Key Marketing Problem with respect to environment and social issues

Promoting Green Building as environment and social product in Indian Market

SAGAR NAYAK U212049

CONSTRUCTION INDUSTRY IN INDIA

Today, India is the second fastest growing economy in the world. The Indian construction industry is an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living. Construction industry mainly consists of Real estate, Industrial Parks, Factories, Plants, Corporate, Commercial complex, Roads, Railways, Metro, Ports, Urban infrastructure (improved housing, water supply and sanitation, schools, universities, health)Airports, Power Plant etc. With a share of around 8.2 per cent, the construction industry has contributed estimated 670,778Cr rupees to Indian GDP in 2011-12. The sector in combined weights 37.90 per cent of the total Industrial Production (IIP), 26.7 per cent of India's industrial output and growing with cumulative rate of 3.2 per cent every year to year . The Planning Commission has projected that investment in infrastructure would almost double at US$ 1,025 billion in the Twelfth Five Year Plan (2012-17), compared to US$ 514 billion in the Eleventh Plan. The sector provides employment to around 33 million people and it expected to reach 83 million by 2022.

The ProductOur company has been constructing buildings for nearly 15 years. From last 5 years company has introduced something revolutionary for Indian construction industry that is GREEN BUILDIG. It has been very successful mainly in commercial building segment that is offices and factories. But the picture becomes very gloomy when the idea of green building has introduced in mass housing sector.

Defining green in construction,

The construction, characteristics, operation, and demolition of buildings are increasingly recognized as a major source of environmental impact. Without significant transformation of building construction and operations, such impacts are expected to increase with population growth and changes in other demographic and economic factors. One strategy for achieving that transformation is most widely known by the term green building. However, the term is used differently by different proponents and practitioners, denoting a continuum of practices, from those differing minimally from standard practices, to those aimed at providing buildings with a minimum of environmental impact.

In general, green building can be characterized as integrated building practices that significantly reduce the environmental footprint of a building in comparison to standard practices. Describing a green building is generally whose construction and lifetime of operation assure the healthiest possible environment while representing the most efficient and least \disruptive use of land, water, energy and resources.

One of the most salient features of green building is integration of a number of common elements, especially Sustainable Site Design, Energy for Environment, Water Quality and Conservation, Indoor Environmental Quality, Materials and Resources, and Waste management. Although individual elements can be addressed separately, the green building approach is more comprehensive, focusing on the environmental footprint of a building over its life cycle, from initial design and construction to operations during the buildings useful life, through eventual demolition and its aftermath.

A green building for environment

Reduction in pollutant emission; use of energy efficient appliances and lighting consumes less electricity means less fossil fuel and a contribution to stop global climate change as well as minimize the effects of smog and acid rain in air. Also the use of solar powering further reduces the dependence on fossil fuel. Water conservation and management: Rain water harvesting maintains the ground water level with added benefits like earth erosion, flooding and keeping away of water resources from pollutants. Reuse of grey water for urinal as well as irrigation also decreases the water use substantially. Temperature moderation: With a conscientious building design we can reduce the absorption of by concrete building so reducing the global warming. This can also accelerated with making spaces for trees. Waste Reduction and Reuse: Reuse of solid waste produced by construction and demolition. Instead of full-scale demolition, Building deconstruction as an alternative will results in massive decreases of waste production.

A green building for society

Improved health- health and well being are supported by the indoor air quality inherent in green buildings. Poor indoor air resulting from insufficient air circulation, poor lighting, mold, temperature variances, carpeting, furniture materials, pesticides, toxic adhesives, paints, and other pollutants contribute to respiratory problems, allergies, nausea, headaches, and skin rashes. Healthier lifestyles and recreation- A key element of sustainable design is the preservation of natural environments, which afford a variety of recreation and exercise opportunities. Green buildings also seek to facilitate alternatives to driving, such as bicycling and public transport, which eases local traffic while encouraging personal health and fitness. No more social conflict for habitant t loss- Less power consumption leads to less no of power plant and less mining. That can check the social conflict likes of displacement affecting multiple
levels of human organization, from tribal and village communities to well-developed urban areas.

The growth of green building in India

25 million sq ft build up area. 80 buildings mainly corporate offices and IT parks.

The market opportunity of green building in India

15000 Cr opportunities for construction material and equipment in coming 10 years. Energy savings of 30000 Cr and advisory service of 200cr incoming 2 decade. Job opportunity to for thousand of peoples.

4P ANALYSIS OF GREEN BUILDING with SWOT MATRIX PRODUCT

Strengths Reduces the energy as well as water consumptions Environment friendly Extended lifecycle of green building than normal way constructed building. Healthier work, learning, and living environments by providing more natural light and cleaner air. Cutting edge technology that makes living or work more sophisticated and easy.

Weakness The complexity associated with construction is large so it needs very well qualified technocrats with the required experience. Readily availability of eco-friendly building materials is very often difficult. Required time to construction of green building is more.

Opportunity Being an environment friendly product it will always attract the conscious minds. India is in need of 25 million house units with this the subsequent demand of infrastructure to fulfill the power needs. As we will struggle to find the investment and raw materials (mainly coal), green buildings will play a big part in reducing the total power requirement.

Threats Rather than from competitors the more threat comes from the adoptability of technology and handling it efficiently by residents of green buildings. Most houses built in India are single unit houses so for a big corporate company the financial viability for constructing single units is unsustainable. The question if it will work for what it is meant.

The doubt if the constructor will study if the building is fulfilling its objective after once the construction is over.

PLACE
Strengths In urban India where people facing a large power and water shortage this idea can find a huge market. In metros where sky scrapers are built to minimize the effect of escalate land rate, green building idea can be easily marketed as well as implemented.

Weakness The green building concept may not work in places of extreme weather. In rural and small cities, the business idea using green building will face difficulties.

Opportunity As India will add another 497 million to its urban population that will create a huge opportunity for infrastructure sector and green buildings.

PROMOTION
Strengths As environment is very sensitive matter now a days and prompting it in line of ecofriendly will have a great buzz. Around world every state has started promoting for the green buildings.

Weakness In India people has no or very low awareness about difficulties faced by nature and its impact. So it is will very hard to understand them what a green building is all about. Lack of vision for rural market and the strategy to tap the market of lower middle class and lower class people who have a less income.

Opportunity Promoting the cause of green building in retaliation of degrading nature to students in schools, colleges will create the awareness.

Working with digital media, print media and NGOs to reach the people about the effect of green building on nature. Taking the bankers and insurers to confidence so one will finance the ordinary building to green and other one will take care the risk associated with green building.

Threats Getting to people open up and embrace change is a challenge. So in India culture and old mindset can create a major challenge for green practices.

PRICEStrengths Big returns in coming future as low maintenance and operational cost of building. Global average shows the return from investment in green building is as higher as 20% so it makes it very attractive. Attract grants, subsidies and other inducements to do with environmental stewardship. High sale value.

Weakness High initial cost of construction than the conventional building so needs bigger investment. The main part of construction is design development but as the idea has not a mass market so people doing the design work has been costing more. As the market grows the price of basic finished goods and machineries will come down but now with minimum takers the price is very high.

Opportunity-

With the increase of high earning, technology savvy young people the green building
idea can find a huge potential customer who can easily invest in it.

Rising no of domestic companies as well as MNC, Educational institutes, Hospitals also

created a big group who can afford.

Can attract a huge foreign investment.

Threats For making green building idea successful we need huge investment from all sectors corporate, banks, public and government.

CONCLUSION
As Indian economy is booming with growth exceeding 8% every year since last decade and this ongoing growth is due to rapidly developing services and manufacturing sectors which is supported by the increased capacity of spending by Indian middle class. The thrust of human for better life has been causing an irreversible destruction of nature which can have an impact on the future generations. The tremendous growth of infrastructure has placed a huge pressure on natural and environmental resources, so we need to preserve our ecology and sustain it for future user. Green building is one of the most successful practices and will play a role of major stake holder to create a sustainable world. The green building concept is new for Indian construction industry as compared to countries like the USA and the Europe so it will take a little while to evolve. But for now its the responsibility of Indian construction industry and more importantly the government to promote market and finance the idea of GREEN BUILDING. GREEN MAKES A BUSINESS SENSE

BIBLIOGRAPHY

1. INDIAN GREEN BUILDING COUNCIL <http://www.igbc.in/site/igbc/publication.jsp > 2. S Raghupathy<http://articles.economictimes.indiatimes.com/2012-0818/news/33261619_1_green-buildings-igbc-green-corporate-image> 3. Green Rating for Integrated Habitat Assessment< http://www.grihaindia.org > 4. http://construction.indianetzone.com/1/green_construction.htm 5. Sustainable Habitants<http://www.sustainable-buildings.org/> 6. India Fact Book Ministry of Finance < http://finmin.nic.in/the_ministry/dept_eco_affairs/capital_market_div/India_Factbook.pdf> 7. Marketing management by Philip Kotler, KL Keller, A Koshy, M Jha