TeamAI

Acing the Premium Smartphone Segment Ishika Jain

Akshata Masoor

PRIMARY RESEARCH

PREFERRED CHANNEL CONSUMER PERCEPTION

LFR
Retail No
MIPPP Very Less
Brand Website Yes
E-commerce Website
Preferred mode of purchase Awareness about Xiaomi’s premium segment

 About 60% * respondents prefer to check  About 66% respondents are unaware or
reviews online & shop from offline stores haven’t spotted Xiaomi premium phone in
 Prefer offline: free add-ons, reliability on local shops
local shops, touch & feel experience  Strong brand loyalty for lower segment
 Prefer Online: Better discounts/ cashback, Xiaomi smartphones
option of buying renewed second hand  They perceive Xiaomi to be a mid or lower
phones at lower price, free-delivery segment smartphone manufacture
 Premium outlets; interiors; after- sale  Average quality perception about Xiaomi’s
service; influence decision making of most premium segment smartphone came out to
customers in case of premium phones be 3/5
 Respondents compare features of different  Xiaomi is perceived as a budget
smartphone available before buying phone/brand among respondents

Customer Preference Market & Channel Selection Offline Distribution Strategy Communication Strategy
 • Hjkfds
Market & Channel Distribution • Khk
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Delhi
Kanpur

Ahmedabad
India

Kolkata  Text in her

Mumbai  Text in her
Hyderabad  Text in her
Category Xiaomi Oppo Vivo Samsung Pune  Text in her
Local Multibrand Bengaluru Chennai
 Text in her
Stores  Text in her
Exclusive stores
Tier 1 City Presence
Tier 2 City Presence
Best Offline Practice
Commission
Charges/Incentives

Premium Segment
Offline Advertising
Strategy

Customer Preference Market & Channel Selection Offline Distribution Strategy Communication Strategy
 • Interactive Screen
Offline Distribution Strategy • Increase in Sales Incentives
• #SelfieWithMiPhone Campaign

Retail General Trade

 Make a separate section for Xiaomi premium  As currently Xiaomi pays the lowest margin when compared to
Mi Homes MiPPP
Smartphones competitors - Increase in Sales commission/incentives by 2% for
 Install an interactive screen for users to access all premium segment smartphones would increase the will to sell
features and compare them with other brands through more of Xiaomi Phones.
virtual reality  Installation of Photography campaign booth will create awareness
 Provide a recommender system to consumers where user about the Brand Premium segment
can enter its requirements and accordingly an MI  Since in LFRs , there is a self service model, therefore LFRs
smartphone will be recommended giving details of all the only the brand loyal customer will look for Mi Phones. To
features increase the awareness and visibility, installation of an
 Provide a separate section and interactive screen interactive screen will help user get a glimpse of all the
Mi Studios
 Install a large booth with orange and white theme in features and compare it with the competitor brands.
tier 1 cities to associate the colour theme with Xiaomi
and increasing the visibility of Mi Studios Increase Retail Distribution – Xiaomi has leading position in offline store
 Initiate a campaign - #SelfieWithMiPhone in tier 1,2 but lacks in awareness of the same amongst the consumer base.
cities , Task: To click a selfie with the newly bought Mi Since 66% of the working professionals were not aware of presence of Xiaomi in
Phone and booth and upload it on Instagram with the Multibrand Stores and thus Addition of Local High performing
Hashtag. Winning Price : Mi Premium Segment Multibrand outlets in MiPP program like Vijay Sales , Sargam (Delhi) ,
Gadget. Poorvika (Chennai), Chennai Mobiles in local markets of metro cities which are
Since these stores are in tier 2 and lower cities, majority accessible to Upper middle class and middle class households will increase the
Mi Stores awareness
users are not brand loyal and can be persuaded by the
retail store sales person : Increasing the sales incentives Student Partnership Program : Students can redeem a discount or
by 2% will create a competitive advantage. cashback of upto 10% from offline retail stores after showing their College ID
Cards
To create a competitive pricing in offline mode as well , pricing in offline channels should be same or less than online channel

Customer Preference Market & Channel Selection Offline Distribution Strategy Communication Strategy
 • Campaigns, Contests
Communication Strategy • Issue Addressal, Product Mapping
• Leverage MiCommerce Platform for Reverse
Urbanization

Address the issues of consumers and show they get resolved Campaigns to Increase the Awareness of Brand Premium Phone
in different Xiaomi Smart Phone Segments in Premium Segment Cities to Target:
Category Tier 1 (Delhi,
Initiate a photography contest
Map the products with the issues given by users and how the premium featuring Xiaomi Mi Note Series Mumbai,
segment phones are at par with them “First 108 MP” Camera Bangalore) ,Tier 2
Cities (Gujarat,
Task: To shot sunset/sunrise Jaipur, Bhopal,
Premium High RAM, Indore)
High from a Xiaomi MI phone and
Long Battery upload on Instagram
Quality and Trend:
Life
Durable #MyViewWithMi
Hardware Xiaomi Mi 10 Xiaomi Redmi K20, K30 Advertisement Strategy Reverse Urbanization
Digital Platforms – Television: Approximately 46% of the working
 Advertising the premium segment population migrated to tier 1 and tier 2
Cause : Consumer Perception of premium segment phones is cities.
same as low segment phones connecting with the Indian
Solution : Differentiate the premium segment phones from low Public and Scenario.
 Advertisement spreading awareness
segment phones with a new series Name
about MiHomes, MiStudios,
MiStores  MiCommerce Platform can be used to
Brand Recall and  Youtube Ads for cater to recently moved working
Word of Mouth Mi Premium professional segment in tier 2 cities.
Compare Camera Advertisement : Segment Phones  These professionals may not be aware
Quality with the Blogs and reviews of of local retail distributors of Xiaomi.
competitors in similar MI Retail Stores in Newspapers advertisement about the  MiCommerce platform can provide
price segment newspapers campaigns and contests, Mi Retail local retail store information, feedback
Xiaomi Mi Note 10 Pro Stores and buying options.
Customer Preference Market & Channel Selection Offline Distribution Strategy Communication Strategy