Gu Ao and Mina spent a long time tracing the "defensive spare tire acquisition" that Schwartzman talked about, and finally figured out the status quo.

The additional $5 million Schwarzman spent mainly bought 25% of the existing shares of two small foreign fast food brands that are currently relatively hot, and bought out the overseas expansion rights.

The first one is California Fried Chicken. It is a tepid ordinary fried chicken that has been in the United States for more than ten years. It has only developed in California and states where Latino immigrants in Mexico are more popular. The Yankees in the Northeast do not eat it at all and have not yet opened to the Northeast New England and the Great Lakes.

Schwartzmann's defensive acquisition of part of the equity in this thing was entirely to threaten the existing shareholders of Kentucky Fried Chicken, making them realize that "there is also a spare tire that can be used for overseas promotion of fox and tigers", which will suppress the price of Kentucky.

Since it is a spare tire, the California fried chicken transaction cost only $3 million, which is only 20% worth of Kentucky.

Gu Ao also knew that in the future, the California fried chicken with the Chinese translation of "California Fragrant Chicken" and the Texas fried chicken with the Chinese translation of "Diccos", they were all slightly popular in China for a while.

Among them, the California fragrant chicken was around 94 to 97 years ago. Before the trip, Gu Ao was still in the second half of elementary school and was taken to eat by his parents. Later, it seemed that he suddenly disappeared.

Dicos has been awarded for a long time, probably because this brand was bought by Wanwan's Dingxin Group in the future, so no matter how much it makes, it will spare no effort to promote it in the Chinese-speaking area. However, under the pressure of Kentucky, the pricing will definitely be slightly lower.

If you rely on "foresight" to place bets, you have to choose one of the California Fragrant Chicken and Dicos to acquire it. Gu Ao is worried about choosing Dicos. However, since Dicos does not intend to sell their own life now, it is just used as a spare tire, both of them are the same.

Gu Ao felt that after asking Mina to buy out the overseas expansion rights, she could hold it in her hands. Even if she had to hold on for ten or eight years, the reason was very simple. Now these brands are all in their own hands, so why bother to grab a competitor in the Kentucky fried chicken business?

Defensive spare tires are to focus on defense, hang the whip on your head and not swing it down. As long as your own people see the existence of this whip, they consciously speed up their work efficiency.

However, in the future, you can also consider learning the matching strategy of Yum Group in the future, changing the name of the California-flavored brand, and not using the positioning of "Fragrant Chicken" (Fragrant Chicken was originally a name that the Chinese people turned out after entering China. The original English brand has nothing to do with Fragrant, it is just a California-based fast food)

It is entirely possible to take advantage of the western and Mexican-style properties of California to change California fried chicken into a restaurant that also sells tacos, onion rings, and various tomato, corn, and peppers. It is just like Yum Group's positioning of taco clocks.

However, it is estimated that as long as the "American goods" are not supported, Chinese people will not be very interested in backward and civilized Mexican cuisine. Even if this business starts in the future, at best, it will only do petty bourgeois business in first- and second-tier cities. The public will not eat it at all. Well, it is basically the kind of petty bourgeois who will talk nonsense about "Mayan culture" when chatting, and then go to eat Mexican taco.

Perhaps, when considering the specific publicity, let alone Mexican cuisine, it is just "Southern California style and American Latino food culture", which may have deceived more vanity people in the early stages.

These are all the later things that will happen many years later, so don’t think too much about it for the time being.

...

In addition to California aromatic chicken, the second defensive spare tire that Schwartzman found was also local to Kentucky, perhaps because it was local to Kentucky, or even local to Louisville, that he was discovered while inspecting Kentucky fried chicken.

Because this second spare tire is really too weak, it has only been open for two or three years, and its history is very new. It only operates some chain stores in Kentucky, and has never been to any other state. The brand is called papa-john, which is a pizza seller.

In fact, the Chinese name of this thing was translated as "Battle John" in later generations, and it has no sense of existence in China.

When Gu Ao questioned the decision to make a defensive spare tire, Schwarzman explained this:

"I thought you would need a fast food positioning brand that makes pizza cakes and Italian dim sum. This is also a reference to the conventional layout of the American fast food group. The main burgers are the lowest-end, while the main pizza is slightly higher-end than the burgers, which can form high and low-end matching. Moreover, this brand is not expensive. Currently, the 25% equity in more than a dozen stores in Kentucky, plus the future expansion rights buyout, will be a total of 2 million US dollars."

"Then why don't you buy Pizza Hut?" Gu Ao asked casually.

Schwarzman: "pizza-hut? That one is more expensive than Kentucky fried chicken. After all, it is the number one pizza chain brand in the United States. Although Kentucky fried chicken stores in the United States are many times better than pizza-hut, the benchmark positioning of Kentucky fried chicken sells hamburgers after all, and McDonald's also sells hamburgers, so Kentucky is not the first in the sub-sector, so it is possible to sell raw at a relatively low price.

You know, the number one in any industry will be at least five to ten times more expensive than the second, which is determined by the head effect, because most consumers will only remember the first place, occasionally remember the second place, and almost no one knows the third place.

The highest peak in the world is Mount Everest, but can you tell me what the second highest peak in the world is? The first one to land on the moon was Armstrong. What is the name of the colleague who was two steps behind him? I don’t know."

Gu Ao raised his hand and stopped Schwartzman from continuing to explain: "Okay, there is no need to say more. You said that Pizza Hut is currently the number one pizza chain in the United States. I already understand it. If this is the case, I think your defensive combination is fine.

We just make money from vain consumers in China. They don’t understand the difference between Pizza Hut and Papa-john. What did we introduce first and promote this brand, then they would be awesome. This is painting with preconceptions on a piece of white paper.”

In this case, let Pizza Hut die in this time and space.

When Gu Ao thought of this, he felt quite vicissitudes of life.

Unexpectedly, the spare tire in KFC's sub-sector did not play the role of "killing the main tire", but instead killed the main tire in the sub-sector of pizza.

However, who made Pizza Hut already the number one in the sub-industry? And KFC should be lucky. It is only the second in the big category of "hamburgers", so it still has room for a low value.

"I think it's OK, just buy it like this, I won't cheat you. However, except for Kentucky fried chicken, there may be no need to promote the other two brands after you get it for several years.

Because Chinese people are still too poor now, even vanity consumers have not grown to the point where they can appreciate pizza. As for the niche and petty bourgeois demands that pursue subdivided personalities, they are far from growing up."

After Gu Ao sorted out all the relationship, he told Mina so much.

Mina nodded slightly, then recalled a question and asked Schwartzman very professionally: "Then after we bought out the overseas expansion rights of these brands, will there be a schedule for our expansion in the investment agreement? If I don't open a store for five years, don't open a store for ten years, and hide it, they can't sue me, nor can they take back the authorization as 'the brand intentionally does not use it', right?"

Schwartzman smiled proudly: "Of course we have considered this. You can look at the terms below. These are originally 'defensive spare tire investment'. When I bought it, I thought about hiding it.

Don’t worry, American companies deliberately hide their money after acquiring competitor brands, and lose money in vain and wipe out their brand awareness among consumers. However, they have done hundreds or thousands of times, and American law allows this to be done."

The trick Schwartzman said was the same as the reason why Coca-Cola, after entering the Chinese market in later generations, acquired a bunch of old Chinese beverage brands, and then covered up the losses until everyone forgot about it and their goodwill disappeared.

Judging from a single acquisition, Coca-Cola's acquisition is to lose millions and tens of millions at a time and buy other people's trademark brands without using them. It depreciates to the point where it is worthless. So don't the investments all lose to zero?

But Coca-Cola's accounts are completely calculated because it knows that before Coca-Cola entered China, the Chinese local brands had already gained too much popularity by entering the market first and relying on lack of materials. To eliminate these popularity and brand minds, the best way is to acquire Xuezang.

The national brain has limited total memory for a certain type of consumer brand. Spending 10 million to free up a little space for the billion-dollar brain, forgetting a few other brands, and only remembering Coca-Cola, this is an intangible asset.

This is how consumer goods businesses are done.

Of course, the premise is that you must be the first in the industry in this segment like Coca-Cola, and ensure that "every time consumers forget another brand, the brand you free up for more brain capacity is your Coca-Cola", and you will make money.

If you are just the second in the industry, you cannot use this trick. For example, if Pepsi buys Huiyuan Juice and Arctic Ocean and hides it, wait for consumers to forget these two brands. The free brain capacity is spent on remembering Coca-Cola Sprite Fanta, Pepsi Cola can’t cry without tears?

Only when the whole industry is the world and the country, and the main part is yours, can you do this business model of "spend money to buy an enemy and starve to death, and I will make a profit."

Mina sorted out Gu Ao's ideas and quickly understood this.

"It's okay to hide it in the snow. It seems that the key is that we must be the first in this industry within a specific market scope, and absolutely the first. In this way, the death of any peer can be regarded as our profit.

For those companies that have not yet achieved the absolute number one in the industry, the death of their peers may not be your profit. It is possible that this peer will die at the hands of the industry leader. At this time, you are facing the situation where Shu is destroyed and Wu Gu is dead, and his lips are lost and his teeth are cold."
Chapter completed!