Extraordinary Genius
Chapter 854 - Aggressive advertising
"Drink Qili, increase your stamina like achamp! Hong Guan Qili! Designed for athletes!"
"Jianlibao increases your energy!"
"Refreshing! The champion"s choice!"
"Lehaha Tea beverage. Quench your thirst!"
"Jianlibao"s Tea beverage. Let"s createmiracles together!"
……
The advertis.e.m.e.nts for Chinese beveragesappeared on TV, newspapers, billboards, etc. in Europe, the US, Africa, Asiaand many other countries. The number of advertis.e.m.e.nts had surprised the twobeverage giants.
How much will the advertis.e.m.e.nt fee cost?Chinese beverages have to sell how many bottles or cans to recover this cost?They even advertise in Africa? How many people in Africa can afford to drinkthese beverages?"
Yes. This advertising campaign cost morethan 100 million USD and will last for 1 year. Lehaha, Jianlibao, and othercompanies in the alliance will not make profits from the overseas market forthe next two years.
Jianlibao"s situation is slightly better asit has some brand awareness in the US and Southeast Asia. But Lehaha is anewcomer to the overseas market. Although Feng Yu had successfully placeLehaha"s products in the supermarkets, they were still making losses at thattime.
At that time, the profits of these twocompanies were not more than 1 million USD, and the money invested in marketingwas more than the profits. As for Hui Yuen, Le Bashi, Coconut Tree, etc. wereall in the red.
But the sales of Chinese beverages wereclimbing, and everyone believes next year will be better as their brandawareness will be higher and will have a group of loyal customers.
At this time, all the companies were notoptimistic, and they felt the overseas" profits will not exceed 20 million USD.
But now, Feng Yu invested 100 million USD inadvertising for his two companies suddenly, and the heads of both companiesstill agreed to it.
Each company will have to bear 50 millionUSD and this is an astronomical amount for an ordinary company. But the topmanagement of both companies was still smiling.
The bottling factories acquired by Feng Yuand Fu Guangzeng had started operations and is currently producing for Lehahaand Jianlibao. These factories charge a basic fee and a percentage of theprofits. That means if these two companies do not have profits, the factorieswill only receive the basic fee.
Feng Yu and Fu Guangzheng are not fools andafter a.n.a.lyzing the market, they found that the miraculous win of the Nigerianteam will help push sales if there is enough advertising.
The beverage is not a necessity, and oncethe consumers love a particular brand of drink, they seldom change to otherbrands.
For example, if someone is used to drinkingCoca-Cola, they will not drink Pepsi, despite both Colas taste quite similar.
The most important thing right now is tolet the consumers try and build up a customer base. After the consumers got usedto their products, the Chinese beverages will then increase its market share.
Jianlibao and Lehaha are not on the top 10beverage brands in the world currently, but after a year of aggressivemarketing, they should be in the top 5.
Once consumers got uses to a beverage, theywill stick to the brand they are familiar with when they want to buy a bottleof drink at the stores.
What Feng Yu wants now is to increase thebrand awareness of these two companies" beverages and get the market share.Once they got the market share, their sales will increase and will recovertheir investments.
It"s only 100 million USD, and if bothcompanies" drinks manage to increase their market share to 1%, they willrecover the advertis.e.m.e.nt fees in the future.
But they will definitely not see anyreturns this or next year. But the profits will be in by the third year!
Beverages are not some hi-tech products,and the two beverage giants own more than 50% of the global market share. IfFeng Yu stick to traditional sales strategies, it will be nearly impossible forhim to increase his companies" brand awareness and sales.
This is an extreme strategy, but it is useful.Other companies will not use this as this strategy need good brand amba.s.sadors.
The success of an advertis.e.m.e.nt depends alot on the spokesperson and brand slogan. Increasing the number of ads alonemight not be successful.
……
"What did you say? The whole Nigerianfootball team, including the coach, had signed contracts with the ChineseBeverage? What are you all thinking when I asked you all to pick some athletes...o...b.. our spokesmen? Why did you all choose these losers?" Cruise roared.
His subordinates kept quiet and grumbled intheir hearts. You are the one who wanted these players, and who would expectthem to lose this championship?
Even the lottery companies did not expectNigeria to win. Many of them suffered heavy losses as someone placed big betson Nigeria, winning the gold medal!
Even those professional companies did notexpect Nigeria"s win, let alone us.
"We can advertise using those players"other credentials. For example, their result in Euro."
"This year is the Olympic Games, and nomatter how to market, they are still one of the players in the games! They onlyneed to advertise their spokesmen as Olympic Champions and they will outshineus! Don"t focus on our football players and use the gold medalists from othersports!"
"Mr. Cruise, I need to report anothermatter to you. Those Chinese beverages had increased their advertis.e.m.e.nts usingthe Olympic Games Champions. I heard some major supermarkets increased theirorders, and many ordinary stores also started selling their products!"
Cruise was shocked. The Chinese beverages"sales had increased because of the supermarkets, and if their products startappearing in retail stores, that means most consumers had accepted them.
But how is this possible? Those beverageshad only entered the Western market not long ago. How can they open the retailstores? Even if the advertis.e.m.e.nts are effective, the results will not be shownso fast, as the aggressive advertising campaign had just started.
"They had contacted those small retailersin the past and still have attractive promotions like lucky draws. Now, theirlucky draw prizes include the Nigerian Football team"s posters, autographs,etc. and many football fans are willing to buy their products to try to winthese prizes."
"How come I am not aware they had contactedthose retailers? What the h.e.l.l are you all doing?! Get lost! Get out of mysight!"
After Cruise calmed down, he picks up the phone. It seems like he has to join forces with Coca-Cola again!