v3 Chapter 1128： Record Empire-PolyGram

Huo Jianning looked a little dignified, and slowly said: "The first problem is cost. The production process requirements for CD discs and CD walkmans are very high, and production costs cannot be lowered temporarily."

"The production department has done a detailed calculation. If the annual output is set at 100,000 units, the cost of each CD player will be 162 US dollars. This cost is very close to the Tiangong SP-S1 walkman. Wholesale price!"

"Considering a series of uncertain costs such as the company's operations, follow-up technology R&D investment, and marketing, the ex-factory price should be controlled at 575 dollars, and the unified official retail price would have to be around 760 dollars. ."

"The price is too high, more than three times that of Tiangong SP-S1 Walkman."

"Such a high price will seriously hinder the development of the CD walkman market, and sales prospects are uncertain."

"So now the company can't make a final conclusion about whether to launch it now, or to research and develop for a period of time to address the cost issue, and wait for the cost to drop before commercial production."

After speaking, Huo Jianning looked straight at Xia Yu, waiting for his opinion.

The inability to reach a consensus within the company actually means that he is still hesitating. If he is the president of the company, how can the people below dare to object?

It is not that simple to introduce a product to the market, especially if this product is used to open up the market for the first time. If it succeeds, it is good to say, if it fails, the impact will be very large.

Even if it succeeds, it is not easy to sit back and relax, because the high price will limit the number of customer groups, even if it has an early advantage, as long as similar products can be sold at low prices, they can quickly seize the market.

What Huo Jianning considers is whether to continue to reduce costs, and then seize the market as much as possible at one time and occupy an absolute leadership position, so that even in the face of later competitors, he can calmly respond to the competition.

Xia Yu thought for a while, narrowed his eyes, and said in a deep voice, "I know your worry, but since the product has been developed, don't waste time."

"It doesn’t matter if the price is high. Low prices have low-price marketing models, and high prices have high-priced marketing methods. The key is how to market. There is no shortage of rich people in the world. Some of them are enthusiasts of Walkman. Target this group of people to make a fuss."

"As long as our products take these people down, they will naturally help us publicize, and our market position can be taken first."

"The window period before other competitors launch the same product is the time for us to work hard to reduce costs. This requires you to work harder, Dr. Lu."

"After our peers launch similar products, we will launch a second offensive to bring cost-reduced products to the market and continue to seize the low-end market."

Upon hearing this, Lu Chao resolutely said: "Chairman, I will definitely go all out!"

Xia Yu looked at Huo Jianning thoughtfully, and suggested: "Jianning, I have an idea in terms of marketing. You ask distributors all over the world to investigate all the fans of the Walkman. When the product is released In addition to responding to media resources, we also need to invite these influential fans to the scene, who are the spread and fermenters of our word of mouth."

Huo Jianning nodded and said: "Chairman, I understand, I will do what you say."

Xia Yu smiled and nodded, and asked casually, "What is the second question?"

Huo Jianning converged on the smile he had just shown, and took a deep breath and said: "Chairman, this second question is about CD records. CD records are a brand new market, unlike the vinyl record market that already exists, so we develop At the same time as the CD player, the CD record market must also be developed."

"There is not enough supply of CD records, and consumers can't use CD Walkmans."

Hearing this, Xia Yu already understood what Huo Jianning meant, and his brows wrinkled.

This is indeed a big problem.

He thought for a while and asked: "Since you have considered this issue, you should have thought about how to promote CD records?"

"Chairman, we have analyzed it."

"This has to be linked to the current global music market. There are now two modes of record production. The first is asset-light management. Music companies do not have their own record production plants, but entrust albums to professional record production plants. Recording; the second is asset-oriented management. Music companies operate across the entire industry chain. Music companies have their own record recording factories, and they produce albums by themselves. Your Universal Music Company is the second mode."

"Because of the technical problems of CD records, the cost of a recording device is five times that of mature vinyl record recording equipment, and the cost of CD discs is also higher than that of vinyl tapes."

"So when the market is uncertain, other music companies and record production companies don’t necessarily invest heavily in buying CD recording equipment from us, or even deliberately fight against them. After all, CD records are competitors of vinyl records and we have violated The interests of the original interests."

"Your Universal Music Company will definitely support it, but Universal Music Company's music copyright is very limited. UU Reading can not listen to our Mandarin and Cantonese songs in Europe and the United States."

"In fact, this is the most critical issue, which is difficult to solve at the company level."

"The most obvious thing is that Polygram International Co., Ltd., the world's largest music giant, is now suppressed by Universal Music in Hong Kong, but its music library is much stronger than Universal Music."

"I deliberately investigated that the predecessor of Polygram International Co., Ltd., DGG/PPI Group, was formed in 1962 by the merger of Philips Records under Philips and the world's most famous classical music record company under Siemens. In the same year, it acquired the famous British classical music company Deca Records. Originally, Philips Music acquired Macquarie Records in the United States. Therefore, PolyGram International Limited’s influence and music library spread all over the world."

"Now Polygram International Co., Ltd. has only two main shareholders, one is Philips in the Netherlands and the other is Siemens from West Germany. Philips is our main competitor, so we dare not go to Polygram International Co., Ltd. As long as you find it, you will be known by Philips. Philips will definitely not let Polygram International Co., Ltd. cooperate with us. If the news is learned by them, we will be extremely passive."

After Huo Jianning finished speaking, he suddenly felt relieved.

This problem has been in his heart for a long time, but the chairman Xia Yu has never come back, and the CD player has not been developed before, so he waited until now to talk to Xia Yu.

In his opinion, at this level, only the chairman of the board can solve the problem, and he is helpless.

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