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Generally terms like phosphate free, recyclable, refillable, ozone friendly and
environment friendly are most of the things consumers often associated with green
marketing. Green marketing is also called environmental marketing/ecological
marketing. As resources are limited and human wants are unlimited, it is important for
the marketers to utilize the resources efficiently without waste as well as to achieve
the organization's objective. So green marketing is inevitable. There is growing
interest among the consumers all over the world regarding the protection of the
environment. Worldwide evidence indicates people are concerned about the
environment and are changing their behaviour. As a result of this, green marketing has
emerged which speaks for the growing market for sustainable and socially responsible
products and services. Now this has become new mantra for marketers to satisfy the
needs of consumers and earn better profits.
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1.1 EVOLUTION OF GREEN MARKETING
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7. Products that will not be tested on animals.
8. Products that have eco-friendly packaging i.e. reusable, refillable containers etc
While looking through the literature there are several suggested reasons for firms
increased use of Green Marketing. Five possible reasons cited are:
3. Governmental bodies are forcing firms to become more responsible [NAAG, 1990;]
5. Cost factors associated with waste disposal or reductions in material usage forces
firms to modify their behavior [Azzone and Manzini,1994;].
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for example, the ban of plastic bags, prohibition of smoking in public areas,
etc.
Competitive Pressure Another major force in the environmental marketing area
has been firms' desire to maintain their competitive position. In many cases
firms observe competitors promoting their environmental behaviors and
attempt to emulate this behavior. In some instances this competitive pressure
has caused an entire industry to modify and thus reduce its detrimental
environmental behavior.
Cost Reduction of harmful waste may lead to substantial cost savings.
Sometimes, many firms develop a symbiotic relationship whereby the waste
generated by one company is used by another as a cost-effective raw material.
Know your Customer: Make sure that the consumer is aware of and concerned
about the issues that your product attempts to address.
Educating your customers: It is not just a matter of letting people know,
whatever you're doing is to protect the environment, but also a matter of letting
them know why it matters. Being Genuine & Transparent: means that a) You
are actually doing what you claim to be doing in your green marketing
campaign and b) The rest of your business policies are consistent with
whatever you are doing that's environment friendly.
Reassure the Buyer: Consumers must be made to believe that the product
performs the job, in this firm should not forgot product quality in the name of
the environment.
Consider Your Pricing: If you are charging a premium for your product and
many environmentally preferable products cost more due to economies of scale
and use of higher-quality ingredients make sure those consumers can afford the
premium and feel it's worth.
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1.5 THE FOUR P’S OF GREEN MARKETING:
1.5.1 PRODUCT
Products that can be recycled or reused. Efficient products, which save water, energy
or gasoline, save money and reduce environmental impact.
Organic products — many consumers are prepared to pay a premium for organic
products, which offer promise of quality. Organic butchers, for example, promote the
added qualities such as taste and tenderness.
A service that rents or loans products –such as toy libraries. Certified products, which
meet or exceed
1.5.2 PRICE
Pricing is a critical element of the marketing mix. Most customers are prepared to pay
a premium if there is a perception of additional product value. This value may be
improved performance, function, design, visual appeal or taste. Environmental
benefits are usually an added bonus but will often be the deciding factor between
products of equal value and quality. Environmentally responsible products, however,
are often less expensive when product life cycle costs are taken into consideration, for
example fuel-efficient vehicles, water-efficient printing and non-hazardous products.
1.5.3 PLACE
The choice of where and when to make a product available has a significant impact
on the customers being attracted. Very few customers go out of their way to buy green
products merely for the sake of it. Marketers looking to successfully introduce new
green products should, in most cases, position them broadly in the market place so
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they are not just appealing to a small green niche market. The location must also be
consistent with the image which a company wants to project. The location must
differentiate a company from its competitors. This can be achieved by in-store
promotions and visually appealing displays or using recycled materials to emphasize
the environmental and other benefits.
1.5.4 PROMOTION
Promoting products and services to target markets includes paid advertising, public
relations, sales promotions, direct marketing and on-site promotions. Smart green
marketers will be able to reinforce environmental credibility by using sustainable
marketing and communications tools and practices. For example, many companies in
the financial industry are providing electronic statements by email, e-marketing is
rapidly replacing more traditional marketing methods, and printed materials can be
produced using recycled materials and efficient processes, such as waterless printing.
Retailers, for example, are recognizing the value of alliances with other companies,
environmental groups and research organizations when promoting their environmental
commitment. To reduce the use of plastic bags and promote their green commitment,
some retailers sell shopping bags, under the banner of the Go Green Environment
Fund. The key to successful green marketing is credibility. Never overstate
environmental claims or establish unrealistic expectations, and communicate simply
and through sources that people trust. Promote your green credentials and
achievements. Publicize stories of the company a environmental awards programs to
profile environmental credentials to customers and stakeholders.
Although a large number of firms are practicing green marketing, it is not an easy job
as there are a number of problems which need to be addressed while implementing
Green marketing. The major challenges which Green marketing have to be faced are:
1. 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
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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.
4. Sustainability- Initially the profits are very low since renewable and recyclable
products and green technologies are more expensive. Green marketing will be
successful only in long run. Hence the business needs to plan for long term rather than
short term strategy and prepare for the same, at the same time it should avoid falling
into lure of unethical practices to make profits in short term.
5. Non Cooperation- The firms practicing Green marketing have to strive hard in
convincing the stakeholders and many a times it may fail to convince them about the
long term benefits of Green marketing as compared to short term expenses.
6. Avoiding Green Myopia- Green marketing must satisfy two objectives: improved
environmental quality and customer satisfaction. Misjudging either or
overemphasizing the former at the expense of the latter can be termed green marketing
myopia.
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Examples of green marketing in Indian companies
Wipro and Infosys: Wipro and Infosys’s are going green Wipro launched desktops,
laptops are known as Wipro green wares. It was the first company in India who developed
eco-sustainability in the form of energy, water efficiency and waste management. Wipro
are actively seeking to become a very green company. Wipro has taken
various initiatives to be green and the main objective of this is to become a carbon
natural, water positive and energy saving in business organization. Wipro designs
products and solutions that can minimize hazardous waste. For the purpose of enhancing
ecologicalsustainability, WIPRO is continuously offering green products.
Wipro has adopted a number of steps for ecological-sustainability at its corporate level
also. Wipro wants to become fully carbon natural and to achieve zero carbon emission by
balancing the carbon released by the firm with equalling quantity off set. Wipro, Infosys
reduced it per capita consumption of electricity and procured renewable energy. In future,
every new building on campus follows integrated design methods for the purpose
maximize the day light and reduce heat. It will construct energy efficient building, at
present also, in Wipro 18 building are certified to the international green standard. It
replaced order office equipment with new energy saving equipment. Wipro and Infosys
also installed solar panel also in their campus. We know that solar power is 70% cheaper
than power generated by diesel. Solar energy has no adverse impact on our surrounding
also. Products manufactured by these firms are less harmful to environment.
Tata Metaliks Limited: This deals in mining and metal sector. It has given a green view
to reduce its carbon foot prints. The objective of Tata Metaliks Limited is to increase the
green cover through plantation, ground water, power generation and use of natural
fertilizers etc. The major green initiatives of this company is related to water utilization. It
depends entirely on the ground water or no municipal supply and it will perform a
complete water neutral operations.
Suzlon Energy: Suzlon energy also going green. Suzlon is the world’s 4th largest wind
power company among the greenest and best company in India. It is a renewable
company manufacturer and produce wind Turbines, now Suzlon 30% power of renewable
energy in India. It meets the need of present without compromising the capacity of future
generation to meet their needs. Its total revenue was $ 4.18 billion in 2011.
Electronics sector: The consumer electronics sector provides room for using green
marketing to attract new customers. One example of this is HP's promise to cut its global
energy use 20 percent by the year 2010. To accomplish this reduction below 2005 levels,
The Hewlett- Packard Company announced plans to deliver energy-efficient products and
services and institute energy-efficient operating practices in its facilities worldwide.
Introduction of CNG in Delhi: New Delhi, capital of India, was being polluted at a very
fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a
directive was issued to completely adopt CNG in all public transport systems to curb
pollution.
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Maruti Udyog Ltd: Greening of Supply Chain: The Company has remained ahead of
regulatory requirements in pursuit of environment protection and energy conservation at
its manufacturing facilities, and in development of products that use fewer natural
resources and are environment friendly.
The company credited the 'Just-in-Time' philosophy adopted and internalized by the
employees as the prime reason that helped to excel in this direction. The company has
been promoting 3R since its inception. As a result the company has not only been able to
recycle 100% of treated waste water but also reduced fresh water consumption. The
company has implemented rain water harvesting to recharge the aquifers. Also, recyclable
packing for bought out components is being actively promoted.
OBJECTIVES OF STUDY
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LITERATURE REVIEW
Prothero, A. (1998) introduced several papers discussed in the July 1998 issue
of 'Journal of Marketing Management' focusing on green marketing. This
included a citation of the need to review existing literature on green marketing,
an empirical study of United States and Australian marketing managers, a
description of what a green alliance look like in practice in Great Britain,
ecotourism and definitions of green marketing.
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Karna, J., Hansen, E. & Juslin, H. (2003) interpreted that proactive
marketers are the most genuine group in implementing environmental
marketing voluntarily and seeking competitive advantage through
environmental friendliness. The results also give evidence that green values,
environmental marketing strategies, structures and functions are logically
connected to each other as hypothesized according to the model of
environmental marketing used to guide this study
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PROBLEM STATEMENT
CHALLENGES FACED BY GREEN MARKETING COMPANIES IN
INDIA
Though we find the awareness about the need to buy green and environment friendly
products growing in India yet there are various challenges facing the country to
actually realize and apply the green marketing concept successfully.
The biggest challenge and obstacle faced in India is that not many people are
willing to spend an additional amount to buy green products. Indian consumers
are price sensitive. They are not willing to spend more for products that are
good for the environment. A segment of consumers sees no personal gain in
buying eco-friendly products and hence are not willing to shell out extra
amounts for something which is not for their immediate personal benefit.
Another factor for less growth of green products is that many consumers in
India believe that there are no products such as “green products” rather these
are merely selling tactics adopted by the companies to augment their sales and
revenue.
Also, the past experiences of the consumers in India have been rough in respect
of green products, for the reason that the producers and manufacturers made
use of the growing awareness of the concept of green marketing in selling their
same old product with same ingredients/features etc. by merely employing new
strategies of promoting by naming it a “green product”. Green washing is the
term used when producers, manufacturers or marketers make false environment
friendly claims for their product and deliberately mislead their consumers by
incorrectly endorsing and promoting its environmental benefits. This again
makes consumer averse of buying green products as they are not able to
differentiate between the real and the fake claims made by the producers in
respects of the products marketed as environment friendly.
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METHODS TO OVERCOME THE CHALLENGES
We find various challenges being faced in the Indian markets for the adoption of Green
Products. In accordance to the Indian buying habits and requirements there is a need to
develop such strategies which promote green products and help to protect the
environment. In this part the author tries to find out ways to overcome the challenges
faced in the area of Green Marketing.
Cost Effective Products: One of the major characteristics that can be attributed to
the Indian consumers is that they are priced responsive. Indian consumers always
intend to buy good quality product at a reasonable price. They are not willing to
pay extra amount for a product having no evidence or differentiable worth.
Resultantly, the manufacturers should produce green products by using best
possible resources, keeping in mind the cost effectiveness of the product. The
reduced costs can thus be passed on to the consumers. This strategy would
encourage consumers to go green in their buying and the environmental needs are
also met, simultaneously. This business model can be a win-win situation for all
the stakeholders. Consumers get good quality products at cheaper prices, the
environment gets protected and the manufacturers also earn more profit due to
surge in demand of eco-friendly goods at a lower price.
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Standards Body of India that has developed various standards, product
certifications, eco mark labeling, quality management certification, lab testing etc
to ensure production of environment friendly goods. Another statutory body, the
Central Pollution Control Board (Ministry of Environment & Forests) Government
of India, also develops environment standards like National Ambient Air Quality
Standard, Industry Specific Standard, Noise Standard, Vehicular exhausts etc.
Though standards on environment exist in India but its observance in the right
manner is a big question. Sham certification is prevalent when it appears only on
papers and actual implementation of the standards never takes place. This
suggests, more transparency and reliability is required to win the consumer’s
confidence. It can be best achieved if the organisations themselves voluntarily
decide to comply with the environmental standards, so as to build consumer’s trust
and create customer loyalty or if the stringent laws and regulations are enforced
against the deceivers. Controlling the misleading labeling practices and improving
the actual adherence of the environment standard can help convince the consumers
regarding the authenticity of the green products. (Bureau of Indian Standards)
(Central Pollution Control Board)
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increase in the demand of the star rated appliances. This case study of the star
ratings enhances our belief as to how the Indian consumers are more willing to
accept green products with detailed analysis of their pecuniary benefits.
RESEARCH METHODOLOGY
RESEARCH DESIGN:
In this Research, exploratory method or consumer survey method is used. The reason
to use exploratory method is that, it helps to develop concepts more clearly,
establish priorities, and improve the final research design.
DATA COLLECTION:
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DATA ANALYSIS
The data analysis of the responses collected from the questionnaire are as follows:
FIG 1: This figure shows us the age group of the respondents. Maximum number of
respondents belong to the 21-30 years old age category. On the other hand, only 21
respondents belong to the 45 & above year’s age category. This shows that mostly,
young adults were surveyed for the questionnaire.
FIG 2: This figure shows us the occupation of the respondents. Maximum people
surveyed were found to be employed. Students were the next highest in number after
the employed people.
FIG 3: This figure shows us the awareness among respondents. The Pie Chart shows
that 58% of the people were aware of the Green Marketing concept. While 22%
people were not aware.
FIG 4: The Bar graph shows the number of people who have responded, who believe
that environmentally friendly products are worth the money. 43 people said yes they
are worth the money spent it. While a major chunk of people said that, it is not worth
the money.
FIG 5: This Pie Chart shows the responses of consumers willing to purchase greener
products despite an increase in the price of the product. 65% of respondents said NO
they would not purchase a green product if its prices increased. We can thus infer, that
prices play an important role in the purchasing decisions of the product.
FIG 6: We try to find a reason for consumers not willing to pay a higher price for
greener products. The pie chart shows myriad of responses. 20% respondents were not
aware, while, 20% had misconceptions about green products. But, the maximum
people, about 38% believe that greener products are expensive.
FIG 7: The Bar graph shows that there are around 74 people, among those surveyed,
who would be inclined to a company that is greener, over a competitor who is not.
FIG 8: The pie chart shows that 56% of the respondents believed that there is not
enough information about the green features on the product which we are about to
buy. On the other hand, 44% people believed that yes, green information about the
product is available.
FIG 9: This Pie Chart shows that why consumers believed that Green Marketing is
trending? 60% respondents believed that consumers have become more aware about
Green products.
FIG 10: This Pie Chart shows the purchasing behaviour of consumers and what
marketing elements influence the consumers while buying a green product. 38% of the
respondents were lured by the price and packaging of the product. While 26%
respondents were influenced by the promotion tools and techniques employed by the
company.
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CONCLUSION
From the foregoing, it may conclude that Green Marketing is on its developmental stage
in India. The market is growing as the consumers are getting more and more aware and
sensitive to the needs of the environment protection. Certain challenges exist in Indian
markets with respect to green products but the producers are coming up with new
strategies and ways to overcome these challenges. Further, it can be said that great
potential exists for green products in Indian markets, provided the producer understands
the buying behaviour and attributes of the Indian consumers.
Many organizations want to turn to green, as an increasing number of consumers' want to
associate themselves with environment friendly products. Alongside, one also witnesses
confusion among the consumers regarding the products. In particular, one often finds
distrust regarding thecredibilityof green products. Therefore, to ensure consumer
confidence, marketers of green products need to be much more transparent, and refrain
from breaching any law or standards relating to products or business practices.
Green marketing should not neglect the economic aspect of marketing. Marketers need to
understand the implications of green marketing. If we think customers are not concerned
about environmental issues or will not pay a premium for products that are more eco-
responsible, think again. We must find an opportunity to enhance our product's
performance and strengthen our customer's loyalty and command a higher price.
From the business point of view because a clever marketer is one who not only convinces
the consumer, but also involves the consumer in marketing his product. Green marketing
should not be considered as just one more approach to marketing, but has to be pursued
with much greater vigor, as it has an environmental and social dimension to it. With the
threat of global warming looming large, it is extremely important that green marketing
becomes the norm rather than an exception or just a fad. Recycling of paper, metals,
plastics, etc., in a safe and environmentally harmless manner should become much more
systematized and universal. It has to become the general norm to use energy efficient
lamps and other electrical goods.
Indian market Customers too are ready to pay premium price for green products. One
thing that is being reiterated is that the current consumption levels are too high and are
unsustainable. Therefore there is a need for green marketing and a need for a shift in the
consumer‘s behavior and attitude towards more environment friendly life styles.
Ultimately green marketing requires that consumers want a cleaner environment and are
willing to pay for it, possibly through higher priced goods, modified individual lifestyles,
or even governmental intervention. Until this occurs it will be difficult for firms alone to
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lead the green marketing revolution. An environmental committed organization may not
only produce goods that have reduced their detrimental impact on the environment, they
may also be able to pressure their suppliers to behave in a more environmentally
responsible fashion. Final consumers and industrial buyers also have the ability to
pressure organizations to integrate the environment into their corporate culture and thus
ensure all organizations minimize the detrimental environmental impact of their activities.
SUGGESTED SOLUTION
Green marketing is still in its infancy and a lot of research is to be done on green
marketing to fully explore its potential. Think of a refrigerator for example. While we
may have had to be convinced in the 1950s to buy a refrigerator, we would have
wanted the great white box to look cool in the 1970s, but in today's uncertain world,
we might ask ourselves about the impact of the chlorofluorocarbons (CFCs) that our
refrigerator is emitting and demand a more environment friendly refrigerator. So, if
today's successful marketing is about appealing to personal values and delivering
consumer empowerment, then surely the time is right to inject sustainable
development into the marketing mix to help address some of the gritty issues currently
facing our planet. Green marketing methods produce highly effective results. They
apply all of the steps you need to cut costs, raise response rates and increase growth in
the most important marketing metric we are all held accountable for-the bottom line.
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BIBLIOGRAPHY
Information on this topic has been taken from the following sources:
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ANNEXURE
The Data analysis & Summary Findings have been done through the answers
obtained from the following questionnaire.
Questions:
1) What is your age group?
o 21-30 years
o 31-45 years
o 45 and above
6) What is the main reason for you to not want to pay more for green products?
o Cannot see the benefit/ does not affect me
o Price is too high
o Feel that green products do not make a genuine difference to
the environment
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o Green misconceptions
o Not aware about the positive impacts
7) Would you be pulled towards a company that is green over a competitor that
is not?
o Yes
o No
o May be
8) Do you think there is enough information about “Green” features when you
buy the product?
o Yes
o No
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GRAPHS BASED ON THE QUESTIONAIRRE
Fig 1
Qn-1: Age Group
60
50
40
30
20
10
54 25 21
0
21-30 years 30-45 years 45 & above
Age Group
Fig 2
Qn-20: Occupation
45
40
35
30
25
20
15
10
5
39 42 11 8
0
Student Employed Self- Employed Unemplyed
Occupation
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Fig 3
Qn-3
6
15
22 58
Fig 4
Qn: 4
60
50
40
30
20
10
43 50 7
0
Yes No Unsure
No. of ppl
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Fig 5
Qn: 5
30
65
Yes No Maybe
Fig 6
Qn: 6
Cannot see benefit
not aware 10%
20%
No Diff. to envt
12%
Cannot see benefit Price is too high No Diff. to envt misconceptions not aware
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Fig 7
Qn:7
80
70
60
50
40
30
20
10
74 18 8
0
Yes No Maybe
No of ppl
Fig 8
Qn: 8
Yes
44%
No
56%
Yes No
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Fig 9
Qn: 9- Why Green Marketing is Trending?
Companies attempt to
new concern
10%
Companies increasing
comp. adv
30%
Consumers becoming
aware
60%
Consumers becoming aware Companies increasing comp. adv Companies attempt to new concern
Fig 10
Qn:10-Purchasing behaviour of Green Products
Place
All of the above 8%
16%
Product
12%
Place Price & Package Product Promotion All of the above
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