Chapter 176 – Reselling CCTV advertisement slots
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After getting the distribution rights for the motorcycles, Feng Yu immediately prepare for the commercials. The advertisement contract between CCTV and Tai Hua Trading had stated that Tai Hua Trading have the authority to change the advertisements as long as the product is sold by Tai Hua Trading and the commercial is within the advertising guidelines.
Feng Yu had spent a lot for these advertisement slots, but it also increased the sales of the humidifiers. Feng Yu felt that it was not necessary for such high advertising frequency now. Humidifiers were not like health products, and the market was not that big. Many families having 1 humidifier would be sufficient. He intends to keep the product placement and 2 or 3 advertising slots for the humidifiers and reserve 1 advertising slot for the motorcycles.
Of course, before changing the advertisement, Feng Yu needs to talk to Li Mingde about the advertising fees.
“What? The advertising fee is so expensive? It needs 5 million? It’s only been a few days and why is it so expensive?” Li Mingde shouted in shock.
Feng Yu told him that he will change advertisement for the prime time advertising slot to the motorcycle. Guaranteed to let their Songjiang Motors to be shown to the whole of China within the shortest time and would significantly increase the sales.
At first, Li Mingde was still feeling great. He thought that Feng Yu was doing the right thing. He was even willing to change the humidifier commercials for their Motorcycles. But when Feng Yu mentioned the advertisement fees, Li Mingde got mad!
“5 months, 5 million RMB advertising fees. This price is reasonable.” Feng Yu spread his arms, showing an “I am very reasonable” expression.
“5 months, 5 million. Which part of this is reasonable?” Li Mingde roared.
Feng Yu calmly took out a chart and place it on the table: “Manager Li, look at these figures. This data was recorded since Wind, and Rain humidifiers started advertising on CCTV. The sales of the humidifiers soared. This is the market share for May, and this is for June. This is the effect of advertising with CCTV. Don’t tell me that for such an effective advertising platform, it is not worth this price?”
“Don’t try to fool me. Your humidifiers are patented, and there are no similar products. Even if the advertisements are effective, you are also exaggerating the effects. Also, this market share report was tabulated by your people, who knows if it is accurate? You show me the sales volume and figures. One look I will know if you are lying.”
Li Mingde had already wanted to know how many units of humidifiers were sold and how much were the profits. He had asked Feng Yu a few times, but Feng Yu refused to tell him. He tried asking Hou Haitao and Li Shiyou, but they were the same. They refuse to reveal the figures to him.
“Will you show your product sales figures to outsiders?” Feng Yu asked him back. “How about this, I will show you the sales figures for Wind and Rain electric fans. This product is fully owned by Tai Hua Trading, and I can reveal to you.”
Feng Yu took out the report he had prepared and shown to Li Mingde.
“Take note, Wind and Rain electric fans sales increased by 10 folds after it started advertising on CCTV. It’s 10 folds!” Feng Yu raised his voice.
“That’s because it’s summer. That is different and cannot be used as proof. Furthermore, how much do your advertisements for your electric fans cost? I am sure that it is not 1 million RMB per month!”
Obliviously. Feng Yu was advertising for his own company, and he will do his own calculations. It cost him about 200,000 RMB for that advertisement and in returned, he increased the sales and got a few hundred thousand RMB of profits. He also raised the brand recognition. This was to prepare for the launch of his bladeless fans next year.
He must let people know that Wind and Rain brand of electric fans are the best in China. Whenever people talked about electric fans, Wind and Rain fans will be the first brand that comes to their minds!
Wind and Rain electric fans were wholly owned by Feng Yu, and he could write whatever figure he wants in the report. For instance, this fake report.
“It’s not 1 million RMB? You look carefully, the advertising fees is 1.2 million! I had even given you a discount.” Feng Yu shouted while waving the report.
“What? 1.2 million RMB? Impossible!” Li Mingde would never believe that Feng Yu was willing to spend so much on advertisements. The TV advertisements at that time were not that expensive!
Furthermore, the humidifiers belonged to 3 parties, and although Tai Hua Trading was doing the sales, the advertising fees were split between all the parties. He does not think that Li Shiyou and Hou Haitao would accept 1 million RMB per month advertising fees!
Feng Yu carried on with his lies: “You must consider that our Songjiang Motors is a new brand and there was no reputation before. Do you know how much it cost to hire TV stars to shoot a commercial? We hired TV host, Shen Li for our humidifier advertising. If it was you, can you do that?”
“But ours is motorcycles. Shouldn’t the TV star should also be male? Who are you going to hire? How much will it cost?” Li Mingde asked sharply.
Damn, all these government officials were all sly foxes. Feng Yu’s tricks could not fool these people. But Feng Yu had other methods, which was the thing that Li Mingde concerned the most. The sales figures.
“You don’t need to care so much. If you agree to pay the 5 million RMB advertising fees, I guaranteed that there would be an additional 10,000 units sold by next year. That is at least 130,000 units sold. But first, our productions must be able to keep up!”
10,000 units for 5 million RMB advertising fees? The profits per motorcycle were more than 500 RMB. When Feng Yu said this, Li Mingde started to consider seriously.
This CCTV advertisements were so effective? Why was Feng Yu so confident? An unknown brand of the motorcycle can reach 130,000 units sold in the first year? Just using this advertisement? Or Feng Yu’s exterior design of the bikes?
“You can really guarantee?” Li Mingde asked suspiciously.
“Absolutely no problem! We can put that in the contract. If I am unable to deliver, Tai Hua Trading will pay this advertising fees!” Feng Yu said and patted his chest.
“Fine, but I need to speak to Director Hou and Mr. Fu first. If they agree, we will sign a contract!” Li Mingde had some reserves. He still wanted to know how much was spent on the advertisements for the humidifiers.
“Old Hou, tell me the truth. How much was spent on the advertisements for the humidifiers?” Li Mingde called Hou Haitao.
“This…… Old Li, you better ask Feng Y. Li Shiyou and I had promised not to reveal the exact figures. All I can say is that we had spent a huge amount.”
“How much?” Li Mingde did not give up.
Hou Haitao hesitated for a while and said: “It was a sky-high amount!”
Sky-high amount? Could it be really that much?
“Was it more than 5 million RMB?”
“Erm.” Hou Haitao remembered that the advertisement fees were 5 million, but he did not tell Li Mingde about the details. That amount was for a year, and it included the 4 advertising slots at CCTV and other stuff. Furthermore, Feng Yu had told them that if the advertisements were no longer effective, they could change it.
Li Mingde did not know about these details. He only heard that the humidifiers advertising fees were more than 5 million RMB. So, Feng Yu did not fool him since Li Shiyou, and Hou Haitao dared to agree to that exorbitant amount, then he can also agree to it!
After signing the amended contract with Li Mingde, Feng Yu left smiling with a check in his hands.
Who said that CCTV advertising slots could not be resold?
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