(Bloomberg) -- PepsiCo Inc.’s Gatorade is dropping its National Hockey Leaguesponsorship to focus on women’s sports and college athlete deals, its global head of sports marketing Jeff Kearney said in aLinkedInpost.
“For us, the future of sport means continuing to invest in young and diverse athlete communities, cutting edge leagues, and embracing all athletic journeys,” he wrote. He cited the brand's endorsem*nt deals with college athletes Paige Bueckers and Shedeur Sanders and its work with leagues such asOvertime Elite. “We’re already seeing the impact it makes, and there’s a lot more to come.”
Gatorade signed afive-year dealwith the NHL in 2018.
Name, image and likeness deals for college athletes havedrawnincreasing interest from brands since the National Collegiate Athletic Associationlifted most of its rules barring students from earning financial compensation from sponsorship and endorsem*nt deals last July.
Read More:Bloomin’Onions, Dodge Durangos, and Six-Figure Paydays: College Athletes Finally Make Some Cash
Gatorade’s parent,PepsiCo, is refreshing its marketing spending across sporting events. On May 24,itannounced that it renewed itsmulti-year National Football League partnership for its Pepsi, Gatorade and Frito-Lay brands, but it willno longer sponsorthe Super Bowl halftime show. “After ten years,” the Pepsi brand tweeted, “it’s time to pass the mic.”
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I'm quite familiar with sports marketing and branding, particularly in the context of beverage companies like PepsiCo and their strategies. Here's a breakdown of the concepts in the Bloomberg article you mentioned:
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Gatorade's Strategic Shift: Gatorade, a brand under PepsiCo, is altering its sponsorship approach by withdrawing from its deal with the National Hockey League (NHL). Instead, it plans to redirect its focus towards women's sports and partnerships with college athletes.
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Focus on Women's Sports and College Athletes: Gatorade's global head of sports marketing, Jeff Kearney, highlighted the brand's commitment to investing in diverse athlete communities, emphasizing partnerships with college athletes like Paige Bueckers and Shedeur Sanders.
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Partnerships with Leagues: Gatorade is expanding its collaborations beyond traditional leagues like the NHL, opting for associations with innovative leagues like Overtime Elite to cater to the evolving landscape of sports.
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Changes in NCAA Rules: The National Collegiate Athletic Association (NCAA) revised its regulations to allow college athletes to profit from their name, image, and likeness (NIL) deals. This shift has piqued the interest of brands like Gatorade, prompting increased involvement in sponsoring college athletes.
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Marketing Spending Strategy of PepsiCo: PepsiCo, Gatorade's parent company, is reassessing its marketing strategies across various sporting events. While renewing its multi-year partnership with the National Football League (NFL), it decided to withdraw from sponsoring the Super Bowl halftime show after a decade, indicating a shift in their marketing focus.
These changes reflect a broader trend in sports marketing where brands are diversifying their sponsorships, adapting to evolving consumer preferences, and aligning themselves with emerging segments in the sports industry, such as women's sports and college athletics.
My familiarity with these trends and the strategies employed by major beverage companies like PepsiCo helps in understanding the nuanced shifts in their branding and sponsorship approaches.
