Digital marketing strategies used by Xiaomi in Indonesia

1. Marketing Strategy Evaluation
INTEGRATED MARKETING
COMMUNICATION & DIGITAL MARKETING

2. Table of
Contents
Xiaomi Background
Vision, Mission, Values
Strategies
Marketing Strategy
Cost Leadership
Innovation
Market Analysis
PESTEL,
SWOT
Evaluation of Brand Communication
Source, Message, Channel
Creative strategy, Media
01
02
03
04

3. 01
Always believe that something wonderful is
about to happen

4. Vision
Making users friends and becoming the most beloved company in users' hearts
Mission
Relentlessly build amazing products with honest prices, ensuring that technology is
accessible to everyone; by focusing on innovation, quality, and user experience
Values
The phrase "just for fans" is embedded in customer satisfaction, product excellence,
innovation, and teamwork
Xiaomi MI Mobile Internet
Mission Impossible

5. Xiaomi's product portfolio

6. Xiaomi Marketing Strategy
Cost Advantage
Produce perceived high value
products at low costs
Quality
Superior Quality Products sold at
Honest Price
Innovations
Produce products that meet customer needs through
R&D E.g. Launching of Xiaomi T13 with higher camera
precisions
Emotional Connection
Customer Satisfaction

7. Xiaomi Enters Indonesian Market

8. Overview of Indonesian Market

9. Situational Analysis
P E
E L
S T
Social
Increased usage of mobile
phones
Political
Government Support for
FDI
Technological
Supporting infrastructure for
innovation
Environmental
No threat was encountered
but emphasises was on
sustainability
Pestle
Economical
Growing middle Class
economy
Legal
Regulations for Online Sales
were not favourable

10. High Consumer Choice
Online and Offline Sales
Channels - Easy to
compare prices
Low barriers
Brand recognition is key
barrier
Threat of New Entry
Buyer Power
Substitutes
Feature Phones,
Tablets and
Laptops
Supplier Power
Moderate bargaining
power due to the
availability of alternative
suppliers.
Competitive
Rivalry
Business Environment Analysis

11. ● Competition
from other
brands
● Economic
slowdown
● Changes in
consumer
preferences
● Government
regulations
● Exchange rates
THREATS
● Growing
Indonesian
Market
● Increasing
internet
penetration
● Rising
disposable
incomes
● Expanding e-
commerce
market
OPPORTUNITIES
● Poor rural
penetration
● Reliance on
online sales
● Fewer physical
stores
● Perception of
being a low-
quality brand
WEAKNESSES
● Strong brand
● Low pricing
● Innovation
● Wide range of
products
● Strong online
presence
● Extensive
distribution
network
STRENGTHS
Internal Analysis: SWOT

12. Analysis
Competition
Consumer Behaviour
Price-sensitive
demand for affordable yet high-
quality smartphones with
advanced features.
Fierce rivalry pitting
industry giants like
Samsung, Apple and Oppo

13. Competitors
2013 data: Xiaomi is not
there
2016 data:
Xiaomi has around 7% of the market share
It’s number 4

14. Market Share
Falling from 2nd to 4th Position reflect that there might be some problems in their IMC Strategy

15. Xiaomi Success Factors
Price
Affordable price presented
as “honest Price”
Quality
High quality through
involvement of tech savvy
customers (Brand Identity)
Extensive Marketing Strategies
Multi-channel (WOM, Social
media,TV etc
Influencers (Brand Advocates) and
Customer competitions
MI Fans
A community of Xiaomi
fans
Listening to them and
improve
01
03 04
02

16. Brand
Communication
Evaluation

17. Brand Communication
Creative Strategy
● Unique marketing campaigns
● "Mi Fan Festival" where they offered
exclusive discounts and limited
edition products to their loyal
customers.
Message
● Promote smartphones through visually
appealing posts, videos, and
collaborations with influential Indonesian
influencers.
● Demonstrating the importance of clear,
concise messaging for effective brand
promotion.
Channel
● Social media platforms, Eg Instagram acc global 5m, Indonesia 2m. Mi Website
● Collaborating with popular influencers and bloggers, Eg Ria Ricis with 12 million followers
● Interactive online contests on Facebook, where customers could win prizes by sharing their
positive experiences with Xiaomi products.
01
03
02

18. Video
Media
● Television
advertisements
● social media platforms
● The sponsored posts and
videos
04
05 Brand equity
● Combination of visual elements and messaging.
● Xiaomi logo, a simple but recognizable "Mi" symbol
● Xiaomi often opted for bold and vibrant choices,
● Taglines focused on the advanced features Eg,
"Innovation for Everyone" and "Make Life Easier".
https://www.youtube.com/watch?v=HWsuIKL-eJA
Brand Communication Cont…

19. Clarity Yes
Consistency No
Credibility Yes
Competitiveness Yes
Annmarie Hanlon (2020)
Evaluating the 4Cs for Marketing
Communications

20. Possible Challenges
Competition
Increased rivalry
Oppo, Samsung, Vivo,
Apple
Economic Slowdown
War between Ukraine and
Russia has ripple effects
on the economy
Change in Preferences
Switching to rival due to
effective marketing.
Problems in IMC Strategy
Value proposition comms
Poor Targeting

21. Evaluation of Marketing Mix Using 4 Cs
Consumer
The population is of middle
income status.
Cost
Reduce the cost by manufacturing its
products in-house and using a lean
supply chain.
Convenience
A variety of channels, including
online, offline, and through Xiaomi's
own Mi Stores.
Communication
● Variety of channels
● Influencer marketing
● Flush sales
Lautenborn 4
C's Framework

22. Evaluation of the 4 C’s
Marketing Mix
https://www.smartinsights.com/marketing-planning/marketing-models/4cs-marketing-model/

23. Long-Term Brand Building:
● Xiaomi should continue to focus on building a long-term brand and user loyalty by staying true to its "just for
fans" philosophy, actively engaging with its Mi fans, and consistently delivering on its promise of quality and
affordability
Expand Offline Presence:
● While Xiaomi has made efforts to establish physical stores and experience centers in Indonesia, it should
consider expanding its offline presence to reach a broader audience. This can help in building trust and
providing hands-on experiences to customers.
Digital Marketing and E-commerce:
● As online channels are crucial in the Indonesian market, Xiaomi should continue to invest in digital
marketing, leverage e-commerce platforms, and create engaging online campaigns to reach a tech-savvy
audience.
Recommendations

24. Credit: SlideGo & Freepik
The End

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References