Professional Documents
Culture Documents
Green Marketing Project
Green Marketing Project
ON
GREEN
MARKETING
A Project Report submitted in partial fulfillment of the
requirements
for the award of the degree of
SUBMITTED BY:
RAVINDER KHATRI
09-ITMG-6836MBA
BONAFIDE CERTIFICATE
Certified that this project report titled Opportunities & Challenges for
Green Marketing with special reference to gurgaon is the bonafide
work of Mr. Ravinder Khatri student of MBA Marketing 4th semester
who carried out the research under my supervision. Certified further, that
to the best of my knowledge the work reported here in does not form part
of any other project report or dissertation on the basis of which a degree
or award was conferred on an earlier occasion on this or any other
candidate.
Date:
Place:
STUDENTS DECLARATION
I hereby declare that the project report conducted on
GREEN MARKETING
TO
ITM UNIVERSITY,GURGAON
Is my original work and the same has not been submitted for the
award of any other Degree /Diploma /fellowship or other similar
titles or prizes.
Place
RAVINDER KHATRI
Date
09-ITMG-6836-MBA
ACKNOWLEDGEMENT
If words are considered as a symbol of approval and tokens of
appreciation then let the words play the heralding role of expressing my
gratitude. It is a moment of pleasure for me to acknowledge the help and
support for those people who made me able to present this dissertation
report for evaluation as the partial fulfillment of Master Of Business
Administration.
I take this opportunity to thank and show gratefulness to my guide
Mrs.Sheetal, ITM university, Gurgaon for her precious guidance and
mentoring but for which my training here would not been so rewarding
and fruitful.
At last it is my pious duty to record my heartiest gratitude to my parents
and my family who taught first lessons of life and inspired me to face the
hardships of life. At last, I would like to thank all my friends for their
love, faith and support.
Ravinder Khatri
ABSTRACT
In today's business world environmental issues plays an important role in
marketing.
All most all the governments around the world have concerned about
green marketing activities that they have attempted to regulate them.
There has been little attempt to academically examine environmental or
green marketing. It introduces the terms and concepts of green marketing,
briefly discuss why going green is important and also examine some of
the reason that organizations are adopting a green marketing philosophy.
It also focuses some of the problems with green marketing.
It identifies the key to successful green marketing:
Credibility
Publicize stories of the companys and employees green initiatives.
Enter environmental awards programs to profile environmental
credentials to
customers and stakeholders.
Never overstate environmental claims or establish unrealistic
expectations.
It also tells about Why Are Firms Using Green Marketing:
Organizations perceive environmental marketing to be an opportunity
that can
be used to achieve its objectives
Organizations believe they have a moral obligation to be more socially
responsible
Governmental bodies are forcing firms to become more responsible
Competitors' environmental activities pressure firms to change their
environmental marketing activities
Cost factors associated with waste disposal, or reductions in material
usage forces firms to modify their behavior
This report also stresses upon the effect of green marketing on the
consumers. Green marketing isn't just a catchphrase; it's a marketing
strategy that can help you get more customers and make more money. But
only if you do it right.
CONTENTS
S.NO
TOPIC
Page
a.
Certificate
b.
Declaration
c.
Acknowledgement
d.
Abstract
e.
Introduction
10
f.
Research Methodology
36
g.
39
h.
Conclusion
53
i.
Suggestions
55
j.
Bibliography
59
k.
Annexure
60
INTRODUCTION
According to the American Marketing Association, Green Marketing is
the marketing of products that are presumed to be environmentally safe.
Thus green marketing incorporates a broad range of activities, including
Product modification,
Changes to the production process,
Packaging changes, as well as
Modifying advertising.
Green Marketing refers to the process of selling products and/or services
based on their
environmental benefits. Such a product or service may be
environmentally friendly in it or
produced and/or packaged in an environmentally friendly way.
As per Mr. J. Polonsky, Green Marketing can be defined as, "All
activities designed to generate and facilitate any exchange intended to
satisfy human needs or wants such that satisfying of these needs and
wants occur with minimal detrimental input on the national
environment."
Green Marketing involves developing and promoting products and
services that satisfy customer's want and need for Quality, Performance,
Affordable Pricing and Convenience without having a detrimental input
on the environment.
Goals of Green Marketing:
Eliminate the concept of waste
Reinvent the concept of product
Make prices reflect actual and environmental costs
Make environmentalism profitable
Bringing out product modifications
Changing in production processes
10
Packaging changes
Modifying advertising.
Yet defining green marketing is not a simple task where
several meanings intersect and contradict each other; an
example of this will be the existence of varying social,
environmental and retail definitions attached to this term.
Other similar terms used are Environmental Marketing and
Ecological Marketing. The legal implications of marketing
claims call for caution. Misleading or overstated claims
can lead to regulatory or civil challenges. In the USA, the
Federal Trade Commission provides some guidance on
environmental marketing claims. So, in simple terms
Green marketing refers to the process of selling products
and/or services based on their environmental benefits.
Such a product or service may be environmentally friendly
in itself or produced and/or packaged in an
environmentally friendly way.
The obvious assumption of green marketing is that
potential consumers will view a product or service's
"greenness" as a benefit and base their buying decision
accordingly. Green marketers though argue that it is a way
to use the environmental benefits of a product or service
to promote sales. Many consumers will choose products
that do not damage the environment over less
environmentally friendly products, even if they cost more.
With green marketing, advertisers focus on environmental
benefits to sell products such as biodegradable diapers,
energy-efficient light bulbs, and environmentally safe
detergents. People buy billions of dollars worth of goods
and services every yearmany which harm the
11
meet their own need, this became known as the Brundtland Report and
was another step towards widespread thinking on sustainability in
everyday activity.
The green marketing has evolved over a period of time. According to
Peattie
(2001), the evolution of green marketing has three phases. First phase
was termed as
"Ecological" green marketing, and during this period all marketing
activities were
concerned to help environment problems and provide remedies for
environmental problems. Second phase was"Environmental " green
marketing and the focus shifted on clean technology that involved
designing of innovative new products, which take care of pollution and
waste issues. Third phase was"Sustainable" green marketing. It came into
prominence in the late 1990s and early 2000
13
Green marketing has been widely adopted by the firms worldwide and the
following are the possible reasons cited for this wide adoption. There are
basically five reasons for which a marketer should go for the adoption of
green marketing.
They are:
Opportunities or competitive advantage
Corporate social responsibilities (CSR)
Government pressure
Competitive pressure
Cost or profit issues
14
15
16
17
financial industry are providing electronic statements by email; emarketing is rapidly replacing more traditional marketing methods and
printed materials can be produced using recycled materials and efficient
processes such as waterless printing.
20
regarding the products. In particular, one often finds distrust regarding the
credibility of green products. Therefore, to ensure consumer confidence,
marketers of green products need to be much more transparent, and
refrain from breaching any law or standards relating to products or
business practices.
There are numerous challenges in the field of green marketing. Some of
the major hurdles
are as following:
Need For Standardization:
It is found that very less percentage of the marketing messages from
Green campaigns are entirely true and there is a lack of standardization
to authenticate these claims. There is no standardization to authenticate
these claims. There is no standardization currently in place to certify a
product as organic. Unless some regulatory bodies are involved in
providing the certifications there will not be any verifiable means. A
standard quality control board needs to be in place for such labelling and
licensing.
New
Concept:
Indian literate and urban consumer is getting more aware about the merits
of Green products. But it is still a new concept for the masses. The
consumer needs to be educated and made aware of the environmental
threats. The new green movements need to reach the masses and that will
take a lot of time and effort. By Indias ayurvedic heritage, Indian
consumers do appreciate the importance of using natural and herbal
beauty products. Indian consumer is exposed to healthy living lifestyles
such as yoga and natural food consumption. In those aspects the
consumer is already aware and will be inclined to accept the green
products.
21
opportunity, the marketers need to look at the long-term benefits from this
new green movement. It will require a lot of patience and no immediate
results. Since it is a new concept and idea, it will have its own acceptance
period.
Avoiding Green Myopia:
The first rule of green marketing is focusing on customer benefits i.e. the
primary reason why consumers buy certain products in the first place. Do
this right, and motivate consumers to switch brands or even pay a
premium for the greener alternative. It is not going to help if a product is
developed which is absolutely green in various aspects but does not pass
the customer satisfaction criteria. This will lead to green myopia. Also if
the green products are priced very high then again it will loose its market
acceptability.
22
E.g. research and development capabilities for clean processes and green
products
and human resources committed to environmental protection.
WEAKNESS:
1. Most customers choose to satisfy their personal needs before caring for
environment.
2. Overemphasizing greenness rather than customer needs can prove
devastating for
a product.
3. Many customers keep away from products labeled Green because
they see such labeling as a marketing gimmick, and they may lose trust in
an organization that suddenly claims to be green.
E.g. products cannot be recycled, and hazardous wastes) of a company.
OPPORTUNITIES:
1. Marketing to segment which are becoming more environmentally
aware and
concerned.
These consumers are demanding products that conform to these new
attitudes.
2. Organizations perceive green marketing to be a competitive advantage,
relative to the competitors. Firms, therefore, strive to improve upon their
societal awareness. This complements the increase in consumers socially
conscious behavior and will therefore give them an advantage over
competitors who do not address these issues.
E.g. offering an environmental friendly product and saving resources, and
relating
them to internal strengths.
THREATS:
1. Uncertainty as to the environmental impact of present activities,
including that is
perceived to be less environmentally harmful.
2. Uncertainty as to which green marketing activities are acceptable from
a
government perspective.
3. The possibility of a backlash from consumers or government based on
existing
26
green marketing claims, threat one and two above may cause backlash to
arise.
E.g. competitors gain market shares with green products and increased
environmental regulations).
ENVIRONMENTAL AUDIT:
It is a management tool which can be used to assess the environmental
performance of the company and its units and to identify the weak points.
Environmental Audit is comprised of a systematic, documented, periodic
and objective environmental performance evaluation and facilities.
GREEN PRODUCTS: ITS CHARACTERISTICS
These products that are manufactured through green technology and that
caused no environmental hazards are called green products. Promotion of
green technology and green products is necessary for conservation of
natural resources and sustainable development. We can define green
products by following measures:
Products those are recyclable, reusable and biodegradable
Products with natural ingredients
Products containing recycled contents, non-toxic chemical
Products contents under approved chemical
Products that do not harm or pollute the environment
Products that will not be tested on animals
Products that have eco-friendly packaging i.e. reusable, refillable
containers etc.
27
ELECTRONIC SECTOR:
The consumer electronics sector provides room for using green marketing
to attract new customers. One example of this is HP's promise to cut its
global energy use 20 percent by the year 2010. To accomplish this
reduction below 2005 levels, The Hewlett-Packard Company announced
plans to deliver energy-efficient products and services and institute
energy-efficient operating practices in its facilities worldwide.
Laundry detergents are also touting energy savings. Proctor & Gambles
(P&G) newest market entry, Tide Coldwater, is designed to clean clothes
effectively in cold water. About 80 to 85 percent of the energy used to
wash clothes from heating water. Working with utility companies, P and
G found that consumers could save energy and resources by using cold
rather than warm water. As energy and resource prices continue to soar,
opportunities for products offering efficiency and savings are destined for
market growth.
30
31
32
35
RESEARCH
36
METHODOLOGY
PROBLEM FORMULATION:
The aim of this study is to investigate immense opportunities and
associated challenges in Green Marketing. Green marketing is still in its
infancy and a lot of research is to be done on green marketing to fully
explore its potential. Marketing Green means having a vision and a plan
and taking (cautious) action. As more companies look to promote their
environmentally savvy practices, it's a good idea to pause for a moment
and consider what companies are marketing when promoting organization
as green or sustainable.
RESEARCH OBJECTIVE:
Primary Objectives:
1.To know the benefits and opportunities of green marketing strategy
2.To study the challenges in green marketing.
Secondary Objectives:
1.To check the awareness about eco-friendly products of the peoples and
make them aware.
2.To know the strategy being a green is either helpful or not.
RESEARCH HYPOTHESIS:
A tentative insight into the natural world, a concept that is not yet verified
but that if true would explain certain facts or phenomena. The hypothesis
to be tested in this study is:
There are sufficient opportunities for green marketing and green
products in gurgaon.
RESEARCH DESIGN:
37
SAMPLING DESIGN
a.
b.
c.
Sampling technique
Sample size
Sampling area
38
FINDINGS
AND
INTERPRETATIONS
:
:
58
42
Hence from the above graph we come to know that 58% of respondents
are aware about some or other green marketing campaign carried by
companies. On the other hand 42% respondents do not know by any
means. It needs a larger attention from the marketers perspective.
39
:
:
:
:
:
6
19
7
12
14
40
:
:
32
26
When people were asked whether they have been part of any green
campaign,55% said yes whereas 45% denied.
:
:
:
:
:
9
10
16
14
7
Here from the above graph we see that majority 29% people sometimes
give consideration to the environmental aspects of products while
buying,25% people gives consideration rarely,18% often and 12% most
often give consideration to the environmental aspect while buying
product.
The weighted mean score after calculation is +2.90 which means that in
overall people sometimes give consideration to environmental aspect
while buying product.
41
10
11
15
13
9
From the above graph 26% people neither agree nor disagree that green
marketing and its advertising are good source of information about green
products and services.22% people partially disagrees from this whereas
16 % highly disagree and 19% are partially agreed.
42
:
:
:
:
:
11
19
9
9
10
Here we come to know that 33% people partially agree that green
marketing activities are good at addressing environmental issues; 15%
people are neutral, 17% people highly disagree.
:
:
:
:
:
34
16
5
3
0
59% of people strongly agree that the green marketing activities result in
better products whereas 9% are neutral on this and 5% disagree and 27%
agrees.
43
Competitive pressure
As a part of CSR
immense opportunity
:
:
:
16
15
19
Hence from the above graph it can be seen that 14% of people think that
companies opt green strategy because of the government pressure, 27%
due to have a competetive edge over others.26% believe that it is a part of
CSR and 33% immense opportunity.
Hence 48% people highly agreed that green marketing strengthen the
companys image, 43% also agreed.5% people were neutral whereas 4%
disagree
44
36% highly agrees that they are easily persuaded by companys with
green marketing initiatives,29% people agree and 14% are neutral.
46% people believe that the green strategy can help the environment
grow in a healthier manner whereas 12% does not believe.
45
HYPOTHESIS TESTING
Hupothesis: There are sufficient for green marketing and green
products in gurgaon.
Variable
observed expected (O-E)
(O-E)2
(O-E)2/E
Ques 1
58
45
+13
169
3.76
Ques 3
32
45
-13
169
3.76
Ques 12
46
45
+1
1
0.02
=7.54
Hence the calculated value of 2= 7.54
Since dergree of freedom in given problem is
(N-1)=(3-1)=2
The table value of 2 for 2 degree of freedom at 28% level of significance
is 7.834
46
:
:
:
:
21
39
28
12
GENDER
MALE
:
FEMALE
:
74
26
OCCUPATION
GOVT.
:
PRIVATE
:
STUDENT
:
OTHERS
:
24
19
27
30
CONCLUSION
48
Conclusion:
Green marketing should not neglect the economic aspect of marketing.
Marketers need to understand the implications of green marketing. Green
marketing to some extent strengthen companys image in the mind of
respondents that is very much clear from trustworthiness of green claims
and certainly it do have positive image of the organization in the minds of
the respondents. It was observed that the respondents who were more
proactive with the environmental behaviour have positive attitude
towards green advertisements. It is evident that green marketing have
positive impact on only those who are already practicing it. Rest of the
respondents who were passive had very less impact on their buying
behaviour.
Green marketing covers more than a firm's marketing
claims. While firms must bear much of the responsibility
for environmental degradation, the responsibility should
not be theirs alone. Ultimately green marketing requires
that consumers want a cleaner environment and are
willing to "pay" for it, possibly through higher priced
goods, modified individual lifestyles, or even
governmental intervention. Until this occurs it will be
difficult for firms alone to lead the green marketing
revolution. We need to come out through green myopia.
Having said this, it must not be forgotten that the
industrial buyer also has the ability to pressure suppliers
to modify their activities. Thus an environmental
committed organization may not only produce goods that
have reduced their detrimental impact on the
environment, they may also be able to pressure their
49
50
51
SUGGESTIONS
52
Suggestions:
Green marketing is still in its infancy and a lot of research is to be done
on green
marketing to fully explore its potential. There are some suggestion that an
organizations should implement for catering challenges of green
marketing and successful exploitation of green marketing. Those are:
Consumer needs to be made more aware about the merits of Green
products. It is still a new concept for the masses. The consumer needs to
be educated and made aware of the environmental threats. It should be
made sure that the consumer is aware of and concerned about the issues
that your product attempts to address. Green Marketing campaign and
green advertising is good step toward it.
Consumers must be motivated to switch brands or even pay a premium
for the greener alternative. Make sure that consumer feel that they can
make a difference. Make sure that consumer feel that they can make a
difference. This is called empowerment and due to this main reason
consumers will buy greener products.
Further steps should be taken to control false promise and claim by the
marketer to maintain legitimacy and trustworthiness of green products.
Consumers must be made to believe that the product performs the job its
supposed to do-they wont forego product quality in the name of the
environment. For effective and efficient implementation of this concept
of Green Marketing the factor that plays a major role is the Government.
Unless the government creates specific and stringent laws and utilizes its
authority to implement them the concept cannot be conceptualized. If the
Consumer, the Organization and the Government work in unison towards
the common goal of minimizing the detrimental environmental impact of
53
their activities, then they can surely save this environment and make this
world a better place to live in.
Thus leading brands should recognize that consumer expectations have
changed. It is not enough for a company to green its products; consumers
expect the products that they purchase pocket friendly and also to help
reduce the environmental impact in their own lives too.
Todays consumers are becoming more and more conscious about the
environment and are also becoming socially responsible. Therefore, more
companies should become responsible to consumers aspirations. Many
companies want to have an early mover advantage as they have to
eventually move towards becoming green. Green marketing is very low
on the agenda of most businesses and therefore its still an underleveraged USP (Unique Selling Proposition). Therefore, effective green
marketing targeted at the right audience will make a difference
54
BIBLIOGRAPHY
55
BOOKS:
I. Kothari C.R. (2004), Research Methodology Methods and
Techniques, N.
Delhi, New Age International Publication
ii. Green, Paul, Tull (2002) Research for Marketing Decisions, N.
Delhi,
Prentice-Hall of India
iii. Sharma D.D. (2008), Marketing Research: Principle Application &
Cases N. Delhi, Sultan Chand & Sons
iv. Kotler P. (1999), Marketing Management, N. Delhi, Prentice-Hall of
India.
v. Rajagpalan R. (2003), Environment Studies, N. Delhi, Himalayan
Publishing
House.
vi. Certo, S.C. (1997), Modern Management, Englewood Cliffs, PrenticeHall
WEBSITES:
a. http://www.businessworld.in
b. http://www.outlookindia.com
c. http://en.wikipedia.org
d. http://www.business-standard.com
e. http://www.encyclopedia.com
56
ANNEXURE
Hello sir/madam,
I Ravinder Khatri, here to conduct a research on the topic oppurtunities
& challenges for green marketing for corporates .
Please give your honest opinion and this information collected will be
purely confidential and will not be shared for any purpose other than
research.
1.
57
a)
b)
Yes
No
GENDER:
Thank you!!!!!
59