1. SUMMER PROJECT REPORT SUBMITTED TOWARDS THE
PARTIAL FULFILLMENT OF UNDER GRADUATE DEGREE
IN BUSINESS ADMINISTRATION
Green Marketing
SUBMITTED BY:
xxxxxx
BBA (2012-2015)
Roll No. : xx
xxxxxxxxx
FACULTY GUIDE
xxxxxxxxx
DESIGNATION
Lecturer
2. CERTIFICATE OF ORIGIN
This is to certify that I, xxxxxx, a student of Under Graduate Degree in
BBA General (2012-15), xxxxxxxxx has worked under the able guidance
and supervision of xxxxxx, Lecturer.
This Summer Project report has the requisite standard for the partial
fulfillment the Under Graduate Degree in Business Administration. To the
best of our knowledge no part of this report has been reproduced from any
other report and the contents are based on original research.
I am aware that in case of non-compliance, xxxxxxx is entitled to cancel
the report.
xxxxxx
BBA General (2012-15)
Enroll No.: xxxxxxx
Project Coordinator xxxxxxxxx
(Faculty
Guide)
2
3. ACKNOWLEDGEMENT
I express my sincere gratitude to my faculty guide xxxxxx Lecturer, for her
able guidance, continuous support and cooperation throughout my project,
without which the present work would not have been possible.
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5. Consumer Buying Decision. . . . . . . . . . . . . . . . . .
39
Green Marketing Strategies. . . . . . . . . . . . . . . . . .
42
McKinsey’s Five Steps to Green Marketing. . . . . . . . . . . . .
47
Five Signs of True Green Product. . . . . . . . . . . . . . . . .
49
Idea of Successful Green Marketing. . . . . . . . . . . . . . . .
51
Conclusion. . . . . . . . . . . . . . . . . . . . . . . .
53
Bibliography. . . . . . . . . . . . . . . . . . . . . . . .
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OBJECTIVES
Green Marketing is a wide area of study with many things. The main objective of
this summer project is to understand the following things:
1. The basic terms and concept of Green Marketing
2. The Problems associated with Green Marketing.
3. The Importance of Green Marketing.
4. Companies who have adopted Green Marketing.
5. Marketing strategies used by the companies.
6. Effect on Consumers.
7. How to attain the Green Market?
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6. RESEARCH METHODOLOGY
Secondary research had been done to achieve my objectives. I read books, some
research papers and newspapers in order to collect all the data.
At the starting I downloaded some research papers from the internet and got some
books about green marketing from my local library. The research papers were quite
helpul. I went through all the research papers first and then I moved on to the books.
Facts on the Internet were also taken into consideration. There was a survey done by
some organization in Delhi. The survey was also taken into consideration while I
was making the summer project.
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7. EXECUTIVE SUMMARY
Environmentalism is growing as the crucial worldwide phenomena. With the rise in
global warming and other environmental issues, a new phase of Green firms is also
rising across the globe. India in regard of globalization is sweating to set similar
environmental and industrial standards. Indian companies as well as the Indian
operations of multinational companies have now started to join hands in this wave of
green movement across the world.
The concept of ‘corporate environmentalism’-green manufacturing facilities,
processes, products and green strategies is fast gaining widespread acceptability
around the globe.
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8. An Indian Perspective, green marketing is not all about manufacturing green
products and services but also encompassing all those marketing activities that are
needed to develop and sustain consumers eco-friendly attitudes and behaviors in a
way that will help in creating minimum negative impact on the environment.
Lifestyles of the people in India have undergone a great change over the last 10
years. With the rise in the disposable income and the rising levels of purchase of
consumer products and services have their consequences on environment quality
resulting in the degradation of the environment and depletion of natural resources.
Media is also playing a commendable role in highlighting the detrimental impact on
the environmental resources.
Also In today’s highly competitive market environment, where marketers are
desperately fighting for consumers mind space, there is a need for a strategy that
would differentiate the brand and appeal to both the consumer’s mindset and to the
profitability of the organization.
So while the trend of green marketing is gaining strength among the firms in India,
what needs to be identified is who and where is the green consumers and what are
the attitudes that reflect their environmental consciousness. What also need to be
identified are the things which might be responsible for the slow acceptance of green
products and services.
8
9. INTRODUCTION
Green marketing, also alternatively known as environmental marketing and
sustainable marketing, refers to an organization’s efforts at designing, promoting,
pricing and distributing products that will not harm the environment.
- (Pride and Ferrell
1993).
All activities designed to generate and facilitate any exchanges intended to satisfy
human needs or wants, such that the satisfaction of these needs and wants occurs,
with minimum detrimental impact on the environment is called Green Marketing.
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10. - Polonsky (1994)
However what needs to be acknowledged here is the fact that green marketing is not
only about developing green products and packages or making green claims but
includes all activities that could be done with a minimum detrimental impact on the
environment
A company which follows green marketing should have the following goals as
innate to its system:
1 • Eradicate the concept of waste
2 • Reinvent and re innovate the concept of a product
3 • Make prices reflect actual and environmental costs
4 • Make environmentalism profitable
Firms can ‘green’ themselves in three ways:
1 • Value-addition processes
2 • Management systems
3 • Products
Greening the value-addition processes could involve redesigning them, eradicating
some of them, modifying technology and/or introducing new technology – all with
the objective of reducing the environmental impact.
Management systems’ efficacy for greening value-addition processes is really
difficult to quantify if they are not accompanied by performance measures. Thus, by
having measurable (therefore, easily monitored and understood) performance
indicators, firms can surely make verifiable claims about the environmental impact
of their management systems.
The third greening strategy involves the products. This is especially evident in the
packaging of the product. This could take place in the following ways:
1 • Reuse – design a product so that it can be used many times
2 • Recycle – products can be reprocessed and converted into raw material to be
used in different or the same product.
10
11. 3 • Reduce – the product can use lesser raw materials or generate few disposable
waste but ensure that it delivers benefits comparable to its former version or to
competing products.
As proposed by the diagram given in the next page, businesses can use several
environmental friendly strategies in their decision making. Which strategies or
combination of different strategies are applicable or appropriate depends on the
value creation activities in which the enterprise is engaged.
1 No-waste technology
2 Life-costing analysis
3 Environmental Audit
4 Reformulation
5 Reduction
6 Reuse
7 Recycling
8 Waste networks
11
BIOSPHERE
ENVIRONMENT FRIENDLY
VALUE CREATION STREAM
12. For e.g suppliers of raw materials and manufacturers by the nature of their value
creating activities have the capability to use all of the above mentioned environment
friendly strategies.
Thus combined efforts by both the firms and the consumers can lead to the building
of an environmentally conscious and a long-term relationship.
12
SUPPLIERS
MANUFACTURERS
MARKETERS
CONSUMERS
INCENERATED LANDFILLED
Waste-to-energy
BIOSPHERE
DISPOSERS
1,2,3,4,
5,6,7,8
1,2,3,4,
5,6,7,8
5,6,7,8
5,6,7,8
7,8
14. Generalize with care. Consumer behavior will not be consistent across different
product types, and particular market segments may respond to certain issues on the
green agenda but not others.
Remember, the validity of a piece of market research is not related to the degree to
which it supports your preferred option.
Explore 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.
Ensure 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.
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 preconceptions about the green agenda (such as an assumption
that green products will cost extra) are not encoded within the questions.
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15. LITERATURE REVIEW
The green trend is more noticeable in the developed countries of the West; however
with the rising impact on the environment, the trend has started gaining grounds in
the developing countries like India also.
The Environmental Kuznets curve, named after the late Harvard economist and
Nobel Prize winner Simon Kuznets, dictates that “as poor countries become richer,
the demand for greener technologies becomes larger because nobody wants to live
in a world of pollution. Thus, as China and Eastern Europe indulge in larger slices
of global trade, they too will start looking for ways to clean up their backyards.”
The same would apply to India as well.
India is a country with a large growing population and as proposed by the
Malthusian theory, while the population rises in geometric progression, resources
increase only in arithmetic progression. And hence there is going to be a large
bundle of natural resources.
The Green Trend:
The above diagram explains the three elements and their interrelationship for the
evolution and growth of ‘Green’ trend.
Government
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Consumer
Government
Business
Organizations
16. Rules and regulations about the environmental preservation across the globe are
becoming more strict, driving firms worldwide to make more serious efforts.
The Kyoto protocol for instance that governs carbon emissions around the globe is
one such point. Countries that are ratified under this protocol are committed to
reduce their emissions of CO2 and five other green house gases or involve in
emission trading.
Also India is also one of the signatories to the international convention to curb
pollution. As per the provisions of the international convention, the government has
decided to put a ban on the use of diesel vehicles and more than a decade old
vehicles in order to control vehicular pollution in cities like Delhi, Mumbai etc.
Vehicular emissions checks have also been made compulsory for all the vehicles
running on the roads.
Government has also imposed the use of CNG buses and auto rickshaws in cities like
Ahmedabad, Delhi etc to reduce pollution. This calls for automobile makers to stick
to the environmental regulations and also come up with some new innovative
technology which is environment as well as people friendly.
The manufacture, sale and use of recycled plastic bags for carrying, storing or
packaging food products has been banned in Delhi and a few other states like
Andhra Pradesh, Kerala and Himachal Pradesh.
The government of India has also introduced the Eco-labeling scheme known as
Eco-Marks. The scheme was initiated to provide an incentive for manufacturers and
importers to reduce the detrimental impact of the products, reward genuine
initiatives by companies to reduce negative environmental impact of their products;
assist consumers to become environment friendly in their daily lives by providing
information that would take account of environmental factors in their purchase
decisions, encourage citizens to purchase products which have less harmful
environmental impacts; encourage the sustainable management of resources and
improve the quality of the environment.
However it is very unfortunate that not a single product in the Indian market holds
an Eco-Mark.
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17. Business Organizations
Green marketing has become much wider based with firms making use of other
forms of green marketing such as marketing and developing eco-friendly products,
using green labels, making green claims in advertisements and employing green
packaging.
Due to pressures from various places, the firms have started incorporating green
activities. Anyhow, these activities are done as a part of either a corporate
sustainability or as a part of industrial social responsibility. There is little evidence
that shows that greening is being used as a ground to distinguish the competitors
from the brand.
Consumers
The business corporations and the government have started playing its function in
the greening process. However, the consumers must also reflect positively to achieve
the green task. Seeing the current situation, the demand and knowledge about green
products and services is very fewer among the Indian consumers. It is also believed
that little demand happens in the market exists out of the reason of the economy that
it provides and not out of the environment friendliness of the consumer.
However, this demand is certain to rise because the consumers become more
knowledgeable about the negative environmental impact on the environment.
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18. THE FOUR PS OF GREEN MARKETING
Like conventional marketers, green marketers must address the ‘four Ps’ in
innovative ways.
1. Product
Entrepreneurs who want to exploit emerging green markets either:
• Identify customers environmental needs and develop products and services to
satisfy the needs of these customers.
• Develop environmentally responsible products and services to have few
impact than their own competitors.
The increasingly wide range of products and services on the market that are good
for the customer and support sustainable development include:
• Products that can be either reused or recycled.
• Efficient products, which save water, gasoline or energy, money and reduce
environmental impact. The waterless printer, Print point, which is the only
water paper in Queensland is able to pass the savings on to customers as it
reduces operating costs by using less water than conventional printers
• Products with environmentally responsible packaging. McDonalds, for
instance, changed their packaging from polystyrene clamshells to paper.
• Products with green labels on them.
• Organic products — many consumers are willing to pay a premium for
organic products, which offer promise of quality. Organic butchers, for
example, promote the added qualities such as tenderness and taste.
• A service that loans or rents products – such as toy libraries.
• Certified products, which exceed or meet environmentally responsible
criteria.
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19. Whatever the product or service, it is important to ensure that products meet or
exceed the quality expectations of customers and are tested.
2. Price
Pricing is an important element of the marketing mix. Most customers are
prepared to pay a premium if there is a perception of a better product value.
This value may be improved performance, design, function, taste or visual appeal.
Environmental benefits are an added bonus but will often be the deciding factor
between products of both equal quality as well as the value of the product.
Environmentally responsible products, are often cheap when product life cycle
and its costs are taken into consideration. For example: water-efficient printing,
fuel-efficient vehicles and non-hazardous products.
3. Place
The choice of where and when to make a product available has a significant
impact on the customers being attracted.
Less customers go out of their way to buy green products only for the sake of it.
Marketers looking to successfully introduce new green products should, position
them broadly in the market place so that they are not just attracting to a small
green niche market.
The location must also be consistent with the image which a firm wants to
project. The location must differentiate a firm from its competitors. This can be
achieved by in-store promotions and visually attracting displays and using
recycled materials to motivate the environmental and other benefits.
4. Promotion
Promoting products and services to target markets includes, public relations, sales
promotions, paid advertising, on-site promotions and direct marketing
Smart and intelligent green marketers will be able to force environmental
credibility by using sustainable marketing and communications tools and
practices. For instance, many companies in the financial industry are providing
electronic statements by email, e-marketing is substituting more traditional
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20. marketing methods, and printed materials can be produced using recycled
materials and effective processes, such as waterless printing.
Retailers, for example, are now identifying the value of relationships with other
firms, environmental groups and research firms when marketing their
environmental duty. To oppose the use of plastic bags and promote their green
duty, many retailers sell shopping bags.
The key to successful green marketing is credibility. Never overstate
environmental claims or build expectations that aren’t realistic, and communicate
simply & through sources that people trust.
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21. POSITIVE ASPECTS OF GREEN MARKETING
1. A decent green marketing plan is one that either: supports renewable projects
that might not otherwise remain to operate or adds renewables that would not
already be added. If the mentioned things are already happening and being
paid for by all, then the program doesn't meet the test: green-marketing
programs should make some difference.
2. A sign of a best green marketing program is one that has strong relationships
with local environmental groups and that achieves broad support among
regional and national groups with an interest in promoting renewable power.
Public Service of Colorado, for instance, has developed a close working
partnership with the Land and Water Fund and other environmental groups in
the state.
3. A green marketer that is seriously interested in greening the electric system
will have a program that is in link with a larger vision and a strategic plan for
making renewables a rising larger part of the generation mix. For instance,
Central and Southwest's recent decision to acquire a significant amount of
renewables capacity, subscribing the rest through a green pricing program
and with the intent of rate basing a good portion of it.
4. For green marketing schemes to be successful in the long run, they should
both improve the environment and be fair to the consumers. Prices should not
be excessively higher than the actual cost of the resources in the profile. This
is particularly true for green pricing programs, which are investigates by
regulators, and in imperfectly competitive markets as in these cases, there is
no real competition in the green market. In markets that are competitive and
in which consumers have good knowledge, this is less of a problem since
lower-cost providers can compete to displace those providers charging
excessive prices.
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23. NEGATIVE ASPECTS OF GREEN MARKETING
1. Selling green products and services at a mark-up that would have been produced
anyway with the cost shared by all. An example of this would be renewable power
that is already exists in a utility's rate base without the green program. These types of
schemes sell nothing as if it is something, which is worse than doing no green
marketing at all, because these schemes are practically unfair and breed doubt in
consumers. If we allow these types of schemes to occur, they will flush the market
for those marketers who are actually making a difference.
2. Schemes that do not in some way directly benefit the renewable generator. An
example of this would be a utility that is already in power purchase contract with a
renewable generator, but does not provide any benefit through to the generator.
3. Schemes that make false claims and do not inform consumers about the nature of
their product efficiently. For example, selling "nuclear and coal free" power when
consumer money is sent to a nuclear- and coal-owning utility. This is a technique for
creating cynicism, once the anti-nuclear consumers find out their money has been
channeled to the owners of plants they dislike. Electrons and money are fungible, so,
in these kinds cases, unless the marketer can prove to the public that the consumer
money they are collecting do not in any way support the nuclear and coal plants, and
support only the resources claimed as "green," such claims are not good to be made
This is not to say that profiles necessarily need to be nuclear- and coal-free for
marketers to make green claims, but marketers should not misrepresent the
information and their profiles.
4. Collecting premiums in exchange for vague promises to build renewables in the
future. Consumers should not be asked to pay for someone else's investment when
they get nothing in return, and when no tangible benefit to society results.
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24. ENVIRONMENTAL SAFETY
Environment is simply our surrounding. The increased awareness on environmental
issues is as a result of increased publicity on the media on issues such as, the warring
off of the ozone layer and increased pollution of the environment by industries.
Customers have become concern about their everyday habit and the impact it has on
their environment.
Managing environmental safety issue is highly challenging, time consuming and
expensive. There are many laws on environmental safety that have made companies
liable to any wrongdoings. These laws cover areas such as, harmful pollution,
managing of hazardous materials and soon. As a result, several hazard control,
pollution control and prevention programs are held in different parts of the world on
emergency procedures, contingency planning and employee training.
Similarly, many regulatory bodies and acts are set to ensure environmental safety
and protection, some of which include:
• OSHA (Occupational Safety and health Act)
• CERCLA ( Comprehensive environmental Respond Compensation liability
Act)
• TSCA (Toxic Substance Control Act)
• HMTA ( the Hazardous Material Transportation Act)
• FIFRA ( Federal Insecticide, Fungicide and Rodenticide Act)
• FFDCA (Federal food, Drug and Cosmetic Act, Clean Air Act, Clean Water
Act
• GHS (Globally Harmonized System of Classification and labeling of
Chemicals)
Environmental Safety is not an easy task to implement. Implementing the GHS
standardization policies of a single frame work of the classification and labeling of
chemicals so hazards are consistently defined across different national jurisdiction is
beneficial but highly challenging, especially in countries like U.S, Japan and Korea
that have multiple regulatory authorities. EH&S (Environmental Health and Safety)
regulatory compliance and CSR (Cooperate Social Responsibility) initiative
throughout the supply chain can help promote and sustain ongoing improvement
within an organization. These improvements will help the company achieve
regulatory compliance and position itself as a socially responsible company.
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25. REASONS WHY FIRMS ARE USING GREEN
MARKETING
When going through the text, there are several suggested reasons for firms increased
use of Green Marketing. Five possible reasons are:
1. Companies perceive environmental marketing as an opportunity that can be used
to achieve its goals.
2. Companies believe they have a moral responsibility to be more socially
responsible.
3. Governmental bodies are making compulsory for the firms to become more
responsible.
4. Competitors' environmental activities force the firms to change their
environmental marketing activities.
5. Cost factors related to waste disposal, or reductions in material usage forces firms
to change their behavior.
A. Opportunities-
It appears that all types of consumers, both individual and corporate are becoming
more concerned about the natural environment. Today, firms marketing goods with
environmental image have realized a competitive advantage over firms marketing
non-environmentally responsible substitutes. There are many examples of firms who
have strived to become more environmentally responsible, in an attempt to better
satisfy their consumer needs.
• McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone depletion
• Tuna manufacturers modified their fishing techniques because of the increased
concern over driftnet fishing, and the resulting death of dolphins
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26. • Xerox introduced a "high quality" recycled photocopier paper in an attempt to
satisfy the demands of firms for less environmentally harmful products.
This does not mean that all firms who have undertaken environmental marketing
activities actually improve their behavior. In some cases, firms have misled
consumers in an attempt to gain market share. In many other cases firms have
jumped on the green bandwagon without considering the accuracy of their behavior,
their claims, or the effectiveness of their products. This lack of consideration of the
true "greenness" of activities may result in firms making false or misleading green
marketing claims.
B. 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. Firms in this situation can take two perspectives:
1) They can use the fact that they are environmentally responsible as a marketing
tool
2) They can become responsible without promoting this fact.
There are examples of firms adopting both strategies. Companies 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. This philosophy directly ties itself to the overall corporate culture, rather
than simply being a competitive tool.
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 environmentally
26
27. 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.
C. Governmental Pressure-
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 good
3) Ensure that all types of consumers have the ability to evaluate the environmental
composition of goods.
These governmental regulations are designed to control the amount of hazardous
wastes produced by firms. Many by-products of production are controlled through
the issuing of various environmental licenses, thus modifying organizational
behavior. In some cases governments try to "induce" final consumers to become
more responsible. For example, some governments have introduced voluntary curb-
side recycling programs, making it easier for consumers to act responsibly. In other
cases governments tax individuals who act in an irresponsible fashion. For example
in Australia there is a higher gas tax associated with leaded petrol.
One of the 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 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.
All these regulations were designed to ensure appropriate information to consumers
so that they could evaluate firm's environmental claims. Thus, governmental
attempts to protect consumers from false or misleading claims theoretically provide
consumers with the ability to make more informed decisions.
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28. D. Competitive Pressure-
Another major force in the environmental marketing area has been a firm’s desire to
maintain its competitive position. In many cases, firms observe competitors
promoting their environmental behaviors and attempt to emulate this behavior. It is
only in some instances that this competitive pressure causes 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
manufacture stopped using driftnets, the others followed suit.
E. Cost / Profit Issues-
Certain firms use green marketing to address cost/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, 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 many other cases, it has been found that firms 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.
28
29. COMPANIES INVOLVED IN GREEN MARKETING
HSBC
HSBC (Hong Kong and Shanghai Bank Corporation) has decided to completely
change itself to carbon neutral.
The company has decided a three fold carbon management plan which includes:
• To manage and reduce direct and indirect emissions.
• Buying green electricity wherever feasible to reduce the carbon intensity of
electricity.
• To offset the remaining emissions to achieve carbon neutrality
In India, the organization is in the process of conducting green audits of its building
starting from the head office in Mumbai and than move to other centers like
Bangalore, Pune, etc
The bank is also planning to make the commercial loans, transactions, etc in an eco-
friendly manner.
ROYAL DUTCH SHELL
Shell which operates its LNG Plant in Hazira, is one of the company’s largest
ventures in India to completely change into a green business.
The LNG plant has incorporated double-vault tanks, flexible pipe points and sensors
in between spaces, so that there is no leakage.
Rainwater harvesting is also put into the plant. The water is captured on a concrete
ground and then drained in a separate system that filters any lubricant. Than the
filtered water is put through a bio-treater.
The company also is setting targets to reduce carbon emissions. The group also gets
its dealers and suppliers sign an environment agreement before entering into any
contract and violation of which may lead to the annulment of the contract.
29
30. HERO HONDA
Hero Honda is one organization which while displaying its concern for the
environment considers it fashionable to do so. It has been consistently been working
towards the elimination of harmful substances such as asbestos and hexavalent
chromium from its products.
Rainwater harvesting is another area in which Hero Honda has invested setting up 16
rainwater harvesting catchments at both its plants in Dharuhera and Gurgaon in
Haryana.
JK TYRES
JK Tyres developed eco-friendly tyres and launched them on the world environment
day on June 5, 2002
The high performance tyres claims to be having low carbon black, reduced rolling
resistance and other green features.
Reva Electric Car Company
RECC is engaged in the manufacturing of innovative zero-pollution and cost-
effective electric cars for city mobility.
Zero emission vehicles are almost noiseless and can be charged at home or work,
saving commuters endless queues at petrol stations. Charging at night when
consumption is low, allows for efficient use of electricity.
COCA-COLA
An example of a firm that does not promote its environmental initiativesis 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
30
31. environmentally committed organization.
State Bank of India
By using eco and power friendly equipment in its 10,000 new ATMs, the banking
giant has not only saved power costs and earned carbon credits, but also set the right
example for others to follow.
SBI is also entered into green service known as “Green Channel Counter”. SBI is
providing many services like; paper less banking, no deposit slip, no withdrawal
form, no checks, no money transactions form all these transaction are done through
SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce
emissions: The State Bank of India became the first Indian bank to harness wind
energy through a 15-megawatt wind farm developed by Suzlon Energy.
The wind project is the first step in the State Bank of India's green banking program
dedicated to the reduction of its carbon footprint and promotion of energy efficient
processes, especially among the bank's clients.
Suzlon Energy
The world’s fourth largest wind-turbine maker is among the greenest and best
Indian companies in India. Tulsi Tanti, the visionary behind Suzlon, convinced the
world that wind is the energy of the future and built his factory in Pondicherry to run
entirely on wind power. Suzlon’s corporate building is the most energy-efficient
building ever built in India.
The company’s global spread extends across Asia, Australia, Europe, Africa and
North and South America has over 21,500 MW of wind energy capacity installed in
30 countries, operations across 33 countries and a workforce of over 13,000.
The Group offers one of the most comprehensive product portfolios – ranging from
sub-megawatt on-shore turbines at 600 Kilowatts (KW), to the world’s largest
commercial 6.15 MW offshore turbine – with a vertically integrated, low-cost,
31
32. manufacturing base. The Group – headquartered at Suzlon One Earth in Pune, India
– comprises Suzlon Energy Limited and its subsidiaries, including REpower
Systems SE.
Kansai Nerolac
Kansai Nerolac Paints Ltd. has always been committed to the welfare of society and
environment and as a responsible corporate has always taken initiatives in the areas
of health, education, community development and environment preservation.
Kansai Nerolac has worked on removing hazardous heavy metals from their paints.
The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony
can have adverse effects on humans. Lead in paints especially poses danger to
human health where it can cause damage to Central Nervous System, kidney and
reproductive system. Children are more prone to lead poisoning leading to lower
intelligence levels and memory loss.
Indian Oil
Following are some initiatives taken up by Indian Oil:
• Indian Oil is fully geared to meet the target of reaching EURO-III compliant fuels
to all parts of the country by the year 2010; major cities will upgrade to Euro-IV
compliant fuels by that time.
• Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects at its
refineries; ongoing projects account for a further Rs. 5,000 crore.
32
33. • Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery;
similar units are coming up at three more refineries.
• Diesel quality improvement facilities in place at all seven Indian Oil refineries,
several more green fuel projects are under implementation or on the anvil.
• The R&D Centre of Indian Oil is engaged in the formulations of eco-friendly
biodegradable lube formulations.
• The Centre has been certified under ISO-14000:1996 for environment management
systems.
In the country's pursuit of alternative sources of energy, Indian Oil is also focusing
on CNG (compressed natural gas), Auto gas (LPG), ethanol blended petrol, bio-
diesel, and Hydrogen energy.
ITC Limited
ITC strengthened their commitment to green technologies by introducing ‘ozone-
treated elemental chlorine free’ bleaching technology for the first time in India. The
result is an entire new range of top green products and solutions: the
environmentally friendly multi-purpose paper that is less polluting than its traditional
counterpart.
Wipro Technologies
The list of top 10 green Indian companies is never complete without Wipro which
climbed to the top five brand league in Greenpeace's 'Guide to Greener Electronics'
ranking. Despite the global financial crisis, Wipro held fast to its commitment
33
34. towards energy efficiency and was lauded for launching energy star compliant
products in the market.
TATA Metalinks Limited (TML)
Every day is Environment Day at TML, one of the top green firms in India. A
practical example that made everyone sit up and take notice is the company’s policy
to discourage working on Saturdays at the corporate office. Lights are also switched
off during the day with the entire office depending on sunlight.
HCL Technologies
This IT major may be considered as the icon of Indian green initiatives, thanks to
the “go green” steps taken in solving the problem of toxics and e-waste in the
electronics industry. HCL is committed to phasing out the hazardous vinyl plastic
and Brominated Flame Retardants from its products and has called for a Restriction
on Hazardous Substances (RoHS) legislation in India.
Panasonic India
The mission of Panasonic is to become the No. 1 Green Innovation Company in the
Electronics Industry by year 2018 making the “environment” central to all its
business activities and bring forth innovation by way of green life innovation and
green business innovation.
Panasonic goes one step ahead of the requirements of E-Waste (Management and
Handling) Rules, 2011, notified by the MoEF. It not only channelizes electronic
waste to authorized recyclers but also ensures its environmentally sound recycling.
Replacing Panasonic India’s currently existing ‘Voluntary End-of-Life Recycling
Program’, the ‘I Recycle’ Program has come into place from May 1, 2012. The
program reinforces Panasonic’s commitment to protect the environment and makes it
very easy for consumers to recycle their electronic waste.
NEED FOR THE STUDY
34
35. The environment friendly status is not yet a marketing strategy in India. Green
products, services, firms are a rarity in almost all categories of products and services
marketed in India.
Eco-tourism, green buildings, environment friendly hotels, organic food, etc account
for a minuscule percentage of our economy whose rapid growth is driven by
consumption expenditure, contributing to about 64% of the GDP. Marketers in fact
should have grabbed this opportunity and developed a strong differentiating ground
for their brands. However, unfortunately marketers are approaching green marketing
only half-heartedly.
While the media is often flooded with the news of the organizations highlighting
their environment friendly initiatives and achievements, these initiatives are hardly
ever leveraged to differentiate the firm and its offerings in the marketplace.
As can be seen from the examples mentioned in the previous section, many such
green initiatives relate to manufacturing plants and back-end operations, e.g. water
and energy conservation, social forestry, solid waste recycling, etc, and have largely
remained a socio-legal obligation.
If we consider the top 500 businesses in India, less than 40% of the websites have a
webpage on environment. Many people also believe that if the information on the
websites is the reflection of the priorities, these organizations are highly unlikely to
use green initiatives as a marketing tool in the near future.
However this is quite surprising, when one considers the universal concerns for
climate change and global warming.
Considering the international markets, especially those in developed countries,
environmentalism is a major concern and the firms are forced to adopt
environmentally friendly market practices such as developing and marketing
products that are recyclable, more fuel efficient, less polluting or making use of
packaging that is bio-degradable, recyclable or reusable.
Consumers in these countries are eco-friendly and do pay attention to the company’s
green credentials, eco-friendly brands and green labels/marks on the products.
Pressures from all these quarters have made firms intensifying their efforts in
35
36. providing products and services that have minimal detrimental impact on the
environment.
The international scenario suggests that in the international markets, there is a pull
for the green products and services rather than a push as existing in the Indian
markets.
However if the consumers in India generate a similar pull effect, the market for
green products and services is bound to evolve.
The Markets for green products will evolve through a favorable convergence of
macro-environment forces comprising of legislations, economic incentives,
consumer support and technological breakthroughs. These include multi-point fuel
injection systems, low emission engines and unleaded fuel for automobiles, pollution
control devices for cement and thermal power plants, alternatives to CFC-based
refrigerants, etc.
Consumer preference will be the most critical factor to determine the growth of
green products in India. Several initiatives will be required to grow these existing
niche markets to attract the mainstream consumers.
Marketers will need to identify the consumers who are already green in their
attitudes and behaviors and can lay a foundation for the further evolution of the
phenomena.
As is believed by most marketers that green consumerism will follow a trickle down
effect.
Marketers will have to make green products affordable. These seemingly
incongruent objectives can be achieved through technological innovations. These
products have been promoted as conspicuous consumption rather than products for
mass consumption.
There is a new breed of green-minded consumers who are opting for these
environment-friendly products. Currently, the number of these green consumers
might be less but the future holds a strong possibility of increase in these Green
consumers.
36
37. Hence this study is an attempt to profile a green consumer based on their
attitudes and behavior towards greening.
37
38. CONSUMER DECISION
In a survey conducted in Delhi by some organization, Primary data was collected
from respondents of the city through a questionnaire designed for a sample of 100
respondents by using the mail survey method due to limitation of time factor.
Random sampling method was adopted by the organization and selected the samples
from Delhi region representing both the genders, different age groups, education
level,
marital status and monthly income.
The following objectives were kept in mind while the study was taking place:
• To understand consumer’s awareness towards green marketing.
• To understand the attitude of consumers towards green branding.
Data Analysis and Interpretation
Table1. Demographic Profile of Respondents with mean Scores (N=100)
Age % Male Female Occupation
20-30 60 78 22 Part Time Employees
30-40 26 Employees
Above 40 14 Sr. Executive
100
Monthly Income %
0-5K 20
6-10K 35
10-20K 30
25-30K 10
>10K 5
The above table shows the demographic information about the respondents which
reveals that 60% of the respondents were under the age group of 20-30, 26% of the
respondents come under 30-40 and 14% of respondents were above 40 years of age.
38
39. Findings
A lot of 19 questions were asked from the respondents and the following table shows
the entire data collected in brief. The table shows the consumer’s awareness about
green marketing, its branding, advantages and disadvantages:
S No Description % of Respondents Mean Score
1 Do you believe in the concept of
green marketing?
4.52(5) considered
the next higher
value)
2 Are you aware of companies
going green?
4.79( 5)
3 Do you know about the
advantages of green products in
an organization
4.09(4)
4 Do you feel that the regular
marketing techniques harm the
environment
4.52(5)
5 Employees in any organization
feel that their work schedule gets
affected by implementing green
concept.
4.19(4)
6 Green marketing concept is
existed for long time back but it is
not implemented by many
companies in India.
67 % said
Yes ,33%
said No
7 Productivity can be improved
drastically by using green
marketing (paper less).
4.57(5)
8 Companies are reluctant in
implementing green marketing
concept
4.09(4)
9 It is difficult for all the companies
to implement green marketing
4.58(5)
10 Huge investment is required to
develop green products
4.07(4)
11 Government should take initiative
in making companies to go green
4.6(5)
12 Everyone is responsible for
successful
green marketing concept
4.67(5)
13 Green marketing is just an old
concept
3.02(3)
14 I am familiar with green brand 4.63(5)
15 Are you interested to know more
about green branding?
4.56(5)
16 Green marketing is more effective
than regular marketing
3.24(3)
17 Do you believe in the concept of 3.68(4)
39
40. complete green marketing
conditions throughout the world
18 Transition from regular marketing
to green branding is quite difficult
in India
3.71(4)
19 Do you realize the importance of
green branding?
69% said Yes 31%
said No
Consumer awareness towards green marketing is high
Consumers have expressed huge concerns regarding the concept of green marketing
and firms going green. Apart from this, consumers are well aware of the fact that the
productivity of firms can be efficiently improved. People are aware of green
environment because of the reason that it is less destructive to the environment and
firms can look into implementation of this concept for betterment of business of the
firms. Some consumers neither agree nor disagree for the fact that green marketing is
just an old concept. As far as initiation of green marketing is concerned everyone are
responsible for green marketing. If we analyze the facts regarding green marketing
the significant results are positive. On other end, consumers say that it is less
possible for all the companies to practice green marketing. Environmental education
refers to organized efforts to teach about how natural environments function and
how human beings can manage their behavior and ecosystems.
Consumers attitude towards green branding is high
As far as green branding is concerned, the consumers are familiar with green brand
and shown interest to know more about green branding. In India, at present situation
is concerned the transition from regular marketing to green brand is difficult. Most
of the consumers know the importance of green branding.
CONSUMER BUYING DECISION OF GREEN
PRODUCTS
40
41. MOTIVATIONS:
The factors below are seen to contribute to consumers’ willingness to buy green.
• Perceived Consumer Effectiveness
An environmental opinion poll and a phone survey of some consumers both resulted
in the same conclusion: the more that people believe that the efforts of an
individual can make a difference in the solution to environmental problems,
the greater their possibility of buying green.
• Perceived Knowledge
Perceived knowledge appears to contribute to perceived consumer effectiveness.
Not surprisingly then, the greater people perceive their knowledge to be about
buying recycled content and source reduced products, the more likely they are to do
so.
• Environmental Concern
Predictably, people’s level of environmental concern is linked to their interest in and
willingness to purchase green products. Furthermore, a survey of 201 households in
western Los Angeles found that respondents’ specific attitudes towards
environmental consumerism predicted their likelihood of (a) buying products
because of their environmental claims, (b) considering safety to the environment
more strongly when making a purchase, and (c) switching products for
environmental reasons or purchasing brands packaged in recyclable or reusable
containers.i
Respondents’ attitudes towards environmental consumerism were
measured by the strength of their agreement with statements such as: “We have a
responsibility to avoid purchasing or using products that are known to be damaging
to the environment” or “I believe that being environmentally conscious when buying
does not directly benefit the environment.”
BARRIERS:
The factors below have been identified as barriers to buying green.
41
42. • Perceptions of Inferior Product Quality
Some consumers believe that because recycled products are manufactured with used
materials, they might be of lower quality. In fact, “…proprietary research conducted
by Rubbermaid, a manufacturer of recycled products, concludes that purchase
behavior is at least partially determined by beliefs about product quality.”
Furthermore, when product performance is an issue, other factors, such as a pro-
environmental label, have a diminished impact on people’s inclination to buy green.
• Skepticism about “Green” Marketing Claims
A variety of polls and surveys indicate that Americans distrust advertising and
labeling clams pertaining to the environment. In an Advertising Age poll, more than
half of the respondents indicated that they paid less attention to environmental
advertising claims because of overkill, and most respondents reported that
environmental claims were not particularly believable.ii
• Difficulty In Identifying Green Products
In Giessen, Germany, a survey of 120 adult shoppers led to the conclusion that
people were more likely to follow through on their intention to purchase an
environmentally preferable product when the environmentally relevant aspect of the
product was more visible. Residents of King County, Washington indicated that the
inherent difficulty of locating products with recycled content was a barrier to
purchasing them.iii
Furthermore, a study conducted in Atlanta, GA assessed people’s
knowledge of phrases, logos and symbols used on packaging and in advertisements
to convey information about the environmental impact of the products or packaging.
Accurate knowledge was relatively low among a group of environmentally
concerned individuals.
• Price Sensitivity
Marketers have found that even when consumers profess strong support for
environmental protection, they are still extremely price sensitive when it comes to
42
43. buying green. Indeed, a perception among King County, Washington residents that
recycled-content products are more expensive was a barrier for them in purchasing
these products.
43
44. GREEN MARKETING STRATEGIES
Green Marketing Mix Strategies
Green marketing mix strategies include developing green-based products, green
logistics, green promotion, green pricing and green consumption. The general
strategies are not limited to marketing discipline but may be used by marketing as
well as other functional areas of organization in dealing with problem of
sustainability. They include; adoption of eco-marketing orientation as a business
philosophy, government intervention, undertaking life-cycle analysis and teaming up
for success.
• Green based product strategies
The activities associated with sustainable development may be construed by
business either as a potential threat or as an opportunity. Green products
represent a substantial product opportunity, the opening of a provocative
strategic window. Green products are typically durable, non-toxic, made from
recycled materials, or minimally packaged. Green based product strategies
comprise any or a combination of recycling, reduction of packaging materials,
re consumption, dematerializing the products; using sustainable source of raw
materials, making more durable products; designing products that are repairable,
making products that are safe for disposal, making products and packaging that
are compostable, and making products that are safer or more pleasant to use.
• Green Logistics strategies
The most common form of greening logistics is reverse channel system. Reverse
channel systems deal with the issue of post-consumer recycling. The term
recycle means to extract and reuse useful substances found in waste while the
traditional approach to product disposal can be described as linear in which
waste materials are indiscriminately dumped. The definition of recycle clearly
demonstrates that the goal is to reverse this result by achieving a circular flow
that effects a reintegration of materials with markets.
The reverse channel systems possess the following characteristics. Firstly, the
consumer becomes the seller and manufacturer the buyer. Secondly, they
emphasize on the function of sorting and accumulation. Thirdly, the recyclable
materials can flow backwards through reverse channels to any of three
generalized industrial markets:
1. Original manufacturer,
44
45. 2. Firms in the raw materials producing industry
3. Other industries that can use recyclables as virgin material substitutes, and
finally the consumers (sellers) tend to play a more passive role rather than
proactive role of the typical seller in conventional channel. The modified reverse
channel system proposes that consumer waste sources are individual consumers
and households. The remaining recyclable materials after individual
consumers/household own consumption moves through Jua kali* artisans or
micro enterprises, manufacturer own system, local authorities,
agents/wholesalers and street “children” to industrial user markets: original
manufacturers, firm in raw materials industries and micro enterprises.
Other components of green logistics strategies include reduction of packaging
material to directly or indirectly lower distribution costs, use of integrated
transportation systems and the Internet. However, more emphasis has been
given to reverse channel systems.
*Jua kali literally means “harsh sun " and is a Kiswahili word for micro
enterprises it is a common terminology for Kenya informal sector.
Functions of channel members of reverse channel systems
Channel Members Functions
Consumer waste sources- Individual
Households
Collection & Sorting
Reverse Channel Types Collection, process, accumulate,
transportation
Industrial user market Reintegration into production
consumption cycle.
• Green pricing strategies
Many consumers assume that green products are often priced higher than
conventional products. While their assumption may be true, some products are
not unusually expensive, but the conventional products are unrealistically cheap
because they exclude socio-environmental costs of production, product use and
disposal.
The one way to deal with the high price controversy is to ask the consumer
“whether they want to continue buying inexpensive products that damage the
environment?” The implication of the above is that consumers need more
information on benefits of green products in order to judge their value more
objectively.
45
46. • Green promotion strategies
Green promotion is an activity of promoting products as having characteristics
that do not harm the natural environment. It should meet one or more of the
following criteria: -
1. Explicitly or implicitly addresses the relation between a product/service and
the biophysical environment.
2. Promotes a green lifestyle with or without highlighting a product/service.
3. Presents a corporate image of environmental responsibility.
Green promotion helps consumers to overcome the “greatest environmental
hazard”, that is, the lack of environmental information. To lessen the gap on
environmental information through promotion, the green companies should:
1. Educate consumers on the environmental problems that a green product
solves.
2. Empower consumers with solutions by demonstrating to consumers how
environmentally sound products and services can help consumers protect
health, preserve the environment for future generations.
3. Provide performance reassurance of green-based products, as many
consumers perceive them to be inferior to conventional products.
4. Consider a suitable mix of media. For instance environmental consumers are
more receptive to messages conveyed through direct marketing, community
programs, public relations, and packaging and
5. Appeal to consumer self-interest by bringing out the benefits of green
products to both actual consumers and potential consumers.
• Change of consumer behavior from consumption culture to ecologically
concerned consumers or encourage green consumption.
It is the task of the marketer to redirect the needs of the consumer towards
consumption that is ecologically least harmful. This redirection can be achieved
through market research, and promotion. According to a publication of World
Commission for Environment and Development (WCED) (1987), sustainable
development requires the promotion of values that encourage consumption
standards that are within the bounds of the ecological environment. The fact that
marketing during the past few decades has been so successful in increasing
societal consumption and in meeting human needs, makes the companies
confident that it will also be successful in redirecting consumption.
46
47. General Strategies
As mentioned earlier the general strategies are not limited to marketing discipline
but they cut across the entire organization. However, they are very necessary in
facilitating adoption or success of green marketing mix strategies.
• Adoption of eco-marketing orientation as a business philosophy
The success of organizations in green marketing or sustainable marketing lies on
reorganization, restructuring and redesigning of many processes and systems
within the organization. In fact those who think that marketing people alone will
be able to develop green marketing orientation for the firm are mistaken. Like
total quality management, sustainable marketing requires the involvement of
employees from all functional areas, including marketing, production,
procurement, accounting and information systems.
Various strategies that may help the companies to make reasonable progress
toward environmental oriented business philosophy may include:-
1. Undertaking environmental audit to assess current performance and
establishing a benchmark upon which to measure progress.
2. Government and other stakeholders expect being proactive by going.
3. Being a visible CEO who demonstrates commitment to environmental issues.
4. Empowering employees through thought – provoking educational programs
on ecological issues.
5. Constantly integrating, learning and refining products and processes.
6. Regularly reporting on environmental performance through annual reports
and special advertising and public relation efforts.
• Government Intervention Strategies
The support for government intervention in dealing with environmental
degradation is widespread. The visible hand of government must guide the
market toward environmentally sound production and consumption practices.
There are four government intervention strategies: -
47
48. 1. Formulation and adoption of regulation policies that promote the balancing
of ecological and economic activities.
2. Reforming the production and consumption practices through mandate and
incentives.
3. Government participation in procurement, R&D and international
cooperation; and
4. Actively promoting environmental issues by partnering with the industry.
These government related strategies are recommended when free markets
process does not sufficiently promote sustainable development.
• Undertake lifecycle inventory analysis/Assessment (LCA)
Lifecycle analysis, which was initially developed in 1970, is an approach, which
involves listing the various positive and negative environmental aspects of a
specific product throughout its life cycle. This analysis accounts for the
environmental impact of raw materials procurement, packaging, distribution,
use and disposal. The information gathered from the analysis can help marketers
change the way the products are made, packaged, transported, sold, used, re-
used, recycled and disposed of or develop entirely new products. Despite the
above benefits of life cycle analysis it can be both expensive and difficult.
• Teaming up with all stakeholders for success
Complex environmental problems cannot be solved by organizations alone;
instead there is a need of various societal stakeholders to pool together their
collective skills, capabilities and resources. The stakeholders/marketers should
form strategic partnerships or coalitions with general public, employees,
retailers, suppliers, environmental groups, educators and government.
48
49. MCKINSEY’S FIVE STEPS TO GREEN MARKETING
McKinsey released a must read for green marketers. ‘Helping Green Products Grow’
outlines five steps businesses need to take to sell green products successfully. Most
of it is common sense. Still there were a few surprises, most notably in the area of
consumers’ awareness of most concrete actions to reduce global warming:
These findings present enormous educational opportunities, not just for green
marketers, but also for environmental educators, hoping to make a difference in
greenhouse gas emissions. Bloggers, journalists, teachers, environmentalists need to
turn up the volume on eating less beef, improving home insulation, and driving more
fuel-efficient car, less often. These are all concrete actions that citizens can
understand, and that also can help them save money, particularly during these hard
economic times.
Here are the five steps, with selected some highlights:
1. Educate consumers:
Because consumers are largely unaware of green products, a business that sells them
must see itself first as an educator, not a sales machine. Our study shows that more
than one-third of the consumers who want to help mitigate climate change don’t
really know how .
2. Build better products:
Consumers will not think better of green products until companies make them equal
to, or better than, their conventional alternatives. It’s no surprise: most people value
performance, reliability, and durability much more than ecological soundness.
3. Be honest:
To rebuild public trust, companies must come clean about the true environmental
impact of their products and their attempts to reduce it, and many will need to
address historical concerns about specific products or operations.
4. Offer more:
49
50. Companies must ensure that consumers understand the financial and environmental
returns on their investment in green products, for they are more willing to try new
ones-especially those that cost more-when they find it easy to track the savings.
5. Bring products to the people:
Having decided to buy green products, many consumers encounter a last hurdle
finding them either because manufacturers don’t keep up with demand or advertise
where they can be bought, or because wholesalers and retailers don’t stock them or
display them prominently. Bio-fuel enthusiasts, for example, must often drive out of
their way to fill up.
50
51. FIVE SIGNS OF TRULY GREEN PRODUCT
The growing market for earth-friendly products and solutions has given homeowners
a lot of choices, but how do you know what's truly green versus "green washed"?
Here are five signs to help measure greenness.
• Start with the manufacturer:
Green begins at the industrial birthplace of a product, so check out the
manufacturer's website or product literature for a written, working
environmental policy. It should emphasize reduction, reuse and recycling,
and confirm compliance with an industry's voluntary testing programs.
• Check the contents
Find out what raw materials go into a product and where they come from,
remembering that long-distance transport involves other precious resources.
Green manufacturing makes use of renewable resources and energy-efficient
processes, while steering clear of harmful synthetic ingredients and the
release of harmful substances during the process itself.
• The product's journey to and place in your home
Assess what the product is packaged with, and how it's transported to the
point of purchase. Also confirm whether or not it'll release VOCs (volatile
organic compounds) during and after installation, how much energy it uses,
and maintenance requirements.
• Disposal strategy
All good things come to an end, and a green one is preferred. This can take
the form of content that's separated for recycling, biodegradable elements or
the opportunity to make one product into another that's new and useful. Some
items may also be returned to the manufacturer at the end of their lifecycle.
• Consider the cost:
Spending more for something that has less impact on your health and the
environment is a good investment, and the greener it is, the better the use of
your monetary resources. Also refer to the manufacturer's lifecycle cost
51
52. analysis for a product, which can help you see beyond immediate comforts
and conveniences into the sustainable future of your home improvement
plans.
52
53. IDEAS FOR SUCCESSFUL GREEN MARKETING
There’s plenty of skepticism, but there’s also proof that ‘Thinking Green’ in
business is not only good for the environment, but for business as well. Here are
some easy ways to implement green marketing ideas your business can embrace:
1. Work from home
Allow staff to work from home more often. This will help provide added
perks and could improve productivity.
2. Teamwork
Boost Company moral by setting a company wide goal of everyone working
together to lower the businesses carbon footprint.
3. CO2 friendly servers
Yes, today, you can reverse the impact of your websites by switching to C02
friendly servers. There are two providers that we know of in this field: one
can be found here, another here.
4. Sustainable Packaging
Replacing your existing packaging with “green” packaging materials such
as bio-degradable. Or simply get creative by re-using old magazine pages.
Yes it’s possible.
If your business relies on transportation, look at transitioning to
environmental friendly vehicles. This bold move will most likely get the
attention of your local or national newspapers.
5. Green Seal
Assess the ‘Greenness’ of your products and apply for a green seal on your
product. In the US and Canada there are several NGO’s supporting green seal
projects.
6. Get Your Brand out there
53
54. Go and help your local community and customers reduce dependency on
grocery store polythene. Invest in environmental friendly grocery bags with
your brand name on it, and give them away to as many customers as possible
for free…it’s free advertising!
7. Give Local Love. Receive Local Love
If you’re in the food business, look at ways to source local products even if
they’re at slightly higher cost. In return, promote your objective of
supporting local farmers and reducing your carbon footprint. You can start
the transition slowly by having select products that feature seasonal and
locally sourced produced.
54
55. CONCLUSION
As the demand for green products reasonably exist, Green Marketing provides an
opportunity to the firms to increase their market-share by introducing eco friendly
products and services. Stricter environmental regulations across the globe,
growing consumer preference for eco-friendly companies, and the inherent cost
advantages in lowering toxic waste, are encouraging both big as well as small to
clean up.
Result of a survey conducted showed that, consumers are not overly committed to
improving their environment and may be looking to lay too much responsibility on
industry and government. Though it’s the responsibility of the firm to produce
products, which are having less impact on the environment, but it’s the consumer
who is ultimately having responsibility to use eco friendly products. Consumers are
not too much concerned about the environment but as they have become more
sophisticated, they require clear information about how choosing one product over
some other product will benefit the environment. Consumer education results in
their empowerment. Empowered consumers choose environmentally preferable
products when all else is equal.
Ultimately green marketing requires that consumers ‘Think Green, Think clean,
Think Eco-friendly’ i.e. they 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
55
