Go back to 1990 to start a business
Chapter 133 The Most Profitable Industry
Xia Chuan said leisurely: "Our country has a unique product category called health drugs. This thing does not need to be approved by the Food and Drug Administration, but it is actually allowed to be called a drug. Isn't this a huge loophole?"
The two women were stunned for three seconds, and suddenly understood what Xia Chuan meant.
Lingxuan said excitedly: “We produce health-care drugs, and people take them as health-care products without any feeling of rejection. The audience is greatly broadened, but at the same time, they retain their trust in the efficacy of the drugs;
We do not need approval and supervision from the Food and Drug Administration, and there is no need for a lengthy clinical trial phase, which greatly improves input-output efficiency.
But the biggest benefit is that you can promote the efficacy!
It is possible to promote the efficacy but there is no supervision. This is really a huge legal loophole!This should be the easiest industry to make money.The only trouble is that it can easily be ruined by unscrupulous companies rushing in. In the end, the country still has to regulate. "
Tong Yu was suddenly impressed. Lingxuan really had the insight to be a leader.
Xia Chuan was also very pleased, "You are right. But I can say with certainty that the construction of the legal system will always lag behind economic development, and regulations will only happen in five years. In these five years, have you still not been able to transform into a pharmaceutical company? ?”
Lingxuan suddenly became enlightened, clapped her hands and said with a smile: "Yes! Let's make money first. When the industry fails, our new drugs will be successful and we will turn to regular pharmaceuticals. This requires drug research and development in advance."
"Very good." Xia Chuan was very satisfied. "When we expand to Feng City, we will start preparations for drug research and development. I will tell you what research and development will be done at that time. Let's talk about the immediate issue first. Do you think that if a company wants to develop rapidly? , what is the most important deciding factor?”
"strategy?"
"No, it's talents." Xia Chuan sighed: "As an entrepreneur, you should put the talent structure in the most important position. With talents, they will naturally do the right things, and it will be difficult for the company not to develop rapidly. . On the contrary, if talent selection is not smooth, the company will be in danger.
The essence of market economy is competition for talents.
We are not a state-owned enterprise and cannot adopt the employment system of state-owned enterprises. We must strategically design the talent structure. Talents must be market-oriented and strictly recruit talents from the society, especially marketing talents.
At the same time, we must not allow random recruitment, recruitment based on favors, or recruitment based on family ties.
The quality of the company's talents cannot be single, the knowledge must be complementary, and there must be rules for selecting and cultivating talents.
If the talent structure is unreasonable, it will lead to uneven development of various departments of the enterprise, resulting in a situation where weak talent departments hinder the rapid development of strong talent departments, and ultimately cause the entire company to develop slowly or even stagnantly.
Another point that is also very important is to have a talent reserve.
When a company develops and enters a new industry or enters a new stage, it suddenly becomes apparent that there is no talent preparation and there is a shortage of talent for company development. At that time, if you rush to get on the shelves, you will pay heavy tuition fees.
Finally, there is the issue of talent selection.
After a company grows bigger, one of the most common problems is that of weak commanders and strong generals.
Running a business does not mean finding the best talents right from the start, but our business has to grow, so the existing management is not the best choice.But what will happen if the better talents later can’t get up and the weak coaches can’t get down?
A weak commander cannot manage a strong general.Strong generals simply do not accept the management of weak commanders.The result is unmanageable and unmanageable, warlords separatist rule, and occupying the mountains as kings.
To put it bluntly, it’s a common problem among state-owned enterprises. They have a strong position and can’t move up or down.
Our private enterprises will never allow such problems to occur!
The solution to this problem is simple: compete internally!
Tell them clearly from the beginning that this is not an iron-clad throne and you can remove it at any time if you do not do well!
Our slogan is: if you are motivated, shed your sweat; if you have knowledge, give your wisdom; if you have nothing, please give up your position..."
Xia Chuan's eloquent discussions are all familiar to later generations of companies, but in this era, they are all the most advanced concepts.
Lingxuan's heart was agitated, her pride was flying, and her hands were recording quickly.
Tong Yu deeply felt that Xia Chuan's words contained infinite wisdom. Her admiring eyes were filled with stars. Unknowingly, she had forgotten about the one-meter appointment and actually hugged his arm, snuggling up to him like a bird. She was simply intoxicated by the musical rhythm of the voice coming from her body.
"Lingxuan, how much do you think a health care products company should invest in advertising?" Xia Chuan asked.
Lingxuan thought for a while and said: "I think health product companies are different from other products and should pay attention to advertising investment, which should account for at least 5.00% of the total investment, which is 100 million."
She thinks this ratio is already high.
Tong Yu nodded in approval.
Xia Chuan smiled and said: "We have to occupy the national market within two years. How can you do it with 5.00%? Let me tell you, the advertising budget for the second half of the year is 1000 million. Remember, it must be put out!"
ah?The two women's eyes widened, and they were shocked. 50.00% of the advertising fee?
No wonder the two women were shocked. Enterprises these days have little awareness of advertising. Being able to spend 5.00% of the advertising fee is already advanced in advertising awareness, but Xia Chuan asked for 50.00%!
Tong Yu stared and said, "You want to advertise on CCTV?"
"No, we don't follow the model of Wahaha. This year we will do it in the major cities of the three northeastern provinces with a budget of 1000 million. Next year we will be the top media and occupy the national market. By then, our advertising budget will be 5000 million, and the following year will The advertising fee is [-] million.”
The two women gasped, and Lingxuan said in shock: "You are bombing with three-dimensional advertising!"
Snapped!Xia Chuan slapped his thigh: "Yes, it's a three-dimensional advertising bombing!"
Xia Chuan then described in detail the three-dimensional advertising bombing strategy.
Needless to say, newspapers have red advertisements running all over the page, making it impossible for you to remember them.
The sharpest method is to purchase redundant time slots on radio and television stations.The so-called redundant period means that there are no programs anymore, so the annual subscription price is very low.Then it took the form of health lectures, and the effect of expert publicity was extremely amazing.
Three-dimensional bombing means that you can hear and see my product advertisements no matter when you are on the bus or in the toilet.
In history, Jiang Wei's pioneering advertising bombing opened up the market for Yanshengbaobaoye, creating a tenfold annual growth rate. A single product sold for one billion, setting a record in history!
Later, groups imitated and rushed forward, and all kinds of fake and shoddy products emerged in endlessly, completely ruining the market.
The most typical one is the 'Chinese turtle spirit'. When the company was closed down, it was discovered that from its establishment to the end, there were only two old turtles in their company, and they were kept in a water tank and had never been touched.
I guess the Animal Welfare Society gave them an award.
Jiang Weitian, a talented person, also crosses the river by feeling the stones. He established Feilong in October 90 and produced the life-enhancing treasure-protecting liquid in November. In 10, he entered the market and created an output value of 11 million, in 91, an output value of 1200 million, and in 92, an output value of 1.8 billion. In total, he used for more than two years.
But Xia Chuan cut off Hu three months in advance, and thoroughly studied Jiang Wei's mistakes without any trial and error process. From the beginning, he decided on the most successful product and the clearest and correct development strategy.
Jiang Wei is like a special soldier, no matter how powerful the road is, there are twists and turns; while Xia Chuan is an air force, running straight towards the destination.
The two are not on the same level at all.
The two women were stunned for three seconds, and suddenly understood what Xia Chuan meant.
Lingxuan said excitedly: “We produce health-care drugs, and people take them as health-care products without any feeling of rejection. The audience is greatly broadened, but at the same time, they retain their trust in the efficacy of the drugs;
We do not need approval and supervision from the Food and Drug Administration, and there is no need for a lengthy clinical trial phase, which greatly improves input-output efficiency.
But the biggest benefit is that you can promote the efficacy!
It is possible to promote the efficacy but there is no supervision. This is really a huge legal loophole!This should be the easiest industry to make money.The only trouble is that it can easily be ruined by unscrupulous companies rushing in. In the end, the country still has to regulate. "
Tong Yu was suddenly impressed. Lingxuan really had the insight to be a leader.
Xia Chuan was also very pleased, "You are right. But I can say with certainty that the construction of the legal system will always lag behind economic development, and regulations will only happen in five years. In these five years, have you still not been able to transform into a pharmaceutical company? ?”
Lingxuan suddenly became enlightened, clapped her hands and said with a smile: "Yes! Let's make money first. When the industry fails, our new drugs will be successful and we will turn to regular pharmaceuticals. This requires drug research and development in advance."
"Very good." Xia Chuan was very satisfied. "When we expand to Feng City, we will start preparations for drug research and development. I will tell you what research and development will be done at that time. Let's talk about the immediate issue first. Do you think that if a company wants to develop rapidly? , what is the most important deciding factor?”
"strategy?"
"No, it's talents." Xia Chuan sighed: "As an entrepreneur, you should put the talent structure in the most important position. With talents, they will naturally do the right things, and it will be difficult for the company not to develop rapidly. . On the contrary, if talent selection is not smooth, the company will be in danger.
The essence of market economy is competition for talents.
We are not a state-owned enterprise and cannot adopt the employment system of state-owned enterprises. We must strategically design the talent structure. Talents must be market-oriented and strictly recruit talents from the society, especially marketing talents.
At the same time, we must not allow random recruitment, recruitment based on favors, or recruitment based on family ties.
The quality of the company's talents cannot be single, the knowledge must be complementary, and there must be rules for selecting and cultivating talents.
If the talent structure is unreasonable, it will lead to uneven development of various departments of the enterprise, resulting in a situation where weak talent departments hinder the rapid development of strong talent departments, and ultimately cause the entire company to develop slowly or even stagnantly.
Another point that is also very important is to have a talent reserve.
When a company develops and enters a new industry or enters a new stage, it suddenly becomes apparent that there is no talent preparation and there is a shortage of talent for company development. At that time, if you rush to get on the shelves, you will pay heavy tuition fees.
Finally, there is the issue of talent selection.
After a company grows bigger, one of the most common problems is that of weak commanders and strong generals.
Running a business does not mean finding the best talents right from the start, but our business has to grow, so the existing management is not the best choice.But what will happen if the better talents later can’t get up and the weak coaches can’t get down?
A weak commander cannot manage a strong general.Strong generals simply do not accept the management of weak commanders.The result is unmanageable and unmanageable, warlords separatist rule, and occupying the mountains as kings.
To put it bluntly, it’s a common problem among state-owned enterprises. They have a strong position and can’t move up or down.
Our private enterprises will never allow such problems to occur!
The solution to this problem is simple: compete internally!
Tell them clearly from the beginning that this is not an iron-clad throne and you can remove it at any time if you do not do well!
Our slogan is: if you are motivated, shed your sweat; if you have knowledge, give your wisdom; if you have nothing, please give up your position..."
Xia Chuan's eloquent discussions are all familiar to later generations of companies, but in this era, they are all the most advanced concepts.
Lingxuan's heart was agitated, her pride was flying, and her hands were recording quickly.
Tong Yu deeply felt that Xia Chuan's words contained infinite wisdom. Her admiring eyes were filled with stars. Unknowingly, she had forgotten about the one-meter appointment and actually hugged his arm, snuggling up to him like a bird. She was simply intoxicated by the musical rhythm of the voice coming from her body.
"Lingxuan, how much do you think a health care products company should invest in advertising?" Xia Chuan asked.
Lingxuan thought for a while and said: "I think health product companies are different from other products and should pay attention to advertising investment, which should account for at least 5.00% of the total investment, which is 100 million."
She thinks this ratio is already high.
Tong Yu nodded in approval.
Xia Chuan smiled and said: "We have to occupy the national market within two years. How can you do it with 5.00%? Let me tell you, the advertising budget for the second half of the year is 1000 million. Remember, it must be put out!"
ah?The two women's eyes widened, and they were shocked. 50.00% of the advertising fee?
No wonder the two women were shocked. Enterprises these days have little awareness of advertising. Being able to spend 5.00% of the advertising fee is already advanced in advertising awareness, but Xia Chuan asked for 50.00%!
Tong Yu stared and said, "You want to advertise on CCTV?"
"No, we don't follow the model of Wahaha. This year we will do it in the major cities of the three northeastern provinces with a budget of 1000 million. Next year we will be the top media and occupy the national market. By then, our advertising budget will be 5000 million, and the following year will The advertising fee is [-] million.”
The two women gasped, and Lingxuan said in shock: "You are bombing with three-dimensional advertising!"
Snapped!Xia Chuan slapped his thigh: "Yes, it's a three-dimensional advertising bombing!"
Xia Chuan then described in detail the three-dimensional advertising bombing strategy.
Needless to say, newspapers have red advertisements running all over the page, making it impossible for you to remember them.
The sharpest method is to purchase redundant time slots on radio and television stations.The so-called redundant period means that there are no programs anymore, so the annual subscription price is very low.Then it took the form of health lectures, and the effect of expert publicity was extremely amazing.
Three-dimensional bombing means that you can hear and see my product advertisements no matter when you are on the bus or in the toilet.
In history, Jiang Wei's pioneering advertising bombing opened up the market for Yanshengbaobaoye, creating a tenfold annual growth rate. A single product sold for one billion, setting a record in history!
Later, groups imitated and rushed forward, and all kinds of fake and shoddy products emerged in endlessly, completely ruining the market.
The most typical one is the 'Chinese turtle spirit'. When the company was closed down, it was discovered that from its establishment to the end, there were only two old turtles in their company, and they were kept in a water tank and had never been touched.
I guess the Animal Welfare Society gave them an award.
Jiang Weitian, a talented person, also crosses the river by feeling the stones. He established Feilong in October 90 and produced the life-enhancing treasure-protecting liquid in November. In 10, he entered the market and created an output value of 11 million, in 91, an output value of 1200 million, and in 92, an output value of 1.8 billion. In total, he used for more than two years.
But Xia Chuan cut off Hu three months in advance, and thoroughly studied Jiang Wei's mistakes without any trial and error process. From the beginning, he decided on the most successful product and the clearest and correct development strategy.
Jiang Wei is like a special soldier, no matter how powerful the road is, there are twists and turns; while Xia Chuan is an air force, running straight towards the destination.
The two are not on the same level at all.
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