The worst sales promotion in history: Hoover's free flight fiasco


9 bookmarks. First posted by JohnDrake 9 days ago.


In late 1992, the UK branch of the vacuum manufacturer, Hoover, offered an impossibly sweet promotion: If a customer bought any product worth £100, he’d get two…
from instapaper
3 days ago by peterwhelan
In late 1992, the UK branch of the vacuum manufacturer, Hoover, offered an impossibly sweet promotion: If a customer bought any product worth £100, he’d get two…
from instapaper
7 days ago by dorianj
When Hoover ran this plan by risk management professionals, the company was warned that it would be an absolute disaster.

“To me it made no logical sense,” recalled Mark Kimber, one of the consultants. “Having looked at the details of the promotion [and] attempting to calculate how it would actually work I declined to even offer risk management coverage,” recalled Mark Kimber.
risk 
7 days ago by craniac
via Pocket - The worst sales promotion in history - Added August 12, 2019 at 08:09AM
IFTTT  Pocket 
8 days ago by williger
Don't offer a prize or rebate worth several times the gross sales price of your produce because people will utilize your offer and it will cost.
history  marketing  via:HackerNews 
8 days ago by mcherm
In late 1992, the UK branch of the vacuum manufacturer, Hoover, offered an impossibly sweet promotion: If a customer bought any product worth £100, he’d get two free round-trip flights to the United States. For the 84-year-old electronics brand, it was meant to be an eye-catching way to boost dwindling sales, escape the gloom of a recession, and shrug off increased competition. Instead, it led to the destruction of the company — a precipitous downfall that saw multimillion-dollar losses and customer revolts.
marketing 
9 days ago by terry
n 1995, Hoover Europe was so shattered from the ordeal that it was sold off to an Italian competitor, Candy, for $106m, at a loss of $81m.
The company’s market share, once over 50%, dwindled to less than 10%, and the public rated the company’s products “least reliable” in at least 6 consumer reports. The British Royal Family even withdrew the company’s Royal Warrant, a mark of recognition for trusted companies.
Worse yet, a “glut of unwanted, unused second-hand Hoovers” — purchased by people just for the free flights — flooded the market, making it impossible for the company to offload new inventory.
“Mentioning the name ‘Hoover’ [at a marketing conference] is rather like shouting ‘Hindenburg’ at a 1938 convention of airship designers,” a Guardian reporter wrote in the aftermath of the corporate blunder.
brand_hoover  marketing  promotion  marketing-gone-bad 
9 days ago by JohnDrake