Soda Wars go the cause route

Cause marketing has become all the rage, and giants Pepsi and Coke are jumping on the service bandwagon.

Pepsi Refresh

For the past 23 years, Pepsi’s spent millions on Super Bowl ads but this year they’ve opted to allocate those funds to Pepsi Refresh, which solicits the best ideas from consumers and plans to dole out $20 million in grants to good cause and “great ideas” throughout 2010.

Side Note: One of the coolest parts of this campaign is that DoSomething.org is one of two charities advising on it. Isn't that awesome?

How does it work? Basically, Pepsi is asking everyone—people businesses, and non-profits—to look around their communities and think about how they want to change it. Then submit your great idea to Pepsi Refresh. They’ll be accepting up to 1000 ideas a month!

Then, starting February 1st, voting will begin to determine the best ideas, which will receive grants ranging from $5,000 to $250,000 each.

Open Happiness

Coca Cola is taking advantage of Pepsi’s decision to sit out of the Super Bowl using their Open Happiness campaign.

How does it work? Each time a Facebook user passes a virtual Coke along to a friend, a Coke donates $1 to Boys and Girls Clubs of America. As a thank you, users get a 20-second sneak peek of the brand’s Super Bowl ad. Coke plans to give up to $500 million to the charity.

Coke’s Open Happiness campaign also includes the video below, taken on a specially equipped Coke machine transformed into a happiness machine delivering "doses" of happiness to unsuspecting St. John’s University students.

There’s little doubt these massive social marketing campaign are aimed at fostering warm-and-fuzzy feelings towards the brands, as well as attempting to connect with teens in creative ways. What’s your take? Do you think these campaigns are a good way of letting tons of people participate in philanthropy? Or do you think they could be using the money more wisely?

What can you do?

• Have a great idea? Submit it to Pepsi Refresh You could win up to $250,000 for your project!
• Have a Facebook account, pass a virtual coke to a friend and tell your peeps to do the same. Hey, that's more $$ to a great charity!