Hoover's £50 Million Mistake

→Subscribe for new videos every day!
https://www.youtube.com/user/TodayIFo...
→How "Dick" came to be short for 'Richard': How Dick Came to be Short for Richard

Never run out of things to say at the water cooler with TodayIFoundOut! Brand new videos 7 days a week!

More from TodayIFoundOut

That Time a Flying Pig Grounded Every Plane at London's Heathrow Airport
That Time a Flying Pig Grounded Every...

That Time a Passenger Loaded Boeing 767 Ran Out of Fuel Mid Flight
That Time a Passenger Loaded Boeing 7...

In this video:

Giving away free stuff with a purchase is a good way to bolster sales and can result in a tidy increase in profits, provided you follow the general rule of making sure the long term projected profit from the promotion is greater than the cost of the giveaway. Appliance giant Hoover learned this seemingly obvious lesson first hand in 1992 when they inexplicably decided to give away free flights worth several times more than most of the products they were selling as part of what has become known as Hoovergate- one of the most disastrous marketing campaigns of all time, today taught in marketing text books the world over.

Want the text version?: http://www.todayifoundout.com/index.p...

Sources:

http://articles.latimes.com/1993-04-0...
http://news.bbc.co.uk/1/hi/business/3...
http://www.independent.co.uk/news/hoo...
http://www.independent.co.uk/news/uk/...
http://www.independent.co.uk/life-sty...
https://en.wikipedia.org/wiki/Hoover_...
http://www.bbc.co.uk/programmes/p04b6ys9
http://www.campaignlive.co.uk/article...
http://www.upi.com/Archives/1993/09/2...
https://books.google.com/books?id=S7M...
https://books.google.com/books?id=kJs...

Image Credit:

https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://www.bigstockphoto.com/ru/imag...
https://en.wikipedia.org/wiki/The_Hoo...
https://en.wikipedia.org/wiki/The_Hoo...
https://commons.wikimedia.org/wiki/Fi...
https://commons.wikimedia.org/wiki/Fi...
https://commons.wikimedia.org/wiki/Fi...
https://commons.wikimedia.org/wiki/Fi...
https://commons.wikimedia.org/wiki/Fi...
https://www.flickr.com/photos/9159104...
https://commons.wikimedia.org/wiki/Fi...
https://commons.wikimedia.org/wiki/Fi...

• #education
• #today_i_found_out
• #tifovidz12
• #tifo
• #awesome
• #facts
• #didnt_know
• #free_flights
• #hoover_free_flights
• #hoover_free_flights_fiasco
• #business_facts
• #business_mistakes
• #business_marketing_mistakes
• #marketing_mistakes
• #hoover_marketing_mistake
• #hoover_flights_mistake
• #vacuum_cleaner_flights
• #flights_for_a_vacuum_cleaner