PEERLESS GENIUS SYSTEM II

Chapter 363: Chinese medicine drinks

The executives of Luo Workshop had presented their respective solutions and opinions. Then, they all waited silently for Xiao Luo to make the final call.

Xiao Luo stopped drumming onto the table, stood up, and in a firm tone, he said, "I see all your points, and I have concluded three key points based on everyone's ideas: habit, trust, and price. Speaking of pricing, Director Li is right. Luo Workshop will definitely lose should we ever engage in a price war with Sumir.

On top of Huayao Corporation, Sumir itself is already a force to be reckoned with. Our assets are nothing compared to theirs, so the only outcome of a price war would be a one-sided defeat for us. Hence, there's not much point in lowering our prices."

Everyone nodded as they took down these points.

"But..."

Xiao Luo smiled as he qualified his statement with his own views. "Price war is not all about lowering the prices; we can compete on the more expensive products," he said.

Compete on the more expensive products?

What kind of theory is that? Did he mean that we can increase our price to give ourselves an edge in the market and win over more customers?

The Luo Workshop executives were dumbfounded as they could not follow Xiao Luo's argument in its essence.

Xiao Luo continued to explain, "For bread and pastries, we can aim to be on par with Sumir. But what we need is to differentiate our brand with a product that gives us an absolute advantage, and this revolves around the keyword 'habit.' There is no hard and fast rule on what products we can sell in the bakery business besides bread and pastries. Of course, we can sell other products, just like the Chinese medicine product mentioned by Mr. Wang earlier."

We shall develop a TCM health drink, a traditional Chinese medicine-based health supplement drink that aims to lower blood pressure and cholesterol. We will position the TCM health drink as our flagship product and use it to complement our other bread and pastries. The price of this flagship product must be sold at a premium price; otherwise, it will not convince consumers. I believe this will help to increase the overall sales across our product range. "

"Big boss, this idea might actually work, but we specialize in baking, and nobody knows about Chinese medicine. Are we recruiting a medical team?"

Luo Qi was the head of the research and development department, so she was in charge of developing new products. She had no background in Chinese medicine, nor was she well-versed in beverage production, which was also not her forte.

"Even if we could develop such a product, how should we go about promoting it? How can we convince the people of Xiahai to believe that the product indeed has the claimed effects?" Li Zimeng questioned. Decision-making at the top management level required thorough due diligence, and key managers needed to take responsibility for raising sensible questions; otherwise, it would be the negligence of duty.

Xiao Luo smiled and replied, "I will take charge of the R&D of the product personally. For marketing and promotion..." He turned to the head of the marketing department, Cang Jiamei, and said, "Director Cang, I shall leave this to you. I am acquainted with the president of Maternity and Child Care Hospital, Guo Taining. Look for him as he is very well versed in the medical field. If he agrees to help, then it should be a breeze to obtain endorsement from authorities for our products."

"Noted, president Xiao!" Cang Jiamei responded and nodded stiffly.

"As for the trust issue, director Cui's suggestion of showing a video of our production process in the retail store had been implemented in other companies as well, am I right?" Xiao Luo asked as he looked toward the second female manager who had expressed her view.