On July 1, 2004 Masterfoods (the maker of M&Ms) announced it would run the promotion again in the Fall of 2004, vending the pink and white candies in September, October, and November. The corporation has promised a minimum donation of $250,000 to the Susan G. Komen Breast Cancer Foundation no matter how sales turn out, and they have established an upper limit of $650,000 for its donation.
It is therefore not true that every time someone buys a bag of the pink and white confections that 50 cents will go to the Foundation, because there is a limit to the corporate benevolence Masterfoods is willing to expend on this promotion. The candy maker has capped its 2004 potential donation at $650,000, which means once 1.3 million bags of the pink and white candies are vended the campaign is over. (This is the same as the 2003 campaign, which also topped out at $650,000.)
This sort of promotion is known as cause-related marketing the manufacturer chooses a worthy cause, then ties a particular product to a donation scheme dependent upon sales. Through this promotion, the manufacturer gains far greater publicity for its act of generosity than if it had merely cut a check and handed it over to a charity, the product picks up positive associations in the minds of consumers that last well beyond the campaign, shoppers are moved to select the designated product over that of a competitor's or to purchase more than they otherwise would have, and consumer guilt over "sinful" products (like candy) is counterbalanced by the impression such purchases contribute to the greater good.
Cause-related marketing is experiencing a sharp upswing, so expect to see more tie-ins between products and charities on your next few shopping expeditions.
