perils of promotion

Perils of promotion :

Perils of promotion

Sales Promotion :

Sales Promotion Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service Buy-One-Get-One-Free (BOGOF) Merchandising Free gift Discounted prices joint promotions Free samples Vouchers and coupons Competitions and prize draws , Cause-related and fair-trade Finance deals

GIST:

GIST When the promotions goes wrong they can embarrass a company or even create legal problem A number of high profile company known for marketing excellence have experienced problems with promotions over years Such promotion were embarrassing for the companies and resulted in the loss of goodwill as well as money

Kraft :

Kraft A printing error resulted in the printing of too many winning game pieces for a match and win game promotion They cancelled the promotion but still have to spend nearly $4 million to compensate the winner against $36000 budgeted for prize “Kraft Clause” – reserve the right to cancel a promotion if there are problems and hold a random drawing if there are more winner than the prizes

Pepsi Co.:

Pepsi Co. Due to a computer glitch the winning number appeared on more than 500000 bottle Which would have made the company pay $18 million against $36000 They cancelled the promotion and agreed to pay $19 to each of the winning cap which amounted to $10 million People held anti- pepsi rallies, death threats and attacks on pepsi trucks and bottling plants

McDonalds:

McDonalds In 1987,McDonalds ran its 1 st monopoly game promotion and began running it annually in 1991 To collect all the monopoly board game pieces to win , people came regularly into McDonalds They promoted it and kept it refining

Slide 7:

In aug 2001 the FBI arrested 8 people for embezzling the winning game pieces to divert nearly $24 million worth of prize to co-conspirators It is believed to began from 1995 FBI investigated with the help of McDonalds co-operation for 2 year before the arrest 51 people were indicted in the case One of them was Simon marketing Mc Donalds promotional agency who stole the winning tickets

Slide 8:

To win back the confidence , they ran a five day instant give away promotions in which the consumers could win the 55 cash prizes ranging from $1000 to $1 million They created an independent task force comprised of anti fraud and game security experts