Green Marketing Project Report

TABLE OF CONTENT Topic

Serial No.

Page No.

1

Acknowledgement

1

2

1.Chapter 1: Introduction

2

3

Brief Description

3

4

Need of the Project

4-9

5

Literature Review

10-12

6

Objective of Study

13

7

Research Methodology

14

8

2.Chapter 2: National and International scenario

15-16

9

3.Chapter 3: Presentation, Analysis and Findings

17-19

10

4.Chapter 4: Conclusion and recommendation

20-21

11

Bibliography

22

12

Annexure

23-24

ACKNOWLEDGEMENT

We are immensely overjoyed to acknowledge our sincere thanks to my faculty guide Prof. Bipin Choudhury, for providing necessary guidance during our project. We would also like to thank him for his invaluable advice and inputs throughout the duration of the project. He ensured that we were always at ease with what we were doing and constantly provided me with the macro perspective to any issues that we faced so that we was able to move in the right direction.

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1. CHAPTER 1:

INTRODUCTION

In today's business world environmental issues plays an important role in marketing. All most all the governments around the world have concerned about green marketing activities that they have attempted to regulate them. There has been little attempt to academically examine environmental or green marketing. It introduces the terms and concepts of green marketing, briefly discuss why going green is important and also examine some of the reason that organizations are adopting a green marketing philosophy. It also focuses some of the problems with green marketing. It also discusses the keys to green marketing and how firma are using green marketing. This report also stresses upon the effect of green marketing on the consumers. Green marketing isn't just a catchphrase; it's a marketing strategy that can help you get more customers and make more money. But only if you do it right.

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BRIEF DESCRIPTION

According to the American Marketing Association, Green Marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates broad range of activities, including • Product modification, • Changes to the production process, • Packaging changes, as well as • Modifying advertising. Green Marketing refers to the process of selling products and/or 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 input on the environment. Page 3

NEED OF GREEN MARKETING

Most of the companies are venturing into green marketing because of the following reasons: Issues like Global warming and depletion of ozone umbrella are important for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigour and so would the corporate class. Harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. With the proliferation of environmental stories in the press and broadcast media, individuals (whether as a consumer or acting for a company), are more aware of their personal responsibility to try to make a difference. Appealing to this need can increase response rates to marketing executions and build brand loyalty. Page 4

Green marketing is very low on the agenda of most businesses and therefore its still an under-leveraged USP (Unique Selling Proposition). Effective green marketing targeted at the right audience will make a difference. There are basically five reasons for which a marketer should go for the adoption of green marketing. They are: 1. Opportunities or competitive advantage As demands change, many firms see these changes as an opportunity to be exploited and have a competitive advantage over firms marketing nonenvironmentally responsible alternatives. Some examples of firms who have strived to come more environmentally responsible, in an attempt to better satisfy their consumer needs are: • McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. • The Surf Excel detergent which saves water (advertised with the message—"do bucket paani roz bachana). Page 5

• The energy-saving LG consumer„s durables are examples of green marketing. • Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. 2. Corporate 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. There are examples of firms adopting both strategies. **Organizations like the Body Shop heavily promote the fact that they are environmentally responsible. **Fund managers and corporate developers too, are taking into account the environmental viability of the company they invest in Venture Capitalists are investing in green business because they believe it's a growth opportunity. Page 6

Britain based HSBC became the world's first bank to go carbon neutral late last year and is now turning its 11000 buildings in 76 countries worldwide into models of energy efficiency. **An example of a firm that does not promote its environmental initiatives is Coca-Cola. They have invested large sums of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact. **Another firm who is very environmentally responsible but does not promote this fact, at least outside the organization, is Walt Disney World (WDW). WDW has an extensive waste management program and infrastructure in place, yet these facilities are not highlighted in their general tourist promotional activities. 3. Government Pressure As with all marketing related activities, governments want to "protect" consumers and society; this protection has significant green marketing implications. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways. Page 7

They want to reduce production of harmful goods or by-products , modify consumer and industry's use and/or consumption of harmful goods, ensure that all types of consumers have the ability to evaluate the environmental composition of goods. Governments establish regulations designed to control the amount of hazardous wastes produced by firms. For example: • The ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc. • Directive to completely adopt CNG in all public transport systems to curb pollution in New Delhi. 4. Competitive Pressure Another major force in the environmental marketing area has been firms' desire to maintain their competitive position. For example, it could be argued that Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers.

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5. Cost Or Profit Issues Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms develop symbiotic relationship whereby the waste generated by one company is used by another as a costeffective raw material.

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LITERATURE REVIEW

The concept of green marketing has evolved over the years. There are basically three stages in which it has evolved. 1. The decade of the late 1980s marked the first stage of green marketing, when the concept of “green marketing” was newly introduced and discussed in industry (Peattie and Crane, 2005). Owing to the upsurge of this new concept many marketer tried to involve in green marketing in order to generate positive consumer response which would be converted into goodwill, market share and sales. However in spite of reports stating that the environmental problems constituted one of the uppermost public concerns, market growth of these products fell short of expectations. 2. The second stage started off as a consumer backlash. Many organizations “green washed” the consumers. In order to improve their sales, thus creating cynical attitude of the consumers towards the green concept. Page 10

Some of the marketing practices which lead to the failure of green marketing during this period are (Peattie and Crane 2005): a.Green spinning -> Taking a reactive stance of “green”, if accused of malpractice b.Green Selling -> taking an opportunistic approach by adding some green claims to existing products with an intention to boosts profits. c.Green harvesting -> Becoming enthusiastic about the environment only when greening would result in cost savings. d.Entrepreneur marketing -> Developing innovative green products without actually considering consumer needs. e.Compliance marketing -> Just following the environmental standards as an opportunity to promote the company‟s green credentials rather than actually being involved 3. The evolution of the third stage is just a response to the anomalies occurring in the second stage.

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

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OBJECTIVE OF STUDY

• Eliminate the concept of waste • Reinvent the concept of product • Make prices reflect actual and environmental costs • Make environmentalism profitable • Bringing out product modifications • Changing in production processes • Packaging changes • Modifying advertising. >>Explore the various factors which influence the green purchasing behavior of the Indian consumer. >>Will advertising attitude and ad usage of a person predict his green purchasing behavior? >>Will his attitude towards private brands influence his green purchasing behavior? >>To give a segmented opinion of the green purchasing behavior attitude based on their gender, family type, education level etc. Page 13

RESEARCH METHODOLOGY

I being the sole researcher of this project visited college libraries, many book stores to collect and gather required information‟s. I also took some references from various sites in the internet. I did an brief interview with an educated person to grant his approach towards green marketing. My professors in college also helped me with many information‟s that I couldn‟t have gathered on my own.

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2. CHAPTER 2: NATIONAL AND INTERNATIONAL SCENARIO

In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more for ecologically compatible products. By 1991, environmentally conscious individuals were willing to pay between 15-20 percent more for green products. Today, more than one-third of Americans say they would pay a little extra for green products. An important challenge facing marketers is to identify which consumers are willing to pay more for environmentally friendly products. It is apparent that an enhanced knowledge of the profile of this segment of consumers would be extremely useful. Everett Rogers, communication scholar and author of “Diffusion of Innovations”, claims that the following five factors can help determine whether a new idea will be adopted or not, including the idealism of the shift towards “green”: 1. Relative advantage: is the degree to which the new behavior is believed to accrue more beneficial outcomes than current practice. 2. Observability: is how easy it is to witness the outcomes of the new behavior. Page 15

3. Trial ability: is the ease with which the new behavior can be tested by an individual without making a full commitment. 4. Compatibility: is the degree to which the new behavior is consistent with current practice. 5. Complexity: is how difficult the new behavior is to implement.

GPNI is an evolving network of professionals interested and active in the general area of sustainable consumption and production- more specifically: Green Purchasing and Public Procurement. It is currently a loose informal network of professionals primarily operating as an internet based electronic forum. The objectives of the GPNI are: 1. To create awareness amongst Indian industry and other stakeholders about Green Purchasing and Procurement (GPP). 2. To encourage and facilitate implementation of GPP and Greening Supply Chains (GSC) projects to enhance the competitiveness of the Indian industries. Page 16

3.

CHAPTER 3:

PRESENTATION, ANALYSIS AND FINDINGS

GREEN MARKETING INITIATIVES ITC: Green Campaign • ITC has been 'Carbon Positive' three years in a row (sequestering/storing twice the amount of CO2 than the Company emits). • Water Positive' six years in a row (creating three times more Rainwater Harvesting potential than ITC's net consumption). • 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. Page 17

• 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 programmes. Maruti: Greening The Supply Chain • The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly. • The company credited the 'Just-in-Time' philosophy adopted and internalized by the employees as the prime reason that helped to excel in this direction.

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• 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.

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4.CHAPTER 4: CONCLUSION AND RECOMMENDATION

Many organizations want to turn green, as an increasing number of consumers' want to associate themselves with environmental-friendly products. Alongside, one also witnesses confusion among the consumers regarding the products. In particular, one often finds distrust regarding the credibility of green products. There are numerous challenges in the field of green marketing. Some of the major hurdles are as following: 1. Need For Standardization: It is found that very less percentage of the marketing messages from Green campaigns are entirely true and there is a lack of standardization to authenticate these claims. There is no standardization to authenticate these claims. There is no standardization currently in place to certify a product as organic. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means Page 20

2. New Concept: Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach them asses and that will take a lot of time and effort.

3. Patience and Perseverance: The investors and corporate need to view the environment as a major long-term investment opportunity, the marketers need to look at the longterm benefits from this new green movement. It will require a lot of patience and no immediate results.

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BIBLIOGRAPHY

The further information‟s stated in this project are taken from some books, reports and some of the websites named below : (*)”Green Marketing: Challenges & Opportunities for the New Marketing Age” (*)The Real News About Green ConsumingJacquelyn Ottman. (*)Green Sales Pitch Isn‟t Moving Many ProductsThe Wall Street Journal (*)Ecological MarketingKarl.E.Henion,Thomas.C.Kinnear. (*)Green Trade & Development-Green Markets International, Inc. (*)http://adage.com/greenmarketing08/article?articl e_id=127538 (*)http://marketinggreen.wordpress.com/ (*)http://www.climatechangecorp.com/content.asp? ContentID=4867 Page 22

ANNEXURE Male

Female

Marital Status

Married

Unmarried

Graduate

Yes

No

Choose Your Gender Share Your Age

(1) Least Important

(2)Somewhat Important

(3)Moderately Important

(4)Highly Important

Rate the parameters on the magnitude on which it affects your green purchasing behavior (1)

(2)

(3)

My awareness of the environment affects my green purchasing behavior My education influences my green purchasing behavior

Current social trends affects my green purchasing behavior How is cost involved in my green purchasing behavior Somewhere I believe it‟s the fear of being out-dated that affects me in green purchasing behavior

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(4)

I am not concerned about my green purchasing behavior

I think it‟s the responsible part of me that involves me in green purchasing behavior I usually purchase brand name products Most advertising provides consumers with essential information Most advertising makes false claims Most advertising is intended to deceive rather than to inform consumers I often gather information from advertisements about products before I buy

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