Chapter 857 - The markets must be based on population
Chapter 857 – The markets must be based on population
Feng Yu received Li Jingwei’s call after he finishes his phone call with Zhong Qingxian. Li Jingwei told him that Coca-Cola and Pepsi’s China market’s representatives had called him, requesting cooperation with Jianlibao.
Feng Yu immediately knew the conditions given to Jianlibao will be the same as what they had given to Lehaha. They just want to make use of Jianlibao’s sales distribution channels, and in return, they will offer their bottling factories or some promotions.
That means the two Cola factories are not only looking for one company to cooperate. Since they can look for Lehaha and Jianlibao, they will also look for other companies like Le Bashi, Zhenzhen, Rising Sun Group, etc. If they are successful, Feng Yu’s strategy of using the distribution channels will fail.
Luckily, Feng Yu had spoken to the other companies in the beverage alliance, and they should know what to do.
In another two months, it will be autumn and will be the off-peak season for beverages, especially carbonated drinks. By that time, no matter what promotion those two companies do or whatever sales channels they set up, it will be ineffective.
Feng Yu called Zhong Qingxian and Li Jingwei, telling them to delay those two companies and, at the same time, inform the rest of the big brands not to collaborate with them.
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Manager Zhao was overjoyed when Zhong Qingxian told him to discuss the details of their cooperation. If Pepsi can cooperate with Lehaha, then they will have a strong distribution network and will win Coca-Cola in the Chinese market. After that, Pepsi can invest more funds into their marketing to increase their market share. China is a massive market for them!
Pepsi is not afraid of competing with other Chinese brands, except for Coca-Cola, as the Chinese beverage companies’ scale is far from Pepsi and Coca-Cola. If their headquarters are willing to invest in this market, they can penetrate the market easily.
But Pepsi’s headquarters felt the Chinese consumers’ spending power is too low, and China’s economy is still not strong enough. Even if they invest a large sum of money into advertising there, they might not see the returns.
Chinese consumers’ spending power is much lower than in a small country with a lower population like Japan.
Manager Zhao rushed down to Wind and Rain Building in Beijing but was informed that Zhong Qingxian had returned to Hang Zhou the day before.
Manager Zhao was furious because Zhong Qingxian had lied to him.
He immediately called Zhong Qingxian and was told Lehaha’s headquarters is in Hang Zhou. Beijing’s office is only a branch, and Zhong Qingxian had forgotten to say to him.
Manager Zhao heard this and felt this might be his fault for not clarifying the location properly and immediately book the next flight to Hang Zhou.
After he arrived in Hang Zhou, Lehaha, he was told that Zhong Qingxian had left to sign a contract in Jilin for a bottling factory Lehaha acquired and will not be back today.
Manager Zhao waited a few days for Zhong Qingxian in Hang Zhou. But on the 3rd day, Zhong Qingxian called him to tell him there were some problems with the contract and there will be a delay for 2 more days. If Manager Zhao needs to meet him urgently, he can look for him in Jilin.
How can Manager Zhao not be anxious? This was the first time Pepsi invested in aggressive advertising in China, but they do not have sufficient distribution channels and their sales remained low. He is under immense pressure to show results.
But when Manager Zhao arrives at Jilin, Zhong Qingxian had returned to Hang Zhou, and he had missed him at the airport. Zhong Qingxian claims that his phone’s battery was flat and could not notify him.
Just like this, Zhong Qianxian delayed Pepsi for 10 days, and Jianlibao also used various reasons to delay Coca-Cola’s representative for about the same number of days.
The Chinese representatives for both companies felt something was off. They were purposely wasting their time and the time wasted could be used to meet other beverage companies. Now, they had offended other companies and still haven’t got the chance to meet Zhong Qingxian and Li Jingwei!
When the representatives went to look for Le Bashi and the other companies, they were rejected. They had promised to start their cooperation as soon as possible, but they let these companies wait for them for more than 10 days!
The two cola companies might be powerful in other countries, but in China, they were no match for these Chinese companies.
You want to cooperate now? Sure. But it will not be limited to China market. We want cooperation in the international market too. We will share our distribution channels in China, but you all must also share your channels overseas with us.
The representatives did not agree as Pepsi, and Coca-Cola’s scale is 100 times bigger than these Chinese companies. Furthermore, the Chinese market might be big and got high potential, but it is not open up yet. How can it be compared to the developed overseas market?
Actually, these few companies have no intention of working with them. They were riding on Lehaha and Jianlibao now and were enjoying the benefits of being in the alliance without having to pay much to have their products exported!
Feng Yu told these companies that if they work with the two cola companies, the alliance will stop exporting their products overseas.
Now, Lehaha and Jianlibao’s brands’ awareness is increasing because of their aggressive marketing. Even without the rest of the companies, they can also occupy a full supermarket shelf with their variety of products.
Le Bashi, Zhenzhen, and the rest of the companies thought for a while and offered this condition to the cola companies. If they were to cooperate, the two cola companies must share their overseas channels.
Beverages taste quite similar, and the one who controls the sales channel will control the market and get the highest profits!
The two companies had failed to cooperate with the Chinese companies and were about to suggest to their higher-ups to set up their own distribution channels and groom some smaller distributors, when Lehaha contacted Coca-Cola and Jianlibao contacted Pepsi.
The two cola companies were overjoyed to hear this. This time, they should be able to work out some deals.
That’s right. Lehaha and Jianlibao are willing to negotiate with them and offered harsh conditions. Pepsi and Jianlibao had worked together before, and Manager Zhao thought they could cooperate again. But Li Jingwei’s first sentence almost made him vomit blood.
“We will exchange market. What market are you offering to exchange for our Chinese market?”
Manager Zhao thought for a while and decided to use the US market for exchange. Anyway, Pepsi will be increasing its advertisements in the Us, and Jianlibao’s products were already sold in the retail stores. Even if they were to share their channels, Jianlibao will also not increase their sales too much.
Also, Jianlibao’s sales channels in China will increase Pepsi’s sales.
“The market is not calculated base on land area. We are selling beverages to people, and it should be based on the population. You all should offer a market with the same population as China for us to have a deal.” Li Jingwei replied.
Manager Zhao almost fainted. He had never heard that the market is based on the population. China has more than 1 billion people, and they must offer its sales channels in the whole American continent in exchange! Do you want the African market as well?!
There is no point in negotiating anymore. These Chinese bosses were just taking them for a ride!