Gerstner met Feng Yu again, but this time, he came to Feng Yu's office, and he did not represent IBM, but on behalf of himself, or his tobacco company.
Gerstner himself was a tobacco tycoon, and Feng Yu had some things that he needed Gerstner to help with.
For example...the promotion of e-cigarettes.
From the time he started making humidifiers, Feng Yu mentioned the idea of e-cigarettes to them. The medicine is also atomized through an atomizer, but the specific uses are slightly different. Moreover, the atomizer technology at that time could not be so compact.
The first generation of e-cigarettes was launched on the market last year, and of course it started in China. The market response is relatively average because positioning is difficult.
You say this is tobacco, right? It doesn't have an open flame. Do you think this is a medical device? It is actually harmful to the human body. It removes the tar, but not the nicotine. You said this is consumer electronics, right? It doesn’t seem to count. After all, even atomized humidifiers are only considered household appliances.
Anyway, this product is now in a period where there is no quality supervision and no safety evaluation. The so-called product standards are naturally the standards set by Feng Yu and others.
The e-cigarette oil was developed by Bingcheng Pharmaceutical Group, and the e-cigarette was developed by Fengyu Electric. The brand adopts the Taihua brand, which is unified globally.
After trying it in the Chinese market, I found that it will not be too popular in the short term, but there is absolutely no problem in making a profit. The cost of this thing is actually very low, but because of the patented technology of the mini atomizer, it is impossible for others to imitate it. They lived alone for ten years in peace and contentment.
Now Feng Yu is preparing to introduce e-cigarettes to the American market. America itself is also one of the regions with huge tobacco consumption. As a tobacco tycoon, it would undoubtedly be much easier for Gerstner to cooperate with him.
Feng Yu handed Guo Shina a disposable (non-refillable) e-cigarette and motioned for Guo Shina to try it himself.
Although Gerstner is a tobacco tycoon, he usually smokes cigars. But he had never tried this thing. He saw Feng Yu picking up one and showing it to him, so he took a sip himself and exhaled a puff of smoke.
As if he didn't taste the smoke, Gerstner took a few more puffs, then took another one and handed it to the person behind him to taste. This person was the real smoker.
Feng Yu then signaled to the people next to him to open an electronic cigarette and show it to Gerstner.
"This is a cigarette cartridge (nozzle), made of the same yellow color as common ordinary tobacco. This piece is an atomizer, and it also contains smoke oil, which can be used for about five hundred puffs. The white cigarette rod below is mainly a battery , and some circuit boards…”
"Why not make it detachable? In that case, wouldn't the upper part of yours be disposable?" Gerstner asked.
Feng Yu gave a thumbs up. He was worthy of being a tobacco tycoon. He could find the problem with this e-cigarette at a glance. So Feng Yu waved his hand, and someone opened the second box. Inside was an electronic cigarette that was longer and thicker than real cigarettes, somewhat similar to the size of a cigar, and there was an on/off button on it.
"This is an electronic cigarette that can fill itself with e-liquid. However, due to the service life of the atomizer, it also needs to be replaced after a period of time. And if you fill it with e-liquid yourself, the smell will be very strong if you get it on your hands."
"Isn't this a bit small? How many puffs can you take after filling it up? Can't you increase the e-liquid area and increase the power of the atomizer? Many smokers still like to smoke in big puffs."
Of course Feng Yu understands that, just like many smokers, if you give him a pack of Yellow Crane Tower worth tens of dollars, he won’t like it because it’s boring, and he would rather smoke Honghe which costs five dollars a pack.
At this time, someone handed over a box. After opening it, there was an electronic cigarette that was a little larger than a cigarette case. If this was filled full, not to mention the large amount of smoke, there would be no need to fill it with e-cigarette liquid for a week.
Only then did Guo Shina see that Feng Yu had been prepared. It has to be said that these types of e-cigarettes correspond to different consumer groups. The first type is for people to try, the second type is for ordinary users, and the third type is for people who like e-cigarettes and smoke them regularly.
"The research and development of this electronic cigarette cost us a lot of money and energy, but the results are also gratifying. All the relevant patents for these electronic cigarettes are in my hands, which means that they are exclusively manufactured by us."
"E-cigarettes have many advantages, such as no open flames and no fire hazards. There is no tar, and there are not as many suspended particles as ordinary tobacco, which is healthier. It is also less harmful to family and friends. There are several types of e-cigarettes, which can Continuously reduce the tar content to achieve the purpose of quitting smoking.”
"Quit smoking?" Gerstner frowned. He was a tobacco giant. If no one stopped smoking, how much money would he make
Feng Yu smiled: "Don't worry, quitting smoking is just a function. If you really want to quit smoking, you can quit smoking even by chewing quit smoking candies or even relying on strong willpower. People who don't want to quit smoking, You just put him in a place without cigarettes, and once he has access to cigarettes, he will quickly light one."
“The important thing is that the profit of this e-cigarette is no lower than that of traditional tobacco, and it does not contain tar or open flames. It also makes people feel that it is healthier and safer, and is more beneficial to our promotion. I think this is better than Tobacco advertising is easier."
In many countries, tobacco advertising is not allowed, but those tobacco companies have thought of other ways, such as adding some other businesses to the company, and then using the company's or brand's name on the advertisements, thereby indirectly using the brand came to promote his tobacco.
"Are you going to hand this over to me as an agent? Is it the North American market?" Gerstner saw the profits, and this may become a new profit growth point for his tobacco company.
"It's not just the North American market. If you have the ability and dare to sign an agreement with us to guarantee sales, then the entire American market will be left to you."
"If the entire American market is handed over to me, how much agency fee can you give me?"
"Ten percent of sales, and the guaranteed sales cannot be less than 100 million US dollars. You know, tobacco's profits are not much, so giving you 10 percent is already our greatest sincerity. We are responsible for the media promotion ourselves. "
"What if I also cover the media promotion? I want 15% of the sales." Gerstner believes that the goal of US$100 million will not be difficult.
"Do you think our publicity expenses will account for 5% of sales?" Feng Yu asked. This is obvious, the lion opens its mouth wide.
"I guess the profit of your electronic cigarette will be higher than that of ordinary tobacco. Fourteen percent, I will definitely make this electronic cigarette popular in America."
"How about 12%?" Feng Yu counter-offered.
"Thirteen percent, no one is more suitable to be the agent of this product than my company. I can make this e-cigarette appear in front of smokers faster."
Feng Yu pretended to hesitate, but in fact he was already happy inside. The price in his mind is 15%, because the profit of this electronic cigarette is indeed far higher than that of ordinary tobacco. Not only is the price higher, but the cost is also lower!
"Okay, deal!"
(End of chapter)