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Dr. Sachin S. VernekarDirectorBharati Vidyapeeth University Institute of Management & Research, New Delhi (BVIMR)

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Contents1. What is Green Marketing

2. What is Sustainable Development

3. 7 P’s of Green Marketing

4. Need for Green marketing

5. Green Wash

6. Green marketing myopia

7. Global Green Practices

8. Indian Green Practices

9. Challenges

10. Conclusion

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What is Green Marketing Green marketing is a concept that, when

implemented effectively, can improve your customer relationships, image in the market and ability to reach the most targeted audience, while helping grow your bottom line. The first and perhaps most obvious, green marketing step is to use electronic means of communication whenever possible.In fact there are five types of mails:

1. Black Mail

2. White Mail

3. Rose Mail

4. Future Mail

5. E mail (g mail / green mail)

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What is Green Marketing According to the 

American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.

Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and environmentally friendly are some of the things consumers most often associate with green marketing. While these terms are green marketing claims, in general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services.

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What is Green MarketingFor 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.

Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.

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Green marketing is like putting on a new pair of glasses (or contacts). Your eyes have to be adjusted. But as you settle into this new way of seeing, your vision improves, your eyes work a little easier...and you adjust.

Green marketing sharpens your vision and lets you work a little less. It is a tool that improves your depth of field, and brings life into focus a bit more clearly.

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Take one product, attempt to

make it environmentally friendly,

and then tell everybody about it.

That is current green marketing

in a nutshell.

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“Marketing needs to define

what sustainability means for

their company and then

decide how to express those

values in their offerings.

Companies should stop trying

to appeal to green consumers

by building green myths into

the products they have and

start creating something real

—products that tell their

environmental story for

them.”

Steve Bishop

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What is Sustainable Development

Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come.

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Green Marketing - 7Ps

Traditional marketing is based on

the 4Ps: Product, Price, Place and

Promotion. Green marketing adds

the triple bottom line: People,

Planet and Profits.

1. Product,

2. Price,

3. Place,

4. Promotion

5. People,

6. Profit and

7. Planet.

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Packaging as another P in Green Marketing

ECO LABELS: Eco labels provide information regarding the environmental performance of products. The objective of eco-labeling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers.

ECO-MARK IN INDIA: Under the concept, products which are less harmful to the environment or have benign impact on environment through the various stages of development-manufacture, packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the logo for Eco-Mark scheme in India.

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Why Does Green Matter?

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Why Green Marketing (for marketers)

1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives [Keller 1987, Shearer 1990];

2. Organizations believe they have a moral obligation to be more socially responsible [Davis 1992,Freeman and Liedtka 1991, Keller 1987, McIntosh 1990, Shearer 1990];

3. Governmental bodies are forcing firms to become more responsible [NAAG 1990];

4. Competitors' environmental activities pressure firms to change their environmental marketing activities [NAAG 1990]; and

5. Cost factors associated with waste disposal, or reductions in energy and material usage forces firms to modify their behavior [Azzone and Manzini 1994].

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I want to protect the environment for the benefit of future

generations

I want to protect the environment for the benefit of future

generations

The Earth belongs to humanity to do with as it

pleases

The Earth belongs to humanity to do with as it

pleases

Why Green Marketing (for consumers)consumers Believe in Environmental Stewardship

Source : Survey conducted by BVIMR, NEW Delhi

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Green Sentiment Runs High

(Survey results)

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Is There An Environment “Problem”?

% Who Agree With Statement

69%

85%

The evidence of global warmingis real

More needs to be done to curbair and water pollution in our

country

Source : Survey conducted by BVIMR, NEW Delhi

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Can Something Be Done?Consumers believe collective action will workAnd regulation will not hurt

Source : Survey conducted by BVIMR, NEW Delhi

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What is Greenwashing? “Greenwash” is defined in the 10th

edition of the Concise Oxford English

Dictionary as the “Disinformation disseminated by an organization so as to present an environmentally responsible public image.”

“Greenwashing,” a term derived from the term “whitewashing,” was coined by enviromental activists to describe efforts by corporations to portray themselves as environmentally responsible in order to mask environmental wrongdoings.

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What’s wrong with Greenwashing? It is misleading! It attempts to trick us into believing that a

company with an awful environmental track record actually has a good one.

If one corporation gets away with greenwashing, then other corporations will follow, thereby creating an illusion of being environmentally friendly.

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General MotorsGeneral Motors has falsely

promoted its cars as environmentally friendly, with ads that have their SUV’s in natural habitats as if they were as natural as the surrounding trees. Ford, for example, has launched the new Escape Hybrid. What they fail to tell the public is they only produce 20,000 of these cars a year, while continuing to produce almost 80,000 F-series

trucks per month!

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Green Marketing Myopia

 To avoid green marketing myopia, marketing should

satisfy “The Three Cs” principles:

1. Consumer value positioning,

2. Calibration of consumer knowledge, and

3. Credibility of product claims.

Green marketing must satisfy two objectives: improved environmental quality and customer satisfaction. Misjudging either or overemphasizing the former at the expense of the latter can be termed “green marketing myopia.”

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Green marketing examples

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Global Practices

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Global practices1. Philips: Durability Trumps GreenNetherlands-based Philips flagship �

environmental consumer product are compact fluorescent light bulbs (CFLs), which it has marketed since 1978.

Things changed as the bulbs got cheaper, the quality of their light better, and their adaptability into various fixtures increased. Equally important was a key name change that reflected some green-marketing realities: Philips stopped calling the bulb Earth Light and changed the name to � �Marathon.� �

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Global practices2. Toyota: Green Without Compromise

Toyota’s Prius may be the first major consumer product that fits nearly all of the criteria for success in the green-consumer marketplace: It comes from a trusted company and can be bought wherever the company’s products are sold; it looks and feels like a conventional product and doesn’t’ require consumers to change their habits to use; it is (almost) comparably priced to purchase and can save consumers money to operate; and it has added benefits -- it both saves money and it's stylishly cool.

3. Electrolux: Efficiency = Green

4. McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion.

5. Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year.

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Indian examples

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P&G's four new commitments

1. powering its plants with 100% renewable energy,

2. using 100% renewable or recycled materials for all products and packaging,

3. having zero consumer and manufacturing waste go to landfills, and

4. designing products "that delight consumers while maximizing the conservation of resources" 

Procter & Gamble's Sustainability Vision

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Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that has been a major source of air and water pollution.

The Surf Excel detergent which saves water (advertised with the message—"do bucket paani roz bachana").

 The energy-saving LG consumers durables are examples of green marketing.

Barauni refinery of IOC is taken steps for restricting air and water pollutants.

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.

In India, the green building movement, spearheaded by the Confederation of Indian industry (CII) - Godrej Green business Center, has gained tremendous impetus over the last few years. From 20,000 sq ft in 2003, India's green building footprint is now over 25 million sq ft.

•Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful product

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Green marketing cases

HP to Reduce its Global Energy Use 20 Percent  HP will deliver energy-efficient products and services to

customers and institute energy-efficient operating practices in its facilities worldwide.The new goal is part of the company's global environmental strategy that addresses three levels of the business: products, internal operations and supply chain management. Recent innovations that will help HP meet the goal include:

-- The introduction of select HP desktop business PCs that offer 80 percent efficient power supplies and were the first to meet the U.S. Environmental Protection Agency's new EnergyStar(R) 4.0 requirements. The new power supplies are 33 percent more efficient than their predecessors;

-- Dynamic Smart Cooling, HP's energy management system for data centers, which is designed to deliver 20 to 45 percent savings in cooling energy costs;

-- Redesigned print cartridge packaging for North America that will reduce greenhouse gas emissions by an estimated 37 million pounds 

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Philips Light's "Marathon“: 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.

Car sharing services: Car-sharing services address the longer-term

solutions to consumer needs for better fuel savings and fewer traffic tie-ups

and parking nightmares, to complement the environmental benefit of more

open space and reduction of greenhouse gases. They may be thought of as a

"time-sharing" system for cars. Consumers who drive less than 7,500 miles a

year and do not need a car for work can save thousands of dollars annually by

joining one of the many services springing up, including ZipCar (East Coast), I-

GO Car (Chicago), Flex Car (Washington State), and Hour Car (Twin Cities).

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ITC: GREEN CAMPAIGN:

◦ ITC has been 'Carbon Positive' three years in a row

(sequestering/storing twice the amount of CO2 than the

Company emits). ◦ ITC's globally recognised e-Choupal initiative is the

world's largest rural digital infrastructure benefiting over 4 million farming families.

MARUTI: GREENINGTHE SUPPLY CHAIN◦ 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 .

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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.

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HCL-ENVIRONMENT MANAGEMENT & ECOSAFE POLICY•

HCL's eco safe: The key objective under HCL ecoSafe

is targeted at integrating environmental management

procedures into its business processes thereby

protecting the environment, health, and safety of all its

stakeholders. HCL commits to manufacture products

that are environment friendly in all respects and are

free from hazardous chemicals.

HCL ECOSAFE focuses on product lifecycle

management to ensure that our products right from

when they are manufactured, bought by customers,

recovered at their end- of-life and recycled after useful

life are done in an environmentally responsible manner.

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Indian practices According to a survey conducted by BT(Business Today)

&Tata Energy Research Institute (TERI) top ten green companies of India are:

1. ABB2. Bayer (India)3. Clariant (India)4. Coromandel Fertilisers5. Gujarat Ambuja Cements6. ICI India7. Indian Aluminium Co8. Orchid chemicals and pharma.9. Philips India10. Tata Iron & Steel Co.

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1. Work from home – allow staff to work from home more often. This will help provide added perks and could improve productivity.

2. Teamwork – boost Company moral by setting a company wide goal of everyone working together to lower the businesses carbon footprint.

3. C02 friendly servers - today, you can reverse the impact of your websites by switching to C02 friendly servers.

4. Sustainable Packaging – replacing your existing packaging with“green” packaging materials such as biodegradable . Or simply get creative by re-using old magazine pages. Yes it’s possible. There’s a shop in Lisbon, Portugal that is doing this – the wrong shop!

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5. Transportation – if your business relies on transportation, look at transitioning to environmental friendly vehicles. This bold move will most likely get the attention of your local or national newspapers.

6. Green Seal – assess the ‘Greenness’ of your products and apply for a green seal. In the US and Canada there are several NGO’s supporting green seal projects

7. Get Your Brand out there – help your local community and customers reduce dependency on grocery store plastics. Invest in environmental friendly grocery bags with your brand, and give them away to customers for free…it’s free advertising!

8. Give Local Love. Receive Local Love – if you’re in the food business, look at ways to source local products even if they’re at slightly higher cost. In return, promote your goal of supporting local farmers and reducing your carbon footprint. You can start the transition slowly by having select products that feature seasonal and locally sourced produce.

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Challenges

ahead

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Challenges of Green Marketing

We require people who believe to be “WILL STATION”. Generally,

the employees can be categorized in Five distinct groups that can

be labeled as Stations. By Stations we mean the unique

destinations which these employees have identified for

themselves as their career goals and the resultant

approaches and work culture adopted by them for this

purpose.

1. Will Station

2. Steel Station

3. Still Station

4. Hill Station

5. Bill Station 

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OTHER CHALLENGES:

Green products require renewable and recyclable

material, which is costly 

Requires a technology, which requires huge

investment in R & D 

Water treatment technology, which is too costly 

Majority of the people are not aware of green

products and their uses 

Majority of the consumers are not willing to pay a

premium for green products 

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CONCLUSIONConsumers care about the environment,

even if only some are joining the bandwagon

Embracing technology and being green are not mutually exclusive ideologies

When marketing green products and services, focus on the following messages:◦ Your company cares about the environment (and

you have to back this up with actions that show it)

◦ If we all work together, we can have an impact◦ Your product is environmentally conscious◦ Buying your product will not only help the

environment, it is good for the consumers’ wallets

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Thank You