Friday, October 13, 2006
The Brand That Keeps on Giving
U2's Bono, who is practically a brand in himself, has teamed up with celebrity friends like Oprah Winfrey and Penelope Cruz to bring his new consumer brand, Product Red, to the United States. (Product Red officially launched in January in the UK.) The twist here is that Bono isn't creating any new product or service; he has convinced several major corporations to manufacture special items to be sold as part of the new brand's line. Unlike a traditional brand, Product Red will encompass a variety of different products. It's quite a novel concept, and a brilliant way of making the U.S.'s "brand culture" work for the less fortunate around the world, specifically Africa.

This "cause marketing" strategy ensures that a percentage of the proceeds from sales of Product Red goods goes to The Global Fund to Fight AIDS, Tuberculosis and Malaria. The corporations currently affiliated with Product Red are Motorola, American Express, Armani, Converse, Gap and Apple Computers. Among the items in the Product Red line are Motorola's red Razr phone, red Gap T-shirts emblazoned with brand slogans, and the new Red iPod.

Motorola says that most of its charitable contribution comes from profit they would normally keep. Still, Motorola's involvement with Project Red will do wonders for its reputation - with hip, image-conscious consumers as well as politically active Americans who care about contributing to worthwhile causes. Execs are confident that a good rep will result in even better sales.

Charitable activities are not only good for the soul, they're good for business. As a company, when you give back - whether you're selling candy bars for the local community church or sponsoring a major celebrity function - you stand to gain a lot more than just a warm, fuzzy feeling. You gain awareness. You gain respect. And when you have those, you're sure to gain customers. It's a win-win situation.

If your company participates in any charitable functions, that should be a major component in your branding strategy. The types of causes that you believe in say a lot about your mission, vision and goals. You'll connect with customers who share these same values. You'll attract employees who take pride in working for you.

For a small business, charitable work can be the key to unlocking customer awareness. From a PR standpoint, pitching a story about your CEO's "rags to riches" life isn't that compelling, especially if your company isn't a household name yet. It's nothing that a journalist hasn't heard before. However, if you are sponsoring a charity event or have inspiring tales of successful activities within the community, writers will take notice. Sure, they've heard about philanthropic work before too, but no one ever gets tired of hearing those types of stories. It's a soft sell. If you're a do-gooder, don't be afraid to toot your own horn!


BRANDEMiX can help you design an effective branding strategy. We can also seek out and secure opportunities for editorial coverage, based on the activities that your company takes part in. Just give us a call to find out more about our services!

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