Chapter 1729 - Lanxin Company Still Has More Tricks Up Its Sleeves (1/2)

Before T-K Group had time to catch their breath, yet another thing happened which had them completely flustered.

The media ran a major expose on how dubious, exaggerated and false T-K Group’s advertising claims were, how they had violated advertising regulations and how they only managed to achieve their good sales results by way of an ad bombardment strategy to saturate the market.

T-K Group had violated the photo rights of several of its own consumers, overstated the effectiveness of its products and breached several regulations. As a result, the Group received warning letters, sales bans and had several of their advertising rights rescinded.

Sales of T-K Group’s products came to a sudden halt.

A fierce discussion also ignited among the industry and the public.

Country Z’s health supplements association also expressed that they would step up to protect consumer rights by expanding their efforts in monitoring the industry. They would seek to prevent false advertising, exaggerated claims and breach of promotional regulations.

As a result, the use of massive advertising campaigns was no longer a viable option to promote one’s product in Country Z’s health supplements market.

This was undoubtedly a huge blow to T-K Group.

T-K Group’s profitability was in dire straits. They were mired in fines, warnings, sales bans and the cancellation of advertising rights.

They ended up suffering the massive counter-effects of their mega advertising campaign.

Their sales figures fell day by day, as their miracle growth story in Country Z lost its shine. Their company reputation and product image were trampled over by the scandalous reports.

Gu Junling was astonished. “I never realized it can be so easy to knock T-K Group over. To think that we were jumping up and down worrying for you.”

Wen Xinya’s move was called “retreating in order to advance”.

She avoided T-K Group’s direct onslaught but was all the while secretly spying on their every movement.

T-K Group’s advertising campaign was so overwhelming and so aggressive, there was no doubt they would have violated some regulations. It was just that the public didn’t know and the authorities didn’t pursue.

However, all would turn into one big, ugly scandal the moment things were exposed.

Wen Xinya said in a mild tone, “Actually, it is very common to use an ad bombardment strategy. Many enterprises did the same in previous years, and all of them ended up being legally charged for false advertising, violation of advertising rules, etc. Nevertheless, they are still around. None of them collapsed from their scandals.”

In Country Z, the public relied on advertisements to learn about a product or brand. It was the subconscious opinion of everyone that the bigger and flashier an advertising campaign was, the more reputed the brand must be, which in turn meant a higher product quality.

So, in recent years, ad bombardment had become a must-have weapon for a company’s marketing efforts.

This tactic was indeed effective in the short-term.

But at the same time, there was a fine line to be toed, and not everyone had the knack for it. If a company failed to use its products to capture the consumers’ hearts even as they saturated the market, the company would very quickly fall off their pedestal.

T-K Group was the best example.

Ling Qingxuan gave Wen Xinya a thumbs-up sign. She was completely awed by her tactical maneuvers. “T-K Group is not like the other local companies in Country Z. Thanks to their ability to launch a massive advertising campaign, their products managed to overtake the market in such a short period of time. However, they forgot that they are still an outsider, and must first gain a stable foothold within Country Z.”

There was no way they would be able to firmly take over the market if they never had a stable foothold in the first place.

It would be very easy for others to pull them off their pedestal.

Only Wen Xinya was smart enough to think up of such an indirect attack strategy.

It was truly brilliant.

Wen Xinya nodded. “T-K Group was fated to lose the moment they launched their Traditional Chinese Medicine health supplement product.”

A Traditional Chinese Medicine health supplements brand was not something that could be done as and when one wished to.