Pepsi IPL Campaigns: Sports-Led Brand Activation

Executive Summary

PepsiCo India has leveraged the Indian Premier League (IPL), one of the world's most-watched cricket tournaments, as a cornerstone of its brand activation strategy in India since the tournament's inception in 2008. Through title sponsorship, team ownership, player endorsements, and integrated marketing campaigns, Pepsi has utilized cricket's cultural significance in India to drive brand visibility and consumer engagement. This case study examines Pepsi's multi-faceted IPL strategy, analyzing the company's approach to sports marketing in one of its most critical global markets.

Background: PepsiCo in India and the Rise of IPL

PepsiCo's Indian Market Presence

PepsiCo entered India in 1989 and has established itself as a major player in the country's beverages and snacks market. According to PepsiCo's corporate information, the company operates across multiple categories including carbonated soft drinks, juices, bottled water, and snack foods through brands such as Pepsi, Mountain Dew, Tropicana, Aquafina, and Lay's.

India represents a strategically important market for PepsiCo globally. In an interview with Economic Times in 2019, former PepsiCo India President Ahmed ElSheikh stated that India was among PepsiCo's top five markets globally and represented significant growth potential given the country's population, rising middle class, and increasing consumption patterns.

The Indian Premier League Context

The Indian Premier League was launched in 2008 by the Board of Control for Cricket in India (BCCI) as a professional Twenty20 cricket league. According to BCCI announcements reported in multiple news outlets including The Hindu and Indian Express, the IPL was designed as a franchise-based tournament combining cricket with entertainment elements.

The IPL quickly became a massive cultural and commercial phenomenon. According to a BCCI statement reported by Press Trust of India in 2019, the IPL had achieved a brand valuation of $6.8 billion, making it one of the world's most valuable sporting properties. The tournament's viewership has consistently ranked among the highest for any sporting event in India, according to Broadcast Audience Research Council (BARC) data reported in various media outlets.

Cricket holds exceptional cultural importance in India, often described as more than a sport. According to analysis in Business Standard and Economic Times, cricket attracts viewership cutting across demographic segments including age, gender, geography, and socioeconomic status, making it particularly valuable for consumer brands seeking mass reach.

Pepsi's Initial IPL Engagement: Title Sponsorship (2013-2015)

Acquisition of Title Sponsorship Rights

In September 2012, PepsiCo acquired the title sponsorship rights for the IPL for five years (2013-2017) in a deal reportedly worth ₹396.8 crore (approximately $72 million at then-prevailing exchange rates), according to announcements reported by Economic Times, Hindu BusinessLine, and Press Trust of India.

According to these reports, the sponsorship agreement replaced the previous title sponsor, DLF Limited, and rebranded the tournament as the "Pepsi IPL." The deal represented one of India's largest sports sponsorship agreements at that time, according to analysis in Business Standard.

In statements to media outlets including Economic Times at the time of the announcement, PepsiCo India executives positioned the sponsorship as aligned with the company's strategy to connect with young, aspirational Indian consumers. The company stated that cricket and the IPL provided a platform to engage with millions of consumers during a concentrated period.

Activation During Title Sponsorship Period

During the title sponsorship period, Pepsi integrated its branding extensively throughout IPL broadcasts and stadium experiences. According to reports in afaqs! (an Indian advertising and marketing publication) and Campaign India, this integration included:

• On-field branding with "Pepsi IPL" logos prominently displayed

• Television broadcast integrations including sponsor mentions and branded segments

• Stadium branding across IPL venues

• Integration of Pepsi branding in official IPL communications and digital properties

Pepsi also developed advertising campaigns specifically tied to the IPL. According to Campaign India and afaqs!, these campaigns featured IPL players and themes designed to capitalize on tournament excitement and viewership.

One notable campaign during this period was the "Crash the Pepsi IPL" initiative. According to reports in afaqs! and Campaign India, this campaign invited fans to participate in contests for IPL-related prizes and experiences, aiming to deepen consumer engagement beyond passive viewership.

Early Termination of Title Sponsorship

In October 2015, PepsiCo and BCCI mutually agreed to terminate the title sponsorship two years before the contracted end date, according to announcements reported by Economic Times, Hindu BusinessLine, Reuters, and Press Trust of India.

According to an official statement from PepsiCo India reported in these outlets, the company said: "We have had a wonderful association with the IPL over the years and wish them all the very best for the future. We are focusing on innovating and working towards our portfolio priorities."

Various media reports, including in Economic Times and Business Standard, noted that the decision came amid broader challenges for beverage companies in India, including regulatory pressures related to health concerns about sugary drinks and operational challenges. However, no official statement from PepsiCo directly attributed the exit to specific factors beyond "portfolio priorities."

According to BCCI announcements reported in multiple outlets, Chinese smartphone manufacturer Vivo acquired the title sponsorship rights for 2016-2017 (later extended), replacing Pepsi.

Team Ownership: Punjab Kings (Formerly Kings XI Punjab)

Franchise Acquisition and Ownership Structure

In 2008, when the IPL launched, a consortium including Bollywood actress Preity Zinta, industrialist Ness Wadia (of Bombay Dyeing), industrialist Mohit Burman (of Dabur), and Karan Paul (of Apeejay Surrendra Group) acquired the Mohali-based franchise, according to reports in The Hindu, Times of India, and Indian Express.

According to multiple media reports including Economic Times and Business Standard, Mohit Burman held connection to PepsiCo through his family's association with Varun Beverages Limited (VBL), one of PepsiCo's largest bottling partners globally and the largest in India. However, the franchise ownership structure involved multiple stakeholders beyond PepsiCo-affiliated individuals.

The team was initially named "Kings XI Punjab" and later rebranded to "Punjab Kings" in 2021, according to official team announcements reported by ESPN Cricinfo and Indian Express.

Pepsi Branding Through Team Association

While the ownership structure was complex and not solely PepsiCo-controlled, the team's association with Burman (connected to PepsiCo's bottling ecosystem) created branding opportunities. According to reports in Campaign India and afaqs!, Kings XI Punjab jerseys featured sponsor branding that periodically included PepsiCo brands, though specific sponsorship arrangements varied by season.

No verified public information is available on the detailed financial arrangements between PepsiCo corporate entity and the franchise ownership group, or the extent of PepsiCo's direct involvement in franchise operations.

Celebrity Endorsements: Cricket Players and IPL Stars

Mahendra Singh Dhoni Partnership

One of PepsiCo's most significant cricket-related brand partnerships has been with Mahendra Singh Dhoni, former captain of the Indian cricket team and captain of Chennai Super Kings in the IPL. According to reports in Economic Times, Business Standard, and Campaign India, Dhoni has endorsed Pepsi products for over a decade, representing one of India's longest-running celebrity-brand partnerships.

Dhoni's association with Pepsi predates the IPL but intensified alongside the tournament's growth. According to Campaign India and afaqs!, Pepsi featured Dhoni prominently in advertising campaigns, particularly during IPL seasons when his visibility peaked due to his on-field prominence.

In a 2019 interview with Economic Times, a PepsiCo India spokesperson stated that Dhoni's "connect with the youth and his mass appeal across the country" made him an ideal brand ambassador for Pepsi. The spokesperson noted that Dhoni represented qualities of performance, leadership, and composure that aligned with brand values.

Virat Kohli and Other Cricket Stars

PepsiCo has also partnered with other prominent cricket figures. According to reports in Economic Times, Hindu BusinessLine, and Campaign India, cricketer Virat Kohli (captain of Royal Challengers Bangalore in IPL and former captain of the Indian national team) has endorsed PepsiCo brands including Pepsi and Gatorade at various points.

According to these media reports, PepsiCo's endorsement portfolio has included multiple IPL players across different teams, allowing the company to maintain brand visibility regardless of which teams performed well in any given season.

No verified public information is available on specific contract terms, duration, or financial arrangements of these endorsement deals, as such information is typically confidential.

Integrated Campaign Strategies

"Har Ghoont Mein Swag" Campaign (2019)

In 2019, Pepsi launched the "Har Ghoont Mein Swag" (Swag in Every Sip) campaign in India, timed to coincide with the IPL season. According to reports in Campaign India, afaqs!, and Brand Equity (Economic Times), the campaign featured celebrities including Salman Khan, cricketer Virat Kohli, and other personalities.

According to a PepsiCo India statement reported in Campaign India, the campaign aimed to connect with young consumers through the concept of "swag" (confidence and style), positioning Pepsi as a brand for those who express themselves boldly. The campaign's timing during IPL season was designed to capitalize on peak viewership and cultural attention around cricket.

The campaign included television commercials, digital content, outdoor advertising, and retail activations, according to reports in afaqs! and Campaign India. According to these reports, the multi-channel approach aimed to reach consumers across touchpoints during the high-engagement IPL period.

"Pepsi Mood" Campaign (2021)

In 2021, Pepsi launched the "Pepsi Mood" campaign in India, according to reports in Campaign India and Brand Equity. The campaign, which ran during the IPL season, featured merchandise and packaging tied to different moods and expressions.

According to a PepsiCo India statement reported in Campaign India, the campaign aimed to connect with consumers through personalization and self-expression themes. The timing during IPL season again reflected Pepsi's strategy of using the tournament period for major campaign launches when consumer attention and media consumption peaked.

"#HarGhoonMeinDhoom" and Cricket Integration

According to reports in afaqs! and Campaign India, PepsiCo has consistently developed campaigns specifically designed to activate during IPL seasons, using cricket themes, player endorsers, and tournament timing to maximize impact.

These campaigns typically featured television commercials aired during IPL broadcasts, digital content distributed across social media and streaming platforms carrying IPL content, and retail activations in stores during the tournament period, according to marketing trade publications.

On-Ground Activations and Consumer Engagement

Retail and Point-of-Sale Integration

During IPL seasons, PepsiCo has implemented retail activations designed to drive purchase and engagement at the point of sale. According to reports in afaqs! and Campaign India, these activations have included:

• Special IPL-themed packaging for Pepsi products

• In-store displays and promotional materials featuring cricket imagery and endorsed players

• Contest mechanisms where consumers could win IPL-related prizes

According to a case study published by the Advertising Standards Council of India (ASCI) and reported in marketing publications, PepsiCo coordinated these retail activations with broadcast campaigns to create integrated touchpoints during the tournament period.

Digital and Social Media Engagement

PepsiCo has utilized digital platforms to extend its IPL-related engagement beyond traditional media. According to reports in afaqs!, Campaign India, and Social Samosa (an Indian digital marketing publication), Pepsi's digital activations during IPL seasons have included social media content, influencer partnerships, and digital contests.

However, no verified public information is available on specific engagement metrics, reach figures, or performance data from these digital campaigns, as companies typically do not publicly disclose such detailed campaign analytics.

Strategic Rationale: Why IPL for Pepsi?

Mass Reach and Concentrated Attention

The IPL provides advertisers with exceptional reach during a concentrated time period. According to BARC data reported in Business Standard and Economic Times, IPL broadcasts consistently rank among India's highest-rated television programming, attracting hundreds of millions of viewers across the tournament's approximately two-month duration.

For a mass-market brand like Pepsi, which targets broad demographic segments, the IPL's ability to deliver large, diverse audiences makes it strategically valuable. According to analysis in Business Standard, the tournament's appeal across urban and rural areas, across age groups, and across income segments aligns well with Pepsi's market positioning.

In an interview with Brand Equity in 2018, a PepsiCo India marketing executive stated that IPL provided "unparalleled reach and frequency" during the tournament period, allowing the company to build brand awareness and preference during a period of high consumer engagement and media consumption.

Association with Youth and Energy

Cricket, particularly the Twenty20 format of the IPL with its fast-paced, entertainment-oriented approach, is strongly associated with youth culture in India. According to market research firm Nielsen's reports cited in Economic Times and Business Standard, IPL viewership skews toward younger demographics compared to other cricket formats.

PepsiCo has consistently positioned its cola brands toward younger consumers. According to statements in various Campaign India and afaqs! reports, Pepsi's marketing strategy emphasizes youth, energy, boldness, and contemporary culture—attributes that align with the IPL's brand positioning and audience profile.

Competitive Context

The IPL also represents a competitive battleground among beverage brands. According to reports in Business Standard and Economic Times, rival Coca-Cola has also invested in IPL-related marketing, creating a context where presence in the IPL ecosystem serves both offensive (building brand preference) and defensive (preventing competitive advantage) purposes.

According to analysis in Brand Equity, consumer packaged goods categories like beverages benefit from visibility during major sporting events because consumption occasions (watching matches with friends/family) often involve product usage, creating opportunities for purchase influence during high-engagement moments.

Challenges and Strategic Shifts

Title Sponsorship Exit and Strategy Evolution

Pepsi's 2015 exit from IPL title sponsorship, two years before contract completion, represented a significant strategic shift. According to reports in Economic Times and Business Standard at the time, industry observers noted that the decision likely reflected cost-benefit analysis of the title sponsorship's value relative to its cost.

According to a statement from PepsiCo India reported in multiple outlets, the company emphasized it was "focusing on innovating and working towards portfolio priorities," suggesting a reallocation of marketing investments rather than a complete exit from cricket or sports marketing.

Following the title sponsorship exit, Pepsi maintained IPL engagement through player endorsements and campaign activations, according to subsequent reports in Campaign India and afaqs!. This suggested a shift from tournament-level sponsorship to more targeted, campaign-specific activations.

Regulatory Environment and Health Concerns

During the period of Pepsi's IPL involvement, beverage companies in India faced increasing regulatory scrutiny regarding sugary drinks and their health impacts. According to reports in Economic Times, Hindu BusinessLine, and Business Standard, various Indian states implemented or proposed taxes on sugary beverages, restrictions on school sales, and warning label requirements.

While PepsiCo did not publicly attribute any specific IPL strategy decisions to regulatory factors, the broader context of health concerns about carbonated soft drinks represented a backdrop against which all marketing investments were evaluated, according to industry analysis in business publications.

Pandemic Impact on IPL and Marketing Strategies

The COVID-19 pandemic significantly affected the IPL, with the 2020 tournament postponed and eventually held in the UAE without spectators, and the 2021 tournament suspended mid-season before completion in the UAE, according to BCCI announcements reported in Indian Express, Hindu, and ESPN Cricinfo.

According to reports in Campaign India and afaqs!, brands including PepsiCo adapted their IPL marketing strategies during pandemic-affected seasons, with increased emphasis on digital engagement and home consumption messaging given the absence of stadium experiences and changes in viewing contexts.

No verified public information is available on how pandemic-period IPL seasons specifically affected Pepsi's campaign performance or return on investment.

Comparative Context: Sports Marketing in India

Cricket's Dominance in Indian Sports Marketing

The IPL represents the premium property within cricket marketing, but cricket more broadly dominates India's sports marketing landscape. According to reports by GroupM (WPP's media investment arm) cited in Economic Times and Business Standard, cricket accounts for the majority of sports sponsorship spending in India, far exceeding other sports.

According to a 2019 report by consulting firm Houlihan Lokey cited in Business Standard, cricket represented approximately 87% of the total sports market in India in terms of sponsorship and media rights value. This concentration makes cricket, and particularly IPL, almost obligatory for brands seeking sports-based mass marketing in India.

Evolution of PepsiCo's Sports Marketing Portfolio

Beyond cricket, PepsiCo has engaged with other sports properties in India, though at different scales. According to reports in Economic Times and Campaign India, PepsiCo has at various times been involved with football properties and other sports, but cricket has remained the primary sports marketing focus given its audience reach.

Globally, PepsiCo maintains significant sports marketing investments including long-term relationships with the UEFA Champions League, NFL, and various other properties, according to company announcements. The India market's emphasis on cricket reflects local market dynamics rather than a company-wide sports strategy template.

Outcomes and Brand Impact

Brand Visibility Metrics

While specific brand tracking data is typically proprietary and not publicly disclosed, some third-party assessments of IPL sponsorship value have been reported. According to a report by sports marketing analytics firm SportzPower cited in Business Standard and Economic Times, IPL provides sponsors with significant media exposure value based on on-screen brand visibility during broadcasts.

According to reports in afaqs! and Campaign India, marketing executives from various companies including PepsiCo have stated in general terms that IPL delivers strong brand recall and awareness metrics, though specific data points are not publicly available.

Market Position Maintenance

PepsiCo has maintained significant market presence in India's beverage category throughout the period of its IPL involvement. However, attributing market performance specifically to IPL marketing versus other factors (product portfolio, distribution, pricing, overall marketing mix) is not possible based on publicly available information.

According to various market research reports cited in Economic Times and Business Standard, the Indian carbonated soft drinks market has experienced relatively modest growth in recent years, with competition between PepsiCo and Coca-Cola remaining intense. Both companies have invested heavily in marketing including sports properties.

Current Status and Recent Developments

Ongoing IPL Engagement

As of the 2024 IPL season, PepsiCo continues to engage with the tournament through various means, according to reports in Campaign India and afaqs!. While no longer the title sponsor, the company maintains presence through player endorsements, team associations, and campaign activations timed to the tournament.

According to recent reports in Campaign India, Pepsi launched IPL-specific campaigns in recent seasons, indicating continued strategic value placed on the tournament despite the earlier exit from title sponsorship.

Broader Portfolio Approach

PepsiCo India's current approach appears to emphasize its broader product portfolio rather than focusing solely on the Pepsi cola brand. According to reports in Economic Times and Brand Equity, recent IPL-related marketing has included other PepsiCo brands such as Lay's snacks, reflecting the company's evolution toward multi-brand activation strategies.

In statements to Economic Times in 2022, PepsiCo India executives indicated that the company views the IPL as a platform for portfolio-wide marketing rather than single-brand focus, capitalizing on the tournament's association with consumption occasions (snacking while watching matches) across multiple product categories.

Strategic Lessons and Analysis

Sports Property Selection and Commitment Levels

PepsiCo's IPL journey illustrates the complexity of sports marketing property selection and the different levels of commitment available. The company's movement from title sponsorship to more targeted activations demonstrates that brands can remain engaged with sporting properties at various investment levels depending on strategic priorities and budget allocation.

According to sports marketing experts quoted in Business Standard and Campaign India, title sponsorships provide maximum visibility but require substantial investment and long-term commitment, while player endorsements and campaign-specific activations offer flexibility with potentially lower but still significant investment requirements.

Cultural Alignment and Local Market Adaptation

PepsiCo's emphasis on IPL in India reflects appropriate adaptation to local market conditions where cricket holds unique cultural significance. According to analysis in Economic Times and Business Standard, successful multinational marketing often requires adapting global brand platforms to local cultural contexts and media consumption patterns.

The IPL's combination of sport and entertainment aligns with PepsiCo's global positioning around youth culture and contemporary lifestyle, according to company statements in various publications, while the cricket-specific execution reflects Indian market realities.

Integration Across Marketing Mix

PepsiCo's IPL strategy illustrates integration across multiple marketing elements: sponsorship properties, celebrity endorsements, advertising campaigns, retail activations, and digital engagement. According to marketing analysis in afaqs! and Campaign India, this integrated approach aims to create multiple consumer touchpoints during the high-engagement tournament period, potentially amplifying impact beyond any single marketing element.

Flexibility and Portfolio Rebalancing

The decision to exit title sponsorship while maintaining other forms of IPL engagement demonstrates strategic flexibility in marketing investment allocation. According to statements reported in Economic Times, PepsiCo emphasized "portfolio priorities," suggesting ongoing evaluation of marketing investment effectiveness and willingness to reallocate resources based on changing assessments.

This approach reflects marketing resource management principles where companies continuously assess whether specific investments justify their costs relative to alternative uses of marketing budgets, according to marketing strategy frameworks discussed in business publications.

Conclusion

PepsiCo's engagement with the Indian Premier League since 2008 represents a sustained, multi-faceted sports marketing strategy adapted to one of the company's key global markets. Through title sponsorship, team ownership connections, player endorsements, and integrated campaigns, PepsiCo has utilized cricket's cultural significance and the IPL's massive reach to maintain brand visibility and consumer engagement in India's competitive beverage market.

The evolution of this strategy—from title sponsorship to more targeted activations—illustrates both the enduring value PepsiCo places on cricket-based marketing and the company's willingness to adjust investment levels based on changing priorities and market conditions. The IPL remains a significant platform for PepsiCo India's marketing efforts, though approached with different tactical execution than in earlier years.

The case demonstrates how global consumer brands adapt marketing strategies to local market conditions, leverage cultural properties for brand building, and continuously evaluate and adjust major marketing investments based on strategic priorities and cost-benefit assessments.

MBA-Level Discussion Questions

1. Sports Property Investment Levels and ROI Assessment: PepsiCo moved from IPL title sponsorship to more targeted activations (player endorsements, campaign-specific marketing) after exiting the title sponsorship two years early. What frameworks should marketing executives use to evaluate the appropriate investment level in sports properties? How should companies assess whether title sponsorship, team sponsorship, player endorsements, or campaign activations provide optimal return for specific brand objectives, and what factors might cause the optimal choice to change over time?

2. Local vs. Global Marketing Strategy Balance: PepsiCo's heavy emphasis on cricket and IPL in India contrasts with its sports marketing portfolio in other markets where cricket has limited relevance. How should multinational corporations balance global brand consistency with local market adaptation in sports marketing? What criteria should determine when local market conditions justify significant deviation from global marketing templates, and how should companies ensure local adaptations don't dilute global brand equity?

3. Celebrity Endorsement Portfolio Management in Sports Marketing: PepsiCo maintains endorsement relationships with multiple cricket players across different IPL teams. What are the strategic advantages and risks of endorsing multiple athletes within the same sport and league versus concentrating investment on fewer, higher-profile athletes? How should brands manage potential conflicts when endorsed athletes compete against each other, and how should endorsement portfolios be structured to maintain brand presence across different competitive outcomes?

4. Cost-Benefit Analysis of Exiting Long-Term Sponsorships: PepsiCo's early exit from its five-year IPL title sponsorship raised questions about the initial decision-making and subsequent reassessment. What processes should companies implement to avoid committing to long-term sponsorships that they later exit prematurely? How should marketing executives balance the benefits of long-term commitment (relationship building, consistency) against the need for flexibility to respond to changing market conditions, and what contract provisions might provide appropriate exit flexibility?

5. Measuring Sports Marketing Effectiveness for Mass-Market Brands: PepsiCo operates in a highly competitive, mass-market category where isolating the specific impact of IPL marketing from other marketing activities and competitive actions is methodologically challenging. What measurement frameworks and metrics should companies use to assess sports marketing effectiveness when direct attribution is difficult? How should marketing executives build the business case for continued investment in sports properties when precise ROI measurement is unavailable, and what role should qualitative factors (brand perception, competitive dynamics) play in investment decisions alongside quantitative metrics?