Chapter 607: Pragmatism is important
Usually when a new product is sold, it needs a very eye-catching advertisement in order to sell well. Pen | fun | pavilion www. biquge。 info
For example, a mobile phone in later generations, the overwhelming advertising will always make them sell well, at least at the initial stage.
But advertising is not just about selling goods, there is also an element of product competitiveness.
For example, Coca-Cola, Apple, Google, Nike, Mercedes-Benz, etc., they have risen from simply selling products to building brand culture, allowing people to shift their attention from their products to themselves, thus greatly increasing brand value.
The launch of Transformers toys is naturally to be advertised, and it is because of the first reason that advertising is to sell better.
If you want to do brand culture, it is not at all close to the edge now, and the above-mentioned companies are all developed to the extreme of the industry, and then they begin to slowly transform into the second type of advertising.
Although there are two best commercials, comic books and cartoons, that doesn't mean that there is no need for them.
The so-called three major media, television media, print media and paper media, are all required to place advertisements.
And the more prosperous the place, the more intensive the advertising.
In this regard, Yin Jun and Le Yiling have no experience, so they can only leave these jobs to the most experienced people - those famous advertising agencies.
Any advertising company that can do well must have its own media resources.
What's more, it can even guarantee you that you can put the ad on which TV station, which newspaper and which time period and layout.
Such a guaranteed company, although the fee is a little more expensive, but the effect is the best.
At least the kind of advertising effect you want.
But whether advertising can be converted into purchasing power in the end is another story.
During the period before Yin Jun went to the mainland, Le Yiling had been discussing this matter.
Yin Jun discussed with her that the meal should be eaten one bite at a time, and the road should be walked step by step.
With the current strength of Kirin Group, if you want to distribute goods to the world in one go, there is no problem, and it is a great place with an underdeveloped economy, just shop less goods.
However, Kirin Group does not have the ability to advertise all over the world, especially the ability to continue to burn money through global marketing.
Advertising is very expensive.
You watch Nike appear in various media all day long, it's very lively, right?
As a result, more than 60% of people's expenses are on various endorsements and advertisements, and the annual expenditure of advertising endorsements and other expenses of 1 or 20 billion US dollars is truly made by brands, rather than by real materials.
In the same way, there is also brain platinum, which is even more crazy in terms of spending proportions, and it is estimated that 80% of it has to be spent on crazy advertising.
Yin Jun wants the advertising of Transformers toys to be effective, not to mention billions a year, but at least a billion dollars is normal.
If you do the math, there are dozens of countries in Europe, dozens of countries in the Americas, Japan, South Korea, Thailand, Australia, and New Zealand in Asia...... And so on, adding up to at least 50 countries that are worth advertising.
Television media, paper media, print media, one city at a time, are all the scale of 1,000 cities.
If you do the math, do you still think $1 billion is a lot?
Not much!
Yin Jun's current net worth is not worth $1 billion.
Not to mention that Yin Jun has no money, even if Yin Jun is rich, it is impossible for Sister Le to agree to such a crazy marketing plan.
She was stingy, and finally decided to be the first batch of advertising in the United States, Britain, France, West Germany, Japan and other ten most developed countries, and the funds were also endured with heartache and took out 100 million US dollars, which can be regarded as a reluctant beginning.
The average advertising cost of a country of $10 million is indeed not much.
However, this kind of advertising cost is not less.
Especially considering the influence of "Transformers" in the world now, as well as more advertising lists in the future, after receiving the news, many first-class advertising companies have sent personnel to discuss with Le Yiling.
Finally, on the day of Wei Xiaofan's wedding, 5 advertising companies were finally finalized to act as the sole agent of the Transformers toy advertising business, including advertising production and advertising.
However, this time, the $100 million advertising fee is not enough to support a year, only enough for half a year, and this is because the five advertising companies have given a big discount.
According to the normal price, even if you invite third-tier stars, the advertising fee is not only so small, not to mention the advertisements they give, at least they will appear in the advertisements of famous stars in the country.
Businessmen are naturally profit-seeking.
Given such a high discount, their requirement is that if Transformers toys are to be advertised in these countries in the future, then they will have priority.
At this point, Le Yiling agreed.
As long as the toys sell well, then she has to be reluctant to pay for advertising.
The production of an advertisement, not to mention a TV media advertisement, is the production of print media advertising and paper media advertising, which takes a lot of time.
The more will take a month or two, and the less will take ten days and half a month.
While waiting for the production and broadcast of the advertisement, Le Yiling also sent batches of toys to the warehouses of dealers one by one.
Yin Jun wants to learn from the Tao Gan Ma he admires, you get what you pay for, I sell you something, and you give money to pull the goods, so that I can make money with peace of mind and will not worry about being afraid.
But as soon as this idea came out, he was immediately scolded by Le Yiling.
I have endured it when you kid did this on the construction site before, because Xiangjiang is our home field, and you actively pay for the goods, which is understandable when we have abundant funds.
But now you are asking foreign dealers to help us sell things, these Transformers toys have not been tested by the market, you dare to ask people to give money and then pick up the goods, aren't you crazy?
Fuck off, don't get involved here.
After such a big scolding, Le Yiling delivered the goods to the dealer who signed the contract.
The dealers who have been contacted for a long time, according to the contract, pay 20% of the advance payment first, and when the goods arrive to them, they will pay 30% of the payment, and the remaining 50% will be settled every three months after the sale of the toy.
This is an internationally accepted form of cooperation, and it is also the most popular practice of ordinary cooperation.
In Yin Jun's view, this is purely a dealer squeezing the Kirin Toy Company, but as Sister Le said, no matter how prosperous you are in the comic and animation industry, you have never had any precedent for success in the toy industry, so why should people give you any favorable conditions?
No way.
When you are not strong, you can only forbear.
Wait until the Transformers toy sells well all over the world, and then negotiate a new contract.
Fortunately, when it comes to the cost of Transformers toys, Kirin Toys has a very good control.
For example, the kind of Transformers that are directly pressed from plastic materials, because there is no joint structure of the body, so even the patent fee does not need to be given to Hasbro, the smallest price is 1 US dollar, in fact, the cost is only 0.5 Hong Kong dollars, plus the transportation fee is only 13% of the cost, and the gross profit margin is as high as 87%, which is very, very high!
But this is not the highest, for example, there is a limited edition of 1000 Optimus Prime large aluminum alloy variable robot, about 100 cm high, the cost price has reached 120 US dollars, but the price is as high as 6000 US dollars, in addition to transportation and warehousing and other other expenses, the gross profit margin is still as high as 97%!!
The production cost of the Transformers produced from the Kirin Toy Factory is not higher than 15% of the selling price.
Even with advertising, taxes, shipping, dealer discounts, etc., the total profit margin will not be less than 30%.
Don't think that a 30% gross profit margin is not high.
Do you know what Walmart's gross profit margin is?
3%-5%!
With such a small profit margin, they have become the world's largest supermarket retail group, and a family of five have all become the world's top 20 super-rich!
This profit margin is actually much higher than that of Apple, which will become popular in the future, but the unit price of things sold by Apples is too high, and the audience is much wider than that of Transformers toys, so they can become the world's largest market value company, but Kirin Toy Company is absolutely impossible.
It's just that Yin Jun has never been arrogant.
The profit of toys has always been one of the most profitable of all commodities, and it belongs to the type of big dogs.
If you can compare profits with it and are not afraid of being as prosperous as Nokia and Motorola for more than ten years, only the cosmetics industry remains.
As long as there are people, then toys can be sold, cosmetics can be sold, which is almost the same daily necessities as food, clothing and shelter.
Men may be reluctant to spend money on themselves, and even women may not be willing to buy cosmetics, but they are definitely willing to buy all kinds of toys for their children.
can hold the super IP of "Transformers" tightly, and the toys can provide Yin Jun with a net profit of 1-200 million US dollars every year, and it is a great supplement to invest this money in the entertainment industry.
Then 20 years later, or less than 20 years, with the strong support of Yin Jun, various IMAX technologies, 3D technologies, computer capture technologies, special effects computer production technologies, etc., have developed strongly in all aspects, after the release of the live-action version of "Transformers", not only will the box office explode directly, but also the toys will usher in a peak again.
A brand can bring itself a net profit of more than 10 billion US dollars, which can already be compared to a first-class company, what is Yin Jun not satisfied with?