Xiaomi Alters its Marketing Plan- Can No Brand in India Survive Without Advertising?
From banking upon word-of-mouth in its initial days to now getting the dynamic Ranveer Singh on board, Xiaomi’s alteration of its marketing plan makes us wonder if advertising is the only way to save a brand’s neck.
A few years back, the Chinese mobile market leader, Xiaomi, took the ad world by a surprise by claiming to not to rely on traditional advertising. Its idea of keeping the product prices low, offer supreme features and bank upon the inexpensive social media campaigns definitely made a stir.
Xiaomi often trumpets how the brand amassed popularity and profits in China without going heavy on advertising. It primarily relied on dedicated fan-based communities to spread the word, refraining to advertise. As per one of IDC’s survey’s, when it comes to Xiaomi, “brand trust is the highest influencing factor for two third of its consumers.” This is followed by value for money proposition and availability of latest specifications in the brand’s case.
In India, the brand followed the same approach. Its idea of combating the cutthroat market competition by trying this peculiar strategy garnered positive responses. For most experts, the effects of word of mouth, especially in the case of Xiaomi, proved to be helpful in influencing consumer behavior and decision. For them, the traditional forms may be important but not a pre-requisite for any brand’s success. In my conversation with Harish Bijoor, Brand expert & Founder of Harish Bijoor Consults Inc., he says, “B2B products that rely on word of mouth of
Shubho Sengupta, Digital Marketer and Brand Consultant, held similar views. For him, “Traditional advertising can be bypassed. But not all forms of advertising, especially organic. To my mind, it’s a clever blend of paid and organic”.
Change of Route
In 2015, Xiaomi deviated from its route and took to ATL advertising. The need to broaden its horizon and reach a wider audience led to this move.
In a first, it released its pan-India print campaign and created a small history in the advertising world. It was a full-page color ad on Times of India and other leading dailies to promote the Mi 4, its flagship smartphone. As per the reports of TOI, a full-spread front-page ad in the city of Bangalore costs around Rs. 7,371,850 ($116,000). This gives us a fair idea of the company’s ad spend for this particular print ad, which can be said to be mere expense for a company that is valued around $50 billion.
To amplify the effect, Xiaomi debuted television with its first ever TVC for the Indian market in 2015. The ad film promoted its newest offering- Redmi Note 3. The intent was to penetrate in the hinterland.
Possible Reason
We all know this deviation was a distant plan from Xiaomi’s initial marketing strategy, where it kept away the traditional advertising tools. The brand had always emitted the idea of their products sell for themselves. This alteration of
Getting Ranveer Singh on Board
Xiaomi’s latest TVC starring the eccentric Ranveer Singh was my motivation behind this article. His entry as the brand’s new ambassador has been a topic of discussion for most of us here. The video features Ranveer releasing a teaser of Redmi Note 7.
It compels us to wonder if celebrity advertising is the only resort for mobile phone companies now. Do they not have anything novel to offer on the table? I think Xiaomi admits product parity, that there is no clear advantage for their products.
Commenting
on the same, Lloyd Mathias, Marketing
Expert and Former Asia Pacific Marketing Head of HP says, “I think for any
mass technology brand in India using Television as a medium is inescapable. As
Xiaomi built their brand in the early stages they could stay away from
mainstream but now that they are a mass player they have little choice but to
embrace TV.
This together with their brand ambassador Ranveer Singh will help them reach
newer audiences not entirely reachable through digital and given that the smart
phone market is now penetrating the interiors will matter to them immensely”.
Throwing light on the same, Upasana Joshi, Associate Research Manager at IDC India says, “In the mobile phone ecosystem, till the brand is able to pull off with its technological advancements/ features/ price range, use of celebrities or traditional media forms can be kept away. Having said that, competition is a major reason that makes brands advertise.
It is not the first time that Xiaomi has got a brand ambassador. The bigger question should be if Xiaomi is out of its features?”
What Does the Future Hold?
The mobile handset category has always been a competitive space given India’s status as the world’s largest market for the category. Over the years, brands in the category- like Samsung, Nokia, Motorola, Micromax, Vivo, Oppo, have been big spenders on media and properties like Cricket. Xiaomi following the norm is not unexpected. They will only intensify their presence going forward.
Upasana also adds, “During such a fierce market competition, you ought to use advertising as a tool for a clear demarcation. This is because there no new mobile technology or feature being offered.
A mobile handset is just like any other FMCG product. The offering is the same. You got to advertise in order to stand different in the market”.
For me, deviation from Xioami’s initial plan has worked in their favor. You ought to change as per the need of the hour. For the mobile market, whose popularity is considerably shrinking, any tactic that glues the audience to your brand is a success. I now look forward to the fruits that the company will reap by Ranveer’s entry as an ambassador. His huge mass appeal across all demographics and passion for intricate detailing should bask a lot of attention.
