Gambling with Ideas
You may well know from experience that there is a razor thin line between a BIG idea and a dumb one. In the world of promotion, there are equal examples of both to illustrate the point. So what to make of the furniture store promotion that offered customers a full refund on their purchases if the Ohio State football team won the Sugar Bowl and advanced to the championship game, beating their opponent by a specific point spread. The numbers tell the full story: 42-35; 42-20; 22; $1.5 million.
Morris Furniture Company, headquartered in Dayton, Ohio, ran a promotion at 15 of their retail outlets in Columbus, Dayton, Cincinnati and Florence, Kentucky, offering refunds to customers who purchased at least $1,999 in furniture, mattresses and accessories from December 17th to January 1. But here’s the catch: Ohio State’s team had to advance to the National College Football Playoff championship and beat their opponent by at least seven points.
Suffice it to say that the Buckeyes didn’t disappoint…the furniture store customers.
They beat #1 Alabama in the Sugar Bowl (42-35) and crushed #2 Oregon in the national championship (42-20), winning by a whopping 22 points.
That brings us to the $1.5 million refund the furniture store with the BIG idea had to pay out to some 500 giddy customers.
I originally heard about this promotion on the radio, featured as one of The Dumbest Ideas of the Week. The announcer was quick to note that Morris Furniture Company’s marketing manager was “unavailable for comment…” (knowing laughter all around).
Could anybody (in this "new economy") be dumb enough to risk their livelihood and reputation without a Plan B? I had to check it out for myself.
Let’s start with the upbeat quotes by a Morris Home Furnishings “representative” (what happened to the marketing guy?):
“We had a 20% sales increase during that period.”
“We launched the promotion the week before Christmas which is typically the slowest week of the year.”
“This promotion definitely made us stand out during that time and encouraged customers to shop during a time when they are normally not shopping for furniture.”
Sounds like a pretty sound strategy and outcome:
• Increased sales
• Steady traffic during a slow period
• Enhanced differentiation and brand awareness
Not to mention national media exposure from the likes of ABC News, USA Today, and FOX Sports.
But what about that $1.5 million in payouts…?
Not-so-dumb Morris Home Furnishings hired a third-party company (Dallas-based SCA Promotions) to underwrite the promotion and refund money for a percentage of the sales.
“The best feature about a conditional rebate promotion,” said Bill Riley, the Account Executive at SCA Promotions who managed the furniture store’s program, “is the ability for it to catch fire and capture attention, anticipation, and generate thousands…or sometimes even millions of impressions in a crowded marketplace.”
And the bottom line marketing spend for that kind of excitement and exposure?
Priceless.
Anita Alvare (bio)/Alvare Associates/610-520-6140
