Did Dr. Pepper Win or Lose with Upcoming GNR Release?

Posted By Joe Pulizzi on October 31, 2008

It seems the press (AdAge / others) believe that Dr. Pepper’s betting on Guns N’ Roses upcoming album could be a big loss.  Here’s the deal: Dr. Pepper said that they would give every American a free can of Dr. Pepper if Guns N’ Roses released their album, “Chinese Democracy” by the end of 2008.

Now that the album is set to be released in the next month, AdAge positioned that Dr. Pepper could lose up to $165 million if every American took up the deal with DP.

Good move by Dr. Pepper?  Absolutely.

Let’s say a surprisingly high return would be 10% of Americans.  In that case, it would only cost $16.5 million.  But money aside, Dr. Pepper has already received tons of coverage about their bet, a value most likely in excess of $20 million in advertising.  More importantly, they’ve tied themselves to the music fans of GNR.  Can you imagine what kind of sponsorship activations they could do with the band, the album release, and the tour?

This is a big win for Dr. Pepper. Now it’s up to them to get the most out of the connection they’ve made with GNR and their fans.

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