Hoover free flights promotion

src: i.ytimg.com

The free flight promotion Hoover is a marketing promotion that started in 1992. The British Division of the Hoover Company brought in a large surplus stock of washing machines and vacuum cleaners; to sell it and free up the warehouse space, he promises free airline tickets to customers who purchase more than Ã, Â £ 100 worth of products. However, Hoover does not anticipate that many customers who purchase qualified products are not really interested in the actual equipment, but simply want the tickets offered in the promotion.

Initially the offer was for two round-trip tickets to selected destinations in Europe, and this proved very successful in clearing stock surpluses. The analysis reveals that the rate of conversion of free flight vouchers to actual tickets is relatively low, leading Hoover to decide to expand its offerings to include destinations in the US, assuming that although the tickets will be more expensive, the conversion rate will remain at the same level.

However, at this point the response of consumers increased enormously, as Hoover effectively offered around Ã, Â £ 600 airline tickets for expenses of just Ã, Â £ 100. The Hoover plant had to switch to a seven day job and hire additional workers to meet demand for suckers dust is the cheapest qualified, and some stores even report that people pay for the equipment and then just come out after they get proof of purchase needed to take advantage of free flights, leaving unwanted products at the counter.

It is estimated that quite a few people are trying to convert their vouchers into tickets to fill 500 Boeing 747s (the largest passenger aircraft at the time). In the end, £ 30 million in extra sales, a lured promotion dwarfed by £ 50 million, the cost to pay for airline seats as well as settling legal claims from them (the majority) that do not accept tickets.

Video Hoover free flights promotion

History

In 1993, the Hoover Vacation Press Group was formed, led by Harry Cichy and Sandy Jack, to protest that the company did not keep its promise. Buying some shares in Hoover's parent company, Maytag, the pressure group went to the Maytag Annual General Meeting in Newton, Iowa. Sandy Jack expressed his concern to Maytag's CEO, Len Hadley. The group's presence made headlines on ABC and the front cover of The Des Moines Register .

In 1994, Jack brought Hoover to court over a free flight promotion. The BBC's Watchdog investigates a customer complaints program about promotion, by reporter Simon Walton and secret researcher Hilary J Bell, bringing the issue to wider public attention. A number of Hoover executives were dismissed for their part in the failure, including

• William Foust, managing director of Hoover Ltd and president of Hoover Europe
• Brian Webb, Hoover's marketing vice president
• Michael Gilbey, director of marketing services

Maps Hoover free flights promotion

Results

Court cases lasted until 1998. After the disaster cost the company nearly Ã, £ 50 million, the British division of Hoover was sold to the Italian candy factory, Candy.

src: thumbs.dreamstime.com

Followup

In 2004, a BBC documentary was made on Cichy's warning and Jack's visit to Newton in 1994. Part of the Difficulty on Top series, "Hoover Flights Fiasco" was watched by 1.7 million viewers. As a result, the Royal Family of England withdrew their Kingdom Letter.

src: cached.imagescaler.hbpl.co.uk

References

src: i.ytimg.com

External links

• BBC News : BBC online Failure of free flight Hoover recalls UK Edition, May 13, 2004
• PROMO Magazine: Bloody Dust, Oct 1, 2005

Source of the article : Wikipedia