Xiaomi Segmentation, Targeting and Positioning

Xiaomi Segmentation, Targeting and PositioningXiaomi segmentation, targeting and positioning is needed to indentify the target customer segment for the company and to develop products and services that are attractive to this segment.

Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment. Xiaomi uses mono-segment and imitative types of positioning.

The internet technology company uses mono-segment positioning, appealing to the needs of a single customer segment. Specifically, Xiaomi targets a customer segment that want to use smartphones and other technology products, but have limited budget to make such a purchase.

Xiaomi also uses imitative type of positioning by closely imitating the products of market leaders such as Apple and Samsung. The electronics and software company has even earned the nickname “Apple of the East” due to its close imitation of Apple products and Apple product presentation.

The following table  illustrates Xiaomi segmentation, targeting and positioning:

Type of segmentation Segmentation criteria Xiaomi target customer segment

 

 

Geographic

Region 70 countries and regions globally
Density Urban and rural
 

Demographic

Age 18 – 65
Gender Males & Females
Life-cycle stage Bachelor Stage young, single people not living at home

Newly Married Couples young, no children

Full Nest I youngest child under six

Full Nest II youngest child six or over

Full Nest III older married couples with dependent children

Empty Nest I older married couples, no children living with them

Empty Nest II older married couples, retired, no children living at home

Solitary Survivor I in labour force

Solitary Survivor II retired

Occupation Students, employees, professionals
Behavioural Degree of loyalty ‘Hard core loyals’ ‘Soft core loyals’ ‘Switchers’
Benefits sought Cost attractiveness
Personality Easygoing, determined and ambitious personality types
User status non-users, potential users, first-time users and regular users
Psychographic Social class Lower class, working class and middle class
Lifestyle[1] Struggler, Mainstreamer, Aspirer, Explorer

 

Xiaomi segmentation, targeting and positioning

Xiaomi Inc. Report contains a full analysis of Xiaomi segmentation, targeting and positioning and Xiaomi marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Xiaomi. Moreover, the report contains analyses of Xiaomi leadership, organizational structure and organizational culture. The report also comprises discussions of Xiaomi business strategy, ecosystem and addresses issues of corporate social responsibility.

Xiaomi Inc. Report 2018

[1]According to Cross Cultural Consumer Characterization by Young & Rubican