Zhu Lidong was originally very confident in the market positioning of VCDs because Lu Feng attached great importance to them, and he had conducted market research on home theaters early on.
He had a very strong understanding of product positioning and marketing, which is why he said these things to Lu Feng, but he didn't expect Lu Feng to reject them.
Zhu Lidong started to feel confused. He instinctively felt that Lu Feng couldn't be wrong, which made him very insecure.
"Regarding market positioning, we must first focus on genuine products and patent licensing. In the early stages, we must establish this brand and gain a competitive advantage. Secondly, the VCD brand will be the same as the home theater brand before, called Golden Leopard!"
"In each province and city, different content is provided. We need to learn to make good use of local content resources. In addition to the content we introduce, we need to guide the development of diversified content such as Errenzhuan, Errentai, Peking Opera, Pingju, and crosstalk in the local area."
"First, we should partner with a small local burning studio to let these groups know about this inexpensive way of selling, which will stimulate the market to produce its own products. But we alone cannot meet the diverse needs of the market, understand?"
Zhu Lidong nodded repeatedly, rummaged around on his person, found a notebook, and started taking notes.
"At the same time, we need to start promotional work in the entertainment sector." Lu Feng looked at Wei Yandan and said, "This is the first time that industry and entertainment are working together. We need to do a good job in fan guidance, market promotion, and advertising endorsements. We need to make the influence reach its peak as soon as possible. People's first impression is very important."
"I'll be in close contact with General Manager Zhu this week, discussing brand, product, and market positioning, and working on a plan as soon as possible," Wei Yandan replied.
“Now, major companies are eyeing us covetously. I need to get their inside information, especially regarding market positioning and pricing. I will release about a thousand units of the first batch of products to the public, because the buyers of the first batch will definitely be major companies, who will take them back to disassemble.”
"Therefore, the price of the first batch of products should be set high, to take advantage of each batch. At the same time, we should leave some deceptive loopholes in the machine design to buy us some time. Simply put, the first batch of goods should have an advertising effect. The high price will definitely attract news attention, which can be considered a publicity campaign."
Everyone present laughed when they heard this; President Lu was setting traps for their competitors again.
We talked for an afternoon about various aspects, including the market, products, content development, advertising, projected annual sales, and profit margins.
The daylight outside was dim, and Zhu Lidong's notebook was already filled with notes. Feng Zhiyao sat to the side, yawning. He had to admit that Lu Feng was quite intelligent.
So much stuff, and the various departments talked non-stop for an entire afternoon. The sheer volume of information covered made him feel quite ashamed of himself.
"How's the finances going?" Lu Feng asked the finance manager.
"The current losses are quite large, mainly due to the large expenses at the beginning of the year. Since January, the decline in sales of Weipuda has stopped, but the gross profit has continued to decline. This month, Weipuda's loss is around four million, which is considered to break even. However, other expenses are too large. This year, the estimated loss is around 150 million."
“If VCD can generate some profit to offset the losses, the year-end accounts will look much better. As long as there are no major problems this year, the company's operations will be fine.” The finance manager suddenly thought of something and said to Lu Feng, “This is on the premise that you, Mr. Lu, stop causing trouble.”
"I didn't cause any trouble. Look at what you're saying. You're in charge of the money. I handed over all the money I got to you, and you just made it all disappear," Lu Feng said sarcastically, spreading his hands.
The room erupted in laughter. The finance manager wore a wry smile; only finance professionals knew what it was like to have such a boss.
"This is the report: 100 million for the R&D company, 50 million for the VCD company, the entertainment company, the construction of the new factory, the amount of debt, and the profits of various products this year, as well as the expenses for market expansion."
The expense form was very long, a full five pages long, with details of how each expense was used. It's not that Jiafeng Electronics doesn't make money, but rather that its profits can't keep up with the rate at which it spends money.
Lu Feng's expansion speed is too fast.
"I estimate that this year's revenue may exceed one billion yuan," the finance manager said, smacking his lips. "Among private enterprises nationwide, such a high revenue makes it one of the top companies."
Lu Feng flipped through the reports, and at the end was the debt situation. He flipped further and saw that someone owed him money. He exclaimed, "What's the story behind this 18 million debt?"
“This is misappropriation of funds. Last year, a batch of television sets were directly purchased by a coal company for its staff housing. It was an internal purchase, and sales were declining at the time!” The finance manager said, looking at Zhu Lidong.
“I did this. The other party is a state-owned enterprise. It’s not just one purchasing agent, but several, and the volume is quite large. Because of cash flow problems, we made a business-to-business transaction.”
"It's been months, and we still haven't gotten the money back?" Lu Feng questioned Zhu Lidong.
Zhu Lidong looked embarrassed and said, "I urged them many times, and they kept saying they were following the procedures because I trusted them. I didn't expect that the money was misappropriated. Another state-owned enterprise owed them money, so they transferred the debt to them. Now that I have the IOU, I can definitely get it back. It's just that triangular debt is quite serious now."
Lu Feng sighed as he looked at the money and said to Zhu Lidong, "You've been by my side for so long, and you still got played by that old fox? What were you thinking? I've told you guys in meetings countless times that cash is king now, and this kind of problem is most likely to occur when product sales decline."
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