Xiaomi: Assignment 1 Ghayoor Zafar Brand Managenemt 01-111182-151

Assignment 1
Ghayoor Zafar Brand Managenemt 01-111182-151
Xiaomi
origin and history
Xiaomi is an electronics company based in Beijing, China. The company was founded in April
2010 by ex-kingsoft CEO Lei Jun. The core target for the company at that point was to build a
custom ROM based on Google’s Android. The company is a result of the union between the
owners of Qualcomm and Temasek Holdings that is an investment firm from Singapore. MIUI,
the Rom, created by the company received huge appreciation globally due to immense
customization option on offer. By the end of 2013, the MIUI had nearly 30 million users all over
the world which is huge given the fact that it was a new company back then. Today, Xiaomi is
one of the top five smartphone vendors in the world. The smartphone commodities of Xiaomi
include different series such as Mi Series, Mi Note Series, Mi Max Series, Mi Mix Series, Mi
NoteBook Series, Redmi Series, Blackshark, and Pocophone. Xiaomi has around 291.6 million
active users for its MIUI updates. Besides, the company also offers laptops, mobile apps, mobile
accessories, wearables, home appliances and smart-home devices. From 2019, Xiaomi even
started selling accessories such as caps, bags, glasses, backpacks and also lunchboxes, pillows,
cups, filters, umbrellas and screwdrivers.
The success story

From year 2010 when it was founded to 2013 the company took small steps on the leader and
brought different development while slowly and steadily capturing Chinese market. In 2014 it
entered to Indian market while partnering with flip kart an Indian online selling platform and
saw its first big success. Xiaomi while entering to India introduce its MI 3 model which sold
100000 devices in only 4.8 seconds. After becoming one of the best in the world and ranked
number 1 smartphone brand china xiaomi had to see a down fall. Sales plunged in 2016, pushing
the company from first to fifth place among China’s smartphone makers. No firm had ever come
back from a wound that severe in the trench warfare of the global smartphone business. Today,
Xiaomi is being called a “Chinese phoenix.” The company has grown so fast in the past few years
that research firm Strategy Analytics says Xiaomi could overtake Oppo, Huawei, and Apple in the
next year to become the world’s second-largest smartphone vendor, behind Samsung.
The biggest source of Xiaomi’s troubles was its exclusive reliance on online sales, which left it
unable to reach millions of less tech-savvy customers in smaller cities and rural areas. Rivals
Oppo and Vivo capitalized on Xiaomi’s absence by cementing sales partnerships with retailers in
those areas.
In the wake of Xiaomi’s setback, company executives concluded they needed a third leg to their
business model — offline retail stores. They used an ecosystem strategy to drive traffic to these
stores. They used some 100 startups as partners to provide Xiaomi with other internet-
connected home and tech products that would draw customers to its stores. They used these
other products to drive customers to store as buying a smartphones is a low frequency event.
One example of these products is air purifier connected to smartphone for notification. People
will come in to buy purifier they will also check the new products of the company.
Through recognition of this deficiency and bringing more value to the brand by introducing new
products and clearing the deficiency of offline retail store the brand was able to make a
comeback and even gain more market share.
Brand Associations
The brand associations of the company are well planned. It associated itself with good designs,
High end technology at affordable prices and useful utility features in the products. The cameras
in Xiaomi phones and laptops are everyone’s favorite as they give amazing result on each click.
This sort of brand associations only increases the overall value of the brand.
Brand value and sources of brand equity.

Xiaomi brand can be seen as dependable, Concerning, Understanding, Rapid Modifier of
features, Mind reader, Trend Setter Technology advancer (New opportunity openings from older
ones) and Market reader.
Xiaomi brand equity is valued at upwards of $53 billion.
The Brand Equity of any brand depends on these major things:
1. Salience
2. Performance and Imagery
3. Judgment and feelings
4. Resonance
Salience
Wide range of Mobile phones for different needs with android capability and with features
unparallel to a Smartphone in the same price category. Depth of brand awareness as
smartphone Phone and breadth as wide range of products with unparallel features for an
affordable price.
Performance and Imagery
The imagery of Xiaomi is based upon its High tech, High level of Fancy, Fun and Stylish young
unisex design and lastly affordability. High Performance stylish designed mobile phones with
options and features at an affordable cost Low level of reliability and durability.
Judgment and feelings

High Level of Fun, security and excitement. Low level of Social Approval since there is variety of
models available. Low Level of self-respect for the consumer all models looks in the same
design. High level of brand consideration and credibility. Low level of brand superiority as it is
relatively new brand and compititors has already made a better image in the market.
Resonance
Moderate level of Repeat purchase and Recommendation. Low level of personal attachment.
Low level of social reflection.
Marketing strategy
When Xiaomi entered the world market, It was dominated by brands names like Samsung and
Apple. Xiaomi, through their successful marketing strategy became one of the leading brand
name in the world and the best seller in Indian market.
It includes;
 Quality products at low prices
Chinese brands were seen as cheap and low quality but XIaomi changes this thinking by
providing high-quality products at affordable prices. By doing so it established an image
of value for money product brand.
 Understanding the demand of customers

For any brand to become successful, it should have one feature that is knowing the
demand of customers. as internet was expanding like never before due to the
introduction of technology such as 3g and 4g to countries such as India and Pakistan
created a need for high tech compatible smart phones at affordable prices and Xiaomi
took the advantage of this by launching products according to the needs of smartphone
users. Xiaomi kept on focusing at battery life which is mostly ignored by their
competitors creating a competitive edge.
 Right product at right time

Timing is also very important in business, as making and selling products which are
outdated is of no value. Xiaomi kept launching new products with new features but kept
the price range as low as possible and made the customers to change their phones more
frequently tha they used to do it.
 Partnering with famous platforms

You have a great product at a good price but, if you don’t have the right platform to sell
it then your business will most probably fail. Marketers of Xiaomi knew this and they
choose the biggest online platforms such as Flipkart and Amazon to make sure that their
products reach to the maximum number of smartphone lovers. The company even uses
its own website to sell its products.
 Creating a situation of scarcity

Another marketing strategy that contributed to Xiaomi’s success is that the company
never sold its products freely. The flash sales created a sense of scarcity every single
time and such things make customers curious about the product which creates adds to
the urge of buying that.

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Assignment 1

Ghayoor Zafar Brand Managenemt 01-111182-151

The success story

Brand value and sources of brand equity.

Performance and Imagery

Judgment and feelings

 Understanding the demand of customers

 Right product at right time

 Partnering with famous platforms

 Creating a situation of scarcity

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