3. Silo: electronic market.
They had the promotion “a stereo for 299 bananas”, because in this time (1986) dollars were also called bananas. They transmitted the offer around 21 cities. The problem was that cities such as Washington took it literal and bought 299 bananas for 35-50 dollars and brought them to the store. To hold goodwill they gave the stereo with bananas. At the final of this day 35 stereos were delivered and Silo lost 10,465 dollars. They retired the advertising of all places and donated all the bananas to the zoo where there just used 1000 in a week and donated the others to a food bank.
In 90’s Coca Cola was over Pepsi in Philippines and to get market Pepsi launched the promotion “number fever” It consisted that under the caps of it favorite beverage (Pepsi, 7up, mountain drew) there was 3 number digits and consumer could earn from 1000 to 1,000,000 Philippines pesos. The 1,000,000 was for the number that Pepsi announced when the campaign finished. The problem was that there were 800,000 caps with this number. Was impossible to pay to everybody and Philippines people made a disturbance where there were also dead people. Pepsi had to pay 10,000,000 dollars for legal taxes and restitution.
1. Hoover: household cleaning equipment.
Hoover was number one in cleaning market for many years, but then they had many stock because of the competence of new companies. In 1992 they created the promotion “buy over 100 pounds and get a free flight for two people” first was successful because flights were just in Europe but then they gave the same promotion but travelling to the US. The idea of Hoover was to attract 50,000 clients but finally they attracted 540,000, they didn’t have to pay all these flights. In 1998 they had to pay 50,000,000 pounds, but they didn’t have enough money, so they had to pay all the flights.