Review by Matt Curtis in KIN 435
The article that will be critiqued is called “PepsiCo expands lucrative NFL partnership.” The article was about the relationship PepsiCo has with the NFL. It first starts off by saying that PepsiCo has had a 28-year relationship with the NFL and will expand their deal with the NFL for 10 years, lasting through the 2022 play-offs. The article says the exact terms of the deal have not been disclosed but the contract is estimated to be worth $2.3 billion. Under the contract, PepsiCo also sponsors the NFL international series, which is a game that takes place in London and had been running for 5 consecutive years. Pepsi Max is still going to be the official soft drink of the NFL, and the Gatorade G series will support athletes and back education programs. PepsiCo’s Quaker Oats and Tropicana brands will now become partners of the league in order to promote those products. The article ends with saying how the NFL commissioner Roger Goddell, and PepsiCo CEO Indra Nooyi are happy with the deal.
The article was a little vague. It didn’t go into any details about the actual ways they plan on marketing the new products. It also talked about some programs they plan on running but didn’t give any information as to what they were. Also, when talking about the contracts, it didn’t elaborate on what exactly it means to be the official sponsor of the NFL. There are some heavy sales implications that stem from the article however. The contract being worth $2.3 billion was only an estimate, but that shows the importance the NFL means to PepsiCo. They are basically saying that investing $230 million each year into the NFL alone will earn them more than that in revenue. Not to mention the money they will have to spend on their marketing campaigns.
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Review by Sky Powell in KIN 435
With the agreement, Pepsi will continue to be a sponsor of the NFL International Series, which is when two NFL teams play a regular season game in London. This will be the fifth consecutive year they have done this in an effort to help promote American football to a European crowd.
PepsiCo also plans to gain exposure through the NFL for their other brands as well. They are the owners of Gatorade, Pepsi Max, Frito-Lay, Quaker Oats and Tropicana. Pepsi Max will continue its role as the official soft drink of the NFL, while Gatorade will remain supporting athletes through their Gatorade G Series campaign. Gatorade is also involved in an educational program called “Beat the Heat,” in which they are concerned in teaching athletes, parents, and coaches heat-related illness and the importance of staying hydrated before, during, and after practices and games. Quaker Oats as well as Tropicana will become new partners with the NFL at the beginning of next season and it is estimated that both brands will be investing at least $15 million per year.
Since the 1980’s, Gatorade has been a sponsor of the NFL, but PepsiCo did not gain the main sponsorship of the league until 2002. Their rival, Coca-Cola had held those rights for almost 20 years, but Pepsi was able to strike up a better deal to land the spot as the primary sponsor. Pepsi and the NFL hope to build a better relationship between athletes and fans through their top of the line marketing schemes. They want to work together to bring the fans a more NFL-themed promotion all year round.
I think that the contract is beneficial for both sides because Pepsi is allowed to promote all aspects of their company, while the NFL is going to gain exposure through each of those brands.
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