Chapter 25 3 Brand Strategy

Chapter 25 3 Brand Strategy

Chapter 25 Three Brand Strategy

Bai Qiwen introduced the three foundries in detail to Xu Shenxue:

"In terms of technical capabilities and quality control, Xiangfeng Electronics is doing well. Its technical capabilities are roughly comparable to ours. Currently, they mainly produce their own brands, but their own brands continue to lose money, so they have also begun to accept OEM orders."

"However, they have high requirements for order stability and require signing continuous long-term orders. They do not accept temporary small orders of a few thousand units. The OEM price is in the middle among the three companies."

"Anbel Electronics, their technology and quality control are the best. Currently, they mainly do OEM business for small overseas brands, and they do more export. I have visited their factory, and all the equipment is new. Their production management is also very good, but their production capacity is not large. Their total production capacity is only 40,000 units, and most of the capacity has been used. There is not much capacity left. In addition, the OEM price is slightly higher!"

"The last one is Huasong Industry, which is a manufacturer that specializes in OEM business for our Huaqiangnan friends. They have very good cost control and decent production technology. As for product workmanship and quality control, they clearly stated that the OEM fee will be higher if the workmanship is good and the defective rate is high. If the requirements are not so high, they can also lower the price."

Xu Shenxue listened and read the materials at the same time. The report materials were more detailed than Bai Qiwen's simple description. It not only had these simple business introductions, but also shareholder backgrounds, senior management profiles, and very important corporate financial investigations...

It is most basic to conduct a financial investigation on a partner. No one wants to sign a contract, pay a deposit, and then have the other party bankrupt you right after!
In addition, this also involves the payment period. It is impossible for WeCool Electronics to exchange money and goods with the OEM factory. They all pay a deposit in advance, and then the OEM factory produces the phone. WeCool Electronics pays the remaining balance after taking the phone.

The payment and delivery of goods are made gradually. While the other party is producing and delivering the goods, WeCool Electronics is selling the goods while paying the OEM fee. It is impossible to deliver the goods all at once or pay the OEM fee all at once.

However, it also costs money for the OEM factory to organize production, which means that before the mobile phone is produced, they need to advance part of the funds for production.

Therefore, this requires certain financial strength of the partners.

Moreover, if the other party's operations are not smooth due to financial problems, it will also be a huge risk for WeCool Electronics.

Just imagine that channel orders continue to pour in to WeCool Electronics, and then problems occur at the OEM factory, causing WeCool Electronics to be unable to ship according to the contract... That would be a huge problem, and would lead to a large-scale breach of cooperation between WeCool Electronics and channel dealers, and the compensation would be no small amount.

Therefore, you need to be more cautious when looking for partners. It is not enough to just have low prices, large production capacity, and good technology. You also need to have certain financial strength.

What is required is that your comprehensive strength in all aspects meets the standards, only then will you be given a contract.

After all, WeCool Electronics just wants to find a reliable OEM factory and doesn't want to cause any trouble.

Xu Shenxue carefully read the information reports of the three foundries. After a long time, he said, "Make an appointment with them. I will go and take a look in person!"

Finding a foundry is no small matter. Xu Shenxue still has to go and see it with his own eyes to confirm the foundry's strength before discussing other things.

Bai Qiwen said: "No problem, I will go and talk to their person in charge about the field investigation. They are very willing to cooperate and are looking forward to your visit, Mr. Xu!"

After Bai Qiwen left, Xu Shenxue did not stay in the company, but went to a small business consulting company several kilometers away to listen to the company's organizational structure adjustment plan proposed by the consulting company.

As the scale of Wecoo Electronics continues to expand, its main product lines include Wecoo mobile phones, Xiaolan mobile phones, and smart phone projects.

Moreover, WeCool Electronics is not a pure mobile phone design company with light assets, but a manufacturing company with its own assembly plant and various mobile phone parts production branches.

This makes the business lines of Weiku Electronics Co., Ltd. appear rather chaotic, and conflicts often arise among the various business departments.

For example, in the R&D department, Xie Jianyong, a bald man, is in charge of the development of three major categories of products, which is really overwhelming!
The same is true for the marketing department. All kinds of businesses are gathered together. Even if they are grouped internally, it is still very troublesome to manage.

This made Xu Shenxue feel that the traditional vertical management model of the manufacturing industry was no longer suitable for the current development of Weiku Electronics. In addition, Xu Shenxue also considered the brand building issue after the launch of future smartphones!
A smartphone is such a high-end thing that it must be given a high-tech corporate background... only then will users have a basic sense of trust.

Otherwise, if you, a cheap phone manufacturer, bring out a smartphone and exaggerate how much you boast about it, consumers will think you are a liar… Even if they don’t think you are a liar, they will think your phone is rubbish and of poor quality, and directly regard your smartphone as a knockoff smartphone. And you still want to sell it for two or three thousand? Get lost.

This will be a devastating blow to the branding of future smartphones.

Therefore, Xu Shenxue is preparing to classify brands.

After the smartphones are developed, make a mid-to-high-end smartphone that costs around two thousand yuan, directly create a mid-to-high-end brand, and then carry out extensive publicity. It would be best if you could get the title of the first Android phone in the country, so as to maintain a high premium and shape a mid-to-high-end brand image.

But there are low-end smartphones too…Once the smartphone is almost done, you can easily make a mid-to-low-end smartphone by replacing the hardware, changing the shell, and lowering the technical requirements. And this mid-to-low-end smartphone can be sold under the two brands of Weiku and Xiaolan.

Xiaolan Mobile Phone will continue to follow the young, fashionable and cost-effective online route, focusing on the low-to-mid-end price range of more than 1,000 yuan or even cheaper within 1,000 yuan in the future.

At this stage, Weku mobile phones mainly go through traditional offline channels, and are also mainly mid- and low-end mobile phones. However, with the same configuration, the price will be more expensive than Xiaolan mobile phones, and then high commissions will be given to terminal channels, that is, front-line sales personnel.

The three brands are combined together to sweep the online and offline markets, with three price ranges: low, medium and high. This will help to better build the brand and avoid internal brand friction.

Taking into account the adjustment of business and future brand building, Xu Shenxue is preparing to make certain adjustments to the company's existing structure and is preparing to establish several subsidiaries to be responsible for various businesses.

At the same time, we are also prepared to take this opportunity to directly formulate and improve various aspects of corporate administrative management, R&D job levels, etc.

He has already entrusted this matter to a business consulting company, and now they have made a plan for him to listen to.

After arriving at the consulting company, a business manager and two young men met him and started giving a report.

Xu Shenxue was flipping through the materials in his hands, watching their PPT, and listening to the explanation of a middle-aged man with a slicked-back hair, wearing a suit, and looking like a workplace elite.

After they explained for a long time, Xu Shenxue said, "Mr. Fang, according to the plan you proposed, a group company will be established, and then multiple subsidiaries will be controlled. In this case, will there be too many management levels, leading to an increase in management costs?"

"In the smartphone business subsidiary, you have set up six management levels. How do you control management costs? How do you ensure efficiency?"

A middle-aged manager of the other party said: "Boss Xu, this multi-level management model will indeed lead to an increase in administrative costs and a decrease in efficiency, but this is a problem that no large company can avoid. After all, the boss cannot directly face the grassroots R&D personnel, nor can he directly face the middle-level management!"

"The corporate structure we designed for your company has taken into account the scale and business of your company and reduced the management levels as much as possible!"

"If the reduction continues, managers will have insufficient time and energy to handle business, which will lead to reduced efficiency and even chaos!"

Xu Shenxue shook his head: "Then it's not a problem of organizational structure, but a problem of people. I will select qualified managers, so you don't have to worry about this!"

"Let's reduce administrative costs even more!"

"The equity structure and financial aspects are pretty good!"

(End of this chapter)