Marketing Plan Analysis: Xiaomi Corporation - MKT600 Assignment

This report provides a comprehensive analysis of Xiaomi Corporation's marketing plan, examining its objectives, strategies, and the marketing mix variables. The analysis begins with an overview of Xiaomi's operations, including its product range, market expansion, and objectives related to gaining market share and appealing to customer needs. The report then delves into the development of Xiaomi's marketing plan, including its microenvironment analysis (customers, competitors, employees, suppliers, and shareholders), and marketing strategies, such as the hunger marketing strategy and partnerships. The report also outlines Xiaomi's action programs, budget, and positioning strategy, focusing on its approach in the Chinese market and its expansion into international markets. The marketing mix variables, including value proposition, product strategy, pricing strategy, distribution strategy, and promotion, are then discussed in detail. Furthermore, the report critically evaluates Xiaomi's business situation, highlighting its strong revenue growth, multi-brand strategy, and its approach to innovation and market segmentation. The report concludes with recommendations based on the analysis of the marketing plan. The report is a solution for a marketing assignment on Desklib, which provides past papers and solved assignments for students.

Running head: MARKETING PLAN ANALYSIS
MARKETING PLAN ANALYSIS
Name of the Student
Name of the University
Author Note

1MARKETING PLAN ANALYSIS
Table of Contents
Introduction....................................................................................................................2
1. Development of the marketing plan...........................................................................2
a. Identification of objectives and issues, marketing strategies, action programmes 2
b. Budget and controls................................................................................................4
2. Outlining the marketing mix variables.......................................................................6
a. Defining the value proposition of the organization................................................6
b. Critical evaluation of the business situation...........................................................6
c. Product strategy......................................................................................................7
d. Pricing strategy.......................................................................................................8
e. Distribution strategy...............................................................................................9
f. Promotion..............................................................................................................10
Conclusion....................................................................................................................10
Recommendations........................................................................................................10
References....................................................................................................................12

2MARKETING PLAN ANALYSIS
Introduction
Xiaomi Corporation is an organization that has its origins in China and mainly
operates in the production of different technology based products that include, laptops,
mobile phones, earphones, apps, TVs and different other electronics products. The first
smartphone of Xiaomi was released in the year 2011 and the company has also been able to
acquire a major position in the industry with the help of products that fulfil the needs of
customers (Mi.com 2019). The operations of Xiaomi had been expanded to India by
launching the different consumer based products. The expansion of Xiaomi has been able to
help in development of the manufacturing processes in the countries like, China, Singapore,
India and Malaysia. The company also aims at establishing the roots of its operations in
Indonesia, Philippines and South Africa (Mi.com 2019).
1. Development of the marketing plan
The marketing plan of Xiaomi Corporation will be analysed in the report based on the
situational analysis that has been completed in previous part of the assessment. The
microenvironment of Xiaomi will be examined in a detailed manner with the help of
discussion related to customers, competitors, employees, suppliers and shareholders. The
marketing mix of the company will also be related to the macro environment and internal
environment analysis that has already been completed (Brooks, 2016).
a. Identification of objectives and issues, marketing strategies, action programmes
Objectives of the organization – The major objectives that have been developed by
Xiaomi are related to gaining a huge share in the technology industry. The company mainly
aims at appealing to the different emotional needs of the segment of target customers. Xiaomi
aims at enhancing the levels of revenues in the industry with the help of sales of limited
amounts of the products that are sold to a large group of customers. The company aims to use

3MARKETING PLAN ANALYSIS
the emotional connection with customers in China and various other countries in order to
reduce the levels of rational decision making by the customers (Du & Jia, 2017).
The psychological strategy named hunger strategy is mainly implemented by Xiaomi
in order to develop a connection with the customers in an efficiency way. Xiaomi aims at
making investments in different organizations like, Midea in order to improve its shares in
“Smart Home” based market which is growing on a continuous basis (Ferrell & Speh, 2017).
The company is also aiming at entering the Western markets in order to increase the levels of
awareness based on products that are offered to the customers. Patents and lawsuits have
proved to be a major issue in the operations of Xiaomi in the smartphone industry. The
software based portfolio of the company also needs to be improved for the purpose of
continuing its growth in the industry (Giachetti, 2018).
Marketing strategies of Xiaomi – The price sensitive nature of Asian customers has
been considered in order to develop an effective marketing strategy by Xiaomi Corporation.
The notion that had been previously developed based on lack of proper quality of Chinese
products has been changed by the products that have been offered by Xiaomi. Xiaomi had
developed smartphones that were packed with various premium features at prices that were
half of the competitors including Samsung and Apple. The price “Premium” was also reduced
by the product quality of Xiaomi (Glowik, 2016).
The channels that had been selected by Xiaomi were also based on the
implementation of Hunger Marketing strategy by the company. Xiaomi had formed a
partnership with Flipkart in order to reach the customers. Xiaomi had gained success in the
highly competitive smartphone industry with the proper development of partnerships that are
formed with different organizations. The sale that was organized by Xiaomi in order to
provide its products to the customers is considered to be an important part of the sense of

4MARKETING PLAN ANALYSIS
scarcity that was developed in order to increase the demands for the smartphones (Greeven &
Wei, 2017). The needs of customers were provided highest levels of importance by Xiaomi
so that it is able to maintain the revenue levels. The marketing strategies are also influenced
by the services that are provided to the customers after sales have been completed. The
Hunger Marketing strategy has proved to be most important part of the success that is gained
in the domestic market and the international locations of the company as well (He & Pedraza,
2015).
Action programmes – The actions that are implemented by Xiaomi Corporation are
mainly based on the ways by which the organization can use the emotional connections in
order to maintain the loyal customer base. The low prices that are charged by Xiaomi for the
premium quality products will be able to play the most significant role in enhancing the
revenues of the company in any target market. The marketing strategies that have been
developed and implemented by Xiaomi Corporation have an impact on the action plans
formed by the company (Johnston, 2015).
b. Budget and controls
Positioning strategy of Xiaomi in China – Xiaomi is a smartphone making
organization in China and the organization is currently planning to sell the premium mobiles
in the country. The analysis has been able to depict that the consumers in China have the
willingness to pay for the products. The company is trying to strengthen the position in the
mid-level and the high tier based market as well. Xiaomi has started its operations in the
smartphone market by developing the high-end based smartphones that have low price points
in comparison to the other makers of devices (Kasemsap, 2016). The intense competition that
is faced by Xiaomi in smartphone market of China include the organizations like, Vivo and
Oppo. The success of Xiaomi in the Chinese market is mainly based on the strategy that is
implemented by the company. The positioning strategy of Xiaomi has faces some major

5MARKETING PLAN ANALYSIS
changes due to the increase in offline sales channels. The market shares of Xiaomi in had
increased by 1.36% in Hong Kong in the year 2019 (Kotler, Kartajaya & Setiawan, 2016).
The Chinse market of smartphones has been struggling for the growth in the last few
years. Xiaomi has been influenced in a huge manner by the slow growth that was experienced
by the Chinese smartphone industry. The Chinese consumers have started spending more
time on the usage of mobile phones and a major smartphone organization like Xiaomi needs
to maintain the quality and design of the products and the brand image as well (Lodish et al.,
2015). The focus of Xiaomi has increased in the different international markets that it
operates along with its home market China. Xiaomi has been quite optimistic about its future
operations in the global internet services based business. The sales of smartphones have been
able to contribute to the success that has been gained Xiaomi in China and the various other
countries (Olanrewaju et al., 2018).
The positioning strategy that is formed by Xiaomi is based on revenues that the
organization aims at gaining from the internet services. The international customers of
Xiaomi have been influenced in a huge manner by the services that are offered by the
organization. The process of strategic positioning has been implemented by Xiaomi in order
to target the different market segments. The budget related to smartphone brands and
willingness of customers to pay has started increasing the last few years due to changes that
have taken place in Chinese smartphone market (Paley, 2015). The differentiated brand
positioning strategy has also been implemented by the company in order to manage the brand
equity of Xiaomi smartphones. Xiaomi has been successful in gaining popularity in the
Chinese smartphone industry by proper identification of the niche group of the smartphone
users (Pan, Zhang & Zhang, 2016).

6MARKETING PLAN ANALYSIS
The consumers aim at getting richer levels of features and new experiences from the
smartphones. The different generations of smartphones that are now being developed by
Xiaomi are formed with respect to the improvement in quality and features of the products
(Schaffmeister & Haller, 2018). The company is trying to change its positioning strategy
from offering low priced products to improving the levels of differentiation in the
smartphones based on needs of the consumers. Xiaomi is also emphasizing on the technical
aspects and the specifications of products that help in improving the experience of the users
(Sharma & Sharma, 2019).
2. Outlining the marketing mix variables
a. Defining the value proposition of the organization
The value proposition that is developed by Xiaomi is related to providing high quality
based products to the customers. This also involves the appropriate improvement of lower
customer costs and improvement of product value as well. The core of the development of
smartphones is quality of the products (Mi.com 2019). The unique features that are offered by
the products of Xiaomi include, big screen, MIUI system and the CPU. The qualities have
enabled Xiaomi to gain the relatively high value in Chinese market of smartphones
(Steenkamp, 2017). Xiaomi has gained a reliable group of suppliers that include Samsung,
LG and Toshiba who are responsible for providing accessories and spare parts to the
company. Xiaomi has also considered the local smartphone organizations that have used
Android systems in China (Turban et al., 2015). Xiaomi has also taken the decision to adopt
lower customer based costs in order to gain share in the market. The medium to high position
that has been gained by the smartphone is based on usage of online selling based strategy for
convenience of customers (Turban et al., 2018).

7MARKETING PLAN ANALYSIS
b. Critical evaluation of the business situation
Xiaomi Corporation has recorded a strong level of revenue, that is approximately the
RMB174.9 Billion. The revenues are able to represent the year by year growth that has been
gained by the organization that is around 52.6%. The international revenue of the
organization on the other hand has grown 118.1% every year and has ultimately resulted to
gaining total revenues of RMB70.0 Billion. Xiaomi has continued to show immense growth
even after the fierce levels of competition that have been faced in the smartphone and
technology based industry (Xu, Wang & Ying, 2019). The multi-brand strategy that is
developed and implemented by the organization provides support to the growth of revenues
and position of Xiaomi as well. The growth that is gained by Xiaomi has been quite robust in
the various segments of the business. The revenues that are gained by the company from
lifestyle products related segment and the Internet of Things segment has supported the high
speed related to growth that is maintained by Xiaomi (Yang & Wos, 2017).
The multi-brand based strategy that is applied by Xiaomi in the year 2018 is
considered to be a major factor that has supported the growth of the organization. The brand
of Xiaomi has improved its focus on the process of pioneering the usage of advanced
technologies in development of the products (Yu, Ren & Shen, 2017). The multiple brands
that operate under Xiaomi include, Redmi, Black Shark, POCO and Meitu. The company
aims at targeting different segments of customers by offering various products to them
according to the needs and demands. The offline and online retail channels of the company
have supported the growth that is experienced by Xiaomi in smartphone industry (Xu, Wang
& Ying, 2019).
c. Product strategy
The cheap prices that have been set for the products of Xiaomi does not mainly
signify the lower quality based products. The prices of the smartphones and different other

8MARKETING PLAN ANALYSIS
products of Xiaomi are quite low in comparison to the price levels of products developed by
its major competitors Samsung and Apple. The company is also aiming to develop good
quality based smartphones that have low prices. This strategy is considered to be quite
effective for the smartphone industry in China and the various other countries as well
(Forbes.com. 2019). The major features that make the products of Xiaomi attractive in nature
include, robust case, reasonable battery, high resolution screens and it operates on the
Android based OS that is called MIUI. The smartphones that are offered by Xiaomi are also
able to provide options for customization (Kotler, Kartajaya & Setiawan, 2016).
The software of Xiaomi is the major factor that drives the performance of the
organization rather than the hardware quality of the products. The different products that are
offered by Xiaomi to the customers include, the smart home devices, laptops, tablet
computers and mobile phones and smartphones (Lodish et al., 2015). The company aims to
communicate with the consumers with the help of proper usage pf Facebook. The feedbacks
that are received by the organization are important for Xiaomi to meet the needs of
customers. Proper usage of social media is able to provide a major position to Xiaomi in
smartphone industry. The organization is highly consumer oriented in nature and has also
become quite unique in its operations (Turban et al., 2015).
d. Pricing strategy
The amounts of investment that are made by Xiaomi on the products are mainly
related to the production process and the design as well. Xiaomi has aimed at increasing the
levels of savings related to manufacture of products in order to the lower the price for
products as well. The average prices of the products of Xiaomi are quite low in comparison to
the products that are offered by the other organizations. The marketing strategies that have
been implemented by the company are also based on low costs (Greeven & Wei, 2017). The
company sells most of its products online and is successful in lowering the costs based on

9MARKETING PLAN ANALYSIS
development of physical or the online stores. The pricing strategy that has been implemented
by Xiaomi is based on development of high levels of profits in its future operations. The
products or devices of Xiaomi are sold at almost the exact prices or costs that are required in
the manufacturing process (Giachetti, 2018).
The prices of products of Xiaomi are just able to cover the costs of the devices rather
than covering the entire manufacture based costs. The long term strategies that are developed
by Xiaomi are also focussed on improving the future operations of the organization and
gaining high share in the smartphone market as well (Xu, Wang & Ying, 2019). The major
factor that has led to the reduction of manufacture and production based cost is based on the
lack of requirement of physical stores. The other factors that are considered in the
development of physical stores include, the hiring staff, keeping inventory, reduction of store
operation costs and reducing the problems related to communicating with the retailers and
distributors (Sharma & Sharma, 2019).
e. Distribution strategy
Xiaomi has its operations in many different countries other than China, where the
smartphone market is dominated in a huge manner by the organizations like, Samsung and
Apple. The major obstacle that is able to affect international expansion of Xiaomi is the high
levels of competition. Xiaomi has been successful in the development of a strong customer
base in Singapore and Malaysia (Schaffmeister & Haller, 2018). The expansion of the market
of Xiaomi in other countries like, Philippines, India is also able to contribute to the revenues
that have been gained by the organization. The major distribution channel that is used by
Xiaomi is the online platform rather than physical stores (Pan, Zhang & Zhang, 2016).
The reduction of requirement of physical stores is considered to be an advantage for
Xiaomi and the customers of the organization as well. The organization has saved huge

10MARKETING PLAN ANALYSIS
amounts of money due to reduction in needs for developing more distribution channels. The
direct retail strategy is used by Xiaomi in order to offer the products to customers with the
help of its stores. The online channel has been used by Xiaomi in order to meet the needs of
consumers and providing them with the products within less amounts of time (Brooks, 2016).
f. Promotion
Xiaomi uses social media in an active manner and the marketing channels are able to
play a major role in increasing the levels of presence of the organization in smartphone
industry. The engineers of Xiaomi are able to make effective use of social media in order to
communicate with the users. The method of flash sales has been used by the organization in
order sell the products to the customers and also creating the sense of urgency. The fan base
that is created by Xiaomi is considered to be an important factor that has supported the sales
of the organization (Xu, Wang & Ying, 2019).
Conclusion
The report can be concluded by stating that Xiaomi has been successful in gaining a
huge share in smartphone industry. The revenues are gained by Xiaomi from its operations
that are developed in different countries that include, India, Hong Kong, Malaysia. The
customer segments that are developed by Xiaomi are based on various product categories that
are offered by the organization. The marketing mix that is formed by Xiaomi has the ability
to support the operations and process of revenue development of the organization as well.
The improvement of product quality can help the organization to enhance the profitability
levels and revenues in the highly competitive technology industry.
Recommendations
The major recommendations that can be provided to Xiaomi in order to maintain its
future operations in smartphone industry are as follows,

11MARKETING PLAN ANALYSIS
 Xiaomi needs to improve the quality of products in order to attract different
types of customers.
 The organization can aim at developing more number of physical stores in
various parts of the world in order to further increase awareness levels of the
products.
 The position of Xiaomi can be maintained in the Chinese smartphone market
can be improved by increase the product line of the organization in different
segments.
 Xiaomi can plan to expand its operations in other countries in order to increase
the levels of presence in the smartphone market. The dependence of Xiaomi
on only the Asian countries for its revenues can be reduced with the help of
expansion of operations on an international level.