Green Marketing in India –

Way ahead to sustainability

Presented in National conference on Marketing SIES 20Jan 2010

Artee Aggrawal
Richa Chaudhary
Dr. R. Gopal
GO-GREEN STRATEGY AND
DIFFERENT STAKEHOLDERS

PLAN Twentieth Century

ET +
PEOP
LE + Late Nineties
PROF
PEOPLE +
IT
PROFIT
Eighteenth
Century
PROFIT
GREEN MARKETING
 Green Marketing has been an important
academic research topic since its
inception.
 Attention was drawn to the subject in late
1970’s when the American Marketing
Association organized a workshop on
Ecological Marketing in 1975
First definition

 Theimplementation of marketing
programs directed at the environmentally
conscious market segment (Henion 1976)
Evolved to
 The process of planning, implementing
and controlling the development, pricing,
promotion and distribution of products in a
manner that satisfies the following criteria-
 Customer needs are met
 Organizational goals are attained
 And the processes are compatible with
ecosystems (Fuller 1999)
According to Ottman (1993) Green Marketing serves two
key objectives-

 To develop products that incorporates consumer

need for convenience, affordable prices and
performance while having minimal impact on the
environment
 To project an image of high quality, including
environmental aspects, both in regards to
product attributes and the manufacturer's track
record for environmental compliance.
 Firstconsumer survey was conducted by
Vandermerwe and Ollif stating that more then
92% European multinationals clamed to have
changed their products in response to green
concern.
 Green products introduction increased by more
then double to 11.4% of all new household
products in the USA between 1989 and 1990
and continued to rise to 13.4% in 1991
 However this optimistic start to the 1990s was not
sustained (Peattie and Crane 2005).

A 2001 survey conducted by Roper indicates that

during the 1990’s approximately 2/3 of all consumers
believed that environmental protection and economic
development can go hand in hand. While perception is
important, actual behavior is crucial to market success.

. A report (conducted by Mintel 1995) showed only a very

slight increase in green consumer since 1990 and a
significant gap between concern and actual
purchasing.
 There are several factors contributing to it-
 Price
 Quality
 Convenience etc
So this decrease in frequency and prominence of
Green claims have led the world to
“Greenwashing phenomenon”
 This is when a company hides the true effect of
its products or actions on the environment, by
making it seem as though the company is very
much concerned about the environment.
 WORLD IS AT A TIPPING POINT
WAITING FOR A GREEN REVOLUTION

 AREWE FACING GREEN MYOPIA ???

UNLESS IT IS ADDRESSED WE CAN’T
BRING CHANGE
AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINK
AMONG PLAYERS

 CONSUMER

GREEN ENVIRONMRNT

 PRODUCER STATE
GREEN MARKETING ENCOMPASES-

 BEING GREEN

 SPREADING GREEN

Advertisement SCM
Our definition

Green Marketing is an art of creating an awareness

among consumers about carefully planned and
developed eco compliance products and services using
competitive pricing, promotion and distribution strategies
that leads to increased uptake of product and services,
increase in ROI and finally consumer satisfaction.
MARKETING GREEN IN INDIA
According to a survey conducted by BT-AC Nielsen ORG-
MARG, Oil and petroleum sector is considered the
greenest sector in India. ONGC is the greenest
company followed by Reliance Industries.
India is a world leader in green IT potential. According to
Global enterprise survey Indian respondents scored
over respondents from 10 other countries in expecting to
pay 5% or more for green technology if its benefits for
the environment and return on investment (ROI) is
proven.
TATA GROUP OF COMPANIES

 India’s oldest industrial house is stepping up efforts to reduce its carbon

footprint across the value chain — from manufacturing processes to
distribution networks to ecofriendly consumer products.
 Tata Steel aims to reduce carbon dioxide emissions at its Jamshedpur plant
from the current 1.8 tonne to 1.7 tonne per tonne of liquid steel made by
2012. The ideal global benchmark though is 1.5.
 Tata Motors is setting up an eco-friendly showroom using natural building
material for its flooring and energy efficient lights. Tata Motors said the
project is at a preliminary stage.
 The Taj chain, is in the process of creating eco rooms which will have
energy-efficient mini bars, organic bed linen and napkins made from
recycled paper. But there won’t be any carpets since chemicals are used to
clean those. And when it comes to illumination, the rooms will have CFLs
or LEDs. About 5% of the total rooms at a Taj hotel would sport a chic eco-
room design.
 One of the most interesting innovations has come in the form of a biogas-
based power plant at Taj Green Cove in Kovalam, which uses the waste
generated at the hotel to meet its cooking requirements.
 Launched a low-cost water purifier made from natural ingredients.
 Another eco-friendly consumer product that is in the works is Indica
EV, an electric car that will run on polymer lithium ion batteries. Tata
Motors plans to introduce the Indica EV in select European markets
this year.
 Tata Steel said it is currently working on more than 17 CDM
projects with Ernst & Young and these projects are at various
stages of approval at United Nations Framework Convention on
Climate Change.
Tata Power has said that of the total power it would generate in
the next 10 years, 25% would be from renewable energy sources.
Further Tata Motors is collecting environmental and energy data
across its dealer and supply chain to compute their carbon footprint
and identity opportunities for cutting down on carbon dioxide
emission.
These are some of the success stories but if you look at it from Indian
consumers (or consumption pattern) perspective-

 There is very less uptake of solar batteries and

equipments (cooker etc).
 Recently launched Samsung solar mobile Guru is
not finding foot in market due to inconvenience in
solar charging.
 Battery operated LG TV failed in Indian market to
due to sound quality
 Very less consumption of CFL bulbs due to high
cost.
 Consumption of plastic bags is very high in both
rural and urban sector etc.
Factors differentiating the Indian consumers from
consumers of developed countries-
 India is a cost driven market
 Low level of awareness
 Degree of New product acceptance
 Less developed means of communication
 Language barriers
 Use of redundant technologies in most of the companies
in India.
 Percentage of Literacy
Indian consumer want ready to use technology. They don’t
give review of product, no feedbacks, no complaints and
no use of warranty cards. Also there is very less brand
loyalty among Indian consumers.
Avenues in India
 Use of solar energy. India gets plenty of sunlight due to its
proximity to the equator. It receives an annual average of 4-
7KWh per day for every square meter, meaning the country
receives a lot more sunlight than what it can use in a year,
making it an abundant source of power.

• India has the best opportunity to be in the forefront of the

sustainable world with our Fair Trade certifications & organic
cotton certifications. Developing an organic agricultural
business we can improve our food chain, agricultural
programs & health issues.
• Handicraft and handmade papers, huge market for paper
bags to replace plastic bags
Conclusion
 Green marketing assumes even more importance and relevance in
developing countries like India & Pakistan.
 The significance India will have on the the world in the future will be
extraordinary, we’ve only scratched the surface.
 The thing that remains to be seen is the importance green business
has in India.
 Tackling mass poverty is the first thing that is happening, and it
should be the first thing that the country emphasizes.
 India will be an economic powerhouse, and could be a leader in
green business if they choose to be. The direction that business
takes in India will have massive impact on the world.
 If business leaders there recognize the vast potential that green
business has, and then decide to invest time, money, and effort, the
world would only benefit.
 India is in a very unique position right now, they could either lead
the world, or potentially aid in its destruction.
THANK YOU

SPECIAL THANKS TO-

 PRAMOD KUMAR (Senior Design Engineer,
NTPC Delhi)
 SWAMYENATH CHENNA (Student DYPDBM)
 AND NEHA JANGID (Student DYPDBM)