Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 125 A Colossus (Seeking monthly votes, recommendations, and continued reading)

December 10th.

The second round of blind tests for Pulse energy drink in North America and Japan has been completed.

Chen Bingwen looked at the two newly released blind test results reports with great satisfaction.

A total of 4800 valid questionnaires were collected in North America.
The overall acceptance rate reached 96.7%.

Among the negative reviews, the percentages of 'strange sweetness' and 'minty stimulation' dropped to 1.8%.

The feedback, especially from blue-collar communities in Chicago and Houston, has been very positive.

A 96.7% overall acceptance rate means that the new formula has precisely hit the taste buds of North American consumers.

Feedback from blue-collar communities in Chicago and Houston further validated the accuracy of the product positioning.

Tailor-made for groups that need energy replenishment.

The Japanese version of Pulse had 3000 valid questionnaires.

Overall acceptance rate: 92.1%.

Taste satisfaction: 93.5%.

Vague negative reviews such as "unnatural flavor" and "missing something" dropped to 3.2%.

Young office workers in Tokyo and Osaka showed the highest acceptance of the peach and lime flavor, describing it as "pure" and "smooth."

With an overall acceptance rate of 92.1%, which is slightly lower than in North America, this figure is already excellent in Japan, where tastes are extremely discerning and the market is highly mature.

The significant improvement in taste satisfaction and flavor preference proves that Isabella's strategy of "simplifying the flavor matrix and pursuing purity and nature" is very successful.

“Very good.” Chen Bingwen put down the report and said to Zhou Zhiyuan, “The final flavor formulas for the North American and Japanese versions will be implemented according to the finalized plan from this blind test.”

Once the current batch of concentrate powder ordered by Fuyuan Plant for Southeast Asia is completed, the first batch of concentrate powder production for the North American and Japanese markets will commence.

"Understood!" Zhou Zhiyuan nodded in agreement, then turned and quickly left.

We've successfully overcome the initial hurdles in the North American and Japanese markets.

Next comes the real battle: channel implementation and market testing.

However, getting the channels into operation is the toughest battle within the tough battle.

The core battleground of this war is not directly facing consumers.

Rather, it is that intricate, self-contained behemoth: Coca-Cola's network of franchised bottling plants.

In North America and Europe, Coca-Cola is more like a "brand owner" and "concentrate supplier".

The ones that truly spread Coca-Cola beverages to every corner are the franchised bottling plants that have cultivated local markets for decades and possess independent kingdoms.

These bottling plants have a delicate yet strong relationship with Coca-Cola headquarters.

They purchased the mysterious "7X" concentrate from their Atlanta headquarters through a long-term contract.

Then water and sugar are added, carbonation is carried out, and the products are bottled and delivered to corner convenience stores, large supermarkets, gas stations, restaurants and even vending machines through their own extensive distribution system.

Decades of operation have given these bottling plants unparalleled control over distribution channels and logistics networks in the local area.

Their relationships with local retailers are deeply entrenched, and the bottling plant's channel managers often have the final say on prime shelf locations, the number of freezers, and promotional schedules.

Even many large chain supermarkets have to consider the whims of local bottling giants when making purchases; they are the true "local emperors" of the regional channels.

For Coca-Cola's Atlanta headquarters, these bottling plants are the "tentacles" that bring its products to consumers, an unshakeable cornerstone of its distribution channels.

Any new products or policies launched by headquarters ultimately need to rely on these "tentacles" to be implemented.

If the bottling plant outwardly complies but inwardly resists or shirks its responsibilities, even the headquarters' will will be greatly diminished when it is implemented.

Chen Bingwen was well aware that although a patent licensing and channel opening agreement had been reached with Coca-Cola...

The headquarters also issued an order to cooperate with the distribution of "Pulse" products, but how much of a splash this order would make when it was sent to the various unruly bottling plants was completely unknown.

Coca-Cola's franchised bottling plants earn their money through hard work (assembly, logistics, and distribution), with gross profit margins hovering around 10-15%, far lower than the 50-60% profit margin of the company's concentrate.

They must carefully manage every resource.

Moreover, promoting new products means taking up shelf space, freezers, transportation capacity, and sales effort from existing mature products, and requires additional investment.

The risks and losses from failed new product launches are primarily borne by the bottling plant.

Therefore, they prefer to invest resources in promoting classic products, which is a "sure-fire way to make money."

This creates a huge gap between Coca-Cola's top-level strategy and the vested interests and execution inertia of local bottling plants.

For Pulse energy drinks, conquering the taste buds of North American consumers is just the first step.

The key to whether "Pulse" can carve out a path in the North American market lies in how to break through this "Maginot Line" that stands in the way of distribution channels.

Thinking of this, Chen Bingwen picked up his pen and wrote the three words "bottling plant" forcefully in his notebook.

This tough battle is unavoidable.

The key to breaking the deadlock lies not in a single order from headquarters, but in whether these "local tyrants" can be convinced to do so willingly.

Selling "Pulse" is a more profitable and worry-free business than selling Coca-Cola.

In contrast, Suntory's sales channels in Japan exhibit completely different characteristics.

Suntory has its own bottling plants and wholly-owned sales subsidiaries in its core markets (Tokyo, Osaka, etc.), and its headquarters directly controls everything from production to distribution and end-user promotion.

Even when using agents and distributors in certain regions, execution is ensured through equity ties or deep agreements.

Therefore, as long as Suntory headquarters gives the order, the Pulse product can be distributed to 90% of the target terminals in Japan within two weeks.

It can enable sales strategies such as simultaneous launch of tastings, buy-one-get-one-free promotions, and advertising blitzes across Japan.

In order to ensure that "Pulse" can truly take root in the world's two core markets.

Chen Bingwen is tasked with commanding two campaigns with vastly different strategies, targeting the Japanese, North American, and European channels.

Success or failure will determine whether Chenji can truly join the ranks of global FMCG players.

He felt little apprehensive, only a calm composure typical of someone in the middle stages of a game.

The strategy is set; there's no going back. Meanwhile, in Singapore...

A huge crowd gathered at the entrance of the Queen's Theatre.

The huge poster for "Drunken Master" occupies the most eye-catching position, and the four big characters "Starring Jackie Chan" are particularly prominent at the bottom of the poster.

A queue more than 30 meters long formed at the ticket window, winding and twisting, almost blocking half the street.

"Two tickets to 'Drunken Master'! The fastest showing!" a young man squeezed to the window and shouted eagerly.

"I'm sorry, sir, all shows before 9 p.m. tonight are sold out. Only the midnight show at 11:30 p.m. has a few tickets left," the ticket seller replied without looking up.

"Midnight screenings are fine too! Two tickets!" The young man pulled out his money without hesitation.

Similar scenes were simultaneously playing out in cinemas in core business districts such as Orchard Road, Chinatown, and Jurong East.

"Drunken Master" sparked a viewing frenzy on its opening day in Singapore.

Cathay Group's cinemas are almost always sold out, with tickets in high demand.

Newspaper entertainment sections were filled with headlines such as "Jackie Chan's kung fu comedy sweeps Singapore" and "Drunken Master breaks box office records."

The atmosphere in the cinema lobby was even more lively.

Besides the usual movie posters and promotional signs, the most eye-catching thing was the "Pulse" energy drink promotion point set up in a prominent position.

The light blue "Pulse" logo complements the poster for "Drunken Master".

The promotional area was surrounded by a crowd of people waiting to enter.

The sales promoters, dressed in uniforms and sporting sweet smiles, are enthusiastically introducing the products:
"Sir, try 'Pulse' energy drink! It's endorsed by Jackie Chan. Watching the intense fight scenes in 'Drunken Master' and feeling parched? One bottle will instantly refresh you!"

Buy a ticket to "Drunken Master" and a bottle of "Pulse" for just an extra S$1! The original price is S$1.8!

"Watch a movie, drink some energy drinks, and double your vitality!"

Behind the salesperson, the freezer is neatly stacked with light blue bottles of "Pulse," and the energetic image of Cheng Long on the bottle is clearly visible.

Many viewers were drawn in and picked up a bottle without thinking.

"It's endorsed by Jackie Chan? I'll have a bottle to try!"

"A drink while watching a movie, perfect!"

"Add to cart for 1 Singapore dollar? That's a great deal!"

What's even more ingenious is that before the movie started, instead of playing the main feature directly on the screen, a 60-second ad segment was inserted.

The scene depicts Jackie Chan resting against a wall, looking slightly tired, after performing a spectacular drunken boxing routine in the movie "Drunken Master".

The scene then shifts to Jackie Chan in sportswear, who picks up a bottle of "Pulse," takes a sip, and flashes his signature sunny smile at the camera.

"After practicing kung fu, your mouth is dry?"

Grab a bottle of Gatorade! Instantly refreshed and full of energy!

I am Jackie Chan, and this is my choice!

The commercial is fast-paced and seamlessly integrates with the movie clips.

A knowing chuckle and murmurs rippled through the theater.

Wow! Jackie Chan!

"This drink looks good."

"I'll buy a bottle and try it after the movie!"

The advertising effect was immediate.

When the show ended, many audience members went straight to the "Pulse" promotion point in the lobby or the freezer in the convenience store.

"Boss, a bottle of Gatorade, please!"
"The one Jackie Chan drinks!"

"Give me one of those blue drinks from the ad!"

South China Trade Office.

Lin Wenxiong was holding the latest sales report and talking on the phone with Ling Peiyi.

"Director Ling! It's a smash hit! A complete smash hit!" he shouted excitedly into the phone. "Drunken Master has been a sold-out film for three days straight!"

This led to a surge in sales of "Pulse" (a popular energy drink)!

He looked at the numbers on the report and spoke quickly:

"On the first day, thanks to the promotional points at cinemas and the bundled sales of tickets and drinks, the daily sales of Pulse exceeded 15,000 bottles!"

The next day, with word-of-mouth spreading and the combined effect of advertising, sales surged to 23,000 bottles!

In just half a day, supermarkets and convenience stores have been receiving non-stop calls about restocking! We expect to sell over 30,000 bottles by the end of the day!

On the other end of the phone, Ling Peiyi was also very excited, saying, "That's great! Mr. Lin! The synergy with the cinemas has far exceeded our expectations!"

"It's more than just an expectation!" Lin Wenxiong waved his arms excitedly. "The key is the ripple effect!"

Many people who hadn't seen the movie bought and tried it after seeing Jackie Chan's advertisement and the "Watch 'Drunken Master, Drink Pulse' promotional posters in supermarkets!"

'Pulse' is now a huge hit in Singapore!
It has become a new favorite among young people, drivers, and office workers!

He paused, then added, "And another thing!"
Bottled sugar water also benefited!

Sales of mango pomelo sago and coconut sago in the cinema lobby and surrounding convenience stores have increased by at least 30%!

It's only natural for consumers to buy a bottle of sweet soup as a dessert after watching the movie!

"A win-win situation! This is a true win-win situation!" Ling Peiyi exclaimed sincerely. "Boss Lin, keep up the promotional efforts!"
Especially regarding bundled sales and experience centers, Cathay Pacific has been very cooperative; we must make full use of their resources!

"Don't worry, Director Ling! I'll keep an eye on things personally!" Lin Wenxiong assured him, patting his chest.

After hanging up the phone, Lin Wenxiong looked at the sales report in his hand, feeling a surge of pride.

(End of this chapter)