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               27 years ago, Hoover offered two free international flights with any £100 purchase. Today, it’s remembered as the worst sales promotion in history. by Zachary Crockett.
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            <h2 style="font-size: 30px; font-family: 'Oswald', 'Roboto', helvetica, sans-serif; font-weight:bold; line-height:120%;margin-bottom: 6px; margin-top: 25px">
             <strong>
              The worst sales promotion in history
             </strong>
            </h2>
            <p style="font-family: Helvetica, sans-serif; font-size: 18px; line-height: 120%; padding-bottom: 10px; font-style: italic;color: #737373; margin: 0">
             27 years ago, Hoover offered two free international flights with any £100 purchase. Today, it’s remembered as the worst sales promotion in history.
            </p>
            <p style="font-family: Helvetica, sans-serif; font-size: 13px; line-height: 120%; padding-bottom: 24px; margin: 0;">
             <strong>
              BY
              <a style="color: #121212; text-decoration: underline !important; text-transform: uppercase;">
               Zachary Crockett
              </a>
             </strong>
            </p>
           </td>
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           <td class="h2020 ignore-defaults" style="padding: 0px 10px;">
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             In late 1992, the UK branch of the vacuum manufacturer, Hoover, offered an impossibly sweet promotion: If a customer bought any product worth £100, he or she would get two free round-trip flights to the United States.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             For the 84-year-old electronics brand, it was meant to be an eye-catching way to boost dwindling sales, escape the gloom of a recession, and shrug off increased competition.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin:5px 0px 10px">
             Instead, it led to the destruction of the company — a precipitous downfall that saw multimillion-dollar losses and customer revolts.
            </p>
            <h2 style="font-size: 20px;font-weight: 800; letter-spacing: 0px;line-height: 24px; margin: 20px 0 0px">
             <strong>
              The most trusted brand in England
             </strong>
            </h2>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px;">
             In 1908, a department store janitor named
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              James Murray Spangler
             </a>
             was suffering from a mean case of dust allergies.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px;">
             So, he did what any entrepreneurial asthmatic would do: He mounted a motorized fan motor on a carpet sweeper and filed a patent for the world’s first household vacuum cleaner.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px">
             Spangler soon sold the patent to his cousin’s husband, William Hoover, who launched The Hoover Company and began selling the devices all over the US and Europe.
            </p>
            <p style="font-size:16px;line-height: 140%; margin: 5px 0px 10px">
             For decades, the Hoover brand enjoyed a near-monopoly on vacuum cleaner sales. The machines were so ubiquitous in England that “hoover” became a generic noun (like Kleenex or Band-Aid), and was used as a synonym for “vacuum.” Its provenance earned it a reputation as one of the world’s most trusted brands.
            </p>
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            <img alt="Hoover showroom" src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Fshowroom.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1omZPr:zLwzJcIfnQtN3wcgMoxsD8iPj1skGLyUtIABPVPyQk0" style="width: 100%; max-width: 600px; height: auto; padding-top:10px" width="600"/>
            <p align="left" style="font-family: 'Roboto', helvetica, sans-serif;color: #192733;font-size: 12px;font-style: italic;padding-bottom:10px; text-align: left; line-height: 20px; margin: 0px">
             A Hoover showroom in the 1920s (Wikipedia)
            </p>
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           <td class="h2020 ignore-defaults" style="padding: 0px 10px;">
            <p style="font-size:16px;line-height:140%; margin: 5px 0px 10px">
             By the late ‘80s, the company, under the new ownership of
             <a style="color: #192733;text-decoration: underline !important;" target="_blank">
              Maytag
             </a>
             , had expanded beyond vacuums and dominated the British cleaning market. But trouble was brewing.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin:5px 0px 10px">
             The UK was entering the throes of a
             <a style="color: #192733;text-decoration: underline !important" target="_blank">
              recession
             </a>
             , and Hoover, a US-based company with a large presence in the UK, faced stiff competition from sexy newcomers like
             <a style="color: #192733;text-decoration: underline !important" target="_blank">
              Dyson
             </a>
             . In an effort to compete, they rolled out ill-fated products like a “talking vacuum” that warned users when to change the dustbin.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px">
             Between 1987 and 1992, Hoover’s profits fell from $147m to $74m. In short order, excess inventory began to pile up in its warehouses — and its 50% market share in England began to dwindle.
            </p>
            <p style="font-size:16px; line-height: 140%; margin: 5px 0px 10px">
             The old vacuum company needed to do something dramatic, daring, and attention-grabbing. And just the opportunity came along.
            </p>
            <h2 style="font-size:20px;font-weight: 800; letter-spacing: 0px; line-height: 24px;margin: 20px 0 0px">
             <strong>
              'UNBELIEVABLE!'
             </strong>
            </h2>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             In the early months of 1991, Hoover’s UK branch was approached by a tiny (now-defunct) travel agency called JSI Travel. Like Hoover, JSI was feeling the squeeze of the recession and was looking for a way to offload cheap flights.
            </p>
            <p style="font-size: 16px; line-height: 140%;margin: 5px 0px 10px">
             So, they pitched the company a novel idea: A sales promotion where anyone who spent more than £100 (~$250 USD today) on a Hoover product at a qualifying department store would get two free round-trip tickets to a destination in Europe.
            </p>
            <p style="font-size:16px;line-height:140%; margin: 5px 0px 10px">
             On paper, it seemed like a win-win: Hoover would sell its excess inventory and boost sales; JSI would sell flights in bulk to Hoover and handle the bookings.
            </p>
            <p style="font-size: 16px;line-height: 140%;margin: 5px 0px 10px;">
             Hoover knew that if everyone who bought a product applied, it’d be in trouble — so it made the process of obtaining these flights as annoyingly time-consuming as possible:
            </p>
            <ol style="font-size: 16px">
             <li style="font-size: 16px;line-height: 140%;margin: 0 0 0 15px; padding: 0px">
              A customer buys a Hoover product for £100+ and mails in a receipt + application within 14 days of purchase.
             </li>
             <li style="font-size: 16px;line-height: 140%;margin: 0 0 0 15px; padding: 0px">
              Hoover sends a registration form; the customer has 14 days to send it back.
             </li>
             <li style="font-size: 16px; line-height: 140%; margin: 0 0 0 15px; padding: 0px">
              Hoover sends a travel voucher; the customer has 30 days to select 3 departure airport, date, and destination combinations.
             </li>
             <li style="font-size:16px; line-height: 140%; margin: 0 0 0 15px; padding: 0px">
              Hoover has the right to reject the customer’s choices; the customer can select 3 alternatives.
             </li>
             <li style="font-size:16px; line-height: 140%; margin: 0 0 0 15px; padding: 0px">
              Hoover also has the right to reject these alternatives and select 3 combinations of its own choosing; if they don’t work, the customer is out of luck.
             </li>
            </ol>
            <p style="font-size:16px; line-height: 140%; margin: 5px 0px 10px">
             Hoover advertised the promotion heavily in newspapers and TV commercials with an
             <a style="color: #192733;text-decoration: underline !important;" target="_blank">
              enticing caption
             </a>
             : “Two free flights. Unbelievable!”
            </p>
           </td>
          </tr>
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           <td align="center" style="text-align: center;">
            <img alt="newspaper ad" src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Fnewspaper_ad.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1omZPr:zLwzJcIfnQtN3wcgMoxsD8iPj1skGLyUtIABPVPyQk0" style="width: 100%; max-width: 600px; height: auto;padding-top: 10px" width="600"/>
            <p align="left" style="font-family: 'Roboto', helvetica, sans-serif; color: #192733; font-size: 12px; font-style: italic;padding-bottom: 10px; text-align:left; line-height: 20px;margin: 0px">
             A newspaper ad touting Hoover’s free flight offer (The Guardian, October 1992)
            </p>
           </td>
          </tr>
          <tr>
           <td class="h2020 ignore-defaults" style="padding: 0px 10px;">
            <p style="font-size:16px;line-height: 140%; margin: 5px 0px 10px">
             By late 1992, Hoover products were flying off the shelves and the company’s sales projections were back on track.
            </p>
            <p style="font-size:16px;line-height: 140%; margin: 5px 0px 10px">
             Then, Hoover made a fatal mistake: It decided to double down.
            </p>
            <h2 style="font-size: 20px; font-weight: 800;letter-spacing: 0px;line-height: 24px; margin: 20px 0 0px">
             <strong>
              The transatlantic disaster
             </strong>
            </h2>
            <p style="font-size:16px; line-height: 140%; margin: 5px 0px 10px">
             On Nov. 1, 1992, Hoover expanded its free ticket offer to include flights to America.
            </p>
            <p style="font-size: 16px; line-height:140%; margin:5px 0px 10px">
             Under a new promotion, that same £100 Hoover purchase could net a UK-based customer two free round-trip flights to New York or Orlando — a package worth £600+ (£1,200, or $1,355 USD, today).
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px">
             When Hoover ran this plan by risk management professionals, the company was warned that it would be an absolute disaster.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px">
             “To me it made no logical sense,”
             <a style="color: #192733; text-decoration: underline !important" target="_blank">
              recalled
             </a>
             Mark Kimber, one of the consultants. “Having looked at the details of the promotion [and] attempting to calculate how it would actually work I declined to even offer risk management coverage.”
            </p>
            <p style="font-size:16px; line-height: 140%; margin: 5px 0px 10px">
             Unfortunately, Hoover chose to ignore this advice. They decided to proceed, mainly based on two fatal
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              assumptions
             </a>
             :
            </p>
            <ol style="font-size: 16px;">
             <li style="font-size: 16px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
              Only a small fraction of purchasers would actually jump through the hoops necessary to redeem the flights.
             </li>
             <li style="font-size: 16px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
              Customers would spend far more than the £100 minimum, offsetting the cost.
             </li>
            </ol>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             Initially, things went according to plan. Department stores all over the UK
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              became
             </a>
             an “uncivilized scene” as thousands of people clamored to buy the cheapest Hoover products they could find.
            </p>
           </td>
          </tr>
          <tr>
           <td align="center" style="text-align: center;">
            <img alt="TV ad" src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Ftv_ad.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1omZPr:zLwzJcIfnQtN3wcgMoxsD8iPj1skGLyUtIABPVPyQk0" style="width: 100%; max-width: 600px; height: auto;padding-top: 10px" width="600"/>
            <p align="left" style="font-family: 'Roboto', helvetica, sans-serif; color: #192733;font-size:12px;font-style: italic; padding-bottom:10px; text-align:left;line-height: 20px; margin: 0px">
             A still from a 1992 TV ad promoting Hoover’s offer (YouTube)
            </p>
           </td>
          </tr>
          <tr>
           <td class="h2020 ignore-defaults" style="padding: 0px 10px">
            <p style="font-size:16px;line-height: 140%; margin: 5px 0px 10px">
             In the middle of a recession, shops were selling out of £119.99 vacuum cleaners, and Hoover had to put its factories on seven-day overtime shifts to keep up with demand.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             “The world has gone mad and it is all the fault of Hoover,” wrote the
             <a style="color: #192733; text-decoration: underline !important;">
              <em>
               Observer
              </em>
             </a>
             a month into the promotion. “If left uncontrolled, Britain could soon be knee-deep in Hoover Turbomaster Uprights.”
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             But as paying customers would soon find out, this “deal” was something of an illusion.
            </p>
            <h2 style="font-size: 20px; font-weight: 800; letter-spacing: 0px; line-height: 24px; margin: 20px 0 0px;">
             <strong>
              'We don’t want blood. We want tickets.'
             </strong>
            </h2>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             As free flight entries ballooned, Hoover began to realize it had made a terrible mistake.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             Sales (and entries in the free flight promotion) soon outpaced Hoover’s projections by 10x: an estimated 300k people bought qualifying products — 600k flights that Hoover would potentially have to pay for. And contrary to its projections, customers were
             <em>
              not
             </em>
             spending significantly more than the minimum £100.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             The math was concerning: On the sale of a £119 vacuum cleaner, Hoover made a profit of £30. The two free fights that came with it were worth at least £600. This meant that each customer who followed through with the promotion cost Hoover £570.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             Though the company generated around
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              £30m
             </a>
             in gross sales from the promotion, the cost of the flights was conservatively estimated to be more than £100m.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             So, Hoover began to do everything it could to
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              fleece
             </a>
             customers out of the free flights.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin:5px 0px 10px">
             It claimed thousands of customers had failed to correctly fill out the forms. It wrote back offering flights that departed from airports hundreds of miles away from customers’ homes. It sent out request forms on Christmas Eve, hoping mail closures would cause people to miss the 14-day deadline to send them back in.
            </p>
           </td>
          </tr>
          <tr>
           <td align="center" style="text-align: center">
            <img alt="economics" src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Fpromotion_economics.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1omZPr:zLwzJcIfnQtN3wcgMoxsD8iPj1skGLyUtIABPVPyQk0" style="width: 100%; max-width: 600px; height: auto; padding-top: 10px;" width="600"/>
            <p align="left" style="font-family: 'Roboto', helvetica, sans-serif;color: #192733;font-size: 12px;font-style: italic;padding-bottom: 10px;text-align: left;line-height: 20px;margin: 0px">
             Zachary Crockett / The Hustle
            </p>
           </td>
          </tr>
          <tr>
           <td class="h2020 ignore-defaults" style="padding: 0px 10px;">
            <p style="font-size:16px;line-height: 140%; margin: 5px 0px 10px">
             Customers who’d followed all the rules were told their letters had “gone missing,” or that they’d failed to spot some arbitrary deadline buried in fine print.
            </p>
            <p style="font-size:16px;line-height:140%;margin: 5px 0px 10px">
             “The whole idea is to dissuade [customers] from going, because each time they go it costs Hoover money,” one Hoover exec
             <a style="color: #192733;text-decoration: underline !important" target="_blank">
              told
             </a>
             a participating travel agency.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px">
             News soon broke that not a single flight had been granted — and thousands of angry customers began to take action.
            </p>
            <p style="font-size: 16px; line-height: 140%;margin: 5px 0px 10px">
             One of them, Harry Cichy, formed
             <a style="color: #192733; text-decoration: underline !important" target="_blank">
              Hoover Holiday Pressure Group
             </a>
             , a coalition to hold Hoover accountable for what they’d promised. It swelled to more than 4k members — doctors, lawyers, pig farmers, and electricians.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             “We don’t want blood,” Cichy said in a
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              statement
             </a>
             at the time. “ We want tickets.”
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             In June of ‘93, 42-year-old Dave Dixon took a more dramatic measure: Angered that he hadn’t yet received his free flights, he decided to hold a Hoover delivery van
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              hostage
             </a>
             in his driveway in Workington, England. It remained blockaded by his horse truck for 13 days until a high court finally ordered its release.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             As the crisis made international headlines, Hoover attempted to shift blame to a handful of executives, the airlines, and the travel agencies they’d partnered with. It
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              fired
             </a>
             the president of its UK division, along with two other senior marketing executives involved in the promotion, and announced a plan to invest £20m into a “free flights fund.”
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             But these maneuvers hardly put a dent in the backload of unfulfilled offers.
            </p>
            <h2 style="font-size: 20px; font-weight: 800; letter-spacing: 0px; line-height: 24px; margin: 20px 0 0px;">
             <strong>
              Complete destruction
             </strong>
            </h2>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             By the end of 1993, Hoover was posting £23.6m in
             <a style="color: #192733; text-decoration: underline !important;" target="_blank">
              losses
             </a>
             on £390m in sales. The once-trusted home appliance king was now the disgrace of England.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             “Our production losses forecast for the coming years run into millions of US dollars,” Hoover’s US president, Gerard Amman, told shareholders, “[and] 80% of the total is attributable to Hoover Europe.”
            </p>
            <p style="font-size:16px; line-height: 140%; margin: 5px 0px 10px">
             Eventually, Hoover Europe’s corporate parent, US-based Maytag, was ordered to shell out the equivalent of
             <a style="color:#192733; text-decoration: underline !important" target="_blank">
              $72m
             </a>
             on flights for some 220k customers — and even then, another 300k-350k never received their offer.
            </p>
           </td>
          </tr>
          <tr>
           <td align="center" style="text-align: center">
            <img alt="newspaper headlines" src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Fpaper_headlines_1.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1omZPr:zLwzJcIfnQtN3wcgMoxsD8iPj1skGLyUtIABPVPyQk0" style="width: 100%; max-width: 600px;height:auto; padding-top: 10px" width="600"/>
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             Hoover’s failed promotion made for juicy headlines in the early ‘90s (The Guardian, The Observer; 1992-1996)
            </p>
           </td>
          </tr>
          <tr>
           <td class="h2020 ignore-defaults" style="padding: 0px 10px">
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px">
             In 1995, Hoover Europe was so shattered from the ordeal that it was
             <a style="color:#192733; text-decoration: underline !important">
              sold off
             </a>
             to an Italian competitor, Candy, for $106m, at a loss of $81m.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px">
             The company’s market share, once over 50%, dwindled to less than 10%, and the public rated the company’s products “least reliable” in at least six
             <a style="color:#192733; text-decoration: underline !important;">
              consumer reports
             </a>
             . The British royal family even withdrew the company’s
             <a style="color: #192733; text-decoration: underline !important;">
              Royal Warrant
             </a>
             , a mark of recognition for trusted companies.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px;">
             Worse yet, a “glut of unwanted, unused secondhand Hoovers” — purchased by people just for the free flights —
             <a style="color: #192733; text-decoration: underline !important;">
              flooded the market
             </a>
             , making it impossible for the company to offload new inventory.
            </p>
            <p style="font-size: 16px; line-height: 140%; margin: 5px 0px 10px;">
             “Mentioning the name ‘Hoover’ [at a marketing conference] is rather like shouting ‘Hindenburg’ at a 1938 convention of airship designers,” a
             <a style="color: #192733; text-decoration: underline !important;">
              <em>
               Guardian
              </em>
             </a>
             reporter wrote in the aftermath of the corporate blunder.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px;">
             Nearly three decades later, the blunder is cited in marketing textbooks as a prime example of what can happen when a company falls short on a promise to customers.
            </p>
            <p style="font-size: 16px;line-height: 140%; margin: 5px 0px 10px;">
             And Hoover vacuums, once the star of every living room in the UK, sit in closets gathering dust.
            </p>
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