Beyonce and PepsiCo Strike “Collaborative” Deal

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pepsi strikes deal with BeyonceBeyonce’s next album, due out in 2013, is expected to get a promotion boost. The singer has just signed on to a $50 million deal with PepsiCo, reminiscent of her husband Jay-Z’s “Decoded” book deal that was promoted via Microsoft. According to a case study led by a Harvard professor, the publishing company that put out his book laid out $50,000 and Microsoft went the extra mile with a cool $2 million.      

The deal PepsiCo made with Beyonce will include the standard perks such as advertising, but will include a multi-million dollar fund to support a number of her other projects. For example, it will sponsor her 2013 Super Bowl halftime performance. The arrangement goes beyond the typical celebrity endorsement deal; it is of a collaborative nature. Basically, PepsiCo has chosen to be “in the Beyonce business” so to speak. Said Brad Jakeman, president of PepsiCo’s global beverage group, “Consumers are seeking a much greater authenticity in marketing from the brands they love. It’s caused a shift in the way we think about deals with artists, from a transactional deal to a mutually beneficial collaboration.”     

Read more at The New York Times.