The telecommunications company has a small workforce, with only about 300 employees in total. They are responsible for only one product: pagers. This includes marketing, advertising, and sales channels. They also need to coordinate with the marketing department. Their work mainly involves product design, advertising design, market pricing, and brand marketing.
It can be said that the telecommunications company is a subsidiary of the marketing department. Now the mobile phone business is mainly led by the telecommunications company, and the marketing department has become an assistant. How could they not be happy?
During internal meetings, Du Guoying couldn't help but smile, and the atmosphere within the telecommunications company reached its peak.
As evening approached, Lu Feng parked his car downstairs and went upstairs. The entire company was bustling with activity, with no one leaving yet. He knocked on Du Guoying's office door and, seeing him still busy, asked, "How's it going?"
"President Lu, what brings you here?" Du Guoying hurriedly stood up and said, "We've been working overtime these past few days. I was looking for you, and I have some good news."
Lu Feng sat on the sofa and asked, "What news?"
"It's about mobile phone promotion. I recently contacted the advertising department of the Spring Festival Gala through the head of a film and television media company. This year's Spring Festival Gala is still missing a sponsor, which is quite expensive, but its influence across the country will definitely be huge." Du Guoying sat down and said, "I discussed it with General Manager Zhu, and he thinks it's not appropriate to invest so much in advertising now that the product hasn't been launched yet."
"Spring Festival Gala? Is that the advertisement that announces the time at twelve o'clock? Wasn't that advertisement sold half a year ago?" Lu Feng asked, puzzled.
"It's not about announcing the time on time; it's sponsorship. The host will mention it briefly during the program introductions. They stipulate that it cannot exceed fifteen words, and each word costs one million yuan. It will be mentioned once every two programs. I think this will greatly enhance the brand's strength. When the product is launched next year, we can say it's the official product of the Spring Festival Gala," Du Guoying said.
Lu Feng nodded slightly and asked, "I came here today to see what kind of target audience you plan to position your mobile phones for and what direction your advertising and marketing will take."
After hearing this, Du Guoying stood up, picked up the landline, and made a call: "Have all department heads come to my office."
A dozen minutes later, the office was packed with thirteen or fourteen people. All eyes were on Lu Feng, and they all seemed quite reserved. Clearly, the boss had come to inspect the work.
"Don't be nervous, find a place to sit down," Lu Feng said to them.
Du Guoying turned to one of the men, who was in his forties, and said, "Old Zhou, could you explain the positioning of the mobile phone brand to President Lu?"
"Hello, Mr. Lu. We have collected a lot of market information in the past six months. From last year to now, the mobile phone market in China has expanded rapidly, mainly driven by Motorola and Nokia. Products like the 'Big Brother' (a type of early mobile phone) are rapidly exiting the market. Motorola has the largest market share, with monthly sales reaching 10,000 units and an average price of around 8,000 yuan. Nokia's monthly sales are also around 7,000 units. Overall, the monthly shipment volume is about 25,000 units."
"Based on our comprehensive market assessment, we believe that 1996 will be a breakout year for mobile phones, with total sales reaching over 50,000 units, or even more. At present, the mobile phone market is still mainly business-oriented. For example, Nokia's profit margin is about 40%, and Motorola's is similar."
"Compared to these two companies, we don't have much profit margin, so we plan to position our products as high-end products, mainly targeting the high-end business market."
“The price can’t be too high!” Lu Feng asked Du Guoying, “After doing so much market research, you must understand one thing: you can never surpass someone else’s theories by just following theirs.”
Du Guoying nodded as if he understood, while others in the room took out notebooks and held them in their hands.
“Now everyone knows that mobile phones are used for business. In this arena, you can never surpass the two giants, Motorola and Nokia. A few days ago, Zhu Lidong was talking with people from the provincial government and the postal and telecommunications group. I gave him an idea: could we open a line where calls are free? What I mean is, not that calls are free, but that one mobile number can be linked to several other mobile numbers, and calls between those numbers are free.” Lu Feng addressed the crowd, “Have you got the idea?”
Free is always the most attractive, but also the most expensive.
“Bosses need to conduct business negotiations and communicate, but their lives are not just about work; they also have personal lives. Think about it, if they want free calls, they can’t just buy one phone, can they?” Lu Feng guided the crowd.
Du Guoying was the first to react, slapping his thigh and exclaiming, "Mistress!"
Everyone present was stunned, and Lu Feng didn't react either.
“These days, which big boss doesn’t have a mistress? Business is work, mistress is life. Mr. Lu, you’re amazing.” Du Guoying said with shining eyes, “This is definitely a big selling point.”
Lu Feng looked at him, slightly embarrassed, and said, "I was thinking about my wife."
Some people in the audience couldn't help but laugh out loud. Du Guoying smiled awkwardly and said, "Nobody spends money on their wives these days. A phone costs seven or eight thousand yuan, so it's definitely for a mistress. This kind of consumption relationship is too good. Sexual consumption is always the best track, but the premise is that the condition of free calls can be met."
Lu Feng had nothing to say about this market positioning. After all, it's really unlikely that an ordinary person would spend a year's salary to buy a mobile phone. The biggest spending power still comes from the boss.
"When setting prices, we must target the largest market group. There aren't many big bosses; we must target the group with an annual income of 30,000 to 50,000 yuan, which is the middle class. For them, spending more than two months' salary to buy a mobile phone is still achievable." Lu Feng said to everyone, "We must give the product a sense of superiority that appeals to the petit bourgeoisie. This is very important."
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