Chapter I

Introduction to Green Marketing

 CHAPTER I

INTRODUCTION TO GREEN MARKETING

GREEN MARKETING

Green marketing as in the case of traditional marketing has four components in its
marketing mix. The four components are called 4ps which are diagrammatically given
below.

Green marketing Mix

Green Product Price Promotion Place

Product Variety List Price Sales Promotion Channels
Product Quality Discounts Advertising Coverage
Product Design Allowances Sales Force Assortments
Product Features Payment Terms Public Relations Locations
Brand Name Credit Terms Inventory
Direct Marketing
Packaging Transport
Sizes
Services
Warranties
Return Facilities

FOUR PS OF GREEN MARKETING

The particular marketing variables under each ‘P’ are shown in the above diagram.
Marketing mix decisions must be made for influencing and impacting the trade channels
as well as the consumers at the end. The four Ps represent the green marketer’s view of the
marketing tools available for influencing the buyers. From a buyer’s point of view, each

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marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that
marketers four Ps generally correspond to the consumers four Cs

Four Ps Four Cs

Product Consumer solution

Price Consumer cost

Place Convenience

Promotion Communication

Winning marketers who change favorably the buying behavior of consumers are
those who meet the buyers’ needs economically, conveniently and with effective
communication. To create a favorable impact on the buying behavior of consumer towards
organic food products green marketers should make use of all the 4ps effectively,
efficiently and with social responsibility.

GREEN PRODUCTS

Countries all over the world have been affected by environment dilapidation which
has made our planet vulnerable and susceptible to natural and man-made disasters.
The government in India has also played a significant role in dilapidating the environment.
Pre-independent India was in the grip of famines which were frequent, severe and
widespread. Extreme scarcity of food products was the pressing problem. Therefore, after
independence planned efforts were taken up. During the first plan period (1951-56)
agricultural sector was given the top most priority. Notable efforts were contemplated and
sizable amount of plan outlay was earmarked to improve productivity and increase
production. Revolutionary changes that were introduced and implemented and the
continuous research on agriculture paved the way for Green Resolution.

Green Revolution

The Green Revolution in India encompasses the period during which Indian
agriculture was transformed into an industrial system due to the adoption of modern
methods and technologies. It was mainly initiated by the great agricultural scientist

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M.S.Swaminathan who is still popularly known as ‘Father of Green Revolution’.
The Revolution in India is ushered in the 1960s that culminated into an impressive increase
in food production.

During the period of Green Revolution all efforts were set on war footing to realize
significant increase in production and improvement in productivity.

Land reform measures like consolidation of fragmented and scattered land holdings
were attempted through the promotion of cooperative farming. Agricultural credit facilities
were extended liberally. Scarce water resources were skillfully managed. Mechanization
of agricultural operations was encouraged and resorted to. High yielding variety of seeds
were invented and introduced. Disease-resistant varieties of crops were raised. Complete
transformation from traditional methods to modern methods of cultivation was ventured
thanks to the initiatives, efforts and contributions by the great agricultural scientists like
M.S. Swaminathan. It was construed that application of chemical fertilizers, insecticides,
pesticides and weedicides were the panacea for regaining the productivity of land last due
to over exploitation and repeated cultivation without applying fertilizers.

All the efforts bore fruit and the country reached self-sufficiency level in food
production and became even the exporter of food grains. The Green Revolution in late 60s
and early 70s ushered into an era of rapid agricultural production, particularly food
production. The Green Revolution may have temporarily saved the day but it was for from
safeguarding the future and promoting a sustainable development. The catalytic agents for
the revolution were chemical fertilizers. With massive inputs of chemical fertilizers,
pesticides, insecticides, weedicides and efficient water management high crop yields were
realized. The Green Revolution paved the way for the imminently dangerous intensive
chemical farming.

CHEMICAL FARMING

Chemical farming is the farming wherein varieties of micro chemical nutrients like
nitrogen, phosphorous and potassium are lavishly applied with view to recoup or regain
the productivity of land last due to repeated cultivation without the application of fertilizer.
Agricultural products as a result were heavily loaded with chemicals. Damaged soils,
expensive and needless farming inputs, water intensive /pollutive, lethal and ecologically

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harmful farming practices which emanated from chemical farming did no good to
agricultural advancement and to the promotion of public health. One of India’s biggest
burdens is the huge central government subsidy on synthetic fertilizers which had
ballooned From Rs. 60 Crores in 1976-77 to a mammoth Rs. 75,000 crores now. This has
made the farmers to go in for chemical farming. The ruinous impact of chemical farming
was not thought of FAO confirms that chemical agriculture is associated with farmers
indebtedness. Chemical farming because of cost escalation has forced the farmers to plug
in into ‘Born in debt, live in debt and die in debt’ trap. Taking advantage of chemical
farming, fertilizer companies have earned abnormal profits and amassed wealth. Fertilizer
subsidies has inflicted maximum damage to Indian agriculture.

ORGANIC FARMING

There is a way out for the vicious cycle of drought debt and declining soil fertility,
food related deformities and deadly diseases. Organic farming shows that way out.
Successive governments have over five decades been incentivizing farmers to adopt
chemical farming. The Green Revolution saved millions from dying of hunger and made
India a food surplus country. It was at that time the farmers did not fully realize the fact
that chemical intensive farming has had a severe impact an eco-system, climate and health
of the masses. Further it had pushed up costs making agriculture unviable for small and
marginal farmers. It is important to note why there is erosion of soil. The earth has been
losing its stop soil at a fast rate primarily due to chemical-heavy farming and deforestation.
At the current rate of soil degradation all the world’s top soil will be gone in 60 years,
cautions the United Nations. India is among the countries where soil degradation is
happening faster than its replenishment. This paints an alarming and gloomy picture, one
in which there will be no farming, no harvest and no food.

There is thus a dire need to rebuild the soil and natural or organic farming promised
to do it. Organic farming is otherwise called “Zero Budget Farming”. In her maiden budget
presentation Finance Minister Nirmala Sitharaman insisted Zero Budget Farming concept.
What she was referring to was a farming method where there will be no external inputs of
any sort-no hybrid / GM seeds-no chemical fertilizers-no pesticides and no loan. Organic

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farming has impacted a regenerative agricultural practice that places emphasis on natural
process to energize the soil by increasing its organic matter that helps plants get natural
nutrients.

In India, the success and widespread acceptance of organic farming dependent on

how well the government keeps famers motivated during the transition from chemical
farming to organic farming. Organic farming may not yield good result from day one, say
experts and those who practice the technique. It needs perseverance and investments of
time and labour. If marginal and small farmers (Nearly 86%of farmers) are to switch over
to organic farming, the government must support their livelihood till yields stabilize and
their incomes grow. The meagre subsidy of about Rs. 500 Crores given now to encourage
organic farming or natural farming should be increased substantially to incentivize the
farmers to switch over from chemical farming to natural farming or organic farming.

PRINCIPAL OF ZBNF

Dr. SubashPalekar, the Padmashree Awardee has been advocating been over a long
period trying to popularize Zero Budget Natural Farming (ZBNF). He defines that it as a
technique where the production cost will be Zero since nothing will have to be purchased
from outside. The ZBNF is built on four pillars, Viz.:

1. Jeevamrutham: A fermented microbial culture primarily from cow dung and urine,
jaggery, pulse flour and uncontaminated soil.

2. Beejamrutham: Microbial coating of seed, seedlings by using cowdung, urine and

lime.

3. Achadana or Mulching: The process covering the top soil with cover Crops and
crop residues and

4. Whaphasa or soil aeration.

There is also an emphasis on inter cropping, the practice of growing many crops
next to one another.

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THE ANDHRA PRADESH MODEL

There are doubts about whether ZBNF is scalable, but Kerala, Karnataka and Andhra
Pradesh claim that they have seen success. After 10-15 years of promoting non-chemical pest
management programme and community managed sustainable agriculture in the state, the
Andhra Pradesh Government implemented ZBNF in 2015, as it was getting popular with
farmers in the state thanks to Dr. Subash Palekar is training across several districts. After a
pilot study of the programme in 704 villages in the Kharif 2016 season, master farmers
(referred to as community resource partners (CRPS) were trained in each district.
These CRPS were given the responsibility of motivating and training farmers to switch over
to ZBNF practices. The pilot programme was successful, cultivation cost fell and yields
increased impressively. Since 2015-2016 The Andhra Pradesh government has spent Rs. 114
Crores on the project (through the Central Government’s RashtiyaKrishiVikasYojana and
ParambaragarKrishiVikasYojana). The unit cost of the programme works out to about
Rs.25, 500 per hectare. For the programme to reach all 60 lakhs farmers of the state in
8-10 years the estimated investment cost would be Rs.17, 000 Crores. Till date some 5,
80,000 farmers in 3011 villages-or 8% of farmers in the state have been covered under the
programme. The Andhra Pradesh government has roped in women self-help groups, civil
society organizations and farmer institutions to take forward the ZBNF.

Green farming or Organic farming or ZBNF creates and promotes green products
that are essential for the delivery through the green markets.

If all the other states of the country promotes and practice ZBNF falling in line with
Andhra Pradesh model, the green or organic products essential for green marketing will
flow uninterruptedly into the green markets.

Realization of the need for environmentally responsible business practices as well

as growing consciousness among people to behave in a more socially responsible manner
has evoked two kinds of responses. One, companies have begun to adopt green practices
either voluntarily to build brand image, create good will and gain the patronage of
environmentally conscious consumers or statutorily due to laws passed by the government
and the policies promulgated by the various policy makers and stakeholders. Two, there is
a move towards adoption of ecofriendly products or environmental friendly products often
termed as green products.

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GREEN PRODUCT

The greenness of a product is defined in term of the raw material used to

manufacture a product, the manufacturing process used to transform the raw material into
a final product as well as the purchase, usage and disposal of the final product by the
consumer. In respect of green products, the environmental impacts will be minimum during
the various stages of their life cycle, be it pre-usage, during usage and post usage.

GREEN CONSUMPTION

Green consumption is on the rise and there is a boost towards adoption of green
marketing by marketers worldwide. Green marketing is a concept that emerged majorly in
the 1980s which involves production and marketing of environmentally safe products.
While the green consumption has gained huge momentum in Europe and the USA, the
growth and propagation has been low in Asia. Nevertheless, a large number of companies
in India dealing with both consumer markets and industrial markets have adopted green
marketing. A major challenge faced by such companies is the ‘newness of the concept’.
In India, the awareness for environmental friendly products is low and people often get
confused with terms like “green”, “eco-friendly”. “Environmental friendly”, “organic”,
“biodegradable etc.

GREEN PURCHASE

Green purchase behavior is an aggregate of individual customer’s purchase behavior and

consumption pattern, often influenced by the components of marketing mix viz. product
offerings, prices, promotional activities and place and policies of the government. In India,
the awareness for environmental friendly products as well as their availability is low and it
is restricted to bigger towns and cities. Prices should be reasonable and affordable to all.
Promotional activities should be extensively carried out and the benefits of organic food
products should be made known to all by utilizing the media of communication,
particularly social media.

BENEFITS OF ORGANIC FOOD PRODUCTS

 More Nutrient than conventional food

 Stronger and more energetic food

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  They task better

 They have anti-oxidant capacity

 They are good for healthy heart

 They boost immune system

 They possess antibiotic resistance

 They are good for overall health

 They are raised only by applying organic manures and organic fertilizers.

 They prevent premature ageing.

 They help avoiding vision problem

 They prevent problem due to Malnutrition

 They do not contain organic phosphorus lavishly found in conventional food.

This organic phosphorus contained is conventional food causes for deformities like
autism.

 They reduce the risk chronic diseases.

 Organic foods are safe for children.

These benefits if made known to the public, will undoubtedly transform this buying
behaviour of consumer towards organic food products. The purpose of this research is to
make an empirical assessment of the effectiveness and impact of 4ps of Green marketing
mix in transforming the buying behavior of consumer in Coimbatore city towards organic
food products.

PROBLEM STATEMENT

At a time when the people are quite accustomed to consume varieties of junk foods
which are tasty but dangerous to the hearts of all consumers, they must be made aware of
their dangers the future generation is going to be doomed if the people of present generation
are not educated properly about the dangerous effects of consumption of junk foods.
The Green marketing, by using a set of marketing tools like products, price, place and

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promotion has to venture on war footing to revolutionize the food behaviour radically change
the buying behavior. A study on the impact of green marketing on consumer buying behavior
towards organic food products was taken up for research with a the view to transforming and
revolutionizing buying decisions and behavior towards the organic food products.

Green products, explicitly green food products are getting well known in the
general public. More ecologically cognizance clients lean toward utilizing green products
contrasted with traditional products. There are numerous components whereupon the
customer mentality and their observation towards the green products will be dependent.
Numerous variables contribute decidedly, while many go about as obstructions. It is
imperative to foresee appropriately the different properties of green food items which will
impact the customers' choice to choose the green food products concerning regular
products. This will empower the associations to comprehend the customers' utility and
desire from green food items and to strategize appropriately to make these food products
progressively adequate in the market.

PURPOSE OF THE STUDY

The primary purpose of this research is to analyze how the green marketing impacts
on consumers buying behavior towards organic food products and what reactions are
revealed when a set of green marketing tools are used to transform and reorient the
consumer buying behavior towards organic food products.

RESEARCH QUESTIONS

Following research questions have been kept in mind when the research was
undertaken:

a) What relationship does exist between demographic variables and consumer

buying behavior towards organic food products?

b) What are the impacts of green marketing on product features?

c) Whether the price of organic products are acceptable and affordable to the
consumers?

d) Whether the promotional efforts are adequately taken up by green marketing?

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 e) Whether the organic food products are adequately available in the market?

f) What is the level of consumer preference and willingness to use organic food
products?

g) Whether the consumers need for behavioral transformation?

OBJECTIVES OF THE STUDY

The overall objective of the study is to investigate the impact of green marketing
and consumer buying behavior towards organic food products

The specific objectives are:

1. To measure the consumer’s level of awareness and knowledge about green

marketing.

2. To analyze the influence of demographic profiles on the frequency of purchase of

organic products, point of purchase, motives for buying organic food products and
marketing strategies.

3. To detect important factors impacting on green marketing.

4. To analyze the impact of green marketing on consumers’ buying behavior towards

organic food products.

5. To analyze the factors influencing consumer’s buying behavior towards organic

food products

6. To identify the effectiveness of sources of information that disseminate knowledge

about green marketing and organic food products

7. To elicit the reasons from consumers for not hitherto using organic foods

8. To suggest constructive and powerful strategies to improve the role of green

marketing in transforming consumer buying behavior towards organic food
products

SCOPE OF THE STUDY

Green Marketing is in the formative and growing stage, a field with ample
opportunities for research. Organic Farming and consumer behavior towards organic food

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products are in the early stage of development. Individual, Institutional and government
initiatives are inadequate. There are many problems to be confronted in the sphere of
production, pricing, promotion and distribution of organic food products. Scope for this
therefore is enormous and limitless as there are teething problems of varied kind to be
tackled before bringing about a behavioral transformation in the minds of mass consumers.

RESEARCH METHODOLOGY AND DESIGN

This research in a descriptive study. In this study stratified random sampling has
been followed. Employing disproportionate random sampling method, samples have been
form different Zones of Coimbatore city.

SELECTION OF ZONAL AREA TO CONDUCT THE STUDY

The city was stratified into sub groups which constituted of five zones. They are
East, west, south, North and central zones. Each zone is being stratified with 20 wards and
the zones put together, comprise 100 wards. Out of 20 wards, five wards were selected in
each zone and the total sample wards selected as much for survey was 25 wards were
selected by lottery method.

According to Morgan’s table when the population rises to 15, 84,719 (as given by
Coimbatore city Municipal Corporations for the wards) the estimates sample at 5% of error
as a confidence interval of 99% is 663. The respondents of 663 was contacted and
questionnaire was collected. Out of 663, 38 questionnaires were rejected due to incomplete
or improper data and total questionnaire taken up for study were rounded off to 624.

TOOLS USED FOR THE STUDY

In order to analyze the data collected from the consumers of Coimbatore district,
the appropriate statistical tools have been selected on the basis of the objectives of this
study and the nature of data. That included statistical analyses are: Simple percentage
analysis, Independent Samples T Test, Mann Whitney Test, Analysis of Variance,
Chi-Square analysis, Cross Tab, Discriminant analysis, Factor analysis, and Hierarchical
regression analysis

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LIMITATIONS OF THE STUDY

1. This study covers only Coimbatore city. The results may vary from city to city or
place to place.

2. This aims to study the importance of Green marketing on consumers buying

behavior towards organic food products in general. There are numerous Organic
food products. The results may vary when particular branch of organic food
products and its satisfaction is taken up for study.

3. The results of the study may tend to vary when the green market becomes a
developed one and popular among the consumers are large.

4. This study was made at the time when the green marketing was at is early stage of
development.

CHAPTER SCHEME

Chapter I: Introduction and design of the study

An overview of Green Revolution – Chemical farming – Organic Farming – ZNBF

and the supply of organic food products and the present and potential market opportunities
for organic food products. The introductory chapter consists of the statement of the
problem, scope of study, objectives of the research work, Limitations importance of the
study, significance of the research questions and chapter scheme.

Chapter II: Review of literature

This chapter provides the details of earlier researches on green marketing and it is
explained how they have formed the foundation for this research work.

Chapter III: Research Methodology

This chapter analyses the methodology used in research work, population, sample
size, research tools and Data collection method.

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Chapter IV: Analysis and Interpretation

In this chapter, the data and information collected from the respondents were
analyzed and presented in different tables using statistical tools with appropriate
illustrations.

Chapter V: Findings, Suggestions, Conclusions and scope for future research

This chapter brings out the findings based on the analysis with the help of the
statistical tools. It enlists the suggestions made and conclusions arrived at from the results
of the study. Scope for future research in the area is also furnished.

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