Extraordinary Genius - Chapter 250 – Lehaha becomes Popular
“Manager Feng, you are back.” Wu Zhigang returned to the company and saw Feng Yu chatting with some staffs. He looks like he was in a good mood.
“Yes. How was your trip?” Feng Yu smiled and asked.
Wu Zhigang was now the Assistant General Manager of Tai Hua Trading, and he was still working very hard. He still needs to travel and visit clients, but he never has any complaints. This lets Feng Yu very satisfy.
Hmmm, Zhigang might be getting married next year. Maybe I will give him a set of home appliances for his new house. Feng Yu was never stingy to his staffs.
“Manager Feng, your idea was brilliant. Placing Lehaha advertisements near kindergartens and primary schools. The sales of Lehaha kept increasing.” Wu Zhigang excitedly said.
Since Feng Yu invested in Lehaha, Tai Hua Trading got the distributorship for the Northeast 3 provinces. Lehaha had advertised on CCTV last year, but due to their production issues, Lehaha did not enter these areas.
How to increase the sales of Lehaha? Advertising on CCTV was not enough. After some consideration, Feng Yu asked his men to inform the local dealers to advertise near kindergartens and primary schools. When the parents send their kids to school, they will notice the advertisements.
Lehaha’s target audience were the parents, and their primary product was Children’s oral health supplement. The advertising slogan also states “Drink Lehaha, dinner would be better!”
These parents like to compare their children with others about their results, height, etc. Kids refusing to eat proper meals had always been an issue with the parents.
Was there an issue with kids not wanting to eat in the past? If the kids don’t want to eat, then let them starve! Now, most families have better living conditions, and parents would never allow their children to starve.
These health supplements were targeting kids that don’t like to eat proper meals, and once it entered the market, most parents rushed to get them. Especially when they heard that some one’s kids were consuming this health supplements.
Coupled with the advertisements on CCTV, Lehaha quickly became popular in the 3 northeast provinces.
Wu Zhigang had gone to Shen City to check on Lehaha’s sales.
Feng Yu had not thought of advertising near kindergartens and primary schools by himself. In fact, it was Zhong Qingxian that had thought of this idea. In his past life, whenever Lehaha introduces a new product, he will use this type of advertising tactics.
Nescafe had also used the same strategy and slowly became China’s most famous coffee brand. Tingyi (Cayman Islands) Holding Corporation also advertised their beverages the same way. This type of marketing strategy was low cost and relies on word of mouth.
Feng Yu not only let Tai Hua Trading uses this strategy, but he also called Zhong Qingxian to notify the rest of the provinces to use this strategy. Feng Yu was the shareholder of Lehaha, and if Lehaha earns money, that means he would also get more profits.
Zhong Qingxian was skeptical of this type of advertising, but after implementing it, he discovered that it was very effective. As he had increased the productions, he had lots of products stored in his warehouses, and he was worried that these stocks will be left to rot. But after implementing this strategy, the demand quickly exceeds the supply again. He was grateful to Feng Yu for sharing this with him!
Feng Yu accepted Zhong Qingxian praises happily. But he felt that the compliments were lackluster. He was thinking about starting a “Praise Manager Feng” training course for all the companies he was involved with……
The company had made profits and was no longer in a tight financial situation. Zhong Qingxian repaid all the workers’ wages and even gave them some rewards. As a result, all the workers were very motivated.
From this speed, Lehaha’s recent expansion will soon be insufficient to meet the market demands. Zhong Qingxian and the others decided to expand their production facilities once more. They want to capture the children’s health supplement market and become the market leader.
Feng Yu did not object to this. Although it was still early to expand, it was still necessary. Feng Yu even wished that Lehaha expand quickly and have a shortage of funds. This would let him have an excuse to get more shares.
Feng Yu tried to persuade Zhong Qingxian to set up a new factory near to Beijing. This would capture the northern market quickly. It would be best if a factory were set up for every 2 to 3 provinces. This way, Lehaha can monopolize the market!
But maybe Feng Yu had sounded too eager, and Zhong Qingxian decided to postpone the expansion plans until next year.
With Lehaha’s current financial situation, it was reasonable for expansion. However, more capital was needed to set up new factories.
Zhong Qingxian could not afford to inject more capital into the company, and he was to expand the company now, Feng Yu would increase his stake in the company. This was something that Zhong Qingxian does not want to see.
He was the founder of Lehaha, and now Feng Yu owns a 40% stake of the company. Even though Zhong Qingxian was still the general manager and decision maker of the company, but who knows what would happen if Feng Yu got more than 50% shares.
Zhong Qingxian had asked around about Feng Yu. He learned that Feng Yu was only a small shareholder at the Machinery company initially but now, he was the major shareholder of the company and he had conflicts with the local government because of this.
With the Machinery Company as an example, Zhong Qingxian was cautious of Feng Yu. Zhong Qingxian and his two other partners had agreed that they would not sell the company’s shares no matter what. He was afraid that his partners would sell their shares to Feng Yu.
Actually, Feng Yu had no intention to take away Zhong Qingxian’s authority. In his previous life, Zhong Qingxian was the one who had lead Lehaha to become China’s most popular beverage company. His ability was second to none.
Feng Yu also have no time to take care of so many businesses. His favorite was still the financial industry. This was his expertise. All he needs to do was to make use of some opportunities, and he would let his assets increase by several folds.
Even though Feng Yu could still let Zhong Qianxian manage Lehaha after he got the controlling stake of the company, but it would be different. Zhong Qingxian might lose his enthusiasm. Maybe he would even leave Lehaha and set up a new beverage brand.
Unless Zhong Qingxian request, Feng Yu had no intentions to continue to inject funds into Lehaha. His target now was to own stakes in those companies that will be successful in the future. For instances, if he held a 20% stake in each of the 10 companies that will be successful in the future, he would earn much more than others. The best part was that he does not need to worry about or manage the business.
Of course, if other people want to sell him more shares, Feng Yu would gladly accept it. For example, the current Lehaha, the future QQ, Baidu, etc.
Feng Yu also understand why Zhong Qingxian wanted to postpone his plans. Lehaha’s profits for this year was increasing, and the total sales might be over 20 million RMB. This was a year earlier than what was supposed to be.
Lehaha would be able to clear its debt by the end of the year and still have sufficient funds left. Although the remaining funds might not be adequate to set up new factories, the company could get loans from the banks. This way, Zhong Qingxian’s share will not be diluted, and he would still be in control of the company.
Feng Yu sighed. Zhong Qqingxian still does not understand him well. Even if Feng Yu were to manage Lehaha himself, he would not perform better than Zhoong Qingxian.
Feng Yu still remembered some of Lehaha’s failed products and he intends to stop Zhong Qingxian from producing those products. In his previous life, Lehaha would perform better if not for those failed products like Coffee coke and tea beverages!
This was not a bad thing for Feng Yu. Feng Yu could concentrate his focus on other things.