(1/n) A story about a simple contest by Pepsi which turned into a bloody fiasco. In 1992,a promotion offer by Pepsi promised Filipinos a chance to win $20000 (1 million pesos),But an error at a bottling plant led to 600,000 winners-and to lawsuits, rioting, & even deaths! Read On
Across the Philippines’ ads promised people “You could be a millionaire.” A million pesos was the biggest prize available. Pepsi was desperate to increase its share in the cola market which was largely dominated by Cocacola.
The campaign which was called 'Number Fever' had the bottle crowns (caps) with a particular unique number which would then be announced on a live TV show as to which lucky number is going to win the top prize!
Such was the hysteria amongst the Filipinos that there were incidents been reported like two Pepsi salespeople were murdered following a dispute over a crown considered to be the lucky one, Cops jailed a maid accused of stealing her employer’s crown.
The hysteria was working absolutely as per the plan until the night of May 25 when the winning number was announced by Pepsi. The dreadful number which Pepsi will never forget was No 349
The dream turned into a nightmare when several people started reporting to the Pepsi factory gates to claim their one million pesos. In many cases, people were carrying dozens of 349 crowns! One lady had over 35 crowns carrying the same number - 349 which was the lucky number
It was perhaps the deadliest marketing disaster in history—and remains one of the business world’s great cautionary tales. Within a year, a violent consumer uprising would be underway, with riots and grenade attacks leaving dozens injured and five dead.
Pepsi decided it would pay 349 holders who came forward over the following two weeks a “goodwill gesture” of 500 pesos. Executives calculated that if half the 600,000 crowns that had been minted with the number 349 were cashed in, the damage would be contained at $6 million.
A parallel rebel movement started gaining momentum amongst the winners of the 349 crowns who called themselves 'Coalition 349' to fight the cola giant. Cocacola's local CEO offered 'start-up' money to the agitating group to help them with legal costs.
In the hinterlands, farmers who had 349 crowns with them were selling their cattle to afford the journey to Manila And the chaos continued. Protesters in one Philipines city burned tires. Speculators offered wads of cash for 349 crowns in hopes of a bigger payoff later.
Petrol bombs were thrown into Pepsi factories and dozens of delivery trucks, their drivers dousing the flames with 7 Up. Executives began traveling with bodyguards, and the company moved American employees out of the country
Its been over 30 years, but this promotional campaign is a reminder to all marketers that while the 'Big Breakthrough Idea' is an important first step, one cannot miss the nuts and bolts of any campaign.
As it is famously said, the devil lies in the detail. I have immense respect for Pepsi as an organization, a world-class marketing organization who has taught marketing to millions of enthusiastic and aspiring marketers like me
The irony is even in this fiasco, the company teaches us with a vital message - Poor strategy brilliantly executed triumphs over brilliant strategy poorly executed.
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