5 ms·
The Mental Floss writeup from 2018 has actual details: https://www.mentalfloss.com/article/558202/pepsi-number-fever-promotion-failure-philippines https://www.
by danso 6y ago
The Mental Floss writeup from 2018 has actual details:
https://www.mentalfloss.com/article/558202/pepsi-number-fever-promotion-failure-philippines https://www.mentalfloss.com/article/558202/pepsi-number-feve...
> To determine winning numbers, Pepsi recruited D.G. Consultores, a marketing firm based in Mexico. The numbers were generated via computer, then secured in a safe deposit box in Manila. From there, the list would be used to “seed” bottle caps in the bottling plants. Each night, the company would announce the day’s winning number on television.
> Quickly, Pepsi executives in the Philippines and stateside convened for an emergency meeting at 3 a.m. on how to proceed. Economically, honoring the perceived value of all of the caps was virtually impossible to justify—it would’ve cost the company tens of billions of dollars. Instead, they opted to declare it a computer error and offered $18 to $20 to cap holders as a “goodwill gesture.” What was originally earmarked to be a promotion with $2 million in total prizes ballooned to $10 million.
- azinman2 6y ago10M is nothing to Pepsi with a market cap of 178B. If they're going to put something out as a token, they could have easily 10-20x'd that and had a much more meaningful payout.
- tedunangst 6y agoPepsi didn't have a market cap of 178B in 1992. As if market cap is even relevant.
- Arcuru 6y agoYour point still stands, but their market cap in May of 1992 when this happened was around 18B.
- smabie 6y agoWhy should Pepsi have spent 100 to 200mm giving people money? Like, that's clearly the wrong decision. People still would have been angry and not bought Pepsi.
- minusSeven 6y agoWell some would argue that it is Pepsi who were giving lottery so any mistake on their part should be on them. Like if you mistakenly deposit 1 million dollar into my account I don't owe you shit and I shouldn't be asked to repay it back legally. Here off course it depends on the laws of that country. For instance Philippines could certainly have said its your mistake so you owe people money instead. They would have then taken higher steps than that if the company failed to pay back like canceling passports of foreign employees and extradition of executives. Off course this is all hypothetical but there should be laws that hold companies responsible for their own mistakes.
- jimmygraham 6y agoWait, are you saying that you shouldn't have to pay back money accidentally delivered to you? Or is that an argument that a hypothetical person would make?
- smabie 6y agoYou think executives should have been extradited from the US to the Philippines to face trial because of this? You think the Philippines should have stolen the employees passports and thrown them in jail and hold them hostage? And, actually, if someone accidentally deposits 1m into your bank account, you do owe them shit. Specifically, you owe them 1m. What you're saying is just so ridiculous I'm having a hard time taking you seriously.
- minusSeven 6y agoWell I said it hypothetically. It all depends on the laws of the country. If Philippines held Pepsi responsible and ordered them to pay the entire amount, it would be a different situation. If you are ordered to pay money by the government and can't pay it may considered fraud. So the government can take bigger actions. I guess bankruptcy may follow where the government can end up seizing all assets the company has. If all those steps are insufficient then even bigger steps may follow. As I said it all depends on the laws of that country. Not all countries have similar laws.