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Product Red
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Product Red is a brand licensed to partner companies such as American Express, Apple Inc., Starbucks, Converse, Motorola, Gap, Emporio Armani, Hallmark, Microsoft, and Dell. It is an initiative begun by U2's frontman, Bono, and Bobby Shriver of DATA to raise money for the Global Fund to Fight AIDS, Tuberculosis and Malaria. Bobby Shriver has been announced as the CEO of Product Red, whilst Bono is currently an active public spokesperson for the brand.
Each partner company creates a product with the Product Red logo.
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Encyclopedia
Product Red is a brand licensed to partner companies such as American Express, Apple Inc., Starbucks, Converse, Motorola, Gap, Emporio Armani, Hallmark, Microsoft, and Dell. It is an initiative begun by U2's frontman, Bono, and Bobby Shriver of DATA to raise money for the Global Fund to Fight AIDS, Tuberculosis and Malaria. Bobby Shriver has been announced as the CEO of Product Red, whilst Bono is currently an active public spokesperson for the brand.
Each partner company creates a product with the Product Red logo. In return for the opportunity to increase their own revenue through the Product Red products they sell, a percentage of the profit is given to the Global Fund.
Guiding principles
Product Red states that its main principles are:
- To expand opportunities for the people of Africa
- To respect its employees and ask its partners to do the same with their employees and the people who help make their products or deliver their services
- To promote HIV/AIDS workplace policies and practices
- To see the power of a community mobilized for hope, health and progress
- To ask its partners to uphold the same principles
Products
Products include:
- American Express Red Card.
- Gap is selling an ongoing line of merchandise ranging from T-shirts, jackets, scarves, gloves, jewelry, bags and purses. Gap donates 50% of all Product Red profits directly to the Global Fund. As of March 1, 2009, Gap had raised over $45 million for the Global Fund.
- Converse is selling a shoe made from African mud cloth.
- Giorgio Armani has announced a line of Emporio Armani products that include clothes, jewelry, perfume, and accessories.
- Motorola has announced special editions of their SLVR, KRZR and RAZR mobile phones, with a 50% profit of each purchase going to the Global Fund. The Red RAZR was first launched with service by Sprint in November 2006.
- The Independent newspaper is in partnership with Product Red.
- The Hotel Café tour is presented by MySpace and Product Red.
- Apple Inc. has released three generations of special edition iPod nano and the iPod shuffle with a Product Red theme, as well as a Red $25 iTunes Gift Card.
- NEED magazine is in partnership with Product Red.
- Hallmark has introduced greeting cards that are Product Red.
- Dell has released three computers (M1330, M1530 and XPS One) and one printer (V505 All-In-One) that are Product Red; the contract will last for 3 years as of Jan 2008.
- Microsoft and Dell have teamed up to offer a new Dell laptop that included a new Windows Vista SKU called Windows Vista Ultimate (Product) Red.
- Windows Vista Ultimate (Product) Red SKU includes; 6 wallpapers, 2 sidebar gadgets, 1 screen saver and 1 DreamScene movie
- Girl Skateboard Company has released a two-part deck series with a (Product) Red graphic. A share of the profit goes to the charity.
- Starbucks is participating during their 2008 holiday promotion. For every holiday beverage ordered, 5 cents will go to Product Red.
Criticism
Product Red has been criticized for not having an impact proportional to the advertising investment, for being much less efficient than direct charitable contribution and for having a lack of transparency with regards to the amount of money going to charity as a percentage of every purchase. Some critics argue that a retail middleman between donor and charity is unnecessary; donors should just give. Another critique is that Product Red's expansion into traditional fundraising techniques, such as art auctions, undermines its claim to be a different and more sustainable approach to raising money for AIDS. Other critics have pointed out that its emphasis on funding treatment for AIDS sufferers meant that large amounts of the money will ultimately end up with pharmaceutical companies. Many accuse the campaign of profiting by using diseases as a marketing vehicle. In the Stanford Social Innovation Review, Mark Rosenman wrote that it was an "example of the corporate world aligning its operations with its central purpose of increasing shareholder profit, except this time it is being cloaked in the patina of philanthropy."
The National Labor Committee for Worker and Human Rights criticised Product Red for its links with Gap, which was historically a target of anti-sweatshop activists, although anti-sweatshop organisation Labour Behind the Label states that Gap has "come further than many" clothing companies to counter exploitation. Gap's Product Red clothes are made in Lesotho rather than simply for the best price in China (this goes beyond the requirements of Product Red). Labour Behind the Label criticises Product Red for not requiring more measures to protect the rights of the workers who make their products.
Data released by Advertising Age claims retail participants in Product Red including Gap, Motorola and Apple, Inc. have invested $100 million in advertising and raised only $18 million for The Global Fund. Apple donated $10 of the sale of their $149 iPod during the initial stages of the campaign, and no longer discloses how much it donates. Product Red states on their website that they donate "up to" half of their gross profits.
Timeline
| Launch Date | Product Type | Partner | Product Name | Description | Amount donated to Global Fund (US$) | MSRP (US$) |
|---|
| January 26 2006 | Launch | WEF | Announcement | (Product) Red initiative first announced at the World Economic Forum in Davos, Switzerland. The Global Fund identifies Rwanda as the first country to receive funding from (Product) Red. | | | | March 1 2006 | Credit Card | American Express | American Express Red | American Express Red Card launched in the UK. Only UK residents with UK bank accounts are eligible. | 1% of total spend. Up to 1.25% after spend over £5,000. | No annual fee for life. Typical 16.9% APR variable. | | March 15 2006 | Clothing | Gap | Gap Red | Launch party in London for the Gap line with 22 page feature in the April issue of Dazed & Confused magazine. | 50% of profits from sales of Product Red items | | | April 3 2006 | Fashion accessory | Giorgio Armani | Emporio Armani sunglasses | Metal wrap-around sunglasses (style EA 9285/S) launched worldwide. Available in green, rose, blue, smoke grey, grey and brown, all embossed with the Emporio Armani Red logo. The forked frame arms, available in shades of ruthenium, gunmetal and light gold, are superimposed on the single lenses. | 40% of gross profit margin from sales of all Emporio Armani Red products directly to the Global Fund. | | | April 3 2006 | Shoes | Converse | Mudcloth shoes | Converse (Product Red) limited edition Mudcloth trainers, designed by Giles Deacon, are available in the UK and US. | 5 - 15% of Net wholesale price | Starting from $60 | | May 15 2006 | Mobile phone | Motorola | Red Motorola SLVR | Red Motorola SLVR L7 launches in the UK | £10 & 5% of every bill | $249.99 | | May 15 2006 | Newspaper | The Independent | | Bono edits the UK's Independent newspaper for the day, featuring a distinct red print. | 50% of day's revenues. | | | August, 2006 | Fashion watches | Giorgio Armani | Emporio Armani watch | Giorgio Armani’s second Red product is an Emporio Armani unisex watch (style AR0537/AR0538). It features a large 43 mm stainless steel case with a coin-ridged bezel, a leather strap available in black with red contrast stitching, or vice-versa, and steel rivets that secure the strap to the case. The large digital dial displays the time in oversized numerals and has calendar, chronograph and timer features with push button controls on the side of the case. The dial also features the Emporio Armani Red logo at 12 o’clock printed onto the dial’s outer ring. | 40% of gross profit margin (see sunglasses) | $225 | | September 21 2006 | Newspaper | The Independent | | The Independent printed its second (Product) Red special edition, guest-designed by Giorgio Armani. This Red edition includes articles from a host of public figures and celebrities including George Clooney, Bill Gates, Leonardo DiCaprio and Beyoncé. The newspaper's daily features section, Extra, is a 36-page magazine for the day and each paper comes with a free Kate Moss poster. All revenue from online sales will be donated to help fight AIDS in Africa. | All revenue from online sales. | | | November 2006 | Mobile phone | Motorola | Red Motorola RAZR | Sprint PCS launches the Red Motorola RAZR in the United States | $17 | $259.99 | | January 9 2007 | Stored-value card | Apple Inc. | iTunes (Product) Red Gift Card | Gift card for purchases at Apple's iTunes online store, for movies, TV shows or music. Currently only available in the US at Apple's online store. | 10% ($2.50) | $25 | | June 2007 | Magazine | Vanity Fair | | Bono edits the issue of the magazine, title "The Africa Issue", which features a wide array of celebrities dedicated to issues in Africa (including Barack Obama, Muhammad Ali, Queen Rania Al-Abdullah, Bono, Condoleezza Rice, President George W. Bush, Archbishop Desmond Tutu, Brad Pitt, Djimon Hounsou, Madonna, Maya Angelou, Chris Rock, Warren Buffett, Bill Gates, Melinda Gates, Oprah Winfrey, George Clooney, Jay-Z, Alicia Keys, Iman Abdulmajid, and Don Cheadle.) on a total of twenty different covers. | $5 of every subscription to Vanity Fair sold. | | September 7 2007 | MP3 player | Apple Inc. | iPod nano, iPod shuffle (Product) Red Special Edition | (Product) Red is available with the 1GB and 2GB iPod Shuffle, and the 8GB and 16GB iPod nano, which are only available at the Apple Store, and the Apple Store website. | $10 (Nano) | shuffle $49(1GB), $69(2GB); nano $149(8GB), $199(16GB) | | January 24 2008 | Computers/Operating system | Dell Inc. + Microsoft Corporation | XPS One, XPS 1330, XPS 1530, and AIO 948 Printer (Product) Red Special Edition; All computers include Windows Vista Ultimate (RED) | (Product) Red is available with the XPS One (80 dollar donation), XPS 1330 (50 dollar donation), XPS 1530 (50 dollar donation), and the AIO 948 (5 dollar donation) | 80.00, 50.00, or 5.00 | XPS One starting off at $1599, XPS 1330 and XPS 1530 starting at $1,149 and AIO 948 starting at $99 | | | November 11 2008 | [Digital audio player|MP3 player | Apple Inc. | iPod nano (Product) Red Special Edition | Apple announces new iPod nano 4th generation (Product) Red | N/A | Apple iPod nano starts off at $149 at 8GB, then an upgrade to 16GB cost $199 | | November 27 2008 | Beverages | Starbucks | (STARBUCKS)RED Exclusive beverages | RED exclusive beverages consist of Starbucks holiday beverage options including Peppermint Mocha Twist, Gingersnap Latte, and Espresso Truffle | $0.05 from every (STARBUCKS)RED Exclusive beverage sold through January 9, 2009. | |
See also
External links
Official links
- USF MBA Podcast, 25 February 2007
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Critiques
- CBS News, 17 October 2006
- Spiked Online, 28 September 2006
- Advertising Age, 5 March 2007 (registration required)
- (rebuttal of Ad Age article) The Independent, 19 August 2007
- Newsweek, 14 March 2007
Alternative campaigns
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