Flunking the Pepsi Challenge
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The following is reprinted from Uncle John’s Ahh-Inspiring Bathroom Reader Lots of companies have ad campaigns that flop, but Pepsi seems to have more than its share. Here are a few classic bombs. Keep On Truckin’
There was just one problem: contest organizers accidentally printed 55 winning tickets instead of five. Rather than risk alienating the winners – not to mention millions of Pepsi drinkers – Pepsi sent all 55 winners to Daytona, gave away five trucks instead of one, and spent $20,625 on free gas instead of $1,825. Estimated cost of error: about $400,000. Over-Stuffed
In April 1996, Pepsi canceled its "Pepsi Stuff" merchandise giveaway campaign months ahead of schedule. Reason: Too many winners. The company underestimated how many people would redeem the points by 50%, forcing it to spend $60 million more than expected on free merchandise. "We’re outpacing our goals on awareness," a company spokesperson explained. Jet Lag
When Pepsi refused, claiming the offer was made "in jest," Leonard filed suit in federal court. Three years later, a judge ruled that "no objective person could reasonably have concluded that the commercial actually offered consumers a Harrier jet." Pepsi lucked out … case dismissed. The King of (Soda) Pop
Even Pepsi’s biggest successes can become colossal flops. In 1983 they signed the largest individual sponsorship deal in history with pop singer Michael Jackson. It was a multi-year deal and Pepsi made millions from it … only to find itself linked to one of the most lurid scandals of the 1990s when Jackson abruptly cancelled his Pepsi-sponsored "Dangerous" tour in 1993. Jackson’s reasons for quitting: (1) stress generated by allegations that he had sexually molested a young boy, and (2) addiction to painkillers he took "to control pain from burns suffered while filming a Pepsi ad." The Name Game
Vlk, a diabetic who does not drink Pepsi, collected the letters by taking out classified ads offering to split the winnings with anyone who sent him a matching set. "I don’t even remember making one whole set myself," he says. "I didn’t buy any Pepsi." (The company got even by mailing him his winnings in $15 increments, one check for each winning set.) They Can See Clearly Now
Marketing experts point to two critical flaws that they say doomed Crystal Pepsi from the start: (1) customers balked at paying extra for a product that, because it was clear, was perceived to have fewer ingredients than regular Pepsi, and (2) after more than a century of conditioning, consumers want colas to be dark brown in color. "Clear sodas are about as appetizing as brown water," an industry analyst explains. |
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The article above is reprinted with permission from Uncle John’s Ahh-Inspiring Bathroom Reader. Where else but in a Bathroom Reader could you learn how the banana peel changed history, how to predict the future by rolling the dice, how the Jivaro tribes shrunk heads, and the science behind love at first sight? Get ready to be thoroughly entertained while occupied on the throne. Uncle John rules the world of information and humor. It’s simply Ahh-Inspiring! Since 1988, the Bathroom Reader Institute had published a series of popular books containing irresistible bits of trivia and obscure yet fascinating facts. If you like Neatorama, you’ll love the Bathroom Reader Institute’s books – go ahead and check ‘em out!
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For its "Pepsi 400" contest in the summer of 2001, Pepsi offered to send the holders of five winning tickets on an all-expenses-paid trip to Florida’s Daytona 400 auto race. One of the five would get to drive home in the grand prize, a brand-new Dodge truck; the other four would each get $375 worth of free gas.
Another disaster from the "Pepsi Stuff" campaign: 21-year-old John Leonard tried to redeem seven million award points for the Harrier fighter jet he saw offered in a Pepsi Stuff TV ad. The rules stipulated that contestants could buy points for 10¢ apiece, so that’s what he did. Leonard (who studied flawed promotions in business school) raised $700,000 to buy the required points and then sent the money to Pepsi, along with a letter demanding they hand over the $50 million jet.
In 1983 another Pepsi contest ran into budget trouble when the company offered $5 per letter to any customer who could spell their own last name using letters printed on Pepsi bottle caps and flip tops. Pepsi hoped to control the number of cash prizes by releasing only a limited number of vowels … but it failed to take into account people like Richard "no vowels" Vlk, who turned in 1,393 three-letter sets and pocketed $20,894 for his effort.
In 1992 Pepsi introduced Crystal Pepsi, an attempt to cash in on the booming popularity of see-through soft drinks like Clearly Canadian. Sales were less than half of what Pepsi projected, even after the company reformulated the product.
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