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Xiaomi Market Strategy

Autor:   •  January 17, 2018  •  4,108 Words (17 Pages)  •  397 Views

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(2) In the world’s attention. Because of the successful of Xiaomi more and more people know this brand and start to focus on their products. That is a good opportunity for Xiaomi and now they should focus more on the brand value. Therefore, Xiaomi has to create a stronger user experience and unique branding and ecosystem.

(3) 3G and 4G network development. The development of network technology is also good news for mobile company. Customers are looking forward to see more companies with great innovation and technology reform. The rapid development of network also accelerates the frequency of users to change their new mobile phone.


(1) Price war between other brands. For Xiaomi, they are facing to too much competitors not only apple, Samsung and HTC but also Hua Wei, Coolpad, ZTE, Lenovo and so on. More and more companies start to use low cost strategy and push out their low-price products. That means customers now have more choices for them when they want to buy a cheap mobile phone.

(2) From the pressure of public opinion People who want to discredit Xiaomi try to take advantage of Xiaomi, fabricate a variety of negative news to destroy the image of Xiaomi phone. In addition, because the Xiaomi mobile phone users questioned its own shortcomings and after-sales service, to promote the media and the masses of Xiaomi phone having a lively discussion, public opinion on the future development of Xiaomi phone produced a huge pressure.

(3) The goal of future development becomes not clear. Xiaomi try to suitable for this competitive market and they had made some change. For example, they push out some new products like Sport watch, Xiaomi TV and headphone. Too many kinds of products make customers feel confused, they don’t know what Xiaomi really is now. However, what is the future of Xiaomi? Maybe even the CEO of Xiaomi - Lei Jun also don’t know.

PESTLE analysis

Economic situation

Economic situation is the most important element that influences the business. These years many countries are facing the pressure of economy downturn, as a result, more and more people lose their job and with little money to spend. In China, the daily life spending is much higher than before and the household income did not increase. More and more young people begin to don’t adapt to the fierce competition in the city. The online world become they are the only way to release the pressure of life. As a result, the demand of smartphone is still very high and it has become a necessary tool for people and the low cost smartphone become a popular choose.

Social situation

Smartphone has changed human beings’ life style and even social contact. With the expansion of city, there is less and less communication between people, especially the face-to-face communication. Instead, it is the continuous development of network society. Nowadays, hand phone is not only for people to call and text message, as the development of Internet and wireless network more and more functions are being discovered. Smart phone will be a trend that leads our life and plays more and more important role in the social life.

Technology situation

The development of mobile phone’s hardware technology makes it thinner and lighter become possible. It also makes the speed of mobile phone upgrade quickly. There are also a lot of new technologies coming out there years, which make the smartphone easier to use, such as fingerprint identification technology, the retina screen, force-touch screen. On the other hand, smart phone companies also try to perfect their smart phone system and make the hand phone runs smoothly and expediently. Technology is the main reason to reduce the cost of smart phone and more and more companies had started to get into the low cost product.

Marketing goals of Red Mi Note

(1) To increase the sales number of Red Mi Note in China mainland from 6 million in 2014 to 10 million in 2015, an increase of 67 percent.

(2) To improve the Red Mi Note product line and push out a new product in 2015– Red Mi Note 3 that has fingerprint identification technology and rapid charging technology.

Target market of Red Mi Note

The target market of Red Mi Note is from 16 to 39 years old, which is the most powerful group in the smartphone market. This group of customers is very sensitive to the new mobile phone technology and willing to chase after the fashion trend. They focus on the hardware of the smartphone but after the research 70 percent of them think most of the smartphone in this market is too expensive. Red Mi Note is a product aims to young ages who have the online purchase behaviors and finding a smartphone with perfect hardware but low price.

Red Mi Note’s brand position

Red Mi is the premier of the low cost smartphone brand that designed for young adults and working adult (between 16 to 39 years old). This can be achieved by leverage the firm competitive edge: industry experience and passion. Xiaomi is a company founded for mobile fancy and not only their smartphone but also hand phone system ‘MIUI’ are both with high configuration and easy to use. Red Mi is also means good quality and innovation.

Marketing strategy

Product strategy

(1) Competing only on price was not what Xiaomi has chosen as their core strategy. Although, compare with Samsung and apple we can easily find out that Xiao Mi is cheaper, looking all over the market Xiaomi is not the cheapest. There are a lot of smartphone brands that is cheaper than Xiaomi but customers are not willing to buy their products. Because they have a lot of problems with their products such as poor quality and badly appearance design. By coming up with a good quality phone at lower price range was the key strategic move that put Xiaomi firmly on the map. The phone has a robust case, high quality screen and a reasonable battery. It doesn’t break easily, unlike cheaper copycats that start having issues after just a few months of use. Therefore, Red Mi Note should continue the high quality as before and improve their product by gather user experience. So, the next Red Mi Note should with more tough screen that is not easy to break when hand phone drop out, larger capacity of the battery that make hand phone can use for more than two or three days without charging, with fingerprint


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