Gerstner met Feng Yu again. But this time, he is visiting Feng Yu's office. He is not representing IBM. He is representing his tobacco company.
Gerstner is a tobacco tycoon, and Feng Yu needs Gerstner's help.
For example … the promotion of e-cigarettes.
Feng Yu had told Feng Yu about e-cigarettes when he started to manufacture the humidifier. It was similar to using a nebulizer to atomize a liquid, but the specific purpose was slightly different. Also, the atomizer technology at that time is not so compact.
The first generation of e-cigarettes was introduced to the market last year. Of course, it was launched in Hua Xia. The response from the market is average because it is difficult to market it.
You say this is tobacco, right? It does not have an open flame. You say this is considered a medical device? It is harmful to the human body. The tar is removed, but the nicotine is not removed. You say this is a consumer electronic product? Not really. After all, even the atomizer humidifier is considered a household appliance.
Anyway, this product is not regulated and there is no safety evaluation. The standards are set by Feng Yu and the rest.
The cigarette oil is developed by Bing City Pharmaceutical, and the e-cigarette is developed by Wind and Rain Appliances. The brand is Tai Hua, and it is the same worldwide.
After testing in the Chinese market, they realized that this product will not be popular in the short term. But there will be no problems with profits. The cost of this product is very low, but because of the patented technology of the mini atomizer, no one can imitate it. They can keep the profits for ten years to come.
Now, Feng Yu is going to introduce the e-cigarette to the US market. The US market is also one of the regions with the highest tobacco consumption. Gerstner is a tobacco tycoon, and it will be easier for Feng Yu to cooperate with him.
Feng Yu passed a disposable e-cigarette to Gerstner and asked him to try it.
Although Gerstner is a tobacco tycoon, he mostly smokes cigars. However, he had never tried this thing before. He saw Feng Yu also pick up one to show him, so he took a puff and exhaled a mouthful of smoke.
Gerstner took a few more puffs and passed another cigarette to the person behind him. This person was a real smoker.
Feng Yu signaled the person next to him to open an electronic cigarette and show it to Gerstner.
"This is a smoking cartridge (mouthpiece). It's the same yellow color as common tobacco. This one was an atomizer. At the same time, it was filled with cigarette oil. It could be used for about 500 puffs. The white tobacco pipe below is mainly made up of batteries and some circuit boards … "
"Why don't you make it detachable? If that's the case, wouldn't the upper half be disposable?" Gerstner asked.
Feng Yu gave Feng Yu a thumbs up. No wonder Feng Yu is a tobacco tycoon. He can identify the problem with this electronic cigarette with one look. Feng Yu waved his hand, and someone opened the second box. Inside, there is an e-cigarette that is longer and thicker than a real cigarette. It is similar to a cigar, and there is an on button on it.
"This is an e-cigarette that can be filled with cigarette oil. But because of the atomizer's lifespan, it needs to be replaced after a period of time. Also, if you fill it with cigarette oil, the smell will be very strong. "
"Isn't this a bit too small? How many puffs can you take if you fill it up? Can't you increase the volume of the cigarette oil to increase the atomizer's power? Many smokers still like to take a big puff. "
Feng Yu understood what Feng Yu meant. Many smokers do not like Yellow Crane Tower cigarettes that cost tens of RMB per pack and would rather smoke Red River cigarettes that cost 5 RMB per pack.
At this time, someone passed another box to Feng Yu. After opening it, there is an e-cigarette bigger than a pack of cigarettes. If this e-cigarette is filled to the brim, it will produce a lot of smoke, and Feng Yu will not need to fill the cigarette oil for a week.
Gerstner noticed that Feng Yu is prepared for this. These types of e-cigarettes are for different groups of consumers. The first type is for people to try, the second type is for ordinary users, and the third type is for people who like e-cigarettes.
"We had spent a lot of money and effort to develop this e-cigarette, but the results are good. I own all the patents for this e-cigarette, and this means we are the only ones who can manufacture this e-cigarette. "
"E-cigarettes have many advantages. For example, there is no flame, and it will not cause a fire hazard. It does not have tar, and it does not have as many suspended particles as ordinary cigarettes. It is also less harmful to your family and friends. There are a few types of cigarette oil, and they can reduce the tar content to help you quit smoking. "
"Quit smoking?" Gerstner frowned. He is a tobacco magnate, and if no one smokes, how can he make money?
Feng Yu laughed. "Don't be anxious. Quitting smoking is only a function. If you really want to quit smoking, you can also quit smoking sweets or with your strong willpower. For those who don't want to quit smoking, you can just put them in a smoke-free place, and they will light up a cigarette when they can touch it. "
"Most importantly, the profits of this e-cigarette are not lower than traditional cigarettes, and it does not contain tar or flame. People will feel it is healthier and safer, and it will be beneficial for us to market our products. I think this will be easier than advertising tobacco products. "
In many countries, tobacco is not allowed to advertise, but those tobacco companies still think of other ways. For example, to increase some other business for the company, and then use the company's name or brand's name on the advertisement, indirectly using the brand to promote their tobacco.
"You want me to be your distributor? Will it be the North American market? " Gerstner can see the potential profits, and this will be a new source of profits for his tobacco company.
"Not only the North American market. If you are capable and dare to sign a guaranteed sales agreement with us, we can even sell the entire American market to you."
"If you sell the entire American market to me, how much commission can you give me?"
"10% of the sales, and the minimum sales must not be less than 100 million USD. You should know that the profits from tobacco are not high, and 10% is our best offer. We will be in charge of the media marketing. "
"What if I am in charge of the media marketing? I want 15% of the sales. "Gerstner felt 100 million USD should not be a problem.
"Do you think our marketing fees will be 5% of the sales?" Feng Yu asked. This was obviously an exorbitant demand.
"I think your e-cigarette's profits will be higher than ordinary cigarettes. 14%, and I can surely make this e-cigarette popular in America. "
"How about 12%?" Feng Yu bargained.
"13%. No one is more suitable than my company to be the distributor for this product. I can make this e-cigarette appear in front of smokers faster."
Feng Yu pretended to hesitate, but he is overjoyed in his heart. The price he wants is 15%. This e-cigarette's profits are much higher than ordinary cigarettes. Not only the selling price is higher, but the cost is also lower!
"Fine. Deal!"
… …
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