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Sony Music, Pepsi Forge Multifaceted Global Marketing Campaign

Sony Music Entertainment and Pepsi-Cola North America have entered into an unprecedented multifaceted, global marketing campaign that will span the worlds of radio, television and retail.

Beginning next summer in the United States, there will be nationwide radio advertising for Pepsi brands featuring "sneak previews" of songs from key SME artists, as well as a series of Pepsi-sponsored TV specials showcasing select SME artists. The campaign will include co-branded sales efforts at non-music retail outlets across the country, providing a dramatically expanded distribution platform for SME releases and unique cross-merchandising programs for Pepsi retail customers.

Internationally, there will be a variety of innovative, co-branded marketing initiatives to maximize visibility for established SME artists and introduce new artists throughout the world.

"Pepsi's long track record of successfully blending music with their message made the company the natural choice for this one-of-a-kind co-branding campaign," commented Tommy Mottola, president/CEO of Sony Music Entertainment.

"I have every confidence that the three-part strategy of early awareness through radio exposure, maximum exposure through television specials and superior point-of-purchase placement at non-music retail outlets will give our releases and artists a significant advantage in the North American marketplace. Internationally, SME and Pepsi already have joined forces on Shakira's worldwide concert tour, and we look forward to expanding the effort to include a broad array of established and emerging artists."

"Nothing connects with young people like music and, with its dedicated focus on developing the very best artists from around the world, no one is better suited to help us intensify that connection than Sony Music," said Pepsi-Cola North America president Dawn Hudson. "Music is an integral part of the Pepsi experience. In creative exchange with SME, we're unlocking our respective assets to make this campaign resonate like no other in the marketplace."

"Our involvement with Sony Music and their artists has been a real win for Pepsi brands over the years, and this next step is a natural extension," said Antonio Lucio, chief marketing officer, PepsiCo Beverages International. "Having worked with Shakira internationally since 1999, we've been successful in making SME artists a key part of Pepsi's music programs to better connect music fans with their heroes and us."

While specific details are in development, preliminary elements of the Sony Music Entertainment and Pepsi campaign are as follows:

* In advertisements to run on radio stations across the United States,
Pepsi will provide music fans with "sneak previews" of key SME artists'
songs prior to their debut at radio, creating heightened levels of
anticipation for the relevant songs and releases.

* Pepsi also will sponsor a series of music television specials, which
will include performances from both superstar and emerging SME artists.

* Co-branded point-of-purchase displays offering Pepsi products and SME
CDs will be installed in high-traffic areas of non-music retail outlets
in the United States, effectively positioning music product as a
high-value impulse buy.

* As with Pepsi's sponsorship of Shakira's worldwide tour, SME and Pepsi
will collaborate on a variety of innovative campaigns designed to
maximize exposure for both Pepsi brands and SME artists in markets
around the world.