Chapter 632: Promotion Part 1

At this time, various VCD brands have flooded all over the world, and the market for traditional VCRs has shrunk further. All manufacturers are losing money, and some big brands have stopped producing traditional VCRs because They have also obtained the patent authorization of vcd.

As for those small companies, they declared bankruptcy one by one, because even if they sold at a loss, few people are willing to buy them now. Just like mobile phones are already popular, who will buy a pager again?

And when these big companies were still negotiating with each other to unify the retail price to ensure their own profits, they did not expect that Fengyu Electronics made a decision that they thought was insane!

Wind and rain vcd big promotion!

VCD was invented by Fengyu Electronics, and the initial price was also set by Fengyu Electronics. Other vcd manufacturers also obtained patent authorization from Fengyu Electronics, but when other brands of vcds were sold at a reduced price, Fengyu Electronics' vcds still maintained a price of more than 3,000 yuan.

At that time, Sony and other companies were still reading jokes. Do you think Fengyu Electronics is a big brand? Is your brand value as high as our Sony? If you want to use the added value of the brand to increase profits, you are doomed to fail.

And the facts also proved this point, the sales of wind and rain vcds have been declining steadily. When Norio Oga heard the news, he was so happy that he died.

Fengyu brand, Aihua brand or Aiwa brand, do you think you can sell the vcd at the highest price because you produced it first? Do you regret it now? Your high price is destined to make you fail.

But now, Fengyu vcd suddenly announced that it would cut the price and make a big promotion, and the intensity was so great! The retail price of each vcd has been reduced from more than 3,000 yuan to 1999 yuan! This is several hundred yuan cheaper than other companies' selling price of more than two thousand yuan.

At the same time, Aihua brand vcds and aiwa brand vcds all announced big price reduction promotions. The promotional strength is exactly the same as that of Fengfengfeng!

Now other brands are dumbfounded. After doing this, consumers will definitely not buy their vcds again. After all, those three brands are the most experienced brands of vcd!

This year, r suddenly depreciated, causing the exchange rate against various foreign currencies to plummet. Last year, the exchange rate of r to the US dollar was still hovering around 5.8:1. Now it has become 8.2:1, that is to say, the patent fee of fifty dollars is equivalent to more than four hundred r!

The price gap between Fengyu brand vcd and other brands of vcd is exactly about fifty dollars, which makes other companies hate it.

Fengyu Electronics' move is too stupid,

If you lower the price, if we lower the price accordingly, then our actual selling price will only be about two hundred dollars, excluding the cost of more than one hundred dollars. What else do we earn? Isn't the big head earned by Fengyu Electronics?

The most hateful thing is that if Fengyu Electronics had lowered the price when they licensed their patents, then they would not be so passive, but they saw that the sales were good, and they all expanded their scale.

But the profit of each unit dropped by fifty dollars at once, which was a huge loss for them. It doesn't matter if it hasn't expanded in scale, but it has expanded in scale. The profit has also dropped a lot, so how can people play with it?

The reason why Feng Yu has to wait is that the price has not been reduced, even if those brands expand their scale. Good to wear them down.

Feng Yu is very clear about the cost of this vcd. The cost of Fengyu Electronics was more than 1,000 yuan before, but with the expansion of scale, more skilled workers, and higher equipment efficiency, the cost has been reduced to more than 600 yuan. In other words, Feng Yu's profit is still ahead of other companies, because the cost of other companies is more than 1,000 yuan.

Those companies have just expanded in size, their workers are not proficient, and Fengfeng Electronics has not sold them some core technologies, so their costs cannot be reduced for the time being.

Originally, these were nothing. They cost more than 1,000 yuan, but they sold them for more than 2,000 yuan, and there was still a profit. But after excluding tariffs, transportation, sales and other costs, their profits are not high. At least in the Chinese market, the profit of one of their machines is only about fifty dollars.

Such a price cut by Feng Yu made it impossible for those foreign brands to continue their business. Now there are two ways. The first one is to produce in the mainland of China, which can avoid some tariffs and transportation costs, but the cost of investing in building a new factory is not small. The second way is to withdraw from the Chinese market and consolidate their base camp.

Most of the foreign brands have chosen to withdraw from the Chinese market, and some areas where AIWA has factories overseas have also begun to withdraw slowly. Who told those factories to also produce vcds of three brands such as Fengyu?

But they found that in this way, didn't they directly give up some markets in Asia, some markets in Europe and most markets in America?

How can this work! They have just developed the market, and it seems that the harvest season is coming. If they give in now, isn't it all a waste of work ahead?

So they decided to only withdraw from the Chinese market, and continue to compete in other markets. In those markets, their factories are bigger than AIWA's, are they afraid they won't be able to compete?

The most important thing is that they can't withdraw, once they withdraw, they will completely lose the opportunity to share the profits of the vcd industry and even the future dvd industry.

What to do, they also lowered the price to the same standard as the wind and rain vcd. Anyway, even if this is the case, they still have profits, just a little less. But if they quit, they have no profit at all!

...

Price cuts are the simplest and most direct way to seize the market. Feng Yu has seen many brands use this method in his previous life and quickly seized the market. And when the market is theirs, they will increase the selling price again to earn back the profit.

As soon as Feng Yu's killer trick came out, the market share of Fengyu VCD and others in China rose to 50% again, and continued to rise, and the sales volume was getting higher and higher day by day.

The sales abroad also began to rise rapidly, and the initiative was once again in Feng Yu's hands.

Jiang Wanmeng and the others suddenly discovered that after the price cut, their profits were not reduced, and their sales volume increased. Moreover, in the past few months, the sales volume of VCD discs has far exceeded his imagination, and the profit of Fengyu Electronics has not decreased!

Coupled with the cost of patent licensing, the profit of Fengyu Electronics has actually increased a lot.

And at this time, Feng Yu launched the second stage of the promotion again, buy VCD, and get more movie and music CDs, not just a New Year's Day party CD.

Buy one get two free, the promotion is very strong.

Most people buy VCDs for the purpose of watching movies, listening to songs or singing, and buying VCD players, the consumption of CDs is not a small amount, just like buying a car to refuel, it always feels like every day It didn't cost much once, but at the end of the month, it was not a small amount.

The cost of a disc, including copyright fees, transportation costs, etc., costs no more than ten yuan. But it was the 20 yuan profit that made the sales of Fengfeng vcds increase again.

"Mr. Feng, our sales are growing rapidly again. Your promotion method is too cost-effective!" Jiang Wanmeng said excitedly.

"It's not a big deal. We will continue to launch follow-up activities. Anyone who buys our products can participate in the lucky draw. The grand prize is the full cash back of the purchase amount, the second prize is half the cash back, the third prize is the bladeless fan... the last prize It's a movie CD or a music CD, everyone can win!"

Feng Yu brought out some promotion methods from his previous life. Those big brands don't know the real method of promotion at all, so they are doomed to fail! (To be continued.)

ps: The fourth change is to make up for the one owed yesterday. There are two more updates ahead, don't miss it. In the event of doubling the monthly ticket at the beginning of the month, everyone votes more for the fourth child. After the fourth child returns home on the weekend, you will see how weak the fourth child is!

Also, those in the group who cursed me as a bachelor, I also cursed your girlfriend, Aunt Tiantian! ! ! Is it easy for me to make a blind date? Do you think it is easy for me~~Enable new website