Gu Biao and Mina spent a long time brushing through the "defensive spare tire acquisition" that Schwartzman talked about, and finally figured out the current situation.

Schwartzman's additional $5 million was mainly to buy 25% of the existing shares of two small foreign fast food brands that are still relatively spicy chicken, and to buy out the overseas expansion rights.

The first one is called California Fried Chicken, which is a tepid ordinary fried chicken that has been opened in the United States for more than ten years, and has only developed in California and states where Mexican Latino immigrants are more common, while the northern Yankees do not eat it at all, and have not been driven to the Northeast New England region and the Great Lakes region.

Schwartzman's defensive acquisition of a portion of the stake in this thing was all about blackmailing the existing shareholders of Kentucky Fried Chicken to make them realize that "there is a spare tire here that can be used for overseas promotion" and to push the price of Kentucky.

Since it was a spare tire, the California fried chicken deal cost only $3 million, which is only 20% of Kentucky's.

Gu Biao also knows that in the future, the California fried chicken called "California Aromatic Chicken" in the Chinese translation, and the Texas fried chicken called "Tekeshi" in the Chinese translation, will also be a little popular in China for a while in later generations.

Among them, the California aromatic chicken is about 94~97 years old, and before the crossing, Gu Biao was still in the second half of elementary school when he was in the second grade, and was taken by his parents to eat. Later, it seemed to be a sudden rush into the street and disappeared.

Tex has been obtained for a long time, probably because this brand was bought by Wanwan's Dingxin Group in later generations, so no matter how much money is made, no matter how much money is made, no effort is spared to promote it in the Chinese-speaking area. It's just that under pressure from Kentucky, the pricing is definitely half a step lower.

If you rely on "foresight" to bet, you have to choose one of the acquisitions in California aromatic chicken and Texas, and Gu Biao chooses to prefer Texas with peace of mind. But since Tex doesn't plan to sell his life now, and he just uses it as a spare tire, both are the same.

Gu Biao thinks that after letting Mina buy out this overseas expansion right, she can completely pinch it in her hands, even if she doesn't open a store for ten or eight years - the reason is very simple, now that these brands are in the hands of his family, why get a competitor to grab the Kentucky fried chicken business?

The defensive spare tire is focused on defense, hanging the whip on one's own head and not swinging it down, as long as one's own people see the existence of this whip and consciously speed up work efficiency.

However, in the future, you can also consider learning the matching strategy of the Yum Group in the future, change the name of the California-style brand, and don't rub the positioning of "aromatic chicken" (aromatic chicken was originally the name turned out by the Chinese after entering China, and the original English brand has nothing to do with aromatic, just a California-based fast food)

It is completely possible to take advantage of the western and Mexican attributes of California and transform California fried chicken into a restaurant that also serves tacos, onion rings, and various tomato, corn, and chili Mexican dishes, just like Yum Group's positioning of TACO clocks.

However, it is estimated that as long as there is no blessing of "American goods", the Chinese will not have much interest in the cuisine of backward civilization Mexico, and even if this business is done in the future, at best, it will be a petty bourgeois business in first- and second-tier cities, and the public will not eat it at all - well, basically belongs to the kind of petty bourgeoisie that will talk a few words of "Mayan culture" when chatting, and will eat Mexican TACO.

Perhaps, you can consider not saying Mexican food when you promote it, but only "Southern California style and American Latino food culture", which may deceive more vanities in the early days.

These are all years later, so don't think about it for the time being.

……

In addition to California aromatic chicken, Schwartzman found a second defensive spare tire, which was also native to Kentucky - perhaps it was because it was native to Kentucky or even to Louisville that it was discovered by the way when he was inspecting Kentucky fried chicken.

Because this second spare tire is really too weak, it has only been opened for two or three years, the history is very new, and so far there are only some chain stores operating in Kentucky, and no other state has been to it, the brand name is PAPA-John, which is a pizza seller.

This thing, in fact, the Chinese name translated as "Papa John's" in later generations has no sense of existence in China.

When Gu questioned the decision to make a defensive spare tire, Schwartzman explained it this way:

"I thought you were going to need a fast-food positioning brand that made pizza and pastries. This is also a reference to the conventional layout of American fast food groups, where the main burger is the lowest-end, while the main pizza is slightly more high-end than the burger, which can form a high and low match. Moreover, this brand is not expensive, and the current 25% stake in these dozen stores in Kentucky, plus the buyout of future expansion rights, is only $2 million. ”

"Then why don't you buy Pizza Hut?" Gu Biao asked casually.

Schwartzman: "PIZZA-HUT? That's more expensive than Kentucky fried chicken, which is currently the number one pizza chain in the United States." ALTHOUGH KENTUCKY FRIED CHICKEN HAS MANY TIMES MORE STORES IN THE UNITED STATES THAN PIZZA-HUT, THE BENCHMARK POSITIONING OF KENTUCKY FRIED CHICKEN IS TO SELL HAMBURGERS AFTER ALL, AND MCDONALD'S ALSO SELLS HAMBURGERS, SO KENTUCKY IS NOT THE FIRST IN THE SEGMENT, AND IT IS POSSIBLE TO SELL RAW AT A RELATIVELY LOW PRICE.

You know, the number one in any industry will be at least five to ten times more expensive than the number two, and that's determined by the head effect, because the vast majority of consumers only remember the first place, occasionally the second place, and almost no one knows the third place.

The highest peak in the world is Mount Everest, but what is the second highest peak in the world, can you tell? The first to go to the moon was Armstrong, and what was the name of the colleague who was two steps behind him? I don't know. ”

Gu Biao raised his hand and stopped Schwartzman from continuing to explain: "Okay, needless to say, you said that Pizza Hut is the current No. 1 pizza chain in the United States, and I already understand, if that's the case, I think your defensive combination is fine."

We're just trying to make money from China's vanity consumers, who don't understand the difference between Pizza Hut and PAPA-John, and what we bring in first, to advertise this brand, then they're awesome, it's a preconceived picture on a blank sheet of paper. ”

In that case, let Pizza Hut die on this plane.

As soon as Gu Biao thought of this, he felt quite vicissitudes.

Unexpectedly, the spare tire of the subdivision of KFC did not play the effect of "killing the main tire", but killed the main tire of the subdivision of pizza.

However, who made Pizza Hut already the first in the subdivided industry. And KFC should be lucky, after all, it is only the second under the big category of "hamburger", so it still has room for value depression.

"I think it's okay, just buy it, I won't cheat you. However, except for Kentucky fried chicken, the other two brands may not need to be promoted for several years after you get your hands on them.

Because Chinese are still too poor now, even vain consumers have not grown up enough to appreciate pizza, and as for the niche petty bourgeois needs that pursue subdivided personalities, they are far from growing. ”

After Gu Biao smoothed out all the relationships, he said to Mina.

Mina nodded slightly, then remembered a question and asked Schwartzman very professionally: "Then after we buy out the overseas expansion rights of these brands, is there a schedule for our expansion required in the investment agreement? If I don't open a store for five years or ten years after I buy it, and I don't open a store for ten years, and I hide it, they can't sue me, and they can't revoke the authorization on the grounds that 'the brand is deliberately not used', right?"

Schwartzman smiled proudly: "Of course we have considered this, you can look at the terms and conditions behind, these are originally 'defensive spare tire investment', and I thought about hiding in the snow when I bought them."

You can rest assured that American companies have done this kind of thing after acquiring competitors' brands, deliberately hiding them and not operating them, losing money in vain, and eroding the brand recognition of their competitors among consumers, but they have done it hundreds of times, and US law allows them to do so. ”

Schwartzman's move is similar to the fact that Coca-Cola bought a bunch of old domestic beverage brands in China after entering the Chinese market, and then covered the losses until everyone forgot and the goodwill disappeared.

From the perspective of a single acquisition, Coca-Cola's acquisition is a loss once - millions of dollars buy other people's trademark brands but don't use them, and depreciate to the point that they are worthless, so don't all the investments lose to zero?

However, Coca-Cola's account is completely calculated, because it knows that before Coca-Cola entered China, China's local brands had already occupied too much cheap popularity by entering the market first and relying on lack of materials. The best way to destroy these popularity and brand mentality is to buy Snow Storage.

The total memory of a certain type of consumer brand in the national brain is limited. Spending 10 million to make a little room in the minds of a billion people, forgetting a few other brands and just remembering Coca-Cola, this is an intangible asset.

That's what the consumer goods business does.

Of course, the premise is that you have to be the same as Coca-Cola, to be the first in the industry in this market segment, and ensure that "every time consumers forget another brand, the brand that they remember is your Coca-Cola", which you earn.

If you're only second in the industry, you can't use this trick. For example, if Pepsi Coke buys Huiyuan juice and the Arctic Ocean and then hides them, wait for consumers to forget about these two brands. The freed up brain capacity was spent on remembering Coca-Cola, Sprite Fanta, and Pepsi still had to cry without tears?

Only when the whole industry is yours can you do this business model of "spending money to buy an enemy and starve to death, and I will also make money".

Mina brushed Gu Ao's train of thought and quickly understood this.

"Snow is fine, it seems that the key is that we want to be the number one in this industry in a given market range, and the absolute number one. In this way, the death of any peer can be regarded as our earnings.

And for those companies that have not yet achieved the absolute first place in the industry, the death of the peer is not necessarily your earnings - it is possible that the peer died at the hands of the industry boss, at this time, you are facing the situation of Shu dying and Wu Gu, which is a cold lip and tooth. ”