v3 Chapter 1128： Record Empire-PolyGram (1/2)

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?”