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Pepsi Philippines: 349 IncidentA Number That Led to Thousands of Filipino to be MillionaireCase StudyAMO, KimBATAC III, MoisesGAGARINO, Axle MiguelMENDOZA, EnnylMOLINA, CarlREPIQUE, Matthew
Time Context1984 –Pepsi Cola International (PCI) developed a marketing promotion, with the help ofa Mexican firm named DG Consultares and Pedro Vergara, who worked as a marketingspecialist in promotions department in New York. This marketing promotion called“Number Fever”, used to promote Pepsi-Cola to the people to have a chance to winprizes. The promotion was used successfully in some Latin American countries, whichgenerated as much as 40 percent sales growth to the company.1989 –Pepsi-Cola Products Philippines, Inc. (PCPPI) was established as PremierBeverages by Luis Lorenzo, Sr. to acquire the bottling and distribution rights to PepsiCobeverages in the Philippines.1992February –Pepsi Philippines (PCPPI) started to adapt the “Number Fever”promotion. The company announced that they would print numbers, ranging from001 to 999, inside the caps or crowns of their beverage products. Certain numberswill be draw and to be announced in news broadcast to determine who will be thewinners of prizes, which ranged from 100 pesos to 1 million pesos for a grand prize.The “Pepsi Number Fever” was a successful promotion of Pepsi Philippines resultedan initially increased to its market share from 19.4 percent to 24.9 percent.May 25 –The nightly broadcast of ABS-CBN Channel 2 News announced the grandprize-winning number is 349. The grand prize-winning bottle caps were tightlycontrolled by Pepsi Co., it printed with a security code for confirmation. However,because of a computer error in printing the numbers, almost 800,000 bottle caps hadbeen printed with the number 349 without security code. That night, thousands ofpeople rushed to Pepsi bottling plants to claim their prizes.May 26 –Pepsi Co. initially responded that the grand prize could not redeemedsince bottle caps have no security code. After an emergency meeting of PCPPI andPepsi Co. executives at 3:00 a.m., as a “gesture of good will", the company offered500 pesos to holders of mistakenly printed bottle caps. The offer was accepted by486,170 people.Bottle cap holders who refused the settlement offer of the company formed aconsumer group, “349 Alliance”, which organized a boycott of Pepsi products. The