Mi.docx

A PROJECT REPORT ON

NEW PRODUCT DEVELOPMENT OF A COMPANY

Submitted in partial fulfilment for of Post graduate diploma in management(2018-20) from Calcutta Business School.

Submitted by Siddhartha Bhattacharjee Roll No-18022 PGDM Batch- 2018-20

ACKNOWLEDGEMENT Intellectual guidance is the royal road to great success. This project owes its existence to many people without whose cooperation and efforts the realization would not have been possible. I have taken efforts in completing this project. Therefore, I am using this opportunity to express my gratitude to everyone who supported me throughout the course of this project. I am thankful for their aspiring guidance, invaluably constructive criticism and friendly advice during the project work. I am sincerely grateful to them for sharing their truthful and illuminating views on a number of issues related to the project. I would also like to thank the Chairman PGDM Program and Principal (Acting), Prof. Suman Kr. Dawn, of CALCUTTA BUSINESS SCHOOL, for giving me an opportunity to submit a project on this topic which provided me with a great insight on the company’s marketing structure.

Dated: ___________________ _________________________

INDEX

I. II. III. IV. V. VI. VII. VIII. IX.

INTRODUCTION COMANY AND ITSB PRODUCT CULTURE LOGO SWOT ANALYSIS RESEARCH METHODOLOGY DATA ANALYSIS CONCLUSION SUGGESSTION

INTRODUCTION

Xiaomi was founded in 2010 by serial entrepreneur Lei Jun based on the vision “innovation for everyone”. We believe that high-quality products built with cuttingedge technology should be made accessible to everyone. We create remarkable hardware, software, and Internet services for and with the help of our Mi fans. We incorporate their feedback into our product range, which currently includes Mi and Redmi smartphones, Mi TVs and set-top boxes, Mi routers, and Mi Ecosystem products including smart home products, wearables and other accessories. With presence in over 30 countries and regions, Xiaomi is expanding its footprint across the world to become a global brand. Xiaomi Corporation is a Chinese electronics company headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, and related consumer electronics. Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become the country's largest smartphone company in 2014. At the start of second quarter of 2018, Xiaomi was the world's fourth-largest smartphone manufacturer, leading in both the largest market, China, and the second-largest market, India. Xiaomi later developed a wider range of consumer electronics, including a smart home (IoT) device ecosystem. Xiaomi has 15,000 employees] in China, India, Malaysia, Singapore and is expanding to other countries including Indonesia, the Philippines, and South Africa. According to Forbes magazine, Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion. He is China's 11th richest person and 118th in the world.] Xiaomi is the world's 4th most valuable technology start-up after receiving US$1.1 billion funding from investors, making Xiaomi's valuation more than US$46 billion

PRODUCTS Xiaomi produces many products. Notably, it produces smartphones which run on their own version of Android MIUI firmware. Observers suggest that part of Xiaomi's rapid success rests on its ability to differentiate itself within the Android universeThe company has increased its range of products; its smartphones include: Mi Series, Mi Note Series, Mi Max Series, Mi Mix Series and the Redmi Series. As well as mobile phones, Xiaomi has started selling wearables, mobile accessories, and appliances such as television and speakers. In 2018 it was selling tablets, laptops, and smart-homedevices. Xiaomi operates on a vertically-integrated model that enables the company to sell hardware at cost or below in order to attract users and earn money by selling content. Hugo Barra, a former Google executive who served Xiaomi's vice president from 2014 to 2017, characterized the organization as "an Internet and a software company much more than a hardware company". Xiaomi also keeps its prices low or close to "bill-of-material" by keeping most of its products in the market longer, eighteen months rather than the six-month norm followed by many smartphone companies.[20] This strategy allows Xiaomi to take advantage of price reductions in the prices of key components of its products. It enables the company to sell hardware with specifications comparable to high-end devices at a fraction of the cost The company's version of the Android operating system, the MIUI skin, with its design, app marketplace, and functionalities, has established a community of users[19] who form a crucial part of Xiaomi's customer base and contribute to the company's drive for market awareness. This ecosystem is a massive source of revenue as indicated in 2015, when sales from the platform reached $750 million. The company focuses on India, the world's second-largest smartphone market. Xiaomi announced on May 2, 2018, the launch of Mi Music and Mi Video to offer "value-added internet services" in India. On March 22, 2017, Xiaomi announced that it planned to set up a second manufacturing unit in India in partnership with contract manufacturer Foxconn. On August 7, 2018, Xiaomi announced on its blog that Holitech Technology Co. Ltd., Xiaomi's top supplier, would invest up to $200 million over the next three years to set up a major new plant in India. Recently Xiaomi started to sell more simple goods such as sunglasses, caps, pillows, glass lunchboxes, cups, filters, bags, backpacks, luggages, screwdrivers, umbrellas and etc

CULTURE Just for fans" – that's our belief. Our hardcore Mi fans lead every step of the way. In fact, many Xiaomi employees were first Mi fans before joining the team. As a team, we share the same relentless pursuit of perfection, constantly refining and enhancing our products to create the best user experience possible. We are also fearless in testing new ideas and pushing our own boundaries. Our dedication and belief in innovation, together with the support of Mi fans, are the driving forces behind our unique Mi products.

LOGO

The "MI" in our logo stands for “Mobile Internet”. It also has other meanings, including "Mission Impossible", because Xiaomi faced many challenges that had seemed impossible to defy in our early days

Xiaomi SWOT Analysis: strength based on cost advantage In business context, SWOT acronym stands for strengths, weaknesses, opportunities and threats associated with the company. The following table illustrates Xiaomi SWOT analysis 1. Xiaomi co-founder and CEO Lei Jun is an effective business leader named “Businessman of the Year” 2014 by Forbes Asia. Dubbed the ‘new Steve Jobs’, Lei Jun is perceived as the face of China Inc, along with Alibaba Founder Jack Ma.[2] Moreover, it is said that Lei has never yelled at his staff. When he encounters a problem, he just smiles and gets down to business, and tries to find a solution. In social gatherings, Lei is always a good listener. Efficient and visionary leadership style is one of the major factors behind the phenomenal growth of the internet technology company. 2. The electronics and software company has enjoyed an impressive growth rate since its foundation in 2011. In Q4 2017, Xiaomi became the world’s No.4 in terms of quantity of shipments. Despite the decline of 6,3% in the global smartphone market, Xiaomi managed to maintain a year-on-year growth of 96.9%, the only brand demonstrating continuous growth. Moreover, Xiaomi became number one smartphone vendor in India in Q3 2017, with a market share of 23.5%. The company shipped 9,2 million smartphones in India in this quarter alone. 3. Cost advantage is one of the major strengths associated with Xiaomi. The profit margin of as low as 3% and mainly focusing on online sales channels enables the company to price its products considerably lower compared to the competition. It has been noted that “because a Xiaomi phone does deliver more than 90 percent of the functionality of an iPhone for less than 50 percent of the price that Xiaomi has a competitive edge.” 4. Xiaomi brand value has been estimated as much as USD 100 billion. The mobile internet company has raised funds at a USD45 billion valuation in 2014 and it could be the biggest IPO since Alibaba Group Holding Ltd.’s USD25 billion debut. An immense brand value can be interpreted as a convincing indicator of customer loyalty and potential of the company. Weaknesses in Xiaomi SWOT Analysis 1. Low profit margin can be shown as a noteworthy weakness associated with Xiaomi. A filing at the end of 2013 revealed that Xiaomi’s operating margin was just 1.8%. Although low profit margin is necessary for the internet technology company to sustain its cost-based competitive advantage, it also subjects the brand to certain risks. Specifically, there is a higher risk for Xiaomi that a decline in sales volume will erase its profit and this may result in a net loss for the period. Moreover, low profit margin may limit R&D investments for the electronics and software company, thus compromising its long-term growth prospects. In contrast, Apple, one of the main competitors for Xiaomi maintains a high profit margin. For example, the raw cost of iPhone X has been estimated USD 357, but Apple priced it USD 999. Unlike Xiaomi, a high profit margin allows Apple to maintain its operations in times of economic uncertainties thanks to cash reserves. 2. Lack of product innovation, and lower smartphone capabilities and functionalities compared to major competitors such as Apple and Samsung is another weakness

associated with Xiaomi. The company is often criticized for the lack of innovation in its products. It has been noted that “unlike Xiaomi, its competitors were able to offer something new and innovative. Vivo offered curved screens; Oppo and OnePlus dangled rapid charging; LeEco offered exclusive content; and Huawei threw in dual lens cameras and fingerprint sensors.” Xiaomi Inc. Report contains a full version of Xiaomi SWOT Analysis. The report illustrates the application of the major analytical strategic frameworks in business studies such as 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, business strategy and organizational culture. The report also comprises discussions of Xiaomi marketing strategy, ecosystem and addresses issues of corporate social responsibility.

PROJECT RATIONALE

To study the consumer perception and mindset regarding the various air conditioners available in the market

OBJECTIVE OF STUDY

“To find out How personal factors of consumer influence buying behavior process with respect to Air conditioner”

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Primary Objective:

“To Study of personal factor influencing consumer buying behavior with respect to Air conditioner ” •

Secondary Objective:

 To know what are respondent's preferences for different brands 

To know respondent's preferences for different brands.

 To find out the brand awareness of Air conditioner in people.  To know the buying criteria of customers when they go for purchase an Air conditioner.  To know the association between Brand and income, Brand and age, Brand and occupation.

METHODOLOGY

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Research methodology is the systematic design, collection, analysis and reporting of data and finding, relevant to appraisal & describes all the research procedure.

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Keeping in mind the Research Objectives mentioned previously, a study was conducted to find out how different factors influences buying behavior of customers.

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Sample Size: - 30

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Sample design: - (The 6W’s)

WHO:-Who should be considered a potential respondent? The data are collected from users of Air conditioner. WHAT:-What information should be obtained from respondent? Information related to demographic, purchase criteria and brand

preferences are

taken. WHERE:-Where the respondents should be contacted to obtain the required information? The respondents are from West Bengal area. WHEN:-When the information should be? The data are collected from 25th march 2019 to 27th march 2019. WHY:-Why are we obtaining information from the respondents? To know different factors influences buying behavior of customers. WAY:-In what way are we going to obtained information from the

respondents?

The date is collected thought Google forms

Sources of data collection:1. Primary Data: It was collected through questionnaire method by using Google forms. 2. Secondary data:These are obtained from Google, Wikipedia, And from different research papers

DATA ANALYSIS

AGE

FAMILY INCOME

Have you an Air Conditioner?

Any idea to buy Air Conditioner?

Which Brand comes to your mind first when you think about Air Conditioner? Give your preference?

Which brand do you have?

What important criteria you consider while purchasing air-conditioner?

From where did you come to know about dealer?

From which purpose are you buying this air conditioner?

When you went to purchase Airconditioner then you got whole information about it?

Are your expected features are available in the Air-conditioner?

Are they are performing well?

Please read out the following factors carefully, Rate them in the order of importance ensure your satisfaction level.

Where do you service your Air conditioner?

What is the image of “xiaomi MI” in your mind?

How frequently do you get your Airconditioner serviced?

Do dealer suggest when the next service is?

Will you suggest to others to buy air conditioner of xiaomi Mi

What is your expectation/suggestion from xiaomi MI?

What things you wish to have in xiaomi MI air conditioner?

Conclusion

  

A small sample size of only30 people taken, so we cannot draw interferences about the population from this sample size. Time period is short and resource constraints. so we cannot say that the same response will exist throughout India Now days people are looking for quality with price term of technology and better after sale service

Suggestion and recommendation   

MI should introduce air conditioner with quality and best in price value

MI should do promotion in TV and connect with ac dealers .

MI should make available their AC with the offline store with best offers  MI should build provision for excellent after sales services in each cities