Business Case Analysis : Xiaomi

Running head: MARKETING
Business Case Analysis
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1MARKETING
Table of Contents
1. How Xaomi tries to make high-quality, low-cost products within China:..................................2
2. Value Proposition of Xiaomi.......................................................................................................3
3. 4P’s of Marketing:.......................................................................................................................4
4. 4C’s of Marketing:.......................................................................................................................5
5. Branding 4D:...............................................................................................................................7
References:......................................................................................................................................9

2MARKETING
1. How Xaomi tries to make high-quality, low-cost products within China:
Xiaomi, a startup firm from China, launched in the year 2010 and commonly known as
MIUI, built a hardware to align with MIUI experience (mi.com 2020). The firm launched the
first handset in August which became known as Mi One, a high quality product that has been
way ahead of time and available at lower price. In the first quarter it was found that, a startup
like Xiaomi defeated Samsung to become one of the biggest smartphone makers across the
world. During second quarter of the year 2014, Xiaomi shipped close to over 15 million
smartphones in comparison to Samsung that sold only 13.2 million.
As far as pricing strategy is concerned, Xiaomi only undertakes selling through the e-
commerce. Thus, they are able to maintain a low cost as they do not have to worry about the
distribution and warehousing. Also, since Xiaomi undertake marketing through word of mouth
and the social media so it has no investments in the traditional means of marketing. Thus, it can
be said that Xiaomi reduces cost at each stage. Besides, the company themselves source the
component and handles the sellers following different strategy. Xiaomi has also been found to
sell the products for close to 18-20 months since its launch in comparison to the bigger players
who mostly discontinue the product after selling for 6 to 8 months. This is how Xiaomi is also
able to bet Moore’s Law which indicates that price of the components reduces with the phone
price remaining constant. The most crucial thing has been the fact that Xiaomi has focused more
on being ‘mobile internet company’ which implies that the company looks forward to making
money not solely on the hardware but through selling of the games, apps, internet service and
special theme for Android. Thus, Xiaomi is able to bring quality products at the most affordable
prices.

3MARKETING
2. Value Proposition of Xiaomi
Consumer Segment: Xiaomi provides higher quality products for the consumers and
primarily targets the consumer who are mostly tech savvy and within the age group of 18 to 35
years (justforfans.wixsite.com/xiaomi 2020). They consumers are mostly students and the
working class people who look for good quality product.
Needs: Xiaomi tries to meet the unique needs of the customers by providing smart
phones that has a bigger screen, CPU and qualities that helps it in deriving higher value within
smartphone market of China.
Relative Price: Xiaomi charges the minimum prices for capturing the maximum share of
the market. Xiaomi also made use of online strategy of selling for customer convenience and
fixed themselves at the medium to higher position in relation to the smartphone.
Persona
 Suitable for students
 Suitable for people belonging to working class
 Users of social media who are known for driving e-commerce market.