We are all reborn, who wants to be the richest man?

Chapter 612 Watson's Battlefield
Capital Daily Chemical Factory No. 2, a daily chemical factory that was once not valued by its superiors, has recently become a hot spot in the entire capital.

The reason is that someone wants to buy the brand rights of Panda laundry detergent produced by the Second Daily Chemical Factory, and the buyers are not just one company, but two international daily chemical giants competing.

Initially, it was Baojie who found the Second Daily Chemical Factory first and wanted to buy the brand usage rights of the Second Daily Chemical Factory and Panda Washing Powder for 1.4 years for RMB million.

It also invested in a joint venture with the Second Daily Chemical Factory to use the most advanced management model to increase the market share of Panda laundry detergent.

Of course the capital was willing to accept this pie-in-the-sky opportunity, but they didn't know that the two sides had just started to make contact.

Bang, a bigger piece of pie fell down.

Watsons entered the market and directly raised the price of brand usage rights to 1.6 million.

So since the beginning of the year, the two sides seemed to be competing with each other and kept pushing the price up to 2.1 million RMB.

The Watsons office building in the capital is Watsons Rabbit’s second headquarters after Shenzhen, and is specifically responsible for the northern market.

Li Yi, the former general manager of Guangdong and Fujian provinces, has now become the head of Watsons China on the Rabbit side.

But normally he is based in the Pengcheng headquarters. This time he came to the capital to compete for Panda laundry detergent.

"Hmph, decapitation operation.

In North America, P&G can suppress us, but this is Asia, our home base, and they are taking it for granted that they can easily enter our market."

In 1992, European and American foreign brands entered the rabbit market in large numbers.

But they soon discovered that their brand had no competitiveness here at all, so they developed a decapitation strategy.

The method is very simple, which is to acquire local brands at a price that the other party cannot refuse, and then penetrate into the market completely.

First of all, such an acquisition can quickly obtain the other party's complete sales channels so that one's own products can quickly achieve market layout. Another is that it can make the acquired brand increase its price, making one's own brand more cost-effective and avoiding price wars.

Watson discovered the other party's intention and formulated a counter-beheading strategy.

Just like Panda laundry detergent, this brand of Capital Daily Chemical Factory No. 2 is now the largest laundry detergent manufacturer with an annual output of 60,000 tons of laundry detergent, enough for 10 million people to use in a year.

There are white cats in the south and pandas in the north. This sentence can also reflect the current situation of the rabbit laundry industry in the past.

However, the White Cat in Shanghai has always been one step ahead of the Panda, and they have no intention of forming a joint venture.

In this case, Panda laundry detergent becomes the key and the focus of competition between the two sides.

"Mr. Chen, both of us are in a difficult situation now. The other party cannot continue bidding with us endlessly. They will definitely think of other ways."

"Well, that's for sure." Chen Yi also knew this.

"But the other side has two ways: one is to go through the official route, and the other is to smear us and start a price war.

The second method is basically impossible. Our Watsons daily chemical products are all high-end and more expensive than products from companies like Procter & Gamble.

As for our joint ventures in the mid- and low-end markets, they are mainly concentrated in the south, so smearing us will not be of much significance to their acquisition of Panda."

Currently, Watsons only has two joint venture brands, Vitality 28 and Guilin, in the market of Rabbit affordable laundry detergent.

These two brands have just increased their production capacity and are currently competing with each other in the southeastern coastal market, which is White Cat’s stronghold. They will not be able to cover the northern market in a short period of time, otherwise Watsons would not have given up an inch on Panda laundry detergent.

It was just as Chen Yi thought, a price war was impossible to fight. Watsons was not a small cat or dog, and P&G could not win and did not want to fight.

Terrence, the person in charge of rabbits at P&G, went directly to the U.S. Consulate and the chairman of the U.S. Rabbit Chamber of Commerce, hoping that they would help mediate the matter.

At P&G's headquarters in the capital, Terrence was all smiles after seeing off the ambassador.

"It is basically certain that we have won the battle for Panda laundry detergent. Let's work out a plan as soon as possible and quickly spread our products across the northern market before the other party has the production capacity to expand into the northern market."

Guilin laundry detergent is mainly active in three or four provinces in the southwest corner. At present, this is the limit of their production capacity.

Watsons' Vitality 28, which is being vigorously developed, adopts the strategy of expanding internally first and externally later. In the early stage, it has quickly seized the inland market due to the lack of strong competitors.

Now the production of the new factory that has been completed by Vitality 28 is prepared for the southeastern coastal areas. Relying on vigorous publicity and technological advantages, it has already entered the private territory of White Cat. Before the new factory is built, Vitality 28 can only watch the northern market.

Terrence knew this, so he wanted to quickly unify the northern market and then head directly south after consolidating it.

By then, the battlefield in the south will have ended in a residual victory, and P&G will have recovered its strength.

Liu Yi received the news that evening.

"So the higher-ups have decided to sell the Panda brand to the other party?"

"There's no way. The relationship between the two countries has just improved, and there are many issues that need to be considered."

There was silence on the phone for a while, and the other party knew that Liu Yi was angry at the moment.

If Watsons daily chemical products alone were not enough to be a concern, then behind it is the Watsons Group, and behind it is a behemoth like the Far East Group.

Others might not bother to explain, but this person won’t.

Watsons was obviously wronged in this acquisition case, and the higher-ups have already told it that it must do its best to appease the people.

"Mr. Liu, I know the Panda brand is important, but I..."

"I know this is none of your business," Liu Yi interrupted the other party, knowing that the other party could do nothing about it.

"I can give Panda to P&G, but I have two conditions."

"Please tell us. We will never refuse as long as we can do it."

"That's it."

A month passed quickly, and after several rounds of negotiations between P&G and Daily Chemical Factory No. 2, P&G finally made concessions.

The two parties jointly built a factory based on the second daily chemical factory, with P&G holding a 60% stake and acquiring the right to use the Panda brand for the next 2.27 years at a price of RMB 50 million. After the contract was signed, Terrence began to promote P&G's Tide and Ariel through Panda's channels by increasing the price of Panda laundry detergent by % without changing the formula and volume.

Foreign products are priced similarly to domestic brands. Tide and Ariel have captured 4% of the market share in the capital in just one week, and this share is still rising rapidly.

"Our strategy is correct. The next step is to follow this model and expand to the surrounding areas with the capital as the center."

Terrence shouted loudly at P&G's headquarters in the capital, saying that this was his achievement and he would achieve success in the rabbit market.

……

A wholesale store in Dongcheng District, the capital.

"Lao Fu, Lao Fu."

"Hey, Mr. Qin, I don't know what brings you here." When talking to him, Lao Fu's eyes were obviously evasive.

Mr. Qin is the sales manager of Procter & Gamble, and is responsible for the capital city, while Mr. Fu is a very powerful distributor in Dongcheng District.

"Lao Fu, what's going on recently? You haven't received any goods for a week."

During the first week when P&G promoted Ariel and Tide, Lao Fu asked for products almost every day.

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I heard that he rented a large factory a week ago and ordered a lot of goods, but it is still very abnormal that there was no order for goods in a week.

"Well, it's true that your laundry detergent hasn't been selling well recently, and I bought too much last time so I didn't place an order."

"bad business?"

Manager Qin was a little confused. Washing clothes is just like eating. How much can you save every month? It's not right for sales to drop so much all of a sudden.

"Mr. Fu, give me two thousand bags of Vitality 28 laundry detergent."

Just as he was thinking about it, a voice at the door gave Manager Qin the answer.

When Lao Fu saw that the truth was revealed, he looked at Manager Qin awkwardly, but he still got back to business.

When the other party paid the money and took the receipt to go to the warehouse to pick up the goods, Manager Qin stared at Lao Fu without saying a word. His eyes clearly showed that he needed an explanation.

"Manager Qin, you have seen that all the stores that come to me to wholesale laundry detergent want Vitality 28. I can't just pass up the money, right?"

"Vitality 28, Lao Fu, where did you get this stuff?"

Vitality 28 He knew that the company sent a large number of sales managers to surrounding cities in order to quickly seize the market and prevent Vitality 28, the biggest threat.

But didn't it say that if Vitality 28 wanted to meet the needs of the northern market, it would take at least a year to increase production? Now that their supply in the southeastern coastal areas was tight, how dare they open up a new front in the north?
"Where did the goods come from? Someone came to me and asked me if I wanted to become an agent of Vitality 28, and then I agreed and purchased the goods."

"I mean where do they get the goods?"

"How should I know?" Lao Fu answered confidently.

"What's the price?".

"One dollar and three cents."

"How much?" Manager Qin couldn't believe his ears.

"One dollar and three cents" is not a trade secret at all.

"How much is it?" Manager Qin asked again.

"The retail price is two dollars, but I sell it for one dollar and sixty cents."

The matter has become serious, and Manager Qin has discovered its seriousness.

Panda laundry detergent used to cost two yuan, but after the price adjustment it now costs three yuan, the same as Tide and Ariel, so no one buys Panda laundry detergent anymore. They all buy foreign brands with better formulas.

But now Vitality 28 has brought laundry detergent back to the two-yuan era, and ordinary people will choose it with their eyes closed.

The key is the shipping price. We give a profit of 30 cents per bag to distributors like Lao Fu, which is 5 cents more than the previous Panda laundry detergent and the current Procter & Gamble products. Which product would you promote?

Manager Qin did not stay for long and had no time to care about Lao Fu's purchasing problem. He had to hurry back to the company to report the situation.

That afternoon, Terrence, who had been happy for only two days, became so angry that he started throwing cups in the office.

"Fuck, we've been tricked. This is fraud and a commercial crime."

Do you remember the two conditions Liu Yi proposed? The first was to delay the process, and the second was to get the higher authorities to agree to Watsons' acquisition of other domestic daily chemical factories.

Let me give up Panda laundry detergent? Sure, but Liu Yi won't miss such a good opportunity.

Watsons has acquired more than a dozen laundry detergent factories of all sizes in the north, including Shandandan in Xi'an, Sanwei in Shenyang, Yunquan in Zhangjiakou, and Minghua in Luoyang.

Why did Terrence say this was a fraud? It was because the annual production of the Panda brand that P&G acquired for 2.27 million yuan was only 28 million tons, while the integration of Watsons directly increased Vitality 's production capacity by more than tons.

The key point is that according to the limited information Terrence has now obtained, Watsons spent less than 200 million to obtain such a large production capacity.

Regardless of Terrence's condition, Liu Yi's decisive decision made Li Xiang praise him highly.

"You did a great job on this matter. Now P&G is like a trapped beast in the Colosseum. Not only have we dampened their advantage, but we have also opened up our northern market."

"Boss, you're too kind. If you hadn't made the final decision, I wouldn't be in this position now. I'm glad I didn't embarrass you."

"Haha, you are really good at flattering people. The credit is yours."

Liu Yi smiled and asked, "Boss, why are you here this time?"

Li Xiang's originally relaxed expression suddenly turned serious, "The war has started, I'm worried."

(End of this chapter)