Promotions 2.0Blurring the line between interactive advertising, promotions and social network marketing.

January 18th, 2009

Good Promotion Gone Bad

The recent debacle between Dr. Pepper and Axl Rose could have been avoided with a little planning and some legal guidance.

Back in March 2008, Dr Pepper made a promise that it would give a free soda to everyone in America who wanted one if Axl Rose, the over obsessive front man of Guns n’ Roses, released its long-awaited album “Chinese Democracy” from 14 years of studio captivity.

Early last year, Dr. Pepper created an unbranded blog that spelled out the details of the promotion. Release the album and we will give everyone a free soda to celebrate. When Geffen Records announced  that the album would finally be released, Dr Pepper posted the redemption details online: Fans would have 24 hours to enter their contact information at www.DrPepper.com. They would then be mailed a paper coupon for a free Dr Pepper.

That’s when the problems began, first in the form of multiple server breakdowns on the day of the coupon promotion. Reports said visitors were unable to log on to the Web site itself and, once they did get in, were not able to fill out the forms needed to receive the coupon.

Shortly after a letter from  Axl Rose’s attorney Alan Gutman  accused Dr. Pepper of unlawfully using the band’s name in a promotion and then botching that promotion and therefore tarnishing the band’s image in the eyes of their public.

The whole problem could probably have been avoided if Dr Pepper appropriately load-tested its servers before the launch or outsourced the hosting. Most corporate infrastructures are not designed to handle large traffic spikes in a short amount of time.

Dr Pepper could  have further shielded itself from legal action with a clear, formal promotional relationship with Guns N’ Roses. It’s not as cool, but substantially safer.

The Dr. Pepper debacle is an example of a good promotion idea that went bad due to poor planning & legal problems. Promotions are regulated by federal & state agencies so make sure you understand how to structure your promotion correctly or work with a partner that does.