GREEN MARKETING

FINAL REPORT
TOPIC: GREEN MARKETING

GROUP MEMBERS:

1) WASIM AKRAM (051)

2) NAIK ALAM (063)
3) BABAR ALI (048)
4) AMJAD ALI (060)

DEPARTMENT: QASAMS

SUBJECT: OPERATION MANAGEMENT

QAUID-I-AZAM UNIVERSITY ISLAMABAD

1. INTRODUCTION

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Green marketing is the marketing of products that are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities, including product modification,
changes to the production process, packaging changes, as well as modifying advertising. Yet
defining green marketing is not a simple task where several meanings intersect and contradict
each other; an example of this will be the existence of varying social, environmental and retail
definitions attached to this term. Other similar terms used are Environmental
Marketing and Ecological Marketing.

Green, environmental and eco-marketing are part of the new marketing approaches which do not
just refocus, adjust or enhance existing marketing thinking and practice, but seek to challenge
those approaches and provide a substantially different perspective. In more detail green,
environmental and eco-marketing belong to the group of approaches which seek to address the
lack of fit between marketing as it is currently practiced and the ecological and social realities of
the wider marketing environment.

The legal implications of marketing claims call for caution. Misleading or overstated claims can
lead to regulatory or civil challenges. In the United States, the Federal Trade
Commission provides some guidance on environmental marketing claims. This Commission is
expected to do an overall review of this guidance, and the legal standards it contains, in 2011.

2. IMPORTANCE OF GREEN MARKETING

According to scientists, the world is moving towards an environmental turmoil. The only way to
save our planet is to go green on a full swing as quickly as possible. For this cause, economists
have also been doing their parts. Green marketing is a relatively new phenomenon which has
arisen as a result of increasing awareness that economic policies have a lot to do with our
ecology. In other words, green marketing, which is also termed as environmental or sustainable
marketing, is the effort made by any business organization, large or small to design and promote
products that are eco-friendly.

The main idea behind green marketing has been re-marketing of products that are already
manufactured, which adhere to certain environmental guidelines. There has been a huge hue and
cry from various environmental organizations about the damage caused to the planet by large
scale production industries, and the inappropriate disposal methods they use. Having looked into

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these accusations, the government has imposed different agreements and guidelines on
production units. Some business organizations have used it to their advantage, by openly
campaigning for the cause, hence gaining the support of customers. However, some critics claim
that this is just an advertising stunt to promote business, and that no real steps have been taken
towards the cause.

A green consumer is one who is aware of the background of the products he consumes, which he
chooses upon careful investigation of their broad effects on the environment. This spirit is
essential in customers, so that they do not blindly fall for a company’s advertisements, which
will hinder the progress of the green movement. Hence it is only with the right attitude from both
the consumers and the marketers, that “going green” can be achieved in the true sense. And when
that happens, we can finally feel safe, and at home!

below are the points which make Green marketing more important

opportunities : new market, new target customers

 Sustain competition
 Sustain government pressure
 Social responsibility of firm
 Cost reduction.

3. ECO-FRIENDLY PRODUCTS
It’s truly said that green is the newblack. In my previous article , I highlighted how times have
changed and so have the people! There was a time when telephones were invented and soon we
got to see and use the wireless telephone technology; by mentioning this example I only aim to
guide you to think how one invention after another mostly changed our lives for the better and so
is the case with the greener objects which have been replacing their alternatives.
Going green is the new way to satisfy your needs, and now that the eco-friendly minds and
products get their much awaited attention, this is the perfect time to bring out the top 10 eco
friendly products for your use. Scroll down and let your eyes and mind go through the complete
green range.

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3.1. Bedol water-powered clock

This clock runs on salt water. The briny fuel corrodes the clock’s electrodes, which release
electrons to provide power to the monochrome LCD. Though it doesn’t do much more than tell
time, it can go weeks without a refill.
Other water-powered clocks tend to look like they were made as a science project, but this one is
available in a handful of different colors and screams eco-chic, not eco-geek. It is available for
$16.

Wake up for a cup of tea

These were just a few green products of many which are available. Invented all around the
world, we can always start the change by owning them.
While writing this article I have lea
3.2. Eco friendly chair
Cork is extremely familiar especially to those who are into drinking wine; office personnel also
get a chance to have a daily encounter with corks in the form of their corkboard; but who could
ever imagine that even in your home, you can enjoy the beauty and functionality of corks?
The CUT Chair is a sleek and stylish chair you can enjoy at home as your elegant furniture and
décor in one. Other than being stylish furniture, the CUT chair is also an eco-friendly one, as it is
made of discarded corks from cork factories.

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3.3. The seven year pen

Rather than join 100 millions pens discarded every day, this eco-friendly alternative reduces
waste and promises to last at least seven years!
With a sleek, modern design, the Seven Year Pen will surely be your best investment. The long-
life writing tip and high quality materials will outlast even some of the most expensive pens on
the market.

3.4. Moss Carpet

The Moss Carpet, created by Nguyen La Chanh, looks like grass at your feet. Made from
imputrescible foam called plastazote, the mat includes ball moss, island moss and forest moss.

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The humidity of the bathroom ensures that the mosses thrive, and that’s why you need to place it
there and not anywhere else.
People say walking on the grass is great for blood circulation, so why not try this? Not a bad
option rather a green one!

3.5. Green fashionable rings

Designer Anthony Roussel has created wonderful and stylish eco-friendly rings and bracelets.
Made from presumably recycled wood and cork, Roussel has worked with layers in order to
come up with numerous beautiful 3D designs that look really great and eye-catching. It has been
observed lately that more and more designers are now into designing things from recycled cork.
Its 3D design will definitely match with the user’s outfit whatever the occasion may be: a social
gathering with friends and colleagues, or simply a get together with family members.

3.6. Eco-friendly Remote Control

Sony challenged Industrial Design students fromChinato design an eco-friendly device. One of
the participants fromDongHwaUniversitycame up with this unique creation called the Sony

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Conductor TV Remote. It’s a wand shape kind of remote that needs to be swayed side to side to
power it on and the green LED light fires up to indicate its power level.
To start navigating, one can wave the conductor left and right to change your TV set’s volume,
up and down to change channels and in a circular motion to switch your TV set on or off. The
presence of the kinetic energy on this remote made it the most efficient remote control in the
market today. Might be tiring, but it’s a green and creative idea!

3.7. The green umbrella

Conventional umbrellas come with a fixed surface. This eco-friendly design of an umbrella is
more flexible and thus user friendly too. It is actually only a folding umbrella skeleton without
any surface.
So you can put anything such as newspapers, plastic bags or whatever you want to use as the
protecting surface to make your life easy, green and creative when the sun decides to shine on
your head or when it rains.

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3.8. Bamboo Desktop Dry-Erase Board

The Bamboo Desktop Dry-Erase Board saves the use in paper. It’s made from real bamboo that
comes from FSC certified forests (well-managed forests). The warm honey color of the bamboo
looks great in the office, kitchen or wherever else you need to jot a quick note, so grab your
piece!

3.9. Float: the green lamp

With the aim to help save the environment from harm while helping each household to have an
elegant lighting solution, designer Benjamin Hubert had created the Float. Designed and released
for 100% Design 2009, the Float is made from a collection of cork block recovered from a wine
cork manufacturer.
Have it installed in your ceiling in any room of your choice and you will surely get an elegant
ambiance and feel relived at the same time, as you are sure enough that you have helped save the
earth.

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3.10. Hand powered shredder

You know it’s important to shred your personal documents before trashing them, and you know
you should mind your carbon footprint. This handy shredder hits two “shoulds” with one stone,
letting you do both at the same time! Requiring no electricity, this compact device has two end
caps that twist in opposite directions to activate a hand-powered shredding machine.
It’s portable, easy to use, and a smart, simple step towards a greener planet.

4. THE GREENING OF BUSINESS

A number of factors have caused business firms to behave more responsibly towards the natural
environment. Perhaps foremost among these is the possibility of capitalizing on opportunities
from the sale of environmental services and/or "earth-friendly" products. Environmental
awareness has increased dramatically, particularly since the organized environmental movement
emerged in the late 1960s. Issues ranging from global warming to animal rights to species
preservation to the protection of wetlands are now prominent in the media and in the minds of
consumers. "Green" consumers have thus arisen with preferences for products made from

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recycled materials or products whose use entails reduced environmental impact. Often such
products command premium prices, and therefore the task of marketers has become all the more
crucial.

As landfills fill up and public opposition mounts against opening new ones (the NIMBY, or "Not
In My Back Yard," syndrome), waste treatment and disposal costs rise. Storage, transport, and
disposal of hazardous wastes is quickly becoming unaffordable for many firms, stimulating a
search for less-toxic alternative processes. Furthermore, liability and litigation costs for
environmental damages are skyrocketing with little sign of abatement. At the time of the first
Earth Day in April 1970, there were approximately 2,000 federal, state, and local environmental
regulations. In the late 1990s there were approximately 100,000 such rules. By some estimates,
U.S. businesses have spent well over a trillion dollars since the 1970s on environmental law
compliance.

Faced with a growing environmental consciousness, many business firms are adopting a pro-
environment stance in hopes of improving credibility with the public. Unfortunately, some
companies have been a bit overzealous with their environmental claims, prompting cries of
"greenwashing" from critics. Another impetus causing business to embrace environmental
concerns is to attract better employees and/or improve working conditions. Many young people
entering the workforce today exhibit greater social concerns than those of ten years ago, and
many wish to join firms perceived to be making a positive contribution to society.

Environmental regulations continue to increase in both number and complexity. Some firms have
identified opportunities in this changing legal environment and are making changes to drive
regulation for purposes of competitive advantage. Because many regulations require use of the
"best available technology," firms actively involved in developing and implementing new
technologies may achieve the benefits of monopoly status for a short while.

Companies are also becoming more environmentally responsible as part of an overall

commitment to Total Quality Management or sustainable development. Sustainable development
involves meeting the needs of the present without compromising the ability of future generations
to meet their own needs.

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5. CRITICISMS OF THE CONSUMPTION CULTURE

Traditional marketing attempts to identify and meet latent, current, or future consumer needs by
manipulating the so-called four Ps: price, promotion, product, and place (distribution channels).
These objectives have historically been identified with efforts to increase consumption of
material goods and services, practices not particularly compatible with the notion of a sustainable
society. Environmentalists have criticized various aspects of the consumption culture,
particularly its wasteful and pollutive production and disposal processes. Managers should keep
these critiques in mind when creating green marketing strategies. Green marketing can
accommodate these concerns in a way that remains attractive to consumers by addressing the
environmental and consumer advantages inherent in the product.

6. 4 P’s OF GREEN MARKETING

6.1 GREEN PRODUCTS

There is no widespread agreement on what exactly makes a product green. Some general
guidelines include that a green product

 does not present a health hazard to people or animals;

 is relatively efficient in its use of resources during manufacture, use, and disposal;
 does not incorporate materials derived from endangered species or threatened
environments;
 does not contribute to excessive waste in its use or packaging; and
 does not rely on unnecessary use of or cruelty to animals.

Other favorable attributes from the green point of view are the incorporation of recycled
materials into the product and the product's own recyclability.

A great deal of work in the determination of these factors is concerned with a product's
environmental impact at various stages of its useful life. Life cycle analysis (LCA) and product
line analysis (PLA) studies measure the environmental impact of products over their entire life
cycle, that is, from the "cradle to the grave." Such studies track resource use, energy

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requirements, and waste generation in order to provide comparative benchmarks enabling

manufacturers and consumers to select products involving the least impact upon the natural
environment. Though useful, LCA studies have been criticized for their subjectivity in setting
analysis boundaries and for difficulties in establishing comparable impacts across environmental
media, e.g., "How many tons of carbon dioxide emissions equal the release of one picogram of
dioxin?"

6.2 GREENER PRICING

A central concern of many environmentalists is that product prices do not reflect total
environmental costs. Waste disposal costs, for instance, are frequently incurred on a fixed-fee
basis, regardless of how much waste is actually generated. Similarly, the national accounting
systems of most countries do not incorporate the costs of environmental degradation or
depletion. After-the-fact expenditures on pollution control and remediation are included, albeit
asincome. Greener pricing decisions are based on the premise that goods and services associated
with greater environmental damage should cost more.

A number of companies have undertaken audits of their production processes to identify hidden
environmental costs and to provide better information for pricing decisions. Emissions charges,
carbon taxes, and increased fines are possible methods governments might use to implement
better environmental costing. European firms have been particularly proactive in this area,
developing a method of environmental auditing (the ecobalance) bridging the gap between
standard accounting practice, in which data are expressed solely in conventional monetary terms,
and qualitative environmental impact reports.

Research conducted by the Roper Organization in 1990 identified five different groups of
environmental consumers with varying degrees of commitment to purchasing environmental
products. The premium on a product's price tag people were willing to pay for perceived
environmental benefits varied widely from about 3 percent for the least-committed group to
approximately 20 percent for individuals espousing the highest level of commitment. Across the
board, consumers indicated a willingness to pay an average premium of approximately 6.6
percent for products with positive environmental attributes. Attitudes do not always translate into

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action, of course, but environmental attributes do seem to be "tiebreakers" for customers faced
with a choice between two products offering similar benefits and prices.

6.3 GREEN PROMOTION

Perhaps no area of green marketing has received as much attention as promotion. In fact, green
advertising claims grew so rapidly during the late 1980s that the Federal Trade Commission
(FTC) issued guidelines to help reduce consumer confusion and prevent the false or misleading
use of terms such as "recyclable," "degradable," and "environmentally friendly" in environmental
advertising.

The FTC offers four general guidelines for environmental claims:

1. Qualifications and disclosures should be sufficiently clear and prominent to prevent

deception.
2. Environmental claims should make clear whether they apply to the product, the package,
or a component of either. Claims need to be qualified with regard to minor, incidental
components of the product or package.
3. Environmental claims should not overstate the environmental attribute or benefit.
Marketers should avoid implying a significant environmental benefit where the benefit is,
in fact, negligible.
4. A claim comparing the environmental attributes of one product with those of another
product should make the basis for the comparison sufficiently clear and should be
substantiated.

The FTC's Environmental Marketing Guidelines provides additional guidance for a number of
specific claims including "Degradable/Biodegradable/Photodegradable," "Compostable,"
"Recyclable," "Recycled Content," "Source Reduction," "Refillable," and "Ozone Safe/Ozone
Friendly." They strongly recommend avoidance of overly general claims such as
"environmentally friendly." In 1996, the FTC updated the guidelines, substantially refining and
detailing these issue-specific guidelines in order to over-come what critics called the ambiguous
nature or "flexibility" of private labeling practices.

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6.4 GREEN PLACE

Place- Green marketers who think that place is not important do not live in the Rust Belt. Many
conservative areas of the United States that are being hit hard by the recession could care less
about '˜going green'- and are always put off by higher prices. The solution? Sell where going
green is almost fanatical. This is one area in the marketing mix where social media can be
advantageous, but then the seller runs up against shipping criticisms. In green marketing, local
always wins- but what if local is not interested? That's the challenge with place.

7. ECO-LABELING.

Environmental certification or labeling programs attempt to increase consumer awareness and

knowledge of environmental issues. Marketers use eco-labels to convey information about a
product's environmental benefits and to differentiate among competing products. Eco-labels may
identify a product's contents, e.g. the triangular arrangement of arrows on recycled paper and
plastic products, or highlight other benefits, e.g., reduced water usage or increased energy
efficiency. At least 25 countries maintain eco-seal programs, usually whereby seals are awarded
for specific environmental attributes. Germany's "Blue Angel" program is the oldest and most
successful eco-labeling program. Introduced in 1977 by the federal minister and ministers for
environmental protection of the various German states, it now appears on more than 4,000
different products. The Blue Angel is awarded on the basis of comparisons with similar products,
and is designed to guide consumers in their purchasing decisions. For instance, a product may
have particularly low pollutant or noise emissions, entail less wastes in its production, or be
designed for easier recycling than its competitors. The Blue Angel has proven to be a useful
selling tool in Germany's ecologically conscious society. A few other countries have established
eco-labels, though none has yet had as great an impact as the Blue Angel.

In the United States, two private firms, Scientific Certification Systems and Green Seal, have
developed guidelines to identify environmentally preferable products. Scientific Certification
Systems, a private testing concern, awards a "Green Cross" for products meeting very specific
criteria, e.g. X percent recycled content, less than Y percent pesticide residues, and so on. Green
Seal, a nonprofit organization formed in 1990, is engaged in more ambitious efforts using life-

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cycle analysis to identify a product's impact on the environment at all stages of its life. The group
has demarcated 84 categories of products (and according standards) that qualify for certification.

Eco-labeling programs increase awareness of environmental issues, set high standards for firms
to work towards, and help reduce consumer uncertainty regarding a product's environmental
benefits. They have also been criticized as confusing, misleading, overly simplistic and prone to
manipulation by firms with less-than-honorable intentions. Thus far, aside from some
Environmental Protection Agency (EPA) programs discussed below, the U.S. government has
resisted instituting an officially sanctioned eco-label program.

8. ECO-SPONSORING.

Another avenue for companies to promote their ecological concern is to affiliate themselves with
groups or projects engaged in environmental improvements. In its simplest form, firms
contribute funds directly to an environmental organization to further the organization's
objectives. Another approach is to "adopt" a particular environmental cause, e.g. a community
recycling program, demonstrating the company's willingness to put its money and its reputation
on the line. Sponsoring educational programs, wildlife refuges, and clean-up efforts
communicates a firm's commitment to finding environmental solutions. Partnerships with
environmental organizations can open lines of communication and provide new perspectives on
"business as usual."

The EPA, for example, sponsors the Energy Star and Green Lights Buildings programs, in which
partners in industry agree to upgrade their facilities over time to reflect environmental concerns
(usually energy efficiency and waste minimization). The EPA, in turn, agrees to provide
technical support and labeling, which contributes to a green marketing program.

In considering an eco-sponsorship, firms must address the problems of legitimacy and

believability. Not all environmental sponsorships are legitimate or appropriate for a particular
company's needs. Chemical firms, for instance, may find it difficult to support Greenpeace's anti-
chlorine campaign. Believability is even more critical. Business firms consistently rate lowest in
surveys of credibility with consumers. Ecosponsoring should not be used as an alibi for a firm's
day-to-day actions.

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9. MAJOR PLAYER OF GREEN MARKETING IN INDIA

9.1 TATA MOTORS

The ideal global benchmark though is 1.5. Tata Motors is setting up an eco-friendly showroom
using natural building material for its flooring and energy efficient lights. Tata Motors said the
project is at a preliminary stage. The Indian Hotels Company, which runs the Taj chain, is in the
process of creating eco rooms which will have energyefficient mini bars, organic bed linen and
napkins made from recycled paper. But there won't be any carpets since chemicals are used to
clean those. And when it comes to illumination, the rooms will have CFLs or LEDs. About 5%
of the total rooms at a Taj hotel would sport a chic eco-room design. One of the most interesting
innovations has come in the form of a biogas-based power plant at Taj Green Cove in Kovalam,
which uses the waste generated at the hotel to meet its cooking requirements. Another eco-
friendly consumer product that is in the works is Indica EV, an electric car that will run on
polymer lithium ion batteries. Tata Motors plans to introduce the Indica EV in select European
markets this year.

9.2 WIPRO

Wipro can do for you in your quest for a sustainable tomorrow - reduce costs, reduce your
carbon footprints and become more efficient - all while saving the environment.Wipro's Green
Machines (In India Only)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.

9.3 INDIAN OIL

Indian Oil is fully geared to meet the target of reaching EURO-III compliant fuels to all parts of the
country by the year 2010; major cities will upgrade to Euro-IV compliant fuels by that time.

• Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries; ongoing
projects account for a further Rs. 5,000 crore.

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Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units are coming up
at three more refineries.

• Diesel quality improvement facilities in place at all seven Indian Oil refineries, several more green fuel
projects are under implementation or on the anvil.

• The R&D Centre of Indian Oil is engaged in the formulations of eco-friendly biodegradable lube

formulations.

• The Centre has been certified under ISO-14000:1996 for environment management systems.

Best Green IT Project: State Bank of India: Green IT@SBI

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.

9.4 NEROLAC

Kansai Nerolac Paints Ltd. has always been committed to the welfare of society and environment and as a
responsiblecorporate has always taken initiatives in the areas of health, education, community
development and environment preservation.

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.

9.5 STATE BANK OF INDIA

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 State Bank of India became the first Indian bank to harness wind energy
through a 15-megawatt wind farm developed by Suzlon Energy.

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10. CONCLUSION

Green marketing is based on the premise that businesses have a responsibility to satisfy human
needs and desires while preserving the integrity of the natural environment. That this latter
concern has been ignored throughout most of recorded human history does not mean it will be
unimportant in the future. Indeed, there are significant indications that environmental issues will
grow in importance over the coming years and will require imaginative and innovative redesign
and reengineering of existing marketing efforts on the part of many businesses. Solutions to
environmental problems can be characterized into roughly three categories: ethical, legal, and
business (economic and technological). Long-term sustainability of the planet is likely to require
some rather distinct changes in the ethical behavior of its human population. Barring a crisis,
these changes will probably be a long time coming. Legislation is a useful tool for effecting
social change; it has a tremendous advantage over moral persuasion in terms of speed and
efficacy of implementation, although its results are not always as intended. In the short term,
business solutions—the enlightened self-interest of commercial enterprises finding new ways to
incorporate technology and carry on exchanges with greater concern for heretofore unpriced
environmental goods and services—offer particular promise. Green marketing and the promotion
of responsible consumption are part of that solution.

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BIBLIOGRAPHY

 en.wikipedia.org
 www.investropedia.com
 www.slideshare.net
 www.linkedin.com
 www.environmentalleader.com
 www.ask.com

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