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Chapter 633 – Promotions Part 2 of 2



Sony was the first company to react. This was because Sony was the world’s number 2 VCD disc producer. Although Sony had made profits from the discs, compared to Wind and Rain Electronics, Wind and Rain electronics made more!

Despite Philips not manufacturing VCD players, but they produced VCD discs. They were now the world’s number 3 VCD disc producers.

It was because Feng Yu had told Philips and Philips gave up the idea of producing VCD players and focus on the discs manufacturing technologies.

Of course, in about 1 month, Philips will also introduce the Super VCD players.

Philips does not want to produce cheap goods. They only want to sell the best products. This was their brand’s positioning.

Having price cuts promotions will affect their brand image, and this was not what Philips wanted.

But Feng Yu was willing to do this. Anyway, there was still profits in the VCD players after the price cuts. Wind and Rain brand will also increase their influences.

As for his brand image, Feng Yu still have other tricks up his sleeves.

Giving out some discs? We had already accepted the price cuts, what’s the big deal of giving out some discs? We can also do the same promotions!

So, all the VCD manufacturers started to reduce their prices and giving away free VCD discs. Wind and Rain VCD players were giving away 2 discs as free gifts? We will give out 3 or even 5 discs!

You have a lucky draw? We will also do the same. The lucky draw model will be exactly the same as yours, but the prizes will be better. We will give out our other products, at the same time, we can clear our remaining stocks.

Jiang Wanmeng called Feng Yu to tell him that the other companies started to imitate their promotions. Especially Toshiba. Their promotions were almost identical to theirs. If this carries on, the other companies’ sales will increase back to normal.

Other brands started to imitate them? It’s fine. Feng Yu still have lots of tricks in his mind. In his previous life, he had seen all sorts of promotions. Many of those were invented by the Chinese, and the Chinese were the best in coming out with all kinds of promotions!

Although Feng Yu had not done any promotions in his life, he had seen too many of these. He could easily just name a few and let those companies unable to catch up with them!

……

After the second phase of the promotions, Feng Yu made those companies who bought the authorizations vomit blood again. Those companies thought the second phase was the end, but the third phase of the promotions started!

Summer holidays sales. Students will get a 10% discount.

Those VCD player companies were stunned. What the hell was this promotion?!

VCD players were considered home appliances in the US. How could a student afford it? Even if the students wanted to buy, can they afford it? Anyone who can prove they are students will get a 10 % discount? This will be a fruitless approach!

The other companies were laughing at Wind and Rain, but they realize something was off. Many parents brought their kids to buy VCD players. Their kids were students, but they do not have money. It’s alright. Their parents can afford it.

The tragedy of those VCD player manufacturers started again. Their sales dropped further, and Wind and Rain sales increases.

This type of promotion had purposely left a loophole for the consumers. This will let the consumers feel they had gotten a good deal and had taken advantage of the promotion. But the purpose of this promotion was to sell the products to the consumers and let the brand enter the households!

When the third phase of the promotions started, the second phase did not end. Both promotions were ongoing at the same time. The other VCD players manufacturers were under enormous pressure.

But when the other companies tried to follow Wind and Rain’s promotions, they realized that the results were not satisfactory. This was because those families that wanted to buy VCD players had already bought them, like Wind and Rain and Aiwa’s third phase promotions only lasted for 3 days. Most of the consumers had already purchased the VCD players.

The sales from the 3 days of promotion were more than the previous month’s sales. What made the other companies speechless was this promotion continued after 3 days! The reason given was the consumers wanted this promotion to be extended.

What nonsensical reason was this? The consumers want your VCD players for free. Why didn’t you give in to their demands?

Although the other companies were feeling helpless, they have to admit that Wind and Rain, Aiwa, and AIWA brands were better than them. These 3 companies caused them to have lots of stocks stuck in their warehouse.

The companies noticed another critical problem. The patent authorization fees paid to Wind and Rain electronics was based on the number of VCD players produced and their VCD players remained unsold. They could not make any profits and Wind, and Rain was still collecting the authorization fees from them.

The companies understood why Wind and Rain Electronics did not react when they dropped the VCD players’ prices a few months ago. Wind and Rain wanted them to increase their production.

Now the companies increased their operations and production, Wind and Rain VCD players suddenly drop their prices and come up with so many promotions. Their purpose was to let these companies have a severe stockpile of VCD players.

This blow was heavy.

The companies were stuck in between. If they continue to drop their prices, they will not have any profits. If they do nothing, the sales of all the brands added up will be less than Wind and Rain. They will also have no profits.

The companies finally saw how despicable Wind and Rain Electronics. Initially, the companies felt 50 USD authorization fees were not high, and they thought they had gotten a good deal.

But in the end, it was a trap!

The companies introduced so many brands into the market and won against the traditional VHS and Laserdisc. They thought it was time for them to reap the benefits.

But what was waiting for them was the summer heat. Wind and Rain, Aiwa and AIWA brands were shining like 3 suns burning them!

The companies were suffering under the suns. They could not see the fruits of the labor as they were almost dried out.

Damn! Every one of us planted fruit trees. Your fruits are bigger and tastier, and it’s fine with us. But you turned around and killed all our trees. We did not even see the fruits! The most frustrating part is you are the one who sold us the fruit tree seedlings!

All of us are left standing by the side looking at you sell the fruits.

Sony was the happiest among the companies. Other companies were losing money, and luckily, Sony did not manufacture the VCD players themselves. They had cooperated with Toshiba. They suffered some losses in the VCD player venture, but their VCD discs were selling fast. The discs were more profitable than the players!

The companies that laughed at Sony in the past were stunned.


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