Consumer Perception On Green Marketing.docx

DISSERTATION REPORT OF A STUDY ON CONSUMER PERCEPTION ON GREEN MARKETING “Submitted in the Partial Fulfillment for the Requirement of Post Graduate Diploma in Management in International Business” (PGDM-IB)

Submitted To:

Submitted By:

Internal Guide: Dr. Gopika Kumar

Tanya Arora

Designation: Associate Professor

Roll No: 51/PGDM (IB) Batch: 2017-2019

1

DISSERTATION REPORT ON A STUDY ON CONSUMER PERCEPTION ON GREEN MARKETING “Submitted in the Partial Fulfillment for the Requirement of Post Graduate Diploma in Management in International Business” (PGDM-IB)

Submitted To:

Submitted By:

Dr. Gopika Kumar

Tanya Arora

Associate Professor

Roll No. 51/PGDM (IB) Batch 2017-19 Jagannath International Management School 2

Kalkaji, New Delhi

DECLARATION

Title of Dissertation Report Program: A Study on Consumer Perception on Green Marketing I declare, (a) That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged. (b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Date: …………….…

Tanya Arora 51/PGDM-2017(IB)

3

2017-2019

CERTIFICATE

This is to certify that Ms. Tanya Arora of PGDM (IB) has completed his Summer Training Project on “A Study on Consumer Perception on Green Marketing” of his own. His work is up to my satisfaction.

Project Guide ----------------------Dr. Gopika Kumar Associate Professor

4

ACKNOWLEDGEMENT

The internship opportunity I had with SONY INDIA PRIVATE LIMITED was a great chance for learning and professional development. I have been provided with great opportunities. I am also grateful for having a chance to meet so many wonderful people and professionals who led me though this internship period. I am using this opportunity to express my gratitude and thanks to my Company Guide MR. PANKAJ SHARMA, my external guide who despite being extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out my project at their esteemed organization. I am thankful to my internal faculty guide of my institute DR. J.K BATRA (Director at JIMS Kalkaji) and my internal mentor MS. SANJEELA MATHUR (Associate Professor at JIMS Kalkaji) for guiding me with all the rules and regulations of internships and clearing the doubts whenever required. I choose this moment to acknowledge their help gratefully. It is my radiant sentiment to place on records my best regards and deepest sense of gratitude to the constant support I have received through my Family, Friends and Coworkers during the Internship period. I perceive as this opportunity a milestone in my career development. I will strive to use gained skills and knowledge in the best possible way, and I will continue to work on their improvement to attain desired career objectives. Hope to continue cooperation with all of you in the future.

Tanya Arora 51/PGDM-2017(IB) 2017-2019 5

CONTENTS CHAPTER 1: INTRODUCTION .................................................................................................15 WHAT IS GREEN MARKETING? .........................................................................................15 BIRTH OF GREEN MARKETING ..........................................................................................17 EVOLUTION OF GREEN MARKETING ................................................................................18 IMPORTANCE OF GREEN MARKETING .............................................................................19 GOALS OF GREEN MARKETING ........................................................................................20 NEED OF GREEN MARKETING ..........................................................................................20 WHAT ARE “GREEN PRODUCTS” OR “ENVIRONMENTAL PRODUCTS” ..........................20 THE SEVEN P’s OF GREEN MARKETING ..........................................................................21 PRODUCT ........................................................................................................................21 PRICE ...............................................................................................................................22 PLACE ..............................................................................................................................22 PROMOTION ....................................................................................................................22 PEOPLE............................................................................................................................23 PROCESS.........................................................................................................................23 PHYSICAL EVIDENCE .....................................................................................................23 WHY IS GREEN MARKETING IMPORTANT? ......................................................................24 BENEFITS OF GREEN MARKETING: ..................................................................................25 WHY ARE FIRMS USING GREEN MARKETING? ................................................................25 OPPORTUNITIES .............................................................................................................25 SOCIAL RESPONSIBILITY ...............................................................................................26 GOVERNMENTAL PRESSURE ........................................................................................27 COMPETITIVE PRESSURE .............................................................................................28 COST / PROFIT ISSUES ..................................................................................................28 COMPANIES INVOLVED IN GREEN MARKETING ..............................................................29 HSBC ................................................................................................................................29

6

ROYAL DUTCH SHELL ....................................................................................................29 HERO HONDA ..................................................................................................................30 JK TYRES .........................................................................................................................30 REVA ELECTRIC CAR COMPANY ..................................................................................30 COCA-COLA .....................................................................................................................30 STATE BANK OF INDIA....................................................................................................31 SUZLON ENERGY............................................................................................................31 KANSAI NEROLAC ...........................................................................................................32 INDIAN OIL .......................................................................................................................32 ITC LIMITED .....................................................................................................................33 WIPRO TECHNOLOGIES .................................................................................................33 TATA METALINKS LIMITED (TML)...................................................................................33 HCL TECHNOLOGIES ......................................................................................................33 PANASONIC INDIA...........................................................................................................33 CHALLENGES IN GREEN MARKETING ..............................................................................34 CONSUMER BUYING DECISION OF GREEN PRODUCTS ................................................35 MOTIVATIONS .................................................................................................................35 BARRIERS ........................................................................................................................36 GREEN MARKETING: SWOT ANALYSIS ............................................................................37 STRENGTHS ....................................................................................................................37 WEAKNESS ......................................................................................................................38 OPPORTUNITIES .............................................................................................................38 THREATS .........................................................................................................................38 BENEFITS OF GREEN MARKETING ...................................................................................39 GOLDEN RULES OF GREEN MARKETING .........................................................................39 GREEN MARKETING STRATEGIES ....................................................................................40 GREEN BASED PRODUCT STRATEGIES.......................................................................40

7

GREEN LOGISTICS STRATEGIES ..................................................................................41 GREEN PRICING STRATEGIES ......................................................................................42 GREEN PROMOTION STRATEGIES ...............................................................................42 GENERAL STRATEGIES..................................................................................................43 GOVERNMENT INTERVENTION STRATEGIES ..............................................................44 UNDERTAKE LIFECYCLE INVENTORY ANALYSIS/ASSESSMENT (LCA) .....................44 TEAMING UP WITH ALL STAKEHOLDERS FOR SUCCESS...........................................45 NATIONAL AND INTERNATIONAL SCENARIO ...................................................................45 THE NEW “GREEN” REVOLUTION......................................................................................46 GREEN WARMING – PROPOSED SOLUTION ....................................................................47 SUPPLY CHAIN ................................................................................................................47 PACKAGING .....................................................................................................................48 RAW MATERIAL ...............................................................................................................48 PRODUCT INNOVATIONS ...............................................................................................49 SERVICES ........................................................................................................................49 PRESENT TREND IN GREEN MARKETING ........................................................................50 GREEN CODE ..................................................................................................................50 INITIATIVES TAKEN BY GOVERNMENT .............................................................................52 DEVELOPMENT OF ISO 14000 SERIES OF STANDARDS. ............................................52 ECO-LABELING INITIATIVES...........................................................................................52 ECO-LABELING SCHEMES IN INDIA ..............................................................................52 ECO-MARK IN INDIA ........................................................................................................53 FUTURE GROWTH OF GREEN MARKETING .....................................................................53 CONSUMER VALUE POSITIONING:................................................................................53 CALIBRATION OF CONSUMER KNOWLEDGE: ..............................................................54 CREDIBILITY OF PRODUCT CLAIMS: .............................................................................54 CHAPTER 3: RESEARCH METHODOLOGY ...........................................................................55

8

BENEFITS OF MARKET RESEARCH ..................................................................................55 PROCESS ............................................................................................................................56 DEFINING THE PROBLEM ...............................................................................................56 DEVELOPING THE RESEARCH PLAN ............................................................................56 COLLECTION OF DATA ...................................................................................................56 ANALYSIS AND INTERPRETATION OF DATA ................................................................56 RESEARCH DESIGN............................................................................................................57 OBJECTIVES OF RESEARCH .............................................................................................57 NEED OF THE PROJECT ....................................................................................................57 RESEARCH METHODOLOGY ADOPTED ...........................................................................59 DATA ANALYSIS ..................................................................................................................59 LIMITATIONS OF THE STUDY.............................................................................................59 CHAPTER 4: DATA ANALYSIS & INTERPRETATION .............................................................61 CHAPTER 5: FINDINGS, SUGGESTIONS & CONCLUSION ...................................................71 FINDINGS .............................................................................................................................71 RECOMMENDATIONS .........................................................................................................72 CONCLUSION ......................................................................................................................73 BIBLIOGRAPHY ...................................................................................................................73 BOOKS & JOURNALS ......................................................................................................73 WEBSITES........................................................................................................................74

9

PREFACE Although environmental issues influence all human activities, few academic disciplines have integrated green issues into their literature. This is especially true of marketing. As society becomes more concerned with the natural environment, businesses have begun to modify their behavior in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. Some evidence of this is the development of journals such as "Business Strategy and the Environment" and "Greener Management International," which are specifically designed to disseminate research relating to business' environmental behavior. One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like "Green Marketing" and "Environmental Marketing" appear frequently in the popular press. Many governments around the world have become so concerned about green marketing activities that they have attempted to regulate them. For example, in the United States (US) the Federal Trade Commission and the National Association of Attorneys-General have developed extensive documents examining green marketing issues. One of the biggest problems with the green marketing area is that there has been little attempt to academically examine environmental or green marketing. While some literature does exist, it comes from divergent perspectives. This report will attempt to: 

Introduce the terms and concepts of green marketing;



Briefly discuss why going green is important;



Examine some of the reason that organizations are adopting a green marketing philosophy; and



Mention some of the problems with green marketing



Find out ways to improve consumer appeal for environmentally preferable products through different marketing strategies 10



Effect on Consumers

11

EXECUTIVE SUMMARY Terms like "Green Marketing" appear frequently in the popular press. Many governments around the world have become so concerned about green marketing activities that they have attempted to regulate them. Other similar terms used are Environmental Marketing and Ecological Marketing. American Marketing Association Define: - 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

To succeed, any green strategy must fulfill three criteria: 

Firstly, it must be a sustainable and credible programmed, which brings real benefits to the environment.



Secondly, it must deliver sound economic ROI and competitive advantage to the business.



Thirdly, it must be supported by relevant green messages, which resonate with customers and prospects.

Basically, the main aim of the project is to analyze the developments which are taking place throughout the world to promote green products and green marketing.

12

LITERATURE REVIEW

The concept of green marketing has evolved over the years. There are basically three stages in which it has evolved. 1. The decade of the late 1980s marked the first stage of green marketing, when the concept of “green marketing” was newly introduced and discussed in industry (Peattie and Crane, 2005). Owing to the upsurge of this new concept many marketers tried to involve in green marketing in order to generate positive consumer response which would be converted into goodwill, market share and sales. However, in spite of reports stating that the environmental problems constituted one of the uppermost public concerns, market growth of these products fell short of expectations. 2. The second stage started off as a consumer backlash. Many organizations “green washed” the consumers. In order to improve their sales, thus creating cynical attitude of the consumers towards the green concept. Some of the marketing practices which lead to the failure of green marketing during this period are (Peattie and Crane 2005): a) Green spinning -> Taking a reactive stance of “green”, if accused of malpractice b) Green Selling -> taking an opportunistic approach by adding some green claims to existing products with an intention to boosts profits. c) Green harvesting -> Becoming enthusiastic about the environment only when greening would result in cost savings. d) Entrepreneur marketing -> Developing innovative green products without actually considering consumer needs. e) Compliance marketing -> Just following the environmental standards as an opportunity to promote the company’s green credentials rather than actually being involved 3. The evolution of the third stage is just a response to the anomalies occurring in the second stage. 13

With the implementation of advanced technology, stricter state enforcement on deceptive claims, govt. regulations and incentives and closer scrutiny from various environmental organizations and media many green products have regained confidence in the 2000’s (Gurau and Ranchhod, 2005; Ottoman, 2007). With green and sustainable development as the theme of 21st century development, two trends have been predicted as inevitable in the near future of green marketing. They are: a) First the concept of an eco-friendly approach of doing business will be pushed into mainstream (Hanas 2007) b) Second, corporations from developed countries will initiate international green marketing in order to expand their market, increase their sales and take advantage of the positive image of their green brands established in their domestic markets (Gura˘u and Ranchhod, 2005; Johri and Sahasakmontri, 1998; Pugh and Fletcher, 2002).

14

CHAPTER 1: INTRODUCTION WHAT IS GREEN MARKETING? In the last decade, consumers have become more enlightened on environmental issues. Green marketing refers to selling product or rendering services based on environmental benefit. It came into existence in late 1980s and early 1990s. 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. Polonsky (1994) There has been little analysis of the impact of this new market on the consumers and the environment so far. Green marketing affects all areas of our economy, it does not just lead to environmental protection but it also creates new market and job opportunities. Companies that are environmental stewards stand a chance of gaining many satisfied and loyal customers. Environmental issues have gained importance in business as well as in public life throughout the world. It is not like that a few leaders of different countries or few big renowned business houses are concerned about the day to day deterioration of oxygen level in our atmosphere but every common citizen of our country and the world is concerned about this common threat of global warming. So, in this scenario of global concern, corporate houses have taken green-marketing as a part of their strategy to promote products by employing environmental claims either about their attributes or about the systems, policies and processes of the firms that manufacture or sell them.

15

Clearly green marketing is part and parcel of overall corporate strategy; along with manipulating the traditional marketing mix (product, price, promotion and place), it requires an understanding of public policy process. So, we can say green marketing covers a broad range of activities. A company which follows green marketing should have the following goals as innate to its system: 

Eradicate the concept of waste



Re-invent and re-innovate the concept of a product



Make prices reflect actual and environmental costs



Make environmentalism profitable

FIRMS CAN ‘GREEN’ THEMSELVES IN THREE WAYS: 

Value-addition processes



Management systems



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: 

Reuse – design a product so that it can be used many times



Recycle – products can be reprocessed and converted into raw material to be used in different or the same product 16



Reduce – the product can use lesser raw materials or generate few disposable wastes but ensure that it delivers benefits comparable to its former version or to competing products

Green marketing consists of 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 minimal detrimental impact on the natural environment. The many meaning of GREEN:

Ecological

Fair Trade

Conservation

GREEN CSR

Non-Profit

Political

Sustainability

BIRTH OF GREEN MARKETING The concept of green marketing has been around at least since the first Earth Day in 1970. But the idea did not catch on until the 1980s, when rising public interest in the environment led to a demand for more green products and services. Manufacturers responded to public interest by labeling hundreds of new products "environmentally friendly"—making claims that products were biodegradable, compostable, energy efficient, or the like. The term Green Marketing came into prominence in the late 1980s and early 1990s.

17

The American Marketing Association (AMA) held the first workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing". The first wave of Green Marketing occurred in the 1980s. Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view on the company's environmental impact. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting “the needs of the present without compromising the ability of future generations to meet their own need”, this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. The green marketing has evolved over a period of time. According to Peattie (2001), the evolution of green marketing has three phases: 

First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems.



Second phase was “Environmental “green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues.



Third phase was “Sustainable" green marketing. It came into prominence in the late 1990s and early 2000.

EVOLUTION OF GREEN MARKETING The green marketing has evolved over a period of time. According to Peattie (2001), the evolution of green marketing has three phases: 

First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems

18



Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues



Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s and early 2000

IMPORTANCE OF GREEN MARKETING Human Beings have limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives. When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: 

Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives



Organizations believe they have a moral obligation to be more socially responsible



Governmental bodies are forcing firms to become more responsible



Competitors'

environmental

activities

pressure

firms

to

change

their

environmental marketing activities 

Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior

19

GOALS OF GREEN MARKETING 

Eliminate the concept of waste.



Reinvent the concept of product.



Make prices reflect actual and environmental costs.



Make environmentalism profitable.



Bringing out product modifications.



Changing in production processes.



Packaging changes.



Modifying advertising

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

WHAT

ARE

“GREEN

PRODUCTS”

OR

“ENVIRONMENTAL

PRODUCTS” Although no consumer product has a zero impact on the environment, in business, the terms “green product” and “environmental product” are used commonly to describe those that strive to protect or enhance the natural environment by conserving energy and/or resources and reducing or eliminating use of toxic agents, pollution, and waste.

20

Greener, more sustainable products need to dramatically increase the productivity of natural

resources,

follow

biological/

cyclical

production

models,

encourage

dematerialization, and reinvest in and contribute to the planet’s “natural” capital. Escalating energy prices, concerns over foreign oil dependency, and calls for energy conservation are creating business opportunities for energy-efficient products, clean energy, and other environmentally sensitive innovations and products.

THE SEVEN P’s OF GREEN MARKETING Like conventional marketers, green marketers must address the ‘four Ps’ in innovative ways. 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 impacts 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. 21



A service that loans or rents products – such as toy libraries.



Certified products, which exceed or meet environmentally responsible criteria.

Whatever the product or service, it is important to ensure that products meet or exceed the quality expectations of customers and are tested. 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. 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. PROMOTION Promoting products and services to target markets includes, public relations, sales promotions, paid advertising, on-site promotions and direct marketing 22

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 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. PEOPLE People are our biggest asset and brand ambassadors at every point. Some of our clients have teams who really value sustainability and this comes across in bucket loads when you meet them. The rewards for getting it right can be substantial – engaged employees are more productive and reduce costs and losses to the organization associated to staff churn. Don’t reprioritize the communications intended to get your employees on board. Integrate with your wider platforms to give the same creativity that you would take to your external stakeholders. PROCESS Processes that you offer within the green program must reflect your overall commitment to, and understanding of, the implementation of green. PHYSICAL EVIDENCE The Physical evidence is not simply how clean the building is, but a holistic validation of the impact of the green strategies that the contractor puts in place in the building. This P is one which is driven by, and drives innovation, and innovation with measurable outcomes, is a key point of difference from a competitor. 23

WHY IS GREEN MARKETING IMPORTANT? The question of why green marketing has increased in importance is quite simple and relies on the basic definition of Economics: “Economics is the study of how people use their limited resources to try to satisfy unlimited wants.” Thus, mankind has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. 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. Symbol used to denote recycle item:

24

BENEFITS OF GREEN MARKETING:

Healthier

Saves Time

Benefits

Saves Money

Reduces Wastes

WHY ARE FIRMS USING GREEN MARKETING? When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: 

Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives;



Organizations believe they have a moral obligation to be more socially responsible;



Governmental bodies are forcing firms to become more responsible;



Competitors'

environmental

activities

pressure

firms

to

change

their

environmental marketing activities; and 

Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior.

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 non25

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



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. 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: 

They can use the fact that they are environmentally responsible as a marketing tool



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 26

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 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.

GOVERNMENTAL PRESSURE Governmental regulations relating to environmental marketing are designed to protect consumers in several ways: 

Reduce production of harmful goods or by-products



Modify consumer and industry's use and/or consumption of harmful good



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.

27

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. 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. 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.

28

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.

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 threefold 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 then move to other centers like Bangalore, Pune, etc. The bank is also planning to make the commercial loans, transactions, etc in an ecofriendly 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.

29

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. 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 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. 30

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 transactions 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 submegawatt on-shore turbines at 600 Kilowatts (KW), to the world’s largest commercial 6.15 MW offshore turbine – with a vertically integrated, low-cost, manufacturing base. The Group – headquartered at Suzlon One Earth in Pune, India – comprises Suzlon Energy Limited and its subsidiaries, including REpower Systems SE.

31

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 crores so far in green fuel projects at its refineries; ongoing projects account for a further Rs. 5,000 crores.



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 greener 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.

32

ITC LIMITED ITC strengthened their commitment to green technologies by introducing ‘ozonetreated 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 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.

33

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.

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. 34

 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. Some Other Challenges Ahead in Green Marketing Are:

 Green products require renewable and recyclable material, which is costly  Requires a technology, which requires huge investment in R & D  Water treatment technology, which is too costly  Majority of the people are not aware of green products and their uses  Majority of the consumers are not willing to pay a premium for green products. CONSUMER BUYING DECISION OF GREEN PRODUCTS 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.

35



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. 

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

36



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 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.

GREEN MARKETING: SWOT ANALYSIS As in formulation of green strategy, a firm may evolve it from a SWOT analysis Environmental Audit. STRENGTHS 

Marketers get access to new markets and gain an advantage over competitors that are not focusing on “greenness.”



Marketers can charge a premium on products that are seen as more ecoresponsible.



Organizations that adopt green marketing are perceived to be more socially responsible.

37



Green marketing builds brand equity and wins brand loyalty among customers. E.g. research and development capabilities for clean processes and green products and human resources committed to environmental protection.

WEAKNESS 

Most customers choose to satisfy their personal needs before caring for environment.



Overemphasizing greenness rather than customer needs can prove devastating for a product.



Many customers keep away from products labeled “Green” because they see such labeling as a marketing gimmick, and they may lose trust in an organization that suddenly claims to be green. E.g. products cannot be recycled, and hazardous wastes) of a company.

OPPORTUNITIES 

Marketing to segment which are becoming more environmentally aware and concerned. These consumers are demanding products that conform to these new attitudes.



Organizations perceive green marketing to be a competitive advantage, relative to the competitors. Firms, therefore, strive to improve upon their societal awareness. This complements the increase in consumers’ socially conscious behavior and will therefore give them an advantage over competitors who do not address these issues. E.g. offering an environmentally friendly product and saving resources, and relating them to internal strengths.

THREATS 

Uncertainty as to the environmental impact of present activities, including that is perceived to be less environmentally harmful.



Uncertainty as to which green marketing activities are acceptable from a government perspective.



The possibility of a backlash from consumers or government based on existing green marketing claims, threat one and two above may cause backlash to arise. 38

E.g. competitors gain market shares with green products and increased environmental regulations.

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 consumer’s aspirations for environmentally less damaging or neutral products. Many companies want to have an early mover advantage as they have to eventually move towards becoming green. Some of the advantages of green marketing are:

 It ensures sustained long-term growth along with profitability 

It saves money in the long run, though initially the cost is more

 It helps the companies market their products and services keeping the environment aspects in mind

 It helps in accessing the new markets and enjoying the competitive advantage  Most of the employees also feel proud and responsible to be working for an environmentally responsible company

GOLDEN RULES OF GREEN MARKETING 

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!).



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.

39



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”!



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.)



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.

GREEN MARKETING 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 40

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, 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. 4. 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. 41

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. 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: 

Explicitly or implicitly addresses the relation between a product/service and the biophysical environment.



Promotes a green lifestyle with or without highlighting a product/service.



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: 

Educate consumers on the environmental problems that a green product solves.



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.



Provide performance reassurance of green-based products, as many consumers perceive them to be inferior to conventional products.



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

42



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. 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: 

Undertaking environmental audit to assess current performance and establishing a benchmark upon which to measure progress 43



Government and other stakeholders expect being proactive by going



Being a visible CEO who demonstrates commitment to environmental issues



Empowering employees through thought – provoking educational programs on ecological issues



Constantly integrating, learning and refining products and processes



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: 

Formulation and adoption of regulation policies that promote the balancing of ecological and economic activities



Reforming the production and consumption practices through mandate and incentives



Government participation in procurement, R&D and international cooperation; and



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

44

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.

NATIONAL AND INTERNATIONAL SCENARIO In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more for ecologically compatible products. By 1991, environmentally conscious individuals were willing to pay between 15-20 percent more for green products. Today, more than one-third of Americans say they would pay a little extra for green products. An important challenge facing marketers is to identify which consumers are willing to pay more for environmentally friendly products. It is apparent that an enhanced knowledge of the profile of this segment of consumers would be extremely useful. Everett Rogers, communication scholar and author of “Diffusion of Innovations”, claims that the following five factors can help determine whether a new idea will be adopted or not, including the idealism of the shift towards “green”: 

Relative advantage: is the degree to which the new behavior is believed to accrue more beneficial outcomes than current practice.



Observability: is how easy it is to witness the outcomes of the new behavior.



Trial ability: is the ease with which the new behavior can be tested by an individual without making a full commitment.



Compatibility: is the degree to which the new behavior is consistent with current practice.



Complexity: is how difficult the new behavior is to implement.

45

GPNI is an evolving network of professionals interested and active in the general area of sustainable consumption and production- more specifically: Green Purchasing and Public Procurement. It is currently a loose informal network of professionals primarily operating as an internet based electronic forum. The objectives of the GPNI are: 

To create awareness amongst Indian industry and other stakeholders about Green Purchasing and Procurement (GPP).

 To encourage and facilitate implementation of GPP and Greening Supply Chains (GSC) projects to enhance the competitiveness of the Indian industries.

THE NEW “GREEN” REVOLUTION Global Warming is the phenomenon of increase in Earth’s temperature caused by burning of fossil fuels and other pollutants in the air. As per the predictions by IPCC (Intergovernmental Panel on Climate Change) it is predicted that the global temperature is likely to increase by 1.1 to 6.4 degrees Celsius “between” 1990 to 2100. The key causes of global warming are summarized below: 

Carbon dioxide emitted from the Power Plants, Cars, airplanes and other industries.



Methane emitted from landfill, petrochemical factories and steel and fertilizer plants.



Nitrogen dioxide emitted from waste combustion, agriculture water pollution and sewage.



Other harmful gases emitted by industries, and manufacturing units, which are causing depletion of Earth’s ozone, layer

 Deforestation is another major contributor towards global warming. The destruction of tropical forests is throwing millions of tons of carbon dioxide into the atmosphere. These forests are the main source of absorption of carbon dioxide, which we are losing at a great speed each year with increased deforestation. 46

For a long time now the effect of man’s industrialization and technological progress ha s quietly yet continuously eked away at the delicate balance of the planet’s atmosphere and ecosystem, but within the last 30 or so years the place of this damage has markedly accelerated. It is presently estimated that 700 tons of carbon dioxide are pumped into the earth’s atmosphere every second of the day. Carbon dioxide is the chief contributor to the greenhouse gases. It is these greenhouse gases, which cause global warming.

GREEN WARMING – PROPOSED SOLUTION The solution to this problem lies in “Going Green” in our thoughts, behavior and actions. The consumers and corporations need to focus on clean and environment friendly products and services. To elaborate on the “Green” terminology: 1. “Green Product” is non-toxic and is made from recycled material. There is no absolute green product. However, the products, which consume less energy, cause less pollution and are biodegradable, belong to this category. Thus “Green” is a relative term. 2. “Green Service” fulfills the philosophy of sustainable development, improving and maintain the quality of life for people without compromising the environment. 3. “Green washing” is the process of making products and services “Green” in all respects. To make products and services green the businesses need to focus on bringing the green in various aspects such as: SUPPLY CHAIN: Example: McDonald’s is often blamed for polluting the environment because much of their packaging finishes up as roadside waste. It must be remembered that it is the uncaring consumer who chooses to dispose of their waste in an inappropriate fashion. With the intent to cut costs and work on eco-friendly image and 47

practices McDonald’s tried to reduce the amount of material disposed by its stores. McDonalds asked the supplier to do away with the cartons for napkins. The supplier suggested a better way and came up with dimpling pattern on napkins, which enabled the supplier to pack 25% more napkins in one box and reduction in shipping cost accordingly. McDonalds also allied with Environment Defense Fund (EDF) and created a waste reduction plan. It also made a Paper Task Force to focus on paper waste reduction and better solid waste management. Some food chain retailers are working on Green Procurement program to help purchasing officers to buy products and services that have a lower environmental impact than comparable products and services PACKAGING: Packaging is a key element of marketing mix for promoting “Green washing”. It can also be an effective tool to display the “Green” component of the product. Natural Package for a Natural Product, when creating product materials, markets need to remember that a “Green” product is appealing to consumers for its benefits to the environment and for its roots in natural resources. There should be a consistent look for the product package, or materials that appear natural, not glossy or extravagant. “Green” consumers tend to appreciate consistence in package and product. They will appreciate the usage of recycled paper and other environment friendly materials. That will help manufacturers/suppliers gain customer loyalty and product credibility. RAW MATERIAL: This refers to using recycled material or using material, which does not have a negative impact on natural resources like resulting in problems such as deforestation and pollution. Example: Gridcore Systems International – demonstrated the use of Recycled Building Material. The company was looking for an alternative building material in-order to reduce the impact on environment. While researching they discovered space board, a new type of building panel developed by the Forest Products laboratory. Space board can be manufactured from various recycled or agricultural fibers, and due to a

48

honeycomb, the interior design is just as strong as and several times lighter than conventional fiberboard. PRODUCT INNOVATIONS: This refers to either environment friendly or environment efficient products as demonstrated by the following examples. Example: Kodak’s Recyclable Camera- When Kodak created its first disposable camera it also solved the waste disposal problem by initiating a ‘camera take back’ scheme during picture processing. This not only reduced the waste disposable problem, it also saved Kodak the manufacturing costs for new cameras. This made it completely recycled camera. Example: Philips Earthlight Compact Fluorescent Light Bulbs With relentless efforts on research and development the company was successful in producing compact fluorescent light bulbs, which are the most energy efficient bulbs. SERVICES: With increased demand for value-based marketing, there is also growing demand of “Green” services. Global customers are not only interested in cost cutting through outsourcing but are also looking for energy efficient IT operations. Example: ITC Infotech is a good example to understand how to package the services “Green” ITC Infotech is a Bangalore based independent Subsidiary of ITC Ltd. At corporate level ITC is working to establish itself as a carbon free company. The company is working on “Triple Bottom Line” i.e. social, economic and environmental capital. The company is involved in many community driven initiatives. It is one of the 10 companies globally and first one from India to start publishing sustainability report in compliance with G3 guidelines of Global Reporting Initiative. The company is investing in large-scale plantations to wash away its carbon positive image. It is also focusing on water harvesting and working towards zero solid waste by recycling. 36 Cigarette warehouses were converted to make ITC Infotech’s global development campus in the heart of Bangalore. The company has used recycled material and virtualization tools for optimizing energy usage in its data centers. It is also working on digital infrastructure to connect the rural farmers to the Internet using solar panels for 49

power, so that the Indian farmers can get information on crop research and monitor weather trends. The company is using these as a service differentiator and positioning itself as Green service Provide. The corporate image of ITC Ltd. is further enhancing the True Green Image.

PRESENT TREND IN GREEN MARKETING GREEN CODE Generalizes with care. Consumer behavior will not necessarily be consistent across different product types, and particular market segments may respond to certain issues on the green agenda but not others. Remembers, the validity of a piece of market research is not related to the degree to which it supports your preferred option. Explores the context from which market research data comes. Be clear on the nature of the sample used, the questions asked, the way in which responses were recorded and the time and place from which the responses come. Ensures that where market research is crossing international borderlines, that the terminology and interpretation remains consistent. Terms like ‘environment’, ‘green’ and ‘conservation’ do not always translate precisely between languages. 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. Organizations Perceive Environmental Marketing to Be An Opportunity That Can Be Used To Achieve Its Objectives: Firms have realized that consumers prefer products that do not harm the natural environment as also the human health. Firms marketing such green products are preferred over the others not doing so and thus develop a competitive advantage, simultaneously meeting their business objectives. 50

Organizations Believe They Have A Moral Obligation to Be More Socially Responsible: This is in keeping with the philosophy of CSR which has been successfully adopted by many business houses to improve their corporate image. Firms in this situation can take two approaches: 

Use the fact that they are environmentally responsible as a marketing tool.



Become responsible without prompting this fact.

Governmental Bodies Are Forcing Firms to Become More Responsible: In most cases the government forces the firm to adopt policy which protects the interests of the consumers. It does so in following ways: 

Reduce production of harmful goods or by –products



Modify consumer and industry’s use and /or consumption of harmful goods;



Ensure that all types of consumers have the ability to evaluate the environmental composition of goods.

Competitors’ Environmental Activities Pressure Firms to Change Their Environmental Marketing Activities: In order to get even with competitors, claim to being environmentally friendly, firms change over to green marketing. Result is green marketing percolates entire industry. Cost Factors Associated with Waste Disposal or Reductions in Material Usage Forces Firms to Modify Their Behavior With cost cutting becoming part of the strategy of the firms it adopts green marketing in relation to these activities. It may pursue these as follows: 

A Firm develops a technology for reducing waste and sells it to other firms.



A waste recycling or removal industry develops.

51

INITIATIVES TAKEN BY GOVERNMENT DEVELOPMENT OF ISO 14000 SERIES OF STANDARDS. ISO has been developed to help any company in any country to meet the goal of sustainable development and environmental friendliness. The ISO 14000 family of standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were published as an official document in 1996. The ISO series aims to provide guidance for developing a comprehensive approach to environmental management and for standardizing some key environmental tools of analysis such as labeling and life cycle assessment. ECO-LABELING INITIATIVES Eco label provide information regarding the environmental performance of products. The objective of eco-labeling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers. In India the government has introduced the eco-mark scheme since 1981. The objectives of the scheme are: 

To provide incentives to manufacturers and importers to reduce the adverse environmental impact of products.



To reward genuine initiatives by companies to reduce adverse impact of environmental impact of products.



To assist consumers to become environmentally responsible in their daily lives by providing them information to take account of environmental factors in their daily lives.



To encourage citizens to purchase products which have less environmental impact.

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

They cause substantially less pollution than comparable products in production, `usage and disposal. 52



They are recycled and/or recyclable whereas comparable products are not.



They contribute to a reduction on adverse environmental health consequences.



They comply with laws, standards and regulations pertaining to the environment.



Their price is not exorbitantly higher than comparable products.

ECO-MARK IN INDIA Under the concept, products which are less harmful to the environment or have benign impact on environment through the various stages of development-manufacture, packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the logo for Eco-Mark scheme in India. The familiar earthen pot has renewable resource like earth, does not produce hazardous waste and consume little energy in making. As a symbol it puts across its environmental message. Its image has the ability to reach people and help to promote a greater awareness of the need to be kind to the environment. The logo EcoMark scheme signifies that the product which carries it does least damage to the environment.

FUTURE GROWTH OF GREEN MARKETING There are many lessons to be learned to avoid green marketing myopia, the short version of all this is that effective green marketing requires applying good marketing principles to make green products desirable for consumers. The question that remains, however, is, what is green 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 POSITIONING:

 Design environmental products to perform as well as (or better than) alternatives.  Promote and deliver the consumer desired value of environmental products and target relevant consumer market segments. 53

 Broaden mainstream appeal by bundling consumer desired value into environmental products. CALIBRATION OF CONSUMER KNOWLEDGE:

 Educate consumers with marketing messages that connect environmental attributes with desired consumer value.

 Frame environmental product attributes as “solutions” for consumer needs.  Create engaging and educational internet sites about environmental products desired consumer value. CREDIBILITY OF PRODUCT CLAIMS:

 Employ environmental product and consumer benefit claims that are specific and meaningful.

 Procure product endorsements or eco-certifications from trustworthy third parties and educate consumers about the meaning behind those endorsements and eco-certifications.

 Encourage consumer evangelism via consumers social and internet communication network with compelling, interesting and entertaining information about environmental products.

54

CHAPTER 3: RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the reach problem. It may be understood as a science of studying how research is done scientifically. Research means a search for knowledge or gain some new knowledge and methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. A Research methodology has a specified framework for collecting the data in an effective manner. Research methodology means "defining a problem, defining the research objectives, developing the research plan, collecting the information, analyzing the information and presentation of findings." Such framework is called "Research Design".

BENEFITS OF MARKET RESEARCH Information gained through marketing research isn't just "nice to know." It's solid information that can guide your most important strategic business decision. Market research is effective when the findings or conclusions you reach have a value that exceeds the cost of the research itself a) Market research guides your communication with current and potential Customers- Once you have good research, you should be able to formulate more effective and targeted marketing campaigns that speak directly to the people you're trying to reach in a way that interests them b) Market research helps you identify opportunities in the market place c) Market research minimizes the risk of doing business- Instead of identifying opportunities, the results of some market research may indicate that you should not pursue a planned course of action d) Market research helps you evaluate your success- Information gathered through market research helps you to determine if you're reaching your goals. In the above example, if your product's target market is women between the ages of 35 and 50, then you're making progress toward your goal

55

PROCESS Market research, like other components of marketing such as advertising, can be quite simple or very complex. You might conduct simple market research such as including a questionnaire in your customer bills to gather demographic information about your customers. On the more complex side, you might engage a professional market research firm to conduct primary research to aid you in developing a marketing strategy to launch a new product. The research process that was followed by me consisting following steps: DEFINING THE PROBLEM What is the consumer perception towards the insurance products and especially for Max life products? DEVELOPING THE RESEARCH PLAN The development of research plan has following steps 1. Data source 2. Research approach 3. Type of Research Design 4. Research instrument 5. Sampling plan i) Population size ii) Sample size iii)Contact methods 6. Questionnaire Design COLLECTION OF DATA ANALYSIS AND INTERPRETATION OF DATA

56

RESEARCH DESIGN A research design is the arrangement of condition for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with the economy in procedure. Infact, the research design is the conceptual structure with in which research is conducted, it constitutes the blueprint for the collection, measurement and analysis of data.

OBJECTIVES OF RESEARCH 

To understand the consumer perception about green marketing concepts and their products



To understand the buying behavior of consumers related to green marketing



To understand the attitude of consumers towards green branding

NEED OF THE PROJECT 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. 57

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 biodegradable, 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 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 macroenvironment 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.

58

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 trickledown 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.

RESEARCH METHODOLOGY ADOPTED 

Type of research: Descriptive research



Element: Consumer



Sampling size: 120- respondents



Data source: Primary & Secondary data



Research instrument: Questionnaire was used to extract the information from the respondents



Questions were: Close ended and Multiple choice



Sampling technique: Random sampling

DATA ANALYSIS Tools of Analysis in collecting data: 

Tables.



Pie charts.



Bar diagrams



Percentage methods has been used to analyze the data

LIMITATIONS OF THE STUDY 

Demographic Constraints - will be a main issue of concern. This is due to the reason that the data collection will be restricted from East Delhi 59



Unawareness - people are unaware of the i.e. Green marketing



Time Constraint - the time duration for doing the complete research on green marketing is very limited. Green Marketing a broad topic which requires an indepth research and analysis. Due to the time period given for research is very limited

60

CHAPTER 4: DATA ANALYSIS & INTERPRETATION

Q.1) Gender of respondent: Gender Respondents Percentage Male

48

0.60000

Female

32

0.40000

Table:4.1

60 48

50 40

32

30 20 10 0 Male

Female Gender

Fig:4.1 Interpretation: The above bar graph indicates that 60% of respondents were male and 40% were female. Q.2) Age of the respondent: AGE

Respondents

Percentage

Under-25

57

0.71

25-35

15

0.19

35-45

4

0.05

45&above

4

0.05

Table:4.2 61

Age of Respondents 57

15

Under-25

25-35

4

4

35-45

45&above

Fig:4.2 Interpretation: The above figure shows the demographic information about the respondents which reveals that 71% of the respondents were under the age group of 25, 19% of the respondents come under 25-35,5% of respondents were under the group of 35-45 and 5% of respondents were above 45 years of age. Q.3) Are you aware of the term “Green Marketing”?

Response

Respondents

Percentage

YES

52

0.65

NO

28

0.35

TOTAL

80

1.00

Table4.3

62

Awareness of Green Marketing 35%

YES NO

65%

Fig4.3 Interpretation: The above bar graph indicates that 65% of respondents are familiar with the term Green Marketing. Q.4) Do you consider the environmental aspects of the products before buying them?

Source

Respondents Percentage

YES

22

0.28

NO

15

0.19

SOMETIMES

43

0.54

Table4.4

Frequency 43

22 15

YES

NO

Fig4.4 63

SOMETIMES

Interpretation: The above graph indicates that only 54% i.e. the majority of respondents consider the environmental aspect sometimes. And, only 22% consider the environmental aspect of the product while buying it.

Q.5) Do you think that green marketing and advertising are good sources of information about green products and services?

Response

Respondents

Percentage

YES

48

0.60

NO

10

0.13

SOMETIMES

22

0.28

Table4.5 50 45 40 35 30 25 20 15 10 5 0

Green Marketing and Advertising are good sources of information

Fig4.5

Interpretation: The above graph indicates that only 60% i.e. the majority of respondents consider green marketing and advertising as good sources of information for green products and services. And, only 13% do not consider it. 64

Q.6) Do you think that Green Marketing activities are good at addressing environmental issues?

RESPONSE

Frequency

PERCENTAGE

YES

56

0.70

NO

13

0.16

MAY BE

11

0.14

Table4.6

MAY BE

11

NO

13

YES

56 0

10

20

30

40

50

60

Frequency

Fig4.6 Interpretation: The above graph indicates that 70% of the respondents feel that Green Marketing activities are good at addressing environmental issues while 16% respondents do not. Q.7) If green features increase the price of the product, are you willing to pay more? Source

Respondents

Percentage

YES

38

0.475

NO

20

0.25

22

0.275

A LITTLE

65

Table4.7

Willing to pay more? 28%

YES 47%

NO

25%

A LITTLE

Fig4.7

Interpretation: The above graph indicates that 48% of the respondents were willing to pay more for the benefit of the environment while 25% respondents do not. If Yes, a) What is the main reason that makes you willing to pay more for the “green” products?

Sources

Respondents

Percentages

Enhance a quality of life

12

0.15

Environmental protection responsibility

26

0.33

Potential increase of product value

0

0.00

Getting high level of satisfaction

0

0.00

Table4.7a

66

Reason for willing to pay more 30 25 20 15 10 5 0

26 12

0

0

Enhance a Environmental Potential Getting high quality of life protection increase of level of responsibility product value satisfaction

Fig4.7a If No, b) What is the main reason that makes you not willing to pay more for the “green” products?

Sources

Respondents Percentage

Cannot see the benefit of those features

16

0.2

Product cost is too high, cannot afford them

4

0.05

Producers only claim, actually it is not

0

0

0

0

Environmental issues are gimmick for commercial only Table4.7b

67

Reason for not willing to pay more 20 15 10 5 0

16 4

0

0

Cannot see the Product cost is Producers only Environmental benefit of those too high, cannot claim, actually it issues are features afford them is not gimmick for commercial only

Fig4.7b Interpretation: The above graph indicates that 33% of the respondents were willing to pay more for the protection of the environment while 20% respondents do not pay more because they cannot see the benefits of those features & 27% were still willing to pay a little. Q.8) Do you think Green Marketing activities results in better product quality? Source

Respondents Percentage

YES

48

0.6

NO

20

0.25

MAY BE

12

0.15

Table4.8

50 40 30 20 10 0

Response

YES

NO

MAY BE

Fig4.8 68

Interpretation: The above graph indicates that 60% of the respondents think that Green Marketing activities results in better product quality. Q.9) Why do you think green marketing is in headlines nowadays? Sources

Respondents

Percentages

Consumers are being aware of green products

39

0.49

Company increasing its competitive edge

18

0.23

Company’s attempt to address society’s new concern

23

0.29

Table4.9

Reasons for Green Marketing in Headlines Company’s attempt to address society’s new concern

23

Company increasing its competitive edge

18

Consumers are being aware of green products

39 0

10

20

30

40

50

Fig4.9 Interpretation: The above graph indicates that 49% of the respondents are aware of the green products & 23% of the respondents think that it will increases the co’s competitive edge. Q.10) Do you think companies that focus on environmental concerns persuade consumers to buy products? Source

Response Percentage

YES

45

0.5625

NO

26

0.325

MAY

9

0.1125

69

BE Table4.10

Frequency 50 40

45

30 26

20 10

9 0 YES

NO

MAY BE

Fig4.10 Interpretation: The above graph indicates that the respondents the company’s initiative towards environment do influence the consumers to buy product, 57% of respondents agree to it.

70

CHAPTER 5: FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS Sources

Percentages

Mean

1) No. of Male and Female

60% is male & 40% is female

41.6

2) Awareness of the term

65% of respondents say YES

43.6

“Green Marketing”

and 35% of respondents say NO

3) Consider the environmental

54% consider the

aspects of the products before

environmental aspect

buying them?

sometimes else 19% did not

32.23

consider the environmental aspect before buying. 4) Green marketing and

60% consider it is a good

advertising are a good source

source but 13% does not

of information about green

consider it

36.1

products and services? 5) Green Marketing activities

70% feel that Green

are good at addressing

Marketing activities are good

environmental issues?

at addressing environmental

42.825

issues while 16% did not. 6) If green features increase

47% agreed to pay more &

the price of the product, are

25% did not willing to pay

you willing to pay more?

more

7) Green Marketing activities

60% of people think that

results in better product

Green Marketing activities

quality?

results in better product quality, whereas 25% did not think so.

71

29.1

35.6

8) Do you think companies

57% of the people thinks that

that focus on environmental

the company’s initiative

concerns persuade consumers

towards environment do

to buy products?

34.775

influence the consumers to buy product, while 32% don’t agreed upon.

RECOMMENDATIONS Finite resources such as oil, metal, and even fresh water will become scarcer and more expensive. If businesses do not become more efficient in using these resources it will have a huge impact on the bottom line. Investing in Green Products thus changes from ‘beyond doing good’ to ultimately ‘good business sense’. Thus, they should: 

Invest in research and create clean and environment friendly products.



Clean energy sources such as solar, wind, bio-fuels and hydra power.



Water harvesting.



Recycle at every level.



Move towards paperless office.



Educate masses of the environment issues because they are going to be the bulk consumers.



Socially responsible investing in environment driven projects.



Plant more trees.

The corporations must rethink: 

Their raw material and procurement strategies.



They should develop new products



They should redesign existing products and service.



They should realize that pollution prevention can be a cost saving activity



They should steer their product and packaging designs to use less material.

72

CONCLUSION As the demand for green products undoubtedly exists, Green Marketing provides an opportunity to the companies to increase their market-share by introducing eco-friendly products. Stricter environmental regulations across the world, growing consumer preference for eco-friendly companies, and the inherent cost advantages in lowering toxic waste, are encouraging industries big and 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 minimum impact on the environment, but ultimately, it’s the consumer who is 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 another will benefit the environment. Consumer education results in their empowerment. Empowered consumers choose environmentally preferable products when all else is equal

BIBLIOGRAPHY BOOKS & JOURNALS 

The Age of Persuasion (January 8, 2010). "Season 5: It's Not Easy Being Green: Green Marketing". CBC Radio. Retrieved 8 January 2011.



Belz F., Peattie K. (2009): Sustainability Marketing: A Global Perspective. John Wiley & Sons



Sharma D.D. (2008), “Marketing Research: Principle Application & Cases” N. Delhi,



Sultan Chand & Sons Kothari C.R. (2004), “Research Methodology Methods and Techniques”, N.

73



Delhi, New Age International Publication Rajagpalan R. (2003), “Environment Studies”, N. Delhi, Himalayan Publishing



House Green, Paul, Tull (2002) “Research for Marketing Decisions”, N. Delhi,



Prentice-Hall of India Kotler P. (1999), “Marketing Management”, N. Delhi, Prentice-Hall of India Certo, S.C. (1997), Modern Management, Englewood Cliffs, Prentice-Hall



Kotler Philips & G. Armstrong. Principles of marketing. New Delhi, Prentice Hall.



Richa Agrawal, Green Marketing: An Emerging Trend (PJMR, Vol. 5, April 2010)



Excerpts from the survey report conducted by BT-TERI. M

WEBSITES 

www.greenmarketingcorner.com



www.greenpeace.org



http://www.businessworld.in



http://www.greenmarketing.com/green_marketing_book



http://www.sustainablemarketing.com/



http://www.onpoint-marketing.com/green-marketing.htm

74