4.

1 COMMUNICATION OBJECTIVES

Xiaomi marketing communication mix explains the extent of usage of individual

elements of marketing communication channels by the mobile internet company.
Generally, elements of the marketing communication mix consist of print and
media advertising, sales promotions, events and experiences, public relations,
direct marketing and personal selling.

Xiaomi Print and Media Advertising

Xiaomi once touted its avoidance of advertising as one of the keys to its early
success saving money on commercials helped keep the overall price of the phones
lower. Instead, it relied on its upper executives and its “fans” to spread the word
and attract new customers through social media. However, due to increasing
competition from its local rivals Oppo and Vivo, the mobile internet company had
no choice but to engage in certain forms of traditional advertising such as posters
and newspaper advertising. Nevertheless, viral marketing remains as the most
important form of marketing for Xiaomi. The internet technology company also
uses celebrity endorsement.

Xiaomi Sales Promotions

Xiaomi uses the following sales promotions techniques, like Flash Sales, Customer
Loyalty Scheme, Seasonal Sale Promotions, Point of Sale Materials.
Flash sales. Flash sales refer to sales of products and services online at a heavily
discounted price for a short period of time. Xiaomi uses flash sales extensively,
especially in India.

Customer Loyalty Scheme. Reward Mi is a customer loyalty program that rewards

loyal customers with exclusive benefits such as priority passes a.k.a F-codes and
discount coupons which can be redeemed on selected products across Mi Store.

Seasonal sales promotions. The electronics and software company announces

sales promotions on notable occasions as Christmas day and anniversaries of
notable days for the company.

Point of sale materials. The company uses point of sale materials such as posters
and display stand at its stores.

4.2 COMMUNICATION BUDGET

In 2019, Chinese electronics company Xiaomi spent 10.38 billion yuan on selling
and marketing. In that year, Xiaomi's total revenue amounted to 174.92 billion
yuan or 1,284,843,682,084.28 Philippine peso.