Xiaomi is a prominent Chinese company renowned for its Smartphone and consumer electronics items around the world. This 2nd largest smartphones 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 smartphones, consumer electronics & home appliances to its consumers throughout 100 countries. The current net worth of this company is nearly $ 38.83 Billion. 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.
4P’s Or Marketing Mix of Xiaomi
The study elaborates on the product, price, promotion, and distribution strategy of Xiaomi.
Product strategy of Xiaomi
The product strategy of Xiaomi is considered the most crucial factor of its marketing mix. It always maintains the quality of products. Research says that the quality of products plays a vital role in the customer buying decision process. Consumers often judge the product quality or brand by the perceived quality. Xiaomi manages a vast product line based on the target market. It introduced different categories of products around the world. It offers its products with a variety of features preferring customer choices.
It’s mentioned earlier that the product range is too extensive, including laptops, smartphones, tab, smart TVs, power banks, smartwatches, etc. It also produces drones, water purifiers, vacuum cleaners, and rice cookers. Xiaomi’s products such as cell phones, TVs, TV boxes & speakers have ensured more than 145 industrial design awards. Xiaomi smartphone is the company’s signature product. It is one of the prominent and valued brands compared with others. Among all, It is in the world’s great demand & one of the highest-selling smartphones. Other products are branding to enlarge the products line of this company with a vast range of variety for different taste people to capture the market from other competitors.
Pricing Strategy of Xiaomi
Pricing strategy is an essential factor of the marketing mix because it plays a vital role in capturing a market in favor of good quality products. It believes that the price should be in a good range for the buyer based on the quality of a product. The current pricing strategy of Xiaomi is to set the price in a comparatively affordable range rather than its competitors.
It follows a competitive pricing strategy & sometimes economic pricing to grab the whole market. This is because the information on competitors is easily fundable due to the large number of competitors in this industry. On the other hand, it considers costs to set prices for some products to which competitors’ data is not available. In a few cases, it sells its products at a high price rather than its competitors because it offers too many features. It includes a high price for the products it sells online due to delivery costs in case of unavailability. In large, Xiaomi’s pricing strategy canbe pointed as economy pricing. Accordingly, the technology-based company sets its prices low, keeping marketing running and promotional costs to a normal range to capture the market.
Place or Distribution Strategy of Xiaomi
Place or distribution strategy plays a vital role in marketing mix. Xiaomi manufactures good-quality products at affordable prices. It always tries to manage a well-balanced distribution channel and a valued marketplace where it can market its products easy to reach an ultimate customer. Xiaomi always tries to ensure that its products are available at the nearest place to the desired customer or online. As a result, it manages a vast range of distribution channels and a well-decorated shop for a valued customer. It performs its business offline & online.
To perform its business in more than 100 countries, it has too many outlets around the world. The company is exploring its business to various new markets every year. In most cases, the sales are made online rather than offline, which shows that the manufacturer and the consumers are benefited compared with time & money. 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. It sets its vision to establish its demand in the lucrative international markets via heavy explorations and capturing market share with the support of aggressive pricing tactics and marketing strategies. Xiaomi uses e-commerce websites to promote & sell its products.
Promotion Strategy 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.
Xiaomi uses creative marketing tools & campaign event marketing programs to keep itself in touch with its valued customers. Through these kinds of promotional tools it achieves huge responses from its probable customers in many contexts, which helps to increase brand awareness. It undergoes various sales promotions taking part in various trade exhibitions and events around the year to get positive feedback from the customer. Sometimes, this kind of promotional activity clicks & creates a massive response in the market. It also introduces personal selling, with a large sales force to advantage its presence in retail stores.
Bottom Line
Where it begins, it’s tough to conclude. This established brand builds its value based on quality featured products, affordable pricing, special promotion tools & a vast range of distribution channels. It uses standard tools uniquely to stay in customers’ minds with its tech-based research. It designs & markets its products considering fastest tech world to grow its business in a quicker way. It is an excellent example of how a start-up business made itself bigger in short time in the era of tough competition. Its unique blend of business strategies and marketing strategies gives a significant flow in its brand value.
Related Reading
- Pricing Strategy of Nike
- Marketing Mix of Hermes
- Marketing Mix of Samsung
- Marketing Mix of Dunkin
- Marketing Mix of Starbucks
References
- https://xiaomi-mi.com/
- https://circlebizz.com/marketing/marketing-strategy-of-xiaomi/
- https://embapro.com/frontpage/marketing4pcase/3988-xiaomi-s-xiaomi
- https://studymoose.com/marketing-mix-success-of-xiaomi-essay
- https://e-research.siam.edu/wp-content/uploads/2019/06/IMBA-2019-IS-A-study-of-Marketing-Mix-Strategy-of-Xiaomi-Mobile-Phone-in-Yangon-that-Impacts-on-Making-Decision-towards-Customer-Satisfaction.pdf