Marketing Mix of Xiaomi analyzes 7Ps product, place, price, promotion, process, people, and physical evidence. There is a series of Xiaomi marketing strategies that helped the brand to flourish, such as product/service innovation, investment in marketing, customer experience, etc.
Xiaomi is a Chinese electronics design and manufacturing company. The business was founded by Lei Jun in 2010 and is headquartered in Beijing. Xiaomi ranks fourth on the list of the world’s top smartphone makers. Its consumer electronics and hardware are some of the fastest-selling goods in China. Samsung and Apple are worried by the pace at which Xiaomi is rising, as the company has almost managed to position itself as the top smartphone brand in China and Asia.
Competitors of Xiaomi are :
- Apple
- Samsung
- Oppo
- Vivo
- One Plus
- Realme
- Asus
- Huawei
Product in the Marketing Mix of Xiaomi
Xiaomi markets its products in five specific categories, each acting as separate lines of products. All of its products are sold under the Xiaomi brand name. Some of the products are :
- Mobile Phones
- Tablets
- Laptops
- Fitness Bands
- Smart Cameras
- Security Solutions
- TV
- Earphones
- Chargers
- Power Banks
Xiaomi products are available in a wide range, allowing consumers to select the product type that best suits them.
Xiaomi offers highly differentiated goods, with numerous features that rivals don’t bring to consumers. Hence, its goods are regarded as original.
Its products are seen to be of higher quality than competitors.
Xiaomi sells products renowned for their looks and design. Xiaomi products are of high quality.
Suggestions for Product in the Marketing Mix of Xiaomi
- Xiaomi must introduce new products that are related to recent trends in the market.
- Xiaomi must introduce new technology in its products.
- Xiaomi must do a proper analysis of products available in the market before launching a product.
- Xiaomi must increase its product line to attract customers from each segment.
- Xiaomi must try to improve its product packaging to attract customers. Packaging must be visually appealing.
- Extended warranties must be provided with the products to beat their competitors.
Pricing in the Marketing Mix of Xiaomi
Most of the money being spent on Xiaomi products applies exclusively to design and manufacture. The company is trying to save as much as it can, thus offering products at an affordable rate for the market. To put it another way, Xiaomi products are low priced on average. The firm primarily employs marketing techniques that do not cost much. Moreover, most of the items are sold online thus reducing the costs that would have been expended on setting up retail stores.
The company is using a pricing strategy that will help them make money in the future. The company is selling products on low margins to make more sales. Their emphasis on profit generation is on the devices, applications, and services to be used with their phones and computers, etc. Xiaomi has demonstrated that cheap prices don’t always mean cheap products.
Suggestions for Pricing in the Marketing Mix of Xiaomi
- Xiaomi should give discounts on products to attract customers.
- Psychological pricing must be used by Xiaomi.
- Products must be launched with a price penetration strategy which means lower prices in initial stages ad then increasing the prices after capturing the market.
- The company must launch products that fit into the pocket of all classes of people.
Place in the Marketing Mix of Xiaomi
Xiaomi is a company of Chinese origin with a large market in China. The company has expanded its business in, Turkey, Mexico, Malaysia, Thailand, Russia, Philippines, Singapore, Brazil, Indonesia, Vietnam, and India. Despite trying to go international, Xiaomi’s main focus still lies in China as it already has a formidable consumer base here.
Most of Xiaomi’s sales are made digitally instead of in physical stores. As a result, both the producer and the customer understand a win-win situation. The company has a tie-up with Flipkart, Amazon. Online products are also sold through company-owned web store i.e. mi.com and app.
Suggestions for Place in the Marketing Mix of Xiaomi
- Xiaomi should launch special products for its offline stores.
- Xiaomi must open more company-operated stores.
- Service Centres must provide efficient services to the customers.
- Xiaomi must improve its website for increasing its sales from its website.
Promotions in the Marketing Mix of Xiaomi
- Using flash sales lets the company sell its smartphones and other items in small numbers and within very short periods of time. This is an effective promotional tactic that helps the business to save money that would have been used in ads because the tactic generates motivation and customer anticipation. Only a small number of goods are manufactured and sold relatively quickly, making others wait for the next shipment. Waiting is always with a lot of tension and anticipation. Many people end up thinking about social media in particular and thereby unknowingly endorsing Xiaomi products. Xiaomi has a very broad and strong fan base that has been able to express their support for the Xiaomi products. These are fans who are still in action when a new product is launched. The presence of such a fan base alone is enough for cheering and excitement to draw future customers’ attention.
- Xiaomi takes advantage of several media platforms to market its goods. It uses conventional media which includes television and radio advertisements. This is advantageous because of its wide scope and capability of attracting a large number of people. It uses online ads and in social media, which is cheaper and advantageous due to the growing use of the Internet.
- Xiaomi advertises on various social media sites with an emphasis on YouTube, Facebook, and Twitter. On these sites, it has over one hundred thousand likes or customers following, who are exposed to daily content uploaded by Xiaomi.
- Xiaomi undergoes numerous promotional promotions taking part in various trade fairs and conferences during the year.
- Xiaomi undergoes personal sales to increase its presence in retail stores, with a large sales force.
- Xiaomi uses a percentage of the sales model to assess the budget for promotions.
Suggestions for Promotion in the Marketing Mix of Xiaomi
- Xiaomi can recruit and include social media influencers such as bloggers or prominent TV/movie stars in its advertising. To promote Xiaomi bloggers can post content on their social media accounts. .TV/movie stars can be used in promotional advertisements to improve consumer awareness of the product
- Xiaomi will initiate a marketing campaign where consumers receive a clear message on all media platforms. This will help to increase awareness within the customer’s minds.
- To boost online traffic on its website Xiaomi will undergo various digital marketing techniques. These involve advertising for the banner, search engine optimization, and the development of its blog or forums.
- Xiaomi will make posts on social media quite relevant to its target audience. The posts should also be such that consumers are motivated to take more action, such as sharing posts with friends or leaving reviews in the comment form. It will integrate the latest trends in social media such as hashtags, memes, etc. Xiaomi can start gathering customer data and start sending them messages via email or SMS, which ultimately leads to regular customer purchases.
People in the Marketing Mix of Xiaomi
- Inside its sales department, Xiaomi has people who play a critical role in its marketing efforts. Such people were trained in promotional strategies but also in showing respect to customers’ needs.
- Xiaomi has its customer service department with people working. Customers contact these in case of any problems inside the product and these people direct customers through the process of resolving the issues. Such employees are educated to appreciate the customers and make every effort to fix their complaints.
- Xiaomi has suppliers working with people to get the raw materials. These people play an important role in maintaining or enhancing the quality of the produced end product.
- Xiaomi has people working in retail stores who help the customer on-site, answer any questions, or help them decide which product best suits their needs.
Suggestions for People in the Marketing Mix of Xiaomi
- For its sales force, customer care, and purchasing staff, Xiaomi must provide training as these play a critical role in providing value to customers.
- Xiaomi should provide its sales force with rewards through promotions to achieve goals, or through commissions for the sales made.
- Xiaomi should employ people who show respect for customer interest and are committed to the company.
Process in the Marketing Mix of Xiaomi
- Xiaomi has systems built to ensure its goods are still available in retail stores where retailers can alert when their inventory volumes are small. Xiaomi supplies them with more goods to replenish their stock when ordering their productions. This means goods are still available to consumers in appropriate quantities.
- Xiaomi has an electronic ordering process in which orders are submitted through the computer system and the related product from the inventory is delivered to the delivery service provider based on those orders.
- Xiaomi is actively interested in exploring business prospects to consider the needs of the customers. This also builds awareness of consumer needs through gathering in-store reviews, the helpline, or social media accounts.
Suggestions for Process in the Marketing Mix of Xiaomi
- Xiaomi can use apps and websites around to manage its various processes to improve customer satisfaction and production on time.
- Xiaomi will continually search for ways to improve in terms of productivity and expense and develop its processes. Eventually, reductions in production will contribute to lower prices for its goods.
Physical Evidence in the Marketing Mix of Xiaomi
- Xiaomi markets its products in a different, easily recognizable color package on store shelves. These are put on the company’s special shelves which also have a distinct color and style. This makes the position of these shelves in busy retail stores easier for customers.
- Xiaomi has a user-friendly online website that allows consumers to view their products from various angles in high-quality photographs.
Suggestions for Physical Evidence in the Marketing Mix of Xiaomi
- Xiaomi will gather feedback on its packaging from its customers so that it can focus on packaging.
- Xiaomi should develop stores where it offers a shopper-friendly experience and atmosphere, enticing its customers to purchase its items.
You Will also like SWOT Analysis of Xiaomi
If you Like this Article Please Hit the Like Button and Follow Us on our Facebook Page: PROJECTS4MBA