Advertising Management: Conducting A Promotions Opportunity Analysis
Advertising Management: Conducting A Promotions Opportunity Analysis
Advertising Management: Conducting A Promotions Opportunity Analysis
Members:
Vincent Sarmiento
Sean Christ Leander
Edmond Magtarayo
Raymond Lingcaso
Kevin John Genanda
CHAPTER 4
CONDUCTING A PROMOTIONS OPPORTUNITY ANALYSIS
Good Quality product Even at such low prices, no one can doubt the quality of
Xiaomi phones. The smartphones are regularly rated high on all E COMMERCE a
further proof that Xiaomi does not compromise on quality even if lowers the price
regularly. Manufacturing Advantage China has a huge manufacturing advantage
because the country in itself is known for manufacturing and exporting the
products. China is also one of the largest consumers in the Asian market.
3.1.1 : COMPETITORS
3.1.2 OPPORTUNITIES
Xiaomi Inc targeted consumer who are tech-savvy as well as who are in the group
of age 18–35 from students to working class people, who want good quality
products and knew that market leaders like Samsung, LG and Apple were
overpriced for the specs they were providing in their products. So their target
were students, working class people, Heavy internet and Social media users that
drive the e-commerce market. Xiaomi has positioned itself on behalf of its
smartphones so well in Indian Market that whatever product comes is taken
cheerfully by mass that they become massive hits along with their existing
smartphones. These products include Power Banks, Headphones, TV, Bluetooth
speakers, Smartphone accessories and wearables. Xiaomi managed to streamline
their supply chain and make sure the demand versus supply gap is not that
significant. To reduce the intermediaries cost they promote Online Shopping.
Xiaomi has already a large customer base in China, Malaysia and Singapore. It is
expanding its market to India and Philippines and places which are dominated by
Apple and Samsung, mainly in all other developing countries in Asia Pacific region.
Xiaomi offers two different smartphone models MI and Redmi,Xiaomi has wide
range of products for lower middle-class users as well, phones like Redmi 4A
biggest competitor in this segment is Vivo and Vivo Y51 model.
The core competency in pricing of the Xiaomi allows lower middle-class of users
to buy phones which are cheaper than closest competitors without compromising
technical features and quality. Initially, Xiaomi launched top MI phones and after
introduced the Redmi models in the Indian market, such entry strategy was
necessary because reduction in price of products would not be too drastic and
consumers would be able to gain confidence in quality of products.
Most of the smartphone users are price-sensitive and pay huge attention on price
of the product before considering the adoption. Thus, Xiaomi should adopt rapid
penetration pricing strategy and keep low prices for their products, despite the
fact that they will open stores and this will require investment. Xiaomi’s
consumers are price sensitive and increase in price might be risky in losing market
share.
Xiaomi sells at low price and offers high quality products. According to the
founder, chairman and CEO their main aim is to sell the products at the price the
product is produced without making any profit. So, the strategy being followed
by Xiaomi is sell at a low price today and gain later strategy. Their profit
generation focus is on the accessories, apps, and services that are to be used with
their products. This is a unique pricing strategy in its marketing mix, mostly aimed
at gaining a substantial market share. The pricing strategy of Xiaomi has enabled
the brand to penetrate into a global market and have a substantial market share.
Initially, they started with low end feature phones to enter the market. Now,
gradually, Xiaomi has also established itself as a leading smartphone player
across the world.
GREEN BRANDING
On the topic of branding, Xiaomi has another opportunity for growth. By pitching
themselves as a “green brand” an environmentally-friendly brand Xiaomi may be
able to set themselves apart from the crowd. There’s a growing environmental
consciousness, especially in more developed countries, and Xiaomi may be able to
profit from this while saving the planet! Naturally, this would be a two-step
process. First, Xiaomi would need to ensure their manufacturing processes are as
green as possible by reducing and managing waste products and pollutants.
Secondly, Xiaomi would need to go about promoting this message with some
clever marketing tactics.
Xiaomi uses the following sales promotions techniques, like Flash Sales, Customer
Loyalty Scheme, Seasonal Sale Promotions, Point of Sale Materials.
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.
Point of sale materials. The company uses point of sale materials such as posters
and display stand at its stores.
Lowe Lintas is the creative agency of MullenLowe Lintas Group, India. One
of the largest in India, Lowe Lintas has created tremendous success for
some of India’s leading brands. Today, Lowe Lintas manages more number
of brands amongst India’s Top 10 Most Trusted Brands. In fact, a number of
brands managed by Lowe Lintas have gone on to become leaders in their
respective categories.
OBJECTIVE OBJECTIVE 1:
COMMUNICATION PLAN
In China and India, we are very successful with our own online channels,
but there also exist Xiaomi's Mi Home retail stores and retail partners. In
India, Xiaomi partnered with the largest e-commerce company, Flipkart,
along with Amazon and Snapdeal.
Xiaomi will sharpen its focus on its own Mi online stores to sell its wares, a
strategy which has paid off rich dividends in its home market. Presenting
itself as the good quality phone with the low prices is the good, It gives
other company a budgetable devices with good quality
OBJECTIVE 1: The main goal of xiaomi is to become one of the best in the
Smartphone industry not just in Asia but in the whole world.
OBJECTIVE 2: By using online channels it’s easy to order and to pay with
no hassle to the customer, especially in this situation that we’re in
pandemic online selling is a good for the safety of our customers
BACKGROUND OVERVIEW
A electronics company founded in April 2010 and headquartered in . Xiaomi makes and invests
in , , , home appliances, bags, shoes, consumer electronics, and many other products.
OBJECTIVES
TARGET AUDIENCE
who are tech-savvy as well as who are in the group of age 18–35 from students to work
t market leaders like Samsung, LG and Apple were overpriced for the specs they were pr
BRAND VOICE
buy a Xiaomi product is, our product is very affordable but good quality, com