Green Marketing Strategies and

Sustainability by Organization to
enhance their performance
By
Ms. Amrita Chaurasia
And Mr. Kuldeep Agnihotri
 Green Marketing

• Green marketing is considered as one of the

major trends in modern business (Kassaye, 2001;
McDaniel and Rylander, 1993; Pujari and Wright,
1996; Simms, 1992).
• The demand for ecological products and
sustainable business activities was determined by
an increase in the customers’ awareness
concerning environmental issues, as well as by
stricter regulations introduced by national
governments, especially in industrially developed
countries
 Sustainable Development
• Sustainable Development Goals (SDG), the issue has
gathered more impetus.
• The SDG has seventeen agenda but among them,
Agenda3 (dealing with good health and wellbeing),
• Agenda 6 (dealing with clean water and sanitation),
• Agenda 7 (dealing with affordable and clean energy),
Agenda 11 (dealing with responsible consumption and
production) and
• Agenda 13 (dealing with climate change) are
particularly important
 Green Marketing Strategies
• Greening has certain levels like (corporate,
business, tactical, functional)The level of the
greenness impacts on the green strategies’
implementation activities (targeting, positioning,
pricing, design, logistics, alliances, and on the
company’s green marketing mix 7P
(product/service, place, price, promotion,
procedures, processes, people and physical
surroundings), and it will result in a particular
consequences, such as competitive advantage
through crating value and adding value, through
enhanced social image,
 Green Marketing Strategies
• Through reduced prices and higher ROI, through
greening the whole B2B supply chain and
greening the entire service/product life-cycle.
Besides, the macro environmental conditions also
affect the level of corporate environmentalism.
• Eco-labeling of products and services is one of
the most vital tool helping in implementing green
polices and supporting in increasing of consumers
loyalty and trust in the long-run.
 The 2014 Nielsen Global Survey on
Corporate Social Responsibility
• Polled 30,000 consumers from 60 countries to determine statistics
on consumer preferences for sustainable purchasing, and found
that:
• 55% of consumers were willing to pay extra for products and
services from companies committed to positive social and
environmental impact (up from 45% in 2011)
• 52% made at least one purchase in the past six months from at
least one socially responsible company
• 52% check product packaging to ensure sustainable impact
• Interestingly, consumers in the Asia-Pacific region, Latin America,
and the Middle East/Africa showed a higher preference (64%, 63%,
63%) to pay extra, whereas the preference in North America and
Europe was lower (42% and 40%).
 Sustainability in organization
• PepsiCo(2012) sustainability efforts include: Working
with farmers to monitor water usage and carbon
emissions and maximize crop yields
• Retrofitting factories and corporate offices to improve
energy efficiency.
• For example, the 350 employee Casa Grande Frito Lay
facility in Arizona generates half the plant's electricity
requirements with solar power, water is recycled to
drinking standards, and waste is recycled wherever
possible. The facility is one of over 20 other PepsiCo
sites certified to LEED sustainability standards. (WARD,
2018)
Sustainability at Mahindra & Mahindra
• sustainability means not only the conservation of
the environment, but also the well being of our
stakeholders, communities, and the world-at-
large. It is an integral part of our business, and a
defining driver on our road to long-term
profitability. Its entails financial growth and
profit, and responsibility towards communities
and stakeholders, giving back, good governance,
ethical practices, and respecting the law of the
land.
 Sustainability Index 2015
• Three group companies - Mahindra &
Mahindra, Mahindra Finance and Tech
Mahindra - have featured in the Dow Jones
Sustainability Index 2015. While Mahindra &
Mahindra and Mahindra Finance feature in
the "Emerging Markets Index", Tech Mahindra
features in both, the DJSI Emerging Market
Index and the World Index. This is proof, if any,
of how we are performing on driving the
sustainability agenda.
 sustainability is strategic to business
A platform for innovation, an operational philosophy, a powerful tool
to build competitive advantage and the measure of Mahindra and
Mahindra future readiness.
• Specific Carbon Footprint Reduction 20% in 2015-16
• Use of Renewable Power 6% in year 2015 -16
• Specific Water Footprint Reduction 25%
• Reduction in Paint Sludge 25%
• Reduction in Packaging Waste 15%
• Upstream Supply (supplier)
• Capacity Building (no. of suppliers) 400 in 2015 -16
• Emission Reduction for M&M Fleet 5%
• Aim Towards Zero Accident (nos.) 8% plan to 0%
• Vocational Training to Youth 50 (no. in thousands) (AD + FD)
 Sustainable Mobility initiative, by
Mahindra
• Mahindra enters high growth electric car segment acquires majority
stake in REVA
• From solar lamps and water jugs and even prosthetic limbs, 3D
printing has the potential to drive positive change in the lives of
people everywhere. The Mahindra Group has now designed and
implemented a pilot project to bring its benefits to semi-urban and
rural India.
• Under its core Sustainable Mobility initiative, Mahindra has
been working for the last 10 years on developing green
technologies and has demonstrated diesel hybrid technology on
the Scorpio and hydrogen Alfa three wheelers. Mahindra has a
pilot fleet operating with 100% bio-diesel and was the first to
launch micro-hybrid technology in India with around 50,000 such
micro-hybrids on the road
 Objectives of the Study

• To understand the green marketing strategies

and Sustainability by Mahindra Reva Electric
Vehicles Pvt. Ltd to enhance their
performance.
 Event study methodology
• Event study methodology measures the degree of the effect that an
unanticipated event has on the expected profitability and risk of a
portfolio of organizations associated with that event. The theory
underlying event study methodology is the efficient market hypothesis
(Fama et al. 1969). The study will consider eight steps methodology of
Seiler (2004) is used as a guideline. The steps are:

1. Identify the event date

2. Define the event window
3. Define the estimation period
4. Select the sample of firms
5. Calculate "normal" returns
6. Calculate abnormal returns (ARs)
7. Calculate cumulative abnormal returns (CARs)
8. Determine the statistical significance of the ARs and the CARs
 Sampling Design
• Sampling Design: The study will use statistical
data based on the event that happen in
organization for drawing sample for the study.
• To identify the event date, which is defined as the
time, when the market first learns of the current
updates (the event).
• The study will consider events of Mahindra Reva
Electric Vehicles Pvt. Ltd Since the industries
announced that they launched of E20 car are
focus on green marketing strategies to increase
their organizational performance
 Tools for data collection
• Tools for data collection: The secondary data
focus on the event window, two aspects will be
considered; First, Current Updates in the Market
& Second, strong response of the market. Best
possible number of trading dates to include in the
event window as -90 and +90 trading days will be
used.
• The current updated events used in this research
will be identified at the time of high degree of
certainty
 Corporate Announcement for the
Event Window (90 to +90 days)
Date Event

31-Jan- Mahindra Forgings Ltd has submitted to BSE a copy of Results Press Release
13 dated January 31, 2013

31- Mahindra Forgings Ltd has informed BSE about the Financial Results.
Dec-12

22- Mahindra Forgings Ltd has submitted to BSE a copy of Results Press Release
Oct-12 dated October 22, 2012

30- Mahindra Forgings Ltd has informed BSE about the Financial Results & a copy
Sep-12 of the Limited Review.
Source: BSE Website and Mahindra Annual Reports
 Tools for Data analysis
• The risk-adjusted return approach, expected
returns over the event window is calculated by
using ordinary least squares regression.
• In the regression analysis, expected returns will
be predicted by various independent variables.
When the normal returns are calculated, the
abnormal returns can be determined by
subtracting the normal returns from the actual
return. These abnormal returns are hypothesized
to be the effect of the event.
 Alpha and Beta Estimates for
Mahindra Reva In Relation To
Coefficients
Model Unstandardized Standardized t Sig
Coefficients Coefficients

Beta Std. Error

Constant - 0.00205433 0.671727259 - 0.13246
3 0118
Auto 0.003115607 1.51660
Index 2974
Dependent Variable: Mahindra Moto Ltd.
Cumulative Abnormal Return 31.97919214
 Result and Discussion
• We use Mahindra Reva share price as a base and
dependent variable and Auto index as independent variable
also the corporate announcement made by Mahindra reva
during the tenure of 180 days of the event or any other
public information by Mahindra Reva on environments,
that provide a base for a powerful test on the impact of the
event announcement made by Mahindra reva apart from
launching of electronic vehicle car, we take 90 days before
and 90 days after the event date i.e. the date of launching
the Mahindra Reva car, First, we show that events have a
more pronounced impact on the Mahindra reva shares so
we exclude the corporate announcement made by
organization towards their
 Result and Discussion
• strategies change and annual meetings as it events
have an impact on return volatility. So we exclude
these events from our event window. Second, we find
that the regression intercepts as beta value have -
0.3115607 and as an impact on abnormal returns and
expected returns of the event widow as the return
volatilities of Mahindra firm increase with positive
unanticipated disclosures.
• We also find that the abnormal returns and Expected
Return with the help of liner regression brings
noticeable changes in cumulative abnormal returns
with a positive change of 31.97919214. This we
calculate with the t statistics of returns.
 Conclusion
• We also find that green marketing strategies as an event have a larger
impact compared to other marketing event announce by the firm,
when comparing the abnormal returns of both the events the results
are less pronounced.
• Shareholders focus their attention on any changes or event
announcement made by organization, which results in noticeable
changes in return volatilities regardless if the event, is classified as
extreme or non –extreme and positive or negative returns.
• The event study methodology provides researches the sophisticated
effect of an event on the investors and researches are able to
understand the market behavior of shares on the returns of the
organization.
• Researchers often choose to use the event study methodology to
examine the direction, magnitude and speed of the price reactions to
the various phenomenon in corporate finance, marketing and strategy.
 The implications of our results
• When firms disclose information, how stakeholders view
the information will have a direct effect on firm volatility.
• If the disclosure is seen as negative, the volatility of the
firms will increase, and if the disclosure is seen as positive,
a firm’s return volatility will stabilize.
• When events occur, the reaction to the disclosure will have
a significant impact on firm returns. Strategies (CSR) events
have an impact around the event window;
• Therefore, firms need to act straight away to reduce the
impact of strategies events. As marketing and economic
events have a more pronounced effect, firms need to take
both a proactive and reactive stand to reduce return
volatility
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