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A Project Report
on
Consumer behavior before & after buying Xiaomi (MI) Smartphones

BUSINESS ANALYTICS, 2ND SEMESTER

1ST YEAR, MBA 2020-22

SUBMITTED BY: -
SHRUTI AARYAN (201161025)
SHUBHAM PAL (201161027)
VISHAL KUMAR GUPTA (201161030)
SAGARIKA SINGH (201161021)

UNDER THE GUIDANCE OF

DR. KAVITA SRIVASTAVA
ASSOCIATE PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
RAJIV GANDHI INSTITUTE OF PETROLEUM TECHNOLOGY
JAIS, AMETHI.
(A COLLEGE OF NATIONAL IMPORTANCE)

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ABSTRACT
Smart phone, being small in size, provides a one stop solution for mobile
calls, emails, internet access. Recently the Smartphone sales have
pushed several brands at nominal price like Oppo, Xiaomi, and Vivo.
According to researcher International Data Corporation, India is poised
to become the third-largest market for smart phones in four years, with
phone manufacturers releasing more affordable 4G handsets and
targeting buyers in small cities and towns.

This study aims to learn more about consumer perceptions of Xiaomi

smart phones and the factors that influence their purchasing decisions.
The research design is exploratory in nature, putting a strong focus on
numerical results (number).

The data for the study was collected using the questionnaire process,
with a sample of representative customers drawn using a simple random
sampling approach. Several observations have been made that each
Smartphone has its own profit and luxury provided by the companies.
According to consumer opinion, Xiaomi's product qualities are not as
appealing as those of its rivals (such as Samsung).

In order to meet consumer demands, the organization must develop each

of its products. It is suggested that the company should release more
low-cost smart phones with standard quality, as this will enable them to
reach a larger audience, as the country's lower-income population is
large.

INTRODUCTION
About Smart Phones
A smartphone is a mobile phone that can do more than just make and
receive phone calls and text messages. Smartphones are computer-like in

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that they can access the Internet and run software programs. Touch
screens are used on smartphones to enable users to communicate with
them. There are thousands of mobile applications available, including
sports, personal-use, and business-use services.

About XIAOMI (MI)

Xiaomi (MI) is a Chinese multinational technology company based in
Dongguan, China. It was established in 2009. Guangdong is a province
in China that designs, develops, and manufactures smart phones.
Accessories, apps, and online services are some of the items available.
In its smartphones, the company uses Hi-Fi processors. focuses on
providing consumers with a high-quality audio experience. High-fidelity
is abbreviated as Hi-Fi.

With the creation of the X1, Xiaomi (MI) became the first company in
the world to incorporate Hi-Fi sound quality in its smart phones. Since
then, it has demonstrated a commitment to Hi-Fi in all subsequent
generations of its phones.

Xiaomi (MI) developed the software which includes- App Store, I

Manager, and a
proprietary Android-based operating system called Fun touch OS.

BBK Electronics launched Xiaomi (MI) in 2009 as a sub-brand.

Landline and cellular phones were the brand's first forays into the
telecommunications and consumer electronics market. Xiaomi (MI)
launched its own line of smartphones in 2011.
Xiaomi (MI) continues to innovate through innovation and technology.
Xiaomi (MI) released the X1 in 2012, which was the first Smartphone to
include a Hi-Fi processor, resulting in an unrivalled audio experience.
Since then, all Xiaomi (MI) smart phones have included this technology,
which was pioneered by Xiaomi. The creativity never ceases after that.

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XIAOMI IN INDIA

According to 2014 numbers, Xiaomi accounted for 5.3 percent of the

global smart phone market, placing them third behind Samsung (23%)
and Apple (12%). (Figure 2). By the end of 2015, Xiaomi had surpassed
Samsung and Apple in China, and had also demonstrated its success
against other Chinese firms such as Huwei and Vivo.

Xiaomi accounted for 5.3 percent of the global mobile phone market in
2014, putting them third behind Samsung (23 percent) and Apple (14
percent) (12percent).  Xiaomi had surpassed Samsung and Apple in
China by the end of 2015, and had also demonstrated its performance
against other Chinese companies including Huwei and Vivo.

Xiaomi began selling smartphones in India in July of 2014. By 2016, the

company had made India the company's second-largest market for smart
phones. By 2019, the Indian smart phone market is projected to expand
to 225 million units, making it the second largest in the world. Every
year, millions of smart phones are sold.

Since 70% of the population uses feature phones, the projected growth
of India's smart phone market was thought to be poor. Based on the
availability of a low-cost smart phone that has captured 77 percent of the
mobile phone market, India had become an important destination for
smart phone development and use by 2014.

According to regulatory filings obtained by Alt Info, sales of the

Chinese smartphone maker in India increased 7% year over year to Rs
38,196 crore in 2019-20. Despite this, the company made a profit of Rs
401 crore in FY20, compared to a loss of Rs 148 crore the previous year.

Xiaomi is, without a doubt, India's largest smartphone manufacturer in

terms of units sold. According to Counterpoint Research, it lost one

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percentage point of market share in 2020 from the previous year, to 26

percent. Samsung and Vivo stayed in second and third place,
respectively, with no improvement in market share—21 percent and 16
percent—but Realme and Oppo grew in the previous year.

India is one of the world's fastest growing economies, and the growth of
the telecom industry in India, especially in the field of mobile
communication, is a live example of this progress. There is a steady
increase in surplus cash flow, and there has been a significant shift in
customer attitudes and desires.

Indian smart phone company is a growing industry, with many mobile

companies concentrating on India as a market. Samsung, Apple, Sony,
Nokia, Motorola, LG, and so on are a portion of the major global
organizations, but their share of the overall market is shrinking as
neighborhood brands such as Micromax and Karbonn are releasing
smart phones with Android working frameworks and large screens at
lower costs than the universal brands.

In India's smartphone market, double SIM phones are becoming more

widely available. However, the lack of specific applications or Indians
may pose a challenge to the growth of this industry.

LITERATURE REVIEW

For many years, international companies such as Nokia, Motorola,

Apple, and Samsung dominated China's cell phone industry. With the
introduction of smartphones, however, the situation has changed
dramatically.

Nokia was a company that went out of business. Motorola was bought
by Google, and sold to Lenovo in 2014. Despite having the largest
market share in China, Samsung's success has slowed, with both sales
and profit growing at a negative rate. Although the rate of growth has

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slowed, Apple is still growing. The Chinese leap, on the other hand, is a
stark contrast. Xiaomi has made particularly remarkable gains in the
business world.

Consumer perception is defined as the process by which a person

receives, selects, organizes, and interprets information.

“The mechanism by which a person selects, organizes, and interprets

stimuli into a meaningful and coherent image of the world” is how
perception is characterized. Consumer behavior is described as "the
actions that consumers take when they are looking for, buying, using,
reviewing, and discarding products and services that they believe will
meet their needs."

Product attributes are both intrinsic and extrinsic characteristics or

features that an entity does or may not have. The beneficial results that
result from the attributes are referred to as benefits. People are looking
for goods that can fix their problems and meet their needs. Consider why
a customer prefers a product based on its features to help advertisers
understand why certain customers choose certain products.

OBJECTIVE

1. Consumer perception towards MI-XIAOMI

2. Current & Future demand assessment of MI-XIAOMI in India

RESEARCH METHODOLOGY

Research Design- Exploratory

Data collection method: Primary Data has been collected by

“Questionnaire method” for a particular investigation. It is simple for a
moiled set of questions presented to respondents for their answers. Due

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to this flexibility, it is most common instrument used to collect the

primary data.

Sampling Area: The survey was conducted in UTTAR PRADESH.

Sample Size: 120 Respondents.
Sampling Techniques- Random Sampling.

DATA ANALYSIS AND FINDINGS: -

1. GENDER

GENDER

Female
28% Male
Female

Male
72%

Interpretation: Among all respondent 28% are female and 72% are
male which will be actual sample size of the study.

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2. AGE

AGE

3%
22% 15-20 yrs
21%
21-25 yrs
26-30 yrs
Above 30 yrs

54%

Interpretation: This question was asked to know the age of the

respondents and also the age range in which they fall.

3. Employment Status

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Employent Status

2%
19% Full time
Part time
3% Student
Prefer not to say

76%

Interpretation: Question was asked to know how many people are

employed (whether they are full-time, part-time), student etc.

4. Education

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Education

2%4%

Bachelor's Degree
25% Master's Degree
PHD or Higher
Prefer not to say

69%

Interpretation: Asked to know the education qualification of the

respondents (whether they are having Bachelor’s degree, Master’s
degree, PHD or higher etc.)

5. Yearly Income

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17%

3%
Less than 1 lakh
9% 2 Lakh
4 Lakh
More than 4 Lakh

72%

Interpretation: As per our study 72% of the respondents are having less
than 1 lakh annual income and 16% having more than 4 lakh annual
income and other respondents are having income as shown in pie-chart.

6. Which one was your first mobile phone

2%

33% Keypad/Black & White

45% Multimedia
Android
IOS

21%

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Interpretation: Asked to know the first mobile which the respondents

are using. We found that 45% respondents are using keypad/Black
&white first.

7. Are you using XIAOMI Mobile currently

35%
Yes
No
65%

Interpretation: We found that 65% of our respondents are using

XIAOMI mobile and 35% are not.

8. Why would you choose XIAOMI

3%

Brand
43%
Price
Appearance
52%
Features

3%

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Interpretation: Study suggested that 52% people are using XIAOMI

because of price, 43% because of features, 3% because of appearance &
2% because of brand.

9. If you are going to buy XIAOMI Phone in future which price

range would you prefer

4%
20%

Rs. 10000-15000
Rs. 15000-20000
Rs. 20000-30000
16%
More than 30000
60%

Interpretation: Study suggested that 60% respondents prefer price

range of 20000-30000, 20% prefer price range of 10000-15000, 16%
prefer price range of 15000-20000, 4% prefer price range of >30000.

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10. Which outlet do you prefer buying XIAOMI mobile

9% 11%
2%

Mobile shop
Online & E-commerce
Malls & Hypermarkets
Brand Outlet

79%

Interpretation: Study suggested that 79% respondents will buy

XIAOMI mobiles via Online & E-commerce mode,11% from Mobile
shops,9% from Brand outlet & 1% from malls & Hypermarkets.

We can also see that respondents are showing more faith to Online & E-
commerce mode.

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11. Do you read Manuals before using XIAOMI (MI) mobile

28%

38%
Yes
No
May Be

34%

Interpretation: We found that 38% of respondents have read manuals

before using XIAOMI mobiles, 34% of respondents said No & 28% said
May be.

This shows that respondents used to read manuals before using XIAOMI
mobiles.

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12. How frequently do you buy a Smartphone

13%
3% Yearly
42% Twice in a year
2 Years
No idea
43%

Interpretation: Question was asked to know how frequently

respondents are buying smartphones and we found 42% will buy
smartphone in 2 years, 42% have No Idea, 13% yearly & 3% twice in a
year.

13. Which features do you think is XIAOMI is lacking in

20%

36%
Speed & Reliability
Technological Parameters
Reasonable Price
17%
Others

27%

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Interpretation: we found that 36% of respondents thinks XIAOMI

lacks in Speed & Reliability, 27% thinks XIAOMI lacks in
Technological Parameters, 20% thinks others, while 17% thinks it is
reasonable price.

14. Do you think the current marketing strategy of XIAOMI is

sufficient enough to compete with its fellow brands

26%

42% Yes
No
May Be

32%

Interpretation: Study suggested that 42% of respondents thinks that yes

XIAOMI is doing sufficient enough to compete with the fellow brands
while 32% of respondents thinks No XIAOMI is not doing sufficient
enough to compete with fellow brands.

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15. According to you, which brands has highly affected the sale of
XIAOMI

3%
12%
Realme
Samsung
23% Oneplus
62% Iphone

Interpretation: According to study 62% of respondents thinks that

Realme has adversely affected the sale of XIAOMI mobiles, while 23%
thinks that Samsung has affected sale of XIAOMI mobiles.

16. Are you aware of the new product launches of XIAOMI

15%

Yes
No
29% 56% May Be

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Interpretation: Study found that 56% of respondents are aware of the

new products that launched by the XIAOMI, 29% are not aware of the
products while 15% may be.
17. Does the publicity of a product effect your purchasing decision

18%

Yes
No
54%
May Be
28%

Interpretation: study suggested that 54% respondents are having effect

by the publicity of the products while 28% respondents have No effect.

18. Do you think XIAOMI will give tough competition to other

mobile brands in future

28%
Yes
No
60% May Be
13%

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Interpretation: We found that 60% respondents think XIAOMI will

give though competition to other mobile brands in future while 12% are
Not in favor.
Findings

54% of our respondents belong to age group of 21-25 years

considers XIAOMI as a genuine good feature phone while 22% between
age group of 15-20 years feels the same. Our study also found that 76%
users of XIAOMI are students means youth has an immense craze of
XIAOMI mobiles among whom 69% are having Bachelor’s degree
while 25% are having Master’s degree.

Our study also found that among respondents 65% are using
XIAOMI mobiles among which 52% people prefers XIAOMI because
of price whereas 43% people prefer XIAOMI because of its features.
Study also found that 60% people want XIAOMI mobiles between price
range of 20000-30000.

79% people uses Online & E-commerce mode to purchase

XIAOMI mobiles whereas 36% people has view that XIAOMI lacks in
speed & reliability. We also found that 42% people thinks market
strategy of XIAOMI is good. Realme gives tough competition to
XIAOMI mobiles.

We also found that 56% people are aware of new product launch
by XIAOMI whereas 60% people thinks XIAOMI will give tough
competition to other mobile brands in future.

Conclusion

 XIAOMI has positive perception among young people as 54% of

respondents are between the age of 21-25 years,22% between the

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age of 15-20 years. while XIAOMI has negative perception among

adults due to Chinese origin.

 People thinks XIAOMI will give tough competition to other

mobile brands in future.

 Most of our respondents are aware of the new products launched

by XIAOMI which means they are interested in buying XIAOMI
mobiles.

 Realme has adversely affected the sale of XIAOMI mobiles.

 People prefer Online & E-commerce mode for buying smartphone.

 XIAOMI has been preferred because of its low price.

Recommendation

This study suggestion for future research namely;

1. It would be more effective if manufacturers could improve each of

their products to meet the needs and desires of their customers.

2. To meet consumer needs, marketers must strengthen each of their

products.

3. improve Smartphone performance in terms of product attributes

such as feature, ease of use, reliability, longevity, style,
environmental friendliness, and satisfaction Since it is critical to
create positive product attributes in order to influence consumer
perceptions of Smartphones.

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4. Perceptual mapping is important for the next analyst. The findings

of this study could be used to conduct more advanced research on
Smartphones in order to advance the company.

References: -

1. www.mi.com/in/

2. Kotler, P., Keller. L.K. Marketing Management 15 th edition.

Pearson Education Limited.

3. Junistia Priscilla Sjamsoedin David Paul Elia Saerang. Analyzing

consumer perception on product attribute of smartphone (Oppo,
Xiaomi, Zenfone) in Manado.
https://ejournal.unsrat.ac.id/index.php/emba/article/viewFile/6470/59
97

4. Emerging Multinationals in Emerging Markets: Xiaomi

Experience in the Indian Smartphone Market Jae Hoon Hyun
http://www.eamsa.org/wp/wp-content/uploads/2016/10/2_fjtgj.pdf

DoMS, Rajiv Gandhi Institute of Petroleum Technology, Jais