Great Marketing Campaign made by Lei Jun

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Maybe Lei Jun is not so familiar to most people, even Chinese, but UCWEB (the leading web browser for mobile devices,), Kingsoft (the biggest desktop software company in China) are household names in China.

lei jun

Lei Jun

As the leader of these two companies, Lei Jun made an important decision: to penetrate into cell phone market and created his brand: Xiao Mi (means “little rice” in Chinese)

Yesterday, Xiao Mi started to sell its new product: Xiao Mi 1s. The result is astonishing: all the 200 thousand Xiao Mi phones have been ordered within 30 minutes! It reminds people of the panic purchase of Iphone. However, the price of Xiao Mi is only half the price of an Iphone 4s.

Xiao Mi 1

In fact, this is not the first time that Xiao Mi surprised people. Only one week ago, Xiao Mi released its new generation product: Xiao Mi 2. It charges normal audience 199 Yuan for entering the release conference. It seems the entrance fee is still too low to keep the crazy fans outside. Thousands of Xiao Mi fans came to the conference.

Problems

However, pleasure of success is not all what Lei Jun has. Now Lei Jun has also headache about some problems.
Xiao Mi users have always to worry about the quality of their cell phones. However, Xiao Mi has never made any official announcement to the problem which has put out the fiery passion of its fans. Some of the users become quite angry and some of them begin to satire Xiao Mi, “Xiao Mi requires a strong nerve.”
What makes things even worse is its software lagging behind. Its online chatting software Mi Chat has totally lost in front of Weixin and Miui platform is also slower than the schedule.

Not only the problems inside, but also the outside problems, especially the increasing of competitors are “torturing” Lei Jun.

Xiao Mi Strategy

Although Lei Jun has met many problems with his Xiao Mi, the brilliant performance of its sales wiped off all the suspicion.
The strategy Lei Jun made is the key reason for the success of Xiao Mi. The total marketing process can be divided into three steps.
Step 1: hunger marketing

At first, Xiao Mi didn’t put enough products in the market which reminds us again of the example of Apple. Because of the quantity is small, the cost is correspondingly high. However, during the first step, Xiao Mi has succeeded in catching people’s eyes. And the low price (which is half that of Iphone) has killed many competitors.
Step 2: super hot sales
After creating a good reputation and hunger from customers and also keeping competitors away, Xiao Mi began to feed the market with its products and cover its lost in the beginning as well as make a super-normal profit. What needs to know also is that the huge quantity of its sales further decreases the cost from suppliers which decreases the cost of Xiao Mi greatly.
Step 3: clean up stock
The battle is over. Then is the time to clear the battlefield. Xiao Mi 1 is a great success, but it has to make space for the next generation of Xiao Mi: Xiao Mi 2.
It is introduced by Lei Jun that the marketing strategy of Xiao Mi 2 will basically be the same as Xiao Mi 1.
Lei Jun has proven he’s a good marketer during Xiao Mi 1 marketing campaign. On the other hand, the marketing is too good that the quality of products and its after service cannot catch up with it.

What’s the strategy you can learn from Xiao Mi?

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