With so many restrictions, it would be quite difficult even for Zhu Lidong's team, let alone a newcomer like Du Guoying with a relatively rudimentary team.
The fact that he has been able to implement these three plans demonstrates his potential.
"We need to find a balance between product quality and premium pricing. Given the current market situation, we are unwilling to engage in price wars, whether against Bird, Motorola, or other foreign companies. So, our number one problem is how to lock in prices and ensure a certain sales volume when competitors lower their prices."
Lu Feng, with a serious expression, sat there pondering for a while before saying, "I agree with the idea of positioning the product towards the high-end market. We need to build brand power so that users, after purchasing the product, will have certain social attributes, or even additional social attributes. I don't agree with positioning it as a business product; it will make young people feel resistant."
"I believe the brand should be positioned to appeal to a younger demographic, as a mid-range luxury brand, focusing on enhancing product value and preventing it from engaging in price wars. In terms of advertising, avoid being overly pragmatic; don't mention things like good signal strength, product durability, or excellent after-sales service!"
"In product advertising, avoid using words like 'high-end,' 'first,' or 'luxury,' but make users feel these qualities through the advertisement. In offline sales, enhance the service attributes of stores, give young people a first-time VIP service experience, and establish the Jiafeng VIP system. Anyone who purchases a Jiaxun pager automatically becomes a Jiafeng Electronics VIP customer and enjoys priority service, home delivery, and priority after-sales service."
A vice president standing nearby spoke up: "President Lu, if buying a pager makes someone a VIP customer, what if we launch high-end services later? Our customers who buy TVs and VCD players will definitely have complaints. Besides, as the number of users increases, these services will also be a significant expense."
"Don't worry, there will be VIP levels later, and we can use a points system. It will still be a card collection game. For example, if you buy a VCD player, a TV, and a pager, you can get a free electric fan or something. We'll see how it goes based on profits. I don't think we should lower the price of the pager at the beginning. We can lower the price indirectly, but we can't lower the price directly."
Lu Feng sat there and thought for a moment before saying, "This is the direction we're going to take. To match this direction, we need to change the design. The current all-black, one-piece plastic design isn't high-end. We need to move the design towards a more upscale look, which will increase costs."
The seven or eight chief engineers in charge of exterior design looked at each other, not quite sure what Lu Feng wanted, but they did have some drafts.
Who among designers hasn't had a stack of drafts rejected by their boss?
A few minutes later, a stack of manuscripts was placed in front of Lu Feng. Everyone flipped through them. Some of the manuscripts were rather outlandish, some had too high technical requirements, and others were too expensive.
Lu Feng flipped through a piece of paper, which described a design with silver outlines and contrasting colors for the outer casing clips: light blue, alloy steel, and black plastic. The buttons also had a high-quality feel.
"What is the cost price of this manuscript?" Lu Feng asked, placing the manuscript on the table.
“Everyone was very satisfied with this before; it was Engineer Li’s work. However, it’s expensive. The spring under the button requires a high level of craftsmanship because it needs to feel substantial when pressed. We can’t make it right now. Only one company, Shanghai Jinggong, can. Just this small spring costs two cents. And we can’t make this light blue alloy either.” Liu Cheng looked through the manuscript and considered the costs, saying, “The overall cost has increased by seventy percent, and the cost of the outer casing has increased by two hundred percent.”
"Let's use this one." Lu Feng made the decision. The cost of this thing is less than 100 yuan. Even if it doubles, it's only 200 yuan. In order to quickly recover the R&D costs, we've already spent 400 million yuan. This little bit won't make a difference.
At 4 PM, Jiafeng Electronics announced that the release date of its Jiaxun pager has been postponed and it is now expected to go on sale on March 15th.
Half an hour later, Motorola announced that this year would be a major year for the mainland China region, and that it would continue to invest regardless of cost to increase supply and serve more consumers.
Both of these messages are circulating within the industry and will be published in the newspapers tomorrow, but as the most anxious company in the industry, Bird received the news immediately.
Inside the factory office, Xu Lihua and the other three looked rather somber. Since before the Lunar New Year, various parties had been making moves, but there had been no news. Unexpectedly, on the same day, two companies spoke out at the same time, like a thunderclap that broke the dark clouds that had gathered on the eve of the big battle.
"Jiafeng Electronics withdrew?" Sui Bo sat there somewhat stunned and said, "With their R&D team and the technology they bought, it shouldn't be like this."
"I think the problem lies in the technology. They bought the technology, but they still need to digest it themselves, which takes time. A few days ago, I heard from people in the industry that they had already produced a batch and were testing it. This sudden delay might mean that the product is not up to standard?"
"Let Jiafeng Electronics postpone it if it's not going to. It's the off-season anyway. The key question is why Motorola is increasing production? Their market share is very solid. Our sales are good right now because of our low prices, which have attracted a large number of new users. Their market share hasn't decreased at all."
"This analysis is correct. I think we should keep an eye on Motorola. Their brand power is too strong. If they really start a fight against us, we really won't be able to withstand it."
"No, no, we should focus on Jiafeng Electronics. They rose to prominence by engaging in price wars. On the contrary, I think Motorola is unlikely to lower its prices. The brand image is there. Even if they don't lower their prices, they can still sell their products."
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