Marketing Management - Xiaomi

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Background, market position and present selling of Xiaomi mobile......................................1
2. Discussing internal and external factors and overall marketing growth of Xiaomi................2
3. Discussing new marketing mix strategy to achieve gap between present marketing mix and
external environment...................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The marketing management is a procedure of planning and developing different
strategies in order to promote, advertise and sell products or services that satisfies needs of
customer's. The report aims in describing background of electronic industry and market position
of Xiaomi mobile. This is a Chinese company that invests in mobile application, smartphones,
laptops and all other electronic products. This management helps in making strategies to
develop products of Xiaomi mobile in Malta country. The internal and external factors are
discussed about company in below report. Lastly, it covers new marketing mix strategy that
helps in achieving gaps of the chosen company.
MAIN BODY
In this modern world, the electronic industry plays a vital role in which Xiaomi company
is growing rapidly in Malta country. The background of electronic industry and market position
of this mobile is as below:
1. Background, market position and present selling of Xiaomi mobile.
Background of electronic industry:
The industry is based on electronic items that comprehends a huge range of various
manufacturing of products and services in Malta country. There are various elements like
television, music system, computers, mobile phones and so on of this industry. In the global
world, society is emphasized on using electronic items that satisfy their emergence of needs.
Xiaomi mobile is also in more demand by Malta people that contributes in overall wages and
sales of electronic industry. In addition to this, the other aspects of current industry are switches,
semiconducting material or devices, circuit boards, complex systems of laptops etc that helps in
fulfilling demands and requirements of customers. Now-a-days, huge amount of electronic
industry is newly developed to digitalized technology which helps in entertainment of
customer's. The consumers are intended to use various electronics items like MP3 players, audio
and video elements, calculators, cameras, etc in their activities and which often entertain them in
routine life.
Market position of Xiaomi mobile:
The production of electronic industry contributes highly in increasing per capita income
of Malta in Europe. Moreover, Xiaomi mobile stands on 4th position in world's largest
manufacturing of smartphones. Further, the revenue and income is about £18 billion which was
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reflected in 2017.There are more than 15000 employee's working in this mobile company which
serves effectively in Malta and also outside the country. The market position of Xiaomi mobile
shows it's value that is more than £46 billion that increases per capita income of country. The
another sub brand of Xiaomi mobile is Redmi which helps for long existence in competitive
market. In addition to this, market of this company also stays on 5th position in Indonesia, South
Africa and Philippines for achieving rapid growth in market.
Present selling proposition of Xiaomi mobile:
The current unique selling proposition is accounted to 70 million smartphones of Xiaomi
products that satisfies high range of customer's in Malta and also in other countries. This
company is a budget friendly that provides low and high range of smartphones in market. The
USP also shows that all smartphones are made affordable to customers of Malta. Moreover, it
can be addressed that present online shopping of Xiaomi phones is more than 60% in country.
Moreover, the current selling proposition adds the value to its product and services with sales
and revenue of £114.6 billion.
2. Discussing internal and external factors and overall marketing growth of Xiaomi.
Marketing audit:
In terms of marketing audit in Xiaomi company, SWOT analysis is performed that
reflects internal factors to outline marketing growth. Moreover, PESTLE analysis is undertaken
to understand external factors of Xiaomi company.
 SWOT analysis: The strength, weakness, opportunities and threat has been discussed
which shows the overall view of production in Xiaomi company in Malta country.
Strengths: There is good reputation of Xiaomi smartphones in electronic industry which helps in
expansion of their business in other countries. In addition to this, the main strength is that
managers and employees are loyal in serving their products and services with adequate brand in
Malta market. Moreover, they are capable in responding to customer's demand and requirement
by offering various models of Xiaomi from low to high rates. In addition to this, they offer
smartphones with a specific budget that makes affordable to Malta customer's. The price of
various electronic products of this company is low as compared to others which makes their
main strength. Moreover, the market standard is high that shows strong reputation with 87% of
customer retention.
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Weakness: The Xiaomi company is very slow in making changes to the existing products and
services in this competitive world that shows their weakness. The internal decisions are not
undertaken rapidly in terms of price, advertisement, selling, distribution and many more. This
affects negatively in the marketing orientation which lowers profitability of Xiaomi company
(Bhasin, 2018). In addition to this, there is average performance in order to launch new products
in the market. They consume almost two years in inventing new and effective electronics product
in Malta country.
Opportunities: The main opportunity of Xiaomi company is to make their products available
online and can also introduce their new application from where customers can buy easily and
rapidly.
Threats: In this global world the technology goes on changing and economic crises is a main
threat for Xiaomi company. The customers are cancelling their orders by 24% in their
electronic goods and services.
Strengths: Weakness: Opportunities: Threats:
Strong reputation in
market.
Slow in making
changes.
To use new
techniques.
The main threat is
economic crises.
Great staff in
satisfying customer's
demand.
Consuming long time
in launching new
products.
To open fresh stores in
Pacific market.
Customer's canceling
orders due to old
techniques of
delivering products
which is slow.
 PESTLE analysis: To identify the external factors of Xiaomi company PESTLE analysis
is performed below:
Political: The first step shows about political factors that affects Xiaomi company. In addition to
this, the government helps in protecting all technology of firm by imposing awful barriers that
helps in operating managerial functions in Xiaomi company. There is a huge amount of political
factors such as corruption, bureaucracy, freedom from media and many more. Moreover, Xiaomi
company also got advantage of general policy of government in securing their technological data
specifically (John, 2018). There are also conflicts that arises through social media such as twitter,
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Facebook, YouTube, google and many more which affects company. But on other hand this
media also benefits in promoting the products and services of electronic items in Xiaomi
company. Further, the local and enhanced political factors also affects company to a particular
extent in Malta country. In year 2015, this company has set up its own committee of Communists
party that helps in following government rules effectively. Moreover, the Xiaomi company is not
benefited from political factors that causes damage to its products and services. In addition to
this, the investigation shows that political factors highly demotivates the employee's in company.
This leads in lower performance level and profitability of company.
Economical: The economical factor reflects about micro and macro climate of the Xiaomi
company in Malta. In terms of economical factor interest rates, taxation, inflation, exchange of
currency rates and many more are included in it. In order to specify external factors by analysing
PESTLE also describes unemployment and labour rates of this current company. The tendency
of an economy also has direct impact on Xiaomi that helps in taking competitive advantage of
economical factor. Moreover, inequality in income of organisation has diversed economial effect
in Xiaomi company. There is also a serious issue which was identified by this analysis was about
growing public debt in country.
Social: The next external factor of PESTLE analysis is social that helps in supporting Xiaomi
company. In addition to this, the relation between people is highly maintained by this
organisation. They are mainly focused in targeting the young generation which helps in more
profitability and productivity. Moreover, electronic elements are manufactured in terms of
satisfying the customer's widely in Malta country. Further, social factors emphasize to describe
that Xiaomi company provides products and services according to cultural trends of market. The
standard and value of this organisation is highly qualified in terms of increasing profitability.
They are also beneficial in terms of social conditions that helps in attracting more potential
customers in the existing market. The overview of Xiaomi company reflects that they are highly
capable of improving their weakness that reaches to customer's demand and requirement of
Malta. In addition to this, they are mainly focused on attaining consumer's feedback for their
various electronic items. They are working and producing every items that satisfies the society
and people of Malta. The maximum population growth of country is attracted towards Xiaomi
products and services in competitive market. They are expert in terms of maintaining relations
with public that enhances the profitability and production concept. Moreover, they are also
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focused in bringing awareness to the remaining people of Malta. In context to this, the overall
revenue is achieved more that contributes in high per capita of country.
Technological: The next factor is in terms of technology which is widely introduced by Xiaomi
company in various elements like laptops, computers, television and many more. They are highly
eligible in distributing goods and services effectively with the great number of staff they have
assigned in company. By using technological factors appropriately, they are able to communicate
within the organisation flexibly. They make use of technology by using audio and visual
communication system that helps to be in contact with each other in the company. On other side,
the technological factor is beneficial to Xiaomi company as they are providing training and
development to their employee's in firm. The innovative techniques like seminars, debates and
many more are conducted in company that makes workers more advanced and knowledge-
oriented. In context to this, the trained employee's effect positively in production and
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Illustration 1: PESTLE Analysis
(Source : Pestle Analysis, 2018)

manufacturing process of Xiaomi company (PESTLE Analysis, 2018). In addition to this, the
technological factor also advances the organisation by providing potential and extra return on
investment. By using online services all electronic goods are delivered to the customers on
proper time and place. The main benefit of this factor is that new and advanced techniques are
used to deliver products and services to potential customer's.
Environment: The atmosphere of Xiaomi company is highly maintained which motivates
workers in producing better goods and services to customer's in Malta country. In addition to
this, the overall climate and environment of this organisation is positive that helps in sustaining
employees for long time. The conflicts is identified and is resolved soon within organisation that
helps in maintaining positive environment. Moreover, this firm is more attentive in satisfying
needs of the workers in Xiaomi company.
Legal: The last factor is legal in PESTLE analysis which helps in identifying opportunities of
organisation. The Xiaomi company is attentive in serving health and safety requirements to every
employee's. In order to maintain equality among all the members, proper wages and
compensation is provided to them. The managers are focused in serving consumer's proper and
adequate products and services in market. Lastly, the legal factors help in seeking about
advertising, labelling, distribution of their electronic items which are qualified and effective that
are served to Malta consumer's and also outside country.
Market attractiveness of Xiaomi company:
The overall market in terms of Xiaomi products and services shows rapid growth in
Malta country. The people or consumers are highly attracted towards their smartphones as they
provide dual sim card facility, and wireless systems in it. The another thing is price which is
average that makes affordable to every customer's in market and also results in more
attractiveness towards their products and services. The users of this mobile phones are overall
covered in 23 countries other than Malta. In addition to this, they are concerned in promotional
strategies which helps in attracting potential customers towards their products. Moreover, they
sell the hardware items with specialized benefits with low cost in order to earn high profitability
of company. The overall sales has reached to £750 million which helps in spending more on
technological factors. In addition to this, they contribute more in advertisement process which
includes television, pamphlets, magazines and many more that brings awareness in the people of
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Malta country. They are also focused in launching Mi Music system, Mi Video player that helps
in attracting more clients in market. In terms to this, the value and standard of company is
brought up at high level which supports in high attractiveness of Xiaomi company. The
customer's feedback is highly recognized which helps in serving more effective goods and
services to them. The innovative techniques are used by Xiaomi company to deliver products in
limited time and moreover it results in high market attractiveness in Malta.
Potential growth in market:
In the global world, there is high and effective potential growth of Xiaomi company that
contributes more in services like hardware, internet services and e-commerce. In terms of
hardware it serves innovative designed products with high quality that satisfies customer's need
and requirement in Malta country. Moreover, the internet services are provided in abundant that
supports in potential growth of Xiaomi business. The efficient services are provided with low
and retail prices that supports in long term sustainability of Xiaomi in competitive market. As
this company is serving mainly four types of mobile phones which helps in increasing market
share of company in global world. Further, the company received more concentration which
reflects fastest and adequate increase in marketability. The promotional strategies that are
applied by this firm is highly beneficial to them in existing and for potential growth in market.
3. Discussing new marketing mix strategy to achieve gap between present marketing mix and
external environment.
In order to achieve high potential growth, the new marketing mix strategy is performed as
under:
Product: The first element that is identified in marketing mix strategy is product segmentation
which is highly qualified in Xiaomi company. The present strategy of this company is to sell
product at low price that can be made affordable to every customer's. Moreover, the products
include mobile phones, calculators, cameras, and many more. The local and external political
factor of Malta affects products and services of company. But in addition to this, the products
and services must be adequate that helps in achieving potential growth of company. The image
and value of products must be maintained in context to sustain for long term in potential market.
Moreover, it helps in filling gap between present strategies and external factors of company.
Promotion: The strategy of Xiaomi company in terms of promotional factor is very advanced
and innovative. They advertise their various products through social media, magazines,
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pamphlets, and so on. Further, they also use the strategy of direct marketing of their products in
Malta. But the political factor also restricts in promoting various electronic items in market. The
new marketing mix supports in filling the gap between present strategy and external factors in
Xiaomi company. In addition to this, they promote the products through social media, sales
promotion, personal selling, marketing communication, direct promotional activities and so on.
By promoting every products wisely, it helps in grabbing the attention of potential people
towards Xiaomi company in Malta.
Price: The present strategy of Xiaomi company is to keep the price low of every products which
is affordable to every customer's in country. Moreover, if the price is lower then it is affected
externally by economical factor. If the price of product is low then per capita income of country
will also be decreased. In addition to this, the new marketing mix strategy is adopted that helps
to mitigate this gap between company's strategy and external factors in Malta. Moreover, price
helps in adding the value to their products and services which attracts more potential customers.
The Xiaomi must higher the price of goods and services which increases their profitability and
credibility of company.
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Place: The next component is place in new marketing mix strategy which helps to solve issues
about external factors that effects on present strategy of Xiaomi company. This organisation
strategy in placing their stores where customer's find easy and quick to purchase their products.
In terms of social factors that affects firm is to satisfy customer's by delivering goods in limited
and appropriate time period (Marketing Mix, 2018). This company is very slow in their delivery
services and new marketing mix strategy supports in filling this gap in Malta. Moreover, they
must increase trade channels that helps in placing goods at every stores on proper time. If
electronic products are made available at every stores, it helps to attract more customers.
Moreover, it also helps in increasing profit and production level of company.
People: The Xiaomi company strategies in selecting and appointing the correct people,
employee's in their company who plays an important role in performing effectively in
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Illustration 2: The extended marketing mix.
(Source: Marketing Mix, 2018)

management. Moreover, this results in innovative practices of production and delivering process.
But the external factors that is environment of company does not lead in appointing new and
eligible employee's. As the Xiaomi company is not providing appropriate training to workers
which highly affects atmosphere of company. To fill the gap between present strategy and
external factors, this new marketing mix helps in improving training and skills of every
individual of company. They must also pay proper and effective remuneration to each worker
that helps in maintaining culture of organisation.
Process: The process strategy of Xiaomi company is to deliver their goods and services to their
potential customer's. But moreover, the technological factor affects in slow manufacturing and
producing process of Xiaomi’s products. In terms of this, new marketing mix strategy helps in
mitigating this gap as it suggests to take advance support of IT elements. This helps in rapid
production and also increases quantity as per the price given by customer's. Moreover, they must
pay attention in inventing new and innovative goods that helps to be customer centric.
Physical evidence: This step involves all the tangible goods that are being delivered to potential
consumer's in Malta country. The main strategy of Xiaomi company is to provide all kinds of
goods with effective packaging and labelling in market. The legal factor affects externally in
terms of packaging and delivering through online process. The new marketing strategy supports
in adding value to electronic products and services of company.
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CONCLUSION
From the above report it can be concluded that, Xiaomi company is in more demand by
Malta people that contributes in overall wages and sales of electronic industry. In addition to
this, the market position reflects that Xiaomi stands on 4th position in world's largest
manufacturing of electronic items. Moreover, it is analysed that the current unique selling
proposition is about 70 million smartphones that helps to be customer oriented. From SWOT
analysis the main strength is identified about this company is that managers and employees are
loyal in serving their products and services with adequate brand in Malta market. Further, it can
be said that as this company keeps the prices low it is widely impacted by economic factors. It is
also recognised that innovative techniques are used by Xiaomi company to deliver products that
results in high market attractiveness in Malta. The promotional strategy is widely applied by
Xiaomi that increases potential growth in market. Lastly, it can be ended that promotion element
in new marketing mix strategy widely helps in filling the gap between present strategy and
external factors of company.
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