Problem statement:-

Research objective:-

1. To understand Green Marketing as a means of modern marketing in today’s world

2. To understand the level of awareness regarding Green Marketing.

3. To understand initiative taken by government towards green marketing.

4. To study the importance of Green Marketing.

 Specialization

Project

On

A study on “GREEN MARKETING -Need of an Hour”.

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(under Universit y of Mumbai)

Submitted by

Khan Shadab M Ali

(Roll No.M -222)

Under the Guidance of

Prof. Vivek. Sharma

2016-18

Sheila Raheja School of Business Management & Research, Bandra East

 CERTIFICATE

This is to certify that project titled “ Green marketing-Need of an Hour” is

successfull y completed by Khan Shadab during the IV semester, in partial
fulfillment of the Master’s Degree in Management Studies recognized by the
Universit y of Mumbai for the academic year 2016-2018 through Sheila
Raheja School of Business Management & Research, Bandra East.

This project work is original & not submitted earlier for the award of any
degree, diploma or associateship of any other universit y/ Institution.
 DECLARATION

I hereby declare that this project Report submitted by me to the Sheila Raheja

School of Business Management & Research, Bandra East is a bonafied work

undertaken by me & it is not submitted to any other university or institution

for the award of any degree diploma/ certificate or published any time before.

Name: Khan Shadab ( )

Roll no. M-222 Signature of the Student

 ACKNOWLEDGEMENT

I take this opportunity to specially gratify Dr. Vijay Wagh, director, Sheila Raheja School
of Business Management & Research, for permitting me to undertake this study, for his
exemplary guidance, monitoring and constant encouragement throughout the course of this
project.

I am deeply indebted to my guide Prof. Vivek Sharma for not only his valuable and
enlightened, guidance but also for the freedom he rendered me during this project work.

Faculty Members, who have extended their kind help, guidance and suggestion without which
it could not have been possible for me to complete this project report.

I also express my sincere thanks to all the people who, directly or indirectly, contributed in
time, energy and knowledge to this effort.

Khan Shadab

Roll No: M-222

Specialization- Marketing.

SRBS, Mumbai.
 EXECUTIVE SUMMARY

A research conducted under a topic “GREEN MARKETING-Need of an Hour” The research

is done To understand the Importance of Green marketing in today’s Business scenario and
Initiative taken by Government. As Green marketing can play vital role in increasing the
engagement and promotion.

Section 1:-Problem statement

Section 2:- Research objective

1. To understand Green Marketing as a means of modern marketing in today’s world

2. To understand the level of awareness regarding Green Marketing.

3. To understand initiative taken by government towards green marketing.

4. To study the importance of Green Marketing.

Section 3:- Importance of Study

The study will provide guideline for further research in the areas Green
Marketing
The research is also important to identify areas of opportunity with respect to
green marketing.
The research shows future Scenario of green marketing. The study shows
Opportunities and challenges for green marketing with respect to India.
HYPOTHESIS:
H1 Green Marketing is a means of modern marketing in today’s world.

H0 Green Marketing is not a means of modern marketing in today’s world.

RESEARCH DESIGN:
I used a combination of both Exploratory Research and Descriptive Research
Design.

Literature Review:
This research conducted by various element including primary data collection
by circulating questionnaire , secondary data through various articles , websites
etc. this project gives idea of Green marketing , how Green marketing can be
beneficial and recent trends of it.
INTRODUCTION
Problem statement
Research objective:-
1. To understand Green Marketing as a means of modern marketing in today’s world

2. To understand the level of awareness regarding Green Marketing.

3. To understand initiative taken by government towards green marketing.

4. To study the importance of Green Marketing.

HYPOTHESIS:
H1 Green Marketing is a means of modern marketing in today’s world.

H0 Green Marketing is not a means of modern marketing in today’s world.

Research design:-
I used a combination of both Exploratory Research and Descriptive Research
Design.
Literature Review
INTRODUCTION

Although environmental issues influence all human activities, few academic

disciplines have integrated green issues into their literature. This is especially true
of marketing. As society becomes more concerned with the natural environment,
businesses have begun to modify their behavior in an attempt to address society's
"new" concerns. Some businesses have been quick to accept concepts like
environmental management systems and waste minimization, and have integrated
environmental issues into all organizational activities. Some evidence of this is the
development of journals such as "Business Strategy and the Environment" and
"Greener Management International," which are specifically designed to
disseminate research relating to business' environmental behavior.

One business area where environmental issues have received a great deal of
discussion in the popular and professional press is marketing. Terms like "Green
Marketing" and "Environmental Marketing" appear frequently in the popular press.
Many governments around the world have become so concerned about green
marketing activities that they have attempted to regulate them (Polonsky 1994a).
For example, in the United States (US) the Federal Trade Commission and the
National Association of Attorneys-General have developed extensive documents
examining green marketing issues [FTC 1991, NAAG 1990]. One of the biggest
problems with the green marketing area is that there has been little attempt to
academically examine environmental or green marketing. While some literature
does exist [Carlson, Grove and Kangun 1993, Davis 1992, Davis 1993], it comes
from divergent perspectives.

This paper will attempt 1) to introduce the terms and concepts of green marketing;
2) briefly discuss why going green is important; 3) examine some of the reason that
organizations are adopting a green marketing philosophy; and 4) mention some of
the problems with green marketing.
WHAT IS GREEN MARKETING

Unfortunately, a majority of people believe that green marketing refers solely to

the promotion or advertising of products with environmental characteristics. Terms
like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally
Friendly are some of the things consumers most often associate with green
marketing. While these terms are green marketing claims, in general green
marketing is a much broader concept, one that can be applied to consumer goods,
industrial goods and even services. For example, around the world there are resorts
that are beginning to promote themselves as "ecotourist" facilities, i.e., facilities
that "specialize" in experiencing nature or operating in a fashion that minimizes
their environmental impact [May 1991, Ingram and Durst 1989, Troumbis 1991].

Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as
modifying advertising. Yet defining green marketing is not a simple task. Indeed
the terminology used in this area has varied, it includes: Green Marketing,
Environmental Marketing and Ecological Marketing. While green marketing came
into prominence in the late 1980s and early 1990s, it was first discussed much
earlier. The American Marketing Association (AMA) held the first workshop on
"Ecological Marketing" in 1975. The proceedings of this workshop resulted in one
of the first books on green marketing entitled "Ecological Marketing" [Henion and
Kinnear 1976a]. Since that time a number of other books on the topic have been
published [Charter 1992, Coddington 1993, Ottman 1993].

The AMA workshop attempted to bring together academics, practitioners, and

public policy makers to examine marketing's impact on the natural environment. At
this workshop ecological marketing was defined as:

"the study of the positive and negative aspects of marketing activities on pollution,
energy depletion and no energy resource depletion." [Henion and Kinnear 1976b,
1]

This early definition has three key components,

1. it is a subset of the overall marketing activity;

2. it examines both the positive and negative activities; and
3. a narrow range of environmental issues are examined.
While this definition is a useful starting point, to be comprehensive green
marketing needs to be more broadly defined. Before providing an alternative
definition it should be noted that no one definition or terminology has been
universally accepted. This lack of consistency is a large part of the problem, for
how can an issue be evaluated if all researchers have a different perception of what
they are researching. The following definition is much broader than those of other
researchers and it encompasses all major components of other definitions. My
definition is:

"Green or Environmental Marketing consists of all activities designed to generate

and facilitate any exchanges intended to satisfy human needs or wants, such that
the satisfaction of these needs and wants occurs, with minimal detrimental impact
on the natural environment."

This definition incorporates much of the traditional components of the marketing

definition, that is "All activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants" [Stanton and Futrell 1987]. Therefore it
ensures that the interests of the organization and all its consumers are protected, as
voluntary exchange will not take place unless both the buyer and seller mutually
benefit. The above definition also includes the protection of the natural
environment, by attempting to minimize the detrimental impact this exchange has
on the environment. This second point is important, for human consumption by its
very nature is destructive to the natural environment. (To be accurate products
making green claims should state they are "less environmentally harmful" rather
than "Environmentally Friendly.") Thus green marketing should look at
minimizing environmental harm, not necessarily eliminating it.
WHY IS GREEN MARKETING IMPORTANT

The question of why green marketing has increased in importance is quite simple
and relies on the basic definition of Economics:

"Economics is the study of how people use their limited resources to try to satisfy
unlimited wants."]

Thus mankind has limited resources on the earth, with which she/he must attempt
to provide for the worlds' unlimited wants. (There is extensive debate as to whether
the earth is a resource at man's disposal, for example, see Gore 1993.) While the
question of whether these wants are reasonable or achievable is important, this
issue will not be addressed in this paper. In market societies where there is
"freedom of choice", it has generally been accepted that individuals and
organizations have the right to attempt to have their wants satisfied. As firms face
limited natural resources, they must develop new or alternative ways of satisfying
these unlimited wants. Ultimately green marketing looks at how marketing
activities utilize these limited resources, while satisfying consumers wants, both of
individuals and industry, as well as achieving the goals.
OPPORTUNITIES

It appears that all types of consumers, both individual and industrial are becoming
more concerned and aware about the natural environment. In a 1992 study of 16
countries, more than 50% of consumers in each country, other than Singapore,
indicated they were concerned about the environment [Ottman 1993]. A 1994
study in Australia found that 84.6% of the sample believed all individuals had a
responsibility to care for the environment. A further 80% of this sample indicated
that they had modified their behavior, including their purchasing behavior, due to
environmental reasons [EPA-NSW 1994]. As demands change, many firms see
these changes as an opportunity to be exploited.

Given these figures, it can be assumed that firms marketing goods with
environmental characteristics will have a competitive advantage over firms
marketing non-environmentally responsible alternatives. There are numerous
example of firms who have strived to become more environmentally responsible,
in an attempt to better satisfy their consumer needs.

 McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone
depletion [Gifford 1991, Hume 1991].
 Tuna manufacturers modified their fishing techniques because of the
increased concern over driftnet fishing, and the resulting death of dolphins
[Advertising Age 1991].
 Xerox introduced a "high quality" recycled photocopier paper in an attempt
to satisfy the demands of firms for less environmentally harmful products.

This is not to imply that all firms who have undertaken environmental marketing
activities actually improve their behavior. In some cases firms have misled
consumers in an attempt to gain market share. In other cases firms have jumped on
the green bandwagon without considering the accuracy of their behavior, their
claims, or the effectiveness of their products. This lack of consideration of the true
"greenness" of activities may result in firms making false or misleading green
marketing claims.

Ref:

 https://www.uow.edu.au/~sharonb/STS300/market/green/article2.html
 Electronic Green Journal, ISSN: 1076-7975 vol. 1, issue 2, November 1994
Evolution of Green Marketing

The concept of green marketing has been around at least since the first Earth Day
in 1970. Butte idea did not catch on until the 1980s, when rising public interest in
the environment led to a demand for more green products and services.
Manufacturers responded to public interest by labeling hundreds of new products
“environmentally friendly”—making claims that products were biodegradable,
compostable, energy efficient, or the like.

In spite of its growing popularity, the green marketing movement faced serious
setbacks in the late 1980sbecause many industries made false claims about their
products and services. A common mantra in green marketing is that if we want the
masses to buy our product, we want to focus on messaging more traditional
attributes such as price, quality or service. A product’s “greenness” is likely
secondary for many mainstream consumers. For green marketers then, the Holy
Grail may be to offer a product that is competitive on dimensions both traditional
and eco-friendly.

This would result in the greatest number of products sold and greatest impact on
the environment. As such, the green product paradox presents quite the challenge
for a marketer. For individual companies, such products cane both profitable and
socially responsible. It is only by looking at the forest from the trees and perhaps a
little into the future does it become apparent that, in aggregate, such products may,
paradoxically, have a negative impact.

This paper is been focused on the Green Products and its marketing environment
and its growing marketing potentiality.The green marketing has evolved over a
period of time. According to Peattie (2001), the evolution ofgreen marketing has
three phases. First phase was termed as “Ecological” green marketing, and during
thisperiod all marketing activities were concerned to help environment problems
and provide remedies forenvironmental problems. Second phase was
“Environmental” green marketing and the focus shifted on cleantechnology 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.

Ref:

 questjournals.org/jrbm/papers/vol3
 www.questjournals.org

Books

 Ottoman, Jacquelyn, and Miller, Edmond Shoaled. (1999). Green Marketing

Opportunities for
 Innovation. New York: McGraw-Hill.
 Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian
Management, Vol-64, April-2007
  Ottman, J.A. et al, "Avoiding Green Marketing Myopia", Environment,
Vol-48, June-2006

Websites

 www.greenmarketing.net/stratergic.html
 www.epa.qld.gov.au/sustainable_ industries

Green Marketing Definition

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 in an environmentally friendly way, such
as:
 Being manufactured in a sustainable fashion
 Not containing toxic materials or ozone-depleting
substances
 Able to be recycled and/or is produced from recycled
materials
 Being made from renewable materials (such as
bamboo, etc.)
 Not making use of excessive packaging
 Being designed to be repairable and not "throwaway".
Ref:
 https://www.thebalance.com/green-marketing

Green marketing consists of all activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants, such that the satisfaction of these needs and wants
occurs, with minimal detrimental impact on the natural environment.
Impacts of Green Marketing:

Green marketing affects positively the health of people and the ecological environment.
People are aware of pure products and pure methods of producing, using, and disposing the
products. It encourages integrated efforts for purity in production and consumption as well.

We can witness following impacts of green marketing:

1. Now, people are insisting pure products – edible items, fruits, and vegetables based on
organic farming. The number of people seeking vegetarian food is on rise.

2. Reducing use of plastics and plastic-based products.

3. Increased consumption of herbal products instead of processed products.

4. Recommending use of leaves instead of plastic pieces; jute and cloth bags instead of plastic
carrying bags.

5. Increasing use of bio-fertilizers (made of agro-wastes and wormy-composed) instead of

chemical fertilizers (i.e. organic farming), and minimum use of pesticides.

6. Worldwide efforts to recycle wastes of consumer and industrial products.

7. Increased use of herbal medicines, natural therapy, and Yoga.

8. Strict provisions to protect forests, flora and fauna, protection of the rivers, lakes and seas
from pollutions.

9. Global restrictions on production and use of harmful weapons, atomic tests, etc. Various
organisations of several countries have formulated provisions for protecting ecological
balance.

10. More emphasis on social and environmental accountability of producers.

11. Imposing strict norms for pollution control. Consideration of pollution control efforts and
eco-technology in awarding IS), ISO 9000, or ISO 14000 certificates and other awards.

12. Declaration of 5th June as the World Environment Day.

13. Strict legal provisions for restricting duplication or adulteration.

14. Establishing several national and international agencies to monitor efforts and activities of
business firms in relation pollution control and production of eco-friendly products.
Ref:

 http://www.yourarticlelibrary.com/marketing/green-marketing-meaning-
and-importance-of-green-marketing/48587

Green Marketing's Objectives

Green marketing is important for a number of reasons, from eliminating

wastefulness to educating consumers about how a company is maintaining eco-
friendly measures. Here are some other objectives to consider when thinking about
green marketing.

1. Avoiding waste: Whether it's creating biodegradable product packaging

(meaning it can be broken down by biological means), cutting down on water
consumption, or reducing the amount of trash that goes into landfills, green
marketing is just as concerned with avoiding waste as putting forward an eco-
friendly face to the public.

2. Reinventing products: Products themselves can be modified to lessen the impact

on the environment. For example, Method sources its ingredients from many plant-
derived ingredients, which means its safer for humans, not toxic to family pets who
might accidentally ingest it; and more environmentally-friendly by being water-
soluble and dispersing safely into the environment.

3. Making green while being green: Of course, companies that promote green
products want to not only be good stewards of planet Earth, but make a profit while
doing so. Green marketing allows businesses to capitalize on the subset of the
population willing to pay a little more to lessen their footprint on the environment
and protect the atmosphere.

4. Changing processes: Consumers aren't the only ones that need to be concerned
with environmental impact. Green marketing also encourages businesses to
properly utilize resources such as water consumption and electricity. Changing
processes also means looking for renewable materials, using alternative energy
sources and finding ways to deliver products in a more fuel-efficient manner.

5. Creating eco-friendly messaging: Green marketing's biggest ''marketing''

accomplishment might be in messaging. Green marketing works to help consumers
understand a product's green benefits and a company's commitment to the
environment. It's also an important avenue in which to educate people about
sustainability and the environment.

Ref:

 https://study.com/academy/lesson/why-is-green-marketing-important-
objectives-benefits.html
Concept of Green Marketing:
Concept of green marketing concerns with preproduction with the use of advanced
technology, comfortable and luxurious life, style, severe competition, use of
unhealthy marketing tactics and techniques to attract customers, section of
ecological environment.

Modern marketing has created a lot of problems. Growth in marketing activities

resulted into rapid economic growth, mass exaggeration in advertising,
liberalization and globalization, creation of multinational companies, retailing and
distribution by giant MNCs, etc., created many problems.

Departmental stores, specialty stores, and shopping malls are flooded with useful
as well as useless products. These all factors have threatened welfare of people and
ecological balance as well. Particularly, giant factories have become the source of
different pollutions. Production, consumption and disposal of many products affect
environment adversely.

Excessive pollution has provoked the Nature and the Nature starts behaving in
unnatural ways (in form of global warming v/s global cooling, heavy rains v/s
draught, and other natural calamities like frequent earthquakes and tsunami,
cyclones, epidemics, and so forth). Economic growth via production and
consumption threatens peaceful life of human being on the earth.

Green marketing is an attempt to protect consumer welfare and environment (the

nature) through production, consumption, and disposal of eco-friendly products.

Ref:
Why should Green Marketing be adopted?
According to Miller (2008), green businesses continue to develop, and new
companies are joining the trend. Of course sometimes the change is a deliberate
choice of the company, but sometimes not so much. Polonsky (1994) noticed five
explanations to the reasons for firms to use green marketing.

1 Opportunity
The first is from Keller (1987) and Shearer (1990) who noticed that organizations perceive green marketing
as an opportunity that can be used to achieve its objectives. Since society becomes greener, the demand
for greener goods and services will rise. In order to answer to these new needs, marketing will have to
become greener, leading companies and other organizations towards sustainable management (Peattie,
1992).
People generally want to do the right thing, so the challenge and opportunity for the green marketer is to
make it easy for people to do so (Queensland Government, 2006). If there is a product with equal quality,
price, performance and availability the consumer will choose the product with environmental benefit, this
fact gives goods with environmental characteristics a competitive advantage (Polonsky, 1994).

2 Social Responsibility
The organizations believe that they have a moral obligation to be more socially responsible (Keller, 1987).
Companies are more and more aware that their corporate responsibility as active members of the society is
becoming an important factor in global competition and therefore they must behave in an environmentally
responsible way (Polonsky, 1994). The society feels really concerned about these issues and now stock
exchanges rates companies not only on the immediate financial results as they used to, but also in terms of
corporate responsibility in the social and environmental fields (Glorieux-Boutonnat, 2004). In this way
environment manager positions have been created in order to meet requirements of the new sustainability
agencies. A lot of companies choose to become green because of their image.

3 Governmental pressure
The third reason is that governmental bodies are compelling firms to turn out to be more conscientious
(NAAG, 1990). Some firms opt to green their systems, policies and products due to economic and non-
economic pressures from their customers, business partners, managers, civilians and other stakeholders
(Prakash, 2002). The role of the government is to protect consumers and society and this protection has
significant green marketing implications (Polonsky, 1994). By introducing governmental regulations the
government protects consumers in several ways: reducing or modifying consumption of harmful goods,
ensure that the rules are respected, etc (Polonsky, 1994).

4 Competitive pressure
Competitors' environmental activities push firms to modify their environmental marketing activities (NAAG,
1990). The firms have the desire to sustain their competitive position and tend to imitate competitors
promoting their environmental behaviours (Polonsky, 1994).

5 Cost or profit issues

The last reason pushing a company to become green is the cost related with waste disposal or reductions
in material usage obliging companies to modify their behaviour (Azzone & Manzini, 1994). Sometimes to
modify the process of production can involve money but it will save money in the long term. Moreover, the
implementation of sustainable marketing practices is good for cost cutting but also for the customer
relationship management and the return on investment (Miller, 2008). Peattie and Crane (2005) also
claimed that firms can be enthusiastic about green marketing when it involves short-term cost savings
(packaging reduction, cost savings). Polonsky (1994) added that when trying to minimize waste, firms are
often forced to re-examine their production processes and it often leads to more effective processes often
reducing waste but also raw materials.

Ref:

 https://www.ukessays.com/essays/marketing/the-concept-of-green-
marketing-marketing-essay.php
CHALLENGES IN GREEN MARKETING

1.Need for Standardization

It is found that only 5% 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
labeling and licensing.

2.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 India's
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.

3.Patience and Perseverance

The investors and corporate need to view the environment as a major long-term
investment 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.

4.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 lose its market acceptability.

Ref:

 http://philipkotler2013.blogspot.in/2011/11/green-marketing.html
EXAMPLES OF GREEN MARKETING IN INDIA:-

1.Digital Tickets by Indian Railways. :

Recently IRCTC has allowed its customers to carry PNR no. of their E-Tickets on
their laptop and mobiles. Customers do not need to carry the printed version of
their ticket anymore.

2.No Polythene carry bags for free :

Forest & Environmental Ministry of India has ordered to retail outlets like
BigBazar,More,Central,D-Mart etc that they could provide polythene carry bags to
customers only if customers are ready for pay for it.

3: Green IT Project:

State Bank of India:-By using eco and power friendly equipment in its 10,000 new
ATMs, the banking giant has not only saved power costs and earned carbon credits,
but also set the right example for others to follow. SBI is also entered into green
service known as “Green Channel Counter”. SBI is providing many services like;
paper less banking, no deposit slip, no withdrawal form, no checks,no money
transactions form all these transaction are done through SBI shopping & ATM
cards. State Bank of India turns to wind energy to reduce emissions. The wind
project is the first step in the State Bank of India's green banking program
dedicated to the reduction of its carbon footprint and promotion of energy efficient
processes, especially among the bank's clients.

4: Lead Free Paints from Kansai Nerolac:-

Kansai Nerolac has worked on removing hazardous heavy metals from their paints.
The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony
can have adverse effects on humans. Lead in paints especially poses danger to
human health where it can cause damage to Central Nervous System, kidney and
reproductive system. Children are more prone to lead poisoning leading to lower
intelligence levels and memory loss.

5.Wipro's Green Machines:-

Wipro Infotech was India's first company to launch environment friendly computer
peripherals. For the Indian market, Wipro has launched a new range of desktops
and laptops called Wipro Greenware. These products are RoHS (Restriction of
Hazardous Substances) compliant thus reducing e-waste in the environment.

Ref:

 http://philipkotler2013.blogspot.in/2011/11/green-marketing.html
Advantages of Green Marketing:

Companies that develop new and improved products, and services with
environment inputs in mind give themselves access to new markets, increase their
profit sustainability and enjoy a competitive advantage over the companies that are
not concerned for the environment.

Some of the advantages of green marketing are as follows:

1. It ensures sustained long-term growth along with profitability.

2. It saves money in the long run, although initial cost is more.

3. It helps the companies to market their products and services keeping the
environment aspects in mind. It helps in accessing the new markets and enjoying
competitive advantage.

4. Most of the employees also feel proud and responsible to be working for an
environmentally responsible company.

5. It promotes corporate social responsibility.

Ref:

 http://www.yourarticlelibrary.com/marketing/green-marketing-evolution-
reasons-advantages-and-challenges
Green Marketing's Benefits
Green marketing refers to businesses using environmentally friendly production, distribution and sourcing
practices that allow these companies gain favor with consumers. In some instances, business must use
specific manufacturing techniques to earn the right to advertise their products green.

Internal Benefits

Marketing starts before a business begins advertising or promoting its products. It

includes strategies covering product development, pricing and distribution. In
addition to helping boost sales, green marketing can help companies reduce
operating and production costs, specifically by lowering energy usage.
Environmentally sensitive companies are more attractive to potential employees
who seek to become part of a positive corporate culture.

External Benefits

When a business uses energy efficient lighting, heating and cooling, reduces its
water use, recycles office materials, organizes employee community cleanup
activities, uses recycled materials and creates less waste, it generates positive
public relations in its community and industry and with customers. It can advertise
itself as a green company or its products as green on its product packaging, in its
advertising and on its website. This can create brand preference or loyalty and
boost sales and profits. Green marketers also can qualify as vendors or suppliers
with government agencies and businesses that prefer to do business with these
types of businesses.

Ref:

 http://smallbusiness.chron.com/benefits-green-marketing-68744.html
What Are the Benefits of Green Marketing?

Environmental responsibility has been added to the corporate agenda in the 21st
century. Businesses are held accountable by both the government and society to
operate in environmentally friendly ways. Green marketing is used by companies
to communicate a brand's emphasis on business practices or products that are
beneficial for the environment.

 Product Opportunities

Growing consumer awareness and interest in preserving and utilizing natural

resources has contributed to an influx in sales and marketing of environmentally
friendly and reusable products. "Organic" has become a key word in marketing.
Sales of organic products reached $26.6 billion in 2009, according to Barbara
Haumann in her April 2010 report for the Organic Trade Association. $24.8 billion
was generated from organic food sales and an additional $1.8 billion was realized
through non-food organic products.

 Enhanced Environmental Awareness

The Encyclopedia of Business (2nd Edition) pointed out that a benefit that
resonates with industry and consumers alike is the expansion of environmental
awareness. As companies market their green-friendly efforts and products, they
simultaneously encourage the green initiative. This perpetuates the efforts by other
companies to operate with more green responsibility and causes consumers to
remain vigilant in holding companies accountable for their actions.

 Premium Prices

Keeping up with environmental expectations can be expensive for a company.

Preserving rain forests, recycling, reducing waste and other green-friendly actions
take time, resources and concerted effort. A benefit of green marketing expansion
is that consumers may become more comfortable and accepting of paying higher
premium prices to acquire earth-friendly products or to support companies that
engage in green activities. The Encyclopedia of Business acknowledges that it is a
crucial task of marketers to get customers to take on these premium prices.

 Supplier Expansion

A challenge faced by early adopters of the environmental movement was the

limited supply of earth-friendly food and non-food products. Companies that
initially sold organic foods faced high prices due to a limited number of organic
farmers and suppliers. However, Haumann notes in her report "farmers’ markets,
co-ops and CSA (community-supported agriculture) operations gained a lot of
interest as consumers increasingly look for locally and regionally produced organic
foods." Grocery retailers also benefit from stronger local supplies of organic food
products.
Ref:

 https://bizfluent.com/info-7745934-benefits-green-marketing.html

Green washing

Greenwashing (a compound word modelled on "whitewash"), also called "green

sheen", is a form of spin in which green PR or green marketing is deceptively used
to promote the perception that an organization's products, aims or policies are
environmentally friendly. Evidence that an organization is greenwashing often
comes from pointing out the spending differences: when significantly more money
or time has been spent advertising being "green" (that is, operating with
consideration for the environment), than is actually spent on environmentally
sound practices. Greenwashing efforts can range from changing the name or label
of a product to evoke the natural environment on a product that contains harmful
chemicals to multimillion-dollar advertising campaigns portraying highly polluting
energy companies as eco-friendly. Publicized accusations of greenwashing have
contributed to the term's increasing use.

Ref:

https://en.wikipedia.org/wiki/Greenwashing

Greenwashing is the practice of making an unsubstantiated or misleading claim

about the environmental benefits of a product, service, technology or company
practice.

Greenwashing can make a company appear to be more environmentally friendly

than it really is. It can also be used to differentiate a company's products or services
from its competitors by promising more efficient use of power or by being more
cost-effective over time.

Ref:

http://searchcrm.techtarget.com/definition/greenwashing
Eco Labels
An individual's belief that an environmental claim lacks honesty can have a negative effect on attitude toward a
brand. If, on the other side, the consumer grants credibility to the claim, the individual will behave more
respectfully toward the environment. The problem in extending that credibility to a brand is that consumers
interested in ecological products generally are skeptical of commercial advertisements. This skepticism is due to
various factors such as lack of language, the absence of scientific knowledge necessary to interpret advertising
meaning, and, in particular, the falsehoods and exaggeration of some advertising techniques. To resolve this
problem, independent organizations may choose to guarantee messages on the environmental benefits of brands
with environmental labeling systems sponsored by independent organizations. This practice tries to diminish
perceived biases in environmental information by promoting standardization of the information with the aim of
improving confidence in the evaluation of environmental benefits of products—all of which should positively
affect the purchase intention.

Overview of the different types of ecolabels used to indicate credibility to consumer.

Ref:

https://en.wikipedia.org/wiki/Green_marketing
GOLDEN RULES OF GREEN MARKETING

1. Know you're Customer:

Make sure that the consumer is aware of and concerned about the issues that your
product attempts to address, (Whirlpool learned the hard way that consumers
wouldn't pay a premium for a CFC-free refrigerator because consumers dint know
what CFCs were.

2. Educating your customers:

isn't just a matter of letting people know you're doing whatever you're doing to
protect the environment, but also a matter of letting them know why it matters.
Otherwise, for a significant portion of your target market, it's a case of "So what?"
and your green marketing campaign goes nowhere.

3. Being Genuine & Transparent:

means that a) you are actually doing what you claim to be doing in your green
marketing campaign and

b) the rest of your business policies are consistent with whatever you are doing
that's environmentally friendly. Both these conditions have to be met for your
business to establish the kind of environmental credentials that will allow a green
marketing campaign to succeed.

4. Reassure the Buyer:

Consumers must be made to believe that the product performs the job it's supposed
to do-they won't forego product quality in the name of the environment.

5. Consider Your Pricing:

If you're charging a premium for your product-and many environmentally

preferable products cost more due to economies of scale and use of higher-quality
ingredients-make sure those consumers can afford the premium and feel it's worth
it.

6. Giving your customers an opportunity to participate:

means personalizing the benefits of your environmentally friendly actions,

normally through letting the customer take part in positive environmental action.

Ref:

http://www.ijsrm.in/v4-i4/3%20ijsrm.pdf
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.


 
Packaging changes.


 
Modifying advertising.
DIFFERENT PHASES OF GREEN MARKETING

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

Ref:

http://www.ijsrm.in/v4-i4/3%20ijsrm.pdf
SWOT Analysis of Green marketing

Ref:

http://epratrust.com/articles/upload/35..pdf?
GREEN MARKETING MIX
PRODUCT
Entrepreneurs wanting to exploit emerging green markets either: Identify customers’
environmental needs and develop products to address these needs or will develop
environmentally responsible products to have less impact than competitors.

The increasingly wide variety of products on the market that support sustainable
developments are:


 goods, such as Quick’ N Tuff housing materials made from
Products made from recycled
 recycled broccoli boxes.

 
Products that can be recycled or reused.



 save water, energy or gasoline, save money and reduce
Efficient products, which
 environmental impact.


Products with environmentally responsible packaging, McDonalds, for example, changed
 their packaging from polystyrene clamshells to paper.

 
Products with green labels, as long as they offer substantiation.



Organic products-many customers are prepared to pay a premium for organic
 butchers, for example, promote the
products, which offer promise of quality. Organic
 added qualities such as taste and tenderness.

 
A service that rents or loans products-toy libraries.

Whatever the product or service, it is vital to ensure that products meet or exceed the quality
expectation of customers and is thoroughly tested.

PRICE
Pricing is the critical element of the marketing mix. Most customers will only be prepared to
pay a premium if there is a perception of additional product value. This value may be
improved performance, function, design, visual appeal or taste. Environmental benefits will
be often being the deciding factor between products of equal value or quality.

Environmentally responsible products, however are often less expensive when product life
cycle coast are taken into consideration, for example fuel-efficient vehicles, water efficient
printing and non-hazardous products.

PLACE
The choice of where and when to make products available will have significant impact on the
customers you attract. Very few customers go out of their way to buy green products merely
for the sake of it. Marketers looking to successfully introduce new green products should
position them broadly in the market place so they are not just appealing to a small green
niche market.
The location must also be consistent with the image you want to project and allow you to
project your own image rather than being dominated or compromised by the image of venue.
The location must differentiate you from the competitors. This can be achieved by in-store
promotions and visually appealing displays or using recycled materials to emphasize the
environmental and other benefits.

PROMOTION
Promoting products and services to target markets include paid advertising, public relations,
sales promotions, direct marketing and on-site promotions. Smart green marketers will be
able to reinforce environmental credibility by using sustainable marketing and
communication tools and practices. For example, many companies in the financial industry
are providing electronic statements by email; e-marketing is rapidly replacing more
traditional marketing methods and printed materials can be produced using recycled materials
and efficient processes such as waterless printing.

Retailers, for example are recognizing the value of alliances with other companies,
environmental groups and research organizations. When promoting their environmental
commitment to reduce the use of plastic bags and promote their green commitment, some
retailers sell shopping bags and promote their green commitments.
Green Marketing Process
Green marketing process comprises with external and internal P’s. After integrating external
and internal P’s, green success will automatically come through four S’s. Here external 7 P’s
consists of Paying customers, Providers, Politicians, Pressure groups, Problems, Predictions
and Partners; internal 7P’s consists of Products, Promotion, Price, Place, Providing
information, Processes and Policies. After integrating external and internal 7P’s, we can find
out the green successes through 4 S’s such as Satisfaction – of stakeholder needs, Safety – of
products and processes, Social acceptability – of the company and Sustainability – of its
activities.

External Green P’s Internal Green P’s

 Paying customers  Products

 Providers  Promotion

 Politician’s  Price

 Pressure groups  Place

 Problems  Providing information

 Predictions  Processes

 Partners  Policies

The S’s of Green Success

 Satisfaction
 Safety
 Social Acceptability
 Sustainability
Initiatives Taken By Government

Development of ISO 14000 Series of Standards.

ISO has been developed to help any company in any country to meet the goal of sustainable
development and environmental friendliness. The ISO 14000 family of standards (i.e. ISO
14001, 14004, 14010, 14011 and 1412) were published as an official document in 1996. The
ISO series aims to provide guidance for developing a comprehensive approach to
environmental management and for standardizing some key environmental tools of analysis
such as labeling and life cycle assessment.

Eco-Labeling Initiatives
Eco label provide information regarding the environmental performance of products. The
objective of eco-labeling is to provide authentication to genuine claims regarding the
environmental impact of products and processes by manufacturers. In India the government
has introduced the eco-mark scheme since 1981. The objectives of the scheme are:

• To provide incentives to manufacturers and importers to reduce the adverse environmental

impact of products.

• To reward genuine initiatives by companies to reduce adverse impact of environmental

impact of products.

• To assist consumers to become environmentally responsible in their daily lives by providing

them information to take account of environmental factors in their daily lives.

• To encourage citizens to purchase products which have less environmental impact.

Eco-Labeling Schemes in India

The Ministry of environment and forest of government of India has prescribed the following
criteria for products that:

• They cause substantially less pollution than comparable products in production, usage and
disposal.

• They are recycled and/or recyclable whereas comparable products are not.
• They contribute to a reduction on adverse environmental health consequences.
• They comply with laws, standards and regulations pertaining to the environment.
• Their price is not exorbitantly higher than comparable products.

Eco-Mark in India
Under the concept, products which are less harmful to the environment or have benign impact on
environment through the various stages of development-manufacture, packaging, distribution, use
and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the
logo for Eco-Mark scheme in India. The familiar earthen pot has renewable resource like earth,
does not produce hazardous waste and consume little energy in making. As a symbol it puts
across its environmental message. Its image has the ability to reach people and help to promote a
greater awareness of the need to be kind to the environment. The logo Eco-Mark scheme signifies
that the product which carries it does least damage to the environment.
GREEN CONSUMER BEHAVIOUR
Environmentally Conscious Consumer Behaviour
‘Environmentally Conscious Behaviour’ (ECCB) is consumer behaviour based on some
awareness of the environmental impacts associated with a product or service, and a desire to
reduce those impacts. Many researchers in the field of consumer’s psychology and market
research have demonstrated a substantial growth in ECCB across a range of markets. It has
been demonstrated through case studies that how product developers and marketers have
capitalized on this positive attitude and effectively differentiated their product in terms of
their ‘environmentally friendly’ character.

The term environmental consciousness does not have a standardized definition in the body of
academic literature; the reason can be due to arousal of the term out of political and everyday
language. Environmental consciousness is the desire to protect flora and fauna, a willingness
to scrutinize the consequences of economic activity and a willingness to combine long-term
with short-term planning.
Attributes of the Green Consumers

To take the advantage of the emerging green market, it is important to understand who green
customers are and the factors influencing their purchasing decisions and behaviour.

Attributes of Environmentally
Implication for Green Marketers
Conscious Consumers

Use the influence of children to encourage parents

Will most likely be well educated,
to try green products. The green consumers of the
young adult women who have more
future are generally knowledgeable about
money to spend?
environmental issues. They should be offered
samples and increments to try products.

Will expect green products to function Effectively communicate assurance of quality for
as non-green products and won’t pay example quality of performances, look, feel, fit,
much extra or sacrifice quality for comfort, durability.
greener products.

Will not buy green products on the
basis of environmental benefits alone.
Products choice is still based on
whether it meets their basic want or
need. Environmental features are added
selling points.
Like environmental attributes such as energy
efficiency or toxic substance reduction with other
benefits such as lower price, convenience, or
quality of life improvements.

Will be more likely to respond to Emphasize personal benefits by using terms such as
product attribute that will personally ‘safe’, ‘non-toxic’, ‘cost effective’ rather than more
benefit them. generalized green messages such as
‘biodegradable’ or ‘ozone friendly’.

Will tolerate only minimal Making the use of product simple- e.g. minimize or
inconvenience in using green products eliminate refilling bottles. Select mainstream
and don’t want to go out of their way to distributors wherever possible. Offer one-stop
buy them. shopping and eye appealing displays.

Will be analytical, eager to learn, and Reinforce product benefits with evidence of
can be cynical about corporate claims
for green product unless they have
independent verification.
Will not expect companies to have
perfect green credentials, but will look
for a commitment to improve and
evidence backed by facts.
corporate performance and improvements. Educate
consumers about environmental issues and your
efforts through a variety of means. Provide credible
environmental endorsements. Use labels in
compliance with government labeling guidelines,
to convey precise, detailed information about your
product and its packaging.
Communicate your steps towards sustainability and
commitments to improvement. Seek feedback and
promote your efforts to respond to customer
concerns.
FUTURE GROWTH OF GREEN MARKETING

There are many lessons to be learned to avoid green marketing myopia, the short version of all
this is that effective green marketing requires applying good marketing principles to make green
products desirable for consumers. The question that remains, however, is, what is green
marketing’s future? Business scholars have viewed it as a “fringe” topic, given that
environmentalism’s acceptance of limits and conservation does not mesh well with marketing’s
traditional axioms of “give customer what they want” and “sell as much as you can”.

Evidence indicates that successful green products have avoided green marketing myopia by
following three important principles:

Consumer Value Positioning:

 
Design environmental products to perform as well as (or better than) alternatives.

 value of environmental products and target
Promote and deliver the consumer desired
relevant consumer market segments.


Broaden mainstream appeal by bundling consumer desired value into environmental
products.

Calibration of Consumer Knowledge:


Educate consumers with marketing messages that connect environmental attributes with
desired consumer value.
 
Frame environmental product attributes as “solutions” for consumer needs.

Create engagingand educational internet sites about environmental products desired
consumer value.

Credibility of Product Claims:



Employ environmental product and consumer benefit claims that are specific and
meaningful.

Procure product endorsements or eco-certifications from trustworthy third parties and

educate consumers about the meaning behind those endorsements and eco-
certifications.

Encourage consumer evangelism via consumers social and internet communication
network with compelling, interesting and entertaining information about
environmental products.
STRATEGIES IN GREEN MARKETING
I. PRODUCT DIFFERENTIATION
Organizations are putting continuous efforts to differentiate their products and services using
green marketing practice. In a wide range of markets including retailing etc companies have
used eco performance to differentiate and to compete. Products with poor eco performance can
become targets for new substitution, as a result of this many organizations are coming up with
greener ideas to differentiate their products from competitors.
CONSUMER VALUE POSITIONING- organizations can design environmental products to
perform as well as provide alternatives. In addition to this promoting and delivering the
consumer desired value of environmental products and target relevant consumer market
segments can help the organization to differentiate.

CALIBERATION OF CONSUMER KNOWLEDGE-Educates customers with marketing

messages that connect environmental product attributes with desired consumer value.

II. DESIGNING BIO-DEGRADABLE PACKAGING

It is seen that promotion of green products strongly influences the consumers buying decisions. It
is one of the most important factors of product attractiveness. Thus it has been indicated that bio-
degradable packaging will affect in a strong and moderate way respectively on their buying
decisions.
As a marketing strategy the companies should modify the product packaging by using only
the recycle as well as handmade paper in packaging. Instead of being more mechanized the
companies must find creative ways reusing the waste products which are harmful to the
environment. Manufacturing companies which are using plastic for packaging should meet
certain standardization. For example Bisleri plastic bottles or the water bottles can last only
for 15 days and after that it generates certain chemicals which are harmful and there is no
reusability of this kind of plastic. Companies should modify these kinds of packaging styles
and find out some innovative ways to recycle it.

III. PRODUCT STRATEGY

In this strategy marketers can identify customer’s environmental needs and develop products
to address this issue, produce more environmentally responsible packages and insure that
products meet or exceed the quality expectation of customers. In addition to that marketer can
charge higher price with highlighting eco-friendliness of the products.

IV. DISTRIBUTION STRATEGY

In case of this strategy obtaining dealer support to green marketing practice is essential. The
location must differentiate from competitors and it can be achieved by in-store promotions and
displays by using recycle materials to emphasize the environmental and other benefits. Even
though distribution has no big involvement in green marketing, few consumers are willing to
get the services from places and distribution channels which are not cause to environmental
pollution.

V. LIFE-CYCLE ANALYSIS
Brands which aspire to be sustainable must “get their house in order” before they start planning
any green marketing initiatives. The best brands are performing life cycle analysis- complex
assessments which provide critical data on social, environmental and economic impact of
products through the supply chain production process and after the purchase. Life cycle
analysis tells a brand just how far it needs to go before it claims to be sustainable.
VI. INCENTIVES AND STRUCTURAL FACTORS

Commercialization programs and incentives help get new technologies introduced examples
include fleet programs to cultivate strategic niche markets and by providing financial
incentives such as the advanced vehicle tax credit proposal in case of green vehicle purchase.
Consumers can be motivated by incentives and awards to:

Curtail – Reduce the impact on the environment by modifying extant living patterns.

Maintain – Keep equipment in good working order.

Be efficient – Undertake structural changes such as buying environmental friendly

equipment.
“Green” Logistics
Is in the process of coming onto corporate radar screens, but
companies need to see a cause and effect on profitability before
they commit much more than superficial efforts toward green
logistics. Everyone knows how important this is, but market
analysts and investors likely won’t add much about green logistics
into the “plus” column until it starts to impact overall
profitability. It continues activity and hype around “green” supply
chains. From a supply chain perspective, most companies are
focusing on the low-hanging fruit: optimizing their
transportation operations, LEED certified buildings,
minimizing/eliminating packaging, and considering carbon-
footprint in network design (Llama soft, Ilog, Infor, Carbon View,
Maersk Logistics, and IBM all have solutions in this area). However,
a lot more work is required on the standards front, which is starting
to occur. Also, in my opinion, large-scale progress in this area won’t
occur in the US and elsewhere without government intervention
(e.g., regulations, tax/financial incentives, etc).
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.
NATIONAL AND INTERNATIONAL SCENARIO
In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more for
ecologically compatible products. By 1991, environmentally conscious individuals were
willing to pay between 15-20 percent more for green products. Today, more than one-third of
Americans say they would pay a little extra for green products.

An important challenge facing marketers is to identify which consumers are willing to pay
more for environmentally friendly products. It is apparent that an enhanced knowledge of the
profile of this segment of consumers would be extremely useful.

Everett Rogers, communication scholar and author of “Diffusion of Innovations”, claims that
the following five factors can help determine whether a new idea will be adopted or not,
including the idealism of the shift towards “green”:

1. Relative advantage: is the degree to which the new behaviour is believed to accrue
more beneficial outcomes than current practice.

2. Observability: is how easy it is to witness the outcomes of the new behaviour.

3. Trial ability: is the ease with which the new behaviour can be tested by an individual
without making a full commitment.

4. Compatibility: is the degree to which the new behaviour is consistent with current
practice.

5. Complexity: is how difficult the new behaviour is to implement.

GPNI is an evolving network of professionals interested and active in the general area
of sustainable consumption and production- more specifically: Green Purchasing and
Public Procurement. It is currently a loose informal network of professionals
primarily operating as an internet based electronic forum.

The objectives of the GPNI are:

1. To create awareness amongst Indian industry and other stakeholders about Green
Purchasing and Procurement (GPP).

2.To encourage and facilitate implementation of GPP and Greening Supply Chains
(GSC) projects to enhance the competitiveness of the Indian industries.
GREEN RAW MATERIAL
This refers to using recycled material or using material, which does not have a negative
impact on natural resources like resulting in problems such as deforestation and pollution.

Example: Gridcore Systems International – demonstrated the use of Recycled Building

Material. The company was looking for an alternative building material in-order to reduce the
impact on environment. While researching they discovered space board, a new type of
building panel developed by the Forest Products laboratory. Space board can be
manufactured from various recycled or agricultural fibers, and due to a honeycomb the
interior design is just as strong as and several times lighter than conventional fiberboard.

“GREEN” IN MANUFACTURING

This focuses on using renewable energy for production and minimizing air and water
pollution during the manufacturing process.

Example: Energy Star is helping businesses and consumers save money and check
pollution. Energy star has its own pre-defined parameters and gadgets which conform to the
energy efficiency standards. The businesses that join hands with energy star sign an MOU
and upgrade their facility as per the requirement outlined by Energy Star. There are about
2,400 corporations, hospitals, schools and other organizations, which are energy star
compliant in the US today.

The real estate developers, architects and environmentalists across the globe are working
together to create the next wave of modern eco-friendly projects: green buildings and
manufacturing facilities. They are using energy conservation appliances and recycling
building products and water harvesting techniques in their projects.
GREEN” IN PRODUCT DEVELOPMENT
This refers to either environment friendly or environment efficient products as demonstrated
by the following examples.

Example: Kodak’s Recyclable Camera When Kodak created its first disposable camera it
also solved the waste disposal problem by initiating a ‘camera take back’ scheme during
picture processing. This not only reduced the waste disposable problem, it also saved Kodak
the manufacturing costs for new cameras. This made it completely recycled camera.

Example: Philips Earthlight Compact Fluorescent Light Bulbs With relentless efforts on
research and development the company was successful in producing compact fluorescent
light bulbs, which are the most energy efficient bulbs.
 “GREEN” IN SUPPLY CHAIN

Example: McDonald’s is often blamed for polluting the environment because much of their
packaging finishes up as roadside waste. It must be remembered that it is the uncaring
consumer who chooses to dispose of their waste in an inappropriate fashion.

With the intent to cut costs and work on eco-friendly image and practices McDonald’s tried
to reduce the amount of material disposed by its stores. McDonalds asked the supplier to do
away with the cartons for napkins. The supplier suggested a better way and came up with
dimpling pattern on napkins, which enabled the supplier to pack 25% more napkins in one
box and reduction in shipping cost accordingly. McDonalds also allied with Environment
Defense Fund (EDF) and created a waste reduction plan. It also made a Paper Task Force to
focus on paper waste reduction and better solid waste management.

Some food chain retailers are working on Green Procurement program to help purchasing
officers to buy products and services that have a lower environmental impact than
comparable products and services.
“GREEN” IN PACKAGING
Packaging is a key element of marketing mix for promoting “Green washing”. It can also be
an effective tool to display the “Green” component of the product.

Natural Package for a Natural Product

When creating product materials, markets need to remember that a “Green” product is appealing
to consumers for its benefits to the environment and for its roots in natural resources.

There should be a consistent look for the product package, or materials that appear natural,
not glossy or extravagant.

“Green” consumers tend to appreciate consistence in package and product. They will
appreciate the usage of recycled paper and other environment friendly materials. That will
help manufacturers/suppliers gain customer loyalty and product credibility.

Third Party Certification Seal on Package

In order to win consumer trust and for product credibility many companies go in for a third
party certification. This helps build trust and acceptability by the consumer.

A third party seal guarantees the consumer that the product fulfills its promise and is true to
his claim. One such third party in the USA is the Green-e Program of the Center for Resource
Solutions. Certification provides an independent third-party review of the program similar to
the ISO 9000 or CMMI Six Sigma level of certifications, which mat help build consumer
confidence. Once a green product earns certification, they can publicize this achievement and
promote their certification through the use of the Green-e logo on their marketing materials
and website.
 “GREEN” IN SERVICES
With increased demand for value-based marketing, there is also growing demand of “Green”
services. Global customers are not only interested in cost cutting through outsourcing but are
also looking for energy efficient IT operations.

Example: ITC Infotech is a good example to understand how to package the services “Green”
ITC Infotech is a Bangalore based independent Subsidiary of ITC Ltd. At corporate level ITC is
working to establish itself as a carbon free company. The company is working on “Triple Bottom
Line” i.e. social, economic and environmental capital. The company is involved in many
community driven initiatives. It is one of the 10 companies globally and first one from India to
start publishing sustainability report in compliance with G3 guidelines of Global Reporting
Initiative. The company is investing in large-scale plantations to wash away its carbon positive
image. It is also focusing on water harvesting and working towards zero solid waste by
recycling.

36 Cigarette warehouses were converted to make ITC Infotech’s global development campus
in the heart of Bangalore. The company has used recycled material and virtualization tools for
optimizing energy usage in its data centers. It is also working on digital infrastructure to
connect the rural farmers to the Internet using solar panels for power, so that the Indian farmers
can get information on crop research and monitor weather trends. The company is using these
as a service differentiator and positioning itself as Green service Provide. The corporate image of
ITC Ltd. is further enhancing the True Green Image.