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.

Product (Red), product prices

Of all the conversation on product (red) today, one thing that the whole class seemed to agree on was that raising the price for a product red product was unjustifiable. I don’t think that the class considered that the company might have some costs associated with selling product red products. Obviously there is a different color to most of these products but some incorporate the product red logo too. Even these simple changes cost a lot in production costs. I think that some of these companies are obviously just chasing sales, but some companies might really have justification for raising prices of their product red products

Product (Red)

I am going to play devil’s advocate, not only because I like to stir things up, but because I think there is a hidden issue to this whole Product (Red) idea. As I was walking home from class, this thought occured to me: isn’t it convienent how these red items are all name brand items? These products you can purchase to help all “happen” to be Armani and Apple- basically nothing anyone finds at your local Kmart that is for sure! My question to that is, does this mean Product (Red) understand that they had to team up with the “best” companies in order to reel in consumers? I think so, because everyone knows how materialistic this society is! Now consumers can feel better about spending that $300 on a pair of Armani sunglasses because some of that purchase is going to help people in Africa…and I would dare to say they are more persuaded to give into their “primal” buying urges because Product (Red) is showing you how important it is to donate to their cause.

Does this make the Product (Red) a sham then? Honestly, as I have said in class, I am not against this type of fundraising. Granted there are quite a few selfish motives to it all, but as I have brought up above- it is obviously coming from all three ends: the Product (Red), the companies, and the consumer. With that in mind, I cannot hate on something that in essence is a win-win-win situation. Consumers have gotten products they want, companies have made a profit, and 25 million has already gone towards AIDS relief in Africa. All in all, not too bad of a deal.

(Product)RED

I think that even if companies are only using the campaign to get their names out there, they are still helping people in need.  As long as they donate some money towards the cause then I think they should continue.  I have a few friends that have bought (RED) products over regular products just because they knew part of the profits went towards helping people with HIV/AIDS.  Money goes towards the cause, the company still makes a profit, the customer feels better about him/herself, and the customer gets the product s/he wanted.

However, I don’t think companies should raise the prices of (RED) products.  The customer might as well buy the regular product then donate the money straight towards the cause.  I think this does breach ethics and customers should be aware of companies that are doing this.  I liked the idea presented in class, that companies donate a set dollar amount before selling (RED) products and then give a percentage of the profit to (RED).

Product Red Campaign

After hearing about the controversy surrounding the Product Red Campaign today, I never before even thought about this being such a big rip off.  It is completely unethical for a company to higher the prices of a product, and then say they are donating that to a charity. They are not even going out of their way, to appear charitable when they increase prices. Also, the end result is pocket change when you look at what these large corporations should be giving back.

I would instead like to see the corporations give a set base donation and then keeping their prices the same, donate the agreed upon amount. I see this ordeal as a huge marketing and promotional tool, which has sparked a new way of giving. It does delete the horrible process of having to beg for money. However, it must be implemented in a way this fair to all three parties, the charity, the consumer and the corporation.