Wednesday, November 27, 2013

McDonald's Failed Promotion

http://www.business-opportunities.biz/2011/08/30/mcdonalds-olympics-promotional-disaster/

http://www.youtube.com/watch?v=JBnVtUpCV28





This is an example of how promotions can go horribly wrong, even for big companies like McDonald's and even with clever advertisements for the promotion.  McDonald's agreed to give away free food to customers for every medal that the U.S. won in the 1984 Olympics.  To figure out how much they would be giving away, McDonald's looked at the 1976 Olympics.  However, the company failed to look at the 1980 Olympics, where the U.S. boycotted the Olympics since the games were held in the U.S.S.R.  Therefore, in 1984, the Eastern Bloc boycotted the Olympics since the U.S. was hosting it.  With the fiercest competition to the U.S. not showing up, the U.S. took home over twice as many medals as expected.  Therefore, it is very important to make sure you have control over the factors effecting how much you give away during a promotion.  

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