Chapter 919 The Effect is Amazing
Consumers’ mentality is sometimes difficult to understand, but sometimes it is easy to understand.
In other words, in the minds of consumers, apart from brand, taste and acceptance, the only issue that matters when it comes to a product is price.
As for product prices, price war is the lowest level of means of hurting others and yourself. Once a price war occurs, it will not only bring serious consequences, but also weaken the brand influence.
Moreover, whether it is Coca-Cola or Pepsi, these two companies are not afraid of price wars at all. Although Sitcom is strong in the domestic beverage industry, it is still far behind the two major colas. The other party's strong capital and scale are simply not comparable to Sitcom.
In addition, there is the issue of product cost. We have to admit that the two major cola companies are much better at cost control than domestic beverage companies. Even Sitcom, which has always attached great importance to cost control in recent years, cannot compare with them.
The cheapest price of ordinary carbonated drinks in glass bottles on the market is about 0.35 yuan. However, glass bottled drinks are rarely sold in shopping malls except for restaurants and some convenience stores. With the change of packaging, most drinks are packaged in plastic bottles. The price of ordinary drinks is 1.5 yuan, and the price of colas is basically 1.8 yuan to 2 yuan. The price of cans is slightly higher, which can be sold for 2.5 yuan. The price of Sit's products is basically the same as the two major colas, but the cost control is not as good.
Currently, the cost control of a bottle of Coke (excluding packaging) of Sit is about 0.13 yuan, which is the best among domestic enterprises. Other beverage manufacturers, including the eight major beverage manufacturers, have costs much higher than Sit, reaching about 0.22 to 0.28 yuan. According to this cost, even the simplest glass bottle beverage has a very low sales profit. If the sales and marketing expenses are slightly higher, then it will lose money.
The cost control of the two major cola companies has almost reached the limit. According to what Song Yuanchao knows, the price of a bottle of cola produced in-house by Shenmei Company, a joint venture between Coca-Cola, can be reduced to as low as 0.07 yuan, which is only about half of that of Stewart.
If the policies had not forced the two major cola companies to consider the actual domestic situation in the sales process and set the prices at this level, the two major cola companies could have directly competed with domestic beverage manufacturers at low prices. In this case, even if they sold at the cost price of domestic beverage manufacturers, they could still make a considerable profit thanks to their cost control capabilities.
From this point of view, engaging in a price war would not only hurt others and oneself, but would also play into the hands of the two major cola companies. Song Yuanchao is definitely not stupid enough to do so.
But if you don't want to engage in a price war and at the same time make consumers feel that it is a good deal, and thus compete with others for the market in the process of giving profits, then the so-called "another bottle" is the best way.
Ordinary people like to take advantage of others. This is human nature.
Just like some grandpas and aunts in later generations who line up in front of the supermarket early in the morning waiting for the supermarket to open to buy discounted eggs, when consumers know that they can get a "second bottle" discount when buying Sit's drinks, then they will inevitably have a strong desire to buy, and thus give priority to Sit's products when purchasing similar drinks.
From this point of view, this method is very likely to promote the sales of products and thus increase market share, and Song Yuanchao's real purpose is exactly this. What he wants is the market, and at the same time, cultivate consumers' purchasing habits for products under market demand, so as to break the commercial encirclement of his competitors.
Song Yuanchao certainly knew that Sun Yaoliang's concerns were reasonable, and that fake winnings would definitely happen. But sometimes you need to be willing to give up something to do something. As the old saying goes, you can only gain something if you give up something. You can't just throw out the baby with the bathwater, right?
Compared with the losses in this regard, the market is the most important thing. If we can seize the market through this, why not give it a try?
After Song Yuanchao's explanation, Sun Yaoliang understood Song Yuanchao's real intention. Although he felt that this method was still very risky, what Song Yuanchao said was right, and he was the chairman, so Sun Yaoliang accepted Song Yuanchao's opinion.
After working overtime all night, the sales company and the marketing department finally came up with a promotion plan at Song Yuanchao's request, and the plan was placed on Song Yuanchao's desk early the next morning.
After reading the plan carefully, Song Chaoyuan called someone to discuss it face to face, and then improved and adjusted several details in the plan. The plan was finalized that afternoon.
After receiving a call from Song Yuanchao, Lin Yan quickly sent out elite personnel from the advertising company, found Luo Yang, and contacted many well-known male and female actors in the country.
It only took a few days for a new advertisement to come out. The main feature of this advertisement was the lively atmosphere of a festival. Many people participated in the shooting of the advertisement. Among them were men such as Chen Xiaoer, Lao Mao, Jiang Wen, Tang Guoqiang, Mr. Li Baoluo, Mr. Shi Yuan, Chen Xiaoer 's father Mr. Chen, etc., and women such as Pan Hong, Liu Xiaoqing, Wu Haiyan, Song Dandan, veteran artist Qin Yi, Bai Yang, etc. In addition, even Wang Shuo, Ma Dudu, Luo Lin, Zhang Qiang, Feng Yuanzheng and Liang Jiahui, who was filming in the mainland, came to make a cameo appearance and showed their faces in it.
The stars are so bright that if it were shot twenty years later, the audience would be shocked by just the people participating in the advertisement.
There is absolutely no artistic value in this advertisement. It just creates a festive and lively atmosphere. With the addition of a few young actors from the Little Star Art Troupe, a scene of a family reunion is presented to everyone. In this atmosphere, Sit's Very Cola product is also highlighted, as is the promotional method of "have another bottle".
In addition to these old, middle-aged and young people, including well-known actors and artists from Yanjing and Shanghai, even the director of the commercial is well-known, because this commercial was actually shot with the help of Zhang Yimou.
Zhang Yimou has been very popular in recent years. Since his first directing of "Red Sorghum" in 1987, he has completed the transformation from a photographer to a director and has achieved unprecedented success in the world film industry.
Although Lao Mouzi has not yet reached the level of "national master" in later generations, he is already a leading figure among the fifth generation of directors. The reason why he was able to use such a great talent to shoot this advertisement, in addition to the relationship with Luo Yang and others, was mainly due to a phone call from Mr. Xie.
Originally, the idea was to ask Mr. Xie, who had some free time, to help shoot this advertisement, but Mr. Xie smiled and waved his hands, saying that he was not good at shooting this kind of thing, and that this advertisement highlighted the atmosphere and colors, and he was not strong in this area.
Taking into account the purpose and effect of the advertisement, Mr. Xie suggested letting Zhang Yimou give it a try, because Zhang Yimou is better at controlling these things. Moreover, he is a photographer and his use of color is second to none among domestic directors. This characteristic of Zhang Yimou can be clearly seen in several films in recent years.
So, Mr. Xie called Zhang Yimou personally. After receiving the call, Zhang Yimou agreed without hesitation. He happened to be in Yanjing and rushed over to shoot the advertisement himself. It only took him one day to finish shooting the advertisement. After that, with the editing and production, the advertisement was completed very quickly.
After the advertisement was produced, Song Yuanchao immediately arranged for it to be broadcast on TV as soon as possible, and at the same time made intensive preparations for the follow-up.
At the end of 1990, the day before New Year's Day, the advertisement began to be broadcast on CCTV and some local TV stations. When this unique and refreshing advertisement appeared in front of everyone, everyone's attention was attracted by the content of the advertisement.
After watching the advertisement, everyone was not only impressed by the advertisement, but also more impressed by Si Te's "Another bottle" in the advertisement.
Overnight, the popularity of Sit's beverage product "Another Bottle" spread throughout the country. By the next day, New Year's Day, sales of Sit's beverage products, especially its flagship carbonated beverage, Fanta, became extremely hot. People rushed to the store to buy it, and many people even bought box after box for convenience.
Even though Sit had made preparations in advance and allocated enough goods in advance to cope with the strong sales after the promotion, there were still many places where the goods were sold out.
For several days in a row, the phone at the sales company kept ringing. Sun Yaoliang personally sat in the sales company to coordinate, and the marketing department was also busy. The marketing director led the team to various places, and everyone worked together to deal with this situation.
The Spring Festival of 1991 was a good day, because New Year's Eve happened to be Valentine's Day on February 14. From New Year's Day to New Year's Eve, in the one and a half months in between, due to this promotional activity of Sit's, the sales of Sit's beverage products continued to rise at a visible rate.
On the night of New Year's Eve on February 14, Sun Yaoliang, who was on duty at the sales company, could hardly believe his eyes when he looked at the summarized sales figures.
In just one and a half months, the sales of Fanta Cola alone reached an astonishing height of 55.56 million units. Assuming that one unit of Coke contains 12 bottles, this totals to 667 million bottles, with sales exceeding 1 billion, which is simply astonishing.
In 1990, the total population of China was 1.143 billion, which means that the amount of Very Cola products sold by Sterling in that month and a half was equivalent to more than one bottle for every two people in the country.
In addition to Fanta, sales of other carbonated beverage products of Sitter are also exceptionally gratifying. Even the sales of drinking water products that did not participate in the "One More Bottle" campaign this time have doubled.
As for Sit's instant noodles and other foods of Nandu, the promotion method of using scratch stickers to exchange for prizes also led to a continuous surge in overall sales.
Looking at the result, Sun Yaoliang didn't know what to say for a moment. Although he learned from the branches below that many counterfeit bottle caps appeared in the prize redemption process, compared with these real sales growth and the rapid increase in overall market share, the profits from success are enough to make up for the losses brought about.
Sun Yaoliang was worried about the statistical errors, so he double-checked again and even called the main factory and its branches to confirm the shipment quantity. After hanging up the phone, Sun Yaoliang looked at the glaring numbers in front of him and was completely speechless for a moment.
