The fishing ground I opened has become a national leisure destination

Chapter 356 Liu Na's Shock

"It's hard for people to refuse 2 yuan ice cream, 4 yuan lemonade, 6 yuan fruit tea, and the average price of milk tea is only 8 yuan." Chen Yuan smiled indifferently.

“Isn’t this price too low?”

Compared to Chen Yuan's indifference, the surprise on Liu Na's face gradually turned into a solemn expression. "Nowadays, milk tea on the market basically costs more than ten yuan a cup, and the high-end ones can even sell for dozens of yuan."

"In the eyes of consumers, you get what you pay for. It is difficult for cheap products to be good. For the same product, with such a price difference, I am afraid that many consumers will consider the quality issue."

Although Liu Na is not responsible for product development strategy, the premise of market development requires absolute understanding of one’s own products. Otherwise, if one does not even know her own products, how can she market them in the open market and how can she promote her products?
The fact that Liu Na can see at a glance the hidden problems brought about by the differences between products and markets shows that she is indeed capable.

"Attracting people with low prices is the first strategy of the Three Sheep Milk Tea Company and an absolute factor for a counterattack after future listing." Chen Yuan remained calm.

He understands the current market.

To be honest, with the market economy having lasted for 15 years, it can indeed be described as prosperous. In recent years, not only the market economy has been strong, but the people's happiness index has also been very high.

With money in their pockets and food in their hands, many consumers will still pursue refinement. Even Pinxixi, which is about to be established in a few months, was ridiculed by countless people and mocked by major e-commerce platforms after choosing its strategic direction.

However, in a few years, we will find out how correct it is to focus on the sinking market and take the low-price route, and how attractive the differentiation brought by the price advantage is.

Without mentioning anything else, just comparing with peers, those brands that focus on high-end tea drinks have indeed been very popular in recent years, with various valuations being ridiculously high, and they have successfully raised funds and even gone public.

And the market value at the beginning of listing was also frighteningly high.

But as time went by, the market value plummeted, and capital was no longer optimistic about these high-end brands. Instead, they appealed to customers with low prices, and the products of the king of low prices came from behind.

Its valuation and market value have both surpassed others.

The core elements can be summed up in four words: win people’s hearts with low prices. This is the first element in achieving a counterattack.

"You want to develop Three Sheep into a listed brand?" Liu Na was even more surprised. Her eyes widened and she stared at Chen Yuan in surprise.

There was still surprise in his eyes.

It was a rural milk tea shop, and the employee was just an employee who had learned in the milk tea shop for a period of time. Then he opened his own shop and wanted to go public.

If I tell this to others, I don't know how much I will be laughed at.

Is it a daydream or a fantasy?

“I know it’s a difficult road, but it’s not impossible.”

Chen Yuan could understand Liu Na's feelings at the moment. If he were in her shoes, he would also think that this idea was a bit of a daydream. It was good enough that Liu Na didn't directly say that he was too ambitious.

"If we simplify the milk tea industry, there are only two steps. The first step is to seize the market, and the second step is to expand brand awareness. The next step is to compete with capital. In other words, it is an industry that competes with capital."

Chen Yuan continued slowly.

"So what is your plan?" Liu Na did not directly deny Chen Yuan, but continued to listen patiently.

Since Chen Yuan dares to think so, I would like to see what plans he has.

"The first is scale, which is the market expansion stage. If a milk tea brand wants to be successfully listed, it must have a guaranteed number of stores in the market and sufficient influence."

"The expansion plan of Three Sheep Milk Tea is different from that of other milk tea brands. In the early stage, we will abandon first-tier cities and start from third- and fourth-tier cities, and then expand to second-tier and first-tier cities step by step."

Chen Yuan took out a cigarette box, lit a cigarette, took a deep puff, and talked about his plan.

"Directions are OK."

Liu Na nodded slightly, agreeing with this plan.

Those high-end brands have already covered first- and second-tier cities. Although there are no market gaps in third- and fourth-tier cities, at least they have not yet been fully occupied.

This is also a market that many small brands like to enter.

After all, the market share in first- and second-tier cities is very small, and there are so many high-end brands. The cost and risk of competing are high, and it is totally not worth it.

To compete for the market in third- and fourth-tier cities requires relatively small investment and low difficulty.

If there is really an opportunity, it is possible to surround the cities from the countryside.

“But even so, there will be many small brands in third- and fourth-tier cities, and the competition among multiple parties is equally difficult.” Liu Na changed the subject slightly.

"So this reflects the strategic significance of low-price appeal."

Chen Yuan smoked a cigarette, raised the corner of his mouth slightly, and smiled: "These days, pursuing cost-effectiveness is also very important. As I said just now, it is difficult for people to refuse 2 yuan ice cream, 4 yuan lemonade, 6 yuan fruit tea, and the average price of milk tea is only 8 yuan."

"In addition, we also have preferential treatment for franchisees, such as 0 franchise fee, free training, and even the signing of business betting agreements."

When Liu Na heard this, her brows furrowed even deeper.

"Two questions."

She raised a finger, her expression slightly serious, "First question, you haven't solved the consumer psychology I just mentioned, the price difference, how to make consumers believe in the quality issue?"

Then he held up his second finger, "Secondly, the franchisees who expand the market basically rely on franchise fees as their main revenue. If you cancel the franchise fees and provide free training, it will definitely require a huge investment. Are you sure you can afford it?"

For any industry product, when expanding on a national scale, there is a very important revenue indicator, and that is the franchise fee.

Not only does Chen Yuan have to cancel it, but he also has to provide free training, which means that a lot of manpower and material resources will be invested, which will consume a huge amount of costs.

What's more, it is a new product with zero foundation, and the cost required to attract people to join is huge.

It’s not that Liu Na looks down on Chen Yuan, but with the current scale of Yucheng Village, the tea beverage brand might not even be established yet, and instead drag down the entire Yucheng Village project.

"This brings us back to the topic I was talking about just now. The tea beverage industry is an industry that competes on capital." Chen Yuan remained calm, with a confident smile on his face.

Liu Na was very curious.

What is the so-called capital that Chen Yuan refers to? Can it really support the expansion of the tea shop? Or, under this model, can it really achieve expansion and profitability?

"Let me answer your first question first."

Chen Yuan took the last puff of his cigarette, threw away the butt and said, "There is no such thing as cheap goods, but each brand has its own target audience, and sometimes people are often mentally prepared for low prices."

"Under this basic premise of not rejecting or expecting anything, if you can achieve a certain level, it can often give people a pleasant surprise."

As the saying goes, the higher the expectations, the greater the disappointment.

High-end brands are expensive, so even the slightest problem can easily cause a psychological gap, whereas brands with an affordable strategy can actually be a pleasant surprise if they perform a little better.

This is the effect of expectation gap.

"I understand what you mean, but you also said that we need to achieve a certain level to bring about a contrasting surprise, which means that there are requirements for both quality and cost." Liu Na said. The meaning is obvious, how to achieve a balance between cost and profit.

To put it simply, it is about how to achieve profitability while ensuring a certain level of quality and the principle of a low-price strategy.

If you just use the low-price strategy as a gimmick, burn capital to seize the market, and then hope to adjust the price after occupying the market, then there is basically no chance of success.

"Two o'clock."

Chen Yuan calmly held up a finger and said, "First, the so-called surprises include not only the taste of the product, but also the quality of service, marketing strategies and activities, as well as brand image and positioning. These strategies all have a positive effect on the brand."

Don’t underestimate the service. Mou Lao has put a lot of effort into it. It’s almost like a meme that has made the whole network aware of it, which has a great boost to the brand.

In the tea beverage industry, Mouyan has also achieved these goals to the extreme, becoming the brand with the lowest negative review rate in the entire industry, and the only one with a negative review rate below 2%.

If Chen Yuan wants to develop a tea beverage brand, he will definitely play to his strengths and avoid his weaknesses, and refine the advantages of the successful brands from his previous life.

"second."

Chen Yuan continued to extend his second finger, "By the way, let me talk about the second question you just mentioned. How to control costs and achieve profitability while ensuring the benefits of zero franchise fees and free training, as well as quality surprises? I can only say three words for this: supply chain."

If you want to play with the cost-effective strategic model, you must build your own supply chain.

Read the error-free version at 69shuba! 6=9+shu_ba is the first to publish this novel.

That is, by building our own raw material bases, warehousing, logistics and transportation centers, etc., to reduce costs.

Focus on raw materials, mainly self-production.

Only by doing our utmost to reduce costs can we implement the low-price strategy and achieve a layout of small profits but quick turnover and rapid expansion.

In this regard, Mixue has achieved the extreme, which is the most important factor in its success in the tea beverage industry and its counterattack to become a new star in the tea beverage industry.

In contrast, the reason why the value of some high-end brands plummeted after listing is because of the imperfect supply chain, or the inability to make their own decisions, making it difficult for them to make a profit.

Moreover, improving the supply chain can not only control and reduce costs, but also realize the sales of raw materials. From a long-term perspective, this cost far exceeds the franchise fee.

"There is an orchard in Yucheng Village, right? Have you been planning the raw materials for a long time?" After listening to Chen Yuan's words, Liu Na thought seriously for a while, then looked up and asked with a smile.

"Not at all."

Chen Yuan shook his head and smiled, "When I first built the orchard, I just wanted to add some benefits to the fishing grounds, but after my brother-in-law came over, I had the idea of ​​a tea brand."

It turned out to be the case.

Liu Na nodded in understanding.

"The plan is very good. If you follow your strategic plan, even if the tea brand is not successfully listed, it can at least become a very successful brand."

After a moment of silence, Liu Na spoke again, first approving Chen Yuan's strategic plan, then changing the subject slightly, "But as you said, the tea beverage industry is an industry that competes on capital, and I don't see that you have enough capital to support it."

The so-called supply chain can indeed reduce costs and achieve sales of raw materials, and it is possible to adopt a low-price strategy to win people's hearts and minds, but the prerequisite is to build a good supply chain.

Whether it is a raw material base, warehousing, logistics and transportation center, etc., the early construction requires huge investment of manpower, material and financial resources.

But the biggest cost is not here yet.

Three Sheep has absolutely no foundation. If it wants to attract franchisees and achieve the layout in the strategic plan, it must create a certain brand effect. Otherwise, who would join your brand with no foundation for no reason?
The investment required here is even greater than building a supply chain.

Unless it is completely directly operated.

But the capital required is on a completely different scale.

"I understand your idea."

Chen Yuan still smiled and responded calmly: "First of all, regarding capital, all projects in Yucheng Village can be supported, and Yucheng Film and Television is definitely the most solid backing. Regarding the early stage strategy, it is not a problem to invest tens of millions or even hundreds of millions of funds every year."

When Liu Na heard this, her beautiful eyes slightly opened.

Is the project in Yucheng Village so crazy?
"Sister Na may have doubts about the funding, but the madness of Yucheng Film and Television is definitely beyond your belief, and it won't take too long. You can witness it in the next few months," Chen Yuan added.

Liu Na smiled and nodded without saying anything.

Time will tell how effective it is. Before there are results, there is no point in saying anything.

"Then let's talk about the brand effect promotion."

Chen Yuan did not insist on proving the prospects of Yucheng Film and Television, nor did he boast about the heights that these projects in Yucheng Village could reach.

Although the system will not lose in hand, time will soon prove everything.

"I have two plans in this regard. The first is Yucheng Film and Television. Whether it is product placement, actors appearing in the publicity, or other forms of advertising, it can achieve the greatest publicity effect at the lowest cost."

Chen Yuan continued, "In addition to Yucheng Film and Television, I also have other channels for internet celebrities and stars, especially celebrity channels. These resources do not require any money."

Liu Na was slightly surprised when she heard this, "Can you invite a celebrity to promote it for free?"

"You will witness it tonight." Chen Yuan raised the corners of his mouth slightly, retaining a little mystery.

On the second day of the Chinese New Year, good songs are online, and Ye Zhi will definitely bring surprises.

Liu Na was very curious.

"The second is the Fishing Association."

Chen Yuan continued, "Sister Na probably doesn't know yet. I am now the vice president of the National Fishing Association. Starting next month, the association will launch a series of competitions, and my Chen Yuan Fishing Ground will be one of the venues. The Yucheng Village brand can be implanted in the competitions, live broadcasts, recorded broadcasts, and miscellaneous media. The publicity traffic brought by it is also not to be underestimated."

Liu Na's curiosity instantly turned into surprise, and even shock.

A pair of beautiful eyes looked deeply at Chen Yuan.

Chen Yuan’s layout of the tea beverage brand is by no means a meaningless fantasy, but the result of many preparations, and the layout is closely linked.

As for tea drinks themselves, we have made strategic plans, laid out plans, and even prepared supply chains.

In terms of external capital, with the support of the Yucheng Village project, Yucheng Film and Television can freely insert advertisements into TV series and movies produced by the company, and its actors can endorse the advertisements.

There are also celebrity endorsements and product placement in fishing sports association events.

With all these preparations, it can be said that the cost of developing a tea beverage brand can be compressed to the limit as much as possible, while also ensuring the promotion of the brand effect.

"I suddenly have a feeling that all these projects you developed seem to be closely linked." Liu Na exclaimed with some surprise.

It seems that it is not impossible for Chen Yuan to have the tea brand he wants.

(End of this chapter)