Product (Red)
I think the idea of product red sounds great, however I think it is difficult to know with each product how much the company is actually gaining. For example, with the apple products, if the price is raised, and then the percentage that is higher ends up going to donations, it is hard to see how ipod is actually losing anything. With a raised price, they really aren’t giving away any money, the customers are just paying a higher price for a red product. Some of the companies participating in Product (red) might be giving sufficient amounts, it is just difficult to tell which business are giving legitimate amounts and which ones are using Product (red) as a marketing strategy. I think this gray area makes it difficult to tell what is right and what is pushing the limit a little bit too much.
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There is a great video below that explains a lot about how Product (RED) works – it answers a lot of questions that you have and some that you may not have expressed yet. (RED) money goes directly the the Global Fund, and all of these companies have been approved by the (RED) team along with Bobby Shriver and Bono – I would find it very hard to believe that these companies would use it strictly as a marketing strategy. However, with that said, part of it has GOT to be a marketing strategy – that is, in order to make these products (and the funds going to the Global Fund)sustainable, there has to be a demand from consumers. Since (RED) is a business model and not a 501-3(c) charity, it is able to do this completely legally and necessarily. Anyway, hope the video helps!
http://www.cnbc.com/id/15840232?video=640851847&play=1