Marketing Strategies That Failed Spectacularly - Part 1

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- [Narrator] Behind every marketing campaign is a team of executives, fact-checkers, art directors and more. You think this would result in well-planned, well-executed strategies every single time. But of course, marketing teams are only human and humans can be really, really dumb. As these examples prove, sometimes even the biggest dogs in the game can have a swing and a great big, costly miss. (pleasant music) Number 10, Snapple's sticky situation. In June 2005, Snapple decided the best way to gain attention for its new popsicle product, Kiwi Strawberry on Ice, was to go big. Snapple took on the previous Guinness Book of World Records holder for largest popsicle, constructing a 17.5 ton popsicle. The tasty monolith was constructed in New Jersey and hauled to New York on a freezer truck, kept at negative 15 degrees Fahrenheit. On arrival, the Popsicle was dangled over East 17th Street, Manhattan, by a crane. Somewhere in the process, however, the popsicle's core had melted. This meant that when the crane lifted it into the air, the mushy, sticky innards flooded the streets. Passers-by were reportedly slipping in the puddles and the mixture was growing increasingly sticky in the summer sun. Authorities were called in for the cleanup, which snaffled later paid for. Leaving the whole ordeal as nothing short of a total disaster. Snap will never figured out why the popsicle didn't keep it solid form. But it was likely a combination of incomplete initial freezing, the hot sun and a marketing team with more money than brains. Number 9, out with the Oldsmobile. In 1988, an American car brand produced by General Motors, decided to take the Olds out of its Oldsmobile namesake and prove that they were cool now. While brand rejuvenation is often a wise move, it all hinges on smart approaches to new markets. Unfortunately, adapting the campaign slogan; it's not your father's Oldsmobile, wasn't the wisest choice. The accompanying adverts featured a typical 80's synthesizer heavy jingle, as well as artsy shots of the youth. Attempting desperately and clumsily to appeal to the new generation. It failed miserably, as the car itself had barely changed at all. Meaning the kids weren't interested. Meanwhile, the loyal customers who had enjoyed the Oldsmobile in the past were alienated, fearing that the car they'd loved had now been changed in some way. In the following decade or so, Oldsmobile became obsolete. Great job Oldsmobile! It's not often you alienate both potential markets in one fell swoop. Number 8, frequent flyers. In the 1980's, airlines were hit hard by new regulations, stiff competition and the changing face of the airline business. In an attempt to gain attention and thus, profit, American Airlines announced the unlimited A Airpass. Which for the mere sum of $250,000, would entitle the bearer to free flights for the rest of their life. 28 people took advantage of this deal before American realized that rising operation costs and over enthusiastic usage of the passes meant that the one-off fee of $250,000 wasn't profitable. As a matter of fact, it soon started losing them money. Two individuals contributed to this loss more than anyone else, Jacques Vroom and Steve Rothstein. The two held passes until July 2008, when American calculated that their flights totalling millions of miles each year, were costing the company a million dollars each annually. Rothstein was even noted to have taken regular trips across the Atlantic, simply for a bite to eat with friends. Soon American airlines began stripping customers of their unlimited passes in airports, very publicly, resulting in costly legal proceedings as well as a permanently tarnished reputation. Today's A Airpass allows on-demand travel for a discounted rate, but endless free trips to Chicago just for a slice of pizza are unfortunately, off the cards. Hoover Vacuum's British arm made a similar mistake in 1992, when they launched a promotion offering two free return flights to Europe with a purchase of more than 100 Pounds. Profit was expected to come from the various small-print loopholes and profitable extras travel agents were encouraged to push. When the first promotion would well, Hoover began offering flights to New York or Florida in the same scheme. This man for the purchase of a rather inexpensive Hoover, customers could obtain flights worth over 600 Pounds. The promotion became much more popular than anticipated and Hoover were only able to deliver on a fraction of the tickets. After covering up 50 million Pounds for the free flights, while only generating 30 million in sales, Hoover bled out another 7 million to quell the PR damages. Just like their famous products, Hoover's marketing team really sucked. Number 7, spot the difference. Ikea has franchises around the world, but some countries' approaches to the flat-pack mega-stores are notably different. Ikea Saudi Arabia was caught out in October 2012 for publishing catalogs, which were identical to all others, except the women were completely removed. In general, advertising featuring women is rare in Saudi Arabia due to cultural standards. And Starbucks even replaced their mermaid logo with a crown in order to thrive there. But whether politically correct or not, Ikea a company formed in Sweden, one of the most progressive countries in the world, was accused of putting business interests before women's rights. Or maybe women really just don't exist in Saudi Arabia. Surely a catalog wouldn't lie, would it? Number 6, weapons of mass distribution. In much of America, as well as all of Canada, brass knuckles are illegal. Instead, people are generally encouraged to punch each other the old-fashioned way. Electronic Arts must have missed that memo in 2009, when a shipment of press packs for their Godfather II video game came under fire for its questionable content. That content of course, featured shiny sets of brass knuckles. When they realized they'd actually committed a crime by sending these out, EA quickly recalled the knuckles but now before causing a very public mess and some very outraged mothers. As if soccer moms needed any more reasons to believe video games cause violence. Luckily for EA the blunder didn't pack a punch in the form of any lawsuits. But EA had become the godfather gaming PR disasters. Number 5, smooth with an explosive flavor. Scavenger hunts are good, wholesome fun, right? Well it turns out that when your clues are kept in abandoned briefcases in public places, the authorities tend to take the hunt quite seriously. In 2014, Coors Light Canada sponsored a scavenger hunt across Toronto called Search and Rescue. This fun-in-the-sun theme publicity stunt involved hiding 880 prize-filled briefcases across the city. With clues and maps posted on Twitter each day, the hunt went smoothly. That is until the prize briefcase left at an intersection, caught the attention of the bomb squad. Due to its suspicious nature, the briefcase launched an investigation halting the evening commute for hundreds of angry people. Coors Light Canada issued a public apology, but many inconvenienced Canadians publicly renounced the brand. Determining to seek light refreshment elsewhere in the future. Number 4, mild refreshment, poor taste. In 1971, Coke rode the free-love political waves by teaching the world to sing in perfect harmony. ♪ I like to teach the world to sing ♪ ♪ Sing with me ♪ - [Narrator] Voice came together, drank Coke and called for a unified earth. In 2017, Pepsi tried to rehash this principle. Marching 21 year old model, Kendall Jenner, through the crowds of protesters to symbolically solve all the modern world societal issues by offering police officers a Pepsi. Voices arose in anger, immediately after the ad aired. Coming in the wake of Black Lives Matter, the #MeToo Movement and calamitous social unrest, nearly everyone was offended that Pepsi alongside a pretty rich Valley girl, famous for (chirping crickets) could hijack serious social issues in such a tone-deaf way. Across the world, angry people were left wondering if Pepsi could really be that oblivious or if they were making people angry on purpose. Ears and inboxes full of outrage, Pepsi pulled the ad and publicly apologized. Meanwhile, the social movements the ad referenced continued, somehow not resolved by Pepsi sales. Number 3, always too soon. In 2016, Texas company Miracle Mattress learned the hard way that deeply offensive humor is best left to the comics. Attempting to cash in on a national tragedy, the store owners released an advert featuring towers of twin mattresses stacked in the background. The advert asks, what better way to remember 9/11 than with a twin tower sale? This bold opener is followed by two employees diving into the towers while saying, never forget. Instead of boosting sales, these antics put the company out of business almost immediately despite various public apologies. They really should have slept on this dumb idea before jumping into bed with it. Number 2, Pepsi's points panic. In 1996, Pepsi came up with a not terribly original but easy to follow loyalty scheme. Customers could earn points by buying Pepsi products. Different products had codes worth different point values. After amassing the points, they could be redeemed for prizes like T-shirts, sunglasses and other random items bearing the Pepsi logo. One commercial for Pepsi stuff, which aired during the super bowl in 1996, announced at 7 million points could be cashed in for a full blown Harrier jet, complete with custom Pepsi stylings. Pepsi rather than carelessly assumed that no one would actually want a Harrier jet, nor bother to collect that many points. But as you probably guessed, a 21 year old business student called John Leonard decided to take Pepsi up on their offer. Since bottles generally earned a single point, he could have just bought 7 million and used those. But that would have cost at least a couple million dollars and drinking all that Pepsi would be sure to turn you diabetic. He discovered that Pepsi points could be purchased for 10 cents each and found this method to be a comparatively cheap way of acquiring a fighter jet. Presumably, Leonard had plans to sell the jet as it's worth a few million dollars. Though all out war with Coca-Cola may have been the end game. Leonard lined up a handful of investors and sent 15 Pepsi point labels alongside a cheque for 700,000 dollars for the Harrier jet to Pepsi HQ. Pepsi refused the offer and execs were baffled that they needed to explain the ad was a joke. Things escalated to a lawsuit, but fell in Pepsi's favor with the court ruling that no objective person could reasonably have concluded that the commercial actually offered consumers a Harrier jet. However, as a protective measure, Pepsi changed the commercials so that the jet required 700 million points. Before the biggest blunder is revealed, there are a couple of face-palm worthy tales that deserve an honorable mention. Firstly, an outstanding case of; what were they thinking? I'm talking of course, about Facebook founder, Mark Zuckerberg's, virtual reality tour of Puerto Rico following devastating hurricanes in 2017. The gimmick was intended as a way to announce Facebook's 1.5 million relief effort and work with The Red Cross. But Zuck isn't exactly known for being a PR guru. During the live stream, Mark's smiling, laughing virtual icon wandered off to play with his dog and could be witnessed high fiving his cohost. All while real people in the background struggled to survive the flooding and devastation. It seems Mark's grip on reality is purely virtual these days. There's also this ad found in a Berlin subway station. It grew popular and controversial on the internet through its Photoshopped English translation. This funeral home ad, allegedly the work of avant garde German and team Jung von Matt, jokingly suggest readers help about the business by stepping onto the subway tracks. Despite its controversial nature, the Bergemann and Sohn funeral home received positive feedback from this ad which is why it's only an honorable mention. Still, this one could easily have been a train wreck. Number 1, the cost of gluttony. A sure fire way to fail spectacularly is to underestimate hungry Americans. In 2003, Red Lobster made that very mistake. Then president of the chain, Edna Morris, assumed running and all-you-can-eat promotion would be a terrific way to bring new life to the Red Lobster brand. However, of all the inexpensive sea critters, she chose snow-crab legs as the promotion's center point. Unfortunately in 2003, snow-crabs were in short and expensive supply due to over-harvesting in previous years. But whether unaware of the high price of the usually cheap crab or spurred on by some kind of deep rooted hatred of crustaceans, Edna stood firm on snow-crab. Edna had enjoyed success with all-you-can-eat promotions in the Steakhouse chain and assumed the formula could be transferred from turf to surf. For a mere 22,99, customers could gorge themselves with crabby goodness. Unfortunately, Edna failed to realize that steak was hugely more filling than crab. The average customer ate two dozen legs per sitting, with many returning for a fourth helping. Way more than the anticipated amount per customer. Not only that, but cracking crab legs to eat is time-consuming. Meaning customers were hogging tables for hours. Hourly customer capacity suffered badly and news of the fiasco resulted in a 12% drop in share prices for Red Lobster's parent company, Darden, as well as skyrocketing already high snow-crab prices. All in all the promotion was a total, costly disaster. Edna, the scourge of snow-crabs everywhere, was thrown into the deep blue sea of unemployment while Red Lobster nearly avoided sleeping with the fishes. So is your forehead sore from face-palming at some of these business blenders? Have you encountered even worse marketing mishaps? Let me know in the comments section down below. Thanks for watching! (pleasant music)
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Channel: BE AMAZED
Views: 1,748,974
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Keywords: beamazed, be amazed, top 10, digital marketing, social media, marketing, marketings fails, worst marketing, worst business, business fails, worst fails, marketing major, marketing management, marketing strategies for small business, marketing strategies, marketing plan, social media marketing fails, worst business decisions, worst business on shark tank, worst business fails, biggest business fails, worst marketing fails, worst marketing presentation
Id: yZ0YoRvfT_A
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Length: 14min 41sec (881 seconds)
Published: Sun Sep 08 2019
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