Case
Teaching Notes
Supplementary Resources
Abstract
Xiaomi Global VP Hugo Barra is about to enter a 2016 mid-year review to determine the optimal growth strategy for India. As a relatively young start-up, Xiaomi entered India as an online-only brand selling affordably-priced smartphones. Xiaomi did not have the budget to compete with larger rivals who advertised heavily through billboards, television commercials, newspaper advertisements, and celebrity endorsements. Instead, the company relied on the creativity of its digital campaigns to generate organic word-of-mouth marketing on social media platforms. Combined with disruptively low prices for high-quality consumer electronics, the company had been able to attract a young, tech-savvy fan following over the past two years, since it entered the Indian market in 2014.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
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Resources
Exhibit 1: Market Size of Mobile Phones in India, 2011–2016
Years are plotted along the x-axis from 2011 to 2016 with a gap of 1 year. Retail value of mobile phones is plotted along the left side of the y-axis scaled from 900,000 to 1,300,000 with an increment of 80,000. Retail volume is plotted along the right side of the y-axis scaled from 100,000 to 300,000 with an increment of 40,000. Approximate values from the graph are tabulated below:
| Years | Retail Value RSP (INR mn) | Retail Volume (’000 units) |
| 2011 | 960,000 | 180,000 |
| 2012 | 1,120,000 | 220,000 |
| 2013 | 1,280,000 | 250,000 |
| 2014 | 1,140,000 | 210,000 |
| 2015 | 1,150,000 | 190,000 |
| 2016 | 1,240,000 | 200,000 |
Source: Euromonitor International 1
Exhibit 2: Leading Smartphone Brands in India, Q4 2015
Heading of the graph reads “Market share.” Market share percentage of each mobile phone brand is plotted along the x-axis and the names of the brands are plotted along the y-axis. Values from the graph are tabulated below:
| Brands | Market share (%) |
| Samsung | 28.6 |
| Micromax | 14.3 |
| Lenovo | 11.4 |
| Intex | 9.6 |
| Lava | 6.8 |
| Others | 29.3 |
Text on the bottom left corner of the image reads “ATLAS | Data: Counterpoint Research” and a rectangular box on the bottom right corner reads “Share.”
Source: Quartz India, 6 April 2016 2
Exhibit 3: Diwali 2015 “Light Mi Up” Marketing Campaign
Image has an infographic on top. The infographic has a Mi mobile phone on the left. Background of the infographic shows a silhouette of a palace and five kids seated before the palace. Text in a rectangular box on top of the screen reads “Hi! Design your own pattern by lighting at least 5 diyas in a unique order. Share this pattern on Facebook/Twitter and challenge your friends to re-trace it! Your friend will have 10 seconds to re-trace your pattern.” Text below the box reads “
A circle with text “Celebrate Diwali with MI” is on the right side of the infographic. Text below the circle reads,
“Light Mi Up
Create a unique diya pattern and challenge your friends to retrace it.
Stand a chance to win several prizes, including Mi phones!
Or try your hand at re-tracing our pattern in 10 seconds.
Enjoy an enhanced gaming experience on our Mi Store App.
Learn more>”
Two rectangular boxes are below the text. First rectangular box has an illustration of mobile phone with a crown and text in the box reads “Download Mi Store App.” Text in the second box reads “Check out special offers.”
Two screenshots are below the infographic. Top pane of the first screenshot shows a profile photo of a man carrying a kid on his shoulders. Text beside the photo reads “This pattern is designed by Manu Kumar Jain; 4.09% users succeeded.” Text below the top pane reads “
Top pane of the second screenshot shows a profile photo with an illustration of a rabbit. Text beside the photo reads “This pattern is designed by Guru Prasad; 0% users succeeded.” Text below the top pane reads “
Exhibit 4: Mi Community Redmi Note 3 Photoshop Battle
Image has four photos. Text in the four photos is listed below:
- First photo shows a poster of the movie “Bahubali” featuring Actor Prabhas carrying a Redmi Note 3 phone on his shoulders. Text in the bottom of the poster reads “S. S. Rajamouli’s Bahubali–The Beginning.” Text on the bottom right corner of the image reads “MIUI; en.miui.com.”
- Second photo shows a poster of the movie “Mission Impossible 2” featuring Actor Tom Cruise riding a bike. Text on the left side of the actor reads “No Mission can stop us from getting hands on the beauty” and text on the right side reads “Mission impossible.” A blazing fire is in the background.
- Third photo shows a poster of the movie “Mission Impossible–Ghost Protocol” featuring Actor Tom Cruise climbing on a tall building (photo is captured from the top). A Redmi note 3 phone is visible on the floor above his hands.
- Fourth photo shows a poster of the movie “Mission Impossible–l” featuring Actor Tom Cruise hanging with a rope tied to his hip (photo is captured from the side). He is trying to reach a Redmi note 3 phone lying on the floor. Text on the bottom right corner of the photo reads “MIUI; en.miui.com.”
Notes
1. Euromonitor International, ‘Sector Capsule: Mobile Phones in India’, 21 September 2016, https://www-emis-com.proxy.jbs.cam.ac.uk/php/search/docpdf?pc=IN&sv=EMIS&doc_id=551676884.
2. Itika Sharma Punit, ‘China’s Xiaomi Has Just Shown How Serious It Is about India’, Quartz India, 6 April 2016, https://qz.com/india/655135/chinas-xiaomi-has-just-shown-how-serious-it-is-about-india/.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
