Chapter 55: Endorsements
After confirming that Shanghai Tangren would be distributing "[Immortal]" Jiang Cheng left the negotiations about box office revenue sharing and film release dates to Zheng Hai and Cai Yinong. As the CEO of Apex Films, Zheng Hai was responsible for the company's daily operations, while Jiang Cheng, the chairman, focused only on filmmaking and setting the company's overall direction, leaving other matters to his team. This approach was based on the belief in specialization and the recognition that one person's energy is limited. Jiang Cheng, not wanting to repeat his early demise in his previous life, delegated authority to other members of the company, allowing them to fully utilize their talents, unlike Lin Junhao, who meddled in everything but excelled in nothing.
Apex Films had undergone a complete transformation, brimming with vitality and enthusiasm from every member. This was hardly surprising, given that the company had avoided closure, the employees had kept their jobs, and now enjoyed excellent working conditions. Having faced the prospect of unemployment, they now greatly valued their hard-won stability and had every reason to work hard.
Recently, there had been internal rumors that the young boss intended to invest in another movie next spring, with a projected budget of 5 million yuan. This news excited everyone in the company, as film production companies fear the lack of projects, which implies fewer job requirements and thus fewer employees. Now, with an investment of 5 million yuan, the risk of layoffs was much lower. However, the authenticity of this news was still unconfirmed.
This news was indeed true and deliberately released by Jiang Cheng through Zheng Hai to motivate the staff and prepare for the new film.
With the success of Zhu Xian's first volume and the continuous hot sales of Southern Weekly - Literature Edition Jiang Cheng's finances had improved significantly. The first volume of [Zhu Xian] had sold over 4 million copies nationwide, setting a new record for book sales in China over the past decade. Moreover, Jiang Cheng had a 50-50 profit-sharing agreement with Southern Weekly, and with the recent profits from two issues of Southern Weekly - Literature Edition, his personal account now exceeded 25 million yuan, more than before.
With money in his pocket, Jiang Cheng felt confident and began considering his next film project. However, he was still undecided about the specific content, only sure that it would be another low-budget film. Apex Films was still a small player, unable to produce big-budget movies, so they had to slowly build their strength and wait for the right opportunity. Jiang Cheng believed this wouldn't be too far in the future.
At the moment, however, Jiang Cheng had no time to ponder these things, as he was on a flight to the capital to complete an advertising shoot.
As Jiang Cheng's popularity in the entertainment industry rapidly rose, so did his value, attracting countless advertisers. However, Tangren had declined most offers, aiming to build a classic image and avoid taking just any advertisement, as it could spoil his overall image.
Big brand advertisements were hard to come by at the moment. Although Jiang Cheng was now a superstar in the entertainment industry, to many, that meant little. A meteor, no matter how bright, is still just a meteor and not worth too much investment.
Therefore, the companies that approached him were mostly unknown small firms. There were offers like a shaving company (Jiang Cheng didn't even have a beard yet), an underwear brand (outright rejected, as Jiang Cheng, a traditional and shy person, couldn't accept parading in underwear in front of the national audience. If he dared to do such an advertisement, his conservative father would chase him down the street with a kitchen knife), and some unheard-of beverage and food endorsements, which Jiang Cheng ignored due to potential food safety issues.
Accepting these kinds of endorsements would have damaged his reputation.
So, Tangren and Jiang Cheng were waiting for the right product endorsement offers.
After nearly three months, businesses realized that Jiang Cheng wasn't just a fleeting star but a celebrity with the potential to become hugely popular. It was the best time to offer him endorsement deals, capitalizing on his current popularity but before he became a top-tier star, securing a good deal with minimal investment.
Despite his high popularity, most of it stemmed from his status as an author; his persona as an artist wasn't fully recognized yet. An artist's value in the entertainment industry often requires years, even decades, to be broadly acknowledged. Therefore, the prices offered by these companies were around two to four million yuan for three years.
This included major brands like Pepsi and Coca-Cola, as well as clothing brands like Adidas and Metersbonwe. These brands, reversing their previous wait-and-see attitude, were now eager to sign deals, leaving Tangren somewhat spoilt for choice. However, Jiang Cheng wasn't satisfied with the proposed three-year contracts worth two to three million yuan.
Three years was too long to commit at this stage of his career. He could wait, as he was still young and would see if they could hold off for one or two more years. He thought three million yuan was too little for such a bargain.
It wasn't that Jiang Cheng was solely focused on money, but he believed in securing a fair and appropriate price for commercial endorsements. He would undoubtedly contribute to charitable performances and donations, but business is business.
After convincing Sister Cai, Tangren agreed with Jiang Cheng's view and rejected these endorsement offers, focusing instead on promoting [Autumn's Concerto] and [Immortal] Only with solid achievements could they gain more benefits.
At this time, a domestic company approached Jiang Cheng - Feichang Cola.
Feichang Cola might not be well-known to many, but its parent company, Wahaha, is a renowned Chinese brand, one of the world's top four beverage manufacturers. It could even be said that the generations born in the 1970s and 1980s grew up drinking Wahaha products.
Feichang Cola, developed by Wahaha after extensive market research to suit Chinese tastes, was launched in 1998. After over a decade of growth, Wahaha felt ready to compete with global brands. Following more than two years of careful development, "China's own cola - Wahaha Feichang Cola" was introduced. Since its production began in May 1998, Feichang Cola rapidly gained market share, with an annual production and sales exceeding 600,000 tons. It challenged the dominance of Pepsi and Coca-Cola, breaking the myth of Coca-Cola's invincibility and inspiring national brands to compete internationally.
Feichang Cola's annual sales fluctuated between 2 and 3 billion yuan, securing a firm position in China's carbonated drink market.
However, Jiang Cheng hesitated. Despite impressive figures, Feichang Cola was primarily popular in rural markets and faced significant challenges in urban areas. This meant that most of its sales were in rural areas, with limited success in cities.
Some might argue that where Feichang Cola sells its products is none of Jiang Cheng's concern. Why care so much? Just shoot the advertisement, take the money, and leave!
Indeed, on the surface, Feichang Cola's sales locations seemed irrelevant to him. But in reality, it mattered greatly!
The primary consumer group for cola drinks is young people, and Feichang Cola's lack of traction in cities indicated that it was not accepted by urban youth. Yet, most of Jiang Cheng's fans were young city dwellers, as he gained fame online, and most internet users were urbanites.
This means that Feichang Cola's brand positioning and target market conflict with Jiang Cheng's own image.
Feichang Cola has always positioned itself as "the cola for Chinese people" and "for happy occasions, drink Feichang Cola." This marketing strategy might seem somewhat unsophisticated. Moreover, whether acknowledged or not, there is a general perception in China that foreign goods are superior to domestic ones. This belief varies in intensity, with some people openly preferring foreign products, while others subconsciously lean towards them.
Although Feichang Cola's taste is comparable to Coca-Cola and Pepsi, and most people probably can't tell the difference, there is a preference for the foreign brands over the equally good-tasting Feichang Cola. Apart from the subconscious belief that drinking foreign cola is more stylish than domestic cola, the real issue lies in Feichang Cola's positioning. The primary consumer base for cola is young people, and to them, fashion, individuality, and self-expression are the most appealing concepts. From this perspective, Feichang Cola indeed seems a bit "unsophisticated."
Cola is just a type of carbonated drink with little inherent cultural value. So why do some consumers prefer only Coca-Cola or Pepsi, and not Feichang Cola?
The key issue lies in the century-long market cultivation and competition of Coca-Cola and Pepsi. Both companies consistently targeted the rebellious, expressive young generation as their core consumer base. They tirelessly used sports and pop music – two things beloved by young people – as carriers of cola culture for brand promotion, tightly linking their brands to consumers through these mediums. They infused cola with rich connotations beyond the product itself, endowing it with an image of vitality, youth, fashion, and vigor. These attributes accurately reflect the cultural preferences of urban youth in mainland China and exemplify the successful "cultural marketing" of these two cola brands.
Coca-Cola has always promoted a healthy and positive lifestyle through its brand ambassadors. Over time, celebrities like Andy Lau, Liu Xiang, SHE, Will Pan, Shawn Yue, Tony Leung, Shu Qi, Sean Lau, Zhang Ziyi, and Li Yuchun have not only further defined Coca-Cola's brand image but also created many opportunities for consumers to interact with their idols.
In September 1998, Pepsi launched a new blue "cool look," using Aaron Kwok's "One Change Overwhelms the City" ad and numerous promotional activities. Under the theme #askformore, with stars like Janet Jackson, Ricky Martin, Faye Wong, Aaron Kwok, Sammi Cheng, Jay Chou, Edison Chen, Louis Koo, Jolin Tsai, F4, Rain, Yao Ming, Nicholas Tse, Li Xiaopeng, David Beckham, and Anri Sugihara, Pepsi created a blue storm of limitless desire."
In some respects, both "Colas" have always been selling consumer culture and promoting their brands according to consumer culture. In the eyes of consumers, Pepsi represents the surging passion of the new generation, while Coca-Cola conveys the fiery vitality of youth. These are accurate representations of the current consumer culture among urban youth in China, the fundamental reason why both brands remain vibrant after a century.
"Feichang Cola" has failed to recognize that cultural preferences are the core barrier affecting cola consumption among its target group. It also hasn't followed up with research on the needs and characteristics of urban consumers, despite Wahaha's strong presence in the city.
Now, Feichang Cola seems to have realized its shortcomings. Hence, they approached Jiang Cheng, who is extremely popular among young people and a superstar, hoping to use his image to change Feichang Cola's perception among the youth and make a reverse attack from rural to urban areas. Ironically, though Wahaha's stronghold is in the cities, Feichang Cola has struggled to establish itself there.
In his past and present life, Jiang Cheng has grown up drinking Wahaha products. Although Pepsi and Coca-Cola entered the Chinese market early, Jiang Cheng's family had modest means during his childhood. Wahaha was considered a luxury, while cola was something he only encountered in high school. He has a sentimental attachment to Wahaha, but he wouldn't let emotions cloud his judgment of the reality.
Wahaha was determined this time, offering 10 million yuan for a three-year endorsement deal with Feichang Cola, and this price wasn't final. It would be renegotiated annually based on Jiang Cheng's rising value, and it was exclusive to Feichang Cola, not all Wahaha beverages.
Undoubtedly, this endorsement offer was very attractive. If it were Pepsi or Coca-Cola, Jiang Cheng might have already agreed. But for Feichang Cola? He needed to think it over.
The main issue was the conflict in positioning between Feichang Cola and Jiang Cheng's image. However, compared to Coca-Cola and Pepsi, Feichang Cola had its advantages, notably being a national brand, an important factor for many people. Feichang Cola's strong foothold in rural areas could also be partly attributed to national policy support.
Jiang Cheng harbored some patriotic sentiments, although he doesn't usually show it. His ambition to revitalize Chinese cinema reflects this mindset. Feichang Cola, as a national brand, felt closer to his heart than foreign brands. Moreover, Feichang Cola's offer was the highest, and the possibility of negotiating the endorsement fee based on his future growth was undoubtedly the best affirmation for him.
Additionally, it seemed that other companies had reached a tacit agreement, unwilling to offer more than two to three million yuan for a three-year period, averaging just over a million yuan per year, far less than Wahaha's offer.
After some hesitation, Jiang Cheng ultimately agreed to endorse Feichang Cola under the Wahaha brand. He was also curious to see how Feichang Cola would change with him as the spokesperson and whether he could help this national brand make a grand turnaround.
A fascinating challenge, wasn't it?
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