Huo Jianning's face was a little solemn, and he said slowly: "The first problem is the cost, the production process of CD discs and CD walkmans is very demanding, and the production cost cannot be reduced for the time being. ”

"The production department has done a detailed calculation, if the annual output is set at 100,000 units, the cost of each CD Walkman will be 162 US dollars, which is very close to the wholesale price of Tiangong SP-S1 Walkman!"

"Considering a series of uncertain costs such as the company's operation, R&D investment in follow-up technology, and marketing, the ex-factory price should be controlled at $575, and the unified official retail price must be around $760. ”

"This price is too high, more than three times the price of the Tiangong SP-S1 Walkman. ”

"Such a high price will seriously hinder the development of the CD Walkman market, and the sales prospects are uncertain. ”

"So now the company can't make a decision, whether to launch it now, or to develop for a period of time for the cost problem, and then carry out commercial production after the cost has come down. ”

After speaking, Huo Jianning looked straight at Xia Yu, waiting for his opinion.

The inability to reach an agreement within the company actually means that he is still hesitating, if he, the president of the company, makes a decision, where dare the people below oppose it?

It is not so simple to introduce a product to the market, especially if this product is still used to open up the market for the first time, if it is successful, it is good to say, if it fails, the impact will be very large.

Even if it succeeds, it is not a peace of mind, because the high selling price will limit the number of customers, and even if it has an early advantage, as long as similar products can be sold at a low price, it can quickly seize the market.

What Huo Jianning considered was whether to continue to reduce costs, and then seize the market as much as possible at one time and occupy an absolute leadership position, so that even in the face of later competitors, he could calmly deal with the competition.

Xia Yu thought for a while, his eyes narrowed slightly, and said in a deep voice: "I know your worries, but since the product has been developed, don't waste time." ”

"It doesn't matter if the price is high, there is a low-price marketing model at a low price, a marketing method with a high price at a high price, the key is how to market, there is no shortage of rich people in the world, and there is always a part of them who are enthusiasts of Walkman, so aim at this group of people to make a fuss. ”

"As long as our products take these people down, they will naturally help us spread the word, and we will be able to occupy the market position first. ”

"The window period before other competitors launch the same product is the time for us to try to reduce costs, which requires you to work harder, Dr. Lu. ”

"After our peers launch similar products, we will launch a second offensive to bring the products with reduced costs to the market and continue to seize the low-end market. ”

Hearing this, Lu Chao said with a resolute face: "Chairman, I will definitely go all out!"

Xia Yu looked at Huo Jianning thoughtfully, and suggested: "Jianning, in terms of marketing, I will propose an idea, you ask dealers around the world to investigate all the fanatics of the Walkman, and when the product is released, in addition to the response of media resources, it is also necessary to specially invite these influential enthusiasts to be present, they are the disseminators and fermenters of our word-of-mouth." ”

Huo Jianning nodded and said, "Chairman, I understand, I will do what you say." ”

Xia Yu smiled and asked casually, "What is the second question?"

Huo Jianning retracted the smile he had just shown, took a deep breath and said: "Chairman, this second question is about CD records, CD records are a brand new market, unlike the vinyl record market, which already exists, so we have to develop the CD record market at the same time as developing the CD Walkman." ”

"There isn't enough CD record supply, and consumers can't take advantage of the CD Walkman they buy. ”

Hearing this, Xia Yu already understood what Huo Jianning meant, and his brows couldn't help frowning.

This is indeed a big problem.

He thought for a moment and asked, "Since you've thought about this, you must have thought about how to promote CDs, right?"

"Chairman, we have analyzed it. ”

"This has to be linked to the global music market now, where there are two models of record production. The first is the asset-light management mode, the music company does not have its own record filling factory, but entrusts the album to a professional record filling factory for irrigation; the second is the asset-heavy management mode, the music company operates the whole industry chain, the music company has its own record filling factory, and the album is produced and distributed by itself, and your Universal Music Company is the second model. ”

"Because of the technical problems of CD records, the cost of a burning machine is five times that of a mature vinyl record filling equipment, and the cost of CD discs is also higher than that of vinyl tapes. ”

"So in the uncertain market, other music companies and record production companies may not necessarily invest a lot of money to buy CD-burning equipment from us, and even deliberately fight against it, after all, CD records are vinyl competitors, and we infringe on the interests of the original interests. ”

"Your Universal Music Company will definitely support it, but Universal Music's music copyright is very limited, and Europe and the United States do not listen to our Chinese and Cantonese songs. ”

"Actually, this is the most critical problem, and it is very difficult to solve at the company level. ”

"The most obvious thing is that PolyGram International Co., Ltd., the world's largest music giant, is now suppressed by Universal Music in Xiangjiang, but its music library is much stronger than Universal Music. ”

"I have specially investigated that the predecessor of PolyGram International Co., Ltd., DGG/PPI Group, was formed in 1962 by the merger of Philips Records, a subsidiary of Philips, and the world's most famous classical music record company under Siemens, and in 1980, it acquired Decca Records, a famous British classical music company. ”

"And now PolyPhil International Co., Ltd. has only two major shareholders, one is Philips in the Netherlands, and the other is Siemens in West Germany, Philips is our main competitor, so we don't dare to go to PolyBond International Co., Ltd., as long as we find it, Philips will know, Philips will definitely not let PolyLip International Co., Ltd. cooperate with us, the news is known by them, we will be extremely passive. ”

After Huo Jianning finished speaking at one time, he suddenly felt a sense of relief.

This problem has been pressing on his heart for a long time, but Chairman Xia Yu has never come back, and the CD Walkman has not been developed before, so he waited until now to tell Xia Yu.

In his opinion, when it comes to this level of problems, only the chairman can solve them, and he is helpless.

n.