Chapter 58: Modern Business Thinking

Seeing that Li Xiaogong acknowledged the merits of modern cuisine, Du Chengfeng continued, “I have compiled a new-style menu. Given the current shortage of ingredients, there are only a few dozen dishes for now.”

“My first step is to fully promote these new-style dishes at the present Wangjiang Pavilion, to build a reputation in Chang’an. Naturally, the price for these new dishes will be higher than the existing fare at Wangjiang Pavilion.”

“Based on this alone, Your Highness, do you think Wangjiang Pavilion’s revenue could more than double?”

Li Xiaogong pondered for a moment and replied, “Chengfeng, the new dishes you’ve created are exceptional in color, aroma, and flavor—anyone who tastes them will surely sing their praises. I have no doubt about that.”

“There are many nobles and wealthy people in Chang’an, as well as merchants and envoys from various countries. If managed well, doubling the revenue should not be a problem. Do you have any other good ideas?”

After finishing his question, Li Xiaogong looked at Du Chengfeng with a hint of anticipation.

Although it’s said that good wine needs no bush, Li Xiaogong, after reading Du Chengfeng’s detailed plan, believed that Chengfeng must possess extraordinary talent in business if he could propose such a perfect vision.

Under Li Xiaogong’s gaze, Du Chengfeng remained perfectly composed and unperturbed.

The question posed by Li Xiaogong was one Chengfeng had long considered. He beckoned to Manager Lu, instructing him to bring a brush and a sheet of rice paper.

On the rice paper, Du Chengfeng wrote several words: advertising, marketing, reputation, service.

“What do these mean?” Li Xiaogong looked at the unfamiliar words on the paper, thoroughly puzzled.

“Your Highness, let me ask: if Wangjiang Pavilion wants to launch these new dishes, how can we quickly let everyone in Chang’an know? How can we rapidly build a name for ourselves?” Du Chengfeng countered.

“That’s simple. I can invite friends, noble guests, and wealthy patrons to sample the dishes. We could also hire people to shout and advertise throughout Chang’an,” Li Xiaogong answered confidently.

Du Chengfeng smiled, unconvinced. “Your Highness, forgive me, but those are the most basic and ordinary methods. They may have some effect, but not an ideal one. My approach is summed up in these eight words: advertising, marketing, reputation, service.”

Du Chengfeng drew a line beneath “advertising” and continued, “Let’s talk about advertising first. What is advertising? It is simply spreading the word far and wide.”

“How do we do that? Your Highness, imagine if we placed eye-catching notices in prominent, densely populated areas of Chang’an.”

“We could also post such notices on walls of tall buildings that are visible to passersby, and set up clear directional signs for Wangjiang Pavilion at key intersections throughout the city. Wouldn’t this be a more direct and effective method?”

In this era, people did not understand the convenience and benefits of advertising, so Du Chengfeng took a gentle, persuasive approach.

After Du Chengfeng’s explanation, Li Xiaogong quickly grasped the concept. He slapped his thigh in excitement, exclaiming, “That’s it! This method is brilliant—so simple and effective. Chengfeng, you truly are a genius!”

At that moment, Li Xiaogong looked at Du Chengfeng with shining eyes, his earlier suspicions fully confirmed.

Manager Lu, standing nearby, admired Du Chengfeng’s method even more, wondering why they had never thought of such a simple solution before.

Du Chengfeng’s straightforward explanation opened Li Xiaogong’s mind and further piqued his interest.

“Go on, Chengfeng! Please continue,” Li Xiaogong said, now visibly excited.

Du Chengfeng nodded and continued, “Next is marketing. This encompasses many aspects; it’s impossible to explain them all at once.”

“In general, it’s a series of attractive strategies and plans targeted at specific customers, with the ultimate goal of enticing them to consume at Wangjiang Pavilion.”

He then gave Li Xiaogong a brief overview of marketing psychology and strategies.

The term “marketing” was too profound for this time, so Du Chengfeng simplified it as much as possible. Even so, Li Xiaogong and Manager Lu felt somewhat lost.

Knowing they might not grasp it immediately—after all, marketing was a complex subject in later generations—Du Chengfeng didn’t expect them to fully understand right away; their confusion was only natural.

Gathering his thoughts, Du Chengfeng continued, “Your Highness, let me give a simple example: our Pavilion’s Immortal Wine is usually priced at three strings of coins per jar.”

“Suppose we hold a discount event during a festival—buy two jars at a ten percent discount, five jars at a twenty percent discount, or perhaps buy two jars and receive a gift, like a small dish.”

“I call this ‘promotion,’ a way to encourage customers to buy and consume more Immortal Wine. This so-called promotion is a form of marketing.”

“Also, as Your Highness can see in my plan, I mentioned a membership system, which is another marketing method. These two are the simplest forms of marketing.”

Du Chengfeng paused, turning to the page about the membership system. Li Xiaogong read it carefully, comparing it to what Du Chengfeng had just explained, and gained a better understanding. These methods simply used different tactics to appeal to customers’ psychology.

“Chengfeng, I must say your example is excellent—easy to understand and effective. I basically grasp what marketing means now.”

“If advertising attracts customers and guides them into the shop, then marketing encourages them to spend. Discounts may seem to reduce revenue, but in reality, they increase consumption.”

“And they satisfy the customers’ desire for a bargain, making the outcome mutually beneficial. Chengfeng, am I right?” Li Xiaogong, now deeply understanding, spoke with confidence.

“Your Highness is astute—that’s exactly right.” Du Chengfeng sincerely praised him; Li Xiaogong’s ability to accept and comprehend was impressive.

Perhaps merchants in Chang’an had used similar methods before, but such systematic analysis, Du Chengfeng believed, was impossible in this era of rigid thinking.