UNDERSTANDING

SALES STRATEGY (OFFLINE) OF

XIAOMI

GROUP 4
MD Arshad MBA21108
Meesala Jayaprakash MBA21109
Mohammad Nadeem MBA21111
Mohanish Mangalam MBA21112
Mohibbul rahman MBA21113
Mrinalini Minal MBA21116
Company Background
• Company Name – Xiaomi
• Registered Name – Xiaomi inc.
• Founded – 2010
• Founder, CEO, Chairman – Lei Jun
• Market Segment - consumer electronics and related software, home appliances, and household
items
• First Smartphone launched – 2014
• Position in World – Fourth largest manufacturer of Smartphones (in units)
• Ranking – 266 th position in Fortune Global 500 ranking (2022)
Market Overview
Market Overview
Selling Process

Selection of Distributor
• Capital
• Domain Check
• Industry Check
• Tr a c k r e c o r d
• Minimum Stock

• Prefered partner
• Premium prefered partner
Sales Strategy

Key Account
• 22 % to 25 % market share in the region

Target Account
• < 20 % Market Share
Issue Check Motivation

Why Bother Account

Sales Territory management
Country Head

RH RH RH RH RH

Z Z Z Z Z Z
H H H H H H
SH SH SH SH SH SH

TH TH TH TH TH TH TH

T T T T T T T T
L L L L L L L L
Promoter Non- Promoter

Super Buddy Mitr

Sales Force Compensation Structure
For Executives For Promoters
• Fixed Salary • Fixed Salary
• No Commission • Cash commission based on
• Compensation Based on Rating Model

• 2 • Minimum
• 3
• 4
• 5
• 6 • Maximum
Sales Culture

• Aggressiveness,
• Problem-solving skill
• Pressure,
• Aided by brand,
• Powerful incentive plan.
 GTM Strategy
Offline Channel

Company Distributor Dealer/ Retailer Consumer

Channel Activities
• Sell In
• Sell through
• sell out
 Continue...
GTM Strategy
Mi Home Mi Studio
Extension of Mi Home

Mi Store Mini Store

• 250 sq ft
• ₹2.5 lakhs - furniture No buddy (90k furniture, 50k security, 20k
• ₹1 lakh - interior interior) 5 lakhs products - no cladding
• ₹1 lakh security money
• Buddy - 15 Lakhs investment ( 2.5 -
counter, 1 - security, 1.5 - interior, 10 lakhs
products) with cladding
Recruitment and induction process
System of evaluation
60% - of overall outlets should sell at least 1 Xiaomi series phone
15% - of overall outlets should be KRO - should sell more than 12 Xiaomi units
5% - of overall outlets should sell future oriented products
2.5% - of overall outlets should generate a revenue of ₹60 lakhs per
month
Thank you! Special Thanks to

Prof. Baljeet Singh Mr. Sagar Mishra

Faculty of IIM Jammu Xiaomi Territory Head, UP East