Extraordinary Genius
Chapter 835 - Fire in the backyard
How do you make two beverage manufacturinggiants join hands? Only when they have a strong common compet.i.tor thatthreatened their positions. The enemy of my enemy is my friend!
Coca-Cola"s North America Sales Director,Bren, and Pepsi"s North America Sales Director, Okafor, were sitting togethertoday. If the reporters saw them, there might be reporters that both colacompanies are merging.
"I received news that the contracts signedbetween the Chinese beverages and the supermarket chains are the same as us!"
Bren was frustrated. He does not understandwhat the supermarket chains were thinking. How can those Chinese beveragescompete with them? Why are the supermarket chains giving Chinese beveragecompanies such as lucrative terms?
"Based on the data I received, thoseChinese beverages" sales had hit 8% of non-alcoholic beverages in thesupermarkets!" Okafor said. He did not expect those Chinese beverages to riseup so fast.
8% might not be a lot compared to them, b.u.t.that is only the first month!
Both cola companies own 85% of the marketshare and it had dropped to 81%. It is only one month since the Chinesebeverages entered the supermarket, and their market share dropped by 4%.Although this is only the figures from the supermarket chains, supermarketsales make up a significant proportion of their overall sales.
They also discover that other thansupermarkets, some smaller retail shops also start selling Chinese beverages,and this will have an impact on their profits!
The cake is only so big, and if someonetook a slice, they would receive smaller slices. Both beverage giants werestill planning to join hands in China to compete with Chinese beverages. Butbefore they can do anything, the Chinese drinks had entered their domestic markets!
"Have you all found out the reason forthose Chinese beverages to grow rapidly?" Bren asked.
Both sales directors had tried thoseChinese beverages and felt they taste nothing special compared to theirproducts. Of course, there are some exceptional whom they can learn from.
But even if some of those beverages tastegood, their sales should not increase so fast! Just because of that lucky drawpromotion? Just because of the Another Can promotion? Or is it because of thegrand prize?
"Other than their lucky draw promotion, Icannot think of any other reason. Errr… there seems to be another reason. Somereporters saw Bill Gates buying China"s Qili in the supermarket. There arerumors that Microsoft software engineers love to drink Qili. This drink can boosttheir energy and is more effective than coffee. These were reported in thepapers."
Okafor did not believe these reports atfirst, but there were pictures of Bill Gates placing a few cans of Qili intohis shopping cart in the supermarket. When the reporters interviewed Microsoft DeputyCEO, Ballmer, there were a few cans of Qili on his desk.
This Chinese energy drink is said to reducefatigue and increase energy levels. Those people who work late or overnightneeds to drink such beverages.
These were all Feng Yu"s tricks. Herecommended Chinese beverages, especially Qili, to Microsoft and "generously"sponsored some for the engineers to try. Bill Gates had gone to the supermarketto buy Qili because of Feng Yu"s recommendations. But at that time, Feng Yustill have not sponsor Qili to Microsoft yet. The reporters could get thepicture of Bill Gates buying Chinese beverages was also arranged by Feng Yu.
Bill Gates was tricked into becoming theendorser of Qili.
Microsoft had also become the endorser ofthis product.
The newspaper reports this beverage isanother magical beverage like Jianlibao. For software engineers, Qili is likeJianlibao to sportsmen. Both had magical effects.
When Feng Yu gave Qili to Microsoftengineers, Paul Alan was full of disdain for him. A Microsoft director sellingsoft drinks? He felt this was a disgrace.
The proud Paul Allen had looked down onCoca-Cola, Pepsi, and other beverage companies. He felt only technology companieslike Microsoft is the future of mankind
Microsoft"s profits and share prices hadbeen rising, and it enforced this belief.
In Paul Allen"s eyes, if the CEO of Pepsijoin Microsoft, he can only be one of the managers in the middle management.But Feng Yu, one of the directors of Microsoft, is selling soft drinks! This isa disgrace to Microsoft! He still wants to use his drinks to bribe Microsoftengineers? What a joke!
But Paul Allen had never thought why Pepsiand Coca-Cola"s profits were so high. No matter how fast technology companiesgrow, people still need to eat and drink. There are definitely more peoplebuying Coca-Cola than PCs!
Of course, Paul Allen also did not knowFeng Yu was not bribing the engineers by giving them his beverages. He is onlymaking use of the engineers to market his products.
Feng Yu was making use of Microsoft toincrease Qili"s brand awareness!
"I heard the person behind these ChineseBeverages is that Chinese Director of Microsoft." Bren had heard about this butdid not believe it. Software and beverages were totally different industries!
"It is that mysterious Chinese tyc.o.o.n. Ifnot, why will there be news of Microsoft engineers drinking Chinese beverages?Also, their lucky draw prizes are too good. Other than electronic products,they are giving out cars. Now, a total of 8 cars are given out, and the papershave been reporting about this."
"What are you all going to do?" Bren lookedat Okafor. By right, Coca-Cola and Pepsi do not need to have promotions ontheir products as they have a significant customer base.
Even if both beverage giants were to starta sales promotion, they would not copy those Chinese beverages. At most, theywill give out one free drink and will not give out electronic devices and cars.
Both companies were waiting for each otherto start some sales promotions to compete with Chinese beverages. Actually,both companies can lower their retail prices to force those Chinese beveragesout of the US. But this is considered monopolizing the market and they might befine by the authorities. It will also be bad for their reputation and might bebarred from entering China.
Both men discussed and concluded…… Wait!They will wait for the craze over the Chinese beverage"s lucky draw to be over.These Chinese beverage companies were not strong and cannot afford to do salespromotions for extended periods. Also, both cola companies will be investing asignificant sum on advertising during the Olympic Games.
But they received a piece of bad news. TheChinese beverages had entered many European countries" markets through thesupermarket chains there.
Both beverage giants start to feel thepressure from Chinese beverages. That Microsoft Director should not have anyinfluence in Europe and yet, he can bring his Chinese drinks into thoseEuropean supermarket chains. This is too scary.
Both cola companies knew they must retaliate now!