Redmi New Line

(Lower Priced (Premium

Products) Products)
Communication Strategy

• Xiaomi should focus on mass media campaigns once used by Oneplus to

set up its user base in India
• Informative ads/ campaigns on the latest technology used
• Start with gradual range of high-end smartphones like POCO which was
made specifically for the Indian users and was a very successful product
line, instead of making a steep jump in the 50K segment
• Differentiate the branding from the lower priced products, a complete
makeover for the premium segment by introducing a new product line
Competition

• With the sharp 40% decline in demand for the Q2, the competition is
expected to get fierce and could be going towards price war
• Each brand has experienced a sharp decline in the no. of units sold in
Q2; Brand S and O have increased their market share
• All the brands follow the best practice of innovation where they try to
offer something unique with each upgrade
• If we assume that the Q2 is affected due to Covid, we can still see the
rise in the market share for Brand S due to its best practices
Retail and GT arms

• For Retail, Xiaomi needs to focus on increasing its sales channel and
increasing its stock at the dedicated stores which often face shortage
• Xiaomi needs to increase its presence in the General Trade channel
which generally forms a big cluster for sales in tier-2 and 3 cities
• Apart from LFRs, an increase in the no. of channel partners and
distributors for the Mi PPP to target a wider segment which face
shortage
• The GT channel should be given prioritize distribution centers as the
FOFO/COCO stores experience supply-demand gap
Major Markets

• Based on the demography, major markets for >Rs. 20,000 smartphones

are 20-35 age group, tech enthusiast who look for best offerings in every
department
• The tech geeks and photography lovers also represent this market
• Reverse Urbanization would not cost much impact for Xiaomi as we’ve
very less penetration in >Rs. 20,000 segment
• Therefore, it will have a little or no effect on our strategy