Pakistan cricket sponsor Pepsi stays put in troubled times

Repercussions of fresh allegations of spot-fixing by Pakistani cricket stars are certain to be felt beyond the immediate world of sports - especially for sponsor Pepsi.

With members of the Pakistani team in the dock, will Pepsi believe its sponsorship is now tainted? The brand has already cancelled all national newspaper advertising because of the negative impact.

Sponsorship specialists have warned that the scandal could directly effect revenues if not properly dealt with by the International Cricket Council. 

Boom Boom, manufacturer of Pakistan’s cricketing apparel, has already distanced itself from the three players at the heart of the storm. Currently forced to play its games overseas, Pakistan cricket needs sponsor support more than ever - at a time when its performance and reputation has hit new lows.

Brand health diagnosis

Zubbair Siddiqui, associate planner at Ogilvy & Mather Pakistan:

This is the most recent in a series of blows to Pakistani cricket. Pepsi, after a series of dismal performances by the Pakistan team, has reduced itself to utilising just one star out of the entire team line-up. But that player, 18-year-old bowler Muhammad Amir, is now one of the suspended players being investigated by Scotland Yard. The scandal broke in an English newspaper during the month of Ramadan when Pepsi had been running a successful consumer promotion. It is also worth noting that, during the T20 World Cup in May, the company had experimented with owning stadium stands, a strategy rival Coke implemented in 2007.

While Dabur Hajmola, a digestive tablet brand, is said to be sticking with Shahid Afridi, the ex-Pakistani captain, seemingly unfazed by the scandal, Habib Bank had already rolled back its endorsement campaign, switching its platform to football during the World Cup 2010. 

It will be interesting to watch how brands react this month during the Pakistan vs South Africa series. 

What makes this all the more interesting is that the scandal to date has had the opposite effect on passionate Pakistani cricket fans.

Instead of the ritual protests and burnt effigies of players in times of turmoil, the fans have rallied behind the accused players and proclaimed their innocence.

Sarwar Khan, managing director of Maxus Pakistan:

Even though cricket is not Pakistan’s national sport, it’s followed like a religion.

When the team is doing well we are all praise for the players - of course when it’s not, the opposite is true. 

Nobody watches anything else when the cricket is on and this mass public involvement in the game has attracted many mainstream brands to sponsor cricket players.

As a result, estimated media spend during the broadcast of cricket matches is at an all-time high, and player sponsorships are among the most expensive anywhere. 

But the recent betting scandal has rocked the boat and the implicated players have already lost sponsorship deals worth millions of Rupees. 

This scandal has tainted players in particular and cricket as a sport in general. Present and potential sponsors are now sceptical and uncertain about their future course of action.

Despite all this, media adspend during up-coming matches has not decreased. While individual sponsorships may suffer in the short-term, long-time cricket team and individual player sponsor, Pepsi has expressed solidarity with the Pakistan team in these tough times, and says it will continue its sponsorship in future.

This article was originally published in the October 2010 issue of Campaign Asia-Pacific.