Chapter 569 - The Situation (1/2)

The purpose of Zhang Dashan’s arrival at Xiahai was more than catching up with Xiao Luo. He also intended to share some of Xiao Luo’s workload here. After all, the business of Luo’s Workshop headquarters in Jiangcheng was pretty much stabilized, and it would not make a difference with his absence. However, Xiahai was different. The work in Xiahai was as good as venturing into an unknown land, and a tough fight with the local merchants was expected.

It was the beginning of the month and Luo’s Workshop’s grand opening in Xiahai!

Before this took place, Luo’s Workshop had already employed plenty of marketing and public relations strategies. The promotional events in various retail stores have been kicked started too. Guided by their market research, the sweetness of all their pastries and cakes was reduced to suit the preference of Xiahai consumers. On top of that, the variety of their products had been increased based on the feedback of their prodigal researcher, Luo Qi. Luo Workshop now offered at least thirty more varieties of products compared to Sumir.

However, besides the initial popularity thanks to their grand opening, the retail stores of Luo Workshop had seen a major plunge in sales and could not retain the consumer base as good as Sumir. On the other hand, Sumir was totally unaffected by Luo Workshop at all.

[At Luo Workshop Xiahai Division]

Xiao Luo was seated on the center chair in a smart black suit, his right hand drumming on the table rhythmically. Before this, he would never believe that Luo Workshop could have failed miserably like now. Everyone knew very well that Luo Workshop had ample time to prepare themselves in this war, and they had spare no effort in the research and development of products, marketing, and retail store decorations. In summary, Luo’s Workshop had changed substantially according to Xiahai’s historical and cultural basis to better attract the Xiahai customer base.

“Everyone, tell me about your take on this issue.”

Xiao Luo announced slowly as he knew that Luo’s Workshop needed more than just himself now. They had to brainstorm and relook at their brand strategy and determine the root cause of the problem.

Besides Zhang Dashan, Li Zimeng, and Luo Qi, key members of Luo Workshop’s higher management and the retail managers were also present. They even did a simultaneous video conference with the senior management members from the Jiangcheng headquarters. In other words, every key stakeholder was present at this meeting. Zhang Dashan had solidified his position as the second in command, so Xiao Luo did not have to worry about overshadowing his power in this meeting.

A man stood up and expressed his opinion. “President Xiao, I believe that the people purchase products from Sumir out of a habitual reason,” he said, “Five years ago, there was a bakery franchise named ‘Feixue’ trying to enter Xiahai’s market, and they too were met with the same reaction as we have.”

Xiao Luo nodded and asked, “What do you think we should do to solve this problem?”

“Old habits die hard, and trying to change the habits of Xiahai consumers would undoubtedly be a lengthy process. Besides, we cannot allow this deficit to drag on too, so we have to change from within,” the man answered.

“Go on.”

“According to my research, eighty percent of the consumer demographic belong to senior citizens. They are more concerned about healthy eating and physical wellbeing. So if our company could come up with a pastry made of traditional Chinese medicine and sell it with the effects of reducing high blood pressure and cholesterol, I strongly believe that this product would be a hit!”

Luo Qi reacted immediately and responded, “We are no doctors and know nothing about Chinese medicine. How could we develop such a pastry?”

“Director Luo, that is a form of marketing strategy. Our pastry doesn’t really need to possess such effects. All we need is to have our customer to believe that it is true.”

“Isn’t this lying?”

Luo Qi frowned and turned to Xiao Luo, “Big boss, this is a bad move. We cannot do that, ever. The company’s credibility must come before all else, especially in the food and beverage industry. If our name is ever tarnished, then it would be extremely difficult to regain our customers’ trust.”