1

Chapter I: “ABSTRACT”:-

'I'll go out for a breath of fresh air' is an often-heard phrase. But how many of us

realize that this has become irrelevant in today's world, because the quality of air in

our cities is anything but fresh.

Green marketing is a phenomenon which has developed particular important in the

modern market. This concept has enabled for the re-marketing and packaging of

existing products which already adhere to such guidelines. Additionally, the

development of green marketing has opened the door of opportunity for companies

to co-brand their products into separate line, lauding the green-friendliness of some

while ignoring that of others. Such marketing techniques will be explained as a

direct result of movement in the minds of the consumer market. As a result of this

businesses have increased their rate of targeting consumers who are concerned

about the environment. These same consumers through their concern are interested

in integrating environmental issues into their purchasing decisions through their

incorporation into the process and content of the marketing strategy for whatever

product may be required. This topic discusses how businesses have increased their

rate of targeting green consumers, those who are concerned about the environment

and allow it to affect their purchasing decisions. The topic identifies the three

particular segments of green consumers and explores the challenges and

opportunities businesses have with green marketing. It also examines the present

trends of green marketing in India and describes the reason why companies are

adopting it and future of green marketing and concludes that green marketing is

something that will continuously grow in both practice and demand.

2

Chapter II: “LITERATURE REVIEW”:-

Cateora Graham, in International Marketing, has drawn a parallel line between

green marketing and product development. The author has cited a variety of

examples where the importance of green marketing has been laid focus on. Green

marketing is a term used to identify concern with the environmental consequences

of a variety of marketing activities. It very evident from the author‘s research and

examples the packaging and solid waste rules are burdensome but there are

successful cases of not only meeting local standards but also being able to transfer

this approach to other markets.

Philip Kotler and Kevin Lane Keller in Marketing Management has initiated the

topic by discussing about the relevance of green marketing in the past few decades

and has also discussed the explosion of environmentally friendly products. However,

according to the author from the branding perspective green marketing programs

have not been very successful. Marketers tried and failed with green sales pitches

over the last decade because of certain obstacles which the movement encountered.

The consumer behaviour is such that most consumers appear unwillingly to give up

the benefits of other alternatives to choose green products.

Along with definitions from different sources, the authors Debraj Dutta and Mahua

Dutta, of Marketing Management, have given an explanation of what is green

marketing. According to the authors green marketing incorporates a broad range of

activities including the modification of product, production process and packaging.

The authors have also discussed a few literature sources that have focused on green

marketing and its relevance in today‘s era. It was evident that the possible reasons

because of which organizations engage in green marketing.

K.K.Shrivastava & Sujata Khandai, the author of Consumer Behaviour in Indian

Context, has discussed green marketing legislation in association with the

multinational corporations. These face a growing variety of legislation designed to

address environmental issues. Global concern for the environment extends beyond

industrial pollution, hazardous waste disposal and rampant deforestation to include

issues that focus directly on consumer products.

3

Kenneth E. Clow & Donald Baack the authors of Integrated Advertising,

Promotion and Marketing Communication. According to the authors the

marketers need to be aware of the threats and opportunities associate with four

trends in the natural environment namely shortage of raw materials, increased cost

of energy, increased pollution levels and the changing roles of government. New

regulations hit certain industries very hard and also that consumers often appear

conflicted about the natural environment.

Jacquelyn A. Ottman the author of Green Marketing: Opportunity for

Innovation, has explained green marketing from an organizational standpoint,

environmental considerations should be integrated into all aspects of marketing

new product development and communications and all points in between. According

to the author environment should be balanced with primary customer needs. The

so-called "green consumer" movements in the U.S. and other countries have

struggled to reach critical mass and to remain in the forefront of shoppers' minds.

The lack of consensus by consumers, marketers, activists, regulators, and

influential people has slowed the growth of green products.

Prof. Sanjit Kumar Dash author of Green Marketing: Opportunities &

Challenges has mentioned that all activities designed to generate and facilitate any

exchange intended to satisfy human needs or wants such that satisfying of these

needs and wants occur with minimal detrimental input on the national

environment. The evolution of green marketing involves (three phases) from this

article. First phase was termed as "Ecological" green marketing, and during this

period all marketing activities were concerned to help environment problems and

provide remedies for environmental problems. Second phase was "Environmental"

green marketing and the focus shifted on clean technology that involved designing

of innovative new products, which take care of pollution and waste issues. Third

phase was "Sustainable" green marketing. It came into prominence in the late

1990s and early 2000.

4

Chapter III: “INTRODUCTION TO GREEN MARKETING”:-

The moment you step out of the house and are on the road you can actually see the

air getting polluted; a cloud of smoke from the exhaust of a bus, car, or a scooter;

smoke billowing from a factory chimney, fly ash generated by thermal power

plants, and speeding cars causing dust to rise from the roads. Natural phenomena

such as the eruption of a volcano and even someone smoking a cigarette can also

cause air pollution. Air pollution is aggravated because of four developments:

increasing traffic, growing cities, rapid economic development, and industrialization.

The Industrial Revolution in Europe in the 19th century saw the beginning of air

pollution as we know it today, which has gradually become a global problem. Air

pollution is nothing new. Ever since the discovery of fire, less-than-desirable

substances have been vented into the air. Every Govt. is trying to minimize this

problem. But regardless of the efforts, air pollution continues to be a serious local

and world-wide problem.

Although environmental issues influence all human activities, few academic

disciplines have integrated green issues into their literature. This is especially true

of marketing. As society becomes more concerned with the natural environment,

businesses have begun to modify their behaviour in an attempt to address society's

"new" concerns. Some businesses have been quick to accept concepts like

environmental management systems and waste minimization, and have integrated

environmental issues into all organizational activities.

The promotion of environmentally safe/ beneficial products, green marketing began

in Europe in the early 1980‘s when specific products were identified as being

harmful to the earth‘s atmosphere. As the result new ―green‖ products were

introduced that were less damaging to the environment. The concept caught on in

the United States and has been gaining steadily ever since.

5

Green marketing is also known as environmental marketing or sustainable

marketing. Divergent aspect of green marketing includes ecologically safer products,

recyclable and biodegradable packaging, energy efficient operations and better

pollution controls. Advances produced from green marketing include packaging

made from recycle paper, phosphate-free detergents, refillable containers for

cleaning products and bottle using less plastic.

As today‘s consumer become more and more conscious of natural products,

businesses are beginning to modify their own thoughts and behaviour in an attempt

to address the concerns of consumers. Green marketing is becoming more

important to businesses because of consumers‘ genuine concerns about our limited

resources on the earth. By implementing green marketing measures in order to save

the earth‘s resources in productions, packaging and operations, businesses are

showing consumers that they too share the same concern about environment,

boosting their credibility. Government has also taken certain initiatives by making

regulations relating to green marketing in order to protect the environment.

WHAT IS GREEN MARKETING?

Many people believe that green marketing refers solely to the promotion or

advertising of products with environmental characteristics. Generally terms like

Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally

Friendly are some of the things consumers most often associate with green

marketing. In general green marketing is a much broader concept, one that can be

applied to consumer goods, industrial goods and even services. For example,

around the world there are resorts that are beginning to promote themselves as

"ecotourism" facilities, i.e., facilities that specialize in experiencing nature or

operating in a fashion that minimizes their environmental impact.

6

Green marketing is the marketing of products that are presumed to be

environmentally safe. Thus green marketing incorporates a broad range of activities

including product modification, changes to the production process, packaging

changes, as well as modifying advertising. It is the process of selling products and

services based on their environmental benefits. Such a product or service may be

environmentally friendly in it or produced and/or packaged in an environmentally

friendly way.

Green marketing involves developing and promoting products and services that

satisfy customers want and need for Quality, Performance, Affordable Pricing and

Convenience without having a detrimental impact on the environment. The Obvious

assumption of green marketing is that potential consumers will view a product or

service's "greenness" as a benefit and base their buying decision accordingly.

According to Pride and Ferrell, ―Green Marketing alternatively known as

environmental marketing refers to an organization efforts at designing,

promoting, pricing and distributing products that will not harm the

environment”

According to Polonsky ,Green marketing is defined as "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.”

This definition incorporates much of the traditional components of the marketing

definition, that is "All activities designed to generate and facilitate any exchanges

intended to satisfy human needs or wants" Therefore it ensures that the interests of

the organization and all its consumers are protected, as voluntary exchange will not

take place unless both the buyer and seller mutually benefit.

7

Chapter IV: “HISTORY OF GREEN MARKETING”:-

The term Green Marketing came into prominence in the late 1980s and early

1990s.The American Marketing Association (AMA) held the first workshop on

"Ecological Marketing" in 1975.The proceedings of this workshop resulted in one of

the first books on green marketing entitled "Ecological Marketing‖

1) The first wave of Green Marketing occurred in the 1980s. Corporate Social

Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where

the financial report was supplemented by a greater view on the company's

environmental impact.

2) In 1987 a document prepared by the World Commission on Environment and

Development defined sustainable development as meeting "the needs of the present

without compromising the ability of future generations to meet their own need", this

became known as the Brundtland Report and was another step towards widespread

thinking on sustainability in everyday activity.

3) Two tangible milestones for wave of green marketing came in the form of

published books, both of which were called Green Marketing. They were by Ken

Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United

States of America.

In the years after 2000 a second wave of Green marketing emerged. By now CSR

and the Triple Bottom Line (TBL) were widespread. Such publications as a 2005

United Nations Report, then in 2006 a book by Al Gore and the UK Stern Report

brought scientific-environmental arguments to a wide public in an easy to

understand way.

8

Chapter V: “A-Z OF GREEN MARKETING”:-

Green marketing is the marketing of products that are presumed to be

environmentally safe. Thus green marketing incorporates a broad range of activities,

including product modification, changes to the production process, packaging

changes, as well as modifying advertising. Yet defining green marketing is not a

simple task where several meanings intersect and contradict each other; an

example of this will be the existence of varying social, environmental and retail

definitions attached to this term. Other similar terms used are Environmental

Marketing and Ecological Marketing.

MARKETING MIX OF GREEN MARKETING

9

1) GREEN PRODUCT

The products have to be developed depending on the needs of the customers who

prefer environment friendly products. Products can be made from recycled materials

or from used goods. Efficient products not only save water, energy and money, but

also reduce harmful effects on the environment. Green chemistry forms the growing

focus of product development. The marketer's role in product management includes

providing product designers with market-driven trends and customer requests for

green product attributes such as energy saving, organic, green chemicals, local

sourcing, etc., For example, Nike is the first among the shoe companies to market

itself as green. It is marketing its Air Jordan shoes as environment-friendly, as it

has significantly reduced the usage of harmful glue adhesives. It has designed this

variety of shoes to emphasize that it has reduced wastage and used environment-

friendly materials.

2) GREEN PRICE

Green pricing takes into consideration the people, planet and profit in a way that

takes care of the health of employees and communities and ensures efficient

productivity. Value can be added to it by changing its appearance, functionality and

through customization, etc. Wal-Mart unveiled its first recyclable cloth shopping

bag. IKEA started charging consumers when they opted for plastic bags and

encouraged people to shop using its "Big Blue Bag".

3) GREEN PLACE

Green place is about managing logistics to cut down on transportation emissions,

thereby in effect aiming at reducing the carbon footprint. For example, instead of

marketing an imported mango juice in India it can be licensed for local production.

This avoids shipping of the product from far away, thus reducing shipping cost and

more importantly, the consequent carbon emission by the ships and other modes of

transport.

10

4) GREEN PROMOTION

Green promotion involves configuring the tools of promotion, such as advertising,

marketing materials, signage, white papers, web sites, videos and presentations by

keeping people, planet and profits in mind. British petroleum (BP) displays gas

station which its sunflower motif and boasts of putting money into solar power.

Indian Tobacco Company has introduced environmental-friendly papers and

boards, which are free of elemental chlorine. Toyota is trying to push gas/electric

hybrid technology into much of its product line. It is also making the single largest

R&D investment in the every-elusive hydrogen car and promoting itself as the first

eco-friendly car company. International business machines Corporation (IBM) has

revealed a portfolio of green retail store technologies and services to help retailers

improve energy efficiency in their IT operations. The centre piece of this portfolio is

the IBM SurePOS 700, a point-of-sale system that, according to IBM, reduces power

consumption by 36% or more. We even see the names of retail outlets like "Reliance

Fresh", Fresh@Namdhari Fresh and Desi, which while selling fresh vegetables and

fruits, transmit an innate communication of green marketing.

Additional Social Marketing "P's" that are used in this process are as followed:

5) GREEN PUBLIC

Effective Social Marketing knows its audience, and can appeal to multiple groups of

people. "Public" is the external and internal groups involved in the program.

External publics include the target audience, secondary audiences, policymakers,

and gatekeepers, while the internal publics are those who are involved in some way

with either approval or implementation of the program.

6) GREEN PARTNERSHIP

Most social change issues, including "green" initiatives, are too complex for one

person or group to handle. Associating with other groups and initiatives to team up

strengthens the chance of efficacy.

11

12

A GREEN MARKET IN NEWCASTLE

A GREEN MARKET IN NEWYORK

13

WHAT ARE “GREEN PRODUCTS” OR “ENVIRONMENTAL PRODUCTS”

Although no consumer product has a zero impact on the environment, in business,

the terms ―green product‖ and ―environmental product‖ are used commonly to

describe those that strive to protect or enhance the natural environment by

conserving energy and/or resources and reducing or eliminating use of toxic agents,

pollution, and waste. Greener, more sustainable products need to dramatically

increase the productivity of natural resources, follow biological/ cyclical production

models, encourage dematerialization, and reinvest in and contribute to the planet‘s

―natural‖ capital. Escalating energy prices, concerns over foreign oil dependency,

and calls for energy conservation are creating business opportunities for energy-

efficient products, clean energy, and other environmentally sensitive innovations

and products.

ONE OF THE MOST COMMONLY USED GREEN PRODUCTS – THE

PHILIPS CFL

14

GREEN MARKETING: A CORPORATE INITIATIVE

It is important in today‘s world because mankind has limited resources on the earth

and if we want long term sustainability of human life on this earth‘s surface, then

companies has to learn to conserve these scarce natural resources and create

products that have less environmental damage. Otherwise the very existence of

humankind will be under question mark.

Corporate are going green from the grassroots level to sustain and win the

customers‘ expectations. The environment is becoming increasingly important part

of the corporate reputations and they are actively participating in greening the

corporate strategy. Companies have converted almost all the products to make them

eco-friendly products. Following are the recent environment friendly initiatives

taken by the companies.

Sony: Green “ODO” Line Products

15

Sony has recently launched developed and launched a range of innovative products

named as ―ODO‖ line products also called as Eco-chic. These products do not

require AC adapter as they were powered by kinetic or solar energy. Sony has used

simplified packaging and recycled plastic in the manufacturing of ODO products as

a ―Sustainable Product‖ initiative. The ODO line products comprise of five products:

1. Spin N Snap: The spin and snap is a digital camera. It has two holes

which are used as viewfinder and chargers. On spinning the camera on

ones fingers generates kinetic energy and charges the device.

2. Push Power Play: Push power play is a display device with a roller on

the base. The rollers are used to charge the device by the friction of the

device with hard surface.

3. Crank N’ Capture: Crank and Capture is a digital video camera with a

crank used to operate and generate power.

4. Pull and Play: The pull and play is a stereo headphone with a cord to

simply pull and use.

5. Juice Box: The juice box is a credit card sized object used to recharge

the other ODO products.

Sony has also added a new Twirl N Take hand powered digital camera to the odo

line series. Twirl N take digital camera has a sleek stem circle design. It is recharged

by rolling the round wheel on the hard surface.

16

IFC: Green Mutual Fun for Asia

The European countries are innovative new supports for actively involving the Asian

countries in green movement. Green Movement in Asian countries is growing at

slow pace as compare to other European and American countries. To support the

environment in Asian countries, IFC (International Finance Corporation), a member

of the World Bank, has recently announced a first investment plan of €15 million for

third party environment – focused private equity fund. Along with the IFC, Swedish

government risk capital company Swedfund and French development company

Prooarco will also invest euro 8 million and euro 5 million respectively in the same

fund. The fund will be managed by Aloe Private Equity. The funds will support the

companies in India and China which will focus on clean and renewable energy,

waste recycling, emissions controls, and eco-processes.

Maruti Suzuki

The company has remained ahead of regulatory requirements in pursuit of

environment protection and energy conservation at its manufacturing facilities, and

in development of products that use fewer natural resources and are environment

friendly. The company credited the 'Just-in-Time' philosophy adopted and

internalized by the employees as the prime reason that helped to excel in this

direction. The company has been promoting 3R since its inception. As a result the

company has not only been able to recycle 100% of treated waste water but also

reduced fresh water consumption. The company has implemented rain water

harvesting to recharge the aquifers. Also, recyclable packing for bought out

components is being actively promoted.

The company has been facilitating implementation of Environment Management

System (EMS) at its suppliers' end. Regular training programs are conducted for all

the suppliers on EMS. Surveys are conducted to assess the vendors who need more

guidance. The systems and the environmental performance of suppliers are audited.

The green co-efficient of this system is much better than the conventional system

17

The Country‘s largest car manufacturer had managed to slash energy consumption

per car at its Gurgaon factory by 26 per cent over the past six years, while its

carbon dioxide (CO2) emissions during car manufacturing processes has come

down 39 per cent in the past five years. The model with gas as fuel was adopted by

Maruti Suzuki India Limited as their Green Marketing practices.

Bharat Petroleum

Bharat Petroleum launched a campaign to position itself as a responsible corporate

‗green‘ entity. Foraying into renewable energy-solar and wind power-it installed solar

panels on its service stations. It also ran a program to cut production of greenhouse

gases by 10% across its units worldwide and achieved it much ahead of schedule.

Cleaner fuels such as Greener Diesel (ultra low sulphur content) and BP Auto gas

were developed. Almost all of its plants are ISO 14001 certified. Currently it is

running a program to contain its net emissions at current levels for ten years.

Hindustan petroleum

Hindustan petroleum owns a massive e-waste recycling plants, where enormous

shredders and granulators reduce four million pounds of computer detritus each

month to bite-sized chunks-the first step in reclaiming not just steel and plastic but

also toxic chemicals like mercury and even some precious metals. HP will take back

any brand of equipment; its own machines are 100 percent recyclable. It has

promised to cut energy consumption by 20 percent by 2010.

Proctor & Gamble

Laundry detergents are also touting energy savings. Proctor & Gamble‘s (P&G)

newest market entry, Tide Coldwater, is designed to clean clothes effectively in cold

water. About 80 to 85 percent of the energy used to wash clothes from heating

water. Working with utility companies, P and G found that consumers could save

energy and resources by using cold rather than warm water. As energy and

resource prices continue to soar, opportunities for products offering efficiency and

savings are destined for market growth.

18

ITC

ITC has been 'Carbon Positive‘ for three years in a row sequestering/storing twice

the amount of CO2 than the Company emits. It has been 'Water Positive' six years

in a row creating three times more Rainwater Harvesting potential than ITC's net

consumption. It has obtained close to 100% solid waste recycling. All Environment,

Health and Safety Management Systems in ITC conform to the best international

standards. ITC's businesses generate livelihoods for over 5 million people. ITC's

globally recognized e-Choupal initiative is the world's largest rural digital

infrastructure benefiting over 4 million farming families. ITC's Social and Farm

Forestry initiative has greened over 80,000 hectares creating an estimated 35

million person days of employment among the disadvantaged. ITC's Watershed

Development Initiative brings precious water to nearly 35,000 hectares of dry lands

and moisture-stressed areas. ITC's Sustainable Community Development initiatives

include women empowerment, supplementary education, integrated animal

husbandry programs.

WHY IS GREEN MARKETING IMPORTANT ?

The question of why green marketing has increased in importance is quite simple

and relies on the basic definition of Economics: ―Economics is the study of how

people use their limited resources to try to satisfy unlimited wants.‖

Thus mankind has limited resources on the earth, with which she/he must attempt

to provide for the worlds' unlimited wants. In market societies where there is

"freedom of choice", it has generally been accepted that individuals and

organizations have the right to attempt to have their wants satisfied. As firms face

limited natural resources, they must develop new or alternative ways of satisfying

these unlimited wants. Ultimately green marketing looks at how marketing activities

utilize these limited resources, while satisfying consumers wants, both of

individuals and industry, as well as achieving the selling organization's objectives.

19

WHY ARE FIRMS USING GREEN MARKETING?

When looking through the literature there are several suggested reasons for firms

increased use of Green Marketing. Five possible reasons cited are:

1. Organizations perceive environmental marketing to be an opportunity

that can be used to achieve its objectives;

2. Organizations believe they have a moral obligation to be more socially

responsible;

3. Governmental bodies are forcing firms to become more responsible;

4. Competitors' environmental activities pressure firms to change their

environmental marketing activities; and

5. Cost factors associated with waste disposal, or reductions in material

usage forces firms to modify their behaviour.

DELHI’S FAMOUS CNG AUTORICKSHAW

20

OPPORTUNITIES

It appears that all types of consumers, both individual and industrial are becoming

more concerned and aware about the natural environment. In a 1992 study of 16

countries, more than 50% of consumers in each country, other than Singapore,

indicated they were concerned about the environment. A 1994 study in Australia

found that 84.6% of the sample believed all individuals had a responsibility to care

for the environment. A further 80% of this sample indicated that they had modified

their behaviour, including their purchasing behaviour, due to environmental

reasons. As demands change, many firms see these changes as an opportunity to be

exploited.

Given these figures, it can be assumed that firms marketing goods with

environmental characteristics will have a competitive advantage over firms

marketing non-environmentally responsible alternatives. There are numerous

examples of firms who have strived to become more environmentally responsible, in

an attempt to better satisfy their consumer needs.

1) McDonald's replaced its clam shell packaging with waxed paper because

of increased consumer concern relating to polystyrene production and

Ozone depletion.

2) Tuna manufacturers modified their fishing techniques because of the

increased concern over driftnet fishing, and the resulting death of

dolphins.

3) Xerox introduced a "high quality" recycled photocopier paper in an

attempt to satisfy the demands of firms for less environmentally harmful

products.

This is not to imply that all firms who have undertaken environmental marketing

activities actually improve their behaviour. In some cases firms have misled

consumers in an attempt to gain market share. In other cases firms have jumped on

the green bandwagon without considering the accuracy of their behaviour, their

claims, or the effectiveness of their products.

21

SOCIAL RESPONSIBILITY

Many firms are beginning to realize that they are members of the wider community

and therefore must behave in an environmentally responsible fashion. This

translates into firms that believe they must achieve environmental objectives as well

as profit related objectives. This results in environmental issues being integrated

into the firm's corporate culture. Firms in this situation can take two perspectives;

1) They can use the fact that they are environmentally responsible as a

marketing tool; or

2) They can become responsible without promoting this fact.

There are examples of firms adopting both strategies. Organizations like the Body

Shop heavily promote the fact that they are environmentally responsible. While this

behavior is a competitive advantage, the firm was established specifically to offer

consumers environmentally responsible alternatives to conventional cosmetic

products. This philosophy is directly tied to the overall corporate culture, rather

than simply being a competitive tool.

SOME COMPANIES THAT USE GREEN MARKETING AS SOCIAL

RESPONSIBILITY

22

THE 3C’s OF MATKETING GREEN PRODUCTS

The analysis of past research and marketing strategies finds that successful green

products have avoided green marketing myopia by following three important

principles: “The Three Cs” of consumer value positioning, calibration of

consumer knowledge, and credibility of product claims.

1) Consumer Value Positioning

The marketing of successfully established green products showcases non-green

consumer value, and there are at least five desirable benefits commonly associated

with green products:

1.1. Efficiency and cost effectiveness;

1.2. Health and safety;

1.3. Performance;

1.4. Symbolism and status; and

1.5. Convenience.

Additionally, when these five consumer value propositions are not inherent in the

green product, successful green marketing programs bundle (that is, add to the

product design or market offering) desirable consumer value to broaden the green

product‘s appeal. In practice, the implication is that product designers and

marketers need to align environmental products‘ consumer value (such as money

savings) to relevant consumer market segments (for example, cost conscious

consumers).

1.1 Efficiency and Cost Effectiveness

The common inherent benefit of many green products is their potential energy and

resource efficiency. Given sky-rocketing energy prices and tax incentives for fuel-

efficient cars and energy saving home improvements and appliances, long-term

savings have convinced cost-conscious consumers to buy green.

23

Recently, the home appliance industry made great strides in developing energy

efficient products to achieve EPA‘s Energy Star rating. For example, Energy Star

refrigerators use at least 15 percent less energy and dishwashers use at least

percent less energy than do traditional models. Consequently, an Energy Star

product often commands a price premium. Whirlpool‘s popular Duet frontloading

washer and dryer, for example, cost more than $2,000, about double the price of

conventional units; however, the washers can save up to 12,000 gallons of water

and $110 on electricity annually compared to standard models (Energy Star does

not rate dryers). Laundry detergents are also touting energy savings. Procter &

Gamble‘s (P&G) newest market entry, Tide Coldwater, is designed to clean clothes

effectively in cold water. About 80 to 85 percent of the energy used to wash clothes

comes from heating water. Working with utility companies, P&G found that

consumers could save an average of $63 per year by using cold rather than warm

water. Adopting Tide Coldwater gives added confidence to consumers already

washing in cold water. As energy and resource prices continue to soar,

opportunities for products offering efficiency and savings are destined for market

growth.

1.2 Health and Safety

Concerns over exposure to toxic chemicals, hormones, or drugs in everyday

products have made health and safety important choice considerations, especially

among vulnerable consumers, such as pregnant women, children, and the elderly.

Because most environmental products are grown or designed to minimize or

eliminate the use of toxic agents and adulterating processes, market positioning on

consumer safety and health can achieve broad appeal among health-conscious

consumers. Sales of organic foods, for example, have grown considerably in the

wake of public fear over ―mad cow‖ disease; antibiotic- laced meats, mercury in fish,

and genetically modified foods. Mainstream appeal of organics is not derived from

marketers promoting the advantages of free-range animal ranching and pesticide

free soil. Rather, market positioning of organics as flavourful, healthy alternatives to

factory-farm foods has convinced consumers to pay a premium for them.

24

1.3 Performance

The conventional wisdom is that green products don’t work as well as “non-

green” ones. This is a legacy from the first generation of environmentally sensitive

products that clearly were inferior. Consumer perception of green cleaning agents

introduced in health food stores in the 1960s and 1970s, for example, was that

―they cost twice as much to remove half the grime.‖ Today, however, many green

products are designed to perform better than conventional ones and can command

a price premium. For example, in addition to energy efficiency, front-loading

washers clean better and are gentler on clothes compared to conventional top-

loading machines because they spin clothes in a motion similar to clothes driers

and use centrifugal force to pull dirt and water away from clothes. By contrast,

most top-loading washers use agitators to pull clothes through tanks of water,

reducing cleaning and increasing wear on clothes. Consequently, the efficiency and

high performance benefits of top-loading washers justify their premium prices.

Homeowners commonly build decks with cedar, redwood, or pressure-treated pine

(which historically was treated with toxic agents such as arsenic). Wood requires

stain or paint and periodic applications of chemical preservatives for maintenance.

Increasingly, however, composite deck material made from recycled milk jugs and

wood fibre, such as Weyerhaeuser‘s ChoiceDek, is marketed as the smarter

alternative. Composites are attractive, durable, and low maintenance. They do not

contain toxic chemicals and never need staining or chemical preservatives.

Accordingly, they command a price premium — as much as two to three times the

cost of pressure-treated pine and 15 percent more than cedar or redwood.

In sum, ―high performance‖ positioning can broaden green product appeal.

1.4 Symbolism and Status

As mentioned earlier, the Prius, Toyota‘s gas-electric hybrid, has come to epitomize

―green chic.‖ According to many automobile analysts, the cool-kid cachet that comes

with being an early adopter of the quirky-looking hybrid vehicle trend continues to

partly motivate sales. Establishing a green chic appeal, however, isn‘t easy.

According to popular culture experts, green marketing must appear grass-roots

25

driven and humorous without sounding preachy. To appeal to young people,

conservation and green consumption need the unsolicited endorsement of

high-profile celebrities and connection to cool technology. Prius has capitalized

on its evangelical following and high-tech image with some satirical ads, including a

television commercial comparing the hybrid with Neil Armstrong‘s moon landing

(―That‘s one small step on the accelerator, one giant leap for mankind‖) and product

placements in popular Hollywood films and sitcoms (such as Curb Your

Enthusiasm). More automobile analysts, the cool-kid cachet that comes with being

an early adopter of the quirky-looking hybrid vehicle trend continues to partly

motivate sales.

THE GREEN CHIC SYMBOL

26

In business, where office furniture symbolizes the cachet of corporate image and

status, the ergonomically designed ―Think‖ chair is marketed as the chair ―with a

brain and a conscience.‖ Produced by Steelcase, the world‘s largest office furniture

manufacturer, the Think chair embodies the latest in ―cradle to cradle‖ (C2C) design

and manufacturing. C2C, which describes products that can be ultimately returned

to technical or biological nutrients, encourages industrial designers to create

products free of harmful agents and processes that can be recycled easily into new

products (such as metals and plastics) or safely returned to the earth (such as

plant-based materials). Made without any known carcinogens, the Think chair is 99

percent recyclable; it disassembles with basic hand tools in about five minutes, and

parts are stamped with icons showing recycling options. Leveraging its award-

winning design and sleek comfort, the Think chair is positioned as symbolizing the

smart, socially responsible office. In sum, green products can be positioned as

status symbols.

1.5 Convenience

Many energy-efficient products offer inherent convenience benefits that can be

showcased for competitive advantage. CFL bulbs, for example, need infrequent

replacement and gas-electric hybrid cars require fewer refuelling stops—benefits

that are highlighted in their marketing communications. Another efficient

alternative to incandescent bulbs are light emitting diodes (LEDs): They are even

more efficient and longer-lasting than CFL bulbs; emit a clearer, brighter light; and

are virtually unbreakable even in cold and hot weather. LEDs are used in traffic

lights due to their high-performance convenience.

To encourage hybrid vehicle adoption, some states and cities are granting their

drivers the convenience of free parking and solo-occupant access to HOV lanes. A

Toyota spokesperson recently told the Los Angeles Times, ―Many customers are

telling us the carpool lane is the main reason for buying now.‖ Toyota highlights the

carpool benefit on its Prius Web site, and convenience has become an incentive to

drive efficient hybrid cars in traffic- congested states like California and Virginia.

Critics have charged, however, that such incentives clog carpool lanes and reinforce

a ―one car, one person‖ lifestyle over alternative transportation. In response, the

27

Virginia legislature has more recently enacted curbs on hybrid driver‘s use of HOV

lanes during peak hours, requiring three or more people per vehicle, except for

those that have been grandfathered in.

Solar power was once used only for supplying electricity in remote areas (for

example, while camping in the wilderness or boating or in homes situated off the

power grid). That convenience, however, is being exploited for other applications. In

landscaping, for example, self-contained solar-powered outdoor evening lights that

recharge automatically during the day eliminate the need for electrical hook-ups

and offer flexibility for reconfiguration. With society‘s increasing mobility and

reliance on electronics, solar power‘s convenience is also manifest in solar-powered

calculators, wrist watches, and other gadgets, eliminating worries over dying

batteries.

1.6 Bundling

Some green products do not offer any of the inherent five consumer desired

benefits noted above. This was the case when energy-efficient and CFC-free

refrigerators were introduced in China in the 1990s. While Chinese consumers

preferred and were willing to pay about 15 percent more for refrigerators that were

―energy efficient,‖ they did not connect the environmental advantage of ―CFC-free‖

with either energy efficiency or savings. Consequently, the ―CFC-free‖ feature had

little impact on purchase decisions. To encourage demand, the CFC-free feature was

bundled with attributes desired by Chinese consumers, which included energy

efficiency, savings, brand/quality, and outstanding after-sales service. Given

consumer demand for convenience, incorporating time-saving or ease-of- use

features into green products can further expand their mainstream acceptance.

Ford‘s hybrid Escape SUV comes with an optional 110-volt AC power outlet suitable

for work, tailgating, or camping. Convenience has also enhanced the appeal of

Interface‘s recyclable FLOR carpeting, which is marketed as ―practical, goof-proof,

and versatile.‖ FLOR comes in modular square tiles with four peel-and-stick dots on

the back for easy installation (and pull up for altering, recycling, or washing with

water in the sink). Modularity offers versatility to assemble tiles for a custom look.

Interface promotes the idea that its carpet tiles can be changed and reconfigured in

28

minutes to dress up a room for any occasion. The tiles come in pizza-style boxes for

storage, and ease of use is FLOR‘s primary consumer appeal.

Austin (Texas) Energy‘s ―Green Choice‖ program has led the US in renewable energy

sales for the past three years. In 2006, demand for wind energy outpaced supply so

that the utility resorted to selecting new ―Green Choice‖ subscribers by lottery.

While most utilities find it challenging to sell green electricity at a premium price on

its environmental merit, Austin Energy’s success comes from bundling three

benefits that appeal to commercial power users: First, Green Choice customers

are recognized in broadcast media for their corporate responsibility; second, the

green power is marketed as ―home grown,‖ appealing to Texan loyalties; and third,

the program offers a fixed price that is locked in for 10 years. Because wind power‘s

cost is derived primarily from the construction of wind farms and is not subject to

volatile fossil fuel costs, Austin Energy passes its inherent price stability onto its

Green Choice customers. Thus, companies participating in Green Choice enjoy the

predictability of their future energy costs in an otherwise volatile energy market.

The analysis suggests that successful green marketing programs have broadened

the consumer appeal of green products by convincing consumers of their ―non-

green‖ consumer value. The lesson for crafting effective green marketing

strategies is that planners need to identify the inherent consumer value of

green product attributes (for example, energy efficiency‘s inherent long-term

money savings) or bundle desired consumer value into green products (such as

fixed pricing of wind power) and to draw marketing attention to this consumer

value.

2. Calibration of Consumer Knowledge

Many of the successful green products in the analysis described here employ

compelling, educational marketing messages and slogans that connect green

product attributes with desired consumer value. That is, the marketing programs

successfully calibrated consumer knowledge to recognize the green product‘s

consumer benefits. In many instances, the environmental benefit was positioned as

secondary, if mentioned at all. Changes made in EPA‘s Energy Star logo provide an

example, illustrating the program‘s improved message calibration over the years.

29

One of Energy Star‘s early marketing messages, ―EPA Pollution Preventer,‖ was not

only ambiguous but myopically focused on pollution rather than a more

mainstream consumer benefit. A later promotional message, ―Saving The Earth.

Saving Your Money.‖ better associated energy efficiency with consumer value, and

one of its more recent slogans, ―Money Isn‘t All You‘re Saving,‖ touts economic

savings as the chief benefit. This newest slogan also encourages consumers to think

implicitly about what else they are ―saving‖—the logo‘s illustration of the Earth

suggests the answer, educating consumers that ―saving the Earth‖ can also meet

consumer self-interest.

The connection between environmental benefit and consumer value is evident in

Earthbound Farm Organics‘ slogan, ―Delicious produce is our business, but health

is our bottom line,‖ which communicates that pesticide-free produce is flavourful

and healthy. Likewise, Tide Cold water‘s ―Deep Clean. Save Green.‖ slogan not only

assures consumers of the detergent‘s cleaning performance, but the term ―green‖

offers a double meaning, connecting Tide‘s cost saving with its environmental

benefit. Citizen‘s solar-powered Eco-Drive watch‘s slogan, ―Unstoppable Calibre,‖

communicates the product‘s convenience and performance (that is, the battery will

not die) as well as prestige. Some compelling marketing communications educate

consumers to recognize green products as ―solutions‖ for their personal needs and

the environment. When introducing its Renewal brand, Rayovac positioned the

reusable alkaline batteries as a solution for heavy battery users and the

environment with concurrent ads touting ―How to save $150 on a CD player that

costs $100‖ and ―How to save 147 batteries from going to landfills.‖ Complementing

the money savings and landfill angles, another ad in the campaign featured sports

star Michael Jordan proclaiming, ―More Power. More Music. And More Game Time.‖

to connect Renewal batteries‘ performance to convenience. In practice, the analysis

conducted here suggests that advertising that draws attention to how the

environmental product benefit can deliver desired personal value can broaden

consumer acceptance of green products.

30

3. Credibility of Product Claims

Credibility is the foundation of effective green marketing. Green products must meet

or exceed consumer expectations by delivering their promised consumer value and

providing substantive environmental benefits. Often, consumers don‘t have the

expertise or ability to verify green products‘ environmental and consumer values,

creating misperceptions and scepticism. As exemplified in the case of Mobil‘s Hefty

photodegradable plastic trash bag described earlier, green marketing that touts a

product‘s or a company‘s environmental credentials can spark the scrutiny of

advocacy groups or regulators. For example, although it was approved by the U.S.

Food and Drug Administration, sugar substitute Splenda‘s ―Made from sugar, so it

tastes like sugar‖ slogan and claim of being ―natural‖ have been challenged by the

Sugar Association and Generation Green, a health advocacy group, as misleading

given that its processing results in a product that is ―unrecognizable as sugar.‖

3.1. Third Party Endorsements and Eco-Certifications

31

Expert third parties with respected standards for environmental testing (such as

independent laboratories, government agencies, private consultants, or nonprofit

advocacy organizations) can provide green product endorsements and/ or ―seals of

approval‖ to help clarify and bolster the believability of product claims. The ―Energy

Star‖ label, discussed earlier, is a common certification that distinguishes certain

electronic products as consuming up to 30 percent less energy than comparable

alternatives. The U.S. Department of Agriculture‘s ―USDA Organic‖ certifies the

production and handling of organic produce and dairy products.

Green Seal and Scientific Certification Systems emblems certify a broad spectrum of

green products. Green Seal sets specific criteria for various categories of products,

ranging from paints to cleaning agents to hotel properties, and for a fee, companies

can have their products evaluated and monitored annually for certification. Green

Seal has certified the Hyatt Regency in Washington, DC, for the hotel‘s

comprehensive energy and water conservation, recycling programs, and

environmental practices. By contrast, Scientific Certification Systems (SCS) certifies

specific product claims or provides a detailed ―eco-profile‖ for a product‘s

environmental impact for display on product labels for a broad array of products,

from agricultural products to fisheries to construction.

Although eco-certifications differentiate products and aid in consumer decision

making, they are not without controversy. The science behind eco-seals can appear

subjective and/or complex, and critics may take issue with certification criteria. For

example, Green Order, a New York-based environmental consulting firm, has

devised a scorecard to evaluate clean-tech products marketed in General Electric‘s

―Ecomagination‖ initiative, which range from fuel-efficient aircraft engines to wind

turbines to water treatment technologies. Only those passing Green Order‘s criteria

are marketed as Ecomagination products, but critics have questioned GE‘s

inclusion of ―cleaner coal‖ (that is, coal gasification for cleaner burning and

sequestration of carbon dioxide emissions) as an ―Ecomagination‖ product.

32

3.2. Word-of-Mouth Evangelism and the Internet

Increasingly, consumers have grown sceptical of commercial messages, and they‘re

turning to the collective wisdom and experience of their friends and peers about

products. Word-of-mouth or ―buzz‖ is perceived to be very credible, especially as

consumers consider and try to comprehend complex product innovations. The

Internet, through e-mail and its vast, accessible repository of information, Web

sites, search engines, blogs, product ratings sites, podcasts, and other digital

platforms, has opened significant opportunities for tapping consumers‘ social and

communication networks to diffuse credible ―word-of-mouth‖ (buzz facilitated by the

Internet) about green products. In 2005, Proctor & Gamble partnered with the non-

profit organization, the Alliance to Save Energy (ASE), in a ―viral marketing‖

campaign to spread news about the money-saving benefits of laundering clothes in

cold water with specially formulated Tide Coldwater. ASE provided credibility for the

detergent by auditing and backing P&G‘s claims that consumers could save an

average of $63 a year if they switched from warm to cold water washes. ASE sent e-

mail promotions encouraging consumers to visit Tide.com, an interactive Web site

and take the ―Coldwater Challenge‖ by registering to receive a free sample. Visitors

could calculate how much money they would save by using the detergent, learn

other energy-saving laundry tips, and refer email addresses of their friends to take

the challenge as well. Tide.com offered an engaging map of the United States where,

over time, visitors could track and watch their personal networks grow across the

country when their friends logged onto the site to request a free sample.

Given the immediacy of e-mail and the Internet, word-of-mouth is fast becoming an

important vehicle for spreading credible news about new products. According to the

Pew Internet & American Life Project, 44 percent of online U.S. adults (about 50

million Americans) are ―content creators,‖ meaning that they contribute to the

Internet via blogs, product recommendations, and reviews. To facilitate buzz,

however, marketers need to create credible messages, stories, and Web sites about

their products that are so compelling, interesting, and/or entertaining that

consumers will seek the information out and forward it to their friends and family.

The fact that P&G was able to achieve this for a low-involvement product is quite

remarkable.

33

STRATEGIES AND ADVANTAGES OF GREEN MARKETING

a. Minimize Direct Environmental Impact

b. Use Sustainable Sources of Raw Material

c. Source-Reduce Products and Packaging

d. Conserve Natural Resources, Habitats, and Endangered Species

e. Use Recycled Content

f. Make Products Energy Efficient

g. Maximize Consumer and Environmental Safety

h. Make Products More Durable

i. Make Products and Packaging Reusable or Refillable

j. Design Products for Remanufacturing, Recycling, and Repair

THE SEVEN STRATEGIES OF GREEN MARKETING SUCCESS

34

GREEN MARKETING MYOPIA

Green marketing must satisfy two objectives: improved environmental quality and

customer satisfaction. Misjudging either or overemphasizing the former at the

expense of the latter can be termed “green marketing myopia”. In 1960, Harvard

business professor Theodore Levitt introduced the concept of “marketing

myopia” in a now-famous and influential article in the Harvard Business Review. In

it, he characterized the common pitfall of companies‘ tunnel vision, which focused

on ―managing products‖ (that is, product features, functions, and efficient

production) instead of ―meeting customers‘ needs‖ (that is, adapting to consumer

expectations and anticipation of future desires).

35

Levitt warned that a corporate preoccupation on products rather than consumer

needs was doomed to failure because consumers select products and new

innovations that offer benefits they desire. Research indicates that many green

products have failed because of green marketing myopia—marketers‘ myopic focus

on their products‘ ―greenness‖ over the broader expectations of consumers or other

market players (such as regulators or activists).

AN EXAMPLE OF GREEN MARKETING MYOPIA

PHILIPS MARATHON BULBS

In 1994, Philips launched the ―Earthlight,‖ a super energy-efficient compact

fluorescent light (CFL) bulb designed to be an environmentally preferable substitute

for the traditional energy-intensive incandescent bulb. The CFL‘s clumsy shape,

however, was incompatible with most conventional lamps, and sales languished.

After studying consumer response, Philips reintroduced the product in 2000 under

the name ―Marathon,‖ to emphasize the bulb‘s five year life. New designs offered the

look and versatility of conventional incandescent light bulbs and the promise of

more than $20 in energy savings over the product‘s life span compared to

incandescent bulbs.

The new bulbs were also certified by the U.S. Environmental Protection Agency‘s

(EPA) Energy Star label. Repositioning CFL bulbs‘ features into advantages that

resonated with consumer values—convenience, ease-of-use, and credible cost

savings—ultimately sparked an annual sales growth of 12 percent in a mature

product market.

36

Philips‘ experience provides a valuable lesson on how to avoid the common pitfall of

―green marketing myopia.‖ Philips called its original entry ―Earthlight‖ to

communicate the CFL bulbs‘ environmental advantage. While noble, the benefit

appealed to only the deepest green niche of consumers. The vast majority of

consumers, however, will ask, ―If I use ‗green‘ products, what‘s in it for me?‖ In

practice, green appeals are not likely to attract mainstream consumers unless they

also offer a desirable benefit, such as cost-savings or improved product

performance. To avoid green marketing myopia, marketers must fulfil consumer

needs and interests beyond what is good for the environment. Thus we see how

green marketing myopia was faced by the Philips while trying to bring into market

the environment friendly light bulbs.

TOYOTA PRIUS

37

Consider the Toyota Prius, the gas-electric hybrid vehicle that achieves about 44

miles per gallon of gasoline. In recent years, Toyota‘s production has hardly kept

pace with the growing demand, with buyers enduring long waits and paying

thousands above the car‘s sticker price. Consequently, other carmakers have

scrambled to launch their own hybrids. However, despite higher gas prices, analysts

assert that it can take 5 to 20 years for lower gas expenses to offset many hybrid

cars‘ higher prices. Thus, economics alone cannot explain their growing popularity.

Analysts offer several reasons for the Prius‘ market demand. Initially, the buzz over

the Prius got a boost at the 2003 Academy Awards when celebrities such as

Cameron Diaz, Harrison Ford, Susan Sarandon, and Robin Williams abandoned

stretch limousines and oversized sport utility vehicles, arriving in Priuses to

symbolize support for reducing America‘s dependence on foreign oil. Since then, the

quirky-looking Prius‘ badge of ―conspicuous conservation‖ has satisfied many

drivers‘ desires to turn heads and make a statement about their social

responsibility, among them Google founders Larry Page and Sergey Brin,

columnist Arianna Huffington, comic Bill Maher, and Charles, Prince of Wales. The

Prius ultimately was named Motor Trend‘s Car of the Year in 2004. The trendy

appeal of the Prius illustrates that some green products can leverage consumer

desires for being distinctive. Others say the Prius is just fun to drive—the dazzling

digital dashboard that offers continuous feedback on fuel efficiency and other car

operations provides an entertaining driving experience. More recently, however, the

Prius has garnered fans for more practical reasons. A 2006 Maritz Poll finds that

owners purchased hybrids because of the convenience of fewer fill-ups, better

performance, and the enjoyment of driving the latest technology. In some states, the

Prius and other high-mileage hybrid vehicles, such as Honda‘s Insight, are granted

free parking and solo-occupancy access to high occupancy vehicle (HOV) lanes. In

sum, hybrid vehicles offer consumers several desirable benefits that are not

necessarily ―green‖ benefits.

38

SOME PROBLEMS WITH GOING GREEN

No matter why a firm uses green marketing there are a number of potential

problems that they must overcome. One of the main problems is that firms using

green marketing must ensure that their activities are not misleading to consumers

or industry, and do not breach any of the regulations or laws dealing with

environmental marketing. For example marketers in the US must ensure their green

marketing claims can meet the following set of criteria, in order to comply with the

FTC's guidelines. Green marketing claims must;

Clearly state environmental benefits;

Explain environmental characteristics;

Explain how benefits are achieved;

Ensure comparative differences are justified;

Ensure negative factors are taken into consideration; and

Only use meaningful terms and pictures.

Another problem firm‘s face is that those who modify their products due to

increased consumer concern must contend with the fact that consumers'

perceptions are sometimes not correct. Take for example the McDonald's case where

it has replaced its clam shells with plastic coated paper. There is ongoing scientific

debate which is more environmentally friendly. Some scientific evidence suggests

that when taking a cradle-to-grave approach, polystyrene is less environmentally

harmful. If this is the case McDonald's bowed to consumer pressure, yet has chosen

the more environmentally harmful option. When firms attempt to become socially

responsible, they may face the risk that the environmentally responsible action of

today will be found to be harmful in the future. Take for example the aerosol

industry which has switched from CFCs (chlorofluorocarbons) to HFCs

(hydrofluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms

now use DME (dimethyl ether) as an aerosol propellant, which may also harm the

ozone layer. Given the limited scientific knowledge at any point in time, it may be

impossible for a firm to be certain they have made the correct environmental

decision. This may explain why some firms, like Coca-Cola and Walt Disney World,

are becoming socially responsible without publicizing the point.

39

5 Reasons Why Green Marketing Is a New World

Unlike the physically bounded geographic world, the ―new frontiers‖ of marketing

are continually emerging for the next great advertising explorers. However, just as

Giovanni da Verrazano’s explorations led to his demise at the hands of

cannibalistic natives, overly audacious marketing adventures can be fatal; if not to

your life then to your product. The combination of ethical circumspection, smaller

budgets, and divergent markets for green products necessitate the abandonment of

old forms of marketing, while still playing it safe enough to avoid potentially lethal

detours. As with the emergence of any new enterprise, the flexibility of undefined

practices has put a penumbra over the efficacy and relevance of green marketing. To

succeed in making green marketing a reputable undertaking, boldly going where no

marketer has gone before is not only a prerogative, but an obligation.

The Use of New Formats

Utilizing the Internet

Branding of Green Products is More Difficult than Traditional Products

Green Marketing is a Niche Field, and Marketing Dollars Will Be Wasted

with Indiscriminate Advertising

Use the People Who Love Your Products to Promote Them, and Hear

From the Ones That Don‘t

CASES RELATED TO GREEN MARKETING

CASE 1: Best Green IT Project: State Bank of India: Green IT@SBI

By using eco and power friendly equipment in its 10,000 new ATMs, the banking

giant has not only saved power costs and earned carbon credits, but also set the

right example for others to follow.

SBI is also entered into green service known as ―Green Channel Counter‖. SBI is

providing many services like; paperless banking, no deposit slip, no withdrawal

form, no checks, no money transactions form all these transaction are done through

SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce

emissions: The State Bank of India became the first Indian bank to harness wind

energy through a 15-megawatt wind farm developed by Suzlon Energy. The wind

40

farm located in Coimbatore uses 10 Suzlon wind turbines, each with a capacity of

1.5 MW. The wind farm is spread across three states – Tamil Nadu, with 4.5 MW of

wind capacity; Maharashtra, with 9 MW; and Gujarat, with 1.5 MW. The wind

project is the first step in the State Bank of India's green banking program

dedicated to the reduction of its carbon footprint and promotion of energy efficient

processes, especially among the bank's clients.

CASE 2: Phillips’s "Marathon" CFL light bulb

Philips Lighting's first shot at marketing a standalone compact fluorescent light

(CFL) bulb was Earth Light, at $15 each versus 75 cents for incandescent bulbs.

The product had difficulty climbing out of its deep green niche. The company re-

launched the product as "Marathon," underscoring its new "super long life"

positioning and promise of saving $26 in energy costs over its five-year lifetime.

Finally, with the U.S. EPA's Energy Star label to add credibility as well as new

sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent

in an otherwise flat market

CASE 3: India's 1st Green Stadium

The Thyagaraja Stadium stands tall in the quiet residential colony behind the

Capital's famous INA Market. It was jointly dedicated by Union Sports Minister MS

Gill and Chief Minister Sheila Dikshit on Friday. Journal of Engineering, Science and

Management Education Dikshit said that the stadium is going to be the first green

stadium in India, which has taken a series of steps to ensure energy conservation

and this stadium has been constructed as per the green building concept with eco-

friendly materials.

CASE 4: Introduction of CNG in Delhi

New Delhi, capital of India, was being polluted at a very fast pace until Supreme

Court of India forced a change to alternative fuels. In 2002, a directive was issued to

completely adopt CNG in all public transport systems to curb pollution.

41

GREEN BRANDS

Green brands are those brands that consumers associate with environmental

conservation and sustainable business practices. Such brands appeal to consumers

who are becoming more aware of the need to protect the environment. A green

brand can add a unique selling point to a product and can boost corporate image.

However, if a company is found or perceived to overstate its green practices its green

brand may be criticized as “green wash”.

GREEN WASHING

In spite of its growing popularity, the green marketing movement faced serious

setbacks in the late 1980s because many industries made false claims about their

products and services. For instance, the environmental organization Corp Watch ,

which issues annually a list of the top ten "green washing" companies, included BP

Amoco for advertising its "Plug in the Sun" program, in which the company installed

solar panels in two hundred gas stations, while continuing to aggressively lobby to

drill for oil in the Arctic National Wildlife Refuge. Green marketing can be a very

powerful marketing strategy though when it's done right. In a similar kind of case

Chad‘s green marketing campaign bombed because he made the mistake of

packaging his environmentally friendly product in Styrofoam, emitting CFC‘s.

Without environmental labelling standards, consumers could not tell which

products and services were truly beneficial. Consumers ended up paying extra for

misrepresented products. The media came up with the term "green washing" to

describe cases where organizations misrepresented themselves as environmentally

responsible. So, While green marketing was growing greatly as increasing numbers

of consumers were willing to back their environmental consciousnesses with their

dollars, it can be dangerous. The public tends to be sceptical of green claims to

begin with and companies can seriously damage their brands and their sales if a

green claim is discovered to be false or contradicted by a company's other products

or practices. Thus, in other words presenting a product or service as green when it's

not is called green washing.

42

GREEN PACKAGING

Green packaging is not just about reducing the amount of packaging but takes

package design, processing, disposal conditions and the entire product lifecycle into

consideration. Some of characteristics of sustainable packaging include:

1. Minimizing the amount of packaging used (weight and volume)

2. Minimizing the energy used for production and transportation of goods

3. Using packaging that can be reused again, such as bottles and refillable

ink cartridges

4. Using recycled and recyclable materials

5. Using biodegradable materials

The Cradle to Cradle Approach

43

Cradle to Cradle Certification is carried out by McDonough Braungart Design

Chemistry (MBDC) consultants. The cradle to cradle concept holds that it is

possible to have products that follow the natural principles of regeneration and

create zero waste products. Each product is believed to consist of 2 components the

technical nutrients and biological nutrients. The technical nutrient can be reused

without degradation into an inferior product while the biological nutrient is

returned to nature at the end of its useful life. Besides being earth friendly, this

approach can lower costs for organizations and do away with the need for landfills.

Different Types of Sustainable Packaging

Sustainable packaging is made of recycled products, recyclable products,

biodegradable material and renewable raw materials. Some types of sustainable

packaging products are described below. The list is indicative and not exhaustive.

Packaging made out of recycled source material

Paper – is light weight, easy to print and can be recycled multiple times

by using relatively little energy. However, the chemicals used to bleach

paper may not be environmentally friendly and the replacement of forests

by monocultures reduces biological diversity. Unbleached, post

consumer waste paper is the best.

Glass Uses the least energy per pound to recycle. Additionally it is

chemically inert and can be recycled almost infinitely without degrading.

The disadvantage is that it is heavy and breakable.

Aluminium Is easy to recycle and can be moulded to almost any shape.

On the flip side mining for aluminium ore and aluminium manufacture

are highly energy intensive processes.

Synthetic biodegradable polyesters

These advanced materials are moisture resistant, and disintegrate in 12 weeks

under aerobic conditions. They are often used as a coating for protecting cheaper

biodegradable materials.

44

5 ways of making your packaging greener

1. Reduce packaging The ideal packaging is no packaging. Reduced

packaging translates to cost savings in material costs, transportation

and disposal.

2. Recycled material is better than recyclable products a recyclable

product may or may not be recycled. A recycled product on the other

hand has been recycled and therefore has a smaller ecological footprint.

3. Use Biodegradable materials Biodegradable plastics and polyesters are

available and so are paper containers, paper nuts, etc.

4. Do not mix products that are incompatible for recycling If two or

more polymers are used in making a package it may not be possible to

recycle the package. If you must use plastics try to stick to one single

plastic so that it is easy to recycle.

5. Design packages with other functional attributes A food container

shaped as a toy or a puzzle box that can double up as an ornament store

can ensure that packaging does not end up in landfills.

Choose the right partner – Green your packaging

Be Green Packaging

Be Green Packaging LLC is based out of Santa Barbara. The company provides

cradle to cradle certified, compostable packaging made from bulrush an annually

renewed plant. These packages are free from tree products and are made from

bulrush plants harvested from the wild and not cultivated commercially. The impact

on the biodiversity of the planet is therefore minimal. Some of the products that

need a cover have been provided with clear 100% recyclable PETE lids.

45

Green Cell Foam

Green Cell Foam provides coolers and other packaging solutions made from corn.

These can be easily composted, recycled or burnt safely. The natural material has

been used by Pharmaceutical companies like Sandoz, computer manufacturers and

automobile manufacturer Volvo to minimize their environmental impact. The

product is used for transporting heavy items like windshields on one hand and

delicate play station games on the other.

Globe Guard Products

Based out of Plainfield, Illinois, Globe Guard Products supplies reusable boxes,

100% recyclable poly padded paper, corrugated mailers made of 100% recycled

material, post consumer waste recycled paper labels, Oxodegradable stretch film,

eco friendly cushioning products and even gift bags made of treeless paper. Green

Packaging is available for almost every application.

46

GREEN LOGISTICS

Logistics is the integrated management of all the activities required to move

products through the supply chain. For a typical product this supply chain extends

from a raw material source through the production and distribution system to the

point of consumption and the associated reverse logistics. The logistical activities

comprise freight transport, storage, inventory management, materials handling and

all the related information processing.

The main objective of logistics is to co-ordinate these activities in a way that meets

customer requirements at minimum cost. In the past this cost has been defined in

purely monetary terms. As concern for the environment rises, companies must take

more account of the external costs of logistics associated mainly with climate

change, air pollution, noise, vibration and accidents. This research project is

examining ways of reducing these externalities and achieving a more sustainable

balance between economic, environmental and social objectives.

47

Chapter VI: “PRESENCE OF GREENNESS IN INDUSTRIES”:-

To make products and services green the industries need to focus on bringing the

green in various aspects such as:

Supply Chain

Packaging

Raw Material

Product Innovations

Services

It is not enough just to develop a brand or a logo, or invest in an advertising

campaign, and then position a product as Green before consumers. Like any other

new concept, marketers must first educate the public about going green, ensure

product credibility, and establish trust. Moreover, since ―Green‖ aspect of the

product is not a tangible attribute that the consumers receive the consumer has to

be convinced about the benefits of the green benefits of the product. It is also

important to understand how companies across the globe are innovating and

creating ―Green‖ products.

“GREEN” IN SUPPLY CHAIN

Example: McDonald’s is often blamed for polluting the environment because

much of their packaging finishes up as roadside waste. It must be remembered that

it is the uncaring consumer who chooses to dispose of their waste in an

inappropriate fashion. With the intent to cut costs and work on eco-friendly image

and practices McDonald‘s tried to reduce the amount of material disposed by its

stores. McDonalds asked the supplier to do away with the cartons for napkins. The

supplier suggested a better way and came up with dimpling pattern on napkins,

which enabled the supplier to pack 25% more napkins in one box and reduction in

shipping cost accordingly. McDonalds also allied with Environment Defence Fund

(EDF) and created a waste reduction plan. It also made a Paper Task Force to focus

on paper waste reduction and better solid waste management.

48

“GREEN” IN PACKAGING

Packaging is a key element of marketing mix for promoting ―Green washing‖. It can

also be an effective tool to display the ―Green‖ component of the product.

Natural Package for a Natural Product

When creating product materials, markets need to remember that a ―Green‖ product

is appealing to consumers for its benefits to the environment and for its roots in

natural resources. There should be a consistent look for the product package, or

materials that appear natural, not glossy or extravagant. ―Green‖ consumers tend to

appreciate consistence in package and product. They will appreciate the usage of

recycled paper and other environment friendly materials. That will help

manufacturers/suppliers gain customer loyalty and product credibility.

Third Party Certification Seal on Package

In order to win consumer trust and for product credibility many companies go in for

a third party certification. This helps build trust and acceptability by the consumer.

A third party seal guarantees the consumer that the product fulfils its promise and

is true to his claim. One such third party in the USA is the Green-e Program of the

Centre for Resource Solutions. Certification provides an independent third-party

review of the program similar to the ISO 9000 or CMMI Six Sigma level of

certifications, which mat help build consumer confidence. Once a green product

earns certification, they can publicize this achievement and promote their

certification through the use of the Green-e logo on their marketing materials and

website.

“GREEN RAW MATERIAL”

This refers to using recycled material or using material, which does not have a

negative impact on natural resources like resulting in problems such as

deforestation and pollution.

Example: Gridcore Systems International – demonstrated the use of Recycled

Building Material. The company was looking for an alternative building material in-

order to reduce the impact on environment. While researching they discovered

49

space board, a new type of building panel developed by the Forest Products

laboratory. Space board can be manufactured from various recycled or agricultural

fibres, and due to a honeycomb the interior design is just as strong as and several

times lighter than conventional fibreboard.

“GREEN” IN PRODUCT INNOVATION / DEVELOPMENT

This refers to either environment friendly or environment efficient products as

demonstrated by the following examples.

Example: Kodak’s Recyclable Camera When Kodak created its first disposable

camera it also solved the waste disposal problem by initiating a ‗camera take back‘

scheme during picture processing. This not only reduced the waste disposable

problem, it also saved Kodak the manufacturing costs for new cameras. This made

it completely recycled camera.

Example: Philips Earthlight Compact Fluorescent Light Bulbs With relentless

efforts on research and development the company was successful in producing

compact fluorescent light bulbs, which are the most energy efficient bulbs.

“GREEN” IN SERVICES

With increased demand for value-based marketing, there is also growing demand of

―Green‖ services. Global customers are not only interested in cost cutting through

outsourcing but are also looking for energy efficient IT operations.

Example: ITC InfoTech is a good example to understand how to package the

services ―Green‖ ITC InfoTech is a Bangalore based independent Subsidiary of ITC

Ltd. At corporate level ITC is working to establish itself as a carbon free company.

The company is working on ―Triple Bottom Line‖ i.e. social, economic and

environmental capital. The company is involved in many community driven

initiatives. It is one of the 10 companies globally and first one from India to start

publishing sustainability report in compliance with G3 guidelines of Global

Reporting Initiative. The company is investing in large-scale plantations to wash

away its carbon positive image. It is also focusing on water harvesting and working

towards zero solid waste by recycling.

50

Chapter VII: “SWOT ANALYSIS OF GREEN MARKETING

STRATEGY”:-

STRENGTHS

1. Marketers get access to new markets and gain an advantage over

competitors that are not focusing on ―greenness.‖

2. Marketers can charge a premium on products that are seen as more eco-

responsible.

3. Organizations that adopt green marketing are perceived to be more

socially responsible.

4. Green marketing builds brand equity and wins brand loyalty among

customers.

WEAKNESS

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

environment.

2. Overemphasizing greenness rather than customer needs can prove

devastating for a product.

3. Many customers keep away from products labelled ―Green‖ because they

see such labelling as a marketing gimmick, and they may lose trust in an

organization that suddenly claims to be green.

51

OPPORTUNITIES

1. Marketing to segment which are becoming more environmentally aware

and concerned. These consumers are demanding products that conform

to these new attitudes.

2. Organizations perceive green marketing to be a competitive advantage,

relative to the competitors.

THREATS

1. Uncertainty as to the environmental impact of present activities,

including that is perceived to be less environmentally harmful.

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

government perspective.

3. The possibility of a backlash from consumers or government based on

existing green marketing claims, threat one and two above may cause

backlash to arise.

52

Chapter VIII: “PROBLEMS WITH GREEN MARKETING”:-

There are a number of potential problems that must overcome. One of the main

problems is that firms using green marketing must ensure that their activities are

not misleading to consumers or industry, and do not breach any of the regulations

or laws dealing with environmental marketing. Green marketing claims must clearly

state environmental benefits.

A problem of the firms face is that those who modify their products due to increased

consumer concern must contend with the fact that consumers' perceptions are

sometimes not correct. For example the McDonald's case where it has replaced its

clam shells with plastic coated paper. There is ongoing scientific debate which is

more environmentally friendly. Some scientific evidence suggests that when taking a

cradle to grave approach, polystyrene is less environmentally harmful if this is the

case McDonald's bowed to consumer pressure, yet has chosen the more

environmentally harmful option.

When firms attempt to become socially responsible, they may face the risk that the

environmentally responsible action of today will be found to be harmful in the

future. Take for example the aerosol industry which has switched from CFCs

(chlorofluorocarbons) to HFCs (hydro fluorocarbons) only to be told HFCs are also a

greenhouse gas. Some firms now use DME (di-methyl ether) as an aerosol

propellant, which may also harm the ozone layer. Given the limited scientific

knowledge at any point, it may be impossible for a firm to have made the correct

environmental decision. This may explain why some firms, like Coca-Cola and Walt

Disney World, are becoming socially responsible without publicizing the point. They

may be protecting themselves from potential future negative backlash; if it is

determined they made the wrong decision in the past.

While governmental regulation is designed to give consumers the opportunity to

make better decisions or to motivate them to be more environmentally responsible,

there is difficulty in establishing policies that will address all environmental issues.

For example, guidelines developed to control environmental marketing address only

a very narrow set of issues, i.e., the truthfulness of environmental marketing

53

claims. If governments want to modify consumer behavior they need to establish a

different set of regulations. Thus governmental attempts to protect the environment

may result in a proliferation of regulations and guidelines, with no one central

controlling body. Reacting to competitive pressures can cause all "followers" to make

the same mistake as the "leader." Mobil Corporation who has followed the

competition and introduced "biodegradable" plastic garbage bags, as because

technically these bags were biodegradable, the conditions under which they were

disposed did not allow biodegradation to occur. Mobil was sued by several US states

for using misleading advertising claims. Thus blindly following the competition can

have costly ramifications. The push to reduce costs or increase profits may not force

firms to address the important issue of environmental degradation. End-of-pipe

solutions may not actually reduce the waste but rather shift it around. While this

may be beneficial, it does not necessarily address the larger environmental problem,

though it may minimize its short term affects. Ultimately most waste produced will

enter the waste stream, therefore to be environmentally responsible organizations

should attempt to minimize their waste, rather than find "appropriate" uses for it.

Problems associated with each market segment

Segment 1: Consumer Segment

Consumers may express more concern about the ecology, but they continues to buy

large luxury cars, relatively few recycle voluntarily, and most importantly, economic

issued continue to dominate political campaigns.

Researcher fail to see why people must pay a hefty premium for biodegradable baby

wipes that can be flushed down the toilet or coffee filters that aren‘t bleached. It

raised a point in the mind of researcher that demand for green products does exist,

and people are willing to pay if they don‘t feel they‘re being ripped off. Bank and

credit card companies persuade customers to get paperless statements to save

trees, but then charge a fee for accessing statements via software.

While competition is inevitable in any business endeavour, the presence of stricter

regulations and public policies can aggravate the situation. This emanates primarily

from misleading statements and claims of products being environment friendly. In

54

particular, there are a number of criticisms regarding the ―marketing ploy‖ of

degradable trash bags. Manufacturers claim that it is not their fault if consumers

are uniformed. Hence, consumers must interpret the degradability of these

products. Debate of this nature has led to stricter policies and governing bodies.

Segment 2: Government Segment

Tackling India‘s environment crisis is likely to be a difficult proposition for any

government. Indian government has much to do for addressing their environmental

issues as compared to its European or American counterparts requiring

environmental and social assessments for entire sectors. India does have a system

of environmental impact assessments being mandatory for most ‗development‘

projects.

The western Ghats are not only valuable from the point of view of the timber and

non-timber forest produce they contain, but even more so for the enormous water

security they provide to the plains in Karnataka, Kerala, Maharashtra, Goa , and

Tamil nadu, not speak of their potential genetic values. Yet none of these values

integrate when decisions are taken about land use in the Western Ghats. On the

contrary, cutting trees for timber appears as a positive contribution (as revenue) in

the budget figures, and there is no corresponding debit entry on the resulting loss of

ecosystem benefits.

In India, the central government does not maintain such a centralized database and

even the data that it has on companies is not easily available to public accessibility.

Moreover, within the environmental community, there is a very little credibility in

data being supplied to the government. The government should not only provide the

legislation regarding ―environment‖ and ―Green Marketing practices‖ but also

ensure that these are enforced. The government should adopt carrot and stick

approach for the organizations i.e. rewarding organizations with good EMP‘s and

imposing penalty on the erring ones. Formation of an environmental award just like

Rajiv Gandhi Quality Award would be a good step.

55

Segment 3: Private Industry Segment.

Within private industry, many companies are currently undertaking environmental

control and recycling programs. E.G. ITC, Philips, Electrolux, Toyota, J&J, Orchid

Hotel. The aforementioned programs and policies imply capital expenditures for

their installation and maintenance. When looking through the literature there are

several suggested reasons for firms increased use of green marketing. Five possible

reasons cited are: organizations perceive environmental marketing to be an

opportunity that can be used to achieve its objectives, moral responsibility to be an

opportunity that can be used to achieve its objectives, moral responsibility to be

socially responsible, governmental pressure, competitors environmental activities,

and costs factors associated with waste disposal, or reductions in material usage

forces firma to modify their behaviour.

Segment 4: Non-Profit Organization

While not a particularly lucrative group, this segment may be especially appealing

for companies that provide recycling and waste disposal services. Since part of the

green dilemma is rooted in the reduction of waste, business connected with waste

disposal will find this segment a viable customer. However, because this segment

often operates as non-profit institutions, budgetary constraints will limit the extent

to which they will be able to expend rupees for waste reduction purposes.

Nonetheless, if the trend of environment – related regulatory policies continue,

hospitals and universities (among others) will have no choice but to allocate part of

their budget for waste reduction purposes.

The NGOs must work hard in hand with the central as well as state government to

stop environmental degradation such as illegal felling of trees for commercial

purpose. It is suggested that NGOs, rather than partnering with the individual

companies and opening themselves to the criticism of ―bedding with the devil‖ would

be better to partner trade and professional organizations.

56

Chapter IX: “PUBLIC OPINION ON GREEN MARKETING”:-

1) Now eco packaging is poised to become the next low-hanging fruit of the clean

tech world. Investors and entrepreneurs this week at Europe's most important

annual clean tech conference reported unprecedented interest in reducing the use

of raw materials while finding superior protection for food and other products.

2) Consumers are increasingly putting plastic shopping bags and non-green

wrapping items on their naughty list, according to Deloitte's 2008 Annual Holiday

Survey. Nearly half of the 13,000 consumers polled said they'd be willing to pay

more for green gifts.

3) Consumers perceive themselves as being environmentally responsible. Successful

green marketing requires matching a company's brand attributes with its

customers' identity as "green." An article suggested examining green marketing from

the perspective of the 4 P's of marketing -- product, price, placement and promotion

-- plus a 5th P, "prove it."

4) Americans are quick to identify polluting companies as "socially irresponsible"

and make their purchasing decisions accordingly, says a new survey. The poll also

found that American consumers between the ages of 18-29 are more likely to spend

more on organic, environmentally preferable or fair trade products than other age

groups.

5) The survey, by the research firm Global Market Insight, quizzed more than

15,000 online consumers in the U.S. and 16 other countries about their socially

conscious business practices.

6) Americans placed the highest value on corporate community involvement; when

asked what factor was the most important in determining if a business is socially

responsible, "contributing to the community" (e.g. sponsorship, grants, employee

volunteer programs) came in highest with 47%. On the other hand, all of the other

countries surveyed (India, Canada, Australia, Germany, China, and Japan) selected

environmentally preferable practices (recycling, using biodegradable products) as

the top factor.

57

7) "In the high-tech era where employees are expected to work 24/7, it's significant

that Americans rate giving back to the community as their top priority in

recognizing socially responsible companies," said Marjorie Thompson, co-author of

Brand Spirit: How Cause Related Marketing Builds Brands. "It shows that people

want to feel connected to each other and that they are willing to reward businesses

who tap into this sense of mutual support and belonging. Companies will need to

start thinking of their community programs as core to their businesses and

brands.‖

8) Not surprising, the U.S., along with other countries such as India and China,

which have experienced environmental disasters caused by corporations (e.g. Love

Canal, Exxon Valdez) or have had to deal with major polluting issues (e.g. coal

plants, manufacturing), believe that damaging the environment is associated with

acting socially irresponsible.

9) Thompson adds: "Based on the findings, Generation Y is obviously more

environmentally conscious and socially savvy, which is expected given that many

are aware of the issues surrounding globalization and trade and how this can

negatively affect the environment, labor pool and the local communities."

10) Surprisingly, a large majority of online consumers in the less developed

countries of China and India, 91% and 71% respectively, will pay more for socially

responsible products, while almost half (47%) of the U.K. respondents indicated

they would spend more for these types of goods.

58

Chapter X: “OPPORTUNITIES IN GREEN MARKETING”:-

Equipped with a better grasp of ecological issues, enlightened businesspeople

voluntarily adopt environmentally responsible business practices. A growing

number of CEOs now appreciate the link between environmental responsibility and

more efficient - and profitable - business practices. And more and more business

communicators know how to use green marketing strategies to take advantage of

opportunities to boost their corporate environmental images.

MORE PROFITS

Many companies, and especially those in such highly polluting industries as

chemicals, oil, and electrical power generation, now have management systems in

place to make sure corporate environmental profiles and products exceed

consumers‘ expectations. Today, major U.S. corporations conduct environmental

audits and recycle their waste. Countless others upgrade their facilities with energy-

efficient technologies. Such steps reduce operating costs and liability while boosting

profits. Producing eco-efficient products creates less waste, uses fewer raw

materials and saves energy, too. Thanks to innovative manufacturing processes

suggested by highly motivated and environmentally trained employees, Interface,

the world's largest producer of commercial carpeting, projects a savings of more

than $35 million by the end of 1997. The changes required for making and

marketing environmentally sensitive products enhances employee morale and

productivity with a payoff in improved customer relations and overall returns on

investment. Enhanced corporate imagery ensues, and this can help attract investors

and top talent.

COMPETITIVE ADVANTAGE

Many marketers now know that being the first to the shelf with an environmental

innovation brings competitive advantage. Since 1993, Rayovac introduced Renewal

brand reusable alkaline batteries and redefined the market for re-chargeable. With

50 percent of the production capacity for phosphate detergents, German-based

Henkel pioneered the market for zeolites and claimed market leadership when their

consumers shifted to phosphate-free detergents. Philips Lighting, inventors of

59

compact fluorescent lighting technology, stood ready when businesses and electric

power utilities came calling for replacements for energy-guzzling incandescent.

Wellman, Inc. has expanded its business definition from plastics recycler to

pioneers in the market for branded polyester fibber made from used Coke bottles.

Many of these leaders have been showered with any number of eco-accolades now

offered by industry, media, government or environmental groups. One example is

the Special Edison Award for Environmental Achievement bestowed by the

American Marketing Association. It has been won by Fortune 1000 firms including

3M and Procter and Gamble as well as by a raft of up-and-coming firms with a

deep-green orientation like Natural Cotton Colours, Patagonia, and Tom‘s of Maine.

Young, aggressive competitors adept at capturing the imaginations and winning the

hearts of highly desirable environmentally and socially conscious customers are

introducing some of the most exciting green products. The success of Patagonia

outerwear, Stony field Farm Yogurt, and Tom‘s of Maine toothpaste suggest that

consumers now have higher expectations for the products they buy and that quality

is an image that no longer stands apart from environmental impact.

Looking to cash in on the potential for future green-oriented sales, well-established

mass marketers now shop for green companies with promising green brands; recent

acquisitions include Earth‘s Best Baby Foods (by Heinz), Murphy‘s Oil Soap

(Colgate- Palmolive), Earth Rite Cleaning Products (Reckitt & Colman). After nearly

two decades of compromising on quality –and languishing on once-dusty health

food store shelves as a result–today‘s crop of green products finally embody all that

consumers demand: an opportunity to clean up the mess without having to give up

price or quality. With the deepened consumer confidence in green products that

results, the market becomes legitimized.

PERSONAL REWARDS

Green marketing offers a rare opportunity to integrate one‘s values into the

workplace. Creating products that are more in sync with nature allows one to

personally contribute to environmental cleanup and help ensure a more secure

future for our children. A mind once expanded never goes back to where it was. No

60

longer content to promise consumers that their clothes will become "whiter than

white" or breath that is "fresher than fresh", green marketers–like their bosses who

manage for a double bottom line–cultivate higher levels of satisfaction and reward.

They offer their consumers the prospect of healthier, more fulfilled lives, and the

power to make the world a better place.

BETTER PRODUCTS

While much brand switching is conducted in the name of altruism, what attracts

many consumers to greener products is quite simply the prospect of higher quality:

water-saving showerheads slash energy bills, concentrated laundry detergents are

easier to carry and store, and nontoxic garden products are safer for children.

Except these enhanced primary benefits–of performance, convenience, price, and

safety, for example–that accompany environmental improvements to continue to

propel the market for environmentally preferable products in the years and decades

ahead.

INCREASED MARKET SHARE

Times are tough for marketers of branded products. Brand loyalty is near all time

lows, and the percentage of Americans who feel that some brands are worth paying

more for is declining. In this tough, competitive climate, environmental compatibility

breaks ties at the shelf. Pragmatic consumers skew purchases to those products

and packages that must be recycled or otherwise safely disposed of in their

communities. All else being equal, many consumers look to do their bit by happily

switching brands, or "boycotting" those companies and products deemed

environmentally sound and boycotting the brands of companies with disappointing

environmental track records. These growth opportunities have not been lost on such

market leaders as Procter & Gamble, McDonald's, and Compaq. They offer the

greenest of mainstream products and take pains to project environmentally

appropriate corporate images. Pick up a bottle of Tide laundry detergent and learn

how it is "phosphate-free," contains "biodegradable cleaning agents," and is

packaged in a "recycled-content" bottle.

61

Chapter XI: “ROLE OF IT IN GREEN MARKETING”:-

IT departments are under increasing scrutiny and pressure to deliver

environmentally sound solutions. Large data centres are one of the most significant

energy consumers in an organizations IT infrastructure, so any measures that the

organization can take to reduce this consumption (and therefore also carbon dioxide

emissions) will have a positive impact on the organization‘s environmental footprint.

Gartner reveals that during the last five years, the power demands of equipments

have grown by five or more times. Additionally, a report issued by the environmental

Protection Agency in US indicates that environmental issues have placed IT

departments under pressure to develop ‗green‘ data centres.

A green data centre is defined as one in which the mechanical, lighting, electrical

and computer systems are designed for maximum energy efficiency and minimum

environmental impact. The construction and operation of a green data centre

involved in advanced technologies and strategies.

Some examples include:

Reducing the power consumption of the data centre.

Minimizing the footprints of the buildings.

Maximizing cooling efficiency.

Using Low-emission building materials, carpets and paints.

Installing catalytic converters on backup generators.

Using alternative energy technologies such as photovoltaic electrical heat

pumps and evaporating cooling.

The consumption of energy is considered the dominant- and often the

only-factor in defining whether or not a facility is green. IT executives

therefore need to start investigating alternative ways of building energy-

efficient data centres. This paper focuses on ―How a Green Data Centre

can be a Great Marketing Tool‖

62

Chapter XII: “CONCLUSION”:-

There are many lessons to be learned to avoid green marketing myopia —the short

version of all this is that effective green marketing requires applying good marketing

principles to make green products desirable for consumers. The question that

remains, however, is, what is green marketing‘s future? Historically, green

marketing has been a misunderstood concept. Business scholars have viewed it as

a ―fringe‖ topic, given that environmentalism‘s acceptance of limits and conservation

does not mesh well with marketing‘s traditional axioms of ―give customers what they

want‖ and ―sell as much as you can.‖ In practice, green marketing myopia has led to

ineffective products and consumer reluctance. Sustainability, however, is destined

to dominate twenty-first century commerce. Rising energy prices, growing pollution

and resource consumption in Asia, and political pressures to address climate

change are driving innovation toward healthier, more-efficient, high-performance

products. In short, all marketing will incorporate elements of green marketing.

Successful green marketing entails much more than simply tweaking the size of a

package, using recycled materials in place of virgin ones, or substituting natural

ingredients for synthetic. While positive and necessary, such changes are just a

small part of a much, much bigger picture. When we look at the businesses that are

at the forefront of the green trend, we see a deeper characteristic than just greened-

up products or ads that makes them at once environmental and societal leaders as

well as profitable: green leaders are driven by more than short-term financial goals.

They are motivated by a double bottom line, a bottom line that recognizes the

potential for business to affect societal change as well as create economic wealth. A

business that at the end of the day is measured by profits as much as its

contribution to human potential and the harmony of the company's objectives with

other living beings.

Green leaders are not afraid to project the values that underlie their organization's

mission and purpose. To their customers, the products they sell are not just

consumables sold at a profit but mirrors of their corporate commitment to

environmental care and social responsibility. Such products appeal to consumers

with a finely honed sense of idealism, integrity, and the belief that businesses can

63

and should achieve social goals as well as financial ones. Because green leaders are

not afraid to take a stand on their beliefs, their consumers stand ready to believe

their product claims and regard the individuals running the company as sincere.

The most successful green companies operate holistically. Unlike conventional

marketers who most often react to consumers' immediate needs, the most

successful green companies lead their customers and other stakeholders, rather

than accept being led by them. They anticipate emerging environmental issues and

address them before being forced to do so. As such they are able to set their own

agenda with regulators and they don't risk disappointing their customers or shaking

their confidence.

Rather than simply employ resources at hand, the deep-seated convictions of the

founders and CEOs of the most environmentally responsible companies challenge

their employees to stretch beyond their immediate horizons, teaming up with

corporate environmental stakeholders to create optimal solutions to pressing

environmental problems.

These leaders are not afraid to question assumptions or break the rules. They derive

competitive advantage while accomplishing the most good for society by embracing

unconventional and often radical solutions. They enhance profitability and quality

by innovating more and more efficient ways to design and market products and

conduct their businesses overall.

The greenest companies are not afraid to listen – to understand the issues from all

sides, to pick up clues from individuals and groups on the fringes who can lead

them to new opportunities, and to simply demonstrate to employees, customers,

suppliers and others that they care. At the same time, they are not afraid to trust.

They are open to entrees from government regulators offering technical assistance

or to an environmentalist with a seemingly off-beat idea. Most importantly, they

trust their own instincts, their insights into the causes and probable solutions to

society's environmental ills, and their own deeply held beliefs. Green leaders focus–

on the stakeholders most important to their business and on the product attributes

64

that represent the greatest environmental impact and are most important to their

customers.

Finally, green leaders are patient. They are committed to the long term, and to

continuous improvement. They are eager to learn from their own mistakes and they

engage in forums that allow them to learn from the mistakes of others. And, like

Sally Fox, who took 10 years to cultivate a naturally colored cotton seed capable of

yielding a fiber long enough to be spun into marketable yarn, green leaders

persevere.

A green future is now being created by visionaries with a competitive spirit in their

bellies and social activism in their hearts. While many businessmen and women

may still be content to tweak products or manage cash cows in the quest for next

quarter's earnings, green leaders are right now readying new products and services

to market, creating new industries and more inclusive work and management styles

that didn't exist five or ten years ago. Theirs will be the standards for the future.

With ever increasing scientific understanding of how the Earth works, a general

movement toward safer, less polluting and more environmentally sustainable

practices is inevitable. Marketers that take the time now to court the deepest green

consumers with truly innovative solutions to environmental concerns will be the

ones who reap the biggest future opportunities.

So, if today's successful marketing is about appealing to personal values and

delivering consumer empowerment, then surely the time is right to inject

sustainable development into the marketing mix to help address some of gritty

issues currently facing our planet. Green marketing methods produce highly

effective results. They apply all of the steps you need to cut costs, raise response

rates and increase growth in the most important marketing metric we are all held

accountable for—the bottom line.

65

REFERRENCE

Journals:

1. Amine, L.S. (2003), "An integrated micro- and macro-level discussion of

global green issues: ‗it isn't easy being green‘", Journal of International

Management, Vol. 9 No.4, pp.373-94

2. Crane, A. (2000), "Facing the backlash: green marketing and strategic

reorientation in the 1990s", Journal of Strategic Marketing, Vol. 8 No.3,

pp.277-96.

3. Johri, L.M., Sahasakmontri, K. (1998), "Green marketing of cosmetics

and toiletries in Thailand", Journal of Consumer Marketing, Vol. 15 No.3,

pp.265-81

4. McDaniel, S.W., Rylander, D.H. (1993), "Strategic green marketing",

Journal of Consumer Marketing, Vol. 10 No.3, pp.4-10.

5. Martin, B., Simitiras, A.C. (1995), "The impact of green product lines on

the environment", Marketing Intelligence & Planning, Vol. 13 No.4, pp.16-

23.

6. Simms, C. (1992), "Green issues and strategic management in the

grocery retail sector", International Journal of Retail & Distribution

Management, Vol. 20 No.1, pp.32-42.

Websites:

1. http://www.greenmarketing.com/green_marketing_book

2. http://egj.lib.uidaho.edu/egj02/polon01.html

3. http://www.awea.org/policy/greenprins.html

4. http://www.sustainablemarketing.com/

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

6. http://www.ecomall.com/greenshopping/greencorner.htm

7. http://www.tompaine.com/articles/2006/11/03/bright_green_marketin

g_challenge.php

8. http://www.plentymag.com/features/2006/11/green_marketing_machi

ne.php