Chapter 854 - Aggressive advertising
Chapter 854 – Aggressive advertising
“Drink Qili, increase your stamina like a champ! Hong Guan Qili! Designed for athletes!”
“Jianlibao increases your energy!”
“Refreshing! The champion’s choice!”
“Lehaha Tea beverage. Quench your thirst!”
“Jianlibao’s Tea beverage. Let’s create miracles together!”
……
The advertisements for Chinese beverages appeared on TV, newspapers, billboards, etc. in Europe, the US, Africa, Asia and many other countries. The number of advertisements had surprised the two beverage giants.
How much will the advertisement fee cost? Chinese beverages have to sell how many bottles or cans to recover this cost? They even advertise in Africa? How many people in Africa can afford to drink these beverages?”
Yes. This advertising campaign cost more than 100 million USD and will last for 1 year. Lehaha, Jianlibao, and other companies in the alliance will not make profits from the overseas market for the next two years.
Jianlibao’s situation is slightly better as it has some brand awareness in the US and Southeast Asia. But Lehaha is a newcomer to the overseas market. Although Feng Yu had successfully place Lehaha’s products in the supermarkets, they were still making losses at that time.
At that time, the profits of these two companies were not more than 1 million USD, and the money invested in marketing was more than the profits. As for Hui Yuen, Le Bashi, Coconut Tree, etc. were all in the red.
But the sales of Chinese beverages were climbing, and everyone believes next year will be better as their brand awareness will be higher and will have a group of loyal customers.
At this time, all the companies were not optimistic, and they felt the overseas’ profits will not exceed 20 million USD.
But now, Feng Yu invested 100 million USD in advertising for his two companies suddenly, and the heads of both companies still agreed to it.
Each company will have to bear 50 million USD and this is an astronomical amount for an ordinary company. But the top management of both companies was still smiling.
The bottling factories acquired by Feng Yu and Fu Guangzeng had started operations and is currently producing for Lehaha and Jianlibao. These factories charge a basic fee and a percentage of the profits. That means if these two companies do not have profits, the factories will only receive the basic fee.
Feng Yu and Fu Guangzheng are not fools and after analyzing the market, they found that the miraculous win of the Nigerian team will help push sales if there is enough advertising.
The beverage is not a necessity, and once the consumers love a particular brand of drink, they seldom change to other brands.
For example, if someone is used to drinking Coca-Cola, they will not drink Pepsi, despite both Colas taste quite similar.
The most important thing right now is to let the consumers try and build up a customer base. After the consumers got used to their products, the Chinese beverages will then increase its market share.
Jianlibao and Lehaha are not on the top 10 beverage brands in the world currently, but after a year of aggressive marketing, they should be in the top 5.
Once consumers got uses to a beverage, they will stick to the brand they are familiar with when they want to buy a bottle of drink at the stores.
What Feng Yu wants now is to increase the brand awareness of these two companies’ beverages and get the market share. Once they got the market share, their sales will increase and will recover their investments.
It’s only 100 million USD, and if both companies’ drinks manage to increase their market share to 1%, they will recover the advertisement fees in the future.
But they will definitely not see any returns this or next year. But the profits will be in by the third year!
Beverages are not some hi-tech products, and the two beverage giants own more than 50% of the global market share. If Feng Yu stick to traditional sales strategies, it will be nearly impossible for him to increase his companies’ brand awareness and sales.
This is an extreme strategy, but it is useful. Other companies will not use this as this strategy need good brand ambassadors.
The success of an advertisement depends a lot on the spokesperson and brand slogan. Increasing the number of ads alone might not be successful.
……
“What did you say? The whole Nigerian football team, including the coach, had signed contracts with the Chinese Beverage? What are you all thinking when I asked you all to pick some athletes to be our spokesmen? Why did you all choose these losers?” Cruise roared.
His subordinates kept quiet and grumbled in their hearts. You are the one who wanted these players, and who would expect them to lose this championship?
Even the lottery companies did not expect Nigeria to win. Many of them suffered heavy losses as someone placed big bets on Nigeria, winning the gold medal!
Even those professional companies did not expect Nigeria’s win, let alone us.
“We can advertise using those players’ other credentials. For example, their result in Euro.”
“This year is the Olympic Games, and no matter how to market, they are still one of the players in the games! They only need to advertise their spokesmen as Olympic Champions and they will outshine us! Don’t focus on our football players and use the gold medalists from other sports!”
“Mr. Cruise, I need to report another matter to you. Those Chinese beverages had increased their advertisements using the Olympic Games Champions. I heard some major supermarkets increased their orders, and many ordinary stores also started selling their products!”
Cruise was shocked. The Chinese beverages’ sales had increased because of the supermarkets, and if their products start appearing in retail stores, that means most consumers had accepted them.
But how is this possible? Those beverages had only entered the Western market not long ago. How can they open the retail stores? Even if the advertisements are effective, the results will not be shown so fast, as the aggressive advertising campaign had just started.
“They had contacted those small retailers in the past and still have attractive promotions like lucky draws. Now, their lucky draw prizes include the Nigerian Football team’s posters, autographs, etc. and many football fans are willing to buy their products to try to win these prizes.”
“How come I am not aware they had contacted those retailers? What the hell are you all doing?! Get lost! Get out of my sight!”
After Cruise calmed down, he picks up the phone. It seems like he has to join forces with Coca-Cola again!