Food for thought - What is actually known about business?

By : Forum Moderator
Published 15th June 2012 |
Read latest comment - 22nd July 2012

Cliche, I know. I did try find some news story about this, but, apart from general rants on the web, I found nothing. But I was listening to the radio last night about a "marketing blunder" that steers, a local fast food place here, fell prey to.

Here's the breakdown. They advertised a burger for R10.00, which normally sells for about 25. It was promoted all over, from TV to facebook and twitter. The special lasted for one day only. Here's the problem though, they had so many customers in their branches all over SA, that they actually ran out of stock.

Naturally this got people upset and they have been ranting on a few areas online and business gurus are now calling it a marketing blunder as they used social media to spread the word, and because these mediums are so popular, they could not deal with the amount of people that responded to the special.

What really gets me, is that I think its not a marketing blunder at all, it was actually a brilliant tactic. Look at the response they got for the promotion. In all honesty, to me, it seems like it was a business blunder because somehow they didn't realize that advertising food at that price was going to give them the response they got and they were unprepared.

I guess I am just a tad upset that its being pinned on marketing, and not letting the chips fall where they are meant to, and that's business management itself. What do you guys think though, was it a marketing blunder? Would you promote something like that and not prepare yourself for the influx on the day?

Thanks,
Dreamraven
Comments
This sounds like the Groupon stories.

Cupcake maker does a discount offer, gets inundated with the response, that she has to take on staff to cover the orders which in turn means each cake is sold at a loss due to the overheads.

Marketing wise, total success, business wise total disaster.

I agree with you, it's the business management. This maybe a bitter pill to swallow if like the majority of us you are a small company, as the buck probably stops with you.

Big companies get it wrong all the time. How many times has there been marketing publicity and promotion, but no thought went into increasing bandwidth and capacity, so the company ends up with it's website going down as it can't handle a spike of interest. This then turns into negative publicity

Government depts are also pretty good at doing this. Big TV campaign for tax credits or new passports, and boom, their website falls over

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Common sense dictates that, when advertising something at a huge discount, make sure you are prepared to handle it.

I am steamed that they blamed marketing for it. Seriously. In the end it looks like management doesn't want to take the blame, so they pass the buck. How is it that with marketing as it stands online, more seem to feel the need to devalue it even more?


Source: i764.photobucket.com


lol.

Thanks,
Dreamraven

I guess the stock wasn't analyzed well with respect to the marketing efforts. Or maybe, it's just an incident of probability that none expected.

printbucket

Hmm, I don't think its an incident of probability. To be honest, it might have been had only one store ran out, but every one of their branches had to close for the day because they didn't have the stock to support the demand.

Its all well and good to find a scape goat, but they at least need to pin it on the actual culprit, in this case management and not marketing.

Thanks,
Dreamraven

You kind of have an interesting point. But I'm quite confused as to which part of the management was wrong. Oh, I think it was on the supply management. But that still has something to do with marketing right? Supply management and marketing should be placed into one equation.

Thanks,
longlivemedia

I wouldn't go as far as putting into the same equation , but they need to work closely together, especially with something like this where things could explode exponentially and cause a disaster.

Thanks,
Dreamraven

I think the main error was in communication between the marketing department and the supply chain side of things - and this is probably quite symptomatic of a lot of large corporate failings because as a businesses get larger and departments become more autonomous, communication failures between the departments can lead to massive blunders.

enterprisepe

I get that. I just think that its then that businesses need to find ways to address that and not pass the buck. lol Its like 2 kids arguing about whodunnit. If there is a problem, accept it,find a solution and move on. Do you think that maybe some big companies don't focus enough on communication? Or would the autonomy be just another day in the life of a big business.

Thanks,
Dreamraven

Can't have a good business without effective marketing AND competent delivery of the goods or services you're marketing.

Clearly a case of incompetence and failure to plan and communicate.

Scintillion

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