INDIAN SMARTPHONE

INDUSTRY
Samsung vs Xiaomi
“Giant vs Little Giant”
 Contents
01 About Samsung

02 Samsung Mobile Evolution

03 Samsung SWOT Analyis

04 Samsung Marketing Strategies

 Contents
05 About Xiaomi

06 Xiaomi SWOT Analysis

07 Xiaomi Marketing Mix

08 Xiaomi Marketing Strategies

09 Indian Smartphone Market

Samsung India
About
Samsung is a South Korean tech giant that

SAMSUNG
not only makes smartphones but has a huge
portfolio. From washing machines, televisions
to air conditioners, the company has a huge
range of devices. Samsung introduced its first
cell phone to India in 2004. Samsung mobile
phones are divided into 6 major categories –
Style, Infotainment, Multimedia, Connected,
Essential and Business. Samsung, in India for
20 years, has two factories - in Noida and
Tamil Nadu, where it makes 90% of the
handsets it sells in the country

Founder Found in

Lee Byung-chul 2002

R&D Centers No. of employees

32 across the world and 3 20,000

in India.
SAMSUNG MOBILE EVOLUTION

Samsung Galaxy S Samsung Galaxy Note

Note
S The first phone in the S series and was released back in
2010. The phone was an instant hit, and this prompted
Samsung to continue to the next model. Some of the
main features that distinguished it from other phones
The Samsung Galaxy note entered the market during a
time when people preferred small phones to big ones.
Samsung fixed this misconception with the birth of the
Samsung Galaxy Note. Its large size and performance
were its 4-inch display-a large display wooed people into accepting this new phone, and within
no time.
Samsung Galaxy S20

S20 Note
Samsung Galaxy Note 20
The newest release from Samsung, the Galaxy S20 pulls The newest release from Samsung, the Galaxy S20 pulls
out all the stops. After all, the accession of other high- out all the stops. After all, the accession of other high-

20
quality cell phone producers like Xiaomi, Huawei, and quality cell phone producers like Xiaomi, Huawei, and
Google forced Samsung’s hand. Google forced Samsung’s hand.
 SAMSUNG MARKET SHARE
2012 2014 2016 2017 2018 2019 2020

21% 24% 20% 16%

In 2012 Q1 In 2016 Q4 In 2018 Q4 As of 2020 Q1

29% 23% 19%

In 2014 Q4 In 2017 Q4 In 2019 Q4
 SAMSUNG SWOT ANALYSIS
Strengths Weakness
• Research and development • Decline in smartphone sales
•
•
•
Award winning Brand
Ecologically Friendly Innovations
Stronghold in Asian markets
S W • Product Failures
• Dependence on Low-end smartphones

Opportunities Threats
• HR Management
• The Indian youth population is growing,
O T • Increased Competition
• Rise of Counterfeiting
and mobile phone sales is expected to • Legal and Regulatory threats
increase due to lesser call rates.
• Introduce innovative products
 Marketing Strategies
Distribution
Advertising and Sales promotion
Along with the launch of new products,
Samsung also consolidated its distribution Samsung uses both Push and pull
system. Samsung had 18 state-level strategy. By following push strategy,
distribution offices and a direct dealer Samsung pushes their products
interface. The direct dealer interface through sales and advertising strategy.
helped the company get quick feedback It seeks help from TV and print
from dealers and enabled it to launch
advertisements and through social
products according to consumer needs.
media.

Pricing
Samsung seeks a competitive pricing
strategy. It undertakes two components, the
first is skimming price and second is
competitive price. Skimming pricing allows
adjusting and updating its prices with Samsung campaigns
increased competition resulting to a
decreased price in order to attract more • Marvel’s Avengers: Age of Ultron and Samsung Mobile Present ‘Assemble part-1 and 2
consumers. Samsung also uses skimming • #Galaxy11: The Match Part 1 and 2
price to gain the upper hand over their • #OverToYou
competitors. The other one is Competitive • “Incredible Art Piece” campaign
pricing; it includes setting of price of a • The ‘Digital Line’ campaign
product or serviced based on what the
competition is charging. Samsung provided
better features and played cost competition
to make its market.
Xiaomi
About
Xiaomi was founded based on the vision

XIAOMI
“innovation for everyone”.
They believe that high-quality products built
with cutting-edge technology should be made
accessible to everyone.
They create remarkable hardware, software,
and Internet services for and with the help of
Mi fans. Mi routers, and Mi Ecosystem
products including smart home products,
wearables and other accessories.
They have presence in over 30 countries and
regions, Xiaomi is expanding its footprint
across the world to
become a global brand.

Founder Founded in

Lei Jun 2010

R&D Centers No. of employees

2 across the world and none in 18,170

India

01
Xiaomi Mi 1
And the first smartphone of
the company was Xiaomi Mi
1. It was announced back in
2011, literally a year after
Xiaomi was founded. The
smartphone was interesting
for several unique features,
had a very affordable price tag
and was not much inferior to
competitors in terms of
equipment
Xiaomi Evolution
02
Xiaomi Mi 3
Again, a year later, Xiaomi
Mi 3 comes out, and once
again becomes a hit in the
home market. Three minutes
after the start of sales, about
200,000 copies were
purchased. This was the best-
selling model for the entire
2013.
03 04
Xiaomi Mi 5 Xiaomi Mi 9
Xiaomi Mi 9 was revealed to the
Xiaomi Mi 5 was released
world. It was advanced, powerful,
only in 2016. Mi 5 turned out
and relatively cheap. With a good
to be a very balanced flagship,
fingerprint scanner under the display,
which pleased both with the
three really useful cameras, plus
design and the materials. And
wireless charging, which made the
as usual, it cost at least half
smartphone even closer to the
the price of the flagships from
expensive flagships from eminent
competitors.
manufacturers. Moreover, it was not
just wireless, but fast wireless with
20 watts.
 XIAOMI SWOT
A N A LY S I S

STRENGTHS

T H R E AT S S 


Affordable Pricing
High Quality Products
Substantial Profits Margins
 Competition  Manufacturing advantage
 Service

T
 Brand Differentiation is Absent

W WEAKNESSES

O
 Weak Brand Perception
O P P O RT U N I T I E S  Offline distribution network is weak
 Low Skimming Prices
• Expansion  Low Advertising and marketing
• Distribution spends
• Brand building
• Product Portfolio
 XIAOMI MARKETING MIX

Product Price
The products manufactured by the Xiaomi sells at low price.

company are of superior quality and Unique pricing strategy mostly aimed at gaining a substantial

are aimed to provide value for money market share. The pricing strategy of Xiaomi has enabled the

proposition to their customers brand to penetrate a global market and have a substantial market
share.

Promotion Place
• Word of mouth publicity. • Xiaomi mainly sells through online mode.
• Minimum expenditure was made • It operates through Flipkart in the online space in India.
on traditional advertising. Xiaomi also operates dedicated stores called Mi home
• Social Media and Online Forums • Xiaomi also operates 555 Mi authorized service centers
were used. across 356 cities in India alone
 MARKETING STRATEGIES
Xiaomi had created a huge fan following who
were the early adopters and the first ones to
buy MI UI smartphones they were known as MI-
fans these were the people mainly consisting of
bloggers, patrons who constantly created buzz
on the internet about the company, its products
and services it provided.
China had a micro blogging platform with more than 400 million
subscribers known as Sina Weibo and it was used as a medium for
promotion. Xiaomi uses online channels like Flipkart, Snapdeal and
Amazon for advertisement and selling of products to its target
customers. Xiaomi developed its own themes, games and apps which
work pre-installed on MI UI and helped contribute more than 6 million
sales revenue on a monthly basis.
Xiaomi did not follow standard method and sold
its products via online flash sales. In these
flash sales a limited quantity of product is
available for sale at a particular time, and the
sale continues till the stock lasts with an
intention to encourage customers to go for
impulse buying. The limited quantity also
motivates the customers to buy the product on
spot this method increases the profits of the
company, prevent the hoarding of stock and
over production.
Xiaomi had to focus on different strategies and
product mixes to effectively target different
segments. The segmentation was done mainly
based on four factors that were the Purchase
power, the required functionality, the
technological familiarity, and the intended
use. Hence three broad customer segments for
defined-
(1) Entry level: This consumer base of Xiaomi consists of people who belong to low
socioeconomic classes and these people usually spend a very minor portion of their
income on technology-based products, but they have a high level of curiosity in owning
them. Pricing is always an important factor for this people and they always look out for
cheaper substitute, they respond highly to advertising and the better the advertising the
better is the chance of making them by the intended smartphone product.
(2) The mid-range consumers:
This group mainly comprises of the middle-class people who are moving from the lower
sections of the society towards the higher sections. They look for a reasonably priced
product which has lot of value-added features these people are ready to spend their
earnings into new technological products provided they get the features they expect.
(3) High end consumers: These consumers mainly comprise of the people coming from
business backgrounds with high source of income and they mostly willingly invest in new
and upcoming technologies dominated by big brands like Apple, Samsung etc. Xiaomi
knew that these customers are not a big fish for them, so it did not focus these
customers initially but now after establishing itself in the lower and the middle segments
it has started focusing this segment.
INDIAN SMARTPHONE MARKET SHARE (2019Q2-2020Q2)
Thank You

MADE BY :
Pramey Sontakke SY-BMS 19301B0038
Ashlesh Shere SY-BMS 19301B0018
Shrutika Gawde SY-BMS 19301B0013
Manshi Kewat SY-BMS 19301B0043