To counter this problem, Xiaomi shifted its focus to improve the after sales service being provided to the customers. <> Cost competitive strategies have been boon for the brand. Xiaomi used to hunger marketing strategy and ran flash sales for new model launches, with the sales typically ending within seconds of opening. Xiaomi's logo "MI" is short for Mobile Internet since Xiaomi … Xiaomi Marketing Strategy development requires a comprehensive market analysis. Your email address will not be published. More importantly, Xiaomi popularised flash sales as a means of generating hype online. 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 $4.9 million monthly revenue (via) from apps, games, and theme customizations installed on MIUI. Promotion in the Marketing Mix of Xiaomi : Xiaomi is an active use of the social media among other marketing channels to not only broadcast their messages and agenda but also to actively get and remain in touch with their customers as well as potential customers. Like every company, Xiaomi faces some Threats: CEO Lei Jun, who believes word-of-mouth is Xiaomi’s key marketing strategy, credits the microblogging platform for helping to spread good reviews of its product. Xiaomi signed an exclusive partnership with India’s biggest e-commerce player “Flipkart”. Save my name, email, and website in this browser for the next time I comment. %���� <> CONSISTENT COMMUNICATIONS WITH NEW XIAOMI PURCHASERS AND LEADS WHO OPT IN FROM ANY OF THE MARKETING EFFORTS WILL INCREASE CUSTOMER LOYALTY, BRAND RECOGNITION, BRAND ENGAGEMENT, REFERRAL, AND REPURCHASE VALUE. 2 0 obj HUNGER MARKETING IS THE GAME: 1 0 obj Opening offline stores were one of the major decisions in the marketing strategy of Xiaomi. III. SUBHANKAR DE MBA 2ND SEM NIT SILCHAR 2. {�5z�%�z;9�.gd�HIX����_[� d����a�MԊ�@��G$!� ŝ�~����gФYf�M�A��8},s��Y�ݮ�"[��8���(*���wY絑�����%u��V��4'���2�i:� ���FT! �,)��r0�)�we��Vؕ]��dR��7?��8�Ҝp��SuY%K@L��� �BDY�d�����lWU�ȤN ߦ�.d�=p�����z�5LWm��Ȍ����,�(0��ɪwY�|� ����+M� As a venture company, Xiaomi needs to find the balance between alleviating the pressure of Xiaomi fans and output of factories with no We recently visited the Xiaomi office to chat with Donovan Sung, Director of Product Management and Marketing at Xiaomi Global. 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�� 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. While these stores continue to sell devices from other brands, as usual, they get additional business by being an outpost for Xiaomi. 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. 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. Marketing strategy Of Xiaomi Inc. 1. The brand had always emitted the idea of their products sell for themselves. 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. All these years, Chinese products were seen as cheap quality products until Xiaomi entered the market and changed the game. <>/Font<>/Pattern<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 960 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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. ← 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. Recently, Xiaomi opened its 500th service center in India to help customers with all their problems. 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. Copyright © 2018 Heart of Codes — Escapade WordPress theme by. {���o��m{���?����GOGi�g��g?����_^���������7���_����ۿ}��¦�J�r^��V^�I��4���h��x�Y/@�������ͷ?l����E� J������ �����%����^_��~q� S OCIAL MARKETING STRATEGY ANALYSIS ON X IAOMI PHONE. endobj 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. endobj ��+��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�� Every product range has a social hub. COMPANY OVERVIEWXiaomi is a privately owned Chinese electronics company headquartered in Beijing. Most people thought the success of Xiaomi was its marketing strategies. 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^��. Mi Preferred Partner stores are key multi-brand retail stores which carry differentiated Xiaomi branding and get stock from Xiaomi on priority. Xiaomi has the best of the employees who work efficiently to bring the company on the top of the respective markets. 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. After Xiaomi entered India, the … Good Quality products – Even at such low prices, no one can doubt the quality of Xiaomi phones. 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 marketing strategy has been traditionally minimalistic due to the cost leadership business strategy pursued by the company. When Lei Jun founded Xiaomi in 2009, the first product was MIUI operating system. 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. Your email address will not be published. Xiaomi is a … x��}_�$�q������\��j@@J�6(K��a�AX�������ݕ��ݺ�[zZ���d�De�LMOetO������?���Oy����������>�#�|��ُW�����}���? Xiaomi for one has a very well defined target audience. <>/Metadata 2572 0 R/ViewerPreferences 2573 0 R>> Marketing Strategies Of Xiaomi 1. “ALWAYS BELIEVE THAT SOMETHING WONDERFUL IS ABOUT TO HAPPEN ”) Xiaomi used to hunger marketing strategy and ran flash sales for new model launches, with the sales typically ending within seconds of opening. Are a few factors that Xiaomi take into account while entering a market. Marketing mix strategy is being used to understand on thedesign marketing of Xiaomi. They target the fast growing but nascent middle class in emerging economies. Asian customers are price sensitive and they love value for money products, that one mantra that Xiaomi learned quite early in its journey. Although there are rumors of XiaoMi’s inevitable coming to … 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. 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. Their staff spent a lot of time on forums, making comments, sending posts and advertising. The company should also set a secondary target of spending £100,000 on marketing within the next six months. �+�\�'vJק�ҽ>�L�w'�����E'�y�@I����@o''l;�o�zu����!�����9�I�UE E�f�9p|���J�@P�� stream We all know this deviation was a distant plan from Xiaomi’s initial marketing strategy, where it kept away the traditional advertising tools. A. 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. 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. Marketing Proposal and Strategy for New Xiaomi Product “MiSpectacles” Co-authored by Kyaw Soe Hein 12 Feb 2015 . 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. Its marketing strategies have proved its competencies to establish its worth in the markets worldwide. 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 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. 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. Overall, the strategies used by Xiaomi Mi Smartphones have worked big time. Penetrative Pricing – Xiaomi has the strongest penetrative pricing advantage because it generally uses direct marketing techniques and avoids dealer and distributor margins. ��2� j���� Xiaomi's popularity is a mad frenzy in India, and the demand exceeds the supply immensely. Xiaomi strategy of selling their phone only through e-commerce website forced their Competitors to sell their phones from e-commerce websites. With only 1/3rd of smartphone sales in the country happening online, Xiaomi needed to crack the offline market for a sustainable market share. What is the marketing strategy of Xiaomi? Lei Jun didn’t want to spend money on marketing, so his crew began building brand awareness in forums. Truly, Xiaomi is a perfect example of a start-up business. Image Source: Euromonitor, Xiaomi surpassed Apple in market share in China’s consumer electronics market, thanks in part to its grassroots approach. 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. Also, a comparative analysis of the marketing strategy of Xiaomi and other manufacturers … 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. Strategy 1: Earning profits from its software. Another crucial part of Xiaomi’s social media strategy is that … endobj In this paper, the background of Xiaomi's, its marketing strategies, business models has been presented. ABOUT XIAOMI CORPORATION Xiaomi Corpoation is a Chinese electronics company headquartered in Beijing. We don't invest in traditional marketing. All this success was not a just a smooth sailing for the brand, the brand had its own share of bumps in its journey. Required fields are marked *. 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. 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. More than the specs of the phone, an interesting facet to the company is its marketing strategy. Threats. However, Xiaomi has been accused of imitating Apple’s marketing strategies, and currently operates a business model that is similar to that of Amazon. First, Xiaomi would need to ensure their manufacturing processes are as green as possible — by reducing and managing waste products and pollutants. Xiaomi was founded in 2010 by Lei Jun. THE EMAIL FUNNEL SHOULD BE MANAGED THROUGH ACTIVE CAMPAIGN OR SIMILAR SOFTWARE, … "�+g��5o�ZJ˭3Y-e��h���:�* .��E�8},sR� 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. 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. 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. %PDF-1.7 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. Xiaomi launched smartphones packed with premium specs at a price which were half the price of its competitors like Apple and Samsung. �.���/��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}�]� 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. The company sold over 70 million mobile phones in 2015—while aggressively building out a robust ecosystem. Place – gain strength at home first. 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. Naturally, this would be a two-step process. Xiaomi also shuns traditional models of advertising and depends solely on Social Media marketing and word-of-mouth. For Xiaomi, it’s about our Mi fans. Secondly, Xiaomi would need to go about promoting this message with some clever marketing tactics. Hunger marketing In terms of sales, Xiaomi is a good example of Venture Company. 4 0 obj It can be done by quantitatively and qualitatively assessing the customer market. Page 2 of 34 ABSTRACT This document provides a marketing report on Xiaomi Inc, a multinational corporation based in Beijing, China. inventory for Xiaomi, and this will definitely save cost for Xiaomi. 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