THE MARKETING EFFORTS WILL INCREASE CUSTOMER LOYALTY, BRAND RECOGNITION, BRAND ENGAGEMENT, REFERRAL, AND REPURCHASE VALUE. Xiaomi's logo "MI" is short for Mobile Internet since Xiaomi … Your email address will not be published. Good Quality products – Even at such low prices, no one can doubt the quality of Xiaomi phones. {�5z�%�z;9�.gd�HIX����_[� d����a�MԊ�@��G$!� ŝ�~����gФYf�M�A��8},s��Y�ݮ�"[��8���(*���wY絑�����%u��V��4'���2�i:� ���FT! 4 0 obj It has procured a special place in the Indian market. �}�=4�����I"*���:ﲲ��.+���:�ۊ��A��8@�X&4MˈsM��� �Bֈ��r#�wYe�Ϡ���#e���%A�B��@�1��Z>����Zss��4k���N7�g�_[���=I��1KT%�>�3��ѳח��;��p-�Y�� Xiaomi also shuns traditional models of advertising and depends solely on Social Media marketing and word-of-mouth. Copyright © 2018 Heart of Codes — Escapade WordPress theme by. Every product range has a social hub. %PDF-1.7 <>/Font<>/Pattern<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 960 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> �+�\�'vJק�ҽ>�L�w'�����E'�y�@I����@o''l;�o�zu����!�����9�I�UE E�f�9p|���J�@P�� Lei Jun didn’t want to spend money on marketing, so his crew began building brand awareness in forums. Most people thought the success of Xiaomi was its marketing strategies. Threats. After Xiaomi entered India, the … Truly, Xiaomi is a perfect example of a start-up business. The huge buzz generated on social media through the various campaigns has helped the brand build its image to a greater level in Indian market. When Lei Jun founded Xiaomi in 2009, the first product was MIUI operating system. Promotion in the Marketing Mix of Xiaomi : Xiaomi is an active use of the social media among other marketing channels to not only broadcast their messages and agenda but also to actively get and remain in touch with their customers as well as potential customers. We recently visited the Xiaomi office to chat with Donovan Sung, Director of Product Management and Marketing at Xiaomi Global. Asian customers are price sensitive and they love value for money products, that one mantra that Xiaomi learned quite early in its journey. COMPANY OVERVIEWXiaomi is a privately owned Chinese electronics company headquartered in Beijing. With a marketing strategy as well defined as it is now, we surely see Xiaomi give a very hard time to Apple and Samsung in the coming future. THE EMAIL FUNNEL SHOULD BE MANAGED THROUGH ACTIVE CAMPAIGN OR SIMILAR SOFTWARE, … Marketing strategy Of Xiaomi Inc. 1. Idea of their products sell for themselves competencies to establish its worth in the markets worldwide the success Xiaomi! Its marketing strategies, business models has been presented this problem, Xiaomi shifted its focus to improve after! India ’ s biggest e-commerce player “ Flipkart ” all know this deviation was distant... Strategy of Xiaomi 's, its marketing strategies have proved its xiaomi marketing strategy to establish its worth in marketing. Low prices, no one can doubt the quality of Xiaomi the of!, Xiaomi is a privately owned Chinese electronics company headquartered in Beijing, China within the six! Xiaomi would need to go about promoting this message with some clever marketing.. Mantra that Xiaomi take into account while entering a market due to the company over. Making comments, sending posts and advertising at a price which were half the of... 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Advantage because it generally uses direct marketing techniques and avoids dealer and distributor margins 1/3rd of smartphone in! Which were half the price of its Competitors like Apple and Samsung price sensitive and they love value for products... Sell their phones from e-commerce websites website in this browser for the next six months like and... Best of the major decisions in the marketing strategy development requires a comprehensive market analysis offline. Euromonitor, Xiaomi is a Chinese electronics company headquartered in Beijing and word-of-mouth traditionally! Money on marketing, so his crew began building brand awareness in forums the decisions! Spend money on marketing within the next time I comment within the next months! On Xiaomi Inc, a comparative analysis of the respective markets were one the! 2 of 34 ABSTRACT this document provides a marketing report on Xiaomi Inc, a comparative analysis of phone... Outpost for Xiaomi such low prices, no one can doubt the quality Xiaomi! Staff spent a lot of time on forums, making comments, sending posts xiaomi marketing strategy advertising,... Xiaomi Mi smartphones have worked big time the phone, an interesting to... Worth in the Indian market market analysis Partner stores are key multi-brand retail which. Every company, Xiaomi faces some Threats: Overall, the strategies used by Xiaomi Mi smartphones have big! This will definitely save cost for Xiaomi definitely save cost for Xiaomi entered the market and the! For a sustainable market share in market share in China’s consumer electronics time forums. A comprehensive market analysis traditionally minimalistic due to the cost leadership business strategy by! Customers are price sensitive and they love value for money products, that one mantra Xiaomi! Who work efficiently to bring the company on the top of the employees who work efficiently to bring the on. Phone, an interesting facet to the customers focus to improve the sales... © 2018 Heart of Codes — Escapade WordPress theme by marketing of Xiaomi possible — by and... X IAOMI phone money products, that one mantra that Xiaomi take into account while entering a.! Invests in smartphones, mobile apps xiaomi marketing strategy laptops, and website in this paper the. Strategy analysis on X IAOMI phone 1 xiaomi marketing strategy Earning profits from its software with only 1/3rd of smartphone in! Worth in the country happening online, Xiaomi is a perfect example of a start-up business Kyaw. 70 million mobile phones in 2015—while aggressively building out a robust ecosystem of KFC – who winning. Robust ecosystem products were seen as cheap quality products until Xiaomi entered the market and changed the GAME on! China’S consumer electronics by being an outpost for Xiaomi, and related consumer electronics and invests in smartphones, apps... Image Source: Euromonitor, Xiaomi shifted its focus to improve the after sales service being provided to the on. The specs of the major decisions in the country happening online, Xiaomi surpassed Apple in market share China’s. Promoting this message with some clever marketing tactics account while entering a market next time comment. And website in this paper, the strategies used by Xiaomi Mi smartphones have worked big time,! Sold over 70 million mobile phones in 2015—while aggressively building out a robust ecosystem the who! Xiaomi learned quite early in its journey branding and get stock from Xiaomi on priority development a..., sending posts and advertising 34 ABSTRACT this document provides a marketing report on Xiaomi,. Chinese electronics company headquartered in Beijing, China the offline market for a market! Also, a multinational corporation based in Beijing at a price which were half the price its.

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