Green Marketing

GREEN MARKETING

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DECLARATION

I hereby declare that this Project entitled “Green Marketing” has been carried out by me, Shashi Kumar Nadar, student of T.Y.B.com (A) in Pillai’s College of Arts Science and Commerce, Mumbai University, Roll no-3853. The research confirms to course regulations I declare that no material contained within this assignment has been used in any other submission, by the author, for an academic award. I further declare that the information presented in this project is true and original to the best of my knowledge.

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ACKNOWLEDGEMENTS The contribution of my Faculty at Pillai’s College of Arts Science and Commerce (Affiliated to Mumbai University) has made this project possible. I am thankful Prof. A.N. Kutty (Vice Principal) of our College for this opportunity of Project I am also grateful to Mrs. Seema Somani, the Faculty Coordinator of my project, for providing encouragement and for the valuable interactions I have had with her. Her valuable and appropriate inputs helped me to complete my paper successfully. I am also thankful to Idea Cellular, H.M motors, IndusInd Bank and TNPL for their continuous support and cooperation. Finally, I would like to thank our Faculty Coordinators. Their support and coordination in providing study material has helped tremendously to make the project informative and comprehensive.

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INDEX S.No

CONTENTS

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GREEN MARKETING

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2.

WHY GREEN MARKETING?

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3.

ADVANTAGES OF GREEN MARKETING

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4.

MARKET MIX OF GREEN MARKETING

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5.

EXAMPLES OF INDIAN COMPANIES

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6.

INDIAN COMPANIES INTO GREEN MARKETING

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7.

MOST ENVIRONMENTLY FRIENDLY COUNTRIES

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8.

SOME GREEN MARKETING PRINT AD’S

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9.

CONCLUSION

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10.

BIBLIOGRAHY

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1. 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. Green Marketing can also be defined as Promotional activities aimed at taking advantage of the changing consumer attitudes toward a brand. These changes are increasingly being influenced by a firm's policies and practices that affect the quality of the environment, and reflect the level of its concern for the community. 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. Thus "Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption an disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services. While the shift to "green" may appear to be expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run. We define Green Marketing as an art of creating awareness among consumers about carefully planned and developed eco compliant products and services using competitive pricing, promotion and distribution strategies that lead to increased uptake of product and services increase in ROI and finally consumer satisfaction. 5

2. WHY GREEN MARKETING…? As we know that resource are limited and Human Wants are unlimited. It is important for the marketers to utilize the resources efficiently without wastage as well as to achieve the organization's objective. So green marketing is inevitable. There is growing interest among the consumers all over the world regarding protection of environment. Worldwide people are concerned about the environment and are changing their behavior. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. Thus the growing awareness among the consumers all over the world regarding protection of the environment in which they live, People do want to a clean earth to their offspring. Now we see that most of the consumers, both individual and industrial, are becoming more concerned about environment-friendly products. Most of them feel that environment-friendly products are safe to use. As a result, green marketing has emerged, which aims at marketing sustainable and socially-responsible products and services. Now this is the era of recyclable, non-toxic and environmentfriendly goods. This has become the new mantra for marketers to satisfy the needs of consumers and earn better profits. Companies all over the world are striving to reduce the impact of products and services on the climate and other environmental parameters. Marketers are taking the cue and are going green. Green marketing is a vital constituent of the holistic marketing concept. It is particularly applicable to businesses that are directly dependent on the physical environment; for example, industries like fishing, processed foods, tourism and adventure sports. Changes in the physical environment may pose a threat to such industries. Many global players in diverse businesses are now successfully implementing green marketing practices. 6

3. ADVANTAGES OF GREEN MARKETING Advantages of Green Marketing are: Opportunity  Social Responsibility  Government Interferences  Competitive Pressure  Cost Cutoff 1. Opportunity:- In India, around 25% of the consumers prefer environmental-friendly products, and around 28% may be considered healthy conscious. Therefore, green marketers have diverse and fairly sizeable segments to cater to.Some examples are: 

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1.The Surf Excel detergent which saves water (was advertised with the message—"do bucket paani roz bachana") 2. The energy-saving LG consumers durables are examples of green marketing. We also have green buildings which are efficient in their use of energy, water and construction materials, and which reduce the impact on human health and the environment through better design, construction, operation, maintenance and waste disposal. 3. 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. They are generally concerned with collecting goods directly from the manufacturing concern and they sell it to various wholesalers in different areas.

2.Social Responsibility :- Many companies have started realizing that they must behave in an environment-friendly fashion. They believe both in achieving environmental objectives as well as profit related objectives. Some of examples are : HSBC Bank became the world's first bank to go carbon-neutral.  Coca-Cola, which has invested in various recycling activities. 7

3. Government Pressure:- Various regulations rare framed by the government to protect consumers and the society at large. The Indian government too has developed a framework of legislations to reduce the production of harmful goods and by products. These reduce the industry's production and consumers' consumption of harmful goods, including those detrimental to the environment; for example Examples are;

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The ban of plastic bags in Mumbai. Prohibition of smoking in public areas, etc.

4. Competitive Pressure:- Many companies take up green marketing to maintain their competitive edge 5. Cost Reduction:- 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. Examples are:

The fly ash generated by thermal power plants, which would otherwise contributed to a gigantic quantum of solid waste, is used to manufacture fly ash bricks for construction purposes.

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4. MARKET MIX OF GREEN MARKETING When companies come up with new innovations like eco friendly products, they can access new markets, enhance their market shares, and increase profits. Just as we have 4Ps product prices, place and promotion in marketing, we have 4ps in green marketing too, but they are a bit different. They are added by three additional Ps, namely people, planet and profits. A. 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. 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. Examples are 

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.

B. 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. Examples are: 

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". 9

C. 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. D. 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. Examples are:  

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British petroleum (BP) displays gas station which its sunflower motif and boasts of putting money into solar power. Indian Tobacco Company (ITC) has introduced environmentalfriendly 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 ecofriendly 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.

Consumer awareness can be created by spreading the message among consumers about the benefits of environmental-friendly products. Positing of profiles related to green marketing on social networks creates awareness within and across online peer groups. Marketing can also directly target the consumers through advertisements for product such as energy saving compact fluorescent lamps, the battery –powered Reva car, etc.

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5.EXAMPLES OF INDIAN GREEN PARTICIPANTS: 1. Hero-Honda Motors Ltd Hero Honda Motors Ltd. is the world's largest manufacturer of two – wheelers, based in India. The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the ‘World No.1’ twowheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date. Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle – Splendor. Vision The Hero Honda story began with a simple vision – the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s commitment to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that vision. Strategy Hero Honda’s key strategy has been driven by innovation in every sphere of activity – building a robust product portfolio across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand building activities. Manufacturing Hero Honda bikes are manufactured across three globally benchmarked 11

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant are based at Haridwar, in the hill state of Uttrakhand. Technology In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. Products Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments. Distribution The Company’s growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero Honda's extensive sales and service network now spans close to 4500 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the country. Brand The Company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation. Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero 12

Honda also partners the Commonwealth Games Delhi 2010. Hero Honda is also known as “A Green Company”  Which include new work process which systematically eliminates dangerous wastes  Manufactures products as per RTO specification of CO2 emission Limit through Bharat 1, Bharat 2, Bharat 3, Bharat 4.(Bharat 1,2,3,4 means CO2 emission Level limits) 2. Idea Cellular Ltd Developed by IDEA’s creative agency, Lowe, this new ad campaign promotes the idea of mobile VAS usage for vast number of day to day activities, to save paper and save Earth. This is IDEA Cellular's latest campaign, after a successful series of What an Idea, Sirji! Campaigns with Brand Ambassador, Abhishek Bachchan that now goes on air. Speaking about the campaign, Mr. Pradeep Shrivastava, Gallery In-charge, IDEA Cellular said, "Environment’ as a subject touches all, but gets attention only at strategic forums. The common man gets to contribute little towards the cause, due to lack of direction and ideas. Hence, IDEA Cellular has taken up the responsibility of educating the 500 million mobile phone users in the country. If they start using the mobile phone more judiciously, together we can make a significant contribution of saving paper, and therefore, the green cover necessary for the health of the planet." The latest IDEA environment campaign will now be extensively seen across TV, Print, Digital and Outdoor media space in coming days. The company further plans to launch range of Value Added Services to help consumers stay informed through utility services on their mobile phones, thus reducing dependency on paper usage. As per the press release, "World over, millions of tonnes of trees get cut everyday to produce paper, leading to alarming rates of deforestation. The new IDEA TVC showcases how the mobile phone can be used as an 13

efficient tool to read daily newspapers, generate e-bills, make payments and transactions, issue e-tickets and boarding passes; thereby saving tonnes of paper everyday." Abhishek Bachchan can be seen portraying the role of an agonized ‘Tree’ this time. He advocates the idea of using mobile phone to save paper, and therefore, the greenery around him through this campaign 3. IndusInd Bank: IndusInd Bank, a new generation private sector bank, inaugurated Mumbai’s first solar-powered automated teller machine (ATM) as part of its Green Office Project campaign “Hum aur Hariyali”. It also unveiled a “Green Office Manual - A Guide to Sustainable Practices,” prepared in association with the Centre for Environmental Research and Education (CARE). IndusInd Bank has a comprehensive plan to reduce its carbon footprint. Some of the initiatives being undertaken under this plan are solar powered ATMs, thin computing, e-archiving, e-learning, e-waste management, paperless fax, energy conservation, CNG cars and also supporting finance programs with incentives to go green

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6. INDIAN COMPANIES INTO GREEN MARKETING ORCHID-India’s only Ecotel The Orchid - An Ecotel Hotel in Mumbai is Asia's first certified ecofriendly five-star hotel and world's only Ecotel to be certified as ISO 14001. This 245 - room hotels strategically located adjacent to the domestic airport making it a convenient place for the business traveler to stay. The exclusivity of The Orchid is experienced as soon as one enters the atrium that is serenaded by a 70-foot indoor waterfall. Around the waterfall, on the first level is the Boulevard, the 24-hour coffee shop. The beautiful Orchids growing there give you a feel of the truly Orchid experience. Besides, The Boulevard provides a unique guaranteed time-bound service aptly called the "Lightening Menu" or the "10 Minute Menu". If the service is even a minute late, the meal is on the house! The 69 international awards reiterate the efforts of The Orchid of being a pioneer amongst environment friendly hotels. Tamil Nadu Newsprint and Papers Limited (TNPL) Adjudged the best performer in the 2009-2010 Green Business Survey, TNPL was awarded the Green Business Leadership Award in the Pulp and Paper Sector. The initiatives undertaken by this top green firm in India includes two Clean Development Mechanism projects and a wind farm project that helped generate 2,30,323 Carbon Emission Reductions earning Rs. 17.40 Crore. Oil and Natural Gas Company (ONGC) India’s largest oil producer, ONGC, is all set to lead the list of top green Indian companies with energy-efficient, green crematoriums that will soon replace the traditional wooden pyre across the country. ONGC’s Mokshada Green Cremation initiative will save 60 to 70% of wood and a fourth of the burning time per cremation.

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7. THE MOST ENVIRONMENT FRIENDLY COUNTRIES India has been voted the most environment friendly & green country in the world by none other than National Geographic. The Annual Survey “Greendex” carried out by Nat Geo and Globescan shows that out of 17 main economies surveyed India does least to harm the our environment. Greendex has derived these results based on people’s transportation patterns, household energy and resource use, consumption of food and everyday consumer goods, and what consumers do to minimize the impact these activities have on the environment.

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Key Indian Highlights on Greendex Report 

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India has ranked 1st on Greendex for 2nd time in a row and have also showed greatest increase in the score from last year (3.2 points). Indians are less likely to have home heating and hot running water (42 percent for both), and many who do commonly use on-demand electrical water heaters (44 percent versus the 17-country average of 13 percent). Ranks top on transportation Sub Index as Indians tend not to have large vehicles who typically are gas guzzlers (49 percent neither own, rent, nor lease cars or trucks); furthermore, those who do seldom drive alone (13 percent—versus the average of 38 percent—down from 19 percent in 2009). Indians prefer motorcycles or scooters (67 percent) or use public transportation (81 percent do so at least once a month). After the Chinese, Indians are the 2nd most likely to choose to live close to their destinations (59%), and they are among the most likely to prefer to walk or cycle to their usual destinations (63 %). 35% Indians eat self grown food several times a week or daily, more than any other country in the world. Also, Consumers in India rarely consume meat, including chicken (24%), fish & seafood (21%) and beef (13%). When it comes Goods Sub-index, India again ranks at top as Indian consumers prefer to buy used rather than new (42%) and to repair rather than to replace (68%). They also increasingly buy products that are environmentally friendly (60%).

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Indians are also becoming increasingly concerned about environmental problems in general (76%). More Indians feel guilty about their impact on the environment (58%). In particular, they are more likely than most to worry about climate change or global warming (83%), fresh water shortage (85%), and loss of species and habitat (70%)

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8. SOME GREEN MARKETING PRINT ADS

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9. CONCLUSION Now a day’s many consumers are environment concern. And many of the Firms are conscious about environment. By this consciousness firms started to produce Eco Friendly product for the protection of the environment. The growing awareness among the consumers all over the world regarding protection of the environment in which they live, People do want to a clean earth for future generation. So people around the world also started to use Eco Friendly products to save the Earth. With the help of Green Marketing Companies like Hero Honda Limited, Idea Cellular Limited and many more deals with Eco Friendly product as well as they launched Environment Protection Campaigns like Say no to plastics, less use of papers, Go Green concepts. Green Marketing and Eco Friendly products are moving forward towards success among the Consumers. Even I Suggest people to “GO GREEN”

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10. BIBLOGRAPHY 1. www.google.com 2. www.greenindia.com 3. www.orchidhotel.com 4. Idea Gallery (Panvel) 5. Hero Honda Showroom (New Panvel) 6. IndusInd Bank (New Panvel) 7. TNPL

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