School of Management-MBA Integrated Marketing Communication

MARKETING COMMUNICATION MIX OF XIAOMI

Submitted By
Abhilash Francis
MBA 18
Submitted To
Asst. Prof. Nisha Ann Jacob

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School of Management-MBA Integrated Marketing Communication

INTRODUCTION
Marketing is a broad business function that includes product research and
development, merchandising and distribution processes and pricing, as well as
communication or promotion. The communication mix refers to specific methods used to
promote the company or its products to targeted customers. Some depictions of the
promotional mix include five elements, while others add a sixth – event sponsorship. There
are five key elements of the marketing communications mix: advertising, public relations,
sales promotion, personal selling and direct marketing. Some organizations also add a sixth
component, which is events and sponsorship.

Advertising refers to any paid promotion of products, services or ideas by an

identified sponsor. Organizations can advertise in a number of ways, such as on television,
radio, magazines, newspapers, billboards and online. It’s an effective way to reach large
quantities of people, but it can be very expensive as well. Public relations refer to an area of
the mix that involves building up a good relationship with the media and those who are
interested in the company. It can come in handy when trying to defer attention from
unfavourable news relating to the company, or when trying to promote the corporate image
of the organization.

Sales promotions are short-term incentives the company offers relating to their
products or services. It’s a very effective way to grab consumers who may be on the fence
when it comes to making a purchase, as it encourages them with a discount or coupon.
Personal selling happens when the company’s sales team deals directly with their
customers, usually in a one-on-one setting. It’s a great way to build relationships with their
customers and nurture prospects along the journey to making a purchase. Direct marketing
involves highly targeted messaging that is sent to a very narrow customer or prospect list.
Organizations can direct market using emails, newsletters, snail mail or telephone.

While not formally part of the marketing communication mix, events and
sponsorships are another promotion vehicle many companies utilize to generate favourable
attention for their brand. This can involve sponsoring community or industry events, or
conducting business-related events of their own for their customers and prospects.

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School of Management-MBA Integrated Marketing Communication

Xiaomi Corporation is a Chinese electronics company founded in 2010

and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile
apps, laptops, bags, trimmers, earphones, MI Television, Shoes, fitness bands, and many
other products. Xiaomi released its first smartphone in August 2011 and rapidly gained
market share in China to become the country's largest smartphone company in 2014. At the
start of second quarter of 2018, Xiaomi was the world's fourth-largest smartphone
manufacturer, leading in both the largest market, China, and the second-largest market, India.
Xiaomi later developed a wider range of consumer electronics, including a smart home (IoT)
device ecosystem.

Xiaomi marketing communication mix explains the extent of usage of

individual elements of marketing communication channels by the mobile internet company.
Generally, elements of the marketing communication mix consist of print and media
advertising, sales promotions, events and experiences, public relations, direct marketing and
personal selling.

Xiaomi Print and Media Advertising

Xiaomi once touted its avoidance of advertising as one of the keys to its early
success—saving money on commercials helped keep the overall price of the phones lower.
Instead, it relied on its upper executives and its “fans” to spread the word and attract new
customers through social media. However, due to increasing competition from its local rivals
Oppo and Vivo, The mobile internet company had no choice but to engage in certain forms of
traditional advertising such as posters and newspaper advertising. Nevertheless, viral
marketing remains as the most important form of marketing for Xiaomi. The internet
technology company also uses celebrity endorsement from the likes of top Hong Kong actor-
singer, Tony Leung, a 54-year-old best-known to English-speaking audiences for movies like
“In the Mood for Love” and Lust, Caution.

Xiaomi Sales Promotions

Xiaomi uses the following sales promotions techniques:

Flash sales. Flash sales refer to sales of products and services online at a heavily discounted
price for a short period of time. Xiaomi uses flash sales extensively, especially in India.

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School of Management-MBA Integrated Marketing Communication

Customer Loyalty Scheme: Reward Mi is a customer loyalty program that rewards loyal
customers with exclusive benefits such as priority passes a.k.a F-codes and discount coupons
which can be redeemed on selected products across Mi Store.
Seasonal sales promotions: The electronics and software company announces sales
promotions on notable occasions as Christmas day and anniversaries of notable days for the
company.
Point of sale materials: The Company uses point of sale materials such as posters and
display stands at its stores.

Power of word of mouth

Xiaomi uses flash sales, a means of selling their product in limited quantities within a limited
period as part of their sales strategies. This strategy enables Xiaomi to save money from
doing advertisement because it creates the anticipation and urgency on consumers. Only
limited quantities are available in the markets and they will be sold out quickly that many
people have to wait for the next slot. This strategy therefore makes people talk a lot all over
China including in the social media. This also grabs lot of the consumer’s attention and
makes the advertising less important for Xiaomi in promoting the launch of new products.

CONCLUSION
All the companies or businesses have to spend in this field to make sure that they
get the expected results from the product and the business. If the company fails to use right
communication mix at the right time, their product will be a waste for them and might result
in little sale. All 5 communication mix together can lead to a good business, as they all can be
used depending on life cycle of the product. The communication objectives should be kept in
mind for a successful business. Depending on the product the message should be designed
appropriately to reach to the audience.

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