(Product) RED is one of the most successful case studies of cause marketing in today’s market. Co-founded by U2 singer and activist Bono and Bobby Shriver, (Product) RED joins with “iconic” brands to develop special RED versions of existing products (Apple iPods, Converse sneakers, etc). When the specialty-branded products are sold, a percentage of the profits are donated to The Global Fund to Fight AIDS. The campaign has already earned $36 million for The Global Fund, with more and more companies signing up to “go RED” every day. Much of this success can be attributed to the shrewd business plan at the base of (Product) RED. Bono and Shriver’s motivation wasn’t to form a new charity, but to create a steady flow of cash from the private sector. In order to ensure a sustainable income from for-profit businesses was to make certain that they would receive direct financial benefit from (Product) RED sales. Choosing to sell already popular items with a “cause” attached guaranteed increased purchases for participating companies.
Instead of attempting to revolutionize the playing field of a consumer culture, Bono and Shriver are simply playing the game. Assuming that cause marketing will be successful, they are in essence creating a win-win situation wherein the consumer’s emotional response results in a purchase that benefits both large corporations and The Global Fund. But what’s made (Product) RED so successful amidst a sea of other cause marketing agencies is the masterful branding of the (Product) RED brand. With appealing (RED) logos and a traffic-stopping color scheme, a (RED) product is easily identifiable by the contemporary shopper as a symbol of smart, charitable, and trendy spending. The most well-known RED ad campaign is for GAP, which features celebrities wearing t-shirts with prints such as DESI (RED) and EMPOWE (RED).
The choice of celebrity endorsement is initially confusing. Why not show pictures of AIDS patients in Africa? What do celebrities, whose spending habits are even more extravagant than the average American consumer, have to do with providing medical care to an impoverished nation? The answer is reasonably simple. For one thing, the average American consumer doesn’t want to look at AIDS patients dying in Africa. It’s depressing, and it makes them feel guilty. Celebrities have the opposite effect–they make consumers feel envious. So when America’s favorite faces are smiling from the covers of glossy magazines wearing Gap (RED) t-shirts, it solves two problems; consumer guilt is alleviated because they feel their luxury spending is making a difference, and superstar envy disappears because shoppers feel unified with celebrities in the fight against AIDS. The message is resoundingly positive–Famous people are talking to you! And they’re saying “You are a good person! Your life makes a difference, and you can make this this difference by spending your money! On products you’d be buying anyway!”
Congratulations, consumer. Stephen Spielberg has just let you off the hook.
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Hey nice information about RED which is one of the most successful case studies of cause marketing in today’s market.
AD Club Honors Co-Founder of Successful Global Marketing Initiative
New York, N.Y. – September 12, 2007 – The ADVERTISING Club today announced that it will honor Bobby Shriver, co-founder of (RED), with the 2007 Advertising Person of the Year award. (RED) has become the most well-known marketing effort of its kind, combining business and philanthropy, resulting in meaningful impact on the international stage. The award will be presented to Shriver on September 24th at the kick-off luncheon of ADVERTISING WEEK held at The Metropolitan Club in New York.
Caroline Kennedy will be present to celebrate the success of Bobby Shriver and (RED), and to present the Bobby Shriver Scholarship to a deserving undergraduate student pursuing a career in advertising. The scholarship is funded by the proceeds of the event which benefit the AD Club Foundation.
The Advertising Person of the Year event opens 2007 ADVERTISING WEEK. This year, the week-long agenda is underscoring the importance of corporate responsibility to social issues. For more information on this event, go to http://www.theadvertisingclub.org.
great points.
I’m writing my thesis paper for my graduate program on the criticisms of Product (Red). I think although yes, the campaign should be credited for at least trying to support a good cause, however they should also be recognized as continuing to be a far cry from their initial goal, which is to “eliminate AIDS in Africa”. The benefits that the companies associated with Product (Red) are receiving tremendously outweigh any benefit an AIDS victim is receiving, if any. More research into the logistics of the campaign should be made before Product (Red) can ever be labeled a “success”.