Advertising costs. Pepsi, lids, scandal

Advertising costs. Pepsi, lids, scandal

When Pepsi still lagged far behind Coca-Cola in the market of Southeast Asia, namely in 1992, the company decided to launch a very attractive action in the Philippines – “Fever of numbers”.

The strategy seemed very simple. Each code cap and the winning amount (from 1 thousand pesos to 1 million) were inflicted on each lid. Money could be obtained only at the end of the campaign when he chooses the “winning” code. It’s simple. It could be if Pepsi did not make a mistake.

For the victory, they chose exactly the code that should not be defeated in any case – 349. It was printed on 800 thousand covers, and they gave him 1 million pesos. And, of course, the company did not have that much money.

The company tried to get away with sending a computer failure, but this only exacerbated the situation. In the capital of the Philippines, riots broke out, people began to burn factories and trucks brand, killing 3 employees. As a result, the company was forced to give all the profits earned in 2 years – only 250 million pesos (0.03% of the promised).

Conclusion: promised – pay. You can not – simply do not promise.

Read about another big marketing fails: Enchanting failure, or as the balls filled the city and  Sweet flooding by Snapple

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