SBD/19/Sponsorships Advertising Marketing

PEPSICO WAGES A COLA WAR IN SIGNING MLB DEAL

          PepsiCo and MLB announced a five-year marketing deal
     that will make Pepsi the official soft drink MLB and gives
     the company exclusive rights to use MLB trademarks,
     including post-season and All-Star Game logos.  The deal
     also gives Pepsi the use of MLB team marks in advertising,
     packaging, merchandising and promotions (PepsiCo).
          COLA WAR: In N.Y., Stefan Fatsis writes that PepsiCo
     also plans to run ads on Fox Sports national TV broadcasts
     beginning this year, and create new baseball-themed ads for
     '98.  MLB will collect "only about" $1M per year in rights
     fees from PepsiCo to be split among the teams.  Fatsis notes
     that with the deal, MLB "is playing both sides of the cola
     wars, and thus risking alienating Coke, one of its oldest
     and biggest sponsors."  Coca-Cola's local sponsorships of 24
     of 28 MLB teams include stadium pouring rights.  PepsiCo
     sponsors four teams and the two expansion teams which begin
     play in '98.  PepsiCo "will face the awkward problem" of
     being banned from distributing its All-Star ballots in
     ballparks, and instead will run the promo in conjunction
     with 7-Eleven stores.  MLB execs say they are planning to
     sign another sponsor for in-stadium ballots (WALL STREET
     JOURNAL, 3/19).  ESPN's Bob Ley added that Pepsi's deal
     includes a contest winner throwing out the first pitch
     before Game of the World Series ("SportsCenter," 3/18).
          COKE SAYS NO THANKS? The JOURNAL's Fatsis adds that
     Coca-Cola "rejected" the chance to "lock up" MLB's national
     sponsorship as recently as last weekend.  Sources "familiar
     with the transaction" said the reason was that Coca-Cola
     "maintains its consumer research shows baseball fans only
     care about the game on a local level and don't respond well
     to the All-Star Game promotion" (WALL STREET JOURNAL, 3/19).
     
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