MRK 108 Marketing Strategy Part 2: Pricing Strategy

MRK 108 - Marketing Strategy Part 2
B2C or B2B
The Marketing Mix
Product:
Briefly describe the product you are going to introduce or re-develop.
Consider your customers, the stage of the product lifecycle, differentiation strategies.
Product positioning statement and chart.

The product to be introduced is Xiaomi smart phones. Xiaomi enjoys a huge fan base globally. Xiaomi smartphones have special features yet their prices are cheaper than their two biggest competitors that is, Samsung and Apple.
Xiaomi smartphone is simply a good quality phone with more special features than standard android phones yet sold at a lower price. A high quality robust case, high resolution screen and longer battery life are among the best features that distinct Xiaomi smartphones from others.
Xiaomi prides itself in software more than the hardware in many instances such as cloud service and messaging app. Xiaomi also enjoys a longer product lifecycle of 24 months and the sales volume normally decrease when it enters its maturity stage.
Xiaomi is a brand known for great customer experience, flash sale and high performance though low price that focuses on middle class consumers.

Price:
Briefly describe what pricing strategy are you going to use?
To determine this, think about your pricing objective, your customers, the costs to get your product to market, your sales goals,
i.e. Charge a price that is lower/same/ higher than competition, why?

Xiaomi prices their phones at a cost that covers the device cost hence reason for low price since they focus on sustainability. Mostly, the company sells its products online hence reducing a number of costs such as avoiding retail and distribution costs. The company targets low income in emerging markets such as China and India and this works well as an aggressive penetration pricing strategy.

Place:
Describe your Distribution Strategy and explain why this would be a good distribution channel.
Where specifically will the product be sold?