Hoover Marketing Mess Up

Páginas: 3 (567 palabras) Publicado: 8 de enero de 2013
Hoover – Promotional catastrophe

Hoover is a company that designs products for house cleaning. It was very successful in this market. Until it launched a sales promotion that did not resulted inthe way they expected. This gave horrible results for such a famous brand. The “free flights” fiasco brought the brand to its knees and resulted in millions of dollars in loses.
The promotion offeredto the customers 2 “free” flights with the purchase. This obviously got a lot of attention from the consumers, and resulted in a very high demand. So high, the employees and factories were strugglingto keep up with it. At first, the promotion was going so good, and increasing sales so much that Hoover decided to contact another travel agency to extend the offer.
Financially, the promotion didnot make much sense. The company was asking the customer to spend about 100 a pounds and offered a 600 pound reward. This should have caught the attention of the financial department, at least.

Theproblem started when people who did not want the product started to buy them just for the reward, and so the demand increased even more. People trusted the promotion because they trusted the brand.And it didn’t took long for consumers to start to complain, people didn’t receive their tickets and started calling, complaining. Added with the media stories and negative publicity, the catastrophebegan snowballing. Retailers worried about Hoover being able to keep up their word and some of them took down the publicity and stopped selling Hoover’s products. The brand was no longer identified as aappliances company but was quickly associated with the free flights fiasco.
The head of the company had to intervene, to explain that they had an unexpected result and that they were trying to keepup their word to customers. But this became more and more difficult when travel agencies were forcing the small prints, forcing specific dates and schedules to the flights. This, again resulted in...
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