Mechanism: Individuals were to collect Pepsi bottle caps with numbers. Each evening, a winning number was announced, and the holder of a matching cap would win a million pesos.
Popularity: Extremely high; half the country's population participated.
Contest Extension and Error
Initial Control: Pepsi could control the number of winners by seeding two winning caps to bottling plants.
Extension: Contest extended by 5 weeks due to popularity.
Glitch: Computer error caused misprinting.
The Incident
Date: May 25, 1992
Winning Number Announced: 349
Problem: Number 349 was not supposed to be a winning number but had been printed extensively.
Effect: Over 600,000 349 caps circulated, causing mass "winners."
Aftermath and Riots
Initial Reaction: Massive street celebrations; people rushed to Pepsi factories.
Company Response: Offered only 500 pesos per cap (much less than the promised prize).
Public Reaction: Anger and protests leading to violence, riots, and unfortunate deaths.
Legal Actions
Coalition 349: Formed to sue Pepsi; led by preacher Del Fiero.
Claim: Attempted to sue for $400 million.
Counter Allegations: Some claims suggested Pepsi orchestrated violence to discredit protestors.
Legal Outcomes: Arrest warrants for nine executives; most cases dismissed.
Conclusion
Long-Term Impact: Traumatic effects on Filipinos; lasting negative sentiment towards Pepsi.
Pepsi's Final Statement: Expressed regret but distanced current management from the incident.
Reflection
Cultural Impact: The incident has left a scar on the community and continues to affect perceptions of Pepsi in the Philippines.
Lessons Learned
Corporate Responsibility: Importance of companies maintaining transparency and accountability in contests and promotions.
Crisis Management: Necessity for proactive and remedial measures to handle errors effectively to prevent public distress.