Chapter 214 The Happiness of Capital You Can’t Imagine
The sixth pillar industry.
Hadi wants to develop the ‘luxury industry’.
"The manufacturing industry makes money on the scale of the industry, and the luxury goods make money on the brand. We have the media industry as a support and have a high degree of publicity, and we can build a number of luxury brands."
"Manufacturing profit is often only about 10%, while the profit margin of luxury goods is as high as several times and dozens of times. Leather goods, clothing, perfume, silk scarves, watches, jewelry, such as a bag, cost only $10. But it can sell for 2,000 US dollars. Why, based on the added value of the brand."
"We can buy stocks in luxury brands, or we can build luxury brands ourselves. As long as the promotion is in place, any product can be turned into a luxury."
Finally,
Hadi looked at Andy.
"In addition to the current department, the group company has to establish a department, which is very important."
"What department?"
"Group think tank."
"The management is the torso, and the think tank is the brain, which can provide the company with policy and forward-looking policy research and consultation. The think tank can summarize business intelligence, provide policy designs and programs, and guide the company's decision-making."
"After all, one person’s IQ is not enough. If a group of smart people can be brought into play, and the group company is a block structure, think tanks can connect these departments and subsidiaries together."
Andy expressed support for Hardy's plan and took back to add details. Two days later, Hardy Group held its first group meeting and announced the group's plan for the next three years.
Of course, some can be announced directly, and some are regarded as the company’s top secrets, which only a few people know.
These plans are the company’s design for the future. If it leaks, it may cause attacks from competitors or get ahead of you.
After the meeting, each company and each department must formulate their own three-year plans. These plans must be submitted to Hardy, who will review them one by one.
For example, Walsh Mining, this is the first listed company that Hardy acquired. In fact, it was obtained from Hardy, and it did not operate well. It only operated the stock price several times and drew millions of blood from him.
This time, Hardy made a plan. It is a pity to put a listed company well. He ordered Columbus, the current prospecting director, to expand the prospecting team and find new mineral sources.
"Good boss."
"How are you going to start your work?"
"Oh, expand the survey area and work **** the possible mines in the United States." Columbus said.
Hardy shook his head and took out a map from the drawer. "This is a map of Australia. Experts say that Western Australia is an ore-intensive zone. There are only a few companies in that area. There is still a large area that has not been surveyed. People pass by."
Australia’s reserves of iron ore, bauxite, coal, gold, and copper are among the highest in the world. It is now 1948. Many large mines of later generations have not yet been discovered. Now is a good time to enter the Australian mining industry.
In his previous life, Hardy went to Australia to play. A friend introduced him to some situations and said a few place names, but Hardy didn’t know the exact location.
I only know that Australia’s minerals are mainly concentrated in Western Australia. Let Columbus discover the rest. He can even find the New World, so prospecting should not be a problem.
After dealing with the group's affairs, Hardy relaxed instead.
There are presidents and managers of various departments and companies. They are responsible for the specific affairs. If he does everything by himself, he needs to do what they do.
A few days later, Andy reported to Hardy, and news came from PepsiCo.
Just after the third day of the new year, Pepsi-Cola Company announced its financial report for the previous year. Compared with the previous year, Pepsi-Cola’s business shrank again in 1947 and its profitability continued to decline.
Affected by the news, PepsiCo’s share price has declined.
Then some bad news circulated in the market, saying that Pepsi-Cola's financial situation is very poor and it is already on the verge of collapse. The shareholder meeting is preparing to negotiate with Coca-Cola again, hoping that Coca-Cola will acquire it.
This is the third time Pepsi has requested Coca-Cola to acquire it.
Affected by this news, the stock price fell again.
A few more days passed,
Pepsi-Cola's syrup production plant in San Francisco suffered a pipeline collapse, causing nearly 50,000 liters of syrup to leak. At the same time, due to the need for maintenance, the production was stopped for three days, and the loss could reach hundreds of thousands of dollars.
As soon as this news came out, Pepsi's stock price fell again.
Following the news from the Global Times, a reporter from the Global Times went to the Coca-Cola Company for an interview and asked whether Coca-Cola would buy Pepsi. The Coca-Cola president made it clear that they would not buy Pepsi.
Finally, the commentator analyzed:
Two companies, Pepsi and Coca-Cola, have been competing for the market for decades. In Coca-Cola’s mouth, Pepsi has always been a copycat, and even in their market reports, Pepsi has never been rectified, but called the copycat.
Pepsi and Coca-Cola taste the same. Coca-Cola’s acquisition of Pepsi is almost meaningless. It costs tens of millions of dollars and may also touch antitrust laws. Therefore, the possibility of Coca-Cola’s acquisition of Pepsi is slim.
If Pepsi does not develop in the future, there may only be one end, that is, shutdown and bankruptcy.
This report made the market lose confidence in Pepsi, and a panic sell occurred. The stock price began to fall sharply. It has fallen from US$8.3 at the beginning of the year to US$5.6 per share, and the market value has evaporated by more than 5 million.
Even many shareholders have lost confidence in Pepsi’s future.
But at this moment, Pepsi came to bad news again. As a newcomer, the Hardy Group, which acquired the shares of Pepsi-Cola, is now the largest shareholder of Pepsi-Cola. At the latest general meeting of shareholders, the Hardy Group’s shareholders and The current president of Pepsi-Cola Walter Mack had a fierce dispute. Afterwards, the Hardy Group said that in view of the situation of Pepsi-Cola, it might sell its shares.
The largest shareholder is about to leave, and those small shareholders become more panicked, and the stock price also drops again.
Just as the minority shareholders were in a panic, a financial company appeared and approached them and was willing to buy the shares of shareholders. Many shareholders lost confidence in Pepsi and sold their shares one after another.
In this way, the financial company acquired a lot of stocks in the hands of small shareholders, accounting for 18% of the total share capital.
At the same time, Andy has also absorbed more than 8% of the shares in the circulating stock market.
Now Hardy has 49% of the shares and is the well-deserved largest shareholder.
Taking this opportunity, Walter Mike also bought some shares of Pepsi, and his total shares now account for 27%, making him the second largest shareholder of the company.
Uncle Ma once said: The accumulation of capital is bloody!
In order to make money and control more capital, Hardy and Walter Mack used various methods to suppress the stock price, and when people panic, they madly absorbed the shares.
The real losses are those small shareholders and shareholders.
Is the stock going public to make shareholders make money? No, it will never be, but for better blood-sucking.
Walter Mike found Hardy this day, delivered a box of Pepsi, and said with a smile: "Mr. Hardy, the pull-tabs and sweepstakes we talked about before are all set up and registered."
Speaking and pointed to Coke.
Hardy picked up a bottle of Pepsi, which was not much different from a Coca-Cola bottle. It was also a classic thin waist bottle. The lid on it was changed. It used to be a metal lid, but now it’s an aluminum lid with beautiful Pepsi blue printed on it. Red logo, with a pull ring next to it.
Hadi pulled the tab, the bottle cap was pulled open, and there was a soft bang. Hardy liked this sound very much. It was much better than the sound of a can.
Under the bottle cap, there is a clear handwriting, and Hardy’s bottle is written with four large characters ‘One more bottle’.
"Boom boom boom~ boom boom~!"
Hadi opened five or six bottles in a row.
Thank you for your patronage, and I have another bottle. Finally, I was lucky and offered a 50-cent cash prize.
Hadi put down the cap with satisfaction.
"How about the cost of bottle caps?" Hardy asked.
"Each cap needs to be printed, so the cost has increased a bit. The cost of each cap is about 0.3 cents, which is twice as high as the previous iron cap." Walter Mack said.
Hardy feels completely acceptable.
"What about the awards?"
"The ratio is 50%, thank you for your patronage, 45% for another bottle, and 5% cash reward. Starting from 10 cents, it will decrease by a geometric multiple upwards. About 100,000 bottles will give a $100 prize to stimulate consumers."
"Also, the ad slogan has also been changed this time, focusing on young people."
Hardy nodded, "I remember that Coca-Cola hasn't advertised on TV yet. Find HD Pictures and ask them to help Pepsi to make an advertisement for Pepsi and broadcast it on ABC TV. The main direction is not how good the taste is, the focus is on the easy pull ring. It’s easy and fun, and it’s fun and joy to redeem prizes."
"Recently, more awards will be released. People will see that there are awards, which will form a concentrated publicity effect. Then let the TV news report, I believe that more people will buy Pepsi."
Walter Mike can't help but nod.
A few days later.
In the middle of the 8 o'clock program on ABC TV, a new Pepsi commercial was broadcast. A group of young people held Pepsi and shouted:
"Drink Pepsi, good drink and fun to win the jackpot!"
Gently pull the tab to easily open the cap of the Coke bottle. After a good drink, turn over the cap, and the middle label appears on it.
A few people next to look at them, they all shouted excitedly, "Wow~ I won the prize, one hundred dollars prize!"
Next is the introduction of the winning rules, there is another bottle, and there is a cash prize, up to 100 US dollars.
In this era, one hundred dollars is half a month’s salary for a worker.
is not a small amount of money.
Lahuan Pepsi is officially on the market. Many people flock to grocery stores and supermarkets to buy it at the same price as Coca-Cola, and they may win a lottery. Why not buy Pepsi.
At any time, the poor are the mainstream of society, and there will be markets for cheap things. This kind of cheap and likely to win prizes is naturally more popular.
A few days later,
ABC news time.
The two hosts laughed and broadcast an anecdote.
The male host said: "A young man bought a bottle of Pepsi. He hit another bottle for the first time, and then kept getting another bottle. In the end, he hit a full 20 bottles, looking at a table full of Coke. He didn’t know how to deal with it, and finally he invited the people present to drink together."
The hostess laughed, "Hehe, it is really interesting. I read the Global Times and reported some information about winning the big prize. It said that there was a girl who only bought a bottle of Pepsi and won the prize of 100 dollars when she opened it. I was so lucky, and the girl bought the new bike she wanted most."
After these rounds of publicity, Pepsi's sales have soared.
In just two weeks, the sales volume of Pepsi-Cola has increased by 800% compared with the same period last year If according to this data, this year's sales can reach more than US$25 million, and the net profit may be 3 million.
This is definitely a gratifying number, because Pepsi lost more than 1 million last year, and it took just a long time for a beautiful turnaround.
Because of the hot sales, the production volume can't keep up for a while. Now we buy as much as we can. Even large trucks are waiting in the factory, and the workshop is running at full speed.
At the same time Andy reports to Hardy.
Because of the surge in sales, coupled with the role of advertising and publicity, PepsiCo's stock price rose sharply.
It has more than doubled in a short time, and it is still soaring. The main reason is that the idea of pulling the ring lottery is so good. Many investors feel that the time for Pepsi to rise has come, so they have bought.
Hardy originally bought 23% of the shares, and later through operations, he purchased 26% of the shares, because the operating stock market price is lower, totaling a little more than 6 million, and now Pepsi's stock price has soared, and his 49% of the shares have soared to 1,300 Million.
In just over a month, it made more than 6 million profit doubled.
This is the happiness of capital, you can't imagine it.
(End of this chapter)