launch of the converse (nike) red mali mud cloth shoe in the uk and online and the emporio armani...
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Global Fund Private Sector Partnerships: Resource Mobilization Overview
June 2006
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• Resource mobilization for the Global Fund from the Private Sector has
been limited to date: $15 million in cash and non cash contributions were mobilized in 2005.
• However, efforts to date have been successful in testing and building a solid base of Private Sector partnerships which point to the tremendous
future potential: $500 – 700 million annually in additional revenue and reduced costs in the long term.
• Realizing the full potential value of these opportunities will require substantial resource investments, enabling policy changes and long lead times.
Summary
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Context:
Opportunity:
Opportunity:
Opportunity
Private Sector Partnerships
Cash Contributions
Service/Product Contributions
Co-investments and Operational Contributions
Agenda
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4
Strategy
Testa broad base
of partnerships
Focuson development ofpriority initiatives
Expandby leveraging
partnerships/successes
2002 - 2003 2004 - 2005 2006 and beyond
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Cash Contributions
Product Contributions
OperationalContributions
Pro Bono Services
Opportunities
• Consumer marketing campaign by RED (AmEx, Converse, Gap, Giorgio Armani, Motorola)
• Consumer grass roots campaign by UNF
• Employee giving by Merck• Major gifts from Johnson &
Johnson
• Pro bono consulting services from McKinsey
• TB drug donation from Novartis (via GDF)
• Discounted pricing offer from GSK
• Co-investment by BHP Biliton
• Participation in CCMs by Standard Chartered Bank
Examples:
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Cash Contributions
Product Contributions
OperationalContributions
Pro Bono Services
Long Term Potential
Increase Revenue
$200-300 million
Reduce costs
$300-400 million(products)
$10-25 million(services)
Improve implementation
Increased scaleand effectiveness
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Context:
Opportunity:
Opportunity:
Opportunity
Private Sector Partnerships
Cash Contributions
Service/Product Contributions
Co-investments and Operational Contributions
Agenda
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Opportunity
57%
3%
4%
36%
Consumer
Employee
Corporate
WealthyIndividuals
Private Giving Market Global Fund Opportunity
Consumer
Employee
Corporate
Wealthy Individuals
Total
Hi
Mid
Mid
Low
$150 - 250M
$10 - 25M
$10 - 25M
TBC
$200 – 300M
PriorityFull PotentialOpportunity
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• Leverage
• Sustainability
• Additionality
Guiding Principles
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(Product)RED
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Global Fund
• A significant portion of partner profits on all RED products (e.g. 1% of spending on the American Express RED card, 50% of profit on Gap RED apparel) go to Global Fund-financed AIDS programs in Africa
How It Works
(Product)RED• Established brands pay a licensing fee to (Red), agree to
marketing requirements and stipulation that all RED products and services benefit the Global Fund
• RED partner brands develop and market unique Red products to consumers
Established consumer brands
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Products
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What It…
…Is …Is not
• A change in the way the Global Fund manages its grant portfolio
• An additional burden on recipients
• A short term effort
• Cannibalizing on fundraising efforts of other organizations
• A corporate effort that will significantly increase private sector contributions to the Global Fund
• A marketing effort that will significantly raise awareness of the Global Fund and its grantees among millions of consumers
• A sustainable, scaleable, additional business model for corporate engagement
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How It Will Spread
• January 2006: Press conference at the World Economic Forum meeting in Davos featuring Bono, Bobby Shriver (CEO of RED, Chairman of DATA), Richard Feachem and Partner CEOs
• March 2006: Launch of the American Express RED credit card and Gap RED T shirts in the UK
• April 2006: Launch of the Converse (Nike) RED Mali-mud cloth shoe in the UK and online and the Emporio Armani RED sunglasses worldwide
• May 2006: Launch of Motorola RED in the UK
• Fall 2006: Launch of enhanced RED product collections from Gap, Converse and Armani, and expansion into the US.
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HOPE SPREADS FASTER THAN AIDS
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Key Elements
hope spreadsfaster than AIDS
PRMarketing• Web• TV/Cable• Print
• NGOs – grass roots advocacy
• Celebrities
Map
Community
ViralTools
AdProducts
WebProduct Distribution• Web• Retail• Postal Svc• Direct
(metered mail)
• Stamp / metered mail
• Product extensions
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Stamps
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Mapping the Spread of Hope
The spread of HOPE
get on the map
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How it will Spread
• The campaign will be unveiled at the International AIDS Conference in Toronto in August, and launched to consumers in the US on World AIDS Day in December 2006.
• The launch offering will consist of:–customized stamps and metered mail made possible by
recently developed technology and postal regulations–state-of-the-art web-based mapping technology to
engage consumers in tracking the “spread” of hope
• The offering will then expand to include other channels and products
to promote a ubiquitous “spread of hope”.
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Context:
Opportunity:
Opportunity:
Opportunity
Private Sector Partnerships
Cash Contributions
Service/Product Contributions
Co-investments and Operational Contributions
Agenda
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Opportunity
59%
41%Non-Cash
Cash
Cash vs. Non-cashGiving Market
Global FundNon-cash Opportunity
Product
Service
Total
Hi
Mid
$300 - 400M
$10 - 25M
$300 – 425M
PriorityFull PotentialOpportunity
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Current Activity
• Ad Hoc Committee formed with members of Finance and Audit Committee and Policy and Strategy Committee to explore opportunity
• Exploration will include:– Multi-stakeholder Consultations– Mapping of existing contributions and mechanisms– Assessment of potential opportunity and risk
• Recommendations to Board in 2007
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Context:
Opportunity:
Opportunity:
Opportunity
Private Sector Partnerships
Cash Contributions
Service/Product Contributions
Co-investments and Operational Contributions
Agenda
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Leveraging business
core-competencesand expertise
to support CCMs and grant recipients
Leveraging business
infrastructures, staff and
management skillsto support grant implementation
Opportunity
Co-InvestmentOperational
Contributions
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Co-investment – Current Activity
• Mapping of de-facto co-investment/operation contributions and documenting best practices
• Identifying additional opportunities and facilitating their development
• Developing a common strategy with partners to coordinate better and scale up the co-investment approach and operational contributions
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Cash Contributions
Product Contributions
OperationalContributions
Pro Bono Services
Long Term Potential
Increase Revenue
$200-300 million
Reduce costs
$300-400 million(products)
$10-25 million(services)
Improve implementation
Increased scaleand effectiveness