Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 130 Ad Bombardment (Second update of 10,000 words per day, please vote with monthly tickets and recommendations, and please continue reading)

"Long-term reputation?" Chen Bingwen's lips curled into a faint smile. "Mr. Tanaka, do you think 'Pulse' is a new product that needs to be tested with extreme caution?"

He looked at Ling Peiyi: "Director Ling, please show Mr. Tanaka the data report on the Singapore market."

Ling Peiyi immediately handed over a document.

The document clearly lists the key data:

During the first week of the Singaporean release of "Drunken Master," daily sales of "Pulse" exceeded 1.5 bottles.

In its third week of release, daily sales exceeded 3 bottles.

Within a month of its release, total sales exceeded 50 bottles, and its market share jumped to the top among functional beverages.

Sales of bottled sugar water increased by 35% year-on-year.
Tanaka Ichiro, Kobayashi Masao, and Sato Takeru's eyes swept over the data, their faces revealing undisguised surprise.

This growth rate far exceeded their expectations.

"The core of Singapore's success lies in the deep integration of 'product + culture' and the saturated coverage of channels," Chen Bingwen's voice rang out again. "The movie 'Drunken Master' was the tipping point, but what truly supported the sales was the product's excellent functionality and taste, as well as its ubiquitous channel penetration."

On the first day of the movie's release, all the lobbies of Cathay Organisation's cinemas and the freezers of its convenience stores were filled with 'Pulse' cigarettes.

Consumers can easily access our products as soon as they leave the theater. That's what 'priority access support' truly means!

He looked at Masao Kobayashi: "Mr. Kobayashi, Suntory has more than 28 vending machines in Japan, covering more than 90% of convenience stores, supermarkets and restaurants across the country."

This is the basis of our cooperation and the value of licensing the bottle cap patent.

500 stores? That's less than one-thousandth of Suntory's distribution network!
Using it to 'test the waters' of a product that has already proven successful in Singapore is a huge waste of resources and a disregard for the strategic partnership between the two parties!

The meeting room fell silent. Masao Kobayashi's face was somewhat grim. He opened his mouth, wanting to retort, but Ichiro Tanaka stopped him with a look.

Tanaka Ichiro took a deep breath and looked at Chen Bingwen: "Mr. Chen, I understand what you mean."

What is your desired distribution scale?

"The first phase," Chen Bingwen stated very clearly, "in the three major metropolitan areas of Tokyo, Osaka, and Nagoya, all Suntory's directly operated and core partner convenience stores (7-Eleven, Lawson, FamilyMart, etc.)."

We've stocked it in all large supermarkets, all high-end department store food counters, and vending machines in high-traffic areas such as subway stations and office buildings!

"Distribution standards: Each convenience store's refrigerated display case must have at least 20 bottles of 'Pulse' and 10 bottles of bottled sugar water on display."
Large supermarkets and department store counters should ensure sufficient display space based on their area.

The vending machines ensure that the stock rate of "Pulse" (a popular snack) is no less than 30% based on the foot traffic at each location.

"Timeline: Launching simultaneously with the Japanese premiere of the film 'Drunken Master,' i.e., February 11. All materials and products must be in place before February 10."

"Phase Two: Within one month, expand the distribution network to core business districts and transportation hubs in all prefectures of Japan, covering more than 90% of Suntory's effective retail outlets."

After Chen Bingwen finished speaking, his gaze calmly swept over the three Suntory employees: "This is what I understand as 'priority access support' based on bottle cap patent licensing and strategic partnerships."

Masao Kobayashi gasped, "Mr. Chen! This is impossible! The distribution network is too wide, and the inventory pressure is enormous!"
Logistics scheduling, personnel training, and communication with end users all take time!
Achieving full coverage of three major metropolitan areas within a month is an extreme challenge for Suntory's channel system!

The risks are completely uncontrollable!

“Risk?” Chen Bingwen looked at him. “Mr. Kobayashi, the essence of business is managing risk and creating value.”

The patented bottle cap technology brings Suntory's glass bottle products a user experience improvement and potential sales growth that is more than enough to cover the distribution risks you mentioned.

Moreover, 'Pulse' has proven to be a successful product in Singapore.

Suntory's goal is simply to replicate and scale up its successful Singapore model in the more mature Japanese market.

He turned to Ichiro Tanaka, his tone carrying a deeper meaning: "Mr. Tanaka, Chenji chose to cooperate with Suntory because it values ​​Suntory's localization advantages and execution capabilities in the Japanese market."

If Suntory is so hesitant to provide matching channel support to its strategic partners even on its own turf, then I will reassess the depth and breadth of our cooperation.

After all, Suntory isn't the only company that can provide distribution channels.

These last words struck Tanaka Ichiro's heart like a heavy hammer.

He knew exactly what Chen Bingwen was referring to.

If Chen Bingwen were to switch to Suntory's competitors, the licensing of bottle cap patents would no longer be Suntory's exclusive advantage, and could even be used by competitors to undermine Suntory.

The atmosphere in the meeting room instantly became extremely tense.

There was a long silence.

Tanaka Ichiro frowned.

Masao Kobayashi's face was ashen, while Takeru Satoh was quickly jotting something down in his notebook.

Chen Bingwen waited patiently, picked up his teacup and took another sip, his gaze calm.

He knew that the pressure had been put on the other party, and now he needed to give Tanaka Ichiro a way out and some room to weigh the options.

Finally, Tanaka Ichiro raised his head, looked at Chen Bingwen, and said in a low voice, "Mr. Chen, your request is very challenging."

This involves resource allocation and priority adjustment across Suntory's entire channel system.

I need to conduct an internal feasibility assessment.

“Yes,” Chen Bingwen nodded, “but time is tight.”

The release date for "Drunken Master" has been set, and marketing and promotion are about to begin.

I expect a clear response from Suntory within 24 hours.

"24 hours?" Masao Kobayashi couldn't help but exclaim, "That's too rushed! We need to coordinate logistics, warehousing, sales, and finance."

“Director Lin,” Chen Bingwen interrupted him, speaking seriously, “After receiving the plan, Cathay Pacific Corporation of Singapore completed the distribution and material delivery to 80% of the target terminals across the island within 72 hours.”

As a Japanese beverage giant, is Suntory's channel management capability inferior to that of a Singaporean distribution company?

Or is it that Suntory lacks the execution capability to match its strategic ambitions?

These words were clearly meant to provoke.

Masao Kobayashi's face flushed red, but he was speechless for a moment.

Tanaka Ichiro took a deep breath and said in a deep voice, "Mr. Chen, please give us 24 hours."

I will give you my final answer by this time tomorrow.

“Okay.” Chen Bingwen stood up. “I look forward to Suntory’s decision. If you have any technical or data needs, please feel free to contact me.”

He extended his hand: "Mr. Tanaka, I believe in Suntory's courage and wisdom."

I hope to hear good news tomorrow.

Tanaka Ichiro shook hands with him firmly: "Mr. Chen, we will consider this carefully."

After leaving Suntory's headquarters and getting into the car, Ling Peiyi asked in a low voice, "Mr. Chen, will they agree?"

Our requirements are indeed very high.

Looking at the Tokyo street scenes rushing past the window, Chen Bingwen said with certainty, "They have to agree."

The bottle cap patent was a bargaining chip they couldn't refuse, and the window of opportunity for "Drunken Master" to be released was fleeting.

Tanaka Ichiro was a smart man; he knew that the cost of refusing would be greater.

Now, it just needs time to digest and coordinate internally.

"Understood!" Ling Peiyi replied.

The next day, at nine in the morning.

The atmosphere in the hotel suite in Minato Ward, Tokyo, was not relaxed.

Despite the resounding statement made at Suntory's headquarters yesterday, the 24-hour waiting period remains uncertain.

Chen Bingwen did not choose to wait idly at the hotel.

He knew that his confidence at the negotiating table stemmed from his absolute insight into the market.

"Director Ling, Zhao Gang, come out with me."

Li Ming, you stay behind; you have another mission.

Chen Bingwen gave instructions to everyone.

A rented Toyota Crown drove out of the hotel and merged into the morning rush hour traffic in Tokyo.

Chen Bingwen personally gave directions, directing the driver through office buildings in Chiyoda Ward, luxury apartment areas in Minato Ward, trendy shopping districts in Shibuya, and transportation hubs in Shinjuku.

"Stop for a moment." Chen Bingwen asked the driver to stop in front of a cluster of vending machines at the foot of an office building.

He got out of the car and observed carefully.

The dozen or so vending machines belong to brands such as Suntory, Coca-Cola, and Asahi.

His gaze was fixed on a Suntory machine, where the iconic brown bottles of Liposuction occupied two entire rows of aisles, next to its Coca-Cola, coffee, and juice.

Other brands of machines also have some form of health-promoting features.

"Director Ling, please make a note of this." Chen Bingwen said calmly, "At this location, Lipovitan has a 100% distribution rate and accounts for about 15% of the sales channels."

The frequency of restocking is unknown, but judging from the abundance of stock, sales are proceeding rapidly.

He then walked to a 7-Eleven convenience store not far away and stopped in front of the refrigerated beverage display case.

Similarly, Lipovitan was placed in the most prominent position on the freezer door, next to various coffees and juices.

"In convenience store refrigerated display cases, Lipovitan has a 100% presence rate and is prominently displayed."

Ling Peiyi quickly made notes in her notebook and took photos with her portable camera to preserve the information.

Throughout the morning, they randomly sampled more than 30 locations, including vending machines near office buildings, subway stations, convenience stores, university campuses, and residential areas.

The data, when compiled, is alarming: Lipovitan has a nearly 100% market share in the functional beverage segment, almost monopolizing the shelves in all key locations.

Its brand awareness is as ubiquitous as air.

"See that?" Chen Bingwen said to Ling Peiyi as he got back into the car. "This is our real opponent."

It is not a specific company, but rather a 'ubiquitous' channel monopoly and mindshare monopoly.

"If Suntory only gives us a few hundred points, it's like dropping a drop of ink into an ocean of Lipovitan products; it will be instantly submerged, without even a ripple."

Ling Peiyi nodded solemnly: "I understand, Mr. Chen."

Comprehensive channel coverage is not an ambition, but the minimum requirement for survival.

Meanwhile, at the hotel, Li Ming was carrying out another crucial task assigned by Chen Bingwen.

Through his connections with Toho Towa, he got in touch with the head of the advertising department at Nippon Television.

Chen Bingwen's instructions were very clear:

At all costs, we will seize the nighttime and late-night hours to establish the mental brand awareness of "Pulse" energy drinks.

The advertisement features three shots: a marathon runner drinking the beverage after crossing the finish line, an office worker drinking it after a long night of overtime, and young people drinking it happily after a gathering.

Core slogan: After sweating, drink Gatorade!

Only during the period from 23:00 PM to 01:00 AM the next day.

The first batch of broadcasts will cover all major television stations in the three major metropolitan areas of Tokyo, Nagoya, and Osaka during this time slot.

This strategy is both extremely bold and precise.

In 1979 Japan, advertising costs were relatively low during the late-night hours, but it was the peak time for Pulse's target audience, including office workers, students, and night shift workers, to watch television.

Concentrating firepower on this period is the most cost-effective and has the strongest psychological impact.

At one point, Chen Bingwen even considered finding a few elderly, white-bearded experts in Japan to explain on a late-night television program the story of how "Pulse" originated from a family-inherited formula.
However, he rejected the idea as soon as it flashed through his mind.

That's too tacky, and it doesn't fit the tone of Japanese media.

Japanese audiences may trust authority, but they place even greater faith in data and seemingly objective presentation methods.

In this highly modernized society, a stiff "family recipe" story is likely to backfire and even attract ridicule.

(End of this chapter)