Green Marketing: Better Late Than Never

-- Ambika Lal
Faculty Member, INC Ghaziabad.
The author can be reached at
lal.ambika@gmail.com

Green marketing is the need of the hour when we are seeing environmental
degradation every single day. Although eco-friendly products are slightly expensive
compared to their traditional counterparts, they offer many advantages. While the
market for green products is definitely on the increase, the "green marketing"
campaign is yet to achieve a critical mass. There is an urgent need for both marketers
and consumers to appreciate the importance of green products.

We are not here to sell the consumer on saving the planet. This is about `saving me'
we are the next endangered species on the list.

-- Jacquelyn Ottman
Author of "Green Marketing: Opportunity for Innovation"

Green marketing can be de- fined as the marketing of products that are regarded to
be safe for the environment. The quality of our environment is deteriorating with each
passing day. It has become a challenge for all human beings to safeguard Mother
Earth and green marketing is a small endeavor in this direction. Green marketing can
serve as an effective tool for encouraging the sale of a product by using its ecological
credentials.

It all began with the perception that many consumers will choose products that do not
damage the environment over less environment-friendly products, even if they cost
more. Green marketing incorporates a wide range of activities to meet ecological
standards. These include: product modification, changes in the production process,
packaging changes as well as alterations in advertising, so as to have minimum
detrimental effect on the environment. In the long run, green marketing benefits one
and all—the environment, businesses and human beings.

Green marketing is also known as environmental marketing or ecological marketing. It

includes marketing of products that are phosphate-free, replenishable, eco-friendly,
ozone-friendly and recyclable. Consumers spend billions of dollars on buying goods
and services every year, many of which harm the environment by way of how they are
harvested, made or used. The drive is on to motivate consumers to adopt
environmentally safe alternatives, while encouraging manufacturers to develop more
eco-friendly products by offering incentives to them.

It would be incorrect to state that the concept of green marketing originated quite
recently. It has been in existence since the first Earth Day in 1970. But nothing much
happened until the 1980s. This was the time when people visibly started taking
interest in saving the environment, eventually leading to increased interest in green
products and services. There was reciprocation from the manufacturers to the rising
demand for environment-friendly, energy efficient, biodegradable and compostable
products from the customers.

In 1992, the Federal Trade Commission (FTC) came forward with guidelines for the
application of environmental terms like, `biodegradable', `compostable', `recyclable',
`reusable', etc. According to FTC and the US Environmental Protection Agency,
"environmentally preferable products" may be defined as those goods and services
that have a smaller adverse impact on the environment and the human health, when
weighed against other goods and services that are used for the same purpose. It is all
about how the raw materials are obtained, given shape to, enclosed, distributed and
recycled, and how the service and the products are made available to the consumers.
If any company wants to promote itself or any of its products/services as being
environment friendly, it must then abide by the rules laid down by FTC.

Green marketing has evolved through three phases. The first phase was termed as
`ecological' green marketing. During this period, all marketing activities revolved
around ecological problems, providing timely and effective remedies for the same. The
second phase was `environmental' green marketing during which, the focus was on
the development of technology which is environmentally safe. The thrust was on
designing new products which help in the reduction of waste effluents and pollution.
The third phase commenced in the late 1990s and this phase was actually the
`sustainable' green marketing phase. This was at its peak when the former President
of the United States, Bill Clinton, had directed all federal offices to buy and use
environmentally safe products.

Green marketing campaign can be started by ensuring credibility of the green claims.
This can be achieved by having the product certified that it was produced in an
environmentally sound manner. Once certified, the eco-labels enable the consumers to
make educated and responsible choices.

Call to Change Peoples' Mindset

It is a general tendency among customers to go in for a cheaper alternative, rather

than purchase a more costly green and eco-friendly product. It has really been an
uphill task for the `green activists' to reach to the masses and change their way of
thinking. The proponents of green marketing emphasize that the `greenness' of a
product should be considered as a necessity by customers while taking the buying
decision, rather than a luxury.

It is also possible that marketers may put on a show of supporting the environment
without actually doing so. This is known as `greenwashing'. It is the presenting of a
product or service as green, when it is actually not.

However, green marketing can be a very powerful marketing tool, when it is used
correctly and with fair intentions. We need to follow three principal dictums for
effective green marketing; which are:

 Be genuine
  Educate your customers, and

 Give them the opportunity to participate.

Accomplishments in Green Marketing

There has been a significant change in the mindset of customers, and manufacturers
are leaving no stone unturned to respond to the shoppers' demands. The hotel
industry is showing maximum inclination towards green marketing by projecting their
eco-testimonials more aggressively. The concept of `green inn' is catching on. For
example, hotels have been suggesting to their guests to reuse towels for the period of
their stay, so as to save water and energy spent on laundering.

A lodge at Sun Ranch in Cameron, Missouri (in the US) dedicatedly plants 10 trees in
the Amazon region for every guest's stay in its place. Another effort is being made at
The Hilton in Naples, Florida (USA). The hotel is growing a Confederate Jasmine vine
garden on top of its roof, which keeps the building effectively cool and the best feature
is that the garden is watered with condensation waste from the air conditioners.
According to The American Hotel and Lodging Association, when it put up `Green Best
Practices' resource guide on its official website, it soon became one of the most visited
sites in recent times.

Clearly, the environment is becoming a priority for hoteliers and that too for good
reasons. The general public too has started taking a firm stand on its responsibility
towards the environment and according to the Travel Industry Association-USA, more
American adults are keen to select an environmentally responsible hotel. "Putting the
`eco' in front of your name gets attention", according to Ted Martens, director at
Sustainable Travel International, a nonprofit organization in the US that educates
travelers and travel providers about ecology conservation. As an offshoot, the concept
of `Green IT' has evolved as well, which is being taken very seriously by many
companies, particularly in Britain. Here, almost half of the large IT firms have adopted
the green IT strategy.

Measures Taken in India

 Introduction of Compressed Natural Gas (CNG) and Unleaded Petrol in

Delhi: This improved the quality of petrol and has helped bring down pollution
levels.
 Solar Equipment: Solar equipments are the need of the hour, as they assist
in enhancing the quality of our environment by not generating noise or air
pollution. They also conserve energy.

 Energy Conservation: Compact Fluorescent Lamps (CFLs) provide an energy

saving alternative to incandescent lamps, and they are also very effective in
bringing down electricity expenses. Today, we find widespread use of CFLs.
Similarly, introduction of hybrid and electric vehicles is a useful measure for
reducing air pollution.
  Eco-friendly Furniture: It is a good substitute for classical wooden furniture
which we use in our households. Eco-friendly furniture draws more on waste
products and other by-products, which do not pose any threat to our
environment and depends less on wood.

 Recycling: Recycled plastics, recycled rubber, textiles, recyclable synthetic

and waste products go into the making of many products such as eco shoes.
Similarly, eco-friendly paints are being manufactured that have non-hazardous
and natural raw materials as their ingredients. Such paints are the need of the
hour to make our environment safer. Handmade paper is much in demand as
it is made of non-wood resources. Handmade paper has dual benefits, as it
help conserve trees and also reduces pollution.

It is often said that the green niche can be more appealing and lucrative. Customers
who are environmentally aware keep on learning more about green products and do
not mind paying more for such products. However, Edwin R Stafford, Associate
Professor of Marketing at Utah State University's College of Business, states that even
after so much endeavors and publicity, only a small fraction of consumers base their
buying decisions on a product's environmental quality. People, in general, although
they are aware, do not take environmental factors into consideration while making a
purchase. However, they definitely should, during these times of deteriorating
environment.

Nonetheless, there is huge untapped potential for the marketing of green products
which provide an immediate advantage to the consumers. Several examples can be
quoted even from India, where customers are using them because of their practical
benefits. These include front-loading energy-efficient washing machines and other
appliances, compact fluorescent lamps, solar water heaters, etc. But we cannot ignore
the fact that the success of many green products is not because of their `greenness',
but due to the utility and the practical value they provide to the customers. This is
where education will have to play an important role in the marketing efforts. People
need to be made aware about the benefits of using green products. A macro-level
thinking needs to be inculcated amongst the consumers.

Ottman's Rules of Green Marketing

According to Jacquelyn Ottman, there are five rules for effective green marketing.
These are:

 Companies and customers need to reciprocate in creating awareness about

and demand for green products. It is important for marketers to know the
customer and his requirements.
 Consumers have to feel that using an eco-friendly product can make a
difference to their lives. Otherwise, why should a consumer bother to buy such
a product, which may be costlier?
  Consumers need to believe the claims made by the company. Open and
transparent communication is certainly the best policy to adopt, to gain
support from consumers. Transparency is the best policy.

 The product has to work. The buyers need to be reassured regarding the
quality of the product. Otherwise, they would think that nothing much is
received in return from these green products, in spite of spending more on
buying them.

 Consumers do not think much about paying more for a better product if they
are convinced of its worth. They pay more money for energy labeled and `star
graded' products which consume less electricity and produce less greenhouse
gas emissions.

Conclusion

With the progressive degradation of the environment with each passing day, green
marketing has become a necessity, to sustain the quality of our environment. It is
high time we understood the importance of a healthy environment. If the general
public is still not able to foresee the detrimental effects of environmental damage,
then probably our future generations will never be able to know the meaning of a
`healthy' environment. It is expected that if a company is already competitive in
terms of quality, price and performance, adding `green claims' and eco labels to its
marketing strategy would augment its brand image and safeguard its market share
amongst those who fail to do so.
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January'09 - 

Articles

GREEN MARKETING

Sustainable Green Marketing:The New Imperative

-- Bholanath Dutta
Assistant Placement Officer & Senior Lecturer, - - - - -
CMR Institute of Technology,
Bangalore.
The author can be reached at bhola - dutta@yahoo.com; bnath.dutta@gmail.com;
----
Resources are limited and human wants are unlimited. Hence, it is very important for the marketer to utilize the - - - -
resources efficiently and, at the same time, achieve the organization's objective. Green Marketing is the best-
suited solution to this issue. The consumers of today are more conscious about protecting the environment. They
are enlightened consumers and are known as `green consumers'. Green marketing talks about sustainable and Subsc
socially responsible products and services. This article discusses the evolution and the importance of green keep u
-----
marketing. It also discusses various challenges contained in it. Click
----
In this era of globalization, corporate responsibility is no longer merely about local labor issues, pollution control, ----
or energy efficiency. Sustainable businesses are those that are helping find global solutions to our most pressing
environmental and social issues.

- Ed Barker
Director of Corporate Partnerships at Earthwatch Co-

Green products don't work well and consumers won't pay a premium for them - is an old saying. But most of the
companies today believe that investing in environmentally preferable products and technologies can be a source
of innovation and competitive advantage. The success of companies practicing `green marketing' has drawn the
attention of corporates, policy-makers and, more importantly, consumers. Green marketing is the recent
buzzword ruling the corporate world. In today's context of global warming, climate change and environmental
pollution, this concept has evolved as a savior for the mankind.

Green marketing is environment-friendly, sustainable and socially responsible marketing. According to American
Marketing Association (AMA), "Green or Environmental 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".
An int
Many people have attempted to define the term "green marketing". It is sometimes used as a synonym to — Ow
`environmental marketing' and `ecological marketing. Jacquelyn A Ottman, author of "Green Marketing: Owen
Opportunity for Innovation", defines green marketing as environmental considerations integrated in all aspects of Franc
been
marketing. Michael J Polonsky, author of the books on environment and green marketing, defines the term as indus
"All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such contri
public
that satisfying of these needs and wants occur with minimal detrimental input on the national environment". about
the be
The D
Broadly, green marketing involves developing good quality products which can meet consumer needs and wants Colorf
by focusing on the quality, performance, pricing and convenience in an environmental-friendly way. Practicing Press
green marketing is not only good for mankind but also for the environment. It also give competitive advantage He ho
admin
to the marketers. Schoo
at htt
be rea
Evolution of the Concept What
What
Many people believe that green marketing has evolved from environmental marketing and ecological marketing stand
Steve
and its scope is much wider when compared to the other two. It encompasses environment-friendly products and perfor
services and also guarentees value, pricing and customer satisfaction. The term `Green Marketing' was, in fact, elega
with c
coined much earlier but gained popularity only during the late 1980s and early 1990s. The AMA, for the first easy
time, organized a workshop on `Ecological Marketing' in 1975. The results of the proceedings of the workshop with t
were documented in one of the first books on green marketing titled `Ecological Marketing'. According to Peattie era, a
Many
(2001). there are three phases in the evolution of green marketing: great
your
i. Ecological Green Marketing: This is the phase when companies were concerned about the environmental a ma
of Ap
problems and tried to provide appropriate solutions to the same. iPhon
How
ii. Environmental Green Marketing: In this phase, the focus was shifted to clean technology and this, in turn, one o
brand
 amba
Witho
helped in designing innovative products and taking care of waste disposal and pollution.
memo
nobod
which
iii. Sustainable Green Marketing: Green marketing is not for the short-term, but needs to be sustainable in
the ca
the long-term; and for this, it should be able to command adequate customer support. This concept began to produ
gain importance during the late 1990s. had tr
and th
becau
Jacquelyn A Ottman and others have described green marketing at three different levels: fact, t
could
marke
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i. Marketing: Development of new technology, new process and new product and communicating the same to
comp
the customer. Innovation is an integral part of it. New process and technology to develop environment-friendly yet Ap
products and services. super
comp
single
ii. Holistic Nature: All stakeholders need to be part of this initiative _ marketer, supplier, retailer, educator, Fortun
from
community member, regulator, NGO _ indeed all of them. were
of you
danci
iii. Environmental Issues: Need to be balanced with primary customer needs. There are many ways wherein lifesty
along with making profits, marketers can take care of environmental issues. comp
produ
practi
Importance of Green Marketing
more.
Green Marketing comprises a broad range of activities like product development and modification, packaging,  
advertising, pricing, etc. It is, in fact, a very challenging task to deliver a product that meets customer needs
and demands in terms of quality, value, pricing and availability. The result of this is the outcome of `green
consumers', especially in the US first and followed by many other countries. Green Marketing has gained
momentum in the context of global warming and climate change and this, in turn, has forced many companies to
incorporate the principles of Green Marketing. Recently, Green Marketing has drawn the attention of national and
state governments and this has forced them to introduce environment-friendly policies.

As resources are limited and human needs and wants are unlimited, resources have to be utilized economically
and in an environment-friendly way. Apart from being socially responsible and environment-friendly, there are
other reasons like corporate governance, government pressure, competitive pressure, etc., that lead a company
to adopt Green Marketing strategies. Green Marketing is a remedy for mitigating climate change and global
warming and it can also give a competitive edge over others. Today's enlightened consumer, the so-called
`green consumer', a company practising Green Marketing.

Rules of Green Marketing

There are many ways as to how a company can incorporate the concept of Green Marketing in its marketing
activities. The first and foremost is the customer satisfaction in an environment-friendly way. In developed
countries like the US, customer awareness of the environment is very high. That is the reason there are `green
consumers', and this has become prevalent in many other countries. Companies that want to incorporate Green
Marketing need to work on the following areas:

 Be aware of the environmental issues and the way it will impact people's lives. There is a need to create
awareness among the customers to make Green Marketing work.
 Make the customers feel that they will make a difference by being environment-friendly. Once the
customers understand and start appreciating and valuing the companies practicsing Green Marketing, a
 lot will change for the better.

 Going green implies working towards the greater cause of environmental protection and safeguarding the
ecology and climate. Marketers have to believe that by practising Green Marketing, they will be helping
the environment and the mankind.

 Make best possible efforts to ensure that the green products provide the same benefits to customers as
the non-green alternatives and are affordably priced.

A Few Cases

 Dell Computers: Recently, Dell has launched the `plant a tree for me' program in partnership with `The
Conservation Fund' and `Carbonfund.org'. It has been a very good initiative to offset carbon emission
and individuals and corporations can easily participate in it.
 General Motors (GM): GM has launched a light-hearted advertisement on the TV that begins with
`Dear Oil'. The purpose behind this advertisement is to make people understand its efforts to move
beyond oil as the source of energy and look to other options.
 CNG in Delhi: In 2002, the Supreme Court of India passed a verdict to completely adopt Compressed
Natural Gas (CNG) for all public transportation systems in the Indian capital to curb pollution. This step
was appreciated by one and all as the level of pollution in Delhi was very high. However, initially there
were objections raised by the transporters; but in due course, it was successfully implemented (Exhibit
1).
 McDonald's: The company has started using restaurant napkins and bags made of recycled paper.
 Hewlett-Packard (HP): HP has promised to cut its global energy uses 20% by 2010. To accomplish
this reduction, HP has announced plans to deliver energy-efficient products and services.
 Philips: Philips has launched the `super long life' bulb which saves up 20% energy.
 Badarpur Thermal Power Station, New Delhi: Trying to find out ways to utilize the coal-ash which
pollutes air and water
 Xerox Corporation and Canon: It has introduced high quality recycled photocopier paper (Exhibit 2) to
meet the demand for less environmentally harmful products.
 Walt Disney World (WDW): It has an extensive waste management program and infrastructure in
place.

Challenges Associated with Green Marketing

There are a number of challenges and problems associated with the understanding and application of green
marketing practices. Some of them are as follows:

 Firms practicing Green Marketing must ensure that their activities are not misleading the customers and
are not violating any rules and regulations pertaining to environmental protection.
 Firms must do their best to clearly state the benefits of Green Marketing. If customers are explained the
benefits of Green Marketing, then it is certain that they will appreciate the same.

 Lack of scientific knowledge on the part of firms sometimes creates unnecessary problems. McDonald's
replaced its clam shells with plastic-coated paper. This lead to a debate as to which is more
environmental-friendly.

 Sometimes, steep competition can force a company to adopt unfair practices to cut costs. Firms should
be socially responsible and look for sustainable development.

 Practising green is costly. Green products require renewable and recyclable products that are more
expensive. Green Marketing can succeed in the long-run, only if the additional costs can be recovered.

 Substantial investments in research and development and an innovative organizational culture are a
must for developing and marketing of green products. Innovation is, in fact, the first step in the
successful development of a green product (Exhibit 3).

 Majority of the people are not aware of this concept in the developing and under-developed countries. As
a result, in such situations, one faces the additional challenge of creating awareness and willingness to
spend on green products.

 Many people may not be prepared to pay higher prices for green products. Unless there is widespread
awareness about the long-term implications of continuing to use non-green products, it becomes difficult
for the companies to practice Green Marketing.

 Water treatment technology is very expensive. This takes the use of recycled water beyond the reach of
most users, though there may be dire shortage of water.
The Winning Mantra

Companies need to believe first that Green Marketing `can work' and make diligent efforts to make necessary
product improvements, which deliver performance, are marketable and profitable. Companies should not only
develop green products but must explain about the same more effectively to the consumers. They also need to
integrate Green Marketing strategy into all the 4 P's (Product, Price, Profit and People) of the marketing mix.
Consumers, suppliers of raw materials, distributors and retailers _ all need to be made aware of Green Marketing
and its benefits. Green marketing has to be considered as a visionary goal to be achieved through continuous
improvements and efforts. It must be included in the company's overall corporate strategy.
 Green Myopia

The concept of `marketing myopia' was introduced by Theodore Levitt in 1960. He laid emphasis on `managing
products' rather than `meeting customer needs'. Sometimes, this can also happen for companies practising
`Green Marketing', if they focus on `greenness' over the broader expectations and needs of the consumers or
other stakeholders including suppliers, distributors, regulators and various activists.

Conclusion

Green Marketing is still in its infancy. A lot of research has yet to be made to explore various opportunities and
possibilities. Profit is important for the sustenance of any firm. Adoption of Green Marketing may not be
profitable sometimes in the short-run, but definitely firms that are first movers, will have competitive edge over
the others in the long-run. Today's consumers are very much aware of environmental issues like global warming,
climate change, etc., and are getting ready to pay the premium for environment-friendly products and services.
Companies too have a role to play in creating awareness regarding the necessity of using green products. The
time has come for firms to explore every opportunity to enhance their products/services in terms of quality,
performance, social responsibility and environment-friendliness. Social organizations and consumer forums too
have to pressurize companies to adopt green practices in their operations.

The government has to strengthen policy measures to facilitate the move towards environment friendly products
and practices. There is already a significant degree of development in this direction in the US and many
European countries. This movement has to spread geographically across the world, which would also necessitate
customization to match with the requirements and affordability levels in different countries.

Reference # 10M-2009-01-05-01.

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Articles
GREEN MARKETING

Green Marketing :A Perspective

Ecological imbalance is a major issue facing the world today. This is due to two
basic reasons: firstly, the depleting natural resources and, secondly, rapid increase
in the use of products that are environmentally harmful. Ecology is also getting
------------------
imbalanced because of the increasing generation of waste in one or the other
form. Use of herbal products, stationery items from recycled paper, etc., is one of
the steps companies have taken towards conserving the environment. Green
marketing is the process of marketing with the focus on a balanced ecology. This
article discusses some aspects of green marketing. ------------
--------
Green Marketing - The Concept

Subscribe to receive f
Maintaining ecological balance is a major issue confronting the corporate world keep up with latest fro
today. The damage done to the environment has already crossed threshold and
------------------
reached alarming limits. Non-replenishable natural resources are getting depleted
Click here to upl
at a rapid pace. Generation of waste, including non-biodegradable waste, is
increasing enormously. All these negative developments have forced mankind to ------------
think more seriously about conserving the environment. Green marketing is one --------
 An Inter
such initiative towards environment protection.
Co-Creation fo
Advan
Green marketing is a broad term covering all aspects of marketing decision-
making that keep the ecology and environment in focus. There are basically two Effective E
major issues in green marketing. The First one is to check the misuse of natural March
resources and the second is to control wastage. The wastage can be in any form.
It can be the unused product itself or it can be the expired product. Wastage can
also be from primary, secondary and tertiary types of packaging. The material
used in packing can cause damage to the environment. Even today, plastic is
being used as a raw material in the manufacture of packaging materials and carry
ournals bags, which proves harmful to animals which swallow such material accidentally.
Books
Articles Green marketing incorporates an array of activities, including product modification,
changes in production processes, changes in packaging materials, etc. It has led to An interview with
green products and green consumers. Green marketing tackles issues related to — Owen Linzmayer
environmentally-safe production, distribution, consumption, disposal, etc., of the Owen Linzmayer is
products and the packaging materials on the marketing front in order to make Francisco-based freel
marketing activities eco-friendly. been covering Apple
industry magazines s
contributed to every
Conventional Marketing versus Green Marketing publication and has w
about Apple and its p
the best-selling Apple
The Definitive History
Marketing is a process which begins with identifying the needs of the consumer
Colorful Company, pu
and further includes product development, delivering products to the consumer Press.
and providing after-sales service. The conventional marketing process is not He holds a bachelor’s
administration from B
specifically concerned or bothered about environmental safety. The contemporary School of Managemen
green marketing concept, on the other hand, analyzes ecological compatibility of at http://www.owenin
be reached at owl@o
the product, its raw materials, packaging materials, etc. In green marketing, the
What does Steve Jo
environment is at the center point of decision-making. It emphasizes on What does the bran
formulation of marketing strategies in conformation with environment protection. stand for?
Steve’s brand is one
performance married
Conventional marketing paid little attention to the pollution caused to the elegance. He has alw
with creating useful p
environment from the unused or expired products, the raw material used in
easy to use, dating b
manufacturing or from the packaging materials used. It had a myopic vision, while with the Apple II, thr
green marketing has long-term orientation. Conventional marketing concentrated era, and now with the
Many describe Stev
on the convenience of human beings, while green marketing maintains the greatest marketer
environment at the center of marketing decisions. Green marketing owns your impressions a
environmental responsibility and makes itself accountable for fulfilling such a marketer? What
responsibility. of Apple’s and i-ser
iPhone, etc.) marke
How was it that for
one of the top-rate
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had tremendous prod
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Green marketing uses techniques focusing on management of raw materials as practical side of the m
more...
well as waste materials. It adopts a proactive approach to waste management.
 
Conventional marketing has self-centered approach while green marketing has a
social cost- benefit approach, towards environmental conservation. Thus, the View Prev
prominent difference between conventional marketing and green marketing is that
conventional marketing does not bother about the environment, while green
marketing focuses on environmental safety. Marketing M

Consumers are becoming increasingly aware of the hazards of a polluted

environment. They have experienced the damage caused to animals and to soil
fertility by expired products and from non-biodegradable packaging material like
polythene bags. They are witnesses to the increasing of all types of waste. The
consumers today have started emphasizing on green products and green
packaging materials. All these factors have contributed towards the emergence of
green marketing, which is definitely a step ahead of conventional marketing.

Green Marketing - Some Key Notions

Green marketing is gaining importance day by day due to increasing awareness

about environmental conservation. Green marketing utilizes natural resources as
raw material. It adopts production procedures which result in the least amount of
waste products. It focuses on using such materials in packaging, which are
biodegradable (Exhibit 1) and do not cause harm to other living ones or the
environment. Many marketers are adopting green marketing as their Unique
Selling Proposition (USP). They are becoming consumer- friendly and are gaining
recognition.

Product System Life Cycle (PSLC) Concept

Green marketing focuses on Product System Life Cycle (PSLC) to be eco-friendly

(Exhibit 2). PSLC relates to the life cycle of resources and distribution channels.
Resource life cycle starts with identification of resources to be used in the creation
of products.
The next stage will be to procure such resources in a cost-effective manner. There
may or may not be the need for processing of the procured resources. If there is a
need, the processing of resources is the next stage in PSLC. The product is
manufactured as a result of processing of resources. The waste from the
manufacturing process is disposed of in the environment. The manufactured
product is then distributed and eventually sold to customers.

At the last stage of PSLC, the unused or the expired product and the packaging is
disposed of by the consumer after the consumption of the product. It is obvious
that waste gets generated at several stages of the PSLC. The selection of
resources and the treatment of waste before releasing into the environment are
two important considerations in PSLC, with greater focus on waste management.
The strategic issues involved in PSLC are reduction of wastes by delaying the
expiration of resources, effective waste management at each stage of the PSLC
and increasing accountability of resource management. The PSLC concept needs to
be understood by the marketers as well as consumers in order to further develop
green marketing.

Integrated Waste Management

Green marketing further incorporates integrated waste management (IWM)

system. IWM involves strategies to prevent environmental pollution and resource
conservation. It also controls the ultimate release of residues into the eco-system.
The type of product to be manufactured not only helps in resource identification
but also helps in knowing the levels and types of waste that will be generated
during the production of the final product and the types of packaging materials
that can be used. IWM focuses on identification of waste which will be generated
at each stage of production and whether it can be of any further use. It also
involves identification of the final disposal process. The analysis regarding making
the product green with least waste and that too biodegradable waste is the key to
the success of the IWM system.

Organizations can pursue green marketing activities by changing the raw material
mix, by modifying the product, by improving the production processes, by using
biodegradable packaging materials and by checking the release of waste products
into the environment during production or consumption of the product or at the
time of disposal of surplus or expired product.

Some Examples of Green Marketing

Green marketing activities include the use of appropriate raw materials in the
manufacture of products. Companies can change the raw materials from chemicals
to natural materials. Taking the example of bath soaps, washing soaps, tooth
paste, edible salt, etc., we observe that the manufacturers claim that their
products contain natural materials like neem, tulsi, clove oil, sea salt, water from
Ganges, milk and milk cream, natural flowers for fragrances, etc., instead of
harmful chemicals.

There are eco-friendly hotels such as The Orchid chain of hotels (Exhibit 3), which
use environment-friendly materials in their construction and operation, and
conserve the use of electricity and other resources through various adaptations.
There is emergence of shopping malls with nature as their basic ambience. Some
segments of the cosmetic industry avoid chemicals and use herbs and other
natural ingredients. For example, Vicco uses turmeric in its face cream. The plastic
bottles used for packaging of soft drinks are reused for packaging of phenyl, acid
or other products. The incandescent electric bulbs are being replaced by compact
fluorescent lamps (CFLs), which are superior in performance, produce less heat,
consume less electricity and have longer life.

The transport industry is looking forward to the use of alternative fuels. Maruti
Udyog Limited has come up with models using gas as fuel. YO bikes (Exhibit 4) run
on batteries. Commercial vehicles run on CNG instead of conventional fuel. The
Delhi Transport Corporation runs its fleet of buses on CNG only. Researches are on
for developing solar-powered automobiles. There is emphasis on using articles
made from hand-made paper. There are numerous examples where the
manufacturers have either changed the raw materials or even modified the
product design for conservation of the environment. With more concern being
shown by the corporate world towards green marketing, the day is not far when
green marketing becomes a common practice among manufacturers and
marketers throughout the globe.

Conclusion

Green marketing refers to marketing where ecological issues are the focal point of
marketing decision-making. It ranges from change in raw materials to change in
packaging materials. It includes change in product design or even substitution of
one product by another. It also encompasses disposal of waste generated during
production and distribution, the disposal of surplus or expired products and even
the disposal of packaging after the use of the product. There is ample scope for
green marketing at both the manufacturers' end and marketers' end.

Green marketing is catching on in a big way. Marketers as well as consumers are

slowly but strongly recognizing it. Awareness is being created about the use of
such materials, which are helpful in conserving the environment and are eco-
friendly. Though the green products can be a bit costlier in comparison to their
non-green counterparts, they are beneficial from the viewpoint of environment
conservation, which will definitely prove advantageous in the long run. Green
marketing is gaining increasing prominence across the world and in India too.

- Vikas Shrotriya
Reader
Department of Management Studies,
Swami Keshvanand Institute of Technology,
Management & Gramothan, Jaipur.
The author can be reached at vikas_shrotriya@yahoo.co.uk

Reference # 10M-2008-07-03-01.
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2005 2004 2003 2002 ------------------

January' 07 - 
Articles
Ecopreneurship

Green Marketing

- Sanjit Kumar Roy

Research Scholar,
IIMT, Hyderabad.
------------------
The author can be reached at roysanjit2004@yahoo.co.in

In the modern times, most companies have begun to feel the need for green
marketingmarketing of products that are presumed to be environmentally safe. It
requires a slight manipulation in the existing four Psproduct, price, place, and ------------
promotionof marketing in addition to a careful understanding of the public policies. --------
This article outlines the increasing scope of green marketing and defines the
concept as such.
Subscribe to receive f
keep up with latest fro
There is a growing interest among the consumers all over the world regarding
------------------
saving the environment and this is influencing the corporate world. Even though
environmental issues affect almost all the activities of human life, very less Click here to upl
 ------------
academic attention has been paid to address them. Businesses are now waking up --------
to modify their behavior in order to address some of the environmental concerns
faced by the consumers today. Marketing has given a great deal of attention to the
environmental issues over the last decade or so. Some of the terms like "Green
Marketing,", "Ecological Marketing," and "Environmental Marketing" have cropped
An Inter
up in the marketing literature in recent times. These three terms are used
Co-Creation fo
synonymously in the marketing literature.
Advan

Definition Effective E
March
The American Marketing Association defines Green Marketing as "the marketing of
products that are presumed to be environmentally safe for the consumers." It
ournals includes a wide range of activities, viz., product modification, changes in the
production processes, modification of the advertising messages, changes in the
Books
packaging of products, etc.
Articles

Queensland Government EPA defines Green Marketing" as one that involves

developing and promoting products and services, which the customer desires, for
quality, performance, affordability, and convenience, without having a detrimental An interview with
effect on the environment. — Owen Linzmayer

Owen Linzmayer is
The concept of green marketing took birth in the early 1980s and became fully Francisco-based freel
been covering Apple
developed by the 1990s. Prior to 1980s, it was referred to as "Ecological industry magazines s
Marketing". Henion (1972) defined Ecological Marketing as the marketing effort of contributed to every
publication and has w
an organization expended directly or indirectly on selling or marketing goods,
about Apple and its p
services or ideas, whose positive ecological attributes or content constitute a the best-selling Apple
minor or major appeal for the buyer, user, or adopter, for the purposes of making, The Definitive History
Colorful Company, pu
or which tends to result in, a short-term or long-term profit for a profit-making Press.
entity. He holds a bachelor’s
administration from B
School of Managemen
Peattie (2001) states that the term "Green Marketing" has been used to describe at http://www.owenin
be reached at owl@o
marketing activities which attempt to reduce the negative social and
What does Steve Jo
environmental impacts of existing products and production systems, and which What does the bran
promote less damaging products and services. stand for?
Steve’s brand is one
performance married
Evolution of Green Marketing elegance. He has alw
with creating useful p
easy to use, dating b
Over a period of time our understanding of the relationship between business, with the Apple II, thr
era, and now with the
society and the physical environment has improved. The understanding of the
Many describe Stev
principles and practices of green marketing has also evolved over the last decade greatest marketer
or so. According to Peattie (2001), the evolution of green marketing can be broken your impressions a
down into three distinct phases. They have been described below: a marketer? What
of Apple’s and i-ser
iPhone, etc.) marke
First Phase How was it that for
one of the top-rate
brands never had a
The first phase was termed as "Ecological" Green Marketing. This concept was ambassador?
developed in the 1970s. Henion and Kinnear (1976) conceptualized green Without a doubt, App
 memorable marketin
nobody can just “put
marketing to be concerned with all marketing activities -- which is to say that n
the campaign, it will
product is no good. F
(i) that have served to help cause environmental problems, and had tremendous prod
and these are much e
because of their inhe
(ii) that may serve to provide a remedy for environmental problems. fact, to play the devil
could assert that App
marketer because the
It dealt with the positive and negative aspects of marketing activities, which were was so much better t
related to pollution control and resource diminution. The characteristic features of competition came up
yet Apple failed to ca
this phase of green marketing are the following:
superiority and allow
computer market sha
single digits.
1. It focused only on the environmental problems like air pollution, soil pollution,
Fortunately, Apple se
water pollution, oil spillovers, etc. from its mistakes. Th
were perfectly target
of young, hip consum
2. It targeted the companies or units that were causing the environmental dancing silhouettes. T
problems. lifestyle campaign, bu
completely different i
product benefits that
Second Phase practical side of the m
more...
 
The second phase of green marketing was "Environmental" Green Marketing. It
emerged during the late 1980s. The focus of this phase was on the potential View Prev
dangers to the environment and the human life residing in it. A series of
events/disasters, viz., the Bhopal gas tragedy (1984), the Chernobyl (1986), and
the oil spill at Exxon-Valdez (1989), led this phase to come into prominence. The Marketing M
most significant thinking in the green thought was sustainability. The characteristic
features of this phase were the following:

1. Focus on clean technology that involved the designing of innovative new

products, which took care of the pollution and waste issues.

2. Green consumers were concerned about the impact of their consumption and
purchasing habits on the environment.

3. It considered the issues relating to physical environment, society, and economy.

4. It held a global perspective by recognizing unsustainable production and

consumption system as the causes for most of the environmental problems.

Third Phase

The third phase of green marketing was "Sustainable" green marketing. It came
into prominence in the late 1990s and early 2000. It emphasized on progress
towards greater sustainability. Fuller (1999) defines sustainable green marketing
as "the process of planning, implementing and controlling the development,
pricing, promotion, and distribution of products in a manner that satisfies the
following three criteria:

(a) Meeting of customer needs, (b) achieving organizational goals, and (c) the
process-compatibility with eco-systems."

Its focus is to achieve the "triple bottom line" through creating, producing, and
delivering sustainable products or services. Products/services need to have higher
net sustainable value while satisfying the customers and other stakeholders. To
make production process of products and consumption more sustainable, a
number of elements of market and marketing have to be modified. These are the
following (Cooper and Evans, 2000):

1. Product costs

2. Emphasizing cost instead of price

3. A better understanding of environment marketing

4. Industry structures

5. Focus from products to services

6. An emphasis on distribution

7. Moving beyond the niche.

Four Ps of Green Marketing

The Ps of green marketing is same as that of the traditional marketing. The only
difference is that the green marketers need to use the conventional four
Psproduct, price, place, and promotion of marketing in innovative ways.

Product

According to Kellerman (1978), "The ecological objectives in planning products are

to reduce resource consumption and pollution and to increase conservation of
scarce resources." Leigh, Murphy and Enis (1989) used a seven-layered
hierarchical product differentiation scale to analyze the societal benefit of three
selected product classes. The seven criteria used, ranked in decreasing order
were: ecological impact, societal impact, product performance, product extension,
product information, product design, and product embellishment. The rationale for
the hierarchical nature of this scale is drawn from the long-range perspective of
the total welfare to society. Companies, which are trying to exploit the green
market opportunity, have to do the following two things:

1. Identify customers' environmental needs and hence develop those products

which satisfy these needs;

2. Develop products that are environmentally responsible and have less impact on
the environment than that of competitors' products.

The desirable products are the ones having one of the following characteristics:

 Products made from recycled goods, e.g., recycled paper.

 Products that can be recycled
 Products which save water, energy, or oil and which have less harm on the
environment
 Products with environment friendly packaging, e.g., McDonald's packaging
with degradable paper
 Products are organic in nature.

Price

Henion (1976) suggested, if the price of each product is based on its true full cost,
which includes its social and environmental costs, and then there would be no
need for ecological marketing. In the real world, assumptions of traditional price
theory are often violated. Henion also suggests that ecological marketing can
convert non-environmentally concerned consumers into environmentally
concerned consumers by way of effective education and merchandising.

Price is a critical component of the green marketing mix. Consumers are often
ready to pay a premium price if they perceive the value in a product. This
perceived value could come from taste, function, design, quality, and performance.
Early research findings have suggested that ecologically concerned consumers are
not always willing to pay a higher price for environmentally compassionate
products (Herberger & Buchanan, 1971). On the contrary, environmentally
accountable products, are often less costly when product life cycle costs are
considered. Some examples of such products include fuel-efficient vehicles,
energy-efficient lamps, and non-toxic products.

Promotion

Kellerman (1978) described promotion as a vehicle for expanding the demand for
ecologically benign products, while encouraging conservation of scarce resources
as well as a vehicle, by which consumers and producers can be taught to modify
their attitudes toward the environment. The promotional role of ecological
marketing is not always easy. Kinnear and Taylor (1973b) found that neutral
sources, such as television documentaries, rank much higher than market-
dominated sources such as advertisements. The neutral sources are seen as not
having any hidden motives for providing environmental information. Some of the
green marketers are able to reinforce environmental sincerity by using sustainable
marketing and communication tools. For example, companies in the financial
service providers are using e-mails to send statements or to correspond with the
customers; this clearly shows that e-marketing is rapidly gaining ground in place
of the traditional marketing methods. While promoting the green credentials and
achievements, it is necessary to build the trust of the customers and stakeholders.

Place

Kellerman (1978) not only discussed the development of reverse channel systems
for recycling, but also suggested that marketers encourage one-stop shopping as
well as developing distribution systems that involve more movement of
information and less movement of goods and people. Michman (1985) stated that
the role of distribution management in light of our environmental problems
involves emphasis on mass-transportation, containerization, unit trains and other
goods-handling technologies. Availability of the product at the right place at the
right time is of great importance for the marketer because it has an impact on the
customers. Marketers, who are looking for introducing their green products in the
market, must position them well in the marketplace to make green products
available to a wider section of the market. The location must differentiate itself
from the competitors' by way of in-store promotions and display of environmental
benefits in addition to other benefits of the products.

The exhibit will enable us to understand who the green consumers and what their
characteristics are.

Reasons for the Growth of Green Marketing

The natural resources are limited. Therefore, marketers must develop newer ways
of satisfying the never-ending wants and needs of customers. The prime duty of
green marketers is to look into how these limited resources will be utilized to
satisfy the consumers' need as well as the industries' need, and at the same time
fulfilling the objectives of the organization. Green marketing offers a company to
achieve both the bottom-line growth and the top-line growth opportunities. Some
of the reasons for companies going green are as follows:

1. Environmental "green marketing" is seen by organizations as an opportunity to

fulfill their objectives (Keller, 1987).

2. Competitive pressure is another important factor, which forces some companies

to go green.

3. Modifications in the production process or other business processes could

be costly at the beginning, but it pays in the long run. For example, installing a
solar heater is expensive; however, the maintenance is much cheaper than the
conventional heaters. Companies that are innovative, and consider
environment safety in their production processes and products and or services
will have the advantage of accessing new markets. It also gives them the
competitive advantage over those companies which do not care for the
environment.

Exhibit: The Green Consumers

Attributes ofImplications for Green Marketers
Environmentally Conscious
Consumers
Will most likely be well- Target products to women who
educated, young adultgenerally buy on behalf of men
women who nave moreand families.
money to spend. Use the influence of children to
encourage parents to try green
products. They are the green
consumers of the future and are
generally knowledgeable about
environmental issues thanks to
school and community education
programs.
Offer samples and incentives to
try products.
Will expect green productsEffectively communicate
to function as effectively asassurances of quality—for
non-green products andexample quality of performance,
won’t pay much extra orlook, feel, fit, comfort, durability,
sacrifice quality for greeneretc.
products.
Will not buy green productsLink environmental attributes
on the basis ofsuch as energy efficiency or toxic
environmental benefitssubstance reduction with other
alone. Product choice is still benefits such as lower price,
based on whether it meetsconvenience or quality of life
their basic want or need.improvements.
Environmental features are
added selling points.
Will be more likely to Emphasize personal benefits by
respond to productusing terms such as ‘safe’, ‘non-
attributes that willtoxic’, ‘cost-effective’ rather than
personally benefit them. more generalized green
messages such as ‘biodegradable’
or ‘ozone friendly’.
Will tolerate only minimalMake using the product simple—
inconvenience in usingfor example, minimize or
green products and don’teliminate refilling bottles.
want to have to go out ofSelect mainstream distributors
their way to buy them. where possible.
Offer one-stop shopping and eye-
appealing displays.
Will be analytical, eager toReinforce product benefits with
 learn, and can be cynicalevidence of corporate
about corporate claims forenvironmental performance and
green product unless theyimprovements.
have independentEducate consumers about
verification. environmental issues and your
efforts through a variety of
means.
Provide credible environmental
endorsements.
Use labels, in compliance with
government labelling guidelines,
to convey precise, detailed
information about your product
and its packaging.
Will not expect companies toCommunicate your steps towards
have perfect greensustainability and commitment to
credentials, but will look forimprovement.
a commitment to improveSeek feedback and promote your
and evidence backed byefforts to respond to customer
facts. concerns.
Source: www.epa.qld.gov.au/sustainable_industries

4. Companies are also going for green marketing under governmental pressure.
The government is concerned about the environmental threat arising from harmful
products. It is also taking measures to protect consumers from the hazards of the
consumption of harmful goods/products, the false and misleading claims of the
marketers, etc.

Some of the companies have started to realize that they have a social
responsibility towards the society, and they have begun various environmental-
friendly activities.

The introduction of CNG in New Delhi by the Supreme Court of India in 2002 in all
forms of public transport to reduce air pollution is a classic case of green
marketing.

The introduction of CFLlamps by Phillips is another example of green marketing.

This has led to the reduction in energy consumption.

Conclusion

Green marketing considers both greening products and greening the firms. The
green marketers should not neglect the economic aspects of green marketing.
Managers need to understand the implications of green marketing. They should be
clear on what is to be greenedthe system, the processes, or the products.
Information disclosure is one of the important components of green marketing.
The information disclosed has to be genuine and substantiated. Green marketing is
still in its infancy, and a lot of research needs to be done on green marketing to
 fully explore its potential.

Reference # 10M-2007-01-02-01.

Green Marketing - What About the Consumer's

Perspective?
How does concern for the environment manifest itself in
consumer attitude and consumer behavior? While many
express their support for "good causes", when it comes
to their making a purchase decision, what actually
happens? Consumers may express their preference to
buy environmentally safe products, or claim to base their
purchase decisions on environmental considerations. This
has been manifested in acceptance of eco-safe
packaging, without extra cost, but are brands which
claim to offer eco-preserving core products given strong
preference? Evidence seems to suggest green marketing
programs have met with varying levels of success and
failure.

Some of the identified negative factors have been:

1. Lack of credibility - the perception that the marketer is

only offering lip service to entice the consumer.

2. Overexposure - everyone is jumping on the

bandwagon, so where is the difference? This also creates
skepticism even towards the genuine cases.

3. Consumer behaviour - the complex underlying realities

which do not always match publicly expressed
perceptions.

In real life, few are willing to trade price or performance

- i.e. pay more, or compromise on functional benefit, and
sometimes even aesthetics, for environment friendly
appeal.
Compiled by Ravi Warriar, Consulting Editor, Marketing
Mastermind.

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Green Marketing: The Indian Scenario

 - K Suresh
Faculty Member,
Icfai Books,
Hyderabad.

Over the past few years, some sectors in India have seen green initiatives by firms.
Partly to differentiate their offerings in a competitive milieu and partly to take
advantage of the price premium possible, many companies have started offering
branded green products in several categories.

The term "Green Marketing" is relatively new in the Indian context. The most visible
manifestations of corporate activities have been in industries associated with polluting
the environment (petroleum, fuel) or niche segments in some sectors such as hotels
and stationery. Other than this, there is no significant drive to pursue options in the
production of greener products or building up a customer-base for the green products.

Understandably so, given the absence of regulations in place to steer firms towards
greener alternatives. Let alone design of green manufacturing systems, even the
existing rules on effluent treatment and gaseous emissions into the atmosphere are
not implemented properly. A trend that evolved two decades ago in developed
markets has just started in India.

In developed markets, the momentum was gained largely due to the

following three factors:

Consumer Pressure: The Greenpeace movement succeeded in bringing

environmental issues into the mainstream. It highlighted the dangers of unbridled
exploitation of natural resources and degradation of the natural environment. In the
process, it managed to drive home the importance of developing alternative modes of
production and consumption of products that did not harm the environment. As a
consequence, consumer boycott of polluting products or products made by firms with
dubious environmental pollution records began. Proactive environmentalism began on
their part, wherein, they looked out for products designed and manufactured so as not
to harm the environment.

Government Regulations: Realizing the importance of protecting the environment,

governments put in place regulations to force industries to replace manufacturing
processes and materials that pollute with greener alternatives. For example, emission
norms in vehicles were tightened to minimize release of hydrocarbons into the
atmosphere. Similarly, use of biodegradable materials was actively encouraged
through incentives. Such policies encouraged industries to phase out polluting
technologies and take the responsibility for recycling harmful products.

Corporate Initiatives: Over the past decade, businesses are under increasing
pressure to fulfill their social responsibilities and shun reckless pursuit of profits.
Corporate citizenship and Corporate Social Responsibility (CSR) are two such
manifestations. Media scrutiny on corporates has increased, to assess their fulfillment
of social obligations. They also quickly realized that a significant section of the society
held very strong green concerns and presented an opportunity for green products.
Tweaking the production process a bit and altering product features, some firms began
marketing greener products.

The Indian Initiatives

Over the past few years, some sectors in India have seen green initiatives by firms.
Partly, to differentiate their offerings in a competitive milieu and partly to take
advantage of the price premium possible, many companies have started offering
branded products in several categories. Some of these are detailed below:

Renewable Energy: Energy was one of the first sectors to be identified by the Indian
Government to reduce dependence on fossil fuels. To sustain the economic growth
foreseen, it was felt two decades ago that alternative energy sources need to be
encouraged. Setting up Indian Renewable Energy Development Agency Limited
(IREDA) in 1987 was one such attempt. IREDA facilitates with monetary and technical
support to industries for pursuing projects related to solar, bio, hydro and wind
energy. These are high investment projects for corporates.

At the customer end, only solar energy has found applications for retailing green
products. Tata BP Solar, a leading private enterprise to venture in this area, markets
many solar products targeted at households under different brands. Vajra, for
example, is its domestic water heating system. Similarly, Jugnu and TATADEEP are its
brands for home lighting kits and lanterns respectively.

Hospitality: ECOTEL is a global certification for eco-friendly hotels. Presently, there

are 36 hotels worldwide, which are ECOTEL certified. Of these, five are in IndiaOrchid
Hotel (a 5-star hotel in Mumbai), Uppal's Orchid (a 5-star hotel in Delhi), Lotus Suites
(a 4-star hotel in Mumbai), Hotel Rodas (a 3-star hotel in Mumbai) and Rain Tree (a 5-
star hotel in Chennai).

Given the difficult yardsticks that need to be met to get the certification, the hotels
tout their status and position themselves on the green platform. The efforts taken and
the mileage drawn are best exemplified by the activities highlighted in the exhibit "Eco
Practices at Orchid Hotel, Mumbai".

Eco Practices at Orchid Hotel, Mumbai

Hanger Made from Saw Dust

Kitchen garbage on theUses nine vermiculture bins

site

Personal care products Herbal products, manufactured

served to guests under an ayurvedic license
 Laundry Uses reusable cloth bags

Shopping bag messages Cloth bag, with environment

Eco-friendly (at least 50%

Stationery
recycled)

Recycling bins Separate bins in each room

Footwear Handcrafted, from natural reed

Waste water Recycled

Source: www.orchidhotel.com

Fuel: Petrol and Diesel, the dominant fuels used for mass and personal transport, are
major culprits in polluting the environment and the emissions released due to the
burning of these fuels into the atmosphere are harmful. With the liberalization of this
sector, private petro retailers such as Reliance and Essar forayed and the public sector
giants BPCL, HPCL and Indian Oil became more market-oriented. Sprucing up the
ambience at retail outlets, providing value-added services, expanding the presence
and marketing of branded fuels at a price premium followed. To further differentiate
itself from others and provide a value-added service to its customers, BPCL offers
greener fuels. Different forms of these, with different value propositions, are marketed
under the brands of "Speed", "Speed 93", "Speed 97" and "Hi-Speed Diesel". These
are claimed to have additives that result in fewer polluting emissions from the vehicles
using such fuels. In the case of "Hi-Speed Diesel", particulate matter and black smoke
reductions are claimed to be 16% and 22% respectively.

Automotive: In the Indian context, use of the green plank was initiated a couple of
decades back when Hero Honda's four-stroke motorcycles were promoted as
environment-friendly. The then competitors to Hero Honda were marketing two-stroke
motorcycles, which were more polluting. Since then, almost all players in the
competitive scooter and motorcycle markets have shifted to the four-stroke
technology.

Last year saw some action in electric vehicles for the Indian market. Bajaj Auto
launched ECOrick, an electric three-wheeler. Although priced twice that of a petrol
vehicle, its running cost was claimed to be one-fourth that of the petrol version.
Hyderabad-based Cynosure Enterprises Ltd. launched Yash E-Bike, an electric two-
wheeler that runs at a speed of 25-30 km per hour and covers 60 km when fully
charged. In the current year, British player Ultra Motors has announced plans to
launch battery-powered scooters and motorcycles in India. As for mass transportation
vehicles, Supreme Court's ruling makes it mandatory for state-run road transport
buses in Delhi to shift to Compressed Natural Gas (CNG) made a huge impact. Even in
Mumbai, the state-run BEST is plying some of its buses on CNG. Needless to say, the
 movement would easily spread to other states and ensure that manufacturers churn
out more such greener alternatives.

Personal Care Products: Across a wide range of product categoriessoap, cream,

talcum powder, oil, shampoothere is an increasing shift towards products that are
without chemicals. "Herbal", "Ayurvedic" and "Natural" are terms that we frequently
come across in these categories. Some firms specialize in such green products, while
others are also jumping onto the bandwagon. The herbal healthcare and personal care
market is estimated to be Rs.2,500-3,000 cr, according to Ravi Prasad, President and
CEO, Himalaya Drug Company.

Conclusion

Due to multiple reasonsregulatory pressures, technological developments, consumer

movement, emergence of niche segmentsIndian marketers are going green in new
product development, product modification and packaging. Apart from the above-
mentioned sectors, there are significant developments even in other areas. Eveready
Industries has launched rechargeable (upto thousand times) batteries. ITC actively
promotes its notebooks as being eco-friendly, as these are made from Elemental
Chlorine Free (ECF) paper. Michelin recently launched a new tyre, "Energy XM 1", that
is supposed to be developed using a silica-based compound "Green `X'". This is a
substitute for carbon black, which is a fossil fuel derivative.

The government has announced that blending petrol with ethanol would be made
mandatory by the end of the year. Ethanol reduces emission of carbon monoxide, a
polluting hydrocarbon. The auto industry is also taking keen interest in using biofuel.
DaimlerChrysler successfully completed a 5,000 km trial run of jatropha biodiesel in
one of its cars. Hopefully, the `greener movement' would engulf more and more
product categories and result in products that satisfy customer needs and do not harm
the environment.

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Article ------------------
GREEN MARKETING

Green Marketing: Better Late Than Never

------------
-- Ambika Lal --------
Faculty Member, INC Ghaziabad.
The author can be reached at
lal.ambika@gmail.com Subscribe to receive f
keep up with latest fro
Green marketing is the need of the hour when we are seeing environmental ------------------
degradation every single day. Although eco-friendly products are slightly Click here to upl
expensive compared to their traditional counterparts, they offer many advantages.
------------
While the market for green products is definitely on the increase, the "green
--------
marketing" campaign is yet to achieve a critical mass. There is an urgent need for
both marketers and consumers to appreciate the importance of green products.

We are not here to sell the consumer on saving the planet. This is about `saving
me' we are the next endangered species on the list. An Inter
Co-Creation fo
-- Jacquelyn Ottman
Advan
Author of "Green Marketing: Opportunity for Innovation"
Effective E
March
Green marketing can be de- fined as the marketing of products that are regarded
to be safe for the environment. The quality of our environment is deteriorating
with each passing day. It has become a challenge for all human beings to
safeguard Mother Earth and green marketing is a small endeavor in this direction.
Green marketing can serve as an effective tool for encouraging the sale of a
product by using its ecological credentials.

It all began with the perception that many consumers will choose products that do
not damage the environment over less environment-friendly products, even if they
An interview with
cost more. Green marketing incorporates a wide range of activities to meet — Owen Linzmayer
ecological standards. These include: product modification, changes in the
Owen Linzmayer is
production process, packaging changes as well as alterations in advertising, so as Francisco-based freel
ournals to have minimum detrimental effect on the environment. In the long run, green been covering Apple
Books industry magazines s
marketing benefits one and all—the environment, businesses and human beings.
contributed to every
Articles publication and has w
Green marketing is also known as environmental marketing or ecological about Apple and its p
the best-selling Apple
marketing. It includes marketing of products that are phosphate-free,
 The Definitive History
Colorful Company, pu
replenishable, eco-friendly, ozone-friendly and recyclable. Consumers spend Press.
billions of dollars on buying goods and services every year, many of which harm He holds a bachelor’s
administration from B
the environment by way of how they are harvested, made or used. The drive is on School of Managemen
to motivate consumers to adopt environmentally safe alternatives, while at http://www.owenin
encouraging manufacturers to develop more eco-friendly products by offering be reached at owl@o
What does Steve Jo
incentives to them.
What does the bran
stand for?
It would be incorrect to state that the concept of green marketing originated quite Steve’s brand is one
performance married
recently. It has been in existence since the first Earth Day in 1970. But nothing elegance. He has alw
much happened until the 1980s. This was the time when people visibly started with creating useful p
easy to use, dating b
taking interest in saving the environment, eventually leading to increased interest with the Apple II, thr
in green products and services. There was reciprocation from the manufacturers to era, and now with the
the rising demand for environment-friendly, energy efficient, biodegradable and Many describe Stev
greatest marketer
compostable products from the customers. your impressions a
a marketer? What
In 1992, the Federal Trade Commission (FTC) came forward with guidelines for the of Apple’s and i-ser
iPhone, etc.) marke
application of environmental terms like, `biodegradable', `compostable',
How was it that for
`recyclable', `reusable', etc. According to FTC and the US Environmental one of the top-rate
Protection Agency, "environmentally preferable products" may be defined as those brands never had a
goods and services that have a smaller adverse impact on the environment and ambassador?
Without a doubt, App
the human health, when weighed against other goods and services that are used memorable marketin
for the same purpose. It is all about how the raw materials are obtained, given nobody can just “put
which is to say that n
shape to, enclosed, distributed and recycled, and how the service and the products the campaign, it will
are made available to the consumers. If any company wants to promote itself or product is no good. F
had tremendous prod
any of its products/services as being environment friendly, it must then abide by and these are much e
the rules laid down by FTC. because of their inhe
fact, to play the devil
could assert that App
Green marketing has evolved through three phases. The first phase was termed as marketer because the
was so much better t
`ecological' green marketing. During this period, all marketing activities revolved
competition came up
around ecological problems, providing timely and effective remedies for the same. yet Apple failed to ca
The second phase was `environmental' green marketing during which, the focus superiority and allow
computer market sha
was on the development of technology which is environmentally safe. The thrust single digits.
was on designing new products which help in the reduction of waste effluents and Fortunately, Apple se
from its mistakes. Th
pollution. The third phase commenced in the late 1990s and this phase was were perfectly target
actually the `sustainable' green marketing phase. This was at its peak when the of young, hip consum
dancing silhouettes. T
former President of the United States, Bill Clinton, had directed all federal offices
lifestyle campaign, bu
to buy and use environmentally safe products. completely different i
product benefits that
practical side of the m
Green marketing campaign can be started by ensuring credibility of the green more...
claims. This can be achieved by having the product certified that it was produced  
in an environmentally sound manner. Once certified, the eco-labels enable the
View Prev
consumers to make educated and responsible choices.

Call to Change Peoples' Mindset

Marketing M

It is a general tendency among customers to go in for a cheaper alternative,

rather than purchase a more costly green and eco-friendly product. It has really
been an uphill task for the `green activists' to reach to the masses and change
their way of thinking. The proponents of green marketing emphasize that the
`greenness' of a product should be considered as a necessity by customers while
taking the buying decision, rather than a luxury.

It is also possible that marketers may put on a show of supporting the

environment without actually doing so. This is known as `greenwashing'. It is the
presenting of a product or service as green, when it is actually not.

However, green marketing can be a very powerful marketing tool, when it is used
correctly and with fair intentions. We need to follow three principal dictums for
effective green marketing; which are:

 Be genuine
 Educate your customers, and
 Give them the opportunity to participate.

Accomplishments in Green Marketing

There has been a significant change in the mindset of customers, and

manufacturers are leaving no stone unturned to respond to the shoppers'
demands. The hotel industry is showing maximum inclination towards green
marketing by projecting their eco-testimonials more aggressively. The concept of
`green inn' is catching on. For example, hotels have been suggesting to their
guests to reuse towels for the period of their stay, so as to save water and energy
spent on laundering.

A lodge at Sun Ranch in Cameron, Missouri (in the US) dedicatedly plants 10 trees
in the Amazon region for every guest's stay in its place. Another effort is being
made at The Hilton in Naples, Florida (USA). The hotel is growing a Confederate
Jasmine vine garden on top of its roof, which keeps the building effectively cool
and the best feature is that the garden is watered with condensation waste from
the air conditioners. According to The American Hotel and Lodging Association,
when it put up `Green Best Practices' resource guide on its official website, it soon
became one of the most visited sites in recent times.

Clearly, the environment is becoming a priority for hoteliers and that too for good
reasons. The general public too has started taking a firm stand on its responsibility
towards the environment and according to the Travel Industry Association-USA,
more American adults are keen to select an environmentally responsible hotel.
"Putting the `eco' in front of your name gets attention", according to Ted Martens,
director at Sustainable Travel International, a nonprofit organization in the US that
educates travelers and travel providers about ecology conservation. As an
offshoot, the concept of `Green IT' has evolved as well, which is being taken very
seriously by many companies, particularly in Britain. Here, almost half of the large
IT firms have adopted the green IT strategy.
Measures Taken in India

 Introduction of Compressed Natural Gas (CNG) and Unleaded

Petrol in Delhi: This improved the quality of petrol and has helped bring
down pollution levels.
 Solar Equipment: Solar equipments are the need of the hour, as they
assist in enhancing the quality of our environment by not generating noise
or air pollution. They also conserve energy.
 Energy Conservation: Compact Fluorescent Lamps (CFLs) provide an
energy saving alternative to incandescent lamps, and they are also very
effective in bringing down electricity expenses. Today, we find widespread
use of CFLs. Similarly, introduction of hybrid and electric vehicles is a
useful measure for reducing air pollution.
 Eco-friendly Furniture: It is a good substitute for classical wooden
furniture which we use in our households. Eco-friendly furniture draws
more on waste products and other by-products, which do not pose any
threat to our environment and depends less on wood.
 Recycling: Recycled plastics, recycled rubber, textiles, recyclable
synthetic and waste products go into the making of many products such as
eco shoes. Similarly, eco-friendly paints are being manufactured that have
non-hazardous and natural raw materials as their ingredients. Such paints
are the need of the hour to make our environment safer. Handmade paper
is much in demand as it is made of non-wood resources. Handmade paper
has dual benefits, as it help conserve trees and also reduces pollution.

It is often said that the green niche can be more appealing and lucrative.
Customers who are environmentally aware keep on learning more about green
products and do not mind paying more for such products. However, Edwin R
Stafford, Associate Professor of Marketing at Utah State University's College of
Business, states that even after so much endeavors and publicity, only a small
fraction of consumers base their buying decisions on a product's environmental
quality. People, in general, although they are aware, do not take environmental
factors into consideration while making a purchase. However, they definitely
should, during these times of deteriorating environment.

Nonetheless, there is huge untapped potential for the marketing of green products
which provide an immediate advantage to the consumers. Several examples can
be quoted even from India, where customers are using them because of their
practical benefits. These include front-loading energy-efficient washing machines
and other appliances, compact fluorescent lamps, solar water heaters, etc. But we
cannot ignore the fact that the success of many green products is not because of
their `greenness', but due to the utility and the practical value they provide to the
customers. This is where education will have to play an important role in the
marketing efforts. People need to be made aware about the benefits of using
green products. A macro-level thinking needs to be inculcated amongst the
consumers.
 Ottman's Rules of Green Marketing

According to Jacquelyn Ottman, there are five rules for effective green marketing.
These are:

 Companies and customers need to reciprocate in creating awareness about

and demand for green products. It is important for marketers to know the
customer and his requirements.
 Consumers have to feel that using an eco-friendly product can make a
difference to their lives. Otherwise, why should a consumer bother to buy
such a product, which may be costlier?
 Consumers need to believe the claims made by the company. Open and
transparent communication is certainly the best policy to adopt, to gain
support from consumers. Transparency is the best policy.
 The product has to work. The buyers need to be reassured regarding the
quality of the product. Otherwise, they would think that nothing much is
received in return from these green products, in spite of spending more on
buying them.
 Consumers do not think much about paying more for a better product if
they are convinced of its worth. They pay more money for energy labeled
and `star graded' products which consume less electricity and produce less
greenhouse gas emissions.

Conclusion

With the progressive degradation of the environment with each passing day, green
marketing has become a necessity, to sustain the quality of our environment. It is
high time we understood the importance of a healthy environment. If the general
public is still not able to foresee the detrimental effects of environmental damage,
then probably our future generations will never be able to know the meaning of a
`healthy' environment. It is expected that if a company is already competitive in
terms of quality, price and performance, adding `green claims' and eco labels to
its marketing strategy would augment its brand image and safeguard its market
share amongst those who fail to do so.

Reference # 10M-2009-12-04-01.

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Green-marketing revolution defies economic downturn

Jack Neff. Advertising Age. (Midwest region edition). Chicago: Apr 20, 2009. Vol. 80, Iss. 14;
pg. 1, 2 pgs

Abstract (Summary)

Green marketing is turning out to be surprisingly recession-proof. Datamonitor shows 458

launches so far in 2009 of package-goods products that claim to be sustainable,
environmentally friendly or "eco-friendly." Consumers are still buying sustainable lines despite
their higher cost. Nielsen Co data show sales growth of organic food at 5.6% year over year in
December from a year ago, though that's down from the double-digit pace of years past, and
its SPINS tracking service showed sales at natural-food stores up 10.9% to $4.2 billion last
year. K-C, which this month is launching Huggies Pure & Natural, positioned as having more
natural ingredients and post-consumer content than other products, found one sure sign of
consumer interest during pre-launch buzz building.

 »  Jump to indexing (document details)

Full Text

 (1823  words)
Copyright Crain Communications, Incorporated Apr 20, 2009

[Headnote]
Sustainable-product sales rise as eco-friendliness goes mainstream and value players join the
trend

GREEN MARKETING IS turning OUt to be surprisingly recession-proof.

Datamonitor shows 458 launches so far in 2009 of package-goods products that claim to be
sustainable, environmentally friendly or "ecofriendly." If that pace holds all year, it will triple the
number of green launches last year, which in turn was more than double the number in 2007.
Seventh Generation CEO Jeffrey Hollender said his company's sales were up 50% last year
and 20% in March year over year despite Clorox, Church & Dwight and now SC Johnson
entering the space. "The good news is that in general these products are faring better than
most categories," he said. "A lot of people would be desperate to have 5% growth."

Consumers are still buying sustainable lines despite their higher cost. Nielsen Co. data show
sales growth of organic food at 5.6% year over year in December from a year ago, though
that's down from the double-digit pace of years past, and its SPINS tracking service showed
sales at natural-food stores up 10.9% to $4.2 billion last year. Though growth slowed in the
fourth quarter, it was still more than 7% in December, far healthier than the rates at even top-
performing grocery retailers such as Walmart or Costco.

"It looks like this green trend is going to survive the recession," said Tom Vierhile, general
manager at Datamonitor's Product Launch Analytics.

"If you go back 10, 20, 30 years, other green movements ultimately have had the air taken out
of them by recessions," said Arie Melzel senior brand manager at Kimberly-Clark's Scott
paper company. "This one is acting differently than we've seen in the past. In looking at
national tracking studies, it does appear that this time the green mind-set is very much being
more solidified."

Mr. Vierhile's read is that the interest in green products has reached beyond the vanguard of
ecoenthusiasts. Indeed, Information Resources Inc. research found sales of green products
growing fastest in the 52 weeks ended Jan. 25 in a predominantly Hispanic segment labeled
"respectful stewards" and a predominantly white-male segment labeled "proud traditionalists."
Sales actually remained flat in the "eco-centric" segment with die highest interest in green
issues.

Part of the secret to green products' survival, Mr. Vierhile said, is manufacturers' desire to
save on commodity costs. What's also helped is retailers - particularly Walmart - furthering the
cause by working to keep green products affordable, as well as the entry of private-label and
value-brand marketers into the category.

The test of whether green can really go mainstream is shaping up with a new offering from
Scott: toilet paper, paper towels, napkins and wipes made from 40% to 80% recycled content.
The launch is from a $2 billion-plus global value brand that reaches 41 million households, or
one in three U.S. consumers. You can't get more mainstream than that.

The premise is that consumers don't have to sacrifice either performance or price to make a
positive environmental impart, said Mr. Melzel. The launch springs from research showing
Scott's value-minded consumers still want to minimize the environmental impact of their
products: 86% said they're interested and 41% said they're very interested in products with
recycled content. Mr. Melzel said he believes recycled products can become a $500 million
business, or about 5% of the $10 billion retail paper-products business in the U.S., up from
less than 1 % today.

Walmart is looking to go Scott one better with White Cloud private-label toilet paper from
100% recycled fiber. And while the retailer hasn't been beating the sustainability drum in its
PR efforts as loudly as in the past, it has put some substantial weight behind its Earth Month
marketing and merchandising efforts, billed as bigger than last year, with ads from Martin,
Richmond, Va., touting 10 green products for under $10 and rollbacks on products such as
Clorox Green Works and Procter & Gamble Co.'s Tide Coldwater.

CLEANERS GROW

K-C, which this month is launching Huggjes Pure & Natural, positioned as having more natural
ingrethents and post-consumer content than other products, found one sure sign of consumer
interest during prelaunch buzz building. When Edelman, Chicago, reached out to 500 mommy
bloggers about die product line, they generated close to 200,000 requests for samples, said
Huggies Senior Brand Manager Tim Abate.

Sales of water-filtration devices and filters - which have been positioned as a more eco-
friendly alternative to bottled water by Clorox Co.'s Brita and Procter & Gamble Cö.'s Pur in
recent years - soared 22.2% and 15.2%, respectively, in the four weeks ended March 22,
according to Information Resources Inc. data from Deutsche Bank, continuing the torrid
double-digit pace they've been on the past two years despite the recession and relatively high
price points.

Green cleaners, too, continue to grow as more mainstream manufac- turers, such as SC
Johnson with its recently launched Nature's Source lineup, pile into the category. Clorox
Green Works became the best-sell- ing natural-positioned cleaning brand during its first year
last year, said Jessica Buttimer, global domain leader for the brand, and roughly tripled an
already robust green- cleaner-category growth rate of 35% in 2006 and 2007 to 108% in
2008. "In recent months, with the economic downturn, we are seeing some slowing growth in
certain product categories where we've lapped our launch," Ms. Buttimer said. "But in
categories such as natural liquid dish soap, growth continues to be strong at 143% [for the 13
weeks ended Feb. 22, relative to total dish-soap growth of 7%]."

Seventh Generation's Mr. Hollender said he does believe bigger players in the organic- and
natural-products space are seeing their growth slow. An informal survey he did of five players
in the $150 million to $500 million sales range have seen year-over-year growth in the single
digits this year vs. double-digit growth last year - but all were still growing, he said.

With more mainstream marketers expanding into more categories, Mr. Hollender said,
every consumer-package-goods category will soon have some kind of green
alternative. "Increasingly, it will be a choice between light green and dark green," he
said.

[Sidebar]
STATE-PARKS GROUP THRIVES IN RECESSION
State budgets, state parks, nonprofit fundraising and media outlays all have taken severe hits from
the recession, yet it's proving a boon for a marketing operation that packages all those things
together, tied up with a green bow.
Government Solutions Group of Pasadena, Calif., launched in 2003 by former Procter & Gamble
Co. and Nestlé marketer Shari Boyer, creates marketersponsored visitor guides passed out by
rangers in 1,200 parks in 11 states, including California, New York and Texas.
The parks get a 20% cut of revenue, plus visitor guides they otherwise probably wouldn't have,
particularly given estimates that state parks will see budget cuts ranging from 10% to 15%
nationally this year.
Ms. Boyer said she expects revenue to double this year. At least some of the momentum comes
from marketers such as Coca-Cola, American Express, Nestlé's Juicy Juice, Canon, Geico, Toyota
and Travelocity looking to shift marketing dollars to projects that do environmental or community
good to better resonate with consumers in hard times, she said.
In a promotion launched earlier this month through GSG, the Coca-Cola Bottling Co. of Southern
California is looking to raise $500,000 to pianti million trees in state parks damaged by wildfires in
recent years.
Shoppers at Stater Bros. Supermarkets can donate $1 at checkout, and Coke is donating $1 for
every $10 worth of products purchased. In the first 10 days, the promo raised $200,000, putting it
on pace to easily exceed its five-week goal. "As we did our research and looked at what our
consumers, customers and employees wanted, it's a lot more cause marketing vs. sweepstakes
marketing," said Terence Fitch, the Coca-Cola Enterprises unit's VP-general manager. "It just made
us feel really good about what we're doing."
He said the recession may actually be making consumers focus more on the environment, rather
than less. "I think it's recalibrated people's thought process," he said, adding that the recession is
fostering a sort of "nurturing" mind-set that's helping the Coke brand some, too. "We're somewhat
of a comfort brand," he said, "and I think people are coming back to what they know."
State parks tend to be less expensive and closer to home than national parks, Ms. Boyer said,
making them more attractive to consumers in a recession.
Marketing programs that fund local and state parks are likely to resonate with consumers right now,
said Richard Luker, author of the recently published book "Simple Community," chief strategy
officer of TBA Global and founder of the ESPN Sports Poll. He said in recent polls people have
expressed an increased interest in community events and gatherings and are likely to have
increased appreciation for marketers that fund them.
His surveys have found that 31% of adults ages 18 and up typically have visited a park within the
past week, and 70% have visited one within six months, creating a potentially huge authence for
marketers.
-JACK NEFF
Coke is "somewhat of a comfort brand, and I think people are coming back to what they know."

[Sidebar]
FOUR TIPS FOR GREEN MARKETERS
1. COMBINE ENVIRONMENTAL WITH ECONOMIC SUSTAINABILITY.
Consumers define sustainability more broadly than the environmental concerns marketers mainly
have tended to focus on, and they care more about social and economic issues such as poverty,
employment and health care more than environmental concerns by a substantial margin, according
to research by shopper-marketing agency Saatchi & Saatchi X. The agency is pitching the idea that
green marketing is tired but that "blue marketing," which encompasses environmental with other
social causes, will work better.
2. RETAILER SUPPORT MATTERS.
With 298 different environmental certifications for consumer brands, consumers often don't know
what to believe regarding green claims, said Curtis Munk, VP-insights for shopper marketing at
Saatchi X. As a result, they look to retailers to be the arbiters, placing the most trust in more-green-
positioned retailers such as Whole Foods and Trader Joe's, but also some others, such as
Walmart, that have been working hard to burnish their green credentials.
3. OPPORTUNITIES REMAIN.
Research by Nielsen's concepttesting service Bases shows that environmentally focused Lifestyles
of Health and Sustainability consumers have above-average purchase intent for personal care, pet
products, and refrigerated, shelfstable and frozen foods but perceive only average current product
availability in those categories.
4. ADDRESS SKEPTICISM ABOUT PRICE AND OUAUTY MORE THAN THE ACTUAL 6REEN
CLAIMS.
Bases found more than 80% of consumers in all categoriesincluding 89% of those most inclined to
buy green but also 80% of those unconcerned about green claims-found green claims completely
or somewhat believable. Only 9% to 16% of consumers said they believe green products aren't as
green as claimed-fewer than half the proportion who said they completely believe such claims. Yet
a vast majority of consumers said they believe green products cost more and don't perform as well
as others.

[Author Affiliation]
By JACK NEFF
jneff@adage.com
Headnote]
Hardcore environmentalists aren't the only people worried about the state of the Earth-your customers are,
too. And smart marketers have realized there's money to be made in saving the planet BY REBECCA
HARRIS

Why are marketers going green? Let me just put down my veggie burger, wipe the locally
made ketchup off my organic cotton T-shirt, lower the volume on An Inconvenient Truth, and
sift through a stack of stories about companies jumping on the ecofriendly bandwagon:

"Wal-Mart Rolling Out Green Label"

"Guests Go Green At Fairmont Hotels & Resorts"

"Loblaw Gets More Environmentally Friendly"

"Home Depot Greens Up Stores With Eco Options"

Ding! A compact fluorescent light bulb just went on. Green is not the new black. It's the new
gold.

"Green has gone from a movement to a market," says Joel Makower, a business and
environmental consultant and founder of Greenbiz.com. Marketers "are recognizing that there
are real business opportunities here."
While it seems like the trend du jour, all signs suggest the green movement is here to stay.
First, global warming "is unlike any previous environmental issue in terms of its size, impact
and universality, and that has major implications for how we do business," says David Wigder,
vice-president and director at Digitas in New York. Simply put, "all brands need to embrace
green to one degree or another."

Secondly, consumer awareness about the environment is soaring. Nearly two-thirds (68%) of
the world's population is concerned about climate change, according to a recent survey of 20
countries by Synovatc and BBC. And people are taking action in the retail aisles. In a recent
survey by Marketing and Ipsos Reicl, 70% of Canadians said they are buying more
environmentally friendly products than they did even one year ago and 77% agree that most
companies don't pay enough attention to their own environmental responsibilities (see Green
Thinking, p. 20).

Add to that governments taking action on greenhouse gas emissions, environmental groups
putting pressure on businesses to clean up their acts, and companies realizing they can him a
profit by being more eco-friendly, and it's clear the future is green.

BIG-BOX CRUSADERS

How do you know the green market has become the mass market? When the biggest
company on the planet turns a lighter shade of kale. Wal-Mart recently announced a new
sustainability strategy called "For the Greener Good," which includes eliminating its own
production of waste, becoming 100% powered by renewable energy and showcasing
environmentally friendly products to consumers.

Wal-Mart (led by its U.S. headquarters) is looking at every part of its business "with a more
sustainable focus," says Kevin Groh, director of corporate affairs at Wal-Mart Canada. That
includes everything from seafood and electronics, to packaging and shipping, to the design
and construction of its stores.

For example, this year, Wal-Mart is investing $5 million on sustainable store design and is on
track to become the largest purchaser of green power in Canada. Wal-Mart also introduced a
"For the Greener Good" logo to identify products that are "environmentally preferable," such
as organic cotton clothes and CFL bulbs, without the sticker shock normally associated with
earth-friendly goods.

"We're not breaking our business model," says Groh. "People say that customers won't pay
for greener options and our goal is to make them not pay for greener options... We don't think
there's anything incongruous between environmentally friendly products and great prices."

Wal-Mart's action on the environmental front is "extremely exciting and impactful," says
Makower. "Does that make them a green company? Not by a long shot, but they stand to
move markets faster than any activist group or government policy could."

Another example is Wal-Mart's "packaging scorecard," which the company will introduce to
suppliers at an information session in Toronto later this month, and roll out in 2008. The
scorecard looks at the overall environmental footprint of each product, including what it's
made of, its size and shape and how to dispose of the packaging it's shipped in. And if the
product doesn't measure up, Wal-Mart won't stock it. (That hue you see? Thousands of
consumer packaged goods marketers just got a littler greener.)

While Wal-Mart is notorious for putting the squeeze on its suppliers, so far there hasn't been
resistance from the packaged goods industry, according to Jim Downham, president and CEO
of the Packaging Association of Canada in Toronto. "The movement towards the reduction
and elimination of greenhouse gases is a global event... It's incumbent upon the packaged
goods community to be a part of it."

Certainly, Wal-Mart wants to clean up its corporate image, but it's also "a big bottom line
issue" for the company, says Makower. Wal-Mart "pays millions of dollars a year to throw
away wasted packaging [from shipments] that it now won't have to throw away because it will
never receive it in the first place. And that savings goes right into Wal-Mart's bottom line."

The Home Depot is also pushing its suppliers to be more environmentally sound. The do-it-
yourself chain introduced its Eco Options label in Canada in 2004, and the program was
recently implemented in the U.S. To qualify for the label, suppliers must answer an extensive
questionnaire that looks at factors such as energy efficiency, clean air, sustainable forestry,
and water efficiency. For example, push and electric mowers qualify under "clear air" and
wood products have to come from responsibly managed forests. There are now 1,200 Eco
Options products and Home Depot plans to add another 500 this year.

"It brings customers in, certainly that's part of it," says Peg Hunter, senior director of marketing
at The Home Depot. "It also establishes our leadership in a lot of ways and most importantly,
it actually does great things for the environment." After seeing the program's initial success
(Hunter won't reveal sales figures), "we said 'wow, these two things don't have to be mutually
exclusive-good business and ecological responsibility.'"

On the marketing front, the company launched Eco Options last fall, an in-store magazine that
promotes Home Depot's eco-products, along with articles on energy-saving appliances and
clean air alternatives. The company also has a microsite, homedepot.ca/ecooptions and
recently launched a print campaign to educate consumers about its green products.

But it doesn't take much to convince consumers about the benefits of going green. "The
evidence about how global warming affects our life every day is there and it feels like it's
indisputable," says Hunter. "The environment is much more a part of people's psyche. It
doesn't hurt that Al Gore and celebrities are getting behind this."

Indeed, Al Gore's 2006 documentary An Inconvenient Truth has made a big impact on the
public consciousness, says Colin Isaacs, an environmental scientist and adviser to Loblaws'
PC Green product line. "And I'm certainly hoping this time it stays with us."

Ever since Rachel Carson's book Silent Spring, which many credit with launching the modern
environmental movement, was published in 1962, "there have been waves of concern and
much less waves of concern," says Isaacs. But even when concern for the environment "goes
on a bit of a roller-coaster ride, the overall trend has been upwards."

Isaacs has been an advisor to the PC Green program since it launched 20 years ago.
"Products have always come and gone during that period," he says. "There were a whole
bunch of products at the beginning, some were successful, some have been evolved and
many were taken off the market because they just didn't sell."

About five years ago, when Loblaws launched PC Organics, "we saw that these two areas-
organics and the environmental issue-really dovetail each other," says Elizabeth Margies, VP
of public relations at Loblaw Companies. With the success of its Organics line, Loblaws
decided to revisit PC Green.

In April, the company relaunched PC Green with 26 products; some are new and some are
reformulations of existing products. The line now includes fire logs made of used coffee
grounds, toilet tissue and paper towels made of 100% recycled paper and lawn compost
made of recycled leaves.
Loblaws also introduced the PC Green reusable shopping bag, made from 85% post-
consumer recycled materials. The bag, which sells for 99 cents, is made from plastic
beverage bottles and is recyclable. As green products are becoming more mainstream, "the
time was right to enhance the line with new products and have a new signature item, like the
bag is, to really anchor the enhancement of the product line," Margies says.

IT AIN'T EASY...

Certainly, there are challenges when companies decide to become green marketing
machines. "There continues to be a great deal of hypocrisy... in which [consumers] say they
want to buy greener products and say they want companies to do the right thing, but when
companies talk about what they're doing the public tends to be very suspicious and cynical
about it," says Makower. In fact, in the Marketing/ Ipsos Reid survey, 23% of Canadians
strongly agree and 49% somewhat agree with the statement, "I am skeptical about most
companies' claims of being environmentally conscious."

The problem is there's no clear answer to the question "how good is good enough?" "There
are [government] standards for organics and green buildings... but for most product
categories, we don't know how to define what makes it green."

Doug Macdonald, a professor at the University of Toronto and author of Business and
Environmental Politics in Canada, points out that most environmental regulation (with the
exception of fuel-efficiency standards for cars), doesn't have to do with products, it has to do
with the pollution that is generated during the manufacturing process.

But will standards for green products be next? "It depends on whether this popular support
that we see now for environmental action is going to build and grow and become even more
of a political force. If it does, then governments will be acting," says Macdonald.

Until then, marketers will continue to paint themselves in their own shades of green. Fairmont
Hotels & Resorts, for example, has created its own environmental standards and is hoping
other hotel companies will follow. The Toronto-based company just launched the third edition
of its Green Partnership Guide, a how-to book for the hospitality industry. It includes
information on energy management, water conservation and tracking cost savings.

Fairmont has also created an "Eco-Meet" program for meeting and conference planners. It
provides food served on reusable dishes, whiteboards instead of paper flip charts and local,
seasonal cuisine at all Fairmont properties. The company doesn't actively market its green
initiatives, says Michelle White, director of environmental affairs at Fairmont. "For us, it's not
necessarily about the marketing, it's just how we do business."

But, she says, requests for green information are now part of the RFP process for many
meeting planners, who realize "meetings and conferences are not environmentally benign."

Environmentalism within the hotel industry is no longer about "the sheet and towel exchange,"
says White. "It's about green design, using green technology and a green supply chain."

To be sure, some marketers in every industry are simply jumping on the environmental
bandwagon with one-time green campaigns (see "Eco Poseurs," p. 28). "There's a herd
mentality going on that all of a sudden it's safe to jump back into the green waters," says
Makower. But it's imperative to develop long-term sustainability strategies. The green
movement is "no longer a regional event," says PAC's Downham. "In the 1990s, it was
important in Europe, Canada and the U.S., but now it has global attention." Downham
believes this time it will be long lasting. "This sounds a little idealist, but it's true. This is about
saving the planet."
And for marketers who truly realize that what's good for the earth is actually good
for business, the future really is green.

[Sidebar]
GREEN THINKING
Are Canadians ethically savvy shoppers or simply confused about what makes a "green" product
green? Marketing and lpsos Reid polled 1,000 consumers from across the country to find out
I am buying more environmentally friendly products than I did even one year ago
Agree: 71%
Disagree: 23%
Don't know/doesn't apply: 7%
I am willing to pay more for environmentally friendly products
Agree: 57%
Disagree: 38%
Don't know/doesn't apply: 5%
Most companies don't pay enough attention to their own environmental responsibilities
Agree: 77%
Disagree: 16%
Don't know/doesn't apply: 7%
I find it confusing sometimes to know which products are better for the environment
Agree: 72%
Disagree: 23%
Don't know/doesn't apply: 5%
Which of the following best describes the type of consumer you are when it conies to buying
everyday products?
I always purchase environmentally friendly products when they are available even if I have to pay
more: 12%
I buy environmentally friendly products, but don't actively seek them out and wouldn't usually pay
more for them: 49%
I buy the product I prefer based on cost, quality or some other factor regardless of whether or not
the product is environmentally friendly: 35%
Don't know/doesn't apply: 4%
What information would help make purchasing environmentally friendly products easier for you?
Information on packages and labels on items: 73%
Advertising campaigns: 36%
Company's website: 16%
Third party source: 23%
Don't know/doesn't apply: 13%
How much would information about a company's environmental behaviour affect your purchasing
decision?
A lot/some: 62%
A little/not at all: 35%
I am skeptical about most companies' claims of being environmentally conscious
Agree: 72%
Disagree: 23%
Don't know/doesn't apply: 5%
The sample was statistically weighted to match the gender, income and regional characteristics of
this population, and represents an overall accuracy of ±3.0%, 19 times out of 20, when describing
the entire adult Canadian population Some reported percentages will total to less than or more than
100% due to rounding.
THE DO'S AND DON'TS OF GREEN MARKETING
Do:
CREATE MESSAGES THAT BALANCE HEAD AND HEART. Green is "very technical, very geeky
science... combined with the well-being of our children and the future of our planet" says Joel
Makower, founder of Greenbiz.com. "You have to balance those two. You can't be too scientific or
technical and you can't be too touchy feely".
PROMOTE A PRODUCT'S OTHER AHRIBUTES. "You can't sell on green alone," says Makower
"Consumers will ask: Is it from a brand I know and trust? Does it work exactly the way the old
version did? Is the quality as good? Does it save me money?"
Be aware that a green message puts a company under greater scrutiny. "When you talk about what
you're doing right, it often illuminates problems the public [didn't know about]" says Makower For
example, if a company says it's using 10% onganic cotton to reduce pesticides, customers may
respond, "You mean 90% of what you use is bad for people and the planet?"
Don't:
USE THE LINE-OH, YOU KNOW THE ONE. "If I see Kermit the Frog one more time or some
reference to his famous statement about [being] green, I'm going to scream," says Makower. "The
messaging is pretty tired."
PUT OUT A GREEN MESSAGE SIMPLY BECAUSE IT'S THE LATEST TREND. "Make sure [the
message] is tied to a core brand value and aligned with internal operations that are green," says
David Wigder, VP and director of Digitas in New York.
USE VAGUE IMAGES OR MESSAGING THAT SAYS YOUCARE ABOUT THE ENVIRONMENT.
"I don't know what good that does and it seems like a waste!' says Makower. "I don't think people
buy into that." -RH

[Sidebar]
First launched 20 years ago, Loblaws revamped its PC Green line with new items and
reformulations of existing products

[Sidebar]
"PEOPLE SAY THAT CUSTOMERS WON'T PAY FOR GREENER OPTIONS AND WAL-MART'S
GOAL IS TO MAKE THEM NOT PAY FOR GREENER OPTIONS. We don't think there's anything
incongruous between environmentally friendly products and great prices"

[Sidebar]
Big-box retailers The Home Depot (left) and Wal-Mart (above) put a big marketing push on their
eco-friendly goods with prints ads and flyers

[Sidebar]
"GREEN HAS GONE FROM A MOVEMENT TO A MARKET," says business and environmental
consultant Joel Makower

[Sidebar]
"THE EVIDENCE ABOUT HOW GLOBAL WARMING AFFECTS OUR LIFE EVERY DAY IS
THERE AND IT FEELS LIKE IT'S INDISPUTABLE. The environment is much more a part of
people's psyche"
IT'S NOT EASY BEING GREEN
Rachel Truman. B & T Weekly. Sydney: Mar 30, 2007. pg. 16

Abstract (Summary)

"Show me a marketer in Australia who wouldn't accept a 2% or 3% market share increase,"

says Pollinate director Howard Parry-Husbands. "This should be a blasting great ray of
sunshine through the murky pond of marketing."

 »  Jump to indexing (document details)

Full Text

 (1157  words)
Copyright Reed Business Information Pty Ltd, a division of Reed Elsevier Inc. Mar 30, 2007
It is no longer a case of 'if' brands should offer green alternatives but 'when', as
environmentally-minded consumers now vote with their feet. Brad Howarth reports.

limate change and sustainability burst into the national conscience during the first three
months of 2007. Armed with some knowledge from the documentary An Inconvenient Truth
and Australian author Tim Flannery's book The Weather Makers , Australians began to take a
more interpretive approach to events such as drought and storm activity.

The question for marketers is how far consumers are willing to take this newfound awareness,
and the extent that it will influence their brand choice.

According to the GreenPulse survey -carried out by the marketing research group Pollinate -
in both January and February of this year, 75% of Australians were 'very' or 'extremely
concerned'about the environment. Between 60% to 90% of Australians were either actively
choosing green consumer products or would like to chose green alternatives should they
become available.

"Show me a marketer in Australia who wouldn't accept a 2% or 3% market share increase,"

says Pollinate director Howard Parry-Husbands. "This should be a blasting great ray of
sunshine through the murky pond of marketing."

However, Parry-Husbands says outside of environmentally friendly cleaning products and

organic foods, there are few real green options that are widely available.

"The market is not meeting the demand that exists for green products,"Parry-Husbands says.
"There is an astonishing first-mover advantage here."

But few companies have been quick to react.

However, this could change following Earth Hour, a campaign by WWF-Australia and Fairfax
that is encouraging Sydney businesses and households to turn off their lights for one hour at
7.30pm on March 31 as a symbolic statement of their committment to reduce greenhouse gas
emmisions. With over 1,000 business signed up so far, the campaign by Leo Burnett looks set
to have an impact on business' environmental consciousness.

FORWARD THINKERS

Ironically, it is within the automotive and energy sectors - two areas that are responsible for
some of the highest emissions of CO2 gas - that the strongest action towards the
development of green products has occurred.

In the automotive sector this includes the release of hybrid petrol-electric cars by Toyota,
Nissan and Lexus, and the marketing of low-emission diesel vehicles by some European
manufacturers.

In the energy sector, BP has successfully built an image as a climate-friendly company

through its long-running investment in solar power systems. Australian companies Origin
Energy and TRUenergy have also won praise for retailing electricity that is derived entirely
from green sources such as wind and solar power.

Tony Wood, general manager of public and government affairs at Origin Energy, says his
company has around 160,000 customers using its green energy service - approximately 15%
of its total -despite the premium price that green energy entails.

"Our research tells us we have a higher level of loyalty with our green customers," Wood says.
"Churn in this industry is high, but this is one area where we can see some stickiness."

Wood says the company is cognisant that it is still responsible for the production of more than
30 million tonnes of CO2 annually. Because of this, the company is careful about how it
markets its green image, but is still lauded for the steps that it has taken.

"We are not purely a green company, we are a mainstream major energy company that has
identified climate change as the most significant issue that is facing us, and so we are
providing a range of choices to our customers," Wood says. "We see this as a continuing
opportunity and we will continue to run hard."

Origin Energy has launched a service that allows customers to purchase carbon credits to
offset emissions from activities such as transport and manufacturing, and it has signed the
National Australia Bank and the Australian Football League to this service.

The insurance industry is also responding quickly, as it is directly impacted by global warming
through the increased likelihood of natural disasters. The industry is engaged in determining
what climate-friendly processes it should adopt, and is offering practical advice to clients to
reduce emissions. On the financial services side Westpac is the market leader, according to
Pollinate's research (see page 19).

ALL TALK?

Amid the rush of companies to show off their new climate-friendly credentials comes the
danger that the public may tire or grow cynical of such attempts. There is also the risk of
'green-washing', whereby companies claim to be climate friendly without actually altering their
behaviour.

The Italian clothing designer Diesel has raised some ire with a global campaign showing post-
apocalyptic images such as a flooded New York and Mount Rushmore and a tropical Paris,
populated by models enjoying the new climates.

While the Diesel website includes links to the stopglobalwarming.org website, and a list of 10
things consumers could do to prevent global warming - most of them facetious - there is no
mention on the site of anything Diesel, as a significant user of manufacturing and transport
processes, is doing to reduce its own greenhouse emissions.

According to green products retailer Danin Kahn, the public is likely to grow cynical towards
companies whose green credentials extend no further than their marketing campaigns.
Kahn's company, Todae, operates a website and shop in the Sydney suburb of Glebe selling
environmentally friendly products, including solar and wind power generators. He says the
business was conceived from having as little impact on the environment as possible.

STAND AND DELIVER

"We are starting to see more companies taking a front-end approach, maybe sponsoring an
event or product, and claiming to be a green company, yet at the back end nothing has
changed,"Kahn says.

"When I receive a letter from a company that tells me all about its green policies, and I see
that it is not even printed on recycled paper, I wonder where the integrity of the message is."

Kahn says many companies will struggle to truly take a green position. Soft drink, for
example, will struggle to offset the power used in production, packaging, transport and
refrigeration.

"Unless they completely reinvent themselves, I find it difficult to see how companies like that
are going to be able to really do this," Kahn says.

Parry-Husbands agrees that among the opportunities presented by climate change, there are
also big opportunities for businesses to get it wrong.

He points to the example of Dell Computer in the US, which paid for a large number of
forestry carbon offsets, and then was criticised for these offsets not being sustainable or
properly accredited.

"It takes time and investment, but it should reap rewards if you do it properly," he says. The
simple way to avoid backlash is to deliver to your claim - it is as simple as that. The consumer
could possibly become quite jaded and cynical about this issue, in which case it is down to
companies to consistently deliver brands that are credible and trusted."