Extraordinary Genius - Chapter 608
Chapter 608 – To be the market leader (Part 1 of 2)
Screw it. Even if history was changed and Feng Yu could nolonger predict the future, with his wealth now, he could still do whatever hewants. Furthermore, Russia had developed quickly, but it did not affectinternational affairs. Feng Yu decided to ignore all these and let nature takesits course.
“Manager Feng, Manager Feng? You do not agree with my plansfor the company?” Zhong Qingxian felt that his plans were well thought out, butwhy Feng Yu did not have any reactions?
“Oh, sorry. I was thinking about other things. You said thatyou want to expand the dairy and tea beverages products, and lower theproduction of Children’s health supplement drinks?”
Zhong Qingxian nodded. Although he was curious why Feng Yuwas in a daze just now, he did not ask him.
“You can decide on these matters. I will agree with you. Butthe Rising Sun Group had introduced canned tea beverages. Will Lehaha also dothe same?”
“Of course. But canned drinks are not as popular as plasticbottled drinks. Bottled drinks can still be kept if the customer could notfinish the drinks and does not need to afraid of it spilling. If it’s canneddrinks, once opened, it had to be finished. Furthermore, our tea beverages arenot carbonated. Their canned drinks should be copying our tea beverages andJianlibao. But I feel that they would not do well.”
Zhong Qingxian had belittled the Rising Sun Group, and FengYu does not like it. If the Raising Sun Group could develop, Lehaha will not beable to beat them easily. But luckily Zhong Qingxian had been monitoring themclosely. There should still be enough time for him to deal with the Rising SunGroup if they were developing rapidly.
“Have you considered the fruit and carbonated beverages Itold you previously?” Feng Yu asked.
“My men had conducted market research on this. Thecarbonated drinks market is matured. If we were to introduce our Lehaha brandof carbonated drinks, our sales should still do well. Although the fruit juicebeverage market still has room for growth, other companies had introduced suchbeverages before. Other than coconut juice, no other juices had done well.”
Coconut Tree brand of coconut water was one of the legendarybeverages in Feng Yu’s previous life. It was a canning factory converted into abeverage company. Feng Yu had forgotten about them. But now, this company wasalready developed. Natural coconut water. It was even served at the NationalBanquet last year. The company also own several patents.
Feng Yu had asked Zhong Qingxian to go and speak to them. Hewants to buy over or invest in the company before it grew too big.
But the leaders at Hainan firmly rejected them. Coconut Treebrand of coconut water was already exported to several countries in Asia. Theywill be targeting the European market this year. This company was profitableand would bring credits to the leaders there. They will never allow anyone toown a stake of the company.
You offered such a high price for a stake in our company?That means you are confident of our coconut water. If not, why are you willingto pay such high prices?
Since Lehaha could not buy over the company or own a stakein it, Feng Yu decided to stop this company from developing new products. Hewants to make sure that this company could only sell canned coconut water andnothing else. Lehaha will introduce all the other products produced by thiscompany in Feng Yu’s previous life before them. The products include different typesof fruit juices, Eight-treasure porridge, etc.
Eight-treasure porridge was one of Lehaha popular productsin Feng Yu’s previous life. Eight-treasure porridge was not easily produced.Although many people know the recipe, it was not easy to make them delicious incanned form.
Zhong Qingxian and his men had conducted experiments on thisEight-treasure porridge and felt that it can be done. But they still need toimprove the taste and storage life. They should concentrate on developing theirbeverages first.
Feng Yu did not object to this. But Feng Yu was worried thatif Lehaha did not enter the carbonated beverage market soon, the market wouldbe taken over by Pepsi and Coca-Cola. Pepsi and Coca-Cola sales in China hadbeen increasing.
Feng Yu remembered that in his previous life, there was afamous carbonated beverage called Fen Huang Coke, also known as ‘China’s ownCoke.’ When it was introduced, it focuses its sales in the villages around thecities. It was very effective and was very profitable at the start.
But after Coca-Cola and Pepsi joined hands to lower theprice of coke, increase the volume of their bottles and getting top celebritiesto endorse their products, Fen Huang Coke disappeared from the market.
The strategies used by Coca-Cola and Pepsi were straightforward.They only need to spend tons of money!
No matter if it was a price war, increasing the volume oftheir bottles or celebrity’s endorsement, the companies need to spend a lot ofmoney. There was no way for Fen Huang Coke to compete with these two MNC.
Lehaha could also afford to use this strategy. The currentLehaha’s worth was much higher than Feng Huang Coke at their peak. If it were aprice war, Lehaha would not be worried. In fact, Lehaha could start a price waranytime. Lehaha had better distribution channels, and their labor andtransportation cost were much lower than the two coke companies.
If a price war was really started by those two companies andthose two companies dare to sell their products below their cost, Feng Yu willsue them for trying to monopolize the market. This was China, Lehaha’s homeground. There was no way for Lehaha to lose the suit.
The first carbonated drink Zhong Qingxian wants to introducewas coke. In the past, Pepsi could succeed against Coca-Cola. Although it waspartly due to the Anti-trust laws, Pepsi had grown to be a successful company.
If Pepsi was possible, then there was no reason for Lehahato fail. Lehaha had asked his R&D department to look into the Pepsiformula. Zhong Qingxian does not need his coke to taste the same as Pepsi, butit must be as tasty as them.
Anyway, the patent protection for Coke was over. But no oneknew what their formula was. However, all their ingredients were written on thelabels. What was unknown was the proportion of the ingredients.
“Other than coke, have you considered others? For example,other fruits flavor carbonated drinks, like apples or grapes? I remembered thatthe most popular drink in China was orange juice.”
Feng Yu felt thatpeople will not remember Lehaha carbonated drinks if they only introduce Cokefavored. People will also think that they were trying to copy those twocompanies. Lehaha should introduce a carbonated beverage which Pepsi and Coca-Coladid not introduce in China. This will allow Lehaha to gain market share faster.
“Fruit-flavored carbonated water? Like those soft drinkssold by those small factories?” Zhong Qingxian was hesitating. Almost everyprovinces and city have their own factories selling this type of soft drinks.
“They are producing soft drinks. What we produce will not becalled soft drinks. We can call it cool refreshing water. Don’t forget that weare the top Chinese beverage brand in China. Even if it is a bottle of water,the value will be different if Lehaha is printed on it!” Feng Yu smiled.
It was the same as Chinese Gooseberry. Those that wereimported from other countries were called Kiwi fruit. Basically, both were thesame. The carbonated drinks sold by those small factories were called softdrinks. But it’s different if it was produced by Lehaha!
Zhong Qingxian nodded. “Manager Feng, are you asking me tointroduce this drink with our coke before 1st May, the summerseason?” This drink was named Cool Refreshing. It was most suitable to drink inthe hot summer.
“That’s what I am thinking. You all can sort out the rest ofthe details. I feel that fruit juice is a good option for us to explore. Also,our AD milk. Why can’t we introduce bigger bottles like the other drinks? Wecan introduce a wide variety of beverages. You can get your men to research onthis. Our target is to become China’s beverage market leader within the next 5years!”
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