Agricultural giant since 1983

Chapter 222 Price Reduction
The focus of the decisive battle is Sichuan. Sichuan is a major pig raising province. It produces more than 7000 million pigs every year, which is almost equivalent to the annual output of the entire United States. Therefore, there has been a saying "Sichuan pigs are safe in the world" since ancient times; therefore, who controls Sichuan In the market, whoever basically occupies half of China's feed industry, hopes to become the leader of China's feed industry, and it is also inseparable from their roots in Sichuan.

When Zhengda formulated the development strategy of the Chinese market, it did not ignore this huge market. They first set up a factory in the Special Economic Zone, and then established the Dajiang Feed Factory in Shanghai, the most economically developed country in China, and then opened the third feed factory in Shanghai. Sichuan.

In 1984, Zhengda invested a huge sum of US$280 million to set up a branch in Chengdu, with the ambition to occupy Sichuan and even the entire southwest market. Soon after the company was put into production, it beat the state-owned feed factory to the top with its high quality, high price and advanced marketing strategy. Falling flowers and flowing water formed a situation of dominating one side.

Farmers have to wait in long queues to sell feed, and sometimes they have to deliver cigarettes and alcohol, and go through the back door to get feed. Many state-owned feed factories are facing the danger of bankruptcy under the pressure of Zhengda.

However, with Huinong's entry into Chongqing, expansion to surrounding Dazhou and other places through Chongqing, and the establishment of Hope, the dominance of Chia Tai Group in Sichuan has gradually been threatened.

In particular, the Liu brothers’ Hope Feed Factory and Li Lei’s Hui Nong did not focus on Chongqing because of the broader market, but adopted a balanced development strategy. The main market of Huinong does not overlap with Zhengda. But hope is different, almost all of their energies are put in SC Province.

It used to be that when the company was relatively small, it was possible to live comfortably by eating the leftovers left by Chia Tai and Huinong, but in this way, only a small fortune can be achieved, and it is impossible to become rich and wealthy. Willing to be like this all the time, so he increased the production line and expanded the production capacity, and planned to have a good fight with Chia Tai.

But in the face of a behemoth like Zhengda, the Liu brothers were not very confident, so they pulled Li Lei together, planning to use the power of Huinong to jointly fight against Zhengda.

After Li Lei received the call from Liu Yonghao, he flew from Shanghai to Chengdu. Liu Yonghao took a car to the airport to pick him up. As soon as he got in the car, Liu Yonghao couldn't wait to tell his plan, "I personally brought people to the Sichuan market. I conducted a survey on feed products, and finally found that the products of Chia Tai and our two companies are the best in quality and most popular among the people. The quality of our two products is obviously not inferior to Chia Tai, but the sales volume is far behind. I am definitely not reconciled , I think you are not reconciled, so we must bite off a piece of meat from Zhengda this time!"

"This elephant, Zhengda, has a lot of meat, even if we bite off a piece, it will be enough for us to eat for a long time!" Li Lei also wanted to wrestle with Zhengda.

"Hey, I still remember the shock when I visited Zhengda with you. Six years have passed, and now I can finally stand on the same starting line as Zhengda. Thinking about the development of these years, it is really not easy! "Liu Yonghao said with emotion.

I hope that in these years, in order to improve product quality and reduce production costs, a lot of effort has been made. Liu Yongxing and Chen Yuxin are personally responsible for product development and configuration, and hired more than 20 experts from all over the country to tackle key problems. At the same time, they also learned from Li Lei. There are methods such as replacing fish meal with silkworm chrysalis and using computer technology to aid development.

In addition, they adapted measures to local conditions, took advantage of the relatively developed milk industry in Chengdu, and cooperated with dairy companies to purchase milk waste and industrial milk powder from them. After repeated trials, they achieved the goal of reducing costs and meeting the growth needs of piglets. .

With the advantages of high quality and low cost, the Liu brothers have the confidence to fight Zhengda. Now with the assistance of Li Lei, the Liu brothers feel that this battle still has some advantages.

When they arrived at the Hope Feed Factory, the two got out of the car together. Liu Yonghao said, "You must be hungry after getting off the plane. Let's eat first, and then go to rest after eating. Let's talk about business tomorrow!"

"Let's get down to business first. If you don't get this right, I'm afraid you and I won't be able to sleep well at night!" Li Lei saw the uneasiness in the eyes of the Liu brothers, and if he really wanted to rest early, why not? Want to come to the feed factory?Wouldn't it be more convenient to go directly to Liu's mansion?

"Haha, that's right. I asked the cafeteria to cook first. Let's chat for a while!" Liu Yonghao took him into the conference room. Liu Yongyan, Liu Yongxing and Chen Yuxin had already been waiting inside. The main management personnel who are promising, as well as Wang Feng and Huinong's key members in the eastern Sichuan region who came here from Chongqing, will be up to them in the decisive battle.

"Don't be polite, the business is important, let's talk about your ideas first, and we will cooperate as much as we can!" Li Lei went to the upper left and sat down in the empty seat, ready to listen to Zhengda's plan first. Hope is more important.

Sichuan is Hope's only market now, but it is only a part of Huinong and Zhengda. The Sichuan market is definitely important, but it is not the only one; if Zhengda loses this battle, at most it will only lose some territory. But there is nothing left.

"Fourth brother, you should talk about it first!" The boss Liu Yongyan asked Liu Yonghao to explain the hoped plan to Li Lei. Among the brothers, Liu Yonghao was the best at expressing, so he was usually responsible for these things.

"Okay, first of all, I would like to thank the colleagues of Huinong for their help, and they can lend a helping hand to us at this critical time." Liu Yonghao first expressed his thanks.

"This is not necessary. Firstly, we also want to have a try with Zhengda. As long as we are in the feed industry, we will have this day sooner or later. It is definitely better to train the team earlier than later; secondly, if we win Zhengda, we can also Occupy more markets.” Li Lei said honestly that he was willing to join hands with Hope not only because of Liu Yong’s good relationship, but also because of his own interests.

Having said that, I hope that the people over there will be more at ease. If it is only based on the relationship, then the help Huinong can give to Hope is quite limited, and Huinong himself has interests in it, so they will definitely do their best in this battle. to fight.

"Let's analyze each other's strengths and weaknesses first!" Now that there is no PPT, Liu Yonghao wrote with chalk on the blackboard to show everyone.

"The advantage of Zhengda lies in its strong financial strength, advanced technology, excellent production management, and good brand effect." Nowadays, Zhengda is almost a blow to dimensionality reduction in China. Compared with most domestic feed companies, Zhengda has huge advantages in almost every aspect. Advantage.

Liu Yonghao just talked about Chia Tai's advantages for several minutes. Except for Li Lei, everyone else was a little restless. Competing with such an opponent, can we really win?
"Everyone is scared? No matter how big the gap between us and Zhengda is, how can it still be as big as the gap between the volunteer army and the American devils? Back then, our fathers were able to win the war, but why did we lose our belts before the war started? Does he look like a man!" Liu Yonghao suddenly raised his voice.

Everyone in the audience cheered up. Yes, Zhengda is indeed powerful, but we are not vegetarians. Back then, our fathers defeated the American devils under such difficult conditions. Don’t we even have a fight with Zhengda? dare?This is too embarrassing.

"Be strong! Don't worry that Zhengda is too powerful, we are not without advantages! First of all, our cost is lower than Zhengda's. This is mainly because our raw materials are cheaper than Zhengda's, and the labor cost is not as high as theirs!" Taking advantage of this Opportunity, Liu Yonghao began to sort out the advantages of hope.

"Also, Zhengda's management is mainly from outside, and they are not as familiar with the local situation as we are. They can't even speak Sichuan dialect, so how can they deal with pig farmers?"

After saying this, the people below all laughed. They had indeed seen the executives of Chia Tai Chengdu communicate with the common people. Basically, they talked with each other, and both sides felt uncomfortable.

Although Zhengda executives all speak Mandarin well, but after so many years of popularization of Mandarin, there are still many old people who can't understand it, let alone now?Many pig farmers can only speak Sichuan dialect, and it is really troublesome to communicate between the two sides. If Zhengda executives want to understand the ideas of pig farmers, they can only convey them through local people, which is definitely not as smooth as direct communication.

Although Huinong is also from other places, most of the management of the Chongqing branch are recruited locally, so this problem does not exist.

"Let's talk about the quality. Zhengda's feed for piglets is really good. If you eat a catty and grow a catty, the baby pigs can grow to more than 40 catties in two months. The feed from other feed factories in the province can only grow to about [-] catties. We hope that the feed from Huinong is not bad, and we can reach the level of eating a catty and growing a catty, and growing to forty catties in two months, so in this respect, the gap between the three of us is very small!"

Liu Yonghao mentioned a few more advantages of his own side, and then began to summarize, "We are comparable to Chia Tai in terms of quality, and we have certain advantages in terms of cost, so the next strategy we should adopt is very clear! That is to reduce prices!" Liu Yonghao improved He turned around and wrote two big words on the blackboard.

"In the face of such an opponent, we can only take the path of small profits but high sales, using quality to restrain quality, and price to restrain price competition strategy! What do pig farmers care about most? It must be price. A 200-jin slaughtered pig needs to be eaten. There are more than 500 catties of feed, and the purchase price of woolen pigs is only RMB 300, [-], [-] and [-], which means that raising a pig can be sold for less than [-] yuan, and after several months of hard work raising pigs, each head can only earn a hundred and ten yuan!"

Liu Yonghao settled the accounts for everyone on the small blackboard, "If we can reduce 60 yuan per ton of feed, then pig farmers can earn more than ten yuan per pig, and the profit rate will immediately increase by 20.00% or even [-] %, I don't believe they are not tempted!"

"Ten yuan is not too old or young!" Everyone nodded. Nowadays, there are regular workers in good units in Chengdu, and their monthly salary is only about [-] yuan. Ten yuan is equivalent to one-tenth or even five cents of their salary. one.

At present, the annual net income of Sichuan farmers is only about 600 yuan, an average of 50 yuan per month, and ten yuan is equivalent to one-third of the monthly net income. If the family raises two more pigs, it will save money by buying feed alone. The money is equivalent to their monthly income. This discount rate is undoubtedly very powerful.

Nowadays, farmers spend every penny carefully, and they will not be able to live without it. Ten yuan is definitely a big number for them.

To use a more intuitive analogy, it’s like when you’re planning to buy a house, you’ve already chosen a mortgage bank, but suddenly a new bank comes and tells you that if you take a loan with them, the monthly mortgage is [-]% lower than other banks Ten, do you need to think about which bank you will choose?

"This preferential price is just right. If the price is too low, the impact on pig farmers will not be so great, and the promotion effect will not be very good; if the price is too high, our profit is too thin. A reduction of 60 yuan per ton is fine. Impressing pig farmers, and guaranteeing a certain profit rate! Then we, Huinong, can also reduce the price by [-] per ton!" Li Lei calculated silently in his heart, and expressed his approval of this plan.

"Then it's settled. Let's discuss a time and then lower the price together. I'm done talking. Is there anything Boss Li wants to add?" Liu Yonghao asked.

"Restraining quality with quality and restraining price with price are good words, but they are not enough. In addition to quality and price, marketing is also very important! So I would like to add one sentence, that is, restrain the market with the market! Zhengda is in Other countries like to use prize promotions, which used to be useless in China because they were not available, and after we declare war on them, they will definitely come up with it!"

"That's why we also want to carry out promotions with prizes, and the prizes must be bigger than Zhengda's! The grand prize can even be given a tractor directly!"

"The tractor is good. Now who in the village doesn't want to have a tractor? This award is definitely attractive!" Liu Yongyan and others knew that Li Lei was taking this opportunity to promote his own Shifeng tractor, but they had to admit that the award was really suitable .

"Prize promotion is like a stimulant. It can only play a temporary role. A comprehensive sales network is the foundation. I suggest that both of us deploy capable sales staff, sink to the towns and towns to set up sales points, and drive the cars we use as prizes. tractor to promote to the local people to attract them to buy our feed!"

"Even for some large pig farmers with good reputation, we can also offer a sales strategy of using the feed first, and then paying back when it works!" Many feed factories and pig farmers will adopt this cooperation model in the future, but now The vast majority are still in cash.

After Li Lei finished speaking, the managers of the two companies also spoke one after another. This meeting lasted until late at night, and everyone was so hungry that they couldn't stand it before it ended.

The meeting continued the next day, and finally reached an agreement. Next, we will start preparations in secret. After the Spring Festival, we will launch a surprise attack on Zhengda, and both parties will lower the price together!Sha Zhengda was caught off guard.

　after twelve o'clock
　　
　
(End of this chapter)