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Marketing Mix (4Ps) Analysis of Xiaomi Inc The Rise of a Chinese Indigenous Competitor
Posted by Addison on Jul-19-2022
About 4Ps Model
The 4p model of marketing comprises elements of the product, price, promotion, and place (Chernev, 2018; Kucuk, 2017). The model is commonly referred to as the marketing mix. The marketing mix of the Xiaomi Inc The Rise of a Chinese Indigenous Competitor allows and facilitates it in achieving its marketing objectives as well as in positively influencing the target audience (Baines, Fill, & Rosengren, 2017). The elements identified in the marketing mix are typically used by the Xiaomi Inc The Rise of a Chinese Indigenous Competitor for marketing its product and service, and for brand development and building activities. These elements are critically fundamental for the development and creation of marketing plans and marketing strategies by the Xiaomi Inc The Rise of a Chinese Indigenous Competitor – especially for developing and sustaining competitive advantage (Chernev, 2018; Stead & Hastings, 2018; Grewal & Levy, 2021). Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures that the elements identified for the marketing mix model work together cohesively, and complement each other in all its marketing strategies and plans (Abratt & Bendixen, 2018; Deepak & Jeyakumar, 2019).
Product
The product refers to the actual good or service that is being marketed to the consumers by Xiaomi Inc The Rise of a Chinese Indigenous Competitor, and which will be consumed by the target audience of the Xiaomi Inc The Rise of a Chinese Indigenous Competitor (Groucutt & Hopkins, 2015). The product or the service being offered by Xiaomi Inc The Rise of a Chinese Indigenous Competitor largely aims to fulfill a market need and demand, as well as works to create demand by providing a unique and fulfilling customer experience (Stead & Hastings, 2018; Sahaf, 2019).
Quality
Product quality for Xiaomi Inc The Rise of a Chinese Indigenous Competitor largely refers to how well the company is able to satisfy the customers’ needs and demands through its product and service offerings (Baines, Fill, & Rosengren, 2017; Deepak & Jeyakumar, 2019). In addition to this, the product quality for Xiaomi Inc The Rise of a Chinese Indigenous Competitor further includes the adherence of the company and its product and service offerings to industry standards and benchmarks as well as the ability of the same to serve its meaning and purpose comprehensively (Iacobucci, 2021; Groucutt & Hopkins, 2015; Chernev, 2018).
Customer demand fulfillment
The ability of the product and service to fulfill customer demands as well as its purpose, and to work efficiently and effectively are important facets of product quality for Xiaomi Inc The Rise of a Chinese Indigenous Competitor (Iacobucci, 2021; Deepak & Jeyakumar, 2019). Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures that its products are available for customers at affordable prices by controlling internal costs (Wu & Li, 2018).
Warranty
The warranty extended by Xiaomi Inc The Rise of a Chinese Indigenous Competitor includes the guarantee that the company to its customers regarding the functioning and the quality of the purchased food and service (Abratt & Bendixen, 2018). In addition, Xiaomi Inc The Rise of a Chinese Indigenous Competitor’s warranty also includes any compensation that the company has promised to give the customers in case the product and service fall short of the marketed benefits and functionalities (Išoraitė, 2016; Grewal & Levy, 2021; Kucuk, 2017).
Packaging
Xiaomi Inc The Rise of a Chinese Indigenous Competitor focuses thoroughly on the packaging and makes sure it includes the process of designing, evaluating, and developing a container for the products and services being manufactured and marketed (Deepak & Jeyakumar, 2019; Baines, Fill, & Rosengren, 2017). The packaging of the product and the service allows Xiaomi Inc The Rise of a Chinese Indigenous Competitor to highlight the product's purpose, as well as provides ease in transportation, gives room for more prolonged shelf life, and creates a unique and delightful customer experience (Kareh, 2018; Park, 2020).
Brand
The Xiaomi Inc The Rise of a Chinese Indigenous Competitor invests in developing brands out of its products and service offerings. This means that the Xiaomi Inc The Rise of a Chinese Indigenous Competitor engages in brand-building activities for its offerings i.e. associating specific designs and communications with its products to ensure differentiation, and easier communication with the target audience (Gillespie & Swan, 2021).
Building the brand
The branding-building activities undertaken by the Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensure that its target audience is better able to relate to the offerings (Abratt & Bendixen, 2018). Through this, the Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures higher loyalty and repeat purchases, as well as positive perception creation for its offerings (Khan, 2014; Kareh, 2018).
Features
Product features or characteristics refer to the product traits and attributes present in the offerings of Xiaomi Inc The Rise of a Chinese Indigenous Competitor that allow the company to successfully deliver unique value to customers through the products and services manufactured and offered (Varadarajan, 2015; Kotler & Keller, 2021). The product traits and features also allow Xiaomi Inc The Rise of a Chinese Indigenous Competitor to create points of differentiation from the competition for its offering (Kotler & Keller, 2021; Park, 2020).
Product style
Xiaomi Inc The Rise of a Chinese Indigenous Competitor makes sure to focus on the design and the look of the product, and the ability of the same to meet the expectations and lifestyle of the target audience (Groucutt & Hopkins, 2015). The Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures that the product style and design complement its features and purpose.
Functionality
Xiaomi Inc The Rise of a Chinese Indigenous Competitor makes sure that the product manufactured fulfills its purpose, and meets customer expectations (Abratt & Bendixen, 2018). Xiaomi Inc The Rise of a Chinese Indigenous Competitor focuses on the product design, and how well it is able to fulfill the demands of the customers, as well as fill in the market gap (Baines, Fill, & Rosengren, 2017)
Experience
Xiaomi Inc The Rise of a Chinese Indigenous Competitor products provide the customers with an exceptional and unique experience upon consumption (Kotler & Keller, 2021). This experience includes interaction with the products that leads to different unique and positive customer feelings and helps the Xiaomi Inc The Rise of a Chinese Indigenous Competitor maintain differentiation from the competition (Varadarajan, 2015; Kotabe & Helsen, 2020).
Availability
Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures that its product and service offerings are available for its target consumers at various retail setups. The easy availability ensures that consumers are able to purchase the offerings of Xiaomi Inc The Rise of a Chinese Indigenous Competitor from various locations, allowing the Xiaomi Inc The Rise of a Chinese Indigenous Competitor to create an advantage over competing players (Kotler & Keller, 2021; Chernev, 2018).
Convenience
One point of focus for Xiaomi Inc The Rise of a Chinese Indigenous Competitor in its product offering is convenience. The Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures that its products and service are easy and convenient to use. The factor of convenience allows Xiaomi Inc The Rise of a Chinese Indigenous Competitor to enjoy a higher consumption rate, as well as increased sales and trials (Kotabe & Helsen, 2020; Kucuk, 2017).
After-sales service
Xiaomi Inc The Rise of a Chinese Indigenous Competitor caters to after-sales queries and demands of customers, which also includes processes of returns as well as exchanges. The after-sales service of company Xiaomi Inc The Rise of a Chinese Indigenous Competitor is detrimental and critical in determining customer satisfaction with its offerings (Iacobucci, 2021; Chernev, 2018).
Sizes
Xiaomi Inc The Rise of a Chinese Indigenous Competitor has different SKUs in the product available. Xiaomi Inc The Rise of a Chinese Indigenous Competitor has its products available in various SKU sizes which helps the company boost its sales, as different customer groups have different demands for the product quantity – depending on their usage, income as well as lifestyle (Grewal & Levy, 2021; Deepak & Jeyakumar, 2019).
Price
The element of price in the marketing mix refers to the value that customers pay for the service or the product offered by Xiaomi Inc The Rise of a Chinese Indigenous Competitor. The pricing strategy and the price of the offerings are critical because it determines three success for Xiaomi Inc The Rise of a Chinese Indigenous Competitor by directly influencing the profit levels and revenue for the company (Kotabe & Helsen, 2020; Kotler & Keller, 2021; Deepak & Jeyakumar, 2019).
Discounts
One of the ways through which the Xiaomi Inc The Rise of a Chinese Indigenous Competitor influences its pricing strategies is through offering discounts on its product and service offerings. Discounted pricing for the Xiaomi Inc The Rise of a Chinese Indigenous Competitor means that Xiaomi Inc The Rise of a Chinese Indigenous Competitor decreases the price of the product and service in order to generate interest, or even unload excessive inventory and stock; as well as for boosting sales (Baines, Fill, & Rosengren, 2017).
Margins
Xiaomi Inc The Rise of a Chinese Indigenous Competitor makes room for margins through the additional value charged in price over the cost – which allows the Xiaomi Inc The Rise of a Chinese Indigenous Competitor to build profit for its offerings (Kucuk, 2017). The margins available to the Xiaomi Inc The Rise of a Chinese Indigenous Competitor largely depend on the offering and its quality itself, in addition to the brand equity and brand value of the company.
Payment method
A significant factor of the pricing element of the marketing mix for the Xiaomi Inc The Rise of a Chinese Indigenous Competitor includes the payment methods that the company offers (Kotler & Keller, 2021; Abratt & Bendixen, 2018). Since the Xiaomi Inc The Rise of a Chinese Indigenous Competitor largely operates distribution to retail via agents and retailers, it ensures the inclusion of different payment methods. This includes digital payment, cash payment, as well as credit allowances (Grewal & Levy, 2021; Groucutt & Hopkins, 2015).
Pricing strategy
Penetrative pricing strategy
For Xiaomi Inc The Rise of a Chinese Indigenous Competitor, the penetrative pricing strategy is adopted as it allows the company higher trial generation of its products and services in the desired target market, as well as allows the building of a broader reach for its product offerings by ensuring easier affordability (Baines, Fill, & Rosengren, 2017).
Introductory pricing strategy
For new products that the company launches, Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures to adopt an introductory pricing strategy. This means that the company prices its products and service offerings at relatively lower prices than the competition. This introductory pricing strategy allows the company to increase trial generation, achieve higher penetration, as well as lead to the generation of increased brand awareness and recall (Kucuk, 2017).
Aggressive/competitive pricing strategy
For existing products, Xiaomi Inc The Rise of a Chinese Indigenous Competitor uses a competitive and aggressive pricing strategy. This ensures that the products are available readily at competitive prices. Aggressive and competitive pricing strategies allow the Xiaomi Inc The Rise of a Chinese Indigenous Competitor to experience high rates of growth and experience by allowing the buildup of consumer loyalty and following based largely on product attributes and quality instead of price– leading to the generation of higher brand equity and value for Xiaomi Inc The Rise of a Chinese Indigenous Competitor (Deepak & Jeyakumar, 2019).
Place
The element of place within the 4Ps model of the marketing mix largely refers to the locations where company Xiaomi Inc The Rise of a Chinese Indigenous Competitor stocks its product and service offerings for consumers' accessibility and purchase. Xiaomi Inc The Rise of a Chinese Indigenous Competitor ensures to include all possible placements which are easily accessible to and available for the company's target audience (Iacobucci, 2021; Išoraitė, 2016). With the advancement of technology, Xiaomi Inc The Rise of a Chinese Indigenous Competitor has expanded the placement of its products beyond the traditional brick-and-mortar retail spaces, to include modern Omni channel retail platforms as well (Iacobucci, 2021).
Physical stores/retail
The physical retail and stores i.e. the traditional brick and mortar spaces continue to be the prioritized locations for product placement by Xiaomi Inc The Rise of a Chinese Indigenous Competitor (Iacobucci, 2021; Groucutt & Hopkins, 2015; Abratt & Bendixen, 2018).
Retail types
These include hypermarkets, upper markets, and smaller grocery stores - all of which allow increased accessibility and availability of Xiaomi Inc The Rise of a Chinese Indigenous Competitor’s products and services to its target audience. Physical retail has a higher footfall and allows direct interaction of the Xiaomi Inc The Rise of a Chinese Indigenous Competitor brand and its product offerings with the consumers (Groucutt & Hopkins, 2015; Groucutt & Hopkins, 2015; Chernev, 2018).
E-commerce
E-tailers
The Xiaomi Inc The Rise of a Chinese Indigenous Competitor also stocks its products on e-commerce retail shops – such as amazon. This allows the Xiaomi Inc The Rise of a Chinese Indigenous Competitor higher access and penetration in other markets, as well as in secondary consumer groups. Moreover, e-commerce retailing is more cost-effective for the Xiaomi Inc The Rise of a Chinese Indigenous Competitor (Wu & Li, 2018; Chernev, 2018; Baines, Fill, & Rosengren, 2017).
Company-owned website
In addition to stocking products with other e-trailers, the Xiaomi Inc The Rise of a Chinese Indigenous Competitor also manages orders through its own website, where consumers can place orders for Xiaomi Inc The Rise of a Chinese Indigenous Competitor’s products directly. This allows the Xiaomi Inc The Rise of a Chinese Indigenous Competitor greater control over stock and inventory management, as well as distribution networks – allowing the buildup of stronger relations with consumers.
Lastly, the Xiaomi Inc The Rise of a Chinese Indigenous Competitor also takes limited orders through social media pages and platforms (Wu & Li, 2018; Baines, Fill, & Rosengren, 2017).
Aggregators
Another way through which Xiaomi Inc The Rise of a Chinese Indigenous Competitor uses e-commerce is by stocking its offerings with aggregators (Kucuk, 2017). This allows the Xiaomi Inc The Rise of a Chinese Indigenous Competitor to maximize its reach and increase penetration. At the same time, it also allows increased trial generation and repeats purchases for the Xiaomi Inc The Rise of a Chinese Indigenous Competitor product offerings (Išoraitė, 2016; Groucutt & Hopkins, 2015).
Specialty stores
Interestingly, the Xiaomi Inc The Rise of a Chinese Indigenous Competitor also stocks its products with specialty stores (Grewal & Levy, 2021). This gives the company direct exposure to its target market and audience and allows the consumers to directly interact with the brand and its offerings- without too much clutter (Kotler & Keller, 2021; Gillespie & Swan, 2021). The specialty stores are located in prime locations, and allow Xiaomi Inc The Rise of a Chinese Indigenous Competitor higher penetration and reach, leading to increased brand awareness for its product offerings (Groucutt & Hopkins, 2015; Išoraitė, 2016).
Direct sales
The Xiaomi Inc The Rise of a Chinese Indigenous Competitor also has a trained sales team for making direct sales (Kotler & Keller, 2021). Xiaomi Inc The Rise of a Chinese Indigenous Competitor targets not only B2C consumers but also B2-B consumers (Chernev, 2018; Grewal & Levy, 2021). Both these categories, also make use of direct marketing whereby the sales agents and teams visit the target audience and business directly and detail the product features and benefits (Kotler & Keller, 2021; Groucutt & Hopkins, 2015).
B2B and direct sales
Xiaomi Inc The Rise of a Chinese Indigenous Competitor’s team makes sales instantly during field visits for the company (Sahaf, 2019; Stead & Hastings, 2018). The target audience is carefully profiled and selected by the Xiaomi Inc The Rise of a Chinese Indigenous Competitor so that the sales representatives are able to filter out the clutter (Gillespie & Swan, 2021; Išoraitė, 2016). Xiaomi Inc The Rise of a Chinese Indigenous Competitor is able to easily contact and communicate with the desired business groups only (Groucutt & Hopkins, 2015; Abratt & Bendixen, 2018).
Inventory management
Xiaomi Inc The Rise of a Chinese Indigenous Competitor effectively manages its inventory and fulfills the retailer's demand in time to ensure that it manages customer relations efficiently – and does not lose any customers. Xiaomi Inc The Rise of a Chinese Indigenous Competitor has also introduced automation in inventory management which allows it to improve efficiency and speed, and reduce error rates (Park, 2020; Gillespie & Swan, 2021; Kucuk, 2017).
Transportation
For Xiaomi Inc The Rise of a Chinese Indigenous Competitor, this includes choosing cos effective transportation means for inventory handling, as well as order deliveries to customers, as well as retailers. The company uses third-party transportation, as well as manages its own in-house transportation networks for ensuring on-time order deliveries (Abratt & Bendixen, 2018; Chernev, 2018; Grewal & Levy, 2021).
Promotion
The element of promotion in the marketing mix for Xiaomi Inc The Rise of a Chinese Indigenous Competitor largely refers to the tactics and activities of communication that the company has adopted for promoting its products and services – including the brand, and its offerings, as well as other product features, characteristics, and activities (Varadarajan, 2015; Gillespie & Swan, 2021). The communication is largely targeted toward the Xiaomi Inc The Rise of a Chinese Indigenous Competitor's target audience and is aimed to increase brand awareness, brand loyalty as well as sales of the company (Wu & Li, 2018; Grewal & Levy, 2021).
Direct marketing
For its more specific products and offerings, Xiaomi Inc The Rise of a Chinese Indigenous Competitor uses direct marketing. Xiaomi Inc The Rise of a Chinese Indigenous Competitor directly emails potential customers- especially its B2B consumers for detailing its product offerings and features. Xiaomi Inc The Rise of a Chinese Indigenous Competitor uses personalized messages and captures new clients and customers for the business. In addition to direct emailing, the Xiaomi Inc The Rise of a Chinese Indigenous Competitor also makes use of telemarketing and direct mail for targeting audiences through direct marketing (Chernev, 2018; Sahaf, 2019).
In-store promotion
Xiaomi Inc The Rise of a Chinese Indigenous Competitor also focuses on in-store promotions for appealing to the customers, and boosting sales as well as raising brand awareness and profile of its offerings (Baines, Fill, & Rosengren, 2017). For Xiaomi Inc The Rise of a Chinese Indigenous Competitor, the in-store promotions include offering price discounts, loyalty points, and flash sales for its products. In addition, the company also invests in building up the POS within the store locations (Stead & Hastings, 2018; Groucutt & Hopkins, 2015).
Social media marketing
One of the more contemporary forms of marketing and promotion for Xiaomi Inc The Rise of a Chinese Indigenous Competitor includes social media marketing. The company has an official presence and profiles on social media platforms such as Facebook and Instagram, and regularly uses these platforms to promote its offerings, and product features and characteristics (Stead & Hastings, 2018). In addition, these platforms are also used by Xiaomi Inc The Rise of a Chinese Indigenous Competitor to inform consumers about using sales and discounts to increase in-store footfall.
Traditional advertising
The Xiaomi Inc The Rise of a Chinese Indigenous Competitor continues to use traditional marketing tactics and promotional platforms as well – largely for mass marketing purposes. The company especially focuses on TV advertisements, ad print media advertising for this purpose (Išoraitė, 2016; Iacobucci, 2021).
TV
TV advertisements are generally placed in prime time for higher visibility and reach by Xiaomi Inc The Rise of a Chinese Indigenous Competitor. The TV advertisements use functional as well as emotional appeals to communicate the message of the Xiaomi Inc The Rise of a Chinese Indigenous Competitor to the audiences (Iacobucci, 2021; Stead & Hastings, 2018).
Print media and advertisements are published in newspapers and magazines – both of which are generally consumed in high proportion by the broader target audience of the Xiaomi Inc The Rise of a Chinese Indigenous Competitor (Chernev, 2018; Iacobucci, 2021; Stead & Hastings, 2018).
Radio
The Xiaomi Inc The Rise of a Chinese Indigenous Competitor also places advertisements on the radio to appeal to a segment of the target population. The radio communications by the Xiaomi Inc The Rise of a Chinese Indigenous Competitor are usually shorter and focus on functional appeal only (Park, 2020; Išoraitė, 2016; Groucutt & Hopkins, 2015).
Integrated marketing communications
The advertisement and promotional messages by Xiaomi Inc The Rise of a Chinese Indigenous Competitor for all mediums and channels however are built on an integrated plan, and ensure that they reflect messages and communication that is similar to the overall campaign to void confusion and discrepancies (Gillespie & Swan, 2021; Kotler & Keller, 2021). The use of integrated marketing and integrated media has allowed the Xiaomi Inc The Rise of a Chinese Indigenous Competitor to build strong relations with the consumers through prompting conversations and discussions directly with them (Deepak & Jeyakumar, 2019; Sahaf, 2019; Stead & Hastings, 2018).
Conclusion
The 4p model or the marketing mix is an important aspect of brand building and development for the Xiaomi Inc The Rise of a Chinese Indigenous Competitor and significantly guides the company in the chalking out of its strategic marketing goals and plans. The marketing mix model or the 4P model has helped the Xiaomi Inc The Rise of a Chinese Indigenous Competitor in increasing its products’ and services’ reach and penetration and witness high levels of expansion and growth. The model has also led Xiaomi Inc The Rise of a Chinese Indigenous Competitor towards a better understanding of its target audience and consumers. This understanding, in turn, has fostered strong emotional relations and increased loyalty on part of consumers towards the company – leading to an overall increase in the brand value and brand equity, as well as higher levels of brand affiliation, brand awareness, and brand recall. Together, the marketing mix has helped the company boost its sales and revenue by aligning its offerings with the needs and demands of the consumers, and the market more effectively and efficiently.
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