Extraordinary Genius - Chapter 634
Chapter 634 – Separating from the rest
Thomas came to China again to discuss with Feng Yu on whenthey should introduce the Super VCD players.
Although they had agreed that Philips will not introduce theordinary VCD players, but the Super VCD player technologies were ready. Thomasfelt that it was a waste of time to continue waiting.
“Mr. Feng, we had agreed that we will introduce the Super VCDplayers in September, but the VCD player market is on the rise now, and thetraditional VHS players are history. Should we bring forward the date for theSuper VCD?” Thomas asked.
Feng Yu nodded: “Of course. There are no problems withtechnologies. We can introduce the first generation this year and thesecond-generation next year. But I suggest we should have differences in ourexterior designs, like the position of the buttons and colors. But the remotecontrol should be the same.”
“I understand and know that you Chinese likes red color. Wewill give up on red color and use other colors. We will use silver, grey andblack colors mainly and two colors in a design. We can introduce 3 differentmodels with different colors.” Thomas had already thought of the designs andchose the popular colors usually used for mainstream home appliances.
“Okay. Then we will give up a grey color and will use othercolors to match it. We will use the same colors for the amplifier as the SuperVCD players? Is it fine with you?”
The amplifier can also be called loudspeakers. It was one ofthe fundamental components of a sound system. It will amplify the sound to abetter effect like a home cinema and karaoke.
The Philips amplifier is called an AV amplifier. There were4 sound channels and surround sound. When people were watching movies, thesurround sound will be more realistic and feels like watching a movie in thecinema. This feature was mainly designed to target consumers who like to watchmovies at home.
AIWA’s amplifier was the HI-FI amplifier. Hi-Fi or Highfidelity have only two sound channels and was most suitable to be used formusic. This function main customer segment were the KTV, nightclubs, andlounges.
This technology was not complicated. Philips and AIWA hadbeen producing speakers, and both companies had exchanged their technologiesand upgraded their technology.
“Then what free gifts should we give out with our Super VCDplayers? Other than a music disc, should we still give out other things?”Thomas was asking for advice. Wind and Rain Electronics was better than them atpromotions.
“Two microphones, a cleaning solution for cleaning the discsand a VCD storage box.”
“Mr. Feng, I know the microphones are for singing, and thecleaning solution is to clean the disc. Giving all these to our customers arenormal. But what’s the use of giving out a VCD storage box?” Thomas waspuzzled. It did not make sense to give out the storage box.
Feng Yu smiled and asked: “Mr. Thomas if you have a big TVcabinet at home and there is only a small TV on it. Won’t you feeluncomfortable? Will you want to buy a bigger TV to place in your TV cabinet?”
Thomas replied: “I will. But a lot of households can onlyafford smaller TVs.”
Feng Yu snapped his fingers. “That’s right. They can onlyafford smaller TVs. Although they wish to buy bigger TVs, they will not bear tospend the money. But the discs are different. A disc cost only 2 to 3 USD, andthe more expensive ones cost 5 USD. Don’t you think those who bought the VCDplayers will not want to buy more discs when they see an empty VCD storagebox?”
Thomas’s eyes brightened up and said excitedly. “Mr. Feng,you are a genius! That’s right! Many people might not be willing to spend moneyto get a new TV, but they can afford to buy discs to fill up the empty storagebox. Even kids can afford. If there is only a disc in the storage box, mostpeople will feel uncomfortable and will buy more discs to fill it up. We aretwo of the biggest supplier of original VCDs in the world. There is a highchance of them buying our discs.”
In Feng Yu’s previous life, he had experienced this. Hebought a VCD player, and a disc storage box came with it as a free gift. Healso felt uncomfortable when he saw one disc in the box. He also wants to fillup the box with discs. He can put the box aside, but he felt it was a waste.VCD storage box should be placed next to the VCD player.
The old TV cabinet was really a cabinet, and there weredrawers at the bottom. But the newer TV cabinets were designed differently. Therewere 2 to 3 shelves and were used to place the VCD players or speakers. Thedrawer is at the bottom under the shelves, and it is for storing the discs orcontrollers.
Some of the TV cabinets have a plastic tray attached forstoring discs. Those who own a VCD player will not get used to seeing the traybeing empty. They will buy more discs to fill it up.
This disc storage box was designed for those who did nothave a TV cabinet. After one box was filled, most people will buy a second box.This was to entice the consumers to spend more.
“Mr. Thomas, our biggest competitor in the disc market, isSony. Our main market is in Asia, and your market is in Europe. We willsurround Sony in the US market.”
“Ok. We must control the VCD market together!” Thomasnodded.
“How much is Philips’s retail price for the Super VCDplayer?” Feng Yu asked.
“400 USD? Will it be too high?” Thomas asked. The productioncost of the Super VCD player was slightly higher than ordinary VCD player. Thecost of the Super VCD player was about 100 USD.
The retail prices of VCD players currently were about 300USD, and Thomas was worried that he had priced the Super VCD players too high.
After he finished, he saw Feng Yu shook his head.
“How can you price it at 400 USD? I think it should bepriced at about 500 USD!” Feng Yu replied.
Ah? The price was not too high? Feng Yu felt it was pricedtoo low? Thomas was confused. Why Feng Yu wanted to set the retail price sohigh? Was it to stimulate the ordinary VCD player sales? But Philips was notselling VCD players.
“Mr. Thomas, are you thinking that 500 USD is too high?Don’t worry. This is because our Super VCD features are much better than theordinary VCD players. Also, the discs we are going to introduce will all biggerstorage discs. Those normal VCD players might not be able to read them.”
“What I wanted is to create two tiers for VCD players, justlike black and white TV and color TV. Color TV is priced more than double blackand white TV, but many people still prefer to buy a color TV. The Super VCDplayer is considered the higher tier product in the VCD players. I will lowerthe prices of normal VCD players further to show the difference.” Feng Yuexplained.
“You are going to lower the retail prices for the normal VCDplayers further?”
“The prices of normal VCD players will be lowered to about200 USD. This way, the other VCD player brands will be beaten by us. They hadopened up the market for us, but they are not allowed to take a bite of thiscake!” Feng Yu smiled.
“Then when will we introduce the Super VCD player?”
“August 1st. It will be launch everywhere at thesame time!”
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