Team Members – Govind Biyani

and Sourish Roy

College – NMIMS Mumbai
Team Pinnacle

Presents

“Xiaomi’s Transformational
Strategy towards becoming No.1
in India’s Premium Smartphone
Market Segment”

09/20/2020 Team Pinnacle, NMIMS Mumbai 1

 Primary Research Insights Communication Plan
• Focus more on experience and exclusivity rather than just features
• Increase awareness among users regarding presence in premium segment
• Dust and Water Resistance can be a priority in the upcoming premium
smartphones as a survey suggests customers looking for this feature
• Shift towards building of an ecosystem to leverage presence across categories
• Better connectivity and cross platform integration to be focused
• Focus on the growing demand for security in business use smartphones

Difference in Strategy with other Segments

• Come up with a completely different brand name under a House of Brands
architecture or an Endorsed Brand methodology
• No presence of the parent brand name Xiaomi or any name which has been
associated with it in the past like Redmi, Mi, etc.
• Avoid product clutter which can create a feeling of inferiority for premium
products
• Create a buzz in the market through initial sales based on special invitations
• Launch a series in which only one or two phones get introduced every year as
it helps maintain a buzz in the market
• Leverage influencer marketing on social media platforms to persuade the
target audience

Communication Strategy
09/20/2020 Team Pinnacle, NMIMS Mumbai 2
 Market Landscape Competitor Best Practices
• Limited products per year, premium smartphone segment focused
Buzz • Started invite only community, expectation creation through campaigns

• Focus on Overall experience, less on features and specifications

Premium • Investment in R&D, innovation driven, advanced imaging and gaming

• Built on Oxygen OS, less bloatware, yearly updates and good security
Platform • Zen mode, high degree of customisation, balanced performance

• Presence across segments, focus on premium and business segment

Segment • Durability and Longevity focus, foldable display. Exynos Processors

Primary Research Insights • Customised Android Platform, security focused for business use
Platform • Innovation driven, security updates, customisation, less advertisements

• Superior supply side dynamics, omnichannel presence

Others • Lite version of flagship phones, 5G early adopter, attractive discounts

• “Make in India” focus leading to reduction in price of certain products

Product • Opening of retail channels across the country along with online presence

• Premium experience focus, less on features, independent OS

Platform • Integration into ecosystem, cross device continuum feature

• Buzz generation, launch of one series of products per year

Others • Enhanced store experience, excellent customer service

Competition Landscape
09/20/2020 Team Pinnacle, NMIMS Mumbai 3
 Primary Research Insights Premium Smartphone Distribution Strategy
• Preferred mode of purchase is e-commerce channels and second is retail stores
• 16 of those 29 are looking to buy smartphones ranging above Rs. 20,000 on
their next purchase
• Products should also be available in sufficient quantities on these platforms to
avoid stock out
• 9 of the 25 premium smartphones seeking customers showed a preference
towards purchase from retail outlets
Leveraging Retail
• Campaigns need to be framed in order to increase awareness for retail arms
• Create an exclusive experience for consumers at these stores
• Persuade the consumers to experience the premium smartphones at the stores
before making the final purchase
• An increase in the footfall at the retail outlets can be leveraged to sell other
accessories and also create a word of mouth publicity
• The facility of live experience at these stores might attract lower-priced
smartphone consumers towards premium smartphones
• During the initial phase of a new launch, trade promotions can be a way to
incentivize retailers to focus more towards sale of their products
• Trade promotions can be implemented via trade allowances, trade contests,
POP Displays, etc.

Channel Strategy
09/20/2020 Team Pinnacle, NMIMS Mumbai 4
 Primary Research Insights Target Market
• The TG for premium smartphones falls in the age-group of 21-30 years who
are majorly students or working population belonging to the urban
community
• Counterpoint’s survey involving 800 respondents from top cities suggest
that 50% of the respondents are looking to purchase a new smartphone
within the next 12 months
• The current brand being owned also had a say in their responses

Covid-19 Impact
• A drop of 32% in sale of premium smartphones in India has been observed
in June 2020 quarter
• The reason for the drop could be attributed to Covid-19 which also involved
reverse urbanization
• Our primary research also suggests a shift in consumer mindset due to
Covid-19
• 15 of the 38 respondents said they would purchase more on requirement
rather than just for change
• Xiaomi should try to increase its visibility in the rural market
• Opening of more Mi Stores and even Mi Studios in certain geographies
could ensure better visibility and availability
• Premium smartphones should also be made available in Tier-III cities apart
from Tier-I and Tier-II cities

Covid-19 Impact Analysis

09/20/2020 Team Pinnacle, NMIMS Mumbai 5