Rekindle 2003

Chapter 1001 There is no hometown at the end of Chang'an, and Chang'an is deep in the hometown.

Seeing the understanding expressions on the faces of the classmates, Qing Yun shrugged his shoulders and said, "As I just said, most people score between 450 and 525 points, and the low-end market is enough to support them.

Therefore, I must not give them any chance to breathe, otherwise I will be the one to die in the future.

Because they can live forever, there are people who can pay for their mistakes.

But I can’t make any mistakes. One mistake will seriously damage my vitality. Two mistakes will lead to my eternal damnation.”

Gou Dan frowned, looking a bit struggling, "Qingyun, we understand your difficulties, but it sounds like no matter which one we do first, it will hurt some people."

Zuo Wangdao also sighed, "Yes, this is really a dilemma. We don't want to see someone not getting the service they deserve because of price issues, nor do we want to see you sacrifice your brand reputation for the sake of the market."

Qing Yun smiled, "So, in this process, we need to find a way to meet the needs of the low-end market while gradually launching other brands without causing market confusion."

Shi Guangyi sighed, "So, your plan is to issue cards?"

This is not surprising at all. After all, Qingyun has said before that issuing cards is a means of acquiring customers.

Emperor Yun nodded and said, "I was wondering, why do we have to follow the traditional marketing methods?
To put it bluntly, the low-end market is all about price.”

He shook off the cigarette ash and continued, "The industry gross profit margin of branded machines is 10%, and the tax control machines currently sold by Yanhuang Group are 23%.

But this gross profit margin exceeds the industry average because I sell the software in bundles.

On low-end machines, I certainly can’t bundle them, or even if I pre-install software to expand my market influence, I dare not make money from it, otherwise I can’t compete with others on price.”

They are all so low-end. You must save whatever you can, otherwise you won’t be able to survive.

If he didn't have some moral bottom line and was fed up with the outrageous practices of mobile phone manufacturers in his previous life, he would really want to try the paid pre-installation model.

He picked up a pen from the table and gestured in the air, "Based on the current low-end machine price line of 3500 yuan, the industry average gross profit is 350 yuan, and the net profit is about 100 yuan.

Don't be surprised. The profit is so low. Most of it is taken away by foreign core component suppliers, and I still have to bear the two big expenses of marketing and management expenses.

Normally, marketing expenses account for 50% of gross profit, which is 175 yuan.

For example, Fantasy Computer’s marketing expenses accounted for 53% last year, which included channel distribution costs and advertising expenses.

The ratio of the two is half each, but there is a basic figure for advertising expenditure, which is 1800 million a year.

If you want your products to reach consumers across the country, this 1800 million is a fixed cost that cannot be saved.

The advertising expenditure on each computer, which is half of the marketing cost of 175 yuan, is 87.5 yuan. Then we assume that there is no profit and subsidize the 100 yuan net profit from sales. It will take sales of about 9.6 units to cover the advertising expenditure.

In other words, sales of 9.6 units is the break-even point.

What does it mean to have 9.6 units on the market?
Last year, the number of home desktop computers nationwide, including DIY installations, totaled 310 million units. Excluding the million-level sales of Fantasy Group, the passing line for the top ten brands of computers was 9.6 units.

So, you can see that the price war in China has already reached the point of bloodshed.”

Qing Yun looked at all the confused friends and smiled.
"What do I mean by this? I'm telling you not to overestimate the bottom line of these brands.

Almost everyone in this market is gritting their teeth to hold on, and all manufacturers are surviving by relying on rebates from parts suppliers.”

At this point, he sighed, "Wu Lujun said that he has earned 6 million in the past ten years, making him the person who earns the most in this industry in China. This statement is absolutely true."

Is 6 million a lot? Of course it is a lot. 99.9999% of people can only look up to this number throughout their lives.

But in an industry, especially an industry that is still looked up to, this number seems too small.

“No wonder so many people are working in the Internet industry now.”

Gou Dan was also drunk after hearing this.

At the beginning of the century, this kind of news could often be heard.

A kid in his teens can set up a computer at home to create an Internet website, and after a few months, he can sell it for millions, tens of millions, or even hundreds of millions.

In the emerging stage of the Internet, this number is increasing year by year.

In the context of this kind of wealth-creating myth, 10 million in 6 years is really ugly.

So, at this moment, everyone finally understood why Qing Yun said not to overestimate the bottom line of brand owners.

Ranked tenth in the industry, it can barely survive without rebates. If the country had not enforced 3C certification, who knows what the condition of the accessories would be.

From this point of view, Wu Lujun is considered a conscientious entrepreneur.

After letting everyone have a perceptual understanding, Emperor Yun put out his cigarette.
"My idea is to save most of this marketing cost through unconventional marketing methods and feed it back into the selection of components.

Or, taking into account the bargaining power of the integrated Yanhuang Group over suppliers, I can increase the price by another 2-3 points, take the path of small profits but quick turnover to benefit consumers, and move the selling price down by another 500 yuan." Qin Manyan raised the corners of her mouth when she heard this.

She guessed correctly.

It is the cost leadership strategy.

Shi Guangyi listened attentively. He did not expect Qing Yun to have considered the whole plan so thoroughly.
"With this calculation, our market competitiveness in low-end phones will be very strong, and we can still maintain a certain profit margin."

Gou Dan couldn't help but interrupt, "Old Lord, your idea does sound feasible!"

This 500 yuan space makes Yanhuang Group unrivaled in the low-end machine market.

Wu Yihang rubbed his nose and said, "Lao Qing, that is to say, by issuing cards, we have actually reached a part of this group of people.

Because we have screened in advance, we have accurately identified the customer groups.

Then, relying on word of mouth, marketing costs can be saved.

That’s what the card issuance program is all about, right?”

As the few people talked, Qing Yun's plan gradually unfolded in front of everyone.

Using card issuance as an introduction, Yanhuang Group’s low-end brands are not promoted on the market at all and are only circulated among a group of people in a niche market.

The advantage of this strategy is that satisfied customers can help the brand attract more similar consumers through word of mouth.

This method not only saves a lot of marketing costs, but also through recommendations from existing customers, new customers will have a higher degree of trust in the brand.

"In this way," Qing Yun added, "the eight sub-brands of Yanhuang Group do not need to wait for two rounds of brand cultivation.

Business, official duties, and education, these three sub-brands are specific fields, and market logic plays a very small part in their brand shaping.

They have clear market positioning and target customer groups, so once launched, they can quickly establish brand awareness in related fields.”

Then, Qingyun explained the situation of other sub-brands in detail, “As for the three sub-brands of young people, women’s fashion, and household high-end, they are relatively isolated and not easy to confuse.

Their product designs and marketing strategies will be clearly differentiated to attract different consumer groups.”

"As for the mid-range home market," Qing Yun continued, "the originally largest market has become smaller after my segmentation, so we can let it go a little.

This way, we can focus our resources and energy on ensuring the successful promotion of other sub-brands.”

At this time, Qin Manyan smiled and added, "Once other sub-brands have consolidated their market position, we will return to focus on building this market segment and form a complete brand matrix.

Through this hierarchical and focused brand promotion strategy, Yanhuang Group can complete the construction of eight sub-brands in a relatively short period of time, while ensuring that each brand can succeed in its respective market segment.

This strategy not only improves the efficiency of brand promotion, but also maximizes the use of resources and reduces market confusion and conflict.”

Li Yali sat quietly aside, listening to the conversation between everyone and Qing Yun, with complex emotions surging in her heart.

She suddenly remembered the beginning of an essay Qingyun wrote in high school:
"Young men should have lofty ambitions, and ride on fine horses to conquer the plains. Young men should dream of picking stars, and dare to shoot at the Jade Horse with a mulberry bow. Look at the young men today, they are as bright and dazzling as stars. Their heroic spirit is unstoppable, and their ambition is immeasurable. One day, they will soar up and ride on the wind to the rising sun..."

The Qing Yun in front of him was just like the young man he had described in his writings back then, already dazzlingly brilliant. His talent and ambition were fully displayed at this moment.

However, a hint of bitterness also arose in Li Yali's heart.

It's just... he doesn't belong to her.

This thought was like a tiny needle that pierced her heart.

She watched Qing Yun talking confidently about his plan. His radiant appearance made her feel both proud and an indescribable sense of distance.

Li Yali knew that Qing Yun's world was far beyond her reach. He was the swan destined to soar into the sky, and she might just be the one looking up at him on the ground.

But even so, Li Yali still had a gentle smile on her lips.

She hopes Qingyun can realize his dream and become that dazzling and unstoppable existence.

Even if we cannot walk side by side with him, perhaps standing by his side and helping him realize his dream is my lifelong dream.

Thinking of this, a pair of willow-leaf eyes secretly glanced at the 'Young Mr. Chen from Yanhuang' over there, and then turned his attention back to the young man here, listening to his words carefully.

At this moment, Li Yali's mood became unusually peaceful.

There is no hometown at the end of Chang'an, and Chang'an is deep in the hometown.

……

(End of this chapter)