Pepsi Killed 5 Members in Philippines

Have you ever felt the thrill of scratching off a lottery ticket 🤑 hoping for life-changing rewards? Now, imagine a brand offering that excitement on every soda bottle you buy.

That’s exactly what Pepsi did in 1992 with “Number Fever” campaign in the Philippines. For a while, it was brilliant - sales skyrocketed, and Pepsi was the talk of the town.

People lined up to buy bottles for million-peso prizes 💸 But then, a single mistake changed everything. 5 members died. Protests erupted, trust was shattered, and Pepsi faced the aftermath of one of the biggest marketing disasters in history.

Mistakes happen, but how you handle them can define your brand.

What is that campaign that even took a toll on people's lives?

Let's see!

Campaign Overview

• Campaign name: Number Fever

• Campaign dates: February to May 1992

• Industry: Consumer Goods – Beverages

• Target audience: Filipino consumers, mainly middle and lower-income individuals seeking opportunities for financial rewards.

Campaign Objectives

1. Increase sales

   Pepsi wanted more people to buy their drinks. By offering cash prizes, they encouraged customers to buy more bottles. The hope was that people would keep buying until they got a winning cap.

2. Build brand loyalty

   The goal was to make customers prefer Pepsi over Coca-Cola. They aimed to create excitement and trust around the brand by showing that Pepsi could bring life-changing opportunities.

3. Capture more market share.

   At the time, Coca-Cola was Pepsi’s biggest competitor in the Philippines. Pepsi designed the campaign to make the most popular soft drink by getting more people to choose it instead of Coca-Cola.

4. Create a buzz

   Pepsi wanted everyone to talk about their brand. The campaign was to make a massive impact so more people would hear about Pepsi and its prizes, whether from ads, radio, or word of mouth.

What was the campaign about?

The “Number Fever” campaign launched by Pepsi in the Philippines in 1992 aimed to engage consumers and boost sales through an exciting lottery-style promotion. The ideas were simple: each Pepsi bottle cap had a unique three-digit code printed inside.

Pepsi announced winning numbers on TV and radio. Those who held caps with matching codes could win cash prizes. The prizes ranged from smaller sums to the grand prize of one million pesos (about $40,000 at the time).

This concept of winning big attracted the Filipino population, especially middle- and lower-income groups, who saw it as a rare opportunity to improve their financial situation. With the promise of life-changing rewards, the campaign quickly gained popularity.

Sales surged, and Pepsi bottles became highly sought after.

The campaign’s success seemed unstoppable until an error occurred on May 25, 1992. Pepsi announced the winning number for the million-peso prize as 349.

However, a manufacturing error led to the accidental production of 800,000 bottle caps with the same winning number instead of a limited quantity. This mistake turned what should have been a celebration into chaos.

Tens of thousands of individuals believed they were winners and rushed to claim their prize. Realizing the error, Pepsi declared that only caps with security codes would be valid for the million-peso reward.

This decision sparked outrage, as many people felt cheated. Protests erupted across the country, with demonstrators gathering at Pepsi offices demanding their prizes.

The situation escalated further, with violent incidents, including bombings targeting Pepsi trucks and offices. Tragically, five people lost their lives during these incidents, which highlighted the severe consequences of the campaign’s mishap.

Initially designed to create excitement and loyalty for Pepsi, this campaign became one of the most infamous marketing disasters. Despite its success in driving sales initially, the long-term damage to Pepsi’s reputation in the Philippines was deep.

Results

• The campaign started well. Pepsi's monthly sales in the Philippines increased from $10 million to $14 million. Their market share also grew from 19.4% to 24.9%.

• Pepsi faced numerous lawsuits from angry consumers. Although Pepsi overcame many cases, the situation still affected its reputation in the Philippines.

• The campaign aimed to boost sales and brand loyalty but ended up causing financial losses and damaging Pepsi's image in the country. The term 349ed even became Philippines slang for being tricked or deceived.

Conclusion

The "Number Fever" campaign highlights the power and risks of bold marketing. While it initially drove sales and excitement, poor execution and handling of mistakes caused lasting damage to Pepsi’s reputation in the Philippines. So, prioritize flawless execution, transparent problem-solving, and long-term brand trust over short-term gains.