Without rules, nothing can be accomplished. Lu Feng didn't care about these abstract things; standing up simply represented an attitude, which, over time, would automatically transform into obedience. Only with sufficient obedience could it be maximized into execution.
Lu Feng sat down and said, "Regarding last night's product, let me set the tone here, and at the same time, I'd like to point out what problems you encountered in terms of product positioning and marketing."
"First of all, 80 grams for 50 cents is too expensive. Price wars are always the most direct and effective means. If you want to surpass your competitors, my suggestion is to increase the quantity without increasing the price, and write that directly on the packaging. When users choose a product, as long as they take a second look at your product, you have succeeded."
"Secondly, don't think about making anything high-end, especially in terms of unit price. The purchase threshold should not be high. We are making children's food. How much money do children have?"
“You have to understand children. They have very poor self-control. If they have a penny or two, they want to spend it. Do you want to earn that money? So the price can’t be high, and there can’t be too much of anything. For example, if a child eats something delicious and has a good time, he won’t eat anymore because he’s satisfied.”
"What you need to do is make sure the food is finished when he's satisfied with it. That way, he'll keep spending money to buy more. The key is to not let him get tired of it. The simplest way is to tear the fruit leather into strips and give each of the four or five children a bite. They eat it with great relish."
"If you buy ten tickets and stuff him to the brim, do you think he'll want to eat more in the future? This is a very simple psychological question: always keep your users in a state of being satisfied or dissatisfied."
Gao Zhiwei quickly wrote in his notebook. This was the first time he had heard Lu Feng say these words. Vice President Ding, who had been resting with his eyes closed, opened his eyes and looked at Lu Feng with slight surprise.
He suddenly realized that this young man seemed to have something special about him.
"Have you calculated the product costs for yesterday?" Lu Feng asked Gao Zhiwei.
"The calculation shows that the cost per 100 grams is about 30 cents."
"Do you only consider the dough, or do you also have the packaging and distributors?" Lu Feng asked again.
"Just considering the dough, if you add packaging, transportation, and distributors, the cost should be around 60 cents. Our costs are split in half because the raw materials are more expensive, the frying time is longer, and there's also chocolate involved," Gao Zhiwei replied.
"Then set the retail price at two cents, with the noodle cakes weighing thirty grams each. This product is mainly aimed at conquering the market, so we will combine marketing methods and use instant noodle bags as redemption items to extract residual value from consumers and increase user stickiness."
"Instant noodle packets?" Vice President Ding couldn't help but ask, "The profit margin on this product is already very low. Are you going to offer discounts through marketing? Are you suggesting we write 'Buy one get one free' inside the packets?"
"No, that won't work. If we do that, the company will be unable to withstand the fraud in the market. Let me explain to you what it means to exploit surplus value."
Lu Feng cleared his throat and said, "If you go to buy something, and you only want to buy one item, but the shopkeeper tells you that there's a promotion and you only need to pay 50% more to get the same item, you think it's a great deal and you buy it, then the last bit of money left in your pocket is squeezed out."
"It's just a buy-two-get-50%-off deal!" Vice President Ding scoffed. "That kind of tactic is very common!"
"It's not just about 50% off, but also about retaining users. After you finish eating instant noodles, you can buy three packs of instant noodles with a bag and 50 cents. This way, users will keep getting a good deal, and you'll also be targeting the 50-cent price range."
"Because if users have 50 cents, they may not necessarily consider your product at this price point. This discount will actually make them more likely to consider it, and you will successfully enter the high-price market and squeeze out other people's market space."
"This product has three advantages: First, it can squeeze two cents out of children's hands with a low price to quickly seize the market; second, it can increase user stickiness by using instant noodle packets, the more they eat, the more they are stuck with them, because abandoning this product has a cost value; third, it can conquer the competitor's market and frantically grab users!" Lu Feng said in a deep voice.
Vice President Ding was fully awake, sitting there dumbfounded, looking at Lu Feng in disbelief. This was simply a god-level plan and marketing!
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