Extraordinary Genius Chapter 833

Extraordinary Genius

Chapter 833 - Coca-Cola and Pepsi's shock

Specializedcounters are only a row of shelves selling only Chinese beverages.

OnlyCoca-Cola and Pepsi had such treatments in the past. Even Budweiser, aworld-renowned beer, does not have this treatment.

Now, whatFeng Yu wanted was the same as what Coca-Cola and Pepsi had, and this made themfrown.

Coca-Colaand Pepsi were beverage giants, and Coca-Cola owns more than 40% of the world'sbeverage market share. Their market share is still increasing because of theirgrowth in Asia markets. Pepsi is close behind, with about 35% of the globalmarket share and was also entering the Asia market.

In theNorth America market, Coca-Cola's market share is about 45%, and Pepsi ownsabout 40%. Both cola companies own 85% of the whole market.

This isthe reason why supermarket chains are willing to give them specializedcounters. How can Feng Yu ask the same for his Chinese beverages? The drinks onthe list were mostly unheard of and the only brand the supermarket chain's.h.i.+gher management heard of is Jianlibao. However, Jianlibao owns only a fewpercentages of the market share!

"Mr. Feng,Mr. Fu, only Coca-Cola and Pepsi have specialized counters and no other brandscan have their own shelves. At least this is for our supermarkets, and I am notsure about the rest." Someone said.

The restof the people there starts saying their supermarket also cannot give suchtreatments to Chinese beverages. Walmart is the biggest supermarket chain inNorth America, in some regions or areas, some of the local supermarkets aremore popular than them.

Thehigher management felt Feng Yu should not ask for too much just because theyhad worked together before. Their supermarkets' sales will not be affected ifthey were to pull out one or two brands. But without the supermarkets, allbeverage brands' sales will be affected. This includes Coca-Cola and Pepsi!

Powerful retail chains can suppress theearnings of their suppliers!

"Please consider this. We do not have onlyone product, but several Chinese products, like carbonated drinks, teabeverages, dairy products, mineral water and sports drinks. These products areall from the mysterious east! Think about this. Having a shelf full of productsfrom the mysterious east, why can't this work? We had conducted market research,and there are more people in North America drinking tea beverages now." FuGuangzheng said.

"Mr. Fu, there might be more peopledrinking tea, but that does not mean there are more people drinking teabeverages. All of your products are unknown brands and need our supermarkets tohelp market them. Other than tea beverages, what's so special about the otherdrinks? Can your soft drinks compete with Coca-Cola and Pepsi? Dairy productscan be found everywhere, and there is nothing special. We are also selling teabeverages from j.a.pan and the sales are quite good too. The Sports drinks youare talking about are Jianlibao and Qili? How many people will buy them, andwho is your target audience?"

"Everyone, I had mentioned that we are notselling on the taste or brands. We are selling the location. I only all of youto give us a chance and give us a specialized shelf to place our products. Ourmarketing campaign will be starting soon, and advertis.e.m.e.nts will be placed invarious newspapers, TV stations and other media. Just look at Jianlibao. If wecan increase Jianlibao's brand awareness within 3 years, we will be able toincrease the brand awareness of the other brands."

Jianlibao could establish itself in the USwithin 3 years is considered a miracle! With the same marketing team andsufficient funds, the other Chinese brands will have no problem increasingtheir brand awareness.

The supermarket chains' higher managementlooks at each other, but no one wants to say anything. 'Products from China'might be a selling point, but no one knows whether if it will be successful.

Another consideration is the charges forthe specialized counters. How much should they charge Feng Yu? Base on the samerates as Coca-Cola or increase it slightly?

Fu Guangzheng and Feng Yu did not sayanything about the rates, and the supermarket chains' representatives did notask too.

After talking for about 30 minutes, nothinghad been agreed on, and the representatives left. Fu Guangzheng said excitedlyto Feng Yu. "Success! They will come back to us to discuss the details beforetomorrow night."

"Why?" Feng Yu asked curiously.

"Because of what you said. Our beveragesare from China, and it is the same as overseas beverage brands getting popularin Hong Kong and China. In the initial phase, many consumers will purchasethose beverages out of curiosity, and they don't even need to do muchmarketing. It is the same for the US and Americans are more open to new things.After our Chinese beverages are introduced into the market, there will be asurge in the supermarkets' sales. But one thing to note. The supermarket chainswill definitely add in some conditions like they have the right to pull ourproducts off the shelves if the sales fall below a certain percentage." FuGuangzheng is much better than Feng Yu when it comes to retail sales.

"Pull off the shelves anytime? We will beat their mercy." Feng Yu frowned. The supermarket chains will have the finalsay over the Chinese beverages fate!

"This is where we need to negotiate. Evenif the sales are not good, we must ask for a buffer period. If not, we will betoo pa.s.sive." Fu Guangzheng had thought of how to handle these supermarketchains. After all, the Fu family owns the biggest supermarket chain in HongKong.

"How long should the buffer period be?"Feng Yu asked.

"It will depend on our negotiations withthem. But what I have in mind is at least a season. They will not agree if weask for a longer period, but if the buffer period is too short, it will bedisadvantageous to us. One season should be possible. My family has long termcooperation agreements with these few supermarket chains, and since theseproducts are giving me 20% of their profits, I will do my best to help them."Fu Guangzheng replied confidently.

"Thank you. I will leave everything toyou."

That evening, the supermarket chains'higher management staff contacted Fu Guangzheng and expressed interest. Thesupermarket chains in the US were trying to increase the variety of theirproducts, and if another supermarket chain has some products they do not have,they will lose out.

Also, all of them felt this is worth a try.If the sales are not good and they cannot make any profits, they can just pullthe products off the shelves. They had done this to other products before.

After the first supermarket chain signedthe cooperation contract, the rest of the supermarket chains quickly reached anagreement and signed the contract. Everyone does not want their rivals to get anadvantage over them.

One week later, all the products from theChinese Beverage Alliance entered more than 1,000 supermarket chains in NorthAmerica and had their own specialized counters.

Coca-Cola and Pepsi got wind of it and were shocked!