Chapter 604: Being Pragmatic Is Important

Usually when a new product is sold, it needs a very eye-catching advertisement, so that it can sell well.

For example, for a mobile phone in later generations, the overwhelming advertisements always make them sell well, at least in the initial stage.

But advertising is not just about simply wanting to sell products, there is also an element of product competitiveness.

For example, Coca-Cola, Apple, Google, Nike, Mercedes-Benz, etc., they have risen from simply selling products to building brand culture, allowing people to shift their attention from their products to themselves, thus greatly improving the brand. value.

The launch of Transformers toys is naturally advertised, and it is because of the first reason, to advertise better.

If you want to build brand culture, you can’t stand it at all now. All of the above-mentioned companies have developed to the extreme of the industry before slowly transforming into the second type of advertising.

Although there are two best advertisements in comic books and cartoons, this does not mean that there is no need for advertisements.

The so-called three major media, TV media, print media and paper media, all need to place advertisements.

And the more prosperous the place, the more intensive the advertisements will be placed.

In this regard, Yin Jun and Le Yiling have no experience, so they can only hand over the work to the most experienced people - those famous advertising companies.

Any advertising company that can do well must have its own media resources.

Even better, it can even give you a guarantee that the advertisement can be placed on which TV station, which time period and page of which newspaper.

Such a guaranteed company, although the charges are a bit more expensive, but the effect is the best.

At least it can achieve the kind of advertising effect you want.

But whether advertising can be converted into purchasing power in the end is another matter.

Before Yin Jun went to the mainland, Le Yiling had been discussing this matter.

Yin Jun discussed with her that the meal should be eaten bite by bite, and the road should be walked step by step.

With the current strength of the Kirin Group, it is no problem to distribute goods all over the world in one go. For a place with an underdeveloped economy, it is enough to distribute less goods.

However, Kirin Group does not have the ability to spread advertisements all over the world, especially the ability to continue to burn money in global marketing.

Advertising is very expensive.

You see Nike appearing in various media all day and night, it is very lively, right?

As a result, more than 60% of the family's expenses are spent on various endorsements and advertisements. The one-to-two billion dollars a year in advertising endorsements and other expenses has truly achieved making money by relying on the brand instead of relying on real materials.

The same goes for Melatonin, which has a crazy expenditure ratio, and it is estimated that 80% of it has to be spent on crazy advertising.

Yin Jun wants the Transformers toy advertisement to be effective, not to mention billions a year, but at least a billion dollars is normal.

If you do the math, there are dozens of countries in Europe, dozens of countries in the Americas, Japan, South Korea, Thailand, Australia, New Zealand in Asia, etc., and there are at least 50 countries worth advertising.

Television media, paper media, and print media are piled up city by city, at least on the scale of 1,000 cities.

If you do the math, do you think $1 billion is a lot?

Certainly not many!

Yin Jun's total net worth now does not add up to 1 billion US dollars.

Not to mention that Yin Jun has no money, even if Yin Jun has money, it is impossible for Sister Le to agree to such a crazy marketing plan.

Being stingy by nature, she finally decided to launch the first batch of advertisements in the ten most developed countries, including the United States, the United Kingdom, France, West Germany, and Japan. The funds came out with 100 million U.S. dollars through heartache, which is barely enough. a beginning.

The average advertising fee of US$10 million in a country is really not much.

However, such advertising costs are not small.

Especially considering the influence of "Transformers" in the world now, as well as more advertising orders in the future, after receiving the news, many first-class advertising companies sent personnel to discuss with Le Yiling.

Finally, on the day of Wei Xiaofan's wedding, he finally settled on 5 advertising companies to act as agents for the Transformers toy advertising business, including advertising production and advertising placement.

However, the US$100 million advertising fee this time is simply not enough to last for one year, it is only enough for half a year, and this is because of the big discounts given by the five advertising companies.

Calculated according to the normal price, even if the third-tier stars are invited, the advertising fee is not so small, let alone the advertisements they give, at least famous stars in the whole country will appear in the advertisements.

Businessmen are naturally profit-seeking.

Given such a high discount, their request is that if Transformers toys are to be advertised in these countries in the future, then they will have the priority.

On this point, Le Yiling agreed.

As long as the toy sells well, she will be willing to pay the advertising fee even if she is reluctant.

The production of an advertisement, not to mention TV media advertisements, but print media advertisements and print media advertisements, requires a lot of time.

If it is more, it will take one or two months, and if it is less, it will take ten days and a half months.

While waiting for the production and broadcast of the advertisement, Le Yiling also sent batches of toys to the warehouses of the dealers one by one.

Yin Jun wants to learn from Tao Ganma, who he admires. You get what you pay for. I will sell things to you, and you will only buy the goods if you pay. This way, I can make money with peace of mind and will not worry about being feared.

But as soon as this idea came out, Le Yiling scolded him bloody.

I have endured your kid doing this on the construction site before, because Xiangjiang is our home field, and you actively paid for the goods. Given our abundant funds, this is understandable.

But now you are asking foreign dealers to help us sell things. This Transformers toy has not passed the test of the market, so you dare to ask them to pay for the goods before picking up the goods. Are you crazy?

Get out, get out, don't get involved here.

After such a scolding, Le Yiling just delivered the goods to the dealer who signed the contract.

The dealers who have been contacted a long time ago, according to the contract, first pay 20% of the advance payment, and when the goods arrive at them, they will pay 30% of the payment, and the remaining 50% will be paid after the toys are sold. , billed every three months.

This is an internationally accepted method of cooperation, and it is also the most popular practice for ordinary cooperation.

In Yin Jun’s view, it’s purely dealers who are squeezing Kirin Toys, but as Sister Le said, no matter how successful you are in the comics and animation industry, you still have no precedent for success in the toy industry. Why do people give you any favorable conditions?

no way.

When not strong, it can only be forbearance.

It would be nice to wait until Transformers toys sell well all over the world before negotiating a new contract.

Fortunately, in terms of the cost of Transformers toys, Kirin Toys has very good control.

For example, the Transformers directly made of plastic materials, because there is no body joint structure, so there is no need to pay Hasbro the patent fee. The smallest size is priced at US$1, but the actual cost is only 0.5 Hong Kong dollars. Including the transportation fee, it is only 13% of the cost, and the gross profit margin is as high as 87%, which is very, very high!

But this is not the highest. For example, there is a limited number of 1,000 Optimus Prime large-scale aluminum alloy transformable robots. It is about 100 centimeters high. The cost price has reached 120 US dollars, but the selling price is as high as 6,000 US dollars. , Excluding various other expenses such as transportation and warehousing, the gross profit margin is still as high as 97%! !

The production cost of Transformers produced by Qilin Toy Factory is not higher than 15% of the selling price.

Even with advertising, taxes, shipping, dealer discounts, etc., the gross profit margin is never less than 30%.

Don't think that 30% gross profit margin is not high.

Do you guys know what Wal-Mart's gross profit margin is?

3%-5%!

With such a small profit margin, he became the world's largest supermarket retail group, and his family of five became the world's top 20 super rich!

This profit margin is actually much higher than that of Apple, which will become popular in the future, but the unit price of the items sold by Apple is too high, and the audience is much wider than that of Transformers toys, so they It is absolutely impossible for Kirin Toys to become the world's largest company by market capitalization.

However, Yin Jun never underestimated himself.

The profit of toys has always been one of the highest profits among all commodities, and it belongs to the type of big dog.

The cosmetics industry is the only one that can compare profits with it and is not afraid of being prosperous for more than ten years like Nokia and Motorola.

As long as there are people, toys can be sold, cosmetics can be sold, which are almost the same necessities of life as food, clothing and housing.

Men may be reluctant to spend money on themselves, and even women may not be willing to buy cosmetics, but they are definitely willing to buy all kinds of toys for their children. If you don’t buy them, grandparents, grandparents, grandparents, uncles and aunts will still buy them.

Being able to firmly grasp the super big IP of "Transformers", toys can provide Yin Jun with a net profit of 100-200 million U.S. dollars every year. It is a great supplement to invest this money in the entertainment industry.

Then 20 years later, or within 20 years, with the strong support of Yin Jun, various IMAX technologies, 3D technologies, computer capture technologies, special effects computer production technologies, etc., have undergone strong development in all aspects, " After the live-action version of "Transformers" is released, not only will the box office explode, but toys will once again usher in a peak.

A brand can bring more than 10 billion US dollars of net profit to itself, which can already be compared to a first-class company. What else is Yin Jun not satisfied with?