Pepsi launches a campaign in the Philippines
We have heard too many brands, who make big mistakes with their marketing campaigns. Today we are going to talk about one such marketing strategy of Pepsi, due to which the company came on the verge of closure and the whole country revolted against this brand or it is one of the biggest marketing failures in history. Every businessman should know this.
This is such a story in which Pepsi’s billions of dollars were gambled. And the whole country started boycotting Pepsi. Because Pepsi and Coca-Cola were rivals for years
Joha both the brands definitely apply some way or the other to move ahead of each other.But in this race, Coca-Cola keeps going ahead of Pepsi, due to which Pepsi Coena is very busy with some big campaigns so that it too can increase its market share.
Where Coca-Cola’s market share was about 75 percent and Pepsi’s market share was only 17 percent, and that is why, in order to overtake Coca-Cola in the Philippines market, Pepsi started a impressive marketing strategy, Number Fever, which we can know like a lottery.
There used to be a three-digit number behind the cover of every cold drink, whoever found out that number was going to give Pepsi between 100 million pesos and 149 million pesos, but only a few people were going to get 100 million pesos and Now this cold drink bottle was going to decide who would get 100 pesos and who would get 1 million pesos.
Pepsi hired DG CONSULTANTS to select winners
Pepsi hired DG CONSULTANTS, a Mexican company, to decide the winner. And the numbers were automatically generated by computers that sent the Sam to Pepsi’s bottling plant. There they were printed on caps. And every night the name of the winner was announced on the local T.V channel in the Philippines. After which any winner could go and claim the money through his number.
Pepsi had kept a budget of about $ 2 million for this campaign, which means that within this amount, the campaign money was going to be given. This Number Fever campaign was not a new campaign, even before this, Pepsi had launched these marketing campaigns in countries like Argentina, Mexico and Chile.
After which their market share had increased very fast. And Pepsi had the same hope that our market share would jump from 17% to more in the Philippines, the Philippines was a low income economy at that time where most of the people were poor and the grand price of 1 million pesos was a life changer for them.
was greater than the amount. This amount was 611 times more than the average salary of the Philippines. You can really imagine how much poverty must be happening on the river. And in this campaign only 1 out of every 2.5 crore people were going to get 1 million paise.
But still the whole Philippines started participating very well in it. Bottles of cold drinks were being bought in every house. Out of which Bo could also win 1 million paise. More than 30 million people all over the Philippines started buying these Pepsi bottles.
Since then Pepsi has seen a 40% sales increase and an almost 20% increase in market share. Coca-Cola’s sales were falling continuously and Pepsi’s campaign was about to become the most successful campaign in the world, this campaign was very successful in the entire Philippines and about 17 people won 1 million pesos and some 1000 people won small Smaller prizes were also won.
Pepsi’s bad times started on May 25
But on May 25 something happens in which the Philippines changed the fate of Pepsi. Like everyday, on that day also the name of the winner is announced by the news channel in the Philippines. And the number of people who won 1 million pesos that day was 349, but when this number flashed on T.V, thousands of people in the Philippines could not believe their luck. According to the budget, only 2 people won 1 million pesos that day. But that day 8 million people won 1 million pesos.
Actually here, due to a mistake in the computer, the number 349 was printed on 8 lakh bottles from which 1 million were to be received and this number had already been stolen from that number of people. There was some mistake in Pepsi’s computer code, due to which such printing happened, but only 2 people had that authentication secret code and it did not go to the rest of the people, but what the public wanted, they have 349 number.
So he needs 1 million pesos no matter what. There was a demand for 1 million pesos all over the Philippines and there was one winner out of every family in the Philippines. Pepsi held a big meeting at 3 a.m. on this issue, after which they decided that it was impossible to give this money.
Total amount was coming $32 billion if we try to understand it in Philippines then the total GDP of Philippines was $52 billion and $32 billion they had to pay people 1000 civil and criminal cases against Pepsi in whole Philippines After this, there were many people who knew that Pepsi would give money later, so they started buying those numbers by giving $ 10 from other people, that if Pepsi gives money later, then they will get 1 million pesos. .
Pepsi declared on the market that this is a computer mistake and we will give 500 pesos to each cap winner on the basis of composition and where Pepsi’s budget was $2 billion, it has increased to about $10 million now, but the story does not end there.
Some people accepted Pepsi’s offer
Some people had accepted this offer and most of the people of Philippines started revolting against Pepsi, people used to burn Pepsi tankers everywhere, people started targeting all the Pepsi trucks that used to come. Either people used to burn it, or they used to overturn it, people used to say that Pepsi has betrayed us, it is such a big brand and they should accept their mistake. And everyone should be given this money.
This issue increased so much all over the Philippines that people started protesting on the streets and started attacking Pepsi’s offices with hand made grenades. On this accident, 1 school teacher, 1 child lost his life and more than 6 people were also injured in this campaign, the issue increased so much that the people of Philippines started attacking Pepsi employees and 3 employees lost their lives Gone.
After this, Pepsi started giving security to its employees and Surrey started giving weapons to Delhivery Boy so that you can fire in your own safety. Soon Pepsi big officers left the country and after that 1000 cases were filed against Pepsi.
But it happens in most of the campaigns that in some time people forget those things and the same has happened with Pepsi now that people have started forgetting this trick, and slowly people started closing the court cases and The sentiment that was going on against Pepsi has now slowly become the work of the people, after that in JAN 1993, PEPSI paid a fine of about 2.5 lakh pesos to the Department of Trade Industries of the Government of Philippines.
And after this, in 1994, Pepsi’s market share came down to about 21%. When he started the campaign, his market share was about 17%, which jumped 4% and after that, in the year 2006, the Philippines court also told his wardisk in this, he told that this is a computer generated mistake, in which Pepsi has no fault.
and no case is made against them.So friends, this was the marketing campaign because of which Pepsi did not have to bear its consequences in a very bad way and they spent a lot of money and some people’s lives were at risk and some people even got killed.
what did you learn today
so you should not make such mistakes in your business.Many good marketing campaigns come, but it should also be in your mind that what negative points can be there in that marketing, which should be kept in mind. What Pepsi didn’t keep in mind, they didn’t cross checking it, so you must keep this thing in your business. So today’s post, what kind of people do you like and share this post to those who want to do business or are doing it, so that they too do not make such a mistake in their business.