You are on page 1of 63

CHAPTER 1 INTRODUCTION

According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including
Product modification, Changes to the production process, Packaging changes, as well as

Modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on environmental marketing claims. The term green marketing came into prominence in the late 1980s and early 1990s. 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" Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. So, in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly itself or produced and/or packaged in an environmentally friendly way. The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products than they would for a less-green comparable alternative product - an assumption that has not

been proven conclusively, specially the mild effect which it had had on consumers has washed away by the present recession (2008-09) only. Green marketers though argue that it is a way to use the environmental benefits of a product or service to promote sales. Many consumers will choose products that do not damage the environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. Environmentalists support green marketing to encourage people to use environmentally preferable alternatives, and to offer incentives to manufacturers that develop more environmentally beneficial products.

Importance of green marketing


Man 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. 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 selling organization's objectives. When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives Organizations believe they have a moral obligation to be more socially responsible Governmental bodies are forcing firms to become more responsible Competitors' environmental activities pressure firms to change their environmental marketing activities Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior

Goals of Green Marketing


2

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.

Need of Green Marketing: An Anthropological View


Issues like Global warming and depletion of ozone umbrella are the main for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigor and so would the corporate class. Financial gain and economic profit is the main aim of any corporate business. But harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. Industries in Asian countries are catching the need of green marketing from the developed countries but still there is a wide gap between their understanding and implementation.

Challenges in Green Marketing


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. 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
3

and made aware of the environmental threats. The new green movements need to reach the masses and that will take a lot of time and effort. By Indias ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In those aspects the consumer is already aware and will be inclined to accept the green products. 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. Avoiding Green Myopia The first rule of green marketing is focusing on customer benefits i.e. the primary reason why consumers buy certain products in the first place. Do this right, and motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the green products are priced very high then again it will loose its market acceptability

Benefits of Green Marketing


Todays consumers are becoming more and more conscious about the environment and are also becoming socially responsible. Therefore, more companies are responsible to consumers aspirations for environmentally less damaging or neutral products. Many companies want to have an early mover advantage as they have to eventually move towards becoming green. Some of the advantages of green marketing are: It ensures sustained long term growth along with profitability. It saves money in the long run, though initially the cost is more. It helps the companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying the competitive advantage.

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

Golden Rules of Green Marketing


1. Know Your 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 wouldnt pay a premium for a CFC-free refrigerator because consumers dint know what CFCs were.).
2. Empower Consumers: Make sure that consumer feel. By themselves or in concert with

all the other users of your product, that they can make a difference. This is called empowerment and due to this main reason consumers will buy greener products.
3. Be Transparent: Consumers must believe in the legitimacy of the product and the

specific claims made in regard.


4. Reassure the Buyer: Consumers must be made to believe that the product performs the

job its supposed to do-they wont forego product quality in the name of the environment.
5. Consider Your Pricing: If youre 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 its worth it.
6. Thus leading brands should recognize that consumer expectations have changed. It

is not enough for a company to green its products; consumers expect the products that they purchase pocket friendly and also to help reduce the environmental impact in their own lives too.

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 wont 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 wont occur in the US and elsewhere without government intervention (e.g., regulations, tax/financial incentives, etc).

Green Washing
In spite of its growing popularity, the green marketing movement faced serious setbacks in the late 1980s because many industries made false claims about their products and services. For instance, the environmental organization Corp Watch , which issues annually a list of the top ten "green washing" companies, included BP Amoco for advertising its "Plug in the Sun" program, in which the company installed solar panels in two hundred gas stations, while continuing to aggressively lobby to drill for oil in the Arctic National Wildlife Refuge. Green marketing can be a very powerful marketing strategy though when it's done right. In a similar kind of case Chads green marketing campaign bombed because he made the mistake of packaging his environmentally friendly product in Styrofoam, emitting CFCs. Without environmental labeling standards, consumers could not tell which products and services were truly beneficial. Consumers ended up paying extra for misrepresented products. The media came up with the term "green washing" to describe cases where organizations misrepresented themselves as environmentally responsible. So, While green marketing was growing greatly as increasing numbers of consumers were willing to back their environmental consciousnesses with
6

their dollars, it can be dangerous. The public tends to be skeptical of green claims to begin with and companies can seriously damage their brands and their sales if a green claim is discovered to be false or contradicted by a company's other products or practices. Thus, in other words presenting a product or service as green when it's not is called green washing.

The Green Dilemma


The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. The so-called "green consumer" movements in the U.S. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds. While public opinion polls taken since the late 1980s have shown consistently that a significant percentage of consumers in the U.S. and elsewhere profess a strong willingness to favor environmentally conscious products and companies, consumers' efforts to do so in real life have remained sketchy at best. One of green marketing's challenges is the lack of standards or public consensus about what constitutes "green," according to Joel Makower, a writer on green marketing. In essence, there is no definition of "how good is good enough" when it comes to a product or company making green marketing claims. This lack of consensus -- by consumers, marketers, activists, regulators, and influential people -- has slowed the growth of green products, says Makeover, because companies are often reluctant to promote their green attributes, and consumers are often skeptical about claims. Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern has led more companies to advertise their commitment to reduce their climate impacts, and the effect this is having on their products and services

CHAPTER 2
GREEN MARKETING ADOPTION BY THE FIRMS.
Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption: 1) OPPORTUNITIES - As demands change, many firms see these changes as an opportunity to be exploited and have a competitive advantage over firms marketing non-environmentally responsible alternatives. Some examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs are: McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. Tuna manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins. Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. 2) GOVERNMENTAL PRESSURE - As with all marketing related activities, governments want to "protect" consumers and society; this protection has significant green marketing implications. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways, 1. Reduce production of harmful goods or by-products 2. Modify consumer and industry's use and/or consumption of harmful goods 3. Ensure that all types of consumers have the ability to evaluate the environmental composition of goods Government establishes regulations designed to control the amount of hazardous wastes produced by firms. New Delhi, the India's capital was getting polluted gradually at a very fast pace till Supreme Court of India forced a change of fuel on it. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution. One of the more recent publicized environmental regulations undertaken by governments has been the establishment of guidelines designed to "control" green marketing claims. These regulations include the Australian Trade
8

Practices Commission's (TPC) "Environmental Claims in Marketing - A Guideline , the US Federal Trade Commission's (FTC) "Guides for the Use of Environmental Marketing Claims" and the regulations suggested by the National Association of Attorneys-General .These regulations are all designed to ensure consumers have the appropriate information which would enable them to evaluate firm's environmental claims. 3) COMPETITIVE PRESSURE - Another major force in the environmental marketing area has been firms' desire to maintain their competitive position. In many cases firms observe competitors promoting their environmental behaviors and attempt to emulate this behavior. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior. For example, it could be argued that Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers. In another example when one tuna manufacture stopped using driftnets the others followed suit. 4) SOCIAL RESPONSIBILITY- Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. This translates into firms that believe they must achieve environmental objectives as well as profit related objectives. This results in environmental issues being integrated into the firm's corporate culture. There are examples of firms adopting both strategies. Organizations like the Body Shop heavily promote the fact that they are environmentally responsible. While this behavior is a competitive advantage, the firm was established specifically to offer consumers environmentally responsible alternatives to conventional cosmetic products. Fund managers and corporate developers too, are taking into account the environmental viability of the company they invest in Venture Capitalists are investing in green business because they believe it's a growth opportunity. Britain based HSBC became the world's first bank to go carbon neutral late last year and is now turning its 11000 buildings in 76 countries worldwide into models of energy efficiency." our customers have told us that they decide where they shop based on whether the business is a good neighbor "says David North, Tescos community director. An example of a firm that does not promote its environmental initiatives is Coca-Cola. They have invested large sums of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact. While being concerned about the environment, Coke has not used this concern as a marketing tool. Thus many consumers may not realize that Coke is a very environmentally committed organization. Another firm who is very
9

environmentally responsible but does not promote this fact, at least outside the organization, is Walt Disney World (WDW). WDW has an extensive waste management program and infrastructure in place, yet these facilities are not highlighted in their general tourist promotional activities. 5) COST OR PROFIT ISSUES - Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of environmentally harmful by-products, such as polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases difficult.Therefore firms that can reduce harmful wastes may incur substantial cost savings. When attempting to minimize waste, firms are often forced to re-examine their production processes. In these cases they often develop more effective production processes that not only reduce waste, but reduce the need for some raw materials. This serves as a double cost savings, since both waste and raw material are reduced. In other cases firms attempt to find end - of - pipe solutions, instead of minimizing waste. In these situations firms try to find markets or uses for their waste materials, where one firm's waste becomes another firm's input of production. One Australian example of this is a firm who produces acidic waste water as a by-product of production and sells it to a firm involved in neutralizing base materials.

GREEN CODE
G generalizes with care. Consumer behavior will not necessarily be consistent across different product types, and particular market segments may respond to certain issues on the green agenda but not others. R remembers, the validity of a piece of market research is not related to the degree to which it supports your preferred option. E explores the context from which market research data comes. Be clear on the nature of the sample used, the questions asked, the way in which responses were recorded and the time and place from which the responses come E ensures that where market research is crossing international borderlines, that the terminology and interpretation remains consistent. Terms like environment, green and conservation do not always translate precisely between languages. N neutrality is important. Ensure that when you pose questions to consumers, that they can make any response without being made to feel guilty or uncomfortable, and ensure that your own
10

preconceptions about the green agenda (such as an assumption that green products will cost extra) are not encoded within the questions.

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: Products made from recycled goods, such as Quick N Tuff housing materials made from recycled broccoli boxes. Products that can be recycled or reused. Efficient products, which save water, energy or gasoline, save money and reduce 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. Certified products, which meet or exceed environmentally responsible criteria. Organic products-many customers are prepared to pay a premium for organic products, which offer promise of quality. Organic butchers, for example, promote the 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 be the deciding factor between products of equal value or quality.

11

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.

CHAPTER 3
MOVING TOWARDS GREEN MARKETING

12

The era of green marketing has begun. It has already been granted wide acceptance by all stakeholders. However, there is a need to lay down the standards and practices, in order to bring in objectivity in the judgment of various national and international agencies. This will not only encourage the activities of green marketing but shall also provide the much needed level playing fields to all.

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-LABELLING SCHEMES IN INDIA The Ministry of environment and forest of government of India has prescribed the following criteria for products:

13

That they cause substantially less pollution than comparable products in production, usage and disposal, That they are recycled and/or recyclable whereas comparable products are not. That they contribute to a reduction on adverse environmental health consequences. That they comply with laws, standards and regulations pertaining to the environment. That 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.

SHIFTING TO A GREEN ERA


The color GREEN, until recently was associated all over the world with emerald. In the modern age, however, GREEN is getting associated with sustainable development. Being green is no longer a matter of choice; its marketing is a must, or else enterprise may run the risk of losing customers, employees and shareholders. It has become almost a necessity to maintain a green lifestyle. The possibility of oceans rising and claiming coastal lives, climate change, and polluted air and water are beginning to gain momentum towards the green movement. Today there is an increasing concern among the business houses towards the challenges poised by the environment. Green consumerism is playing a catalytic role to bring in environmentalism and make business green oriented. Also it has been noticed that there has been an increasing trend of consumers demanding for a Green Image of an enterprise. The most feasible option available for the business houses is to put into practice the process of Green Manufacturing. It involves product recovery activities as well as reverses logistics.
14

Product recovery concept is applied on the returned product so as to translate it to a usable one, for example remanufacturing, refurbishing or even recycling. Whereas reverse logistics focuses on inbound supply and distribution of used goods and inventory. Companies like ABB, MUL, Ranbaxy and many more have taken up green projects. They sponsor huge amount and in return earn a lot of goodwill, low cost publicity, and an environment conscious image. Scores of such enterprises have responded to environmental concerns with several strategic versions of green business, which are enumerated below: Adopting products/packages to make them environmentally sound. Making realistic environmental claims about existing products through the advertisements. Linking brands with environmental causes to create goodwill. Introducing entirely new range of products explicitly designed to appeal environmentally conscious consumers. For business houses seeking environmental sustainability, green supply chain management (GSCM) has emerged as a vital tool. It integrates environmental thinking into traditional supply chain management that includes product design, material sourcing as well as selection, process of manufacturing, delivery of final products to the customers and most importantly end of life product management after its proper usage. The major areas addressed by GSCM are: The upstream activities of an organization that comprises evaluation of suppliers environmental performance. Downstream actions that include activities related to the disposal of surfeit stock, particularly the recovery and recycling opportunities. Within the organization, GSCM might include design for the environment with the suppliers. While in the logistics, JIT or Quality Management conjoins with environmental criterion.

The business enterprises can have several benefits by greening their supply chain. Some of them are:

Risk Reduction and Adapting of Regulation: Enterprises with green practices of SCM can keep themselves free of being prosecuted due to unethical and anti-environmental practices.

15

Sustainability of Resources: The greening of SCM helps in effective utilization of enterprise resources. The enterprises shall purchase green input resources for environment friendly production process to produce eco friendly outputs.

Production Process and Competitive Advantage: GSCM helps the business houses in positioning the products differently in the minds of the target set of buyers. It will not only attract profitable customers for the organizations, but also bestow competitive edge over its rivals, thereby strengthening brand image.

Cost Reduction and Increased Efficiency: Effective utilization of GSCM may fetch reduction of transaction cost as well as promote recycling of raw materials. Moreover the production of hazardous substances can be engraved, which may avert enterprises from being penalized for violating environmental clauses.

Stakeholders in Green Marketing


They are all the people or groups whose lives or environment are affected by the project, but who receive no direct benefit from it. These can include the teams families, people made redundant by the changes introduced, people who buy the product and the local community. FRAMEWORK FOR PROPER IDENTIFICATION OF STAKEHOLDERS Identifying appropriate stakeholders Specifying the nature of their interests Measuring the stakeholder interest Predicting what each stakeholders future behavior will be to satisfy his/her stake Evaluating the impact of the expected behavior on the project teams latitude in managing the project politics.

Chapter 4
PRESENT TRENDS IN GREEN MARKETING IN INDIA
Organizations Perceive Environmental marketing to be an Opportunity that can be used to achieve its objectives. Firms have realized that consumers prefer products that do not harm the natural environment as also the human health.
16

Firms marketing such green products are

preferred over the others not doing so and thus develop a competitive advantage, simultaneously meeting their business objectives. Organizations believe they have a moral obligation to be more socially responsible. This is in keeping with the philosophy of CSR which has been successfully adopted by many business houses to improve their corporate image. Firms in this situation can take two approaches: Use the fact that they are environmentally responsible as a marketing tool. Become responsible without prompting this fact.

Governmental Bodies are forcing Firms to Become More Responsible In most cases the government forces the firm to adopt policy which protects the interests of the consumers. It does so in following ways: Reduce production of harmful goods or by products Modify consumer and industrys use and /or consumption of harmful goods; or Ensure that all types of consumers have the ability to evaluate the environmental composition of goods Competitors Environmental Activities Pressure Firms to change their

Environmental Marketing Activities In order to get even with competitors claim to being environmentally friendly, firms change over to green marketing. Result is green marketing percolates entire industry.
Cost Factors Associated With Waste Disposal or Reductions in Material Usage

Forces Firms to Modify their Behavior With cost cutting becoming part of the strategy of the firms it adopts green marketing in relation to these activities. It may pursue these as follows:

A Firm develops a technology for reducing waste and sells it to other firms. A waste recycling or removal industry develops.

Corporate Environmental Management, Strategy and Practices


Environmental Management There are three categories of Environmental Management
17

Crisis-oriented Cost-oriented, and

Enlightened These firms have no environmental policy strategy for compliance with laws and

The firms with crisis-oriented management handle environmental conflicts on a fire-fighting basis. regulations and have no separate environmental unit in the firm. The firms with cost-oriented management accept environmental regulations as a cost of doing business, and make efforts to comply with them as efficiently as possible. These firms establish company policy, separate units, and procedures for environmental compliance. The most important factors that led towards the development of enlightened environmental management are: strong commitment of the top corporate responsibility for the environment can affect short-term as well as long-term profits; and the realization of the fact that costs for environmental responsibility can be minimized and even some profits can be made. Five development stages of environmental management as given below:
The beginner who provides no protection from environmental risk The fire-fighter who provides minimal protection The concerned citizen who provides moderate protection The pragmatist who provides comprehensive protection The pro-activist who provides maximum protection

GREEN HOUSE AS REDUCTION MARKET


The emerging greenhouse gas reduction market can potentially catalyze projects with important local environmental, economic, and quality-of-life benefits. The Kyoto Protocols Clean Development Mechanism (CDM), for example, enables trading between industrial and developing nations, providing a framework that can result in capital flows to environmentally beneficial development activities. Although the United States is not participating in the Kyoto Protocol, several US programs enable similar transactions on a voluntary and regulatory basis. While international trade in greenhouse gas reductions holds substantial promise as a source of new funding for sustainable development, this market can be largely inaccessible to many smaller-scale projects, remote communities, and least developed localities. To facilitate participation and broaden the benefits, several barriers must be overcome, including: a lack of market awareness among stakeholders and prospective participants; specialized, somewhat complicated participation rules; and the need for simplified participation mechanisms for small
18

projects, without which transaction costs can overwhelm the financial benefits of participation. If the barriers are adequately addressed, greenhouse gas trading can play an important role supporting activities that benefit peoples lives and the environment. One of the most popular trend in the business is emission trade or Emissions trading (or emission trading) which is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It is also called cap-and-trade. A central authority (usually a governmental body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies that need to increase their emission allowance must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society. There are active trading programs in several air pollutants. For greenhouse gases the largest is the European Union Emission Trading Scheme. In the United States there is a national market to reduce acid rain and several regional markets in nitrogen oxides. Markets for other pollutants tend to be smaller and more localized.

Chapter 5
THE NEW GREEN REVOLUTION
Global Warming is the phenomenon of increase in Earths temperature caused by burning of fossil fuels and other pollutants in the air. As per the predictions by IPCC (Intergovernmental Panel on Climate Change) it is predicted that the global temperature is likely to increase by 1.1 to 6.4 degrees Celsius between 1990 to 2100. The key causes of global warming are summarized below:
Carbon dioxide emitted from the Power Plants, Cars, airplanes and other industries. Methane emitted from landfill, petrochemical factories and steel and fertilizer plants.

19

Nitrogen dioxide emitted from waste combustion, agriculture water pollution and

sewage.
Other harmful gases emitted by industries, and manufacturing units, which are causing

depletion of Earths ozone, layer.


Deforestation is another major contributor towards global warming. The destruction of

tropical forests is throwing millions of tons of carbon dioxide into the atmosphere. These forests are the main source of absorption of carbon dioxide, which we are losing at a great speed each year with increased deforestation. For a long time now the effect of mans industrialization and technological progress ha s quietly yet continuously eked away at the delicate balance of the planets atmosphere and ecosystem, but within the last 30 or so years the place of this damage has markedly accelerated. It is presently estimated that 700 tons of carbon dioxide are pumped into the earths atmosphere every second of the day. Carbon dioxide is the chief contributor to the greenhouse gases. It is these greenhouse gases, which cause global warming.

Green Warming Proposed Solution


The solution to this problem lies in Going Green in our thoughts, behavior and actions. The consumers and corporations need to focus on clean and environment friendly products and services. To elaborate on the Green terminology:
1. Green Product is non-toxic and is made from recycled material. There is no absolute

green product. However the products, which consume less energy, cause less pollution and are biodegradable, belong to this category. Thus Green is a relative term.
2. Green Service fulfills the philosophy of sustainable development, improving and

maintain the quality of life for people without compromising the environment.
3. Green washing is the process of making products and services Green in all respects.

It is not enough just to develop a brand or a logo, or invest in an advertising campaign, and then position a product as Green before consumers. Like any other new concept, marketers must first educate the public about going green, ensure product credibility, and establish trust. Moreover, since Green aspect of the product is not a tangible attribute that the consumers receive the consumer has to be convinced about the benefits

20

of the green benefits of the product. It is also important to understand how companies across the globe are innovating and creating Green products. 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: Kodaks 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

21

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 BY USING ALTERNATIVE INGREDIENTS TO REDUCE HEALTH RISKS Example: AFM Safecoat and Safechoice Paints to meet the markets demand for non-toxic paints, the California based company invested in Research and Development and developed a full line of non-toxic coatings, paints, stains and adhesives. GREEN IN SUPPLY CHAIN Example: McDonalds 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 McDonalds 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
22

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 Infotechs 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

23

service differentiator and positioning itself as Green service Provide. The corporate image of ITC Ltd. is further enhancing the True Green Image.

24

CHAPTER 6
GREEN STRATEGY FORMULATION
As in formulation of green strategy, a firm may evolve it from a SWOT analysis or Environmental Audit.

SWOT ANALYSIS
STRENGTHS 1. Marketers get access to new markets and gain an advantage over competitors that are not focusing on greenness. 2. Marketers can charge a premium on products that are seen as more eco-responsible. 3. Organizations that adopt green marketing are perceived to be more socially responsible. 4. Green marketing builds brand equity and wins brand loyalty among customers. E.g. research and development capabilities for clean processes and green products and human resources committed to environmental protection. WEAKNESS 1. Most customers choose to satisfy their personal needs before caring for environment. 2. Overemphasizing greenness rather than customer needs can prove devastating for a product. 3. Many customers keep away from products labeled Green because they see such labeling as a marketing gimmick, and they may lose trust in an organization that suddenly claims to be green. E.g. products cannot be recycled, and hazardous wastes) of a company.

OPPORTUNITIES 1. Marketing to segment which are becoming more environmentally aware and concerned. These consumers are demanding products that conform to these new attitudes. 2. Organizations perceive green marketing to be a competitive advantage, relative to the competitors. Firms, therefore, strive to improve upon their societal awareness. This complements the increase in consumers socially conscious behavior and will therefore give them an advantage over competitors who do not address these issues.
25

E.g. offering an environmental friendly product and saving resources, and relating them to internal strengths. EXTERNAL THREATS 1. Uncertainty as to the environmental impact of present activities, including that is perceived to be less environmentally harmful. 2. Uncertainty as to which green marketing activities are acceptable from a government perspective. 3. The possibility of a backlash from consumers or government based on existing green marketing claims, threat one and two above may cause backlash to arise. E.g. competitors gain market shares with green products and increased environmental regulations).

ENVIRONMENTAL AUDIT
It is a management tool which can be used to assess the environmental performance of the company and its units and to identify the weak points. EA is comprised of a systematic, documented, periodic and objective environmental performance evaluation and facilities.

In Search of Market Segments for Green Products


The green issue, more than any other, will affect most companies prospects in 2012 and beyond. Responding to the growing interest in the environment companies such as Toyota, ITC, Orchid, Jet Airways have utilized the sentiment of environmental consciousness as a means to promote their product and market their services. Consequently, claims of environment friendly products have become important selling points. More and more, consumers are looking for goods and services that supposedly reduce solid waste and protect the green environment. Currently, companies involved in green marketing have targeted much of their attention towards the general consuming public. This is primarily because the general consumer, as a market segment for green goods and services, is a particularly large and profitable market. In India, for example, 12 to 15 million potential green consumers can be expected. While Indians have been slow in responding to the green movement, a survey by TERI of 500 packaging executives found that 48% agreed that consumers are willing to accept price increase for environment friendly packaging.
26

Undoubtedly, the consuming public is an important and large target segment for green goods and services. However, we contented that this segment is not the only avenue for green products. Businesses are fiercely competing for this one segment to gain an environmental lead.(e.g. P&G introduced Spic & Span bottles that use recycled plastic). Meanwhile, other companies have successfully carved a niche in less traditional market segments. (e.g. Waste management companies started working in India). Therefore, for companies to have a competitive advantage regarding the environment, they need to know their target markets are and/or who their target markets ought to be. There are two overriding reasons why identifying these markets are important. First, the proper identification of these markets is important if managers are to adapt competitive strategies. These strategies facilitate the initiation of the new marketing programs that address the environmental issue. Second, a holistic perspective may be necessary to address the environment issue. That is, since a symbolic relationship exists between these markets, a collective effort (among the segments) may be necessary in order to effectively solve the environmental dilemma. The four market segments include the following: Fig: Total Market for Green Goods and Services

Four Potential market Segments


Choosing a target market is not an easy task. It requires an in-depth understanding of the total market and its trends; companies distinctive competencies; and critical external factors such as the competitive and regulatory environments, among others. The four segments considered are Direct market segments. These markets are often directly targeted by other companies because of their sales, market share or profit potential. Segment 1: General Public or Consumer Market Its a familiar story by now. Over a year ago, marketers started capitalization on the green euphoria by touting their products as safe for the environment, degradable, environmentally-friendly, and so on. Green products are gaining visibility in Indian market. This demonstrates that the green issue has become an important consumer concern. It has also provided marketers with opportunities for product improvement and differentiation. Because of these, market opportunities, many companies aim to convince the public that their products are environmentally friendly and not as
27

harmful as they may seem. At present, the window of opportunity for these companies is promising. Hence, companies like Xerox consider proper leverage of environmental issues a sustainable competitive advantage. To cite additional examples, Proctor & Gambles idea of using pouches for the Woolen Fabric, liquid concentrated fabric softener (rather than bulky non-degradable plastic bottles) is well accepted in India. Citizens have been promoting eco-drive watches and promoting concept of responsible consumption of buying environmentally responsible goods. A recent Gallup survey of trends and opinions concluded that consumers are willing to pay for the privilege of buying green. This conclusion is quite appealing and encouraging for marketers. While reasons for apparent change in the sentiments of consumers are unclear, some marketing consultants offer the explanation that apart from lots of media attention such as about the CNG, CFCs, Euro, punching holes in ozone layer, new attitude may show a more basic disenchantment with materialism Most of the baby boom generations now have families; they are said to have developed a new sense of social responsibility. Segment 2: Government and its Agencies Market Continued exploitation of natural resources for increasing economic growth brought with it associated environmental and social problems. However, these problems were not addressed by the government until 1971, when the Planning Commission wrote a report on state of Indias environment in preparation for a 1972 United Nations Conference on the Human Environment. It was only after India signed the resulting declaration from this U.N conference the government took any serious action in addressing environmental issues in developmental planning. Subsequently, a National Committee on Environmental planning and Coordination (NCEPC) was formed in 1972 to act as an apex advisory body in all the matters relating to environmental protection and improvement. For protection and improvement of environment and security of future generation the government organizations and financial institutions need to use their resources effectively to improve their performance and to set up their cooperation, working as one to overcome hunger and to consolidate the primary role of sustainable agriculture and rural development in food and environmental security. Indian legislatures should rise to occasion and act in a manner that fundamentally changes the lives of the poor and instill confidence by implementation of laws and policies to usher a humane, equitable and environment friendly society.
28

Segment 3: For Profit or Private Organizations Business Week (2004) predicts that one of the major business trends of the coming years will be investments into Indias landscape, i.e. improving and preserving the environment. According to Scott Jay Wollins, environmental analyst for Tucker, Anthony Inc, Regulations and fear of liability, not conventional economic forces, drive spending on the environment. Robert Keefer, president of Environ Quest, an environmental information company, company estimates that for every rupee spent by the government, companies will spend Rs. 5 to Rs. 10 for the environmental cleanup. ITC has initiated a recycling program with Bhadrapur paper Mills. The program includes recycling of phone books which currently occupy approximately 1% of landfills. Company anticipates that this recycling project may easily become a service they can offer to other (publishing) companies given the possibility of a legislative mandate. LG Electronics have introduced environment friendly initiatives such as rainwater harvesting, solar water heaters for canteen applications and converting Effluent, Treatment Plant ( ETP )sludge bricks. To further demonstrate the possibility of these markets, managers of environment oriented companies claim that they are recession proof. According to these managers, as long as corporate India exists, a potential and/or ready market can be found. With all the new governmental regulations, private industry can be expected to spend considerable resources for environmental control.

Segment 4: Non-Profit Organizations Non-Profit organizations such as hospitals, universities and other charitable institutions ( e.g. Red Cross, Helpage India, Cry ) are also viable alternatives for companies that offer green products. However, many (non-profit) organizations operate under very limited budgets and are closely monitored by other regulatory agencies. For example, several hospitals are currently re-evaluating their waste disposal systems to ensure that these waste products are not illegally disposed. The cases on illegal waste dumping of hospital garbage have made the (garbage) business a lucrative service of the independent contractor. Meanwhile, in light of the budgetary crunch in many universities, these organizations are attempting to reduce waste as much as possible. Recycling has become part of many educational
29

institutions budget programs. Many universities have also hired independent consultants and/or contractors to re-evaluate their operations and recommend waste reduction profile.

Problems associated with each market segment


Segment 1: Consumer Segment Consumers may express more concern about the ecology, but they continues to buy large luxury cars, relatively few recycle voluntarily, and most importantly, economic issued continue to dominate political campaigns. National Consumer Council (2004) points out the chronic 4/40 gap among the Indian consumers - the fact that the 40 per cent of consumers say they would purchase green products if available, but only 4 per cent actually do. NCC says the solution to the green market dilemma, or at least part of it, is a combination of things; increasing consumer awareness and choice; promoting innovative policies, accelerating demand for greener products; demand corporate accountability; and encouraging sustainable business practices. Researcher fail to see why people must pay a hefty premium for biodegradable baby wipes that can be flushed down the toilet or coffee filters that arent bleached. It raised a point in the mind of researcher that demand for green products does exist, and people are willing to pay if they dont feel theyre being ripped off. Bank and credit card companies persuade customers to get paperless statements to save trees, but then charge a fee for accessing statements via software. While competition is inevitable in any business endeavor, the presence of stricter regulations and public policies can aggravate the situation. This emanates primarily from misleading statements and claims of products being environment friendly. In particular, there are a number of criticisms regarding the marketing ploy of degradable trash bags. Manufacturers claim that it is not their fault if consumers are uniformed. Hence, consumers must interpret the degradability of these products. Debate of this nature has led to stricter policies and governing bodies. Segment 2: Government Segment The bureaucracy has failed to implement laws to reduce industrial pollution in India. Tackling Indias environment crisis is likely to be a difficult proposition for any government. Indian government has much to do for addressing their environmental issues as compared to its European or American counterparts requiring environmental and social assessments for entire

30

sectors. India does have a system of environmental impact assessments being mandatory for most development projects. The western Ghats are not only valuable from the point of view of the timber and non-timber forest produce they contain, but even more so for the enormous water security they provide to the plains in Karnataka, Kerala, Maharashtra, Goa , and Tamilnadu, not speak of their potential genetic values. Yet none of these values integrate when decisions are taken about land use in the Western Ghats. On the contrary, cutting trees for timber appears as a positive contribution (as revenue) in the budget figures, and there is no corresponding debit entry on the resulting loss of ecosystem benefits. In India, the central government does not maintain such a centralized database and even the data that it has on companies is not easily available to public accessibility. Moreover, within the environmental community, there is a very little credibility in data being supplied to the government. The government should not only provide the legislation regarding environment and Green Marketing practices but also ensure that these are enforced. The government should adopt carrot and stick approach for the organizations i.e. rewarding organizations with good EMPs and imposing penalty on the erring ones. Formation of an environmental award just like Rajiv Gandhi Quality Award would be a good step.

Segment 3: Private Industry Segment. Within private industry, many companies are currently undertaking environmental control and recycling programs. E.G. ITC, Philips, Electrolux, Toyota, J&J, Orchid Hotel. The aforementioned programs and policies imply capital expenditures for their installation and maintenance. For services involved in waste management/recycling designs as well as goods that offer environmentally sound substitutes, considerable market opportunities are available. Some of the companies are going to an extent that is suffering from green washing as well. When looking through the literature there are several suggested reasons for firms increased use of green marketing. Five possible reasons cited are: organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives, moral responsibility to be an opportunity that can be used to achieve its objectives, moral responsibility to be socially responsible, governmental pressure, competitors environmental activities, and costs factors

31

associated with waste disposal, or reductions in material usage forces firma to modify their behavior. While these are compelling reasons to immediately start investing in green projects in order to tap into this profitable segment, several changes need to be initiated. Herein lies the problem change can be very expensive. Expenditure will be incurred when some of the existing processes in manufacturing green goods and services have to be changed. Segment 4: Non-Profit Organization While not a particularly lucrative group, this segment may be especially appealing for companies that provide recycling and waste disposal services. Since part of the green dilemma is rooted in the reduction of waste, business connected with waste disposal will find this segment a viable customer. However, because this segment often operates as non-profit institutions, budgetary constraints will limit the extent to which they will be able to expend rupees for waste reduction purposes. Nonetheless, if the trend of environment related regulatory policies continue, hospitals and universities (among others) will have no choice but to allocate part of their budget for waste reduction purposes. The NGOs must work hard in hand with the central as well as state government to stop environmental degradation such as illegal felling of trees for commercial purpose. It is suggested that NGOs, rather than partnering with the individual companies and opening themselves to the criticism of bedding with the devil would be better to partner trade and professional organizations.

Choosing the Right Market and Strategy Formulation


Choosing the right market is the foundation for sound strategy. Based on a companys target market, recommendations can be made on product, price, promotion, and distribution policies. Effectively tapping into a specific market, offers a marketers a leading edge. Likewise, if the segment is satisfied with the companys offerings, it may become a niche for the companys products. Here, we have identified four portable segments for green goods and services. Regardless of choice, each segment provides challenging pursuits for any company. With high barriers to entry, large capital expenditures, changing technology, and strong competition, the choice of the right target market is crucial.

32

While identifying the proper market is one step towards finding a niche, we also need to properly position and differentiate our products. Should we emphasize the the companys use of recycled material? Or, should the label on our packaging highlight that it is made from the recycled material? Or, should our advertising focus on being environmentally friendly? Based on the current trends the environmentally friendly features of goods and services are perceived to offer unique benefits to users or buyers. This is critical in product positioning. These positive perceptions can serve as competitive advantages in gaining an environmental lead. Therefore, as a (strong) competitive advantage it becomes an important selling point in product diffrentiation and positioning.

Green Products and 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 that are originally grown 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.

THE FUTURE 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 marketings future? Business scholars have viewed it as a fringe topic, given that environmentalisms acceptance of limits and conservation does not mesh well with marketings traditional axioms of give customer what they want and sell as much as you can.

33

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. Promote and deliver the consumer desired value of environmental products and target 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 FOR GREEN COMMUNICATION



34

Make environmental messages consistent with the companys existing voice in the market place. Empower consumers to get involved to make a difference. Enlist cultural icons to tell the story. Show that environmental initiatives lead to better quality products.

Be ready to experiment publicly, even if it doesnt always lead to success. Price environmentally preferable products comparable to conventional ones. Link environmental innovations to other benefits, like quality and durability. Thanks customers for making good, green choices, and tell them how they are making a difference. Seek recognition from peers and activists groups and challenge competitors to join in. Green products shouldnt be any different from regular ones in branding, price, use or performance.

Role of Information Technology in Green Marketing


IT departments are under increasing scrutiny and pressure to deliver environmentally sound solutions. Large data centers are one of the most significant energy consumers in an organizations IT infrastructure, so any measures that the organization can take to reduce this consumption (and therefore also carbon dioxide emissions) will have a positive impact on the organizations environmental footprint. Gartner reveals that during the last five years, the power demands of equipments have grown by five or more times. Additionally, a report issued by the environmental Protection Agency in US indicates that environmental issues have placed IT departments under pressure to develop green data centers. A green data centre is defined as one in which the mechanical, lighting, electrical and computer systems are designed for maximum energy efficiency and minimum environmental impact. The construction and operation of a green data centre involved in advanced technologies and strategies. Some examples include: Reducing the power consumption of the data centre. Minimizing the footprints of the buildings. Maximizing cooling efficiency. Using Low-emission building materials, carpets and paints. Installing catalytic converters on backup generators. Using alternative energy technologies such as photovoltaic electrical heat pumps and evaporating cooling.

35

The consumption of energy is considered the dominant- and often the only-factor in defining whether or not a facility is green. IT executives therefore need to start investigating alternative ways of building energy-efficient data centers. This paper focuses on How a Green Data Centre can be a Great Marketing Tool

36

CHAPTER 7
UNDERSTANDING CONSUMER BEHAVIOUR
Carbon labels show consumers the Carbon Content of an individual product. An items content is the total amount of carbon dioxide emitted from very stage of its production and distribution, from source to store. This is also known as embedded carbon, or a carbon footprint. Todays consumer is more ethically and environmentally aware than ever before, and increasingly so with regard to the consumption of food and drink. In the media, on the shelves, the focus on reducing our carbon footprint is constantly present, and the push to understand where our food is from increasing. Carbon labeling is a really recent development. The focus on reducing carbon footprint is constantly present, and the push to understand what they are purchasing and consuming. But to make it a success, the understanding regarding: a) What they are purchasing? b) How are they prioritizing- between organic, fair trade, carbon friendly and so on? c) Whether the consumers are getting what they want to purchase?

Study Findings on the Basis of Literature Regarding Consumer Behavior:


I. Consumers show different attitudes to issues like: a) Food quality is shoppers most important concern. Price is also very important for those on lower incomes. b) Whether health, environmental and social issues are very important in relation to the food they buy. c) Concerns for health, environmental and social issues vary with household income or not. d) Concern for health, environmental and social issues increase with age or not. e) Women do most of the shopping, and they are more concerned about health, environmental and social issues than men. f) Attitudes vary regionally, and there is particularly strong concern in the South West.

37

I. Familiarity with labels for different consumers is different: How familiar are you with each of the following types of information on product packets on the basis of: a) Most people are at least somewhat familiar with most forms of product information. b) Familiarity with the product information is much higher among people who think the issues are very important. I. Use of labels had different perceptions for different consumers: use of the following types of information when making decisions about what consumers buy is different for every consumer on the basis of: a) Product information is used by many consumers. b) There is a clear link between concern about health, environmental and social issues and use of relevant product information. c) The gap between attitudes and behavior is wider in relation to environmental and social issues that in it is with the mainstream health. d) There is little variation with income, except organic labels are used more by people with higher incomes. e) Product labeling is generally used more by older people. f) Women use nutrition information more, but broadly similar numbers of men and women use organic and Fair trade information. g) Different patterns of use in different regions. I. Use of other sources of information is different on the basis of: a) Product packaging information is used often by many more people than most other sources of information. I. Barriers to greater integration into shopping behavior on the basis of changing patterns of consumption mean that increasingly consumers are considering the social, environmental and health issues associated with production and consumption: a) Products too expensive is the number one barrier. b) Takes too much time is the second biggest barrier to choosing healthy food.

38

c) I dont know enough about it is the second biggest barrier to choosing environmentally friendly and socially responsible food. d) Other barriers are significant or not, like: Unavailability of products (either altogether, or of sufficient quality). Lack of understanding about the issues in general. Difficulty in understanding the product information. Concerns about the reliability of the product information.

Limitations towards Positive Consumer Perception


The three main barriers to consumers taking health, social and environmental issues like carbon labeling into greater account are price, time and lack of knowledge.
1. The Limits of Consumer Understanding: Despite the very extensive coverage of issues

such as climate change, relatively few consumers are making the link between these big issues and their day-to-day behavior. For those wishing to change consumer behavior there is clearly a need to increase public understanding. If public understanding of these linkages can be increased then the findings of their survey would suggest that the behavior of large number of consumers could be changed substantially quite quickly.
2. The Limits of Consumer Power: Changing consumer behavior is seen as a key element

in driving systematic change, particularly around sustainability and tackling poverty and inequality. This research will also reflect some of the barriers through which further changes in consumer behavior can be overcome. The real test is now for action that will make a difference for all consumers, particularly those from lower income households and it is everyones responsibility to make this happen.

Green Marketing Strategies versus Conventional Marketing


39

CONVENTIONAL MARKETING
Consumers Products Consumers with lifestyles

GREEN MARKETING
Human beings with lives Cradle flexible

Cradle-to-gave one size fits for all Cradle-to products services

Marketing and Selling oriented and benefits Communication Corporate

Educational Values Interdependent, Holistic, long

Receptive, Independent, competitive, Proactive, Departmentalized, Short term oriented profit cooperative, maximizing. term

Environmentally Conscious Consumer Behavior


Environmentally Conscious Behavior (ECCB) is consumer behavior 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 consumers 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.

What drives Environmentally Conscious Consumer Behavior


It has been proved through research across a wide range of academic disciplines including economics, psychology and sociology, that there are many different motivations and influences that drive consumer behavior. For every individual, the ultimate purchasing decisions and rationale to reinforce what is environmentally correct will vary. While individuals have deferring levels of need, values and knowledge related to various resources and their uses, no single answer on what is better will satisfy the value and beliefs of all people. Purchasing habits fluctuate over time with every generation, but because of increased access to new
40

technology and uncertainty due to world events and insecure futures, the consumer trends of generations have changed. In order for businesses to appeal to these Environmentally Conscious Consumers, it is important to understand Who are environmentally conscious consumers. What are the factors influencing their purchasing decisions and behavior. What are the buying habits and how they have changed.

The proposed framework presents Environmentally Consciousness Consumer Behavior (ECCB) as a process involving consumer environment, constructs, mediators and outcomes. The underlying influencers of ECCB are complex and different approaches to consumer motivation account for them in various ways.

Green Buyers and Green Consumers


Research about the identity and nature of green consumer has been the central character in the development of green marketing, as business attempt to understand and respond to external pressures to improve their environmental performance. Marketing practitioners and academics are attempting to identify and understand green consumers and their needs, and to develop market offerings that meet these needs. SEGMENTATION OF GREEN CONSUMERS

True-Blue Greens- The most environmentally active segment of the society. Greenback Greens- Those most willing to pay the highest premium for green products. Spouts- Fence-sitters who have embraced environmentalism more slowly. Grousers- Uninvolved or disinterested in environmental issues, who feel the issues are too big for them to solve. Apathetic- The least engaged group who believe that the environmental indifference is main stream.

Apart from this Natural Marketing Institute(NMI) divides the market into following categories:

Lohas- Very progressive on environment and society, looking for ways to do more; not too concerned about price. Naturalites- Primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment.

41

Conventional- Practical, like to see the results of what they do; interested in green products that make sense in the long run. Drifters- Not too concerned about the environment, figuring weve got time to fix the environmental problems; dont necessarily buy a lot of green products. Unconcerned- Have other priorities, not really sure what green products are available and probably wouldnt be interested anyway; they buy products strictly on price, value, quality and convenience.

Consumer Information and Education


If managers believe that consumers view greenness as a motivating variable, they should invest in conveying information through advertising, direct mailing, brand labels, in-store displays and pamphlets. The important points to be noted here are: a) Firms willing to provide clear, comprehensive and credible information must ensure that consumers have low cost to access it. b) Governmental policies and stakeholder initiatives can be important in reducing consumers search, information or transaction costs. c) Regulators can publish and disseminate it to the media by press releases and post it on the internet. d) Stakeholders can use the media as well as use their organization-specific vehicles such as newsletters. Green marketing can be successfully implemented by use of ICT in cost effective way: By developing compelling, concise messages, plan innovative ways to repeatedly deliver, identify appropriate links within network of political, legislative, non-profit organization and media, develop concept based programs and events.
42

Utilize extensive relationship with local and national media to get a clients message to the right media targets. Identify venues, plan tours, identify audiences, and organize meals, speakers and press. Strategies and plan joint PR initiatives as well as joint advertising campaigns and events to cross-promote companies and organization campaigns. Help develop identify and branding for print, broadcast and digital mediums. Consulting and creation of a corporate design, brochures, leaflets, info materials.

Develop web sites, e-mail campaigns, and banner advertising. Develop creative print, broadcast and digital advertising, identify advertising targets and purchase appropriate media slots.

43

CHAPTER 8
TOWARDS A GREEN MARKETING PARTNERSHIP
Worldwide evidence indicates people are concerned about the environment and are changing their behavior accordingly. As a result there is a growing market for sustainable and socially responsible products and services. The types of businesses that exist, the products that they produce and their approaches to marketing are changing. Successful green marketers will reap the rewards of healthy profits and improved shareholder value and help in making the world a better place for future generations.

Identify and Close the Green Gap


Right now, gaps exist on both sides of the market, between where customers are today and the preferences that will help sustain a future market. There is also a gap, between todays products and green designs of tomorrow. Greening the market means closing the gaps. A process must be established that progressively closes these gaps, so that the market can evolve into one that meets all customer needs while delivering vastly superior environmental performance. Here Environmental Values would mean care about health, air quality, toxics and concerns for future generations. The focus on the market oriented mechanisms is also required along with R&D to close the gaps. These gaps cab be closed by innovatively addressing the following area:
a) Green product: This includes identifying customers environmental needs, developing

environmentally responsible green products like-products made from recycled goods, products which save water, energy, gasoline, money, etc.
b) Green Value and lesser Price: It has been analyzed that most customers will only be

prepared to pay a premium if there is a perception of additional product value. Environmentally responsible products are often less expensive when product life cycle costs are taken into consideration even though their purchase cost is high. For example fuel efficient vehicles, water efficient printing and non-hazardous products decrease overall costs.Over a period of time due to research and advancement in technologies the companies will manage to produce environment friendly product at low costs and will even sell at low price.
44

c) Customer Information: Idea of Green needs to be communicated to the customers

through campaigns and advertisements.


d) Special and Green Place: the location must differentiate green marketers from

competitors. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits.
e) Green promotion Aided by ICT: smart green marketers will be able to reinforce

environmental credibility by using sustainable marketing and communication tools and practices. E-marketing is rapidly replacing more traditional marketing methods. For example, many companies are providing electronic statements by e-mail.

Greening the Market Means Closing the Gaps

Demand
Consumer Preference

Supply
Product Plans

Future Market

Environmental Values

Green Design

45

f) Partnership: The companies should recognize the value of alliances with other

companies, environmental groups and research organizations when promoting their environment commitment.
g) Trust: Corporate should never overstate environmental claims or establish unrealistic

expectations, and communicate simply and through sources that people trust.
h) Publicize Stories of the Companys and Employees Green Initiatives: This can be

done through networks to promote green credentials and achievements.


i) Compete for Environmental Awards: The companies should try to enter into

environmental award programs to enhance their environmental profile/credentials before customers and stakeholders.

Identify and Target the Green Consumer


According to David Wheeler, the green consumers are distributed somehow like this: Green Consumer, who no matter what will only buy the green product. Green Activists that may not be able or willing to pay more, or to travel the distance to the specialist store where the offered product is, but try to promote the product and try to buy it any time they can, when the budget and the opportunity allow them. Latent Greens, who are willing to pay more for the product if the properties of the product, are same as of the others. Inactive, who only would buy a green or social product if the price and properties are the same that the non-denominational ones.

Fig: Types of Green Consumers

46

Thus to take the advantage of the emerging green market, a) It is important to understand who green consumers are and the factors influencing their purchasing decisions and behavior. b) Target products to women who generally buy on behalf of men and families. c) Use the influence of children (green consumers of the future) to encourage parents to try green products. d) Offer samples and incentives to try products, effectively communicate assurance of quality-for example quality of performance, look, feel, fit, comfort, durability, etc.
e) Linking environmental attributes (energy efficiency or toxic substance reduction) with

other benefits such as lower price, convenience or quality of life improvements, emphasis on personal benefits by using terms such as safe, non-toxic, cost effective, rather than biodegradable or ozone friendly, making use of the product simple- for example, minimize or eliminate refilling bottles, select mainstream distributors where possible, offer one-stop shopping and eye-appealing displays, reinforce product benefits with evidence of corporate environmental performance and improvements. For green marketing to be effective, you have to do three things; be genuine, educate your customers, and give them the opportunity to participate. 1)Being genuine means that: a) that you are actually doing what you claim to be doing in your green marketing campaign and b) that 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. 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) 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.

47

CHAPTER 9
GREEN MARKETING: A CORPORATE INITIATIVE
It is important in todays world because mankind has limited resources on the earth and if we want long term sustainability of human life on this earths surface, then companies has to learn to conserve these scarce natural resources and create products that have less environmental damage. Otherwise the very existence of humankind will be under question mark. Corporate are going green from the grassroots level to sustain and win the customers expectations. The environment is becoming increasingly important part of the corporate reputations and they are actively participating in greening the corporate strategy. Companies have converted almost all the products to make them eco-friendly products. Following are the recent environment friendly initiatives taken by the companies.

Sony: Green ODO Line Products

Sony has recently launched developed and launched a range of innovative products named as ODO line products also called as Eco-chic. These products do not require AC adapter as they were powered by kinetic or solar energy. Sony has used simplified packaging and recycled

48

plastic in the manufacturing of ODO products as a Sustainable Product initiative. The ODO line products comprise of five products:
1. Spin N Snap: The spin and snap is a digital camera. It has two holes which are used as

viewfinder and chargers. On spinning the camera on ones fingers generates kinetic energy and charges the device.
2. Push Power Play: Push power play is a display device with a roller on the base. The

rollers are used to charge the device by the friction of the device with hard surface.
3. Crank N Capture: Crank and Capture is a digital video camera with a crank used to

operate and generate power.


4. Pull and Play: The pull and play is a stereo headphone with a cord to simply pull and

use.
5. Juice Box: The juice box is a credit card sized object used to recharge the other ODO

products. Sony has also added a new Twirl N Take hand powered digital camera to the odo line series. Twirl N take digital camera has a sleek stem circle design. It is recharged by rolling the round wheel on the hard surface.

Sonys ODO line product series are the most innovative eco-friendly products which are very safe and handy. Even children can also use these products.

49

IFC: Green Mutual Fun for Asia


The European countries are innovative new supports for actively involving the Asian countries in green movement. Green Movement in Asian countries is growing at slow pace as compare to other European and American countries. To support the environment in Asian countries, IFC (International Finance Corporation), a member of the World Bank, has recently announced a first investment plan of 15 million for third party environment focused private equity fund. Along with the IFC, Swedish government risk capital company Swedfund and French development company Prooarco will also invest euro 8 million and euro 5 million respectively in the same fund. The fund will be managed by Aloe Private Equity. The funds will support the companies in India and China which will focus on clean and renewable energy, waste recycling, emissions controls, and eco-processes.

Cipla: CFC-free Inhaler

Fig: Two of Ciplas major products, the Rotahaler and the Asthalin inhaler Cipla-Indias second largest drug company by market share has planned and started replacing all its CFC contained drugs to meet the international standard and Montreal Protocol ban deadline. The CFC depletes the ozone layer and also is a major cause of global warming. Cipla has updated the necessary technology to avoid the CFC and has also done its clinical trial in India and overseas. The Rotahaler and the Asthalin inhaler are environment friendly inhalers, used by asthma and bronchitis patients. These inhalers are using HFA (Hydro Fluro Alkaline) technology. The Rotahaler is a powder based inhaler, different from regular inhaler which contains propellants.

Maruti Suzuki
50

The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly. The company credited the 'Just-in-Time' philosophy adopted and internalized by the employees as the prime reason that helped to excel in this direction. The company has been promoting 3R since its inception. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption. The company has implemented rain water harvesting to recharge the aquifers. Also, recyclable packing for bought out components is being actively promoted. The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. Regular training programs are conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more guidance. The systems and the environmental performance of suppliers are audited. The green co-efficient of this system is much better than the conventional system The Countrys largest car manufacturer had managed to slash energy consumption per car at its Gurgaon factory by 26 per cent over the past six years, while its carbon dioxide (CO2) emissions during car manufacturing processes has come down 39 per cent in the past five years. The model with gas as fuel was adopted by Maruti Suzuki India Limited as their Green Marketing practices.

Bharat Petroleum
Bharat Petroleum launched a campaign to position itself as a responsible corporate green entity. Foraying into renewable energy-solar and wind power-it installed solar panels on its service stations. It also ran a program to cut production of greenhouse gases by 10% across its units worldwide and achieved it much ahead of schedule. Cleaner fuels such as Greener Diesel (ultra low sulphur content) and BP Auotgas were developed. Almost all of its plants are ISO 14001 certified. Currently it is running a program to contain its net emissions at current levels for ten years.

Hindustan petroleum

51

Hindustan petroleum owns a massive e-waste recycling plants, where enormous shredders and granulators reduce four million pounds of computer detritus each month to bite-sized chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and even some precious metals. HP will take back any brand of equipment; its own machines are 100 percent recyclable. It has promised to cut energy consumption by 20 percent by 2010.

Proctor & Gamble


Laundry detergents are also touting energy savings. Proctor & Gambles (P&G) newest market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About 80 to 85 percent of the energy used to wash clothes from heating water. Working with utility companies, P and G found that consumers could save energy and resources by using cold rather than warm water. As energy and resource prices continue to soar, opportunities for products offering efficiency and savings are destined for market growth.

ITC

ITC has been 'Carbon Positive for three years in a row sequestering/storing twice the amount of CO2 than the Company emits. It has been 'Water Positive' six years in a row creating three times more Rainwater Harvesting potential than ITC's net consumption. It has obtained close to 100% solid waste recycling. All Environment, Health and Safety Management Systems in ITC conform to the best international standards. ITC's businesses generate livelihoods for over 5 million people. ITC's globally recognized e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas. ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programs.

HCL's ENVIRONMENT MANAGEMENT AND ECOSAFE POLICY


52

In building a system to identify, develop and sustain the maintenance of an environment management system at corporate level they have formulated a program that they proudly refer as HCL's ecosafe. Their aim is to encapsulate knowledge, awareness, and key developments on all environmental issues faced by today's world and to incorporate these in HCL's operations assuring their commitment in delivering quality products, solutions and services. The key objective under HCL ecosafe is targeted at integrating environmental management procedures into its business processes thereby protecting the environment, health, and safety of all its stakeholders. HCL commits to manufacture products that are environment friendly in all respects and are free from hazardous chemicals. HCL ecosafe focuses on product lifecycle management to ensure that their products right from when they are manufactured, bought by customers, recovered at their end-of-life and recycled after useful life is done in an environmentally responsible manner.

Strategies To Be Implemented 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

53

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. 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 customers 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
54

be sustainable. Consumers dont expect perfection when it comes to sustainability but they want to see that brands understand the scale of the problem, have a plan and are in the process of implementing it.

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.

55

CHAPTER 10
ANALYSIS OF EFFECTS OF GREEN MARKETING

PRIMARY DATA
The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and performs surveys. Here the Primary data has been collected by means of preparing a questionnaire and getting it filled by consumers. These questionnaires have helped in drawing conclusions about the case.

SIZE OF SAMPLE: This refers to the numbers of items to be selected from universe to constitute a sample. An optimum sample is one, which fulfills the requirements of efficiency, representativeness, reliability and flexibility. Sample Size: - 50 Customers

SAMPLE TYPE: CONVENIENCE SAMPLING: - When population elements are selected for inclusion in the sample based on the case of access; it can be called convenience sampling.

RESEARCH METHODOLOGY
This study is based on stratified sampling and a structured questionnaire has been used to gather data from about 50 respondents to analyze effects of green marketing. By analyzing respondents answers towards the questions helps to understand the various aspects related to green marketing. The study attempts to expand research on exploring how many people have positive attitude towards green marketing and what are their thoughts on it.

56

FINDINGS What is your age?

What comes to your mind when you hear the word Green?
Respondents(%) 70 Response Trees 20 Environment 5 Prosperity 5 Others

Have you heard of any campaign related to Green Marketing?

Have you been part of any such campaign?

Do you consider the environmental aspects of the products before buying them?

Do you think that Green Marketing and advertising are good sources of information about green products and services?

Do you think that Green Marketing activities are good at addressing environmental issues?

57

Do you think Green Marketing activities results in better products?

Do you think that Green Marketing strengthen companys image in the mind of consumers?

Do you think that companies that focus on environmental concerns persuade consumers to buy products?

Are you aware of the eco-labeling initiatives of the government?

58

CHAPTER 11
CONCLUSION AND RECOMMENDATIONS Conclusion
Green marketing do not strengthen companys image in the mind of respondents that is very much clear from trustworthiness of green claims and certainly it do not have positive image of the organization in the minds of the respondents. It was observed that the respondents who were more proactive with the environmental behavior have positive attitude towards green advertisements. It means green advertisements have positive impact on only those who are already practicing it. Rest of the respondents who were passive had very less impact on their buying behavior. This is the crucial aspect that needs to be changed so that they can have positive impact on all the target market which will have an effect on their buying behavior. The result of the study indicate that the advertisements not reflected the companies level of greenness and the proposition that green advertising reflects environmentally sound strategic and structural level decisions. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, the responsibility should not be theirs alone. Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. Having said this, it must not be forgotten that the industrial buyer also has the ability to pressure suppliers to modify their activities. Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally "responsible" fashion. Final consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities. Thus green marketing should look at minimizing environmental harm, not necessarily eliminating it.

59

Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, ultimately it is consumers who demand goods, and thus create environmental problems. One example of this is where 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 disposes of their waste in an inappropriate fashion. While firms can have a great impact on the natural environment, the responsibility should not be theirs alone. It appears that consumers are not overly committed to improving their environment and may be looking to lay too much responsibility on industry and government. Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. It must not be forgotten that the industrial buyer also has the ability to pressure suppliers to modify their activities. Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally "responsible" fashion. Final consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities.

RECOMMENDATIONS
Finite resources such as oil, metal, and even fresh water will become scarcer and more expensive. If businesses do not become more efficient in using these resources it will have a huge impact on the bottom line. Investing in Green Products thus changes from beyond doing good to ultimately good business sense. Thus they should: Invest in research and create clean and environment friendly products. Clean energy sources such as solar, wind, bio-fuels and hydral power. Water harvesting. Recycle at every level. Move towards paper less office. Educate masses of the environment issues because they are going to be the bulk consumers.
60

Socially responsible investing in environment driven projects. Plant more trees. The corporations must rethink: Their raw material and procurement strategies. They should develop new products They should redesign existing products and service. They should realize that pollution prevention can be a cost saving activity. They should steer their product and packaging designs to use less material.

61

ANNEXURE
Questionnaire for Green Marketing

Name: Age: Occupation:

_____________________________ _____________________________ _____________________________

1. What comes to your mind when you hear the word Green? ______________________________________________________________ 2. Have you heard of any campaign related to Green Marketing?


62

Yes Yes Yes

No No No

3. Have you been part of any such campaign?

4. Do you consider the environmental aspects of the products before buying them?

5. Do you think that Green Marketing and advertising are good sources of information

about green products and services? Yes No


6. Do you think that Green Marketing activities are good at addressing environmental

issues? Yes Yes No No


7. Do you think Green Marketing activities results in better products?

8. Do you think that Green Marketing strengthen companys image in the mind of consumers? Yes No
9. Do you think that companies that focus on environmental concerns persuade

consumers to buy products? Yes Yes No No


10. Are you aware of the eco-labeling initiatives of the government?

CHAPTER 12
BIBLIOGRAPHY
J.A Ottman,. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June2006 www.greenmarketing.net www.greenpeace.org/international www.greeneconomics.com

Books:

The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding The myth of green marketing Green Marketing: Opportunity for Innovation

63