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GREEN MARKETING
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.
Thus "Green Marketing" refers to holistic marketing concept wherein the production,
marketing consumption an disposal of products and services happen in a manner that is less
detrimental to the environment with growing awareness about the implications of global
warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers
and consumers are becoming increasingly sensitive to the need for switch in to green
products and services. While the shift to "green" may appear to be expensive in the short
term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long
run.
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What is Green Marketing?
Would it be fair to say that most people buy with some degree of morality in mind, taking
social or environmental issues into consideration as they select from a variety of options on
offer? Whether driven by a desire to save energy with more efficient products or looking for
coffee that’s grown more sustainably, consumers can be swayed by green marketing schemes
that set one product apart from the other based on environmental benefits.
Consider this: in a study by Accenture that polled people from Europe, Asia, and North
America, nearly nine out of 10 consumers were willing to pay more for green products (those
that reduced greenhouse gas emissions in particular). While the percentage of people willing
to pay a premium for eco-friendly products will go up and down as times change (see the
Green Gauge Report put out annually by GfK Custom Research for yearly green buying stats)
– environmental disasters increase awareness and interest in green products, for instance,
while prosperous economic times often dull interest – in general, the market for green
products and services is growing every year as people become more aware of the impact of
their consumer choices.
That said, environmental marketing is a tricky business, especially given the relative
skepticism most people have toward green branding claims. Greenwashing abounds in the
world of eco-friendly products and services, and with so many companies failing to live up to
their green business promises, consumers are understandably wary of dubious branding.
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Definition of Green Marketing
Green marketing definitions can be a little confusing, since green marketing can refer to
anything from greening product development to the actual advertising campaign itself. Going
by alternative names such as sustainable marketing, environmental marketing, green
advertising, eco marketing, organic marketing, all of which point to similar concepts though
perhaps in a more specific fashion, green marketing is essentially a way to brand your
marketing message in order to capture more of the market by appealing to people’s desire to
choose products and services that are better for the environment.
There are many environmental issues impacted by the production of goods and rendering of
services, and therefore there are also many ways a company can market their eco-friendly
offerings. Green marketing can appeal to a wide variety of these issues: an item can save
water, reduce greenhouse gas emissions, cut toxic pollution, clean indoor air, and/or be easily
recyclable. When put side by side with the competition, the more environmental marketing
claims your product or service can make, the more likely it is the consumer will select it,
provided the price point isn’t too much higher than the alternative.
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What Makes Marketing Green?
But you can’t really market your business or your product as green without managing how
your company functions with respect to the environment. Green marketing can take many
forms. For instance, you may market eco-friendly aspects such as:
Operational sustainability: Service companies and manufacturers can improve operational
sustainability by reducing everyday energy and water consumption, minimizing pollution,
using greener materials and processes, and properly managing waste.
Green products: Companies producing products can do many things to improve the green
factor of their offerings, including choosing sustainable materials, designing products to save
energy and water, and making products that are less toxic and more natural than competitors’
goods. Greener products will also be packaged in an eco-friendly manner and will be made to
be easily recycled or composted.
Sustainable marketing: You’ll also want to ensure that the actual marketing systems you use
are green, which is really distinct from your operational sustainability which focuses on
manufacturing and production. For instance, when printing marketing materials, use 100%
post-consumer recycled paper made without chlorine (called “processed chlorine free”) and
printed using plant-based dyes (like soy inks). You could also investigate tools like green
web hosting, carbon offsets for any marketing emissions you may cause, recycling any
unused materials from billboards and signage, ecological packaging, and so on.
Environmental causes: Any organization can choose to promote environmental causes.
Nonprofits and NGOs will engage in green marketing to get the word out about their
activities, but for-profits can also suppose environmental causes by making donations and
advertising for these environmental do-gooders as part of a green marketing campaign.
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WHY 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
are
as
follows:
1.Organizations perceives environmental marketing to be an opportunity that can be used to
achieve
its
objectives.
2. Organizations believe they have a moral obligation to be more socially responsible.
Governmental
bodies
are
forcing
firms
to
become
more
responsible.
3. Competitors' environmental activities pressure firms to change their environmental
marketing
activities.
4. Cost factors associated with waste disposal, or reductions in material usage forces firms to
modify their behavior.
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MARKETING MIX OF GREEN MARKETING
When companies come up with new innovations like eco friendly products, they can access
new markets, enhance their market shares, and increase profits. Just as we have 4Ps product
prices, place and promotion in marketing, we have 4ps in green marketing too, but they are a
bit different. They are buttressed by three additional Ps, namely people, planet and profits.
A. PRODUCT:
The products have to be developed depending on the needs of the customers who prefer
environment friendly products. Products can be made from recycled materials or from used
goods. Efficient products not only save water, energy and money, but also reduce harmful
effects on the environment. Green chemistry forms the growing focus of product
development. The marketer's role in product management includes providing product
designers with market-driven trends and customer requests for green product attributes such
as energy saving, organic, green chemicals, local sourcing, etc. For example, Nike is the first
among the shoe companies to market itself as green. It is marketing its Air Jordan shoes as
environment-friendly, as it has significantly reduced the usage of harmful glue adhesives. It
has designed this variety of shoes to emphasize that it has reduced wastage and used
environment-friendly materials.
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B. PRICE
Green pricing takes into consideration the people, planet and profit in a way that takes care of
the health of employees and communities and ensures efficient productivity. Value can be
added to it by changing its appearance, functionality and through customization, etc. Wal
Mart unveiled its first recyclable cloth shopping bag. IKEA started charging consumers when
they opted for plastic bags and encouraged people to shop using its "Big Blue
Bag".
C. PLACE
Green place is about managing logistics to cut down on transportation emissions, thereby in
effect aiming at reducing the carbon footprint. For example, instead of marketing an imported
mango juice in India it can be licensed for local production. This avoids shipping of the
product from far away, thus reducing shipping cost and more importantly, the consequent
carbon emission by the ships and other modes of transport.
D. PROMOTION
Green promotion involves configuring the tools of promotion, such as advertising, marketing
materials, signage, white papers, web sites, videos and presentations by keeping people,
planet and profits in mind. British petroleum (BP) displays gas station which its sunflower
motif and boasts of putting money into solar power. Indian Tobacco Company has introduced
environmental-friendly papers and boards, which are free of elemental chlorine. Toyota is
trying to push gas/electric hybrid technology into much of its product line. It is also making
the single largest R&D investment in the every-elusive hydrogen car and promoting itself as
the first eco-friendly car company. International business machines Corporation (IBM) has
revealed a portfolio of green retail store technologies and services to help retailers improve
energy efficiency in their IT operations. The center piece of this portfolio is the IBM
SurePOS 700, a point-of-sale system that, according to IBM, reduces power consumption by
36% or more. We even see the names of retail outlets like "Reliance Fresh",
Fresh@Namdhari Fresh and Desi, which while selling fresh vegetables and fruits, transmit an
innate communication of green marketing.
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Green marketer can attract customers on the basis of performance, money savings, health and
convenience, or just plain environmental friendliness, so as to target a wide range of green
consumers.
Consumer awareness can be created by spreading the message among consumers about the
benefits of environmental-friendly products. Positing of profiles related to green marketing
on social networks creates awareness within and across online peer groups. Marketing can
also directly target the consumers through advertisements for product such as energy saving
compact fluorescent lamps, the battery –powered Reva car, etc.
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The 5 Simple Rules of Green Marketing
When it comes to shining a spotlight on specific sustainability issues, NGOsand consumer
groups will target the most respected and trusted brands inthe world. It’s the reason
whyHome Depot was targeted for sustainableharvested wood, Nike for child labor
practices,McDonalds for Styrofoamclamshells and now obesity, and why Coke is similarly a
target for sugarand packaging. What does this all mean for your business? Simply stated,if
you don’t manage your business with respect to environmental andsocial sustainability, your
business will not be sustained!But the converse is true, too: A strong commitment to
environmentalsustainability
in
product
design
and
manufacture
canyieldsignificantopportunities to grow your business, to innovate, and to build brand
equity. All youhave to do is getthe word out...right?
As with any other major business endeavor, easier said than done.
Manyaresponsiblecompany has runinto trouble with these very same sustainability-minded
NGOs and consumer groups thanks to a poorlyplanned and crafted marketing message.
Protect your company from these common pitfalls and start taking advantage of news
opportunities by heeding my Rules of Green Marketing:
1. Know your customer. If you want to sell a greener product to consumers, you first
need to 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
wouldn’t pay a premium for a CFC-free refrigerator because consumers didn’t know
what CFCs were!).
2. Empower consumers. Make sure that consumers 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 it’s the main reason why consumers buy greener products.
3. Be transparent. Consumers must believe in the legitimacy of your product and the
specific claims you are making. Caution: There’s a lot of skepticism out there that is
fueled by the raft of spurious claims made in the “go-go” era of green marketing that
occurred during the late 80s–early90s — one brand of household cleaner claimed to
have been “environmentally friendly since 1884”!
4. Reassure the buyer. Consumers need to believe that your product performs the job
it’s supposed to do — they won't forego product quality in the name of the
environment. (Besides, products that don’t work will likely wind up in the trash bin,
and that’s not very kind to the environment.)
5. Consider your pricing. If you're 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 that consumers can afford the premium and
feel it’s worth it. Many consumers, of course, cannot afford premiums for any type of
product these days, much less greener ones, so keep this in mind as you develop your
target audience and product specifications.
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The "Rules" in Action
Tom’s of Maine
The husband and wife team of Tom and Kate Chappell created this full line of personal care
products about 25 years ago. Ten or so years later, the brandbroke out of the “deep green”
niche to achieve distribution in CVS, DuaneReade and other mainstream drug outlets. The
company is now owned by Colgate-Palmolive, (representing just one of many “deep green”
brands that are increasingly being purchased by mainstream marketers. Others include:Estee
Lauder’s purchase of Aveda, Danone’s partial purchase of StonyfieldFarm, and Unilever’s
acquisition of Ben and Jerry’s ice cream are just a fewother examples.)I know you’ve been
hearing a lot these days about Toyota’s Prius. For lotsof good reasons, it’s likely the most
successful “green” product in the U.S.First, it provides consumers with all they seek in a
sedan and more —attractive styling, fuel efficiency, the ability to drive for an unlimited
amount of miles only stopping for fill-ups (versus, for instance, having to stop for a12-hour
recharge if the engine were only electric), and because of the hybridengine, a quiet ride
considering that the car doesn’t idle at stoplights. Thecar’s dashboard comes with an
unusualfeature: a screen that lets the driver know which of the twoengines is in use and how
much fuel efficiency is being had at any given moment; anecdotes report that Prius owners
try to beat their previous record each time they drive!Tide Coldwater is a line extension of
Tide that is helping it build brand equity and staying fresh in the marketplace. A “Life Cycle
Assessment”commissioned by Procter and Gamble found that 80%-85% of the energy used
to wash clothes comes from heating the water. P&G calculated that U.S. consumers could
therefore save $63 per year by washing in cold water rather than warm. So, with the proviso
that they could persuade consumers that cold water washing was efficacious, they positioned
the product as a way to save on energy bills.
Let’s take a look at some eco-designs (improvements over existing products), and ecoinnovations (new types of products) that do a great job of winning over green consumers
while grabbing market share. The messages on the sides of the Tom’s of Maine toothpaste
carton may be one reason why. Check out the letter from Tom and Kate stating their
company’s mission. Signing the letter lets customers know there really is a Tom, there really
is a Kate —just like there really is a Ben and there really is a Jerry ,i.e., two real live people
“minding the store” and staking their personal reputations on the quality of their products.
(Refer to their website to see a similar letter from Tom and Kate.)
On another panel is a list of all the ingredients in the toothpaste — all natural spearmint oil
for instance ,and next to each ingredient is the role each of the ingredients plays in the
toothpaste. There’s even at hird column that lists from where each ingredient is sourced.
(Refer to their website for an in-depthlook at the ingredients in all Tom’s of Maineproducts.)
This is unprecedented in the history of consumer goods! Can you do this with your product’s
ingredients? How many of them may contain warning labels? (Crest and Colgate each do.)
For Tom’s ,listing the ingredients, e.g., natural spearmint oil, helps get consumers over any
price barriers at the point of sale. They are choosing a brand with natural ingredients and
recognize that it must come with a price.
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Toyota Prius
When the car was introduced, ads focused on superior performance evidenced in a quiet ride,
and supplemental ads touted its environmental bonafides. With energy prices on the rise, the
Prius is now being marketed for its superior fuel efficiency, and a PR machine fuels efforts to
link the car to environmentally conscious celebrities and causes. Some owners, it is reported
even buy the car for what is being called “Conspicuous Conservation” — letting all know
that they are environmentally astute.
Tide Coldwater
First, marketing efforts reassured consumers of the product’s efficacy. On a special website
,consumers could calculate the amount of energy they could save yearly personally and in
conjunction with all the others who took the “Tide Coldwater Challenge”. Advertising
showed how long major U.S. landmarks such as the Empire State Building could be lit with
the energy that could be saved if all of the .The environmental movement is about doing
things differently. Method is a brand that is trying to express this “differentness” in nearly
every way
possible, starting with how the product looks and smells. The bottle for the dish soap looks
like an upside down teardrop. It was specifically designed by a well known fashion designer
Karim Rashid so consumers would feel comfortable leaving it right at kitchen sink, helping
the user project a sort of status to visitors. The product label sports a very understated lower
case “m ”in a circle, with “method” also in lowercase just beneath. No splashy lettering.
No flashy starbursts like those that were designed to capture consumers attention at
mainstream store shelves. What attracts consumers to this product is the distinctiveness of the
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package shape and the unique coloring of the product inside. This product may look
expensive, but it actually sells at competitive prices at Target, Office Depot and
Safe way! such as the Empire State Building could be lit with the energy that could be saved
if all of the consumers in those cities switched to cold-water washing.Finally, the website
provided various energy saving tips and resources, starting with information about
switching to Energy Star certified energy-saving compact fluorescent lighting, tips from the
Alliance to Save Energy, a respected environmental group, and encouragements to “Consider
buying a Different Kind of Car” namely, the Prius.
This type of marketing no doubt reassured consumers of the product’s performance. They
were empowered by the ability to calculate their own savings and to aggregate that savings
with those of others. By using the internet versus traditional advertising-led messages, they
were engaged in them essage. By leveraging word of mouth via the Tide Coldwater
Challenge and associating with notable third parties, any barriers of skepticism were
overcome. And Tide Brand found a fresh new message istep with consumers needs to control
rising energy prices.
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Method Line of Household Cleaning, Laundry and Personal Care
Products:Method doesn’t advertise. They attract consumers via strong price value and word of mouth
that is generated in a number of highly effective ways, starting with the uniqueness of the
product itself. Visit their website and read how they tell visitors what they stand for: A page
each is devoted to the elements of the Method “mantra”: Efficacy, Safety, Environment,
Design (do your brands consider design?), and Fragrance. (In-home interviews I conducted
for a client recently attested to the importance of light scent to this brand’s purchasing
decision.) Do your brands have mantras — or simply a list of benefits or possibly just a
marketing and creative strategy? Another thing you’ll find at their website is a campaign
called “I Fight Dirty.” (Note the “anti” tone.) This campaign empowers users to not only fight
against dirt itself, but also dirty practices by industry. Thus, its captures the essence of what
the brand is about from both the functional as well as emotional standpoints. (Another
breakthrough.)Refer to their website to see a sample of a newsletter that is sent to consumers
who sign up. Recent issues have proffered tips on how to compost Christmas trees, locate
brands of reusable diapers, save pristine beaches by fighting dumping in oceans of plastic
laundry bottles. The website talks about the places where Method has been spotted — like the
“Green Festival” hosted by Coop America each year. And it even gives visitors the
opportunity to buy merchandise like tee shirt semblazoned with the method name! How many
of your users would wear clothing with your brand’s name on it? How many of you would
even think to offer it?
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Putting the "Rules" to Work for Your Business
To start capitalizing on the many market opportunities represented by sustainability, consider
the following:
1. Think and act holistically. It is no longer enough to focus on functional benefits alone.
ASK: What are we making (product or service? Green or not?) How are we making it?
Who are we working with?
2. Take advantage of the opportunities that green marketing represents to engage
consumers on an emotional level and thus, build brand equity. ASK: how can we
make…our passion and vision relevant and engaging?…our consumers into advocates?
make…our passion and vision relevant and engaging?…our consumers into advocates?
How can we empower consumers to make a difference by providing them with
education, infrastructure, events and experiences?
3. The way you communicate will be critical to success (and will help you avoid
“green washing”). ASK: How to ensure that our approach is viewed as authentic?
Transparent? Are all stakeholders aware of our intentions and progress? Is our vision
embedded into the fabric of our company?
4. Eco-innovation represents new ways to grow top line sales. ASK: How can we inspire
Consumers? What technology and partners do we need to gain access to?
5. Strive for an ideal goal of “Zero” environmental impact. Strive to eco-innovate rather
than simply eco-design. ASK: What would it take to achieve zero environmental
impact and still meet our consumers’ needs? Can we make consumers more?
“responsible”? It’s one thing to design better products and technologies. But at some
point, industry’s efforts will only go so far. Achieving “zero” environmental impact will
only come about if changes in consumer behaviour can be made; thus the genius of
Toyota’s dashboard, and engaging websites that engage consumers in more
responsible forms of behaviour.
_____
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WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS?
Most of the companies are venturing into green marketing because of the following reasons:
a.Opportunity
In India, around 25% of the consumers prefer environmental-friendly products, and around
28% may be considered healthy conscious. There fore, green marketers have diverse and
fairly sizeable segments to cater to. The Surf Excel detergent which saves water (advertised
with the message—"do bucket paani roz bachana") and the energy-saving LG consumers
durables are examples of green marketing. We also have green buildings which are efficient
in their use of energy, water and construction materials, and which reduce the impact on
human health and the environment through better design, construction, operation,
maintenance and waste disposal. In India, the green building movement, spearheaded by the
Confederation of Indian industry (CII) - Godrej Green business Center, has gained
tremendous impetus over the last few years. From 20,000 sq ft in 2003, India's green building
footprint is now over 25 million sq ft.
b.SocialResponsibility
Many companies have started realizing that they must behave in an environment-friendly
fashion. They believe both in achieving environmental objectives as well as profit related
objectives. The HSBC became the world's first bank to go carbon-neutral last year. Other
examples include Coca-Cola, which has invested in various recycling activities. Walt Disney
World in Florida, US, has an extensive waste management program and infrastructure in
place.
c.GovernmentalPressure
Various regulations rare framed by the government to protect consumers and the society at
large. The Indian government too has developed a framework of legislations to reduce the
production of harmful goods and by products. These reduce the industry's production and
consumers' consumption of harmful goods, including those detrimental to the environment;
for example, the ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc.
d.CompetitivePressure
Many companies take up green marketing to maintain their competitive edge. The green
marketing initiatives by niche companies such as Body Shop and Green & Black have
prompted many mainline competitors to follow suit.
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e.CostReduction
Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms
develop symbiotic relationship whereby the waste generated by one company is used by
another as a cost-effective raw material. For example, the fly ash generated by thermal power
plants, which would otherwise contributed to a gigantic quantum of solid waste, is used to
manufacture fly ash bricks for construction purposes.
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SOCIAL RESPONSIBILITY & GREEN MARKETING
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; or (2) they can become responsible without
promoting this fact. 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. This philosophy is directly tied 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 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.
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DIFFERENCES BETWEEN TRADITIONAL MARKETING AND
GREEN MARKETING:
Traditional Marketing



Green Marketing
Starts with the identification of needs of their
 Starts with the identification of the needs of
target customers.
their target customers.
Customers need is at center point for decision
 Environment needs is at the center point for
making.
decision making.
Self centered approach with short term
 Social cost benefit approach with long term
orientation and without giving the attention to orientation and giving importance to
environment.
environment.

Development of product as per their needs,
delivering and providing the after sales
services.


With a aim of achieving satisfied customers.
 Customer satisfaction in an environment
Practicing is good for company as well as
friendly way.
customers.
 Remedy for mitigating climate change and
global warming.
 Practicing is good for mankind as well as
environment.

Remain with satisfied customers.

Development of product by analyzing
ecological compatibility of the product, its
raw material. packaging and reuses etc.
Remain with satisfied eco-friendly customers.
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BENEFITS OF GREEN MARKETING
Today's 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.
Some of the advantages of green marketing are,
* It ensures sustained long-term growth along with profitability.
* It saves money in the long run, thought initially the cost is more.
* It helps companies market their products and services keeping the environment aspects in
mind. It helps in accessing the new markets and enjoying competitive advantage.
* Most of the employees also feel proud and responsible to be working for an
environmentally responsible company.
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OPPORTUNITIES
All types of consumers, both individual and industrial are becoming more concerned and
aware about the natural environment. In a 1992 study of 16 countries, more than 50% of
consumers in each country, other than Singapore, indicated they were concerned about the
environment. A 1994 study in Australia found that 84.6% of the sample believed all
individuals had a responsibility to care for the environment. A further 80% of this sample
indicated that they had modified their behavior, including their purchasing behavior, due to
environmental reasons. As demands change, many firms see these changes as an opportunity
to be exploited.
It can be assumed that firms marketing goods with environmental characteristics will have a
competitive advantage over firms marketing non-environmentally responsible alternatives.
There are numerous examples of firms who have strived to become more environmentally
responsible, in an attempt to better satisfy their consumer need. McDonald's replaced its clam
shell packaging with waxed paper because of increased consumer concern relating to
polystyrene production and Ozone depletion. Xerox introduced a "high quality" recycled
photocopier paper in an attempt to satisfy the demands of firms for less environmentally
harmful
products.
This is not to imply that all firms who have undertaken environmental marketing activities
actually improve their behavior.
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In some cases firms have misled consumers in an attempt to gain market share. In 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.
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GREEN MARKETING IN INDIA: EMERGING OPPORTUNITIES
AND CHALLENGE
GREEN PRODUCTS AND ITS CHARACTERISTICS
The products those 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 those 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.
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 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.
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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 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 India's 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 lose its market acceptability.
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GOLDEN RULES OF GREEN MARKETING
1. Know you're 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
wouldn't pay a premium for a CFC-free Journal of Engineering, Science and Management
Education11refrigerator because consumers dint know what CFCs were.).
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.Being Genuine & Transparent: means that a)
you are actually doing what you claim to be doing in your green marketing campaign and b)
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.
3. Being Genuine & Transparent: means that a) you are actually doing what you claim to be
doing in your green marketing campaign and b) 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.
4. Reassure the Buyer: Consumers must be made to believe that the product performs the
job it's supposed to do-they won't forego product quality in the name of the environment.
5. Consider Your Pricing: If you're charging a premium for your product-and many
environmentally preferable products cost more due to economies of scale and use of higherquality ingredients-make sure those consumers can afford the premium and feel it's worth it.
6. 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
7. 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.
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GREEN MARKETING – ADOPTS BY THE FARMS
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 demand changes, many firms see these changes as an opportunity to
exploit and have a competitive advantage over firms marketing non environment ally
responsible alterna tives . 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.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.Being Genuine & Transparent: means that a) you are actually doing what you claim
to be doing in your green marketing campaign and b) 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.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.
• Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the
demands of firms for less environmentally harmful products.
2. Government Pressure - As with all marketing related activities, governments want to
"protect" consumer and society; this protection has significant green marketing implications.
Government regulations relating to environmental marketing are designed to protect
consumers in several ways,
1. Reduce production of harmful goods or by-products Modify consumer and industry's use
and/or consumption of harmful goods
2. Ensure that all types of consumers have the ability to evaluate the environmental
composition of goods. Government establish regulations designed to control the amount of
hazardous wastes produced by firms.
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 when one tuna manufacture stopped using
driftnets the others followed suit.
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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. An example of a firm
that does not promote its environmental initiative 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
manyconsumersmaynotrealizethatCokeisaveryenvironmentallycommittedorganization.Anoth
erfirmwhoieryenvirnmentally 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.Journal of Engineering, Science and Management Education12
5. Cost of Profit Issues - Firms may also use green marketing in an attempt to address cost or
profit related issues. Disposing of environmentally harmful byproducts, 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.SOME CASESInterestingly, green marketing continues to be an issue of 5global
interest. In fact, Google Trends reports that, on a relative basis, more searches for “green
marketing” originated from India than from any other country.
Rank
Country
1.
India
2.
UK
3.
US
4.
Thailand
5.
Australia
6.
Canada
7.
China
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Many companies are adopting green for capturing market opportunity of green marketing
some cases
EXAMPLE 1 : Best Green IT Project: State Bank of India: Green IT@SBIBy 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 farm located in Coimbatore uses 10 Suzlon wind turbines, each
with a capacity of 1.5 MW. The wind farm is spread across three states – Tamil Nadu, with
4.5 MW of wind capacity; Maharashtra, with 9 MW; and Gujarat, with 1.5 MW. 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.
EXAMPLE 2 : Lead Free Paints from Kansai NerolacKansai 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.
EXAMPLE 3 :Indian Oil's Green AgendaGreen Initiatives
• 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.
• 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.
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• The Centre has been certified under ISO-14000:1996 for environment management
systems.
GREEN FUEL ALTERNATIVESIn the country's pursuit of alternative sources of energy,
Indian Oil is focusing on CNG (compressed natural gas), Auto gas (LPG), ethanol blended
petrol, bio-diesel, and Hydrogen energy.
EXAMPLE 4 :India's 1st Green Stadium The Thyagaraja Stadium stands tall in the quiet
residential colony behind the Capital's famous INA Market. It was jointly dedicated by Union
Sports Minister MS Gill and Chief Minister Sheila Dikshit on Friday. Journal of Engineering,
Science and Management EducationDikshit said that the stadium is going to be the first green
stadium in India, which has taken a series of steps to ensure energy conservation and this
stadium has been constructed as per the green building concept with eco-friendly materials.
EXAMPLE 5:Eco-friendly Rickshaws before CWGChief minister Shiela Dikshit launched on
Tuesday a batteryoperated rickshaw, “E-rick”, sponsored by a cellular services provider, to
promote eco-friendly transportation in the city ahead of the Commonwealth Games.
EXAMPLE 6 : Wipro Green IWipro can do for you in your quest for a sustainable tomorrow
- reduce costs, reduce your carbon footprints and become more efficient - all while saving the
environment.Wipro's Green Machines (In India Only)Wipro Infotech was India's first
company to launch environment friendly computer peripherals. For the Indian market, Wipro
has launched a new range of desktops and laptops called Wipro Greenware. These products
are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the
environment.
EXAMPLE 7 : Agartala to be India's first Green City Tripura Sunday announced plans to
make all public and private vehicles in Agartala run on compressed natural gas (CNG) by
2013, thus making the capital “India's first green citsy”.Tripura Natural Gas Co Ltd
(TNGCL), a joint venture of the Gas Authority of India Ltd (GAIL) and the Tripura and
Assam governments, has undertaken a project to supply CNG to all private and government
vehicles.CNG will also be available to those now using electricity, petrol and diesel to run
various machineries.TNGCL chairman Pabitra Kar told reporters. He said: “The company
will soon provide PNG connections to 10,000 new domestic consumers in the city and
outskirts. Agartala will be the first city in India within the next three years to become a green
city.
EXAMPLE 8 : Going Green: Tata's new mantra The ideal global benchmark though is 1.5.
Tata Motors is setting up an eco-friendly showroom using natural building material for its
flooring and energy efficient lights. Tata Motors said the project is at a preliminary stage. The
Indian Hotels Company, which runs the Taj chain, is in the process of creating eco rooms
which will haveenergyefficient mini bars, organic bed linen and napkins made from recycled
paper. But there won't be any carpets since chemicals are used to clean those. And when it
comes to illumination, the rooms will have CFLs or LEDs. About 5% of the total rooms at a
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Taj hotel would sport a chic eco-room design. One of the most interesting innovations has
come in the form of a biogas-based power plant at Taj Green Cove in Kovalam, which uses
the waste generated at the hotel to meet its cooking requirements. Another eco-friendly
consumer product that is in the works is Indica EV, an electric car that will run on polymer
lithium ion batteries. Tata Motors plans to introduce the Indica EV in select European
markets this year.
PRESENT TRENDS IN GREEN MARKETING IN INDIA
Organizations are Perceive Environmental marketing as an Opportunity to achieve its
objectives. Firms have realized that consumers prefer products that do not harm the natural
environment as also the human health. Firms marketing such green products are preferred
over the others not doing
soandthusdevelopacompetitiveadvantage,simultaneouslymeetingtheirbusinessobjectives.Orga
nizations believe they have a moral obligation to be moresocially 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 industry's 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.13Journal of
Engineering, Science and Management Education14Journal of Engineering, Science and
Management Education
• A waste recycling or removal industry develops.
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THE FUTURE OF GREEN MARKETING
There are many lessons to be learned 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 marketing's future? Business scholars have viewed it as a “fringe”
topic, given that environmentalism's acceptance of limits and conservation does not mesh
well with marketing's traditional axioms of “give customer what they want” and “sell as
much as you can”.Evidence indicates that successful green products have avoided green
marketing myopia by
Following three important principles:
CONSUMER VALUE POsSITIONING
• 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 CLAIM
• 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 ecocertifications.
• Encourage consumer evangelism via consumers social and internet communication network
with compelling, interesting and entertaining information about
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Top 10 Companies that Paint India Green
Judging by the number of large, small and mid-size Indian companies that are setting the
trend with green initiatives, India is serious about building environmental sustainability into
her business practices. The following cosmpanies who made it to the list of top 10 green
Indian companies prove the statistics right!
SuzlonEnergy
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.
Suzlon One Earth Global Headquarters in
Pune - India’s greenest building
ITCLimited
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.
ITC Papekraft’s premium range of
eco-friendly business paper
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TataMetaliksLimited(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.
“Everybody is motivated to do
somethingabout reducing carbon
footprints”, says Harsh Jha, Managing
Director – TML
Tamil Nadu Newsprint and Papers Limited (TNPL)
Adjudged the best performer in the 2009-2010 Green
Business Survey, TNPL was awarded the Green
Business Leadership Award in the Pulp and Paper
Sector. The initiatives undertaken by this top green
firm in India includes two Clean Development
Mechanism projects and a wind farm project that helped
generate 2,30,323 Carbon Emission Reductions earning
Rs. 17.40 Crore.
Wipro broadens its green IT initiatives
through its participation in "The Green Grid"
Aerial view of TNPL
WiproTechnologies
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
towards energy efficiency and was lauded for
launching energy star compliant products in the
market.
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HCLTechnologies
This IT major may be considered as the icon ofIndian 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.
The HCL Green Bag campaign
that aimed at tackling e-waste
ONGC’s green projects contribute to increased
environmental awareness among local
communinities
Oil and Natural Gas Company (ONGC)
India’s largest oil producer, ONGC, is all set to
lead the list of top 10 green Indian
companies with
energy-efficient,
green
crematoriums that will soon replace the
traditional wooden pyre across the country.
ONGC’s Mokshada Green Cremation initiative
will save 60 to 70% of wood and a fourth of the
burning time per cremation.
IndusInd’sBank
Green banking has been catching up as among the top
Indian green initiatives ever since IndusInd opened the
country’s first solar-powered ATM and pioneered an ecosavvy change in the Indian banking sector. The bank is
planning for more such initiatives in addressing the
challenges of climate change.
IndusInd’s solar-powered ATM
expects to save around 1,980 Kw of
energy annually
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IDEACellular
One of the best Indian companies, IDEA,
paints India green with its national ‘Use Mobile,
Save
Paper’
campaign.
The
company
had
organized Green Pledge campaigns at Indian
cities
where
thousands
came
forward
and
pledged to save paper and trees. IDEA has also
set up bus shelters with potted plants and tendril
climbers to convey the green message.
IDEA’s green bus shelter in Mumbai
HeroHondaMotors
Hero Honda is one of the largest two-wheeler
manufacturers in India and an equally responsible top
green firm in India. The company’s philosophy of
continuous
innovation
in green
products
and
solutions has played a key role in striking the right balance
between business, mankind and nature.
Hero Honda Green Ambassadors: winners
of the international inter-school
environment quiz competition
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SOME PROBLEMS WITH GREEN MARKETING
There are a number of potential problems that must overcome. One of the main problems is
that firms using green marketing must ensure that their activities are not misleading to
consumers or industry, and do not breach any of the regulations or laws dealing with
environmental marketing. Green marketing claims must clearly state environmental benefits.
A problem of the firms face is that thos who modify their products due to increased consumer
concern must contend with the fact that consumers' perceptions are sometimes not correct.
For example the McDonald's case where it has replaced its clam shells with plastic coated
paper. There is ongoing scientific debate which is more environmentally friendly. Some
scientific evidence suggests that when taking a cradle to grave approach, polystyrene is less
environmentally harmful if this is the case McDonald's bowed to consumer pressure, yet has
chosen the more environmentally harmful option.
When firms attempt to become socially responsible, they may face the risk that the
environmentally responsible action of today will be found to be harmful in the future. Take
for example the aerosol industry which has switched from CFCs (chlorofluorocarbons) to
HFCs (hydro fluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now
use DME (di-methyl ether) as an aerosol propellant, which may also harm the ozone layer.
Given the limited scientific knowledge at any point, it may be impossible for a firm to have
made the correct environmental decision.
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GREEN MARKETING OF MNC’s
1. Philips Light's CFL
Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb
was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had
difficulty climbing out of its deep green niche.The company re-launched the product as
"Marathon," underscoring its new "super long life" positioning and promise of saving $26 in
energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy Star label to add
credibility as well as new sensitivity to rising utility costs and electricity shortages, sales
climbed 12 percent in an otherwise flat market.
2. Electronics sector
The consumer electronics sector provides room for using green marketing to attract new
customers. One example of this is HP's promise to cut its global energy use 20 percent by the
year 2010.To accomplish this reduction below 2005 levels, The Hewlett-Packard Company
announced plans to deliver energy-efficient products and services and institute energyefficient
operating
practices
in
its
facilities
worldwide.
3. Introduction of CNG in Delhi
New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of
India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt
CNG
in
all
public
transport
systems
to
curb
pollution
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4. ITC
* ITC has been 'Carbon Positive' three years in a row (sequestering/storing twice the amount
of CO2 than the Company emits).
* 'Water Positive' six years in a row (creating three times more Rainwater Harvesting
potential than ITC's net consumption).
* 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 recognised 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
drylands and moisture-stressed areas.
* ITC's Sustainable Community Development initiatives include women empowerment,
supplementary education, integrated animal husbandry programmes.
5. Maruthi: Greening of Supply Chain
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.
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CORPORATE INITIATIVES FOR GREEN MARKETING AS SOCIAL
RESPONSIBILITIES:
1. Broadcaster New Delhi Television Ltd , or NDTV, in partnership with car maker Toyota Kirloskar
Motor Pvt. Ltd launched Greenathon on 7 February—a 24-hour live television event to create awareness
about environmental issues.
2. Reva Electric Car Co. developing a market for electric cars and thereby a sustainable business—firms
are gearing up to bring about a change in the way their businesses and products are perceived.
3. Panasonic Corp. is working out a go-to-schools interactive campaign to spread awareness among
students on global warming and other environmental issues, to begin with.
4. Nokia India Pvt. Ltd has launched a campaign to recycle electronic waste. Consumers are encouraged to
dump old mobile phones and accessories, irrespective of brand, at any of the 1,300 green recycling bins at
Nokia priority dealers and Nokia care centres.
5. Henkel India Ltd launched "eco-learn"—a learning initiative to inculcate environmental concern and
sustainability.
6. Hindustan Unilever Ltd's, or HUL's, Surf Excel Quick Wash talked about how housewives could save
two buckets of water while using premium detergent powder to wash clothes.
7. Reckitt Benckiser Group Plc. has launched a global campaign Our Home Our Planet to help consumers
save money and minimize their carbon footprint as part of
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PUBLIC OPINION ON GREEN MARKETING:
* Shoppers are thinking green, but not always buying that way, according to a new study
released by the Grocery Manufacturers Association (GMA) and Deloitte. The study found
that while 54 percent of shoppers indicate that environmental sustainability in a factor in their
purchasing decisions, they actually bought green products on just 22 percent of their
shopping trips. The survey is the basis of the GMA-Deloitte report titled Finding the Green in
Today's Shoppers: Sustainability Trends and New Shopper Insights and was based on
interviews with over 6,400 shoppers.
* Now eco packaging is poised to become the next low-hanging fruit of the clean tech world.
Investors and entrepreneurs this week at Europe's most important annual clean tech
conference reported unprecedented interest in reducing the use of raw materials while finding
superior protection for food and other products.
* Consumers are increasingly putting plastic shopping bags and non-green wrapping items on
their naughty list, according to Deloitte's 2008 Annual Holiday Survey. Nearly half of the
13,000 consumers polled said they'd be willing to pay more for green gifts. This was up from
17percentlastyear.
* Consumers perceive themselves as being environmentally responsible. Successful green
marketing requires matching a company's brand attributes with its customers' identity as
"green." An article suggested examining green marketing from the perspective of the 4 P's of
marketing -- product, price, placement and promotion -- plus a 5th P, "prove it."
* Americans are quick to identify polluting companies as "socially irresponsible" and make
their purchasing decisions accordingly, says a new survey. The poll also found that American
consumers between the ages of 18-29 are more likely to spend more on organic,
environmentally preferable or fair trade products than other age groups.
* The survey, by the research firm Global Market Insite, quizzed more than 15,000 online
consumers in the U.S. and 16 other countries about their socially conscious business
practices.
* Americans placed the highest value on corporate community involvement; when asked
what factor was the most important in determining if a business is socially responsible,
"contributing to the community" (e.g. sponsorship, grants, employee volunteer programs)
came in highest with 47%. On the other hand, all of the other countries surveyed (India,
Canada, Australia, Germany, China, and Japan) selected environmentally preferable practices
(recycling, using biodegradable products) as the top factor.
* Not surprising, the U.S., along with other countries such as India and China, which have
experienced environmental disasters caused by corporations (e.g. Love Canal, Bhobal, Exxon
Valdez) or have had to deal with major polluting issues (e.g. coal plants, manufacturing),
believe that damaging the environment is associated with acting socially irresponsible. Other
countries, including France (60%), Denmark (52%) and Italy (45%) selected the use of child
labor as the main factor in making them think a corporation is socially irresponsible.
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3 Keys to Successful Green Marketing
Green Marketing Can Win More Customers If You Do It Right
Show potential customers that you follow green business practices and you could reap more
green on your bottom line. Green marketing isn't just a catchphrase; it's a marketing strategy
that can help you get more customers and make more money. But only if you do it right.
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.
Let's put the three essential elements of a successful green marketing campaign together by
looking at an example.
Suppose that you have decided that your business will no longer use plastic bags to wrap
customer purchases. You know that the traditional plastic bag takes about one thousand years
to decompose (cbc.ca) and want to do your part to stop the proliferation of plastic bags in
landfills. You feel that this is the kind of environmental action that will be popular with
potential customers and a good opportunity to do some green marketing.
To be genuine, you have to ensure that none of your business practices contradict your
decision not to use plastic bags. What if customers who happen to walk behind your store see
an overflowing trash bin filled with paper, cardboard and plastic bottles? Obviously, he or she
will decide that you don't care as much about recycling as you say you do in your green
marketing.
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* Juxtaposing Americans' negative opinions on damaging the environment, the
GMIPoll found that only 42% of all Americans are willing to spend more for products
branded as organic, environmentally friendly, or fair trade, except for
the Y Generation. While only 14% of 18-29 year olds label themselves as socially
responsible consumers, half of this age group (50%) responded that they will spend more on
these types of products (organic, environmentally friendly or fair trade) compared to their
older and wealthier counterparts, with only 37% of 45-64 years olds saying they would spend
more on green products .
* Surprisingly, a large majority of online consumers in the less developed countries of China
and India, 91% and 71% respectively, will pay more for socially responsible products, while
almost half (47%) of the U.K. respondents indicated they would spend more for these types
of goods.
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10 Easy Ways Your Business Can Go Green
Green Business is Good for the Bottom Line
Whether you run a home-based business or a brick-and-mortar retail business, there are
simple, easy things you can do to go green. And operating a green business is not only good
for the environment but good for your business's bottom line because conserving resources
and cutting down on waste saves money.
Here are just ten easy-to-implement ideas for running a green business from the Department
of Foreign Affairs and International Trade's Greening Operations guides that you can put into
practice right now to make your business a more environmentally friendly place.
Whether you run a home-based business or a brick-and-mortar retail business an off-site
enterprise, there are simple, easy things you can do to go green. And operating a green
business is not only good for the environment but good for your business's bottom line
because conserving resources and cutting down on waste saves money.
Go green by:
1. Turning off equipment when it's not being used. This can reduce the energy used by 25
percent; turning off the computers at the end of the day can save an additional 50 percent.
2. Encouraging communications by emsail, and reading email messages onscreen to
determine whether it's necessary to print them. If it's not, don't!
3. Reducing fax-related paper waste by using a fax-modem and by using a fax cover sheet
only when necessary. Fax-modems allow documents to be sent directly from a computer,
without requiring a printed hard copy.
4. Producing double-sided documents whenever possible.
5. Not leaving taps dripping; always close them tightly after use. (One drop wasted per
second wastes 10,000 litres per year.)
6. Installing displacement toilet dams in toilet reservoirs. Placing one or two plastic
containers filled with stones (not bricks) in the toilet's reservoir will displace about 4 litres of
water per flush - a huge reduction of water use over the course of a year.
7. Finding a supply of paper with maximum available recycled content.
8. Choosing suppliers who take back packaging for reuse.
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9. Instigating an ongoing search for "greener" products and services in the local
community. The further your supplies or service providers have to travel, the more energy
will be used to get them to you.
10. Before deciding whether you need to purchase new office furniture, see if your existing
office furniture can be refurbished. It's less expensive than buying new and better for the
environment.
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CONCLUSION
Green marketing should not neglect the economic aspect of marketing. Marketers need to
understand the implications of green marketing. If we think customers are not concerned
about environmental issues or will not pay a premium for products that are more ecoresponsible, think again. We must find an opportunity to enhance our product's performance
and strengthen yur customer's loyalty and command a higher price.
Green marketing is still in its infancy and a lot of research is to be done on green marketing
to fully explore its potential. Think of a refrigerator for example. While we may have had to
be convinced in the 1950s to buy a refrigerator, we would have wanted the great white box to
look cool in the 1970s, but in today's uncertain world, we might ask ourselves about the
impact of the chlorofluorocarbons (CFCs) that our refrigerator is emitting and demand a more
environmentally friendly refrigerator.
So, if today's successful marketing is about appealing to personal values and delivering
consumer empowerment, then surely the time is right to inject sustainable development into
the marketing mix to help address some of the gritty issues currently facing our planet. Green
marketing methods produce highly effective results. They apply all of the steps you need to
cut costs, raise response rates and increase growth in the most important marketing metric we
are all held accountable for—the bottom line.
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REFERENCES:
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