If you are a small business owner and get angry because of that small Facebook Ad you paid for $5 didn't work all that well, well, imagine that you are one Chief Marketing Officer, working for a "Blue Chip" company and realize that instead of making the company money, his marketing mistake actually cost his company millions.
So here it is, the Top 10 Dumbest Promotional Mistakes that Cost Companies Millions!!!
Number 10: Apple-U2 Giveaway
You would have probably heard of this one, the story that made U2 part of the meme world for years to come, but just in case you don't know, let's go ahead and explain it a bit.
Back in the year 2014, some genius at Apple, Inc came up with the idea that people would love to have their new product prepackaged with an album that no one really cares about. At this point, you might think, "well, just a simple give away, what is wrong with that.?" well, aside from the annoyance it caused for people logging into iTunes for their very first time, there is also a mythological thing called "Royalties." So Apple, Inc paid an undisclosed fee in royalties to U2 and also took a whopping of 100 million in marketing campaigns for the band to promote their new album. As shocking as this might seem, Apple even stepped in to defend the promotion and the band which clearly led to a bunch of undesirable responses within various online communities.
Number 9: Walkers Weather Prediction
Answer quick, when I say "British Weather" what comes to your mind.? it was RAIN, right,? well you are probably smarter than the guys running marketing for Walkers Crisp and this is how the story goes. Some genius decided that people would have fun predicting the weather if they could win a prize for it, so Walkers Crisp decided to pay their faithful customers 10 pounds if they correctly guessed where the rain will fall on a grid map of the UK, of course, they weren't that stupid as they charged everyone the cost of a bag of chips (40 pence) to have a go, but as you've probably guessed, offering a total of $25 return to anyone that can guess the climate of a country with such a predictable weather pattern is not a great deal. Rain kept pouring during the time of the promotion and Walkers bravely followed through with their promises at a great cost. After the contest was over, Walker Crisp had to pay nearly 700,000 pounds to cover the entire contest but to be honest, you can conclude that it ended up working well as a marketing promotion since it made people remember the name "Walkers Crisp" for years to come.
Number 8: Ballon Fest in 1986 in Cleveland
For some people, the word "balloon" would cause them to have a flashback to the time United Way decided to release 1.5 million balloons over Cleveland and screwed up miserably. The whole stunt had a neat little idea behind it, since they basically wanted to do a little fundraising and grab the town's attention for a while, so they built a giant box the size of one city block and had 2500 students do the balloon filling while they waited for the crowds to gather. Once the launch started, it was one of the most beautiful things you could see, that is, for about 2 minutes, you see, nobody actually accounted for the fact that wind exists and therein lies their downfall...literally. The 1.5 million balloons started falling into the ground causing massive damage, the clogged the streets, waterways and pretty much every nook and cranny in town. If this wasn't bad enough, the balloons were blamed for the death of 2 fishermen who were found drowned 2 days later after the balloons interrupted coast guards in their attempt to rescue them, in fact, one of the fishermen wive's sued the company for 3 million dollars but settle for an undisclosed figure.
In the aftermath, United Way ended up paying millions to the city and the cleanup crews, not to mention settling several lawsuits from not a few citizens who were damaged by the balloons.
To think that the Persians in the "300" movie used arrows to bot out the sun, what a waste, they should have just gotten United Ways to plan their attack and doomed the Spartans to a certain death.
Number 7: Jagermeister's Pool of Death
If you think the title is a bit too much, as you read on you will realize that is not far from the truth. This goes again to show that the marketers sometimes ignore the basics. So let's go a little into chemistry, some genius in the marketing team department decided that they'll make a gigantic pool party for Jagermeister's drunken fans, which I must admit, it was a great start, but then they wanted to have a lot of fog above the pool for that added effect which again, should be a plus to the sick party, however, what was not nearly nice was the liquid nitrogen they used to create the fog by pouring it into the water. Now, this is where everything goes to hell, the liquid nitrogen basically made an unbreathable fog above the whole area when it came into contact with the water and the marketing team must have been shocked big time upon realizing that humans need air to survive. This whole event was a mess and actually left one party-goer in a coma while hospitalizing 8 others. Jagermeister never actually disclosed. Now I realize that you need to see this by yourself so, here it is.
Jagermeister never actually disclosed how much they had to cough up for this mistake, but considering that they put someone in a coma, we can assume that it was a lot. Just goes to show, if you want to play smoke on the water, don't go happy on the chemicals.
Number 6: The Energizer Bunny
How can a cute little bunny screw up a company that much.? well, to answer that, go ahead and tell me the brand of the batteries in your remote. I bet you don't have a clue, and that was what the marketing team of energizer realized after it was a bit too late. While the bunny is actually a cute little mascot and it's probably known amongst the young whippersnappers of my readers, you can't really pull off that kind of marketing for something like a battery. The campaign was successful for sure, but the problem was that the actually managed to advertise their competitor in the battery field.
Duracell released a report after the Energizer Bunny first aired showing that their profits had actually doubled at that time because people thought that the bunny was advertizing Duracell, in fact, it worked so well that Duracell uses a bunny as their mascot now.
Now, as you may see, while the company didn't lose money, directly, the drastic drop in sales and all that money wasted on promoting your competitor is enough of a burn to make sure that they are more careful next time.
Number 5: The Tesco Math Problem
Tesco is praised for being a fairly cheap place to go shopping in the UK, but after this marketing failure, you might think that it's just because they really suck at math. Back in the year 2011, Tesco decided to do a special little promotion to outdo its competitor ASDA. Basically, it was the whole: "we will refund you twice the difference if our competitors item is cheaper." Tesco sadly forgot that most people go to school and know basic operations and count, and even if they didn't, they managed to learn on the way, so all its customers got savvy by only buying items that were on sale at ASDA, so they could go to Tesco, buy the same items on sale at ASDA and then after checking out they'd request double the difference by refering to ASDA website. For example, 1 shopper spends 200 pounds on Tesco in a shop that would have cost 120 pounds on ASDA (on sale products), so he or she is entitled to claim a 160 Pound voucher, therefore, Tesco is actually receiving 40 dollars for all that shopping.
You can see that doing this multiple times would save you a whole lot of money at the expense of Tesco. While this was a monetary and marketing catastrophe for Tesco, you have to give them props, they actually made a promotion that ended up being great for its customers...(dumb asses).
Number 4: Oprah and KFC
As we all know, Oprah is the omnipotent master of our destinies, so when she offers people a free KFC 2 piece meal, we all jump to get it, so why was it such a catastrophe.? Well, you can imagine that KFC was not all that pleased when people managed to print out over 10 million free food coupons from Oprah's website. During the time of the promotion, KFC gave away over 40 million dollars worth of free food and probably paid Oprah and an obscene amount of money to get her to do the promotion for them. No need to say that KFC will not be contacting her anytime soon.
Number 3: Silo...Bananas for Stereo
Now, this one didn't cost a lot of money but it was really stupid on the marketing side. So the same old formula comes to play,
savvy customers + dumb exchange = price
Silo, a chain of electronic stores decided that a dumb exchange item would be bananas and the prize would be a stereo. Imagine their surprise when after the whole thing settled, they ended up with 11,000 bananas in their warehouse and a lot of stereos given away for around 40 dollars. So the only way to go is being nice and giving away all the bananas to the local zoo. Still, it kind of makes you think how wasted you have to be to come up with an idea like that in the first place.
Number 2: Mc Donalds Olympics
Well, pairing McDonald's with something that requires you to be fit, is a bit weird, but it gets weirder fairly quickly.
During the Olympics of 1984, McDonald's had a catchy slogan "If the U.S wins, you win." They included a ticket you could scratch on every meal and you would win a Big Mac for a gold medal, french fries for silver and a coke for a bronze medal in the event that was on the ticket. The problem was that the Soviets boycotted the Olympics and the USA ended up with 83 gold medals, 61 silvers and 30 bronze.
Basically, Mc Donald's lost a huge pile of money because the Russians were too lazy to compete. It seems that Russia can screw American businesses, even without the hackers.
Number 1: Lucky Number 349 by Pepsi
Riddle me this, what happens when you over estimate the powers of numbers.? If your answer was extreme riots and lawsuits, you probably work for Pepsi. Back in 1992, Pepsi had its "Number Fever" promotion and promised to give away 1,000,000 pesos, the equivalent to 40,000 US dollars to one lucky person with the right number on its bottle cap, the problem was that they had accidentally printed the winning number, 349, on 800,000 caps, due to an oversight in the manufacturing process. Consequently, they accidentally promise to give away a total of 55 billion of today's dollars. So people calmly understood the mistake and caused no trouble...Hell no!! people got furious, thousands of Filipinos began writing on the streets, demanding that Pepsi paid their rightful prize, which now totaled in millions. People even filed 689 civil suits and more than 5200 criminal cases for fraud and deception. However, Pepsi wasn't entirely at fault. It is believed that this marketing failed was caused by DG consultors, a Mexican consulting firm that Pepsi had hired to randomly pre-selecting the winning numbers which were clearly instructed not to make the number 349 a winner but, they clearly didn't read the memo.
Obviously with such a costly mistake, Pepsi couldn't affort to pay everyone, instead settled on giving just under 2000 US dollars, so Pepsi ended u paying nearly 10 million dollars for the whole campaign, rather than the original budget of 2 millon dollars.
Till next time friends,
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