Marketing Recommendations for Xiaomi Mobile Phone Launch in Pakistan

This report provides a comprehensive marketing analysis and strategic recommendations for the launch of Xiaomi mobile phones in Pakistan. It begins with key findings from an environmental scan, highlighting the importance of the Pakistani market for Xiaomi due to its large smartphone industry and price-sensitive consumers. The report then identifies clear implications of these findings, including the need for diverse phone models and improved advertising. A recommended entry strategy suggests a joint venture with a local partner to leverage credibility and navigate the regulatory framework. The marketing mix strategy focuses on product differentiation, penetration pricing, an improved distribution network, and targeted promotional campaigns to attract customers. The analysis incorporates SWOT and PESTEL analyses to understand the market dynamics and consumer behavior. The report emphasizes the importance of adapting to local market conditions and tailoring strategies for success, making it a valuable resource for Xiaomi's market entry into Pakistan. The report concludes by referencing several academic sources used in the research and analysis.

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Table of Contents
Key Findings From The Environmental Scan Report.....................................................................3
Clear Implications Of The Key Findings Identified........................................................................3
Recommended Entry Strategy.........................................................................................................4
A Recommended Marketing Mix Strategy......................................................................................5
References........................................................................................................................................7

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Key Findings from the Environmental Scan Report
The chief objective of the environmental scanning report had been to comprehend the launch
of Xiaomi Mobile Phones in Pakistan. It was found that Xiaomi entered into the mobile market
with the objective to be the best mobile vendor in the market offering all the services that are
demanded by the users. It has been identified that the market of Pakistan is different from that of
the rest of the world. Smartphone industry in Pakistan can be considered to be a huge industry.
35% of the people in Pakistan make use of inexpensive phones because they feel insecure in
making use of expensive items. This proves advantageous for Xiaomi because of the fact that
their phones are considered to be inexpensive in terms of price. The advertising schemes of
Xiaomi are not so attractive and the company has to pay attention towards this particular aspects.
In order to attract people in Pakistan, there must be sound advertising schemes.
The economy of Pakistan is unstable and politically unsound as well. In the context of the
Smartphone industry, it is noted that people find it worth investing in smartphone because
Smartphone are considered to be essential items in the present times. Since Xiaomi’s
Smartphone possesses all the features when compared with the competitors, it is likely that
company will succeed in Pakistan (Armstrong, 2001).
Clear Implications of the Key Findings Identified
From the SWOT analysis, it has been identified that Xiaomi possesses only two lines of
phones and thus it is important to introduce different variety and classes of the phone that would
lure users. This implies the fact that the company must have different items to offer to people of
Pakistan with the objective of becoming leaders in Pakistan. The company doesn’t possess
proper advertising strategies such as campaigns. This implies that the company is quite weak in

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its promotional strategy and has to pay due attention towards it for luring people of Pakistan. In
terms of product, it has been found that the company has to differentiate its product by means of
design and specifications. Hence, it implies the fact that the company needs to place importance
in the product strategy as well.
From the PESTEL analysis, it has been found that most of the population of Pakistan
comprises of people between the age group of 14-30. It implies that since the youth tends to be
majorly attracted towards technology in comparison to another age group, Xiaomi can be
successful in the market of Pakistan. Since importing materials is easy in Pakistan from China, it
can be revealed that Xiaomi can easily import items (Mele, 2015).
Recommended Entry Strategy
There are different methods through which the company can easily enter into the foreign
market. Some of them are directly exporting, licensing, franchising, partnering, joint ventures,
buying the company, turnkey projects, piggybacking and by means of Greenfield investments. In
the context of Xiaomi, it can be recommended that it can enter into the Pakistan market through
joint ventures. Joint ventures can be considered to be a kind of partnership that comprises of the
development of the third independently administered company. In the context of a joint venture,
two companies will prefer to work together in the market of Pakistan. The risk along with the
profits will be shared equally by both the companies. By entering into the joint venture with the
local partner might offer the western firms with improved credibility, market experience and can
also help in the navigation of Pakistan’s complex regulatory framework.
Joint ventures also tend to offer an advantage in risk management as it easily dilutes legal
along with financial liability taking place between two companies and which proves to be quite

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advantageous in each step of market entry. By creating a joint venture in Pakistan shall offer the
company with access to better resources such as specialized staff and technology. If required the
firms can easily separate their business from the rest of the organization and then it can sell it to
the parent company. The chances of success of Xiaomi in Pakistan would be higher because of
the fact that the company would be riding with well-known brands. Hence, the company’s
credibility would increase (Wahlberg, 2012).
A Recommended Marketing Mix Strategy
As per the findings attained in the environmental analysis, it can be revealed that different
recommendations addressing the 4ps of marketing such as product, place, price, and promotion
need to be understood.
Product
It is important for the company to introduce several new models so that it can cater to the
young and old generation people. The phone needs to be quite easy to use so that people from
age group can use it. In order to cater to the people of Pakistan, the product needs to perform best
in terms of durability, usability, accessibility.
Pricing Strategy
Possessing a wide variety of products to offer to the customers, it can be revealed that
pricing tends to play a major role in the marketing mix of Xiaomi while entering Pakistan. It can
be stated that the company needs to implement a penetration pricing strategy while entering into
the markets of Pakistan. It can be revealed that by implementing this particular pricing strategy
in Pakistan the company shall be capable of effectively competing in the market. Penetration

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pricing strategy proves to be effective in Pakistan because of the fact that there is little product
differentiation and the product tends to be quite suitable for the mass market (Schultz, 2012).
Place
Xiaomi would be making use of the supply chain management systems in order to deal
effectively. It shall improve the distribution network in Pakistan to a great extent and the
company will be capable of providing the retailers and other vendors with the required products
on time.
Promotion
In Pakistan the company needs to implement different sales promotion strategy in order to
lure the customers. Different promotional campaigns need to be organized in Pakistan making
the people aware regarding promotional offers that can be availed while buying smartphones.

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References
Armstrong, P. K. (2001). Principles of Marketing. Chicago: Patience Hall.
Mele, N. (2015). The Secret to Smartphone marketing is still E-mail. Retrieved from
https://hbr.org/2015/11/the-secret-to-smartphone-marketing-is-still-email
Schultz, D. E. (2017). Integrated Marketing Communication: may be definition is in the point of
view? Retrieved from
https://www.researchgate.net/publication/313361674_WHAT_IS_INTEGRATED_MAR
KETING_COMMUNICATIONS_Integrating_'integrated_marketing_communications'3_
Models_4Cs_4Es_4Ss_and_a_Profile
Wahlberg, W. (2012). Smartphone marketing: a study into the past and present. Laura University
of Applied Sciences. 33.