Pepsi Mistake Turns Viral

image userpic
April 17, 2009 | BY Mike Rynchek
  

Mike Rynchek
Mike Rynchek
Spyder Trap Online Marketing

Yesterday, news broke of a Pepsi promotion gone wrong which has sent social media sites, blogs and news sites into a buzz frenzy. Pepsi, a signature partner of the new Yankee stadium, formed the Pepsi/Yankee spotter program designed to reward loyal fans with Yankee tickets.

After receiving the article from Jason Sanquist @JasonSanquist via Twitter, I decided to turn the topic to local promotion guru and CEO of Promotional Marketing Insights Hal Stinchfield www.promotioninsights.com to get his thoughts on the failed promotion. Hal has over 30 years of marketing promotions experience including working with Pepsi to create and launch their Pepsi Stuff campaign.

What do you think? Was the buzz worth losing a couple loyal Pepsi drinkers or is this a promotional and public relationship nightmare? Video shot of the disappointed Pepsi crowd. Are these once loyal Pepsi fans gone for good or can their loyalty be restored?

Mike – There was clearly a strategic communications breakdown on behalf of Pepsi. Any idea what may have caused the breakdown?

Hal – When consumer promotions produce sub-optimal results, or cause a public relations nightmare (like the Pepsi/Yankees Spotter Promotion), it can usually be blamed on one of three categories: offer structure, offer communication or offer execution.

The Pepsi/Yankees offer has fallen flat in the category of offer communication. Consumers clearly thought that all ticket winners would be attending exhibition game on April 4th. The official rules, however, state that there are only 100 Exhibition Game tickets available (and randomly given out at that).

Mike – Do you believe the Pepsi/Yankees promotion was misleading?

Hal – So Pepsi may argue they were legally correct – what they failed to realize was that they were “consumerly” wrong. When a marketer thinks they have made their terms and conditions clear- and the consumer doesn’t see it that way- it is still the marketer’s error.

What Pepsi may have failed to realize is that even though their sweepstakes rules may have been legal, the Federal Trade Commission may well determine that if enough consumers believed they were misled, they (the FTC) could argue the promotion was deceptive- and that is illegal. Hey Pepsi – if you want to start doing consumer promotions right (not just legal) – give me a call.

A big thanks goes out to the following for making this post possible:
Hal Stinchfield – www.promotioninsights.com
Jason Sandquist – Twitter @JasonSandquist

Tags: , , , .
Bookmark the permalink.
  • http://www.livingtwincities.com Jason Sandquist

    thanks for the shout out Mike!

    I think that 99% has to deal with the fact they are just Yankee fans. They expect the world from anybody and everybody.

    If you’re going to promote something, make sure everyone knows the stipulations. A big fail with Pepsi/New Yorkers having a lapse in communication.

    Small things blow up fast these days.

  • http://www.twitter.com/mikerynchek Mike Rynchek

    I also think with the explosion of social media it is much easier to take a group of 5 people chanting “Pepsi sucks” and quickly spread it around the world. This is a testament to making sure you work with someone like Hal to make sure you have everything covered from all angles. Otherwise, you never know what might happen large or small.

    Thanks for the comment.

    Mike