PGDM I SEMESTER

Session 2022-23

PGDM103 – MARKETING
MANAGEMENT

Assignment 1

Date of Assignment: 12/8/2022 Date of Submission: 17/8/2022

Submitted to: Submitted by:

Dr Kavita Khurana ANMOL JAISWAL
ABS/PGDM/22/130
CONTENT
1. About Xiaomi
1.1 Price in the marketing mix of
Xiaomi
1.2 Product in the marketing mix of
Xiaomi
1.3 Place in the marketing mix of
Xiaomi
1.4 Promotion in the marketing
mix of Xiaomi
1 ABOUT XIAOMI

Xiaomi is a prominent Chinese company renowned for its

Smartphone and consumer electronics items around the
world. This 2nd largest Smartphone’s manufacturer in the
world was established on 6 April 2010. The headquarters
of Xiaomi is situated in Haidian district, Beijing, China. It is a
technology-based company that continuously provides
Smartphone’s, consumer electronics & home appliances to
its consumers throughout 100 countries. The current net
worth of this company is nearly $ 40 Billion. The "MI" in the
logo stands for “Mobile Internet”. The company has more
than 20,000 employees spread globally. To reach the peak
position in the tech market, it always follows a perfect
marketing mix to ensure space for valued customers’ minds
while maintaining the quality of its products and services.
Competitors
• Samsung
• Apple
• Vivo
• Oppo
• OnePlus
1.1 Price in the marketing mix of Xiaomi

Xiaomi sells at low price and offers high quality products.

According to the founder, chairman and CEO their main aim
is to sell the products at the price the product is produced
without making any profit. So, the strategy being followed
by Xiaomi is selling at a low price today and gain later
strategy. Their profit generation focus is on the accessories,
apps, and services that are to be used with their products.
This is a unique pricing strategy in its marketing mix, mostly
aimed at gaining a substantial market share. The pricing
strategy of Xiaomi has enabled the brand to penetrate into
a global market and have a substantial market share.
Initially, they started with low end feature phones to enter
the market. Now, gradually, Xiaomi has also established
itself as a leading Smartphone player across the world.Most
of the products are sold online thus reducing the cost that
would have been spent to set up offline stores.

Xiaomi has proven that cheap pricing doesn’t always mean

cheap products.
2.2 Product in the marketing mix of Xiaomi
The product strategy and mix in Xiaomi marketing strategy
can be explained as follows:
Xiaomi initially started off as a mobile brand but now offers
a wide range of consumer electronics products. The
products in the collection of Xiaomi are
• Smartphone’s
• TV
• Smart devices
• Power bank and charging devices
• Speakers and headphones
• Drones
Xiaomi’s biggest seller is its Smartphone’s with the MI,
Redmi & POCO range of products. It has customized the
products to the requirements of the region it operates in to
incorporate the local market and political conditions. This
shows the strong product portfolio in the marketing mix
strategy possessed by Xiaomi. The company got listed on
the Hong Kong Stock Exchange in 2018. The brand has also
planned to invest $10 billion towards electric cars.
2.3 Place in the Marketing Mix of Xiaomi
Xiaomi is Chinese company but have a wider market than
just China. However, its strong base is within its Homeland-
China. As at now, the company is also emerging in 11 other
countries. These include Turkey, Malaysia, Mexico,
Thailand, Philippines, Russia, Singapore, Indonesia, Brazil,
India, and Vietnam, with most of the countries being found
in the BRIC and South East Asia regions. In spite of it trying
to go international.

Most of Xiaomi’s sales are done online rather than on the

physical stores. The company saves lots of money from
building and managing stores as customers easily access
products without having to pay the distributor, wholesaler,
and retailer.

However it has made some modifications in some of the

emerging markets where it uses retail outlets to sell its
products. Recently, it switches its primary focus towards
enlarging offline markets as well. It gives effort in
substantial investments for improving the product in the
context of technology.
2.4 Promotion in the marketing mix of Xiaomi
Promotion stands for creating brand awareness among
customers. Xiaomi uses various media channels to promote
its products. It uses traditional media such as TV, Print
media, and Magazine ads. It is beneficial for Xiaomi
because of its large reach and ability to attract many
people. It applies online and social media advertising, which
is cheap and earns a positive response due to the increasing
usage of the internet. Leaflet, sponsorship, brand
ambassador & corporate social responsibility, etc., are the
ways of branding products used frequently by Xiaomi.

They have distinguished themselves by building a strong

following around their custom operating system. “Just for
Fans”, Xiaomi’s unique initiative where the Xiaomi loyal
fans lead the development of the product in every step.
Most of the employees of Xiaomi are also previous loyal
fans that have become part of the team developing the
product. In this way Xiaomi has made sure there is a pull
strategy than a push strategy of the products produced by
them. Xiaomi also leveraged social media to the fullest and
word of mouth. It promoted through micro blogging sites
and social networking sites like Facebook and Twitter. They
regularly organize flash sales which forced the people to
buy them due to the urgency. This caused a hype for the
product and there has been alleged reports that some of
the products were sold out in 6 minutes. This type of
publicity pushed sales for 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. The
company’s engineers also make good use of the social
media especially Facebook, to routinely communicate to
users for feedback. Such feedbacks are used in the
development of new products. The use of flash sales helps
the company to sell to sell their Smartphone’s and other
products in limited numbers and within very limited time
periods. This is an important sales strategy that enables the
company to save money that would have been used in
advertisements as the strategy does create urgency and
anticipation on consumers. Just a limited number of
products are produced and sold quite fast thus making
others to wait for the next batch. The wait is always with a
lot of anticipation and urgency. Many people end up talking
especially on social media thus unknowingly promoting
Xiaomi products