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Terrible Promotions That Lost Companies Millions Of Dollars - YouTube
Channel: BE AMAZED
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if you're a small business owner you
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might get angry that the Facebook ad you
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paid $5.00 for didn't work all that well
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but imagine some chief marketing officer
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out there when he realized that short of
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making the company money his marketing
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mistake actually cost his company
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Millions
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I'm Jonathan from be amazed and here are
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the 10 worst promotions that lost
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companies millions number 10 the Apple
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YouTube giveaway you've all probably
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heard of this one the story that made
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you too into a meme for years to come
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but for those who don't know let's
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explain it a bit apologies in advance
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for YouTube fans back in 2014 some
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genius at Apple came up with the idea
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that people would love to have their new
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products come prepackaged with an album
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that no one really cared about now you
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must be thinking this is just a simple
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giveaway why is it here at all well
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aside from the annoyance it caused for
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people logging into iTunes for the first
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time there also exists a magical thing
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called royalties Apple reportedly paid
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an undisclosed fee in royalties to u2
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and also committed a whopping 100
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million in marketing campaigns for the
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band to promote their new album as
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shocking as this is they even stepped in
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to defend the promotion and the band
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which led to some undesired responses
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within various online communities
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nevertheless Apple seems to still be
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bitter from their mistake because they
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got rid of the headphone jack number 9
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Walker's weather promotion quick when I
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say British weather what comes to your
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mind first
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if you answered rain then you're
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probably smarter than the guys running
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marketing for Walkers crisps the story
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goes as follows some genius decided that
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people would have fun predicting the
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weather if they could win a prize for it
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so Walker's crisp decided to pay their
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faithful customers 10 pounds if they
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correctly guessed where the rain would
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fall on a grid map of the UK of course
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they weren't that stupid as they charged
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everyone that cost a packet of crisps 40
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pence to have a go but as you've
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probably guessed offering a 25 fold
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return to anyone who can guess the
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climate of a country with fairly
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predictable weather patterns it's a
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great deal rain kept pouring during the
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of the promotion and walkers bravely
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followed through with their promises at
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great cost after the contest was over
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Walkers crisps had to pay six hundred
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and sixty thousand pounds and 10 pound
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payments to cover the entire contest but
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to be quite honest you could argue that
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it ended up working is a marketing
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promotion since it made people remember
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the name Walkers crisps for years to
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come they even got some free promotion
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in this video number eight balloon fest
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of eighty-six for some people the word
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balloon will cause them to have a
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flashback to the time unitedway decided
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to release one and a half million
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balloons over cleveland and screwed up
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badly the whole stunt had a neat little
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idea behind it basically they just
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wanted to do a little fundraiser and
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grab the town's attention for a while
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they built a giant box the size of one
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city block and had 2,500 students do the
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balloon filling while they waited for
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the crowds to gather
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once the launch started it was one of
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the most beautiful things you could see
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for about a few minutes
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you see nobody actually accounted for
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the fact that wind exists and therein
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lies their downfall literally the
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one-and-a-half million balloons started
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falling to the ground causing massive
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damage they clogged the streets
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waterways and pretty much every nook and
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cranny of the town if this wasn't bad
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enough the balloons were blamed for the
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death of two fishermen who were found
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drowned two days later after the
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balloons interrupted Coast Guard
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attempts to rescue them in fact one of
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the fishermen's wives sued the company
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for 3 million but settled for an
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undisclosed amount in the aftermath
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United Way ended up paying millions to
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the city in the cleanup crews not to
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mention settling lawsuits from various
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citizens who were damaged by the
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balloons to think that the Persians in
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the 300 movie used arrows to blot out
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the Sun what a waste
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they should have just gotten United Way
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to plan their attack number 7
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Jagermeister x' pool of death okay I
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admit it the title is a bit too much but
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it's not that far from the truth this
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again goes to show that marketers
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sometimes don't know the basics in this
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edition we go over chemistry some genius
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in the marketing department decided that
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they'll make a giant pool party for all
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of you a ger Meister's drunken fans
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which is a good start honestly
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but then they wanted to have a lot of
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fog above the pool for that added effect
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which again this quite nice however what
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was not really nice was the liquid
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nitrogen they used to create the fog by
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pouring it into the water now this is
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the bad part the liquid nitrogen
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basically made an unbreathable fog above
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the whole area when it came into contact
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with the water and the marketing team
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must have been shocked upon realizing
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that humans need air to survive this
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whole event was a mess and actually left
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one party goer in a coma while
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hospitalizing ate others Jagermeister
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never actually disclosed how much they
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had to cough up for this mistake but
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considering they put some poor guy in a
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coma we can assume that it was a lot
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just goes to show if you want to play
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smoke on the water don't go overboard
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with the chemicals number 6 the
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Energizer Bunny now how could a cute
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little bunny screw up a company that
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much well do me a favor and tell me the
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brand of batteries you have in your
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remote don't have a clue that's what I
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thought and that's what the marketing
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team and energizer realized after it was
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a bit too late well the bunny is
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actually a cute little mascot and is
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probably known amongst you young
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whippersnappers here you can't really
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pull off that kind of marketing for
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something like a battery the campaign
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was successful for sure but the problem
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is that they actually managed to
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advertise their competitor in the
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battery field Duracell released a report
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after the Energizer Bunny first aired
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showing that their profits had actually
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doubled at that time because people
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thought that the bunny was advertising
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Duracell in fact it worked so well that
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Duracell uses a bunny as their mascot
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now which you may have seen while the
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company didn't lose money directly the
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drastic drop in sales and the money
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wasted on promoting your competitor is
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enough of a burn to make sure that
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they're more careful next time
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number five Tesco and math Tesco is
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praised for being a fairly cheap place
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to shop in the UK but after this
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marketing fail you might think that it's
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because they're just really bad at math
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back in 2011
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Tesco decided to do a special little
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promotion to outdo their competitor Asda
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basically it was the whole we will
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refund you twice the difference if our
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competitors
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item is cheaper Tesco sadly forgot that
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people can count and customers got savvy
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by only buying items that were on sale
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at Asda so they would go to Tesco's buy
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the same items on sale at Asda and then
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after checking out they'd request double
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the difference by referring to as this
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website for example one shopper spent a
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hundred and twenty six pounds of Tesco
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on a shop that would have cost eighty
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one at Asda and claimed a 90 pound
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voucher therefore they essentially paid
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thirty-six pounds for all that shopping
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you can see that doing this multiple
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times would save you a whole lot of
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money at the expense of Tesco while this
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was a monetary and marketing catastrophe
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for Tesco you have to give them props
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they actually made a promotion that
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ended up being great for their customers
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number four Oprah and KFC we all know
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that Oprah is the omnipotent master of
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our destinies so when she offered people
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a free KFC to piece meal we all jumped
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so why was it such a catastrophe well
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you can imagine that KFC was not all
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that policed when people managed to
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print out over ten million free food
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coupons from Oprah's website during the
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time of the promotion KFC gave away over
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40 million worth of free food and
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probably paid Oprah a ridiculous amount
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to do the promotion for them
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needless to say KFC will not be
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contacting her anytime soon number three
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bananas for stereo now before I start
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this one didn't cost a lot of money but
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it was really stupid on the marketing
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side it was the same old formula savvy
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customer Plus dumb exchange equals prize
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silo a chain of electronic stores
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decided that the dumb exchange item
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would be bananas and the prize would be
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a stereo imagine their surprise when
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after the whole thing settled they ended
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up with 11,000 bananas in their
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warehouse and a lot of stereos given
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away for around $40 these guys ended up
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being nice and donated all the bananas
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to the local zoo but it kind of makes
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you think how stone they had to be to
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come up with the idea in the first place
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number two McDonald's Olympics I do
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admit that pairing McDonald's and
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something there requires you to be
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physically fit is a bit weird but it
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gets weirder fairly quickly during the
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Summer Olympics of 84 McDonald
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had a catchy slogan if the u.s. wins you
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win they included a ticket you could
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scratch on every meal and customers
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would win a Big Mac for gold french
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fries for silver and a coca-cola for a
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bronze medal in the event that was on
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the ticket trouble is since the Soviets
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boycotted the Olympics the u.s. ended up
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with 83 gold medals 61 silvers and 30
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bronze basically McDonald's lost a huge
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sum of money because the Russians were
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too lazy to compete it seems that Russia
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can screw American businesses even
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without the hackers number one number
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fever riddle me this what happens when
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you overestimate the power of numbers if
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your answer was extreme riots and
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lawsuits you probably worked for Pepsi
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in 1992 Pepsi had their number fever
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promotion and promised to give away 1
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million pesos the equivalent to 40,000
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US dollars to one lucky person with the
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right number on their bottle cap
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trouble is they had accidentally printed
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the winning number 349 on 800 thousand
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caps due to an oversight in the
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manufacturing process consequently they
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accidentally promised to give away a
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total of 55 billion in today's dollars
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and so people just calmly understood the
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mistaken cause no trouble no I'm kidding
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thousands of Filipinos began writing on
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the streets demanding that Pepsi pay
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them their rightful prize which now
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totaled in the millions people even
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filed 689 civil suits and more than
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5,200 criminal cases for fraud and
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deception
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however Pepsi wasn't entirely at fault
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it is believed this marketing fail was
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caused by DG consult or a Mexican
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consulting firm that Pepsi had hired to
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randomly pre-selecting numbers they were
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clearly instructed not to make the
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number 349 a winner but they clearly
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didn't get the memo
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obviously with such a costly mistake
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Pepsi couldn't afford to pay everyone
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what they promised and instead settled
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on giving just under two thousand
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dollars to each winner instead of the
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promised 40,000 regardless Pepsi ended
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up paying closer to 10 million dollars
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for the whole campaign
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than their original budget of two
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million dollars looking at the whole
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list now a lot of these things wouldn't
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have happened if some people just did
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their job properly such a shame
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which mistake did you think was the
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worst or do you know of any others that
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rivaled them in terms of stupidity let
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me know in the comments down below and
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thanks for watching
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