XIAO MI CASE STUDYBrand ManagementBy: NAKPAKPERE BANTE

Historic of the brand Xiao mi (Millet) company also call Beijing millet Technology Co., Ltd is high performance enthusiast smart phone company establish in April 2010. The first phone is released in august 2011, by the founder and CEO Lei Jun the former employee of Google and Microsoft in China. The phone was sell at 1,999 yuan and the use of on-line sales method.The LogoBrand ManagementLei Jun mean: Mobil Internet or Mission impossible

Characteristic of the phone: Dual-core 1.5GHz smart phone Single-core 1GHz processorPhone's performance by 200%, compared to dual-core smart phone and also up to 25%.In January 2012 , 100,000 mobile phones sold at 4 hours.Xiao mi has a professional management team: Lei Jun: founder, chairman and angel investors. Lin Bin, co-founder ,Liwan Jiang, co-founder and vice president Zhou Guangping, vice president and co-founder. Huang Jiangji, co founder and president Liu, co-founderHong Feng, co-founderHugo Barra, Global Vice President, All of them are senior staff person from Microsoft, Google, Kingsoft, MOTO and other domestic and foreign IT companies. Brand Management

Xiaomi business coreBrand Management

Xiaomi DNA Achieve and satisfy fully the emotional appeal of consumersThrough it name Xiaomi= millet: sweet, generous, like a friend help users solve problems, allowing users to more peace of mind.Pursuit of details connotation, color individuality, Rainbow optional battery unique, MIUI system gives users a new experience. Absolutely satisfied consumersBrand Management

Brand cultureThe Mobile Internet company don’t have a strict hierarchy, every employee is equal, every colleagues are their partners. Xiaomi advocating innovation, fast Internet culture. They hate lengthy meetings and processes, play to their creative partnership type of work in a relaxed atmosphere. They believe that the user is the driving force, the adhere to the "fever born" product concept”

Xiaomi productsBrand ManagementMobile phones MIUI MiTalkMiCloud MiBoxMi Power BankMiTVMiWiFi Tablets4/2014 05/ 2014 05/2014August 2011Product

Pricing strategyXiaomi phone price is very cheaper than other smart phone on the market. This because the company eliminated the cost of the third part. The development of the Internet and Xiaomi phone sales model, is closer to the needs of users, more fundamentally, in the quality assurance hypothesis, but also make the phone closer to any consumers.Brand Management

Cover and personalized accessoriesBrand Management

Xiaomi lifestyleBrand Management

CommunicationPromotion through conference: Founder of Xiao mi Lei, claim to be a big fan of Steve J. So as Apple's, a conference was held on August 16 in Beijing, to present the phone to the public. Xiao mi phone conference made ​​a high-profile publicity on the media and made public get attention to the mobile phoneBrand Management

Using the Internet for advertising and promotionXiaomi is present on:Wechat,weibo,qqzone,renrenBrand Management

Reproduction of visual patternsBrand Management

Brand Management

Xiaomi charity activityBrand ManagementXiaomi launched arbor day in 2013

In 2012, all the tickets sold during Xiaomi conference is used to fund Smile Angel Foundation for lip treatment of children with cleft palate. Xiaomi also sent volunteers into their personal involvement in Guizhou.Brand Management

Xiao mi CollaborationXiaomi and Hutchison seek to deepen collaboration in Asia. Xiaomi and Three Hong Kong form a model partnership for the launch of Xiaomi's flagship smart phone, the Mi3.Brand Management

Xiaomi Technology Settles in Yupei Shenyang Tiexi Logistics Park, this will improve its distribution system in the northeast area with the support of advanced warehousing facilities, so as to meet the increasing needs of client.Xiaomi collaborated with Far Easton telecommunications, Taiwanese companies providing telecommunications and digital application services.Tuxera Inc., the market leader in the interoperable technology announced its partnership with Xiaomi.Brand Management

Channel distributionXiaomi doesn’t spend money on traditional advertisements. It has no retail stores nor does it partner with third-party distributors. Instead, all Xiaomi products are sold directly via the company's website. Brand Management

,Brand ManagementIt does not have a major network of its own physical stores it needs to staff and maintain. Instead, it has done away with those costs

Xiaomi Market positioningXiao mi user’s can be divided into four categories:Brand Management

Xiaomi is in the need to transform the first three categories of users to fan of Xiao mi. In light from price, the market positioning of Xiaomi is less accurate.Is difficult to make money from the first two categories of users, they are tasteless users; they are most concerned about the cost and the price not the brand itself. The third category of hardware performance, the most demanding users, they are in pursuit of top performance, the price for them is secondary.Brand ManagementCharacteristic of Xiaomi different user

Brand ManagementAnalysis of Xiaomi phone

Internal analysisStrengthsClear market positioning:Outstanding technical and management team.Efficient and effective selling method.Strong configuration system, MIUI / Android Dual System.Designs: no design is the best design.Price advantageBrand Management

WeaknessesProduct own shortcomings. No front camera, Heating phenomenon is not completely resolved; battery life is not much improved.Low brand value. Xiaomi mobile phone manufacturer brand awareness is not very strong, no multiple channels to enhance brand awareness in the minds of customers.Lack of experience in management and control hardware.Limited sales channel coverage.Target market is small.Xiaomi mobile marketing failed to market segments.Service. Xiami's asset-light model become a problem.Cost dilemma: High cost brought brand awareness and sales which will lower Xiaomi profitBrand Management

External analysisOpportunitiesPolicy: the state of local business development support the technology and electronics industries .Economic aspects: the rapid development of the domestic economy, lead to a huge market demand.Social aspects: demand for smart phones grow as the social class grow.The rapid development of technology. Consumer demand for smart phones increases. Brand Management

ThreatsIntense competition in the smart phone industry as a whole are actually in competition hardware cost, in fact, is not optimistic about the prospects. Customer acceptance of Xioami will take some time; Financing difficulties, shortage of funds. Although millet announced at the end of 2011 the amount of financing of around $ 250 million, but for the development of Xiaomi these funds represent only a tiny fraction. Patents and legal issues in the process of internationalization, the millet company has applied for three patents only, in the face of other communications and Internet industry which have register more than hundreds of thousands.Brand Management

conclusionXiaomi phone listing plane is very successful. This because the company is using a strong configuration system MIUI and Android dual system. Another reason is related to the capability of the marketing team and their marketing program guidelines.Based on their products ,on their resources , xiaomi company is able to survive on the competitive landscape, either on national market or either in international market.Brand Management

Recommendation Better explore the potential idea of the users and serve their needs.Xiaomi should be more concerned about what the phone can do for the consumers, rather than what the phone is.Docking speed must be integrated quickly and fit must be high, the quality of service must also have a certain height, and then integration of innovation. Brand Management

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