dissertation report on opportunity & challenges for green marketing {by gyandeep}
DESCRIPTION
Green marketing should not neglect the economic aspect of marketing. Marketers need to understand the implications of green marketing. Green marketing to some extent strengthen company’s image in the mind of respondents that is very much clear from trustworthiness of green claims and certainly it do have positive image of the organization in the minds of the respondents. It was observed that the respondents who were more proactive with the environmental behaviour have positive attitude towards green advertisements. It is evident that green marketing have positive impact on only those who are already practicing it. Rest of the respondents who were passive had very less impact on their buying behaviour. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, the responsibility should not be theirs alone. Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. We need to come out through green myopia. Having said this, it must not be forgotten that the industrial buyer also has the ability to pressure suppliers to modify their activities. Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally responsible fashion. Final consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities. Thus green marketing should look at minimizing environmental harm, not necessarily eliminating it. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, ultimately it is consumers who demand goods, and thus create environmental problems. One example of this is where 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 disposes of their waste in an inappropriate fashion. While firms can have a great impact on the natural environment, the responsibility should not be theirs alone. It appears that consumers are not overly committed to improving their environment and may be looking to lay too much responsibility on industry and government. Thus, we can say that there are sufficient opportunities for green marketing in the Dehradun city but it may also face lot of challenges as considerable percentage of population are not aware and also willing to know the affairs of green marketing initiatives.We need to educate them through proper campaigns. Green marketer must find an opportunity to enhance you product's performance and strengthen your customer's loyalty.For further assistance contact me at: [email protected]TRANSCRIPT
DISSE
OPPORTUNI
GREEWith
SUBMITTED FOR THE
ADMINISTRATION COURSE
Submitted to:
Mr. Rajat Dimri
Faculty & Guide
Marketing
SHRI GURU RAM
ISSERTATION REPORT
ON
NITIES&CHALLENG
EENMARKETINithspecialreferencetoDehraduncity
THE PARTIAL FULFILLMENT OF MASTER O
RSE AFFILIATED TO UTTARAKHAND TECHN
Submitted
Gyandee
Roll no. : 08
MBA 2008
RAM RAI INSTITUTE OF TECHNOLOGY &
PATEL NAGAR, DEHRADUN-248001
RT
NGESFOR
INGR OF BUSINESS
CHNIVAL UNIVERSITY
itted by:
eep Kumar
08260500034
08-2010
Y & SCIENCE
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SHRI GURU RAM RAI INSTIUUTE OF TECHNOLOGY & SCIENCE
P.O. Box No. 80, Patel Nagar, Dehradun Pin: 248001 Uttarakhand (INDIA) Phone: (0135) 272 1585/ 272 1763/ 272 6435 Website: www.sgrrits.org
BO�AFIDE CERTIFICATE
Certified that this project report titled “Opportunities & Challenges for
Green Marketing with special reference to Dehradun city” is the bonafide
work of Mr. Gyandeep Kumar student of MBA Marketing 4th semester who
carried out the research under my supervision. Certified further, that to the best
of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate.
Date: Rajat Praveen Dimri
Place: Faculty Management
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DECLARATIO�
I hereby declare that dissertation report entitled “Opportunities & Challenges for
Green Marketing with special reference to Dehradun city” written and submitted by
me under the guidance of Mr. RAJAT PRAVEEN DIMRI, faculty management,
SGRR-ITS, Dehradun is my original work.
The empirical findings are based on data collected by myself.
While preparing the report I have not copied from any source or other projects
submitted for similar purpose.
Date: (GYANDEEP KUMAR)
Roll No. : 08260500034
Place: MBA 2008-2010
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ACK�OWLEDGEME�T
If words are considered as a symbol of approval and tokens of appreciation then let the
words play the heralding role of expressing my gratitude. It is a moment of pleasure for
me to acknowledge the help and support for those people who made me able to present
this dissertation report for evaluation as the partial fulfillment of “Master Of Business
Administration’’.
I take this opportunity to thank and show gratefulness to my guide Mr. Rajat Praveen
Dimri (Faculty Management), Shri Guru Ram Rai Institute Of Technology And
Science, Dehradun for his precious guidance and mentoring but for which my training
here would not been so rewarding and fruitful.
At last it is my pious duty to record my heartiest gratitude to my parents
and my family who taught first lessons of life and inspired me to face the hardships
of life. At last, I would like to thank all my SGRRIT’an friends for their love, faith
and support.
ZçtÇwxxÑ ^âÅtÜZçtÇwxxÑ ^âÅtÜZçtÇwxxÑ ^âÅtÜZçtÇwxxÑ ^âÅtÜ
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ABSTRACT
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 identifies the key to successful green marketing:
• Credibility
• Publicize stories of the company’s and employees’ green initiatives.
• Enter environmental awards programs to profile environmental credentials to
customers and stakeholders.
• Never overstate environmental claims or establish unrealistic expectations.
It also tells about Why Are Firms Using Green Marketing:
• Organizations perceive environmental marketing to be an opportunity that can
be used to achieve its objectives
• Organizations believe they have a moral obligation to be more socially
responsible
• Governmental bodies are forcing firms to become more responsible
• Competitors' environmental activities pressure firms to change their
environmental marketing activities
• Cost factors associated with waste disposal, or reductions in material usage
forces firms to modify their behavior
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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CO�TE�TS
S.N TOPIC Page
Certificate i
Declaration ii
Acknowledgement Iii
Abstract iv
CHAPTER 1 Introduction 01
CHAPTER 2 Research Methodology 36
CHAPTER 3 Data Analysis & Interpretation 39
CHAPTER 4 Conclusion 55
CHAPTER 5 Suggestion 58
Bibliography 61
Annexure 63
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CHAPTER- ONE
INTRODUCTION
• GREEN MARKETING DEFINITION………. 02
• BIRTH OF GREEN MARKETING……. …….. 04
• NEED OF GREEN MARKETING…………….. 06
• CHALLENGES OF GREEN MARKETING..18
• BENEFITS OF GREEN MARKETING………21
• SWOT ANALYSIS………………………………………. 23
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I�TRODUCTIO�
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 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.
As per Mr. J. Polonsky, Green Marketing can be defined as, "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."
Green Marketing involves developing and promoting products and services that satisfy
customer's want and need for Quality, Performance, Affordable Pricing and Convenience
without having a detrimental input on the environment.
Goals of Green Marketing:
� 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.
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*Sources: [Peattie, K. (1995), Environmental Marketing Management, p.26]
*Figure 1: The many meaning of term green
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. The legal implications of marketing
claims call for caution. Misleading or overstated claims can lead to regulatory or civil
challenges. In the USA, the Federal Trade Commission provides some guidance on
environmental marketing claims. So, in simple terms 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 itself or produced and/or packaged in an
environmentally friendly way.
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.
Green marketers though argue that it is a way to use the environmental benefits of a
product or service to promote sales. Many consumers will choose products that do not
damage the environment over less environmentally friendly products, even if they cost
more. With green marketing, advertisers focus on environmental benefits to sell products
such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe
detergents. People buy billions of dollars worth of goods and services every year—many
which harm the environment in how they are harvested, made, or used. Environmentalists
support green marketing to encourage people to use environmentally preferable
alternatives, and to offer incentives to manufacturers that develop more environmentally
beneficial products.
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BIRTH OF GREE� MARKETI�G
The concept of green marketing has been around at least since the first Earth Day in 1970.
But the idea did not catch on until the 1980s, when rising public interest in the
environment led to a demand for more green products and services. Manufacturers
responded to public interest by labelling hundreds of new products "environmentally
friendly"—making claims that products were biodegradable, compostable, energy
efficient, or the like. 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". 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. 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. Two tangible
milestones for wave 1 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. According to
Jacquelyn Ottman, (author of Green Marketing: Opportunity for Innovation) from an
organizational standpoint, environmental considerations should be integrated into all
aspects of marketing — new product development and communications and all points in
between. The holistic nature of green also suggests that besides suppliers and retailers new
stakeholders be enlisted, including educators, members of the community, regulators, and
NGOs. Environmental issues should be balanced with primary customer needs.
The past decade has shown that harnessing consumer power to effect positive
environmental change is far easier said than done. The so-called "green consumer"
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movements in the U.S. and other countries have struggled to reach critical mass and to
remain in the forefront of shoppers' minds. While public opinion polls taken since the late
1980s have shown consistently that a significant percentage of consumers in the U.S. and
elsewhere profess a strong willingness to favour environmentally conscious products and
companies, consumers' efforts to do so in real life have remained sketchy at best. One of
green marketing's challenges is the lack of standards or public consensus about what
constitutes "green," according to Joel Makower, a writer on green marketing. In essence,
there is no definition of "how good is good enough" when it comes to a product or
company making green marketing claims. This lack of consensus—by consumers,
marketers, activists, regulators, and influential people—has slowed the growth of green
products, says Makower, because companies are often reluctant to promote their green
attributes, and consumers are often skeptical about claims.
Despite these challenges, green marketing has continued to gain adherents,
particularly in light of growing global concern about climate change. This concern has led
more companies to advertise their commitment to reduce their climate impacts, and the
effect this is having on their products and services.
The green marketing has evolved over a period of time. According to Peattie
(2001), the evolution of green marketing has three phases. 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.
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�EED OF GREE� MARKETI�G
WHY IS GREE" MARKETI"G CHOSE" BY MOST MARKETERS?
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. Financial gain and economic profit is the
main aim of any corporate business. But 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. Industries in Asian
countries are catching the need of green marketing from the developed countries but still
there is a wide gap between their understanding and implementation.
Green marketing has been widely adopted by the firms worldwide and the following are
the possible reasons cited for this wide adoption. There are basically five reasons for
which a marketer should go for the adoption of green marketing.
They are:
� Opportunities or competitive advantage
� Corporate social responsibilities (CSR)
� Government pressure
� Competitive pressure
� Cost or profit issues
1) OPPORTU(ITIES - As demands change, many firms see these changes as an opportunity
to be exploited and have a competitive advantage over firms marketing non-
environmentally responsible alternatives. Some examples of firms who have strived to
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become 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").
•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. 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 products.
2) CORPOPRATE SOCIAL RESPO(SIBILITY- 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. While this behaviour 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.
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
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because they believe it's a growth opportunity. 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." our customers have told us that
they decide where they shop based on whether the business is a good neighbour ."Says
David North, Tesco’s community director.
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. While being concerned
about the environment, Coke has not used this concern as a marketing tool. Thus many
consumers may not realize that Coke is a very environmentally committed organization.
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) GOVER(ME(T 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. They are:
� 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.
� The ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc.
Governments establish regulations designed to control the amount of hazardous wastes
produced by firms. For example:
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� New Delhi, the India's capital was getting polluted gradually at a very fast pace till
Supreme Court of India forced a change of fuel on it. In 2002, a directive was issued to
completely adopt CNG in all public transport systems to curb pollution.
� One of the more recent publicized environmental regulations undertaken by
governments has been the establishment of guidelines designed to "control" green
marketing claims. These regulations include the Australian Trade Practices
Commission's (TPC) "Environmental Claims in Marketing - A Guideline , the US
Federal Trade Commission's (FTC) "Guides for the Use of Environmental Marketing
Claims" and the regulations suggested by the National Association of Attorneys-
General .These regulations are all designed to ensure consumers have the appropriate
information which would enable them to evaluate firm's environmental claims.
4) COMPETITIVE PRESSURE – Another major force in the environmental marketing area
has been firms' desire to maintain their competitive position. In many cases firms observe
competitors promoting their environmental behaviours and attempt to emulate this
behaviour. In some instances this competitive pressure has caused an entire industry to
modify and thus reduce its detrimental environmental behaviour. 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.
In another example when one tuna manufacture stopped using driftnets the others followed
suit.
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 cost-effective raw material. For
example, 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. Firms may also use green marketing in an attempt to address cost or
profit related issues. Disposing of environmentally harmful by-products, such as
polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly costly and in
some cases difficult.
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Therefore firms that can reduce harmful wastes may incur substantial cost savings.
When attempting to minimize waste, firms are often forced to re-examine their production
processes. In these cases they often develop more effective production processes that not
only reduce waste, but reduce the need for some raw materials. This serves as a double
cost savings, since both waste and raw material are reduced.
In other cases firms attempt to find end - of - pipe solutions, instead of minimizing waste.
In these situations firms try to find markets or uses for their waste materials, where one
firm's waste becomes another firm's input of production. One Australian example of this is
a firm who produces acidic waste water as a by-product of production and sells it to a firm
involved in neutralizing base materials.
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GREE� MARKETI�G MIX
Green Marketing mix consists of following:
� Product Mix
� Price Mix
� Place Mix &
� Promotion Mix
1) PRODUCT MIX:
Entrepreneurs wanting to exploit emerging green markets either: Identify customers’
environmental needs and develop products to address these needs or will develop
environmentally responsible products to have less impact than competitors.
The increasingly wide variety of products on the market that support sustainable
developments are:
� Products made from recycled goods, such as Quick’ N Tuff housing materials made
from recycled broccoli boxes.
� Products that can be recycled or reused.
� Efficient products, which save water, energy or gasoline, save money and reduce
environmental impact.
� Products with environmentally responsible packaging, McDonalds, for example,
changed their packaging from polystyrene clamshells to paper.
� Products with green labels, as long as they offer substantiation.
� Certified products, which meet or exceed environmentally responsible criteria.
� Organic products-many customers are prepared to pay a premium for organic
products, which offer promise of quality. Organic butchers, for example, promote
the added qualities such as taste and tenderness.
� A service that rents or loans products-toy libraries.
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Whatever the product or service, it is vital to ensure that products meet or exceed the
quality expectation of customers and is thoroughly tested.
2) PRICE MIX:
Pricing is the critical element of the marketing mix. Most customers will only be prepared
to pay a premium if there is a perception of additional product value. This value may be
improved performance, function, design, visual appeal or taste. Environmental benefits
will often be the deciding factor between products of equal value or quality.
Environmentally responsible products, however are often less expensive when product life
cycle coast are taken into consideration, for example fuel-efficient vehicles, water efficient
printing and non-hazardous products.
3) PLACE MIX:
The choice of where and when to make products available will have significant impact on
the customers you attract. Very few customers go out of their way to buy green products
merely for the sake of it. Marketers looking to successfully introduce new green products
should position them broadly in the market place so they are not just appealing to a small
green niche market.
The location must also be consistent with the image you want to project and allow
you to project your own image rather than being dominated or compromised by the image
of venue. The location must differentiate you from the competitors. This can be achieved
by in-store promotions and visually appealing displays or using recycled materials to
emphasize the environmental and other benefits.
4) PROMOTIO( MIX:
Promoting products and services to target markets include paid advertising, public
relations, sales promotions, direct marketing and on-site promotions. Smart green
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**Source: [Peattie (1992), p.104]
marketers will be able to reinforce environmental credibility by using sustainable
marketing and communication tools and practices. For example, many companies in the
financial industry are providing electronic statements by email; e-marketing is rapidly
replacing more traditional marketing methods and printed materials can be produced using
recycled materials and efficient processes such as waterless printing.
Retailers, for example are recognizing the value of alliances with other companies,
environmental groups and research organizations. When promoting their environmental
commitment to reduce the use of plastic bags and promote their green commitment, some
retailers sell shopping bags and promote their green commitments.
**Figure 2: The Green Marketing Components
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MOVI�G TOWARDS GREE� MARKETI�G
The era of green marketing has begun. It has already been granted wide acceptance by all
stakeholders. However, there is a need to lay down the standards and practices, in order to
bring in objectivity in the judgment of various national and international agencies. This
will not only encourage the activities of green marketing but shall also provide the much
needed level playing fields to all.
� DEVELOPME(T OF ISO 14000 SERIES OF STA(DARDS:
ISO has been developed to help any company in any country to meet the goal of
sustainable development and environmental friendliness. The ISO 14000 family of
standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were published as an official
document in 1996.
The ISO series aims to provide guidance for developing a comprehensive approach
to environmental management and for standardizing some key environmental tools of
analysis such as labeling and life cycle assessment.
� ECO-LABELI(G I(ITIATIVES:
Eco label 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.
In India the government has introduced the eco-mark scheme since 1981. The
objectives of the scheme are:
• To provide incentives to manufacturers and importers to reduce the adverse
environmental impact of products.
• To reward genuine initiatives by companies to reduce adverse impact of environmental
impact of products.
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• To assist consumers to become environmentally responsible in their daily lives by
providing them information to take account of environmental factors in their daily lives.
• To encourage citizens to purchase products which have less environmental impact.
� ECO-LABELLI(G SCHEMES I( I(DIA:
The Ministry of environment and forest of government of India has prescribed the
following criteria for products:
• That they cause substantially less pollution than comparable products in production,
usage and disposal,
• That they are recycled and/or recyclable whereas comparable products are not.
• That they contribute to a reduction on adverse environmental health consequences.
• That they comply with laws, standards and regulations pertaining to the environment.
• That their price is not exorbitantly higher than comparable products.
� ECO-MARK I( I(DIA:
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. The familiar
earthen pot has renewable resource like earth, does not produce hazardous waste and
consume little energy in making. As a symbol it puts across its environmental message. Its
image has the ability to reach people and help to promote a greater awareness of the need
to be kind to the environment. The logo Eco-Mark scheme signifies that the product which
carries it does least damage to the environment.
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� STAKEHOLDERS I( GREE( MARKETI(G:
They are all the people or groups whose lives or environment are affected by the project,
but who receive no direct benefit from it. These can include the team’s families, people
made redundant by the changes introduced, people who buy the product and the local
community.
� FRAMEWORK FOR PROPER IDE(TIFICATIO( OF STAKEHOLDERS:
• Identifying appropriate stakeholders
• Specifying the nature of their interests
• Measuring the stakeholder interest
• Predicting what each stakeholder’s future behaviour will be to satisfy his/her stake
• Evaluating the impact of the expected behaviour on the project team’s latitude in
managing the project politics.
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GREE� CODE
G: Generalizes with care. Consumer behavior will not necessarily be consistent across
different product types, and particular market segments may respond to certain issues on
the green agenda but not others.
R: Remembers, the validity of a piece of market research is not related to the degree to
which it supports your preferred option.
E: Explores the context from which market research data comes. Be clear on the nature of
the sample used, the questions asked, the way in which responses were recorded and the
time and place from which the responses come.
E: Ensures that where market research is crossing international borderlines, that the
terminology and interpretation remains consistent. Terms like ‘environment’, ‘green’ and
‘conservation’ do not always translate precisely between languages.
�: Neutrality is important. Ensure that when you pose questions to consumers, that they
can make any response without being made to feel guilty or uncomfortable, and ensure
that your own preconceptions about the green agenda (such as an assumption that green
products will cost extra) are not encoded within the questions.
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CHALLE�GES I� GREE� MARKETI�G
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. Therefore, to ensure consumer
confidence, marketers of green products need to be much more transparent, and refrain
from breaching any law or standards relating to products or business practices.
There are numerous challenges in the field of green marketing. Some of the major hurdles
are as following:
:eed For Standardization) ߦ
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. A standard quality
control board needs to be in place for such labelling and licensing.
:ew Concept) ߦ
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 the
masses and that will take a lot of time and effort. By India’s ayurvedic heritage, Indian
consumers do appreciate the importance of using natural and herbal beauty products.
Indian consumer is exposed to healthy living lifestyles such as yoga and natural food
consumption. In those aspects the consumer is already aware and will be inclined to accept
the green products.
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:Patience And Perseverance ߦߦߦߦ
The investors and corporate need to view the environment as a major long-term investment
opportunity, the marketers need to look at the long-term benefits from this new green
movement. It will require a lot of patience and no immediate results. Since it is a new
concept and idea, it will have its own acceptance period.
:Avoiding Green Myopia ߦߦߦߦ
The first rule of green marketing is focusing on customer benefits i.e. the primary reason
why consumers buy certain products in the first place. Do this right, and motivate
consumers to switch brands or even pay a premium for the greener alternative. It is not
going to help if a product is developed which is absolutely green in various aspects but
does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the
green products are priced very high then again it will loose its market acceptability.
:Some Other Challenges Ahead In Green Marketing Are ߦߦߦߦ
* 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.
Green Washing ߦߦߦߦ
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
Page | 20
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 skeptical 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.
The Green Dilemmaߦߦߦߦ
The past decade has shown that harnessing consumer power to effect positive
environmental change is far easier said than done. The so-called "green consumer"
movements in the country have struggled to reach critical mass and to remain in the
forefront of shoppers' minds. One of green marketing's challenges is the lack of standards
or public consensus about what constitutes "green". This lack of consensus -- by
consumers, marketers, activists, regulators, and influential people -- has slowed the growth
of green products, says Makeover, because companies are often reluctant to promote their
green attributes, and consumers are often skeptical about claims.
Despite these challenges, green marketing has continued to gain adherents,
particularly in light of growing global concern about climate change. This concern has led
more companies to advertise their commitment to reduce their climate impacts, and the
effect this is having on their products and services.
Page | 21
BE�EFITS OF GREE� MARKETI�G
Today’s consumers are becoming more and more conscious about the environment and are
also becoming socially responsible. Therefore, more companies are responsible to
consumers’ aspirations for environmentally less damaging or neutral products. Many
companies want to have an early mover advantage as they have to eventually move
towards becoming green.
Some of the advantages of green marketing are:
� It ensures sustained long term growth along with profitability.
� It saves money in the long run, though initially the cost is more.
� It helps the companies market their products and services keeping the environment
aspects in mind.
� It helps in accessing the new markets and enjoying the competitive advantage.
� Most of the employees also feel proud and responsible to be working for an
environmentally responsible company.
� Companies that develop new and improved products and services with environment
inputs in mind give themselves access to new markets,
� It also increase their profit sustainability, and
� Enjoy a competitive advantage over the companies which are not concerned for the
environment.
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.
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.
Page | 22
As resources are limited and human wants are unlimited, it is important for the marketers
to utilize the resources efficiently without waste 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 evidence indicates people are concerned about the environment
and are changing their behaviour. As a result of this, green marketing has emerged which
speaks for growing market for sustainable and socially responsible products and services.
Man has limited resources on the earth, with which she/he must attempt to provide for the
worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at
man's disposal. 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.
When looking through the literature there are several suggested reasons for firms increased
use of Green Marketing. Five possible reasons cited are:
a) Organizations perceive environmental marketing to be an opportunity that can be
used to achieve its objectives
b) Organizations believe they have a moral obligation to be more socially
responsible
c) Governmental bodies are forcing firms to become more responsible
d) Competitors' environmental activities pressure firms to change their
environmental marketing activities
e) Cost factors associated with waste disposal, or reductions in material usage forces
firms to modify their behavior.
Page | 23
GREE� MARKETI�G: SWOT A�ALYSIS
As in formulation of green strategy, a firm may evolve it from a SWOT analysis
Environmental Audit.
� STRE(GTHS:
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.
E.g. research and development capabilities for clean processes and green products
and human resources committed to environmental protection.
� WEAK(ESS:
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 labeled “Green” because they see
such labeling as a marketing gimmick, and they may lose trust in an organization
that suddenly claims to be green.
E.g. products cannot be recycled, and hazardous wastes) of a company.
Page | 24
� OPPORTU(ITIES:
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. Firms, therefore, strive to improve upon their societal
awareness. This complements the increase in consumers’ socially conscious
behavior and will therefore give them an advantage over competitors who do not
address these issues.
E.g. offering an environmental friendly product and saving resources, and relating
them to internal strengths.
� 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.
E.g. competitors gain market shares with green products and increased
environmental regulations).
� E(VIRO(ME(TAL AUDIT:
It is a management tool which can be used to assess the environmental performance
of the company and its units and to identify the weak points. Environmental Audit
is comprised of a systematic, documented, periodic and objective environmental
performance evaluation and facilities.
Page | 25
GREE� PRODUCTS: ITS CHARACTERISTICS
These products that are manufactured through green technology and that caused no
environmental hazards are called green products. Promotion of green technology and green
products is necessary for conservation of natural resources and sustainable development.
We can define green products by following measures:
� Products that are originally grown
� Products those are recyclable, reusable and biodegradable
� Products with natural ingredients
� Products containing recycled contents, non-toxic chemical
� Products contents under approved chemical
� Products that do not harm or pollute the environment
� Products that will not be tested on animals
� Products that have eco-friendly packaging i.e. reusable, refillable containers etc.
Page | 26
COMPA�IES GREE� I�ITIATIVE
1. ITC: GREE� CAMPAIG�
• 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 recognised 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 drylands and moisture-stressed areas.
• ITC's Sustainable Community Development initiatives include women empowerment,
supplementary education, integrated animal husbandry programmes.
2. MARUTI: GREE�I�G THE SUPPLY CHAI�
• 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
Page | 27
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.
3. HCL’S: E�VIRO�ME�T MA�AGEME�T & ECOSAFE POLICY
• In building a system to identify, develop and sustain the maintenance of an
environment management system at corporate level we have formulated a program
that we proudly refer as HCL's ecosafe.
• The aim is to encapsulate knowledge, awareness, and key developments on all
environmental issues faced by today's world and to incorporate these in HCL's
operations assuring our commitment in delivering quality products, solutions and
services.
• 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 areenvironment 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.
Page | 28
“GREE� MARKETI�G CASES”
� PHILIPS LIGHT'S CFL:
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 17
"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 SHARI�G 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), Flex Car
(Washington State), and Hour Car (Twin Cities).
� ELECTRO�IC SECTOR:
The consumer electronics sector provides room for using green marketing to attract new
customers. One example of this is HP's promise to cut its global energy use 20 percent by
the year 2010. To accomplish this reduction below 2005 levels, The Hewlett-Packard
Company announced plans to deliver energy-efficient products and services and institute
energy-efficient operating practices in its facilities worldwide.
Page | 29
� I�TRODUCTIO� OF C�G I� 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.
� HI�DUSTA� 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.
Page | 30
• Organizations Perceive Environmental Marketing To Be An Opportunity That Can Be
Used To Achieve Its Objectives:
Firms have realized that consumers prefer products that do not harm the natural
environment as also the human health. Firms marketing such green products are preferred
over the others not doing so and thus develop a competitive advantage, simultaneously
meeting their business objectives.
• Organizations Believe They Have A Moral Obligation To Be More Socially Responsible:
This is in keeping with the philosophy of CSR which has been successfully adopted by
many business houses to improve their corporate image. Firms in this situation can take
two approaches:
� Use the fact that they are environmentally responsible as a marketing tool.
� Become responsible without prompting this fact.
• Governmental Bodies Are Forcing Firms To Become More Responsible:
In most cases the government forces the firm to adopt policy which protects the interests
of the consumers. It does so in following ways:
� 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.
• Competitors’ Environmental Activities Pressure Firms To Change Their
Environmental Marketing Activities:
In order to get even with competitors claim to being environmentally friendly, firms
change over to green marketing. Result is green marketing percolates entire industry.
• Cost Factors Associated With Waste Disposal Or Reductions In Material Usage
Forces Firms To Modify Their Behaviour:
With cost cutting becoming part of the strategy of the firms it adopts green marketing in
relation to these activities. It may pursue these as follows:
� A Firm develops a technology for reducing waste and sells it to other firms.
� A waste recycling or removal industry develops.
PRESE�T TRE�D: GREE� MARKETI�G I� I�DIA
Page | 31
THE FUTURE OF GREE� MARKETI�G
There are many lessons to be learned 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? 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 customer what they want” and
“sell as much as you can”. Evidence indicates that successful green products have avoided
green marketing myopia by following three important principles:
• CO(SUMER VALUE POSITIO(I(G:
� Design environmental products to perform as well as (or better than) alternatives.
� Promote and deliver the consumer desired value of environmental products and
target relevant consumer market segments.
� Broaden mainstream appeal by bundling consumer desired value into
environmental products.
• CALIBRATIO� OF CO�SUMER K�OWLEDGE:
� Educate consumers with marketing messages that connect environmental attributes
with desired consumer value.
� Frame environmental product attributes as “solutions” for consumer needs.
� Create engaging and educational internet sites about environmental products
desired consumer value.
Page | 32
• CREDIBILITY OF PRODUCT CLAIMS:
� Employ environmental product and consumer benefit claims that are specific and
meaningful.
� Procure product endorsements or eco-certifications from trustworthy third parties
and educate consumers about the meaning behind those endorsements and eco-
certifications.
� Encourage consumer evangelism via consumers social and internet communication
network with compelling, interesting and entertaining information about
environmental products.
� STRATEGIES FOR GREE� COMMU�ICATIO�:
� Make environmental messages consistent with the company’s existing voice in the
market place.
� Empower consumers to get involved to make a difference.
� Enlist cultural icons to tell the story.
� Show that environmental initiatives lead to better quality products.
� Be ready to experiment publicly, even if it doesn’t always lead to success.
� Price environmentally preferable products comparable to conventional ones.
� Link environmental innovations to other benefits, like quality and durability.
� Thanks customers for making good, green choices, and tell them how they are
making a difference.
� Seek recognition from peers and activists groups and challenge competitors to join
in.
� Green products shouldn’t be any different from regular ones in branding, price, use
or performance.
Page | 33
STRATEGIES TO BE IMPLEME�TED I� GREE� MARKETI�G
I. PRODUCT DIFFERE(TIATIO(
Organizations are putting continuous efforts to differentiate their products and services
using green marketing practice. In a wide range of markets including retailing etc
companies have used eco performance to differentiate and to compete. Products with poor
eco performance can become targets for new substitution, as a result of this many
organizations are coming up with greener ideas to differentiate their products from
competitors.
CONSUMER VALUE POSITIONING- organizations can design environmental products
to perform as well as provide alternatives. In addition to this promoting and delivering the
consumer desired value of environmental products and target relevant consumer market
segments can help the organization to differentiate.
CALIBERATION OF CONSUMER KNOWLEDGE-Educates customers with marketing
messages that connect environmental product attributes with desired consumer value.
II. DESIG(I(G BIO-DEGRADABLE PACKAGI(G
It is seen that promotion of green products strongly influences the consumers buying
decisions. It is one of the most important factors of product attractiveness. Thus it has been
indicated that bio-degradable packaging will affect in a strong and moderate way
respectively on their buying decisions.
As a marketing strategy the companies should modify the product packaging by
using only the recycle as well as handmade paper in packaging. Instead of being more
mechanized the companies must find creative ways reusing the waste products which are
harmful to the environment. Manufacturing companies which are using plastic for
packaging should meet certain standardization. For example Bisleri plastic bottles or the
water bottles can last only for 15 days and after that it generates certain chemicals which
Page | 34
are harmful and there is no reusability of this kind of plastic. Companies should modify
these kinds of packaging styles and find out some innovative ways to recycle it.
III. PRODUCT STRATEGY
In this strategy marketers can identify customer’s environmental needs and develop
products to address this issue, produce more environmentally responsible packages and
insure that products meet or exceed the quality expectation of customers. In addition to
that marketer can charge higher price with highlighting eco-friendliness of the products.
IV. DISTRIBUTIO( STRATEGY
In case of this strategy obtaining dealer support to green marketing practice is essential.
The location must differentiate from competitors and it can be achieved by in-store
promotions and displays by using recycle materials to emphasize the environmental and
other benefits.
Even though distribution has no big involvement in green marketing, few
consumers are willing to get the services from places and distribution channels which are
not cause to environmental pollution.
V. LIFE-CYCLE A(ALYSIS
Brands which aspire to be sustainable must “get their house in order” before they start
planning any green marketing initiatives. The best brands are performing life cycle
analysis- complex assessments which provide critical data on social, environmental and
economic impact of products through the supply chain production process and after the
purchase. Life cycle analysis tells a brand just how far it needs to go before it claims to be
sustainable. Consumers don’t expect perfection when it comes to sustainability but they
want to see that brands understand the scale of the problem, have a plan and are in the
process of implementing it.
Page | 35
VI. I(CE(TIVES A(D STRUCTURAL FACTORS
Commercialization programs and incentives help get new technologies introduced
examples include fleet programs to cultivate strategic niche markets and by providing
financial incentives such as the advanced vehicle tax credit proposal in case of green
vehicle purchase. Consumers can be motivated by incentives and awards to:
� Curtail – Reduce the impact on the environment by modifying extant living
patterns.
� Maintain – Keep equipment in good working order.
� Be efficient – Undertake structural changes such as buying environmental friendly
equipment.
Page | 36
RESEARCH
METHODOLOGY
• PROBLEM FORMULATION…………………...37
• RESEARCH OBJECTIVES……………..……...37
• RESEARCH HYPOTHESIS…...………..……...37
• RESEACH DESIGN…………………………….…...38
• SAMPLING DESIGN……………………………......38
• LIMITATION………………………………………..…...38
Page | 37
� PROBLEM FORMULATIO�:
The aim of this study is to investigate immense opportunities and associated challenges in
Green Marketing. Green marketing is still in its infancy and a lot of research is to be done
on green marketing to fully explore its potential. Marketing Green means having a vision
and a plan and taking (cautious) action. As more companies look to promote their
environmentally savvy practices, it's a good idea to pause for a moment and consider what
companies are marketing when promoting organization as green or sustainable.
� RESEARCH OBJECTIVE:
• Primary Objectives:
1. To know the benefits and opportunities of green marketing strategy
2. To study the challenges in green marketing.
• Secondary Objectives:
1. To check the awareness about eco-friendly products of the peoples and
make them aware.
2. To know the strategy being a green is either helpful or not.
3. To understand the marketing mix of Green Marketing.
� RESEARCH HYPOTHESIS:
A tentative insight into the natural world, a concept that is not yet verified but that
if true would explain certain facts or phenomena. The hypothesis to be tested in this
study is:
“There are sufficient opportunities for green marketing and green
products in Dehradun city.”
Page | 38
� RESEARCH DESIG�:
Descriptive research design is used in this research. It includes survey and fact finding
inquiries of different kinds. The major purpose of descriptive research is description of the
state of the affairs, as it exists at present.
� DATA COLLECTIO�:
There are two sources through which data is collected.
Primary Data: Primary data has been collected mainly through structured questionnaire.
The questions were designed in an easily understandable manner that the respondents may
not have any difficulty in answering them.
Secondary Data: Secondary data has been obtained through websites, books, and online
magazines and journals.
� SAMPLI�G DESIG�:
a. Sampling Technique Simple Random Sampling
b. Sample Size 100
c. Sampling Area Dehradun
� LIMITATIO�S OF THE STUDY:
1) As the topic of research is wide so time is the main constraint in the research.
2) Target audience is also another limitation as the people in Dehradun had less
awareness about green marketing.
3) Some respondents were not interested in giving answer and they appeared to be busy
and bored at the very sound question.
4) The research is confined to a certain parts only and does not necessarily show a
pattern applicable to all of Country.
5) In a rapidly changing environment, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in order
to assimilate the findings.
6) Time and money are one of the major constraints of any research activity and this is
also attributed with this research.
Page | 39
CHAPTER- THREE
FINDING &
INTERPRETATION
Heard Of An
Here from above graph w
some or other green marke
respondent which is not le
attention from the marketer
42%
Of Any Campaign About Green Mar
Yes : 58
No : 42
aph we come to know that 58% of responden
marketing campaign carried by companies. On
not less by any means, do not know about thi
arketer’s prospective.
58%
Green Marketing Awareness
Page | 40
Marketing
pondent are aware about
s. On the other hand 42%
out this. It needs a larger
Yes
No
Source Of
While responding people
about Green Campaign (m
Green concept from Newsp
from Friends/Family and
which is only 10% people g
21%
24%
ce Of Awareness About Green Marke
Television : 06
Newspaper : 19
Friends/Family : 07
Magazines : 12
Internet : 14
eople agreed that, Newspaper is the major sou
ign (marketing). About 33% said that they ca
Newspaper, 24% people from Internet, 21% fro
and surprisingly Television contribution to
eople get information regarding Green Marketin
10%
33%
12%
Information Sources
Page | 41
arketing
or source of information
ey came to know about
% from Magazines, 12%
ion toward this is least,
arketing from Television.
Television
Newspaper
Friends/Family
Magazines
Internet
You
When people were asked th
people said that they have b
45%
Gr
You Been Part Of Such Campaign
Yes : 32
No : 26
sked that whether they have been part of any gre
have been part of such campaign while 45% de
55%
Green Campaign Participation
Page | 42
ny green campaign, 55%
5% denied this.
5%Yes
No
Consider Enviro
Here, from above graph
consideration to the enviro
consideration rarely, 18%
environmental aspect while
The weighted mean
people sometimes gives
product.
25%
nvironmental Aspect Of Product Wh
Very Often : 09
Often : 10
Sometimes : 16
Rarely : 14
Never : 07
graph we see that majority 29% people
environmental aspect of products while buying
, 18% often and 12% most often gives co
hile buying product.
mean score after calculation is +2.90 which m
ives consideration to the environmental asp
16%
18%
29%
12%
Environmental Consideration
Page | 43
ct While Buying
eople sometimes gives
uying. 25% people gives
es consideration to the
ich means that in overall
tal aspect while buying
Very Often
Often
Sometimes
Rarely
Never
Green Marketin
Informati
26% people neither agree
good source of informatio
disagree, 19% partially ag
disagree to this statement.
The weighted mean score
neither agree nor disagree
information about green pr
22%
Green Mar
rketing And Its Advertising Is Good S
rmation About Green Products/Servi
Highly Agree : 10
Partially Agree : 11
Neutral : 15
Partially Disagree : 13
Highly Disagree : 09
agree not disagree that green marketing and
rmation about green products and services. 22
ally agree, 17% agree to a high degree and
ment.
score for this is amazingly an exact zero which
agree that green marketing and its advertising
een products and services.
17%
19%
26%
16%
Marketing & Advertising Good Sourc
Information
Page | 44
ood Source Of
/Services
g and its advertising are
es. 22% people partially
e and rest 16% strongly
which means that people
tising are good source of
ource of
Highly Agree
P. Agree
Neutral
P. Disagree
Highly Disagree
Green Market
Here, from above graph w
marketing activities are go
while 17% highly disagree
statement.
The weighted mean
slightly agree that green
issues.
15%
Green Mar
arketing Activities Are Good At Add
Environmental Issues
Highly Agree :
Partially Agree :
Neutral :
Partially Disagree :
Highly Disagree :
aph we come to know that 33% people partial
are good at addressing environmental issues,
sagree and 15.5% each are neutral & partially d
mean score for this is +0.21 which means tha
reen marketing activities are good at address
19%
33%
17%
Marketing Activities Good At Addres
Environment Issues
Page | 45
t Addressing
11
19
09
09
10
partially agree that green
ssues, 19% highly agree
ially disagree toward this
ns that people in overall
ddressing environmental
dressing
Highly Agree
P. Agree
Neutral
P. Disagree
Highly Disagree
Green Market
59% of people strongly ag
27% are affirmative and ag
disagree and none strong
products.
The weighted mean
a good extent agrees that g
27%
9%
Green M
arketing Activities Results In Better
Highly Agree :
Agree :
Neutral :
Disagree :
Highly Disagree :
gly agree that green marketing activities result
and agrees to this. 9% people have neutral opin
strongly resist that green marketing activiti
mean score for this is +1.40 which means that
that green marketing activities result in better p
59%
5%0%
n Marketing Activities Results in Bett
Products
Page | 46
etter Product
34
16
05
03
00
result in better products,
al opinion while 5% only
ctivities result in better
s that people in overall to
etter products.
Better
Highly Agree
Agree
Neutral
Disagree
Highly Disagree
Com
From the above graph we
due to immense opportunit
is thriving companies for o
select green strategy as a p
believe that due to governm
26
33%
Co
Companies Opt For This Strategy
Government Pressure : 08
Competitive Pressure : 16
As a part of CSR : 15
Immense Opportunities : 19
h we can see that 33% said that companies go
ortunities present in the market. 27% people thi
s for opting green strategy. 26% people underst
as a part of their Corporate Social Responsibili
vernment pressure companies opt for green stra
14%
27%
26%
Companies Opt Green Strategy
Gov
Com
AS a
Imm
Page | 47
ies go for green strategy
ple think that competition
nderstand that companies
nsibility. While rest 14%
en strategy.
Government Pressure
Competitive Pressure
AS a part of CSR
Immense Opportunities
Green Marketing St
Here from above graph w
marketing strengthen com
respectively agrees and hig
only disagree with it.
The weighted mean
a good extent agrees that g
consumers.
48%
Green Mar
ting Strengthen Company’s Image In
The Consumers
Highly Agree : 25
Agree : 28
Neutral : 03
Disagree : 02
Highly Disagree : 00
aph we can see that huge portion of responde
company’s image in the mind of the consum
nd highly agrees with it. 5% people have neut
mean score for this is +1.31 which means that
that green marketing strengthen company’s im
43%
5% 4%0%
Marketing Strengthen Company's Im
Page | 48
ge In The Mind Of
pondent agree that green
onsumer. 48% and 43%
e neutral opinion and 4%
s that people in overall to
y’s image in the mind of
's Image
Highly Agree
Agree
Neutral
Disagree
Highly Disagree
Companies Tha
Con
In response to the above qu
marketing persuade consu
statement, 19% neither ag
company with green marke
The weighted
overall to some extent agre
19%
9%
Company
s That Focus Environment Concerns
Consumer To Buy The Products
Highly Agree : 21
Agree : 17
Neutral : 11
Disagree : 05
Highly Disagree : 04
ove question, 36% people highly agree that com
consumer easily than others. 29% someho
her agree nor disagree, 9% disagree and 7% h
marketing persuade consumer easily.
eighted mean score for this is +0.79 which me
t agrees that green marketing persuade consum
36%
29%
7%
pany's With Green Marketing Persua
Consumer Easily
Page | 49
cerns Persuade
hat companies with green
mehow agree with the
7% highly disagree that
ich means that people in
nsumer easily.
rsuade
Highly Agree
Agree
Neutral
Disagree
Highly Disagree
Page | 50
GREE� MARKETI�G I�CLUDES:
Distribution Of Response:
Strongly
Agree
Partially
Agree
Neither Partially
Disagree
Strongly
Disagree
(a) Product Modification 14 17 19 05 03
(b) Change in Production Process 32 19 01 04 02
(c) Packaging Change 15 15 10 10 08
(d) Modifying Advertising 11 20 04 10 13
(e) All of the Above 20 22 08 06 02
Ranking Of Variables:
Total Score Mean Score Rank
(a) Product Modification 34 + 0.59 3rd
(b) Change in Production Process 75 + 1.29 1st
(c) Packaging Change 19 + 0.33 4th
(d) Modifying Advertising 06 + 0.10 5th
(e) All of the Above 52 + 0.90 2nd
• When judged the perception of people regarding concept of green marketing
through this question, people gave 1st rank with 75pts to change in production
process. And its weighted mean is +1.29 which means that people agree that
change in production process consist of green marketing.
• Product Modification got 34pts and its weighted mean is +0.59 which means
that people somewhat agree that Product Modification consist of green
marketing. It is ranked 3rd by the participant.
Page | 51
• Change in packaging is ranked 4th. Its overall score is 19 and weighted mean
score is +0.33 which means that people slightly feel that change in packaging
consist of green marketing.
• Modifying advertising is ranked 5th, it overall score is only 6 and weighted mean
is +0.10 which is very near to zero which means that people aren’t sure about
this. They neither agree not disagree that green marketing includes ‘Modifying
Advertising’.
• People gave 52pts to ‘All the above’ and its weighted mean is +0.90 which
means that people agree that green marketing include all four i.e. change in
production process, product modification, packaging change and modifying
advertising. It is ranked 2nd by the respondents.
Green Strategy W
Majority of the respondent
environment. 79% people
the environment while 12%
Green Stra
tegy Will Help Grow The Healthy En
Yes : 46
No : 12
ondent strongly believe that green strategy will
eople think that green strategy will help in the
le 12% negate the statement.
79%
21%
Strategy Help Grow Healthy Environm
Page | 52
hy Environment
y will help grow healthy
in the healthy growth of
ronment
Yes
No
Page | 53
HYPOTHESIS TESTI�G
Hypothesis: There are sufficient opportunities for green marketing and green
products in Dehradun city.
S.N Variable Observed Expected (0-E) (O-E)2 (O-E)2 /E
1. Question: 01 58 45 + 13 169 3.76
2. Question: 03 32 45 - 13 169 3.76
3. Question: 12 46 45 +01 1 0.02
∑=7.54
Hence the calculated value of χ2= 7.54
Since, Degree of freedom in the given problem is
(N-1) = (3-1) = 2
The table value of χ2 for 2 degree of freedom at 2% level of significance is7.824
Comparing calculated and tabulated value of χ2, we find that calculated value is less
than the table value. The result, thus, supports the hypothesis and it can be concluded
that there are sufficient opportunities for green marketing and green products in
Dehradun city.
Page | 54
DEMOGRAPHIC PROFILE OF RESPO�DE�TS
AGE
U�DER 18 21
19-35 39
36-50 28
50 ABOVE 12
GE�DER
MALE 74
FEMALE 26
OCCUPATIO�
GOVT. 24
PVT. 19
STUDE�T 27
OTHERS 30
A��UAL I�COME
(in Rupees)
LESS THA� 1.5 LAKH 32
1.5 TO 3 LAKH 37
3 TO 5 LAKH 21
5 & ABOVE 10
Page | 55
CHAPTER- FOUR
CONCLUSION
Page | 56
Conclusion:
Green marketing should not neglect the economic aspect of marketing. Marketers need to
understand the implications of green marketing. Green marketing to some extent
strengthen company’s image in the mind of respondents that is very much clear from
trustworthiness of green claims and certainly it do have positive image of the organization
in the minds of the respondents. It was observed that the respondents who were more
proactive with the environmental behaviour have positive attitude towards green
advertisements. It is evident that green marketing have positive impact on only those who
are already practicing it. Rest of the respondents who were passive had very less impact on
their buying behaviour.
Green marketing covers more than a firm's marketing claims. While firms must bear much
of the responsibility for environmental degradation, the responsibility should not be theirs
alone. Ultimately green marketing requires that consumers want a cleaner environment and
are willing to "pay" for it, possibly through higher priced goods, modified individual
lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms
alone to lead the green marketing revolution. We need to come out through green myopia.
Having said this, it must not be forgotten that the industrial buyer also has the ability to
pressure suppliers to modify their activities. Thus an environmental committed
organization may not only produce goods that have reduced their detrimental impact on
the environment, they may also be able to pressure their suppliers to behave in a more
environmentally responsible fashion. Final consumers and industrial buyers also have the
ability to pressure organizations to integrate the environment into their corporate culture
and thus ensure all organizations minimize the detrimental environmental impact of their
activities.
Thus green marketing should look at minimizing environmental harm, not necessarily
eliminating it. Green marketing covers more than a firm's marketing claims. While firms
must bear much of the responsibility for environmental degradation, ultimately it is
consumers who demand goods, and thus create environmental problems. One example of
this is where 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
Page | 57
consumer who chooses to disposes of their waste in an inappropriate fashion. While firms
can have a great impact on the natural environment, the responsibility should not be theirs
alone. It appears that consumers are not overly committed to improving their environment
and may be looking to lay too much responsibility on industry and government.
Thus, we can say that there are sufficient opportunities for green marketing in the
Dehradun city but it may also face lot of challenges as considerable percentage of
population are not aware and also willing to know the affairs of green marketing initiatives.
We need to educate them through proper campaigns. Green marketer must find an
opportunity to enhance you product's performance and strengthen your customer's loyalty.
Page | 58
CHAPTER- FIVE
SUGGESTION
Page | 59
Suggestions:
Green marketing is still in its infancy and a lot of research is to be done on green
marketing to fully explore its potential. There are some suggestion that an
organizations should implement for catering challenges of green marketing and
successful exploitation of green marketing. Those are:
Consumer needs to be made more aware about the merits of Green products. It is still a
new concept for the masses. The consumer needs to be educated and made aware of the
environmental threats. It should be made sure that the consumer is aware of and
concerned about the issues that your product attempts to address. Green Marketing
campaign and green advertising is good step toward it.
Consumers must be motivated to switch brands or even pay a premium for the greener
alternative. Make sure that consumer feel that they can make a difference. Make sure
that consumer feel that they can make a difference. This is called “empowerment” and
due to this main reason consumers will buy greener products.
Further steps should be taken to control false promise and claim by the marketer to
maintain legitimacy and trustworthiness of green products. Consumers must be made to
believe that the product performs the job it’s supposed to do-they won’t forego product
quality in the name of the environment. For effective and efficient implementation of
this concept of Green Marketing the factor that plays a major role is the Government.
Unless the government creates specific and stringent laws and utilizes its authority to
implement them the concept cannot be conceptualized. If the Consumer, the
Organization and the Government work in unison towards the common goal of
minimizing the detrimental environmental impact of their activities, then they can
surely save this environment and make this world a better place to live in.
Thus leading brands should recognize that consumer expectations have changed.
It is not enough for a company to green its products; consumers expect the products
Page | 60
that they purchase pocket friendly and also to help reduce the environmental impact in
their own lives too.
Today’s consumers are becoming more and more conscious about the environment and
are also becoming socially responsible. Therefore, more companies should become
responsible to consumers’ aspirations. Many companies want to have an early mover
advantage as they have to eventually move towards becoming green. Green marketing
is very low on the agenda of most businesses and therefore its still an under-leveraged
USP (Unique Selling Proposition). Therefore, effective green marketing targeted at the
right audience will make a difference.
Page | 61
BIBLIOGRAPHY
Page | 62
BOOKS:
i. Kothari C.R. (2004), “Research Methodology Methods and Techniques”, N.
Delhi, New Age International Publication
ii. Green, Paul, Tull (2002) “Research for Marketing Decisions”, N. Delhi,
Prentice-Hall of India
iii. Sharma D.D. (2008), “Marketing Research: Principle Application & Cases” N.
Delhi, Sultan Chand & Sons
iv. Kotler P. (1999), “Marketing Management”, N. Delhi, Prentice-Hall of India.
v. Rajagpalan R. (2003), “Environment Studies”, N. Delhi, Himalayan Publishing
House.
vi. Certo, S.C. (1997), Modern Management, Englewood Cliffs, Prentice-Hall
WEBSITES:
i. http://www.scribd.com
ii. http://www.managementparadise.com
iii. http://www.businessworld.in
iv. http://www.outlookindia.com
v. http://en.wikipedia.org
vi. http://www.business-standard.com
vii. http://www.encyclopedia.com
Page | 63
ANNEXURE
Questionnaire: Opportunities & C
hallenges for Green
Marketing
1
Hello Sir/Madam,
I, Gyandeep Kumar, here to conduct a research on the topic “Opportunities & Challenges for
Green Marketing”. Please give your honest opinion and be understood that this information
collected will be purely confidential and not to be shared for any purpose other than research.
1. Have you heard of any campaign related to Green Marketing?
(a) Yes (b) No
2. If yes, then from which source of media?
(a) Television (b) Newspaper (c) Friends/ Family
(d) Magazines (e) Internet
3. Have you been part of any such campaign?
(a) Yes (b) No
4. Do you consider the environmental aspect of the product before buying them?
(a) Very Often (b) Often (c) Sometimes
(d) Rarely (e) Never
5. Do you think that Green Marketing and its advertising are good sources of information
about green products and services?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
6. Do you agree that Green Marketing activities are good at addressing environmental issues?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
7. Do you think Green Marketing activities results in better products?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
8. Why do companies opt for this strategy?
(a) Government pressure (b) Competitive pressure
(c) As a part of CSR (d) Immense opportunity
Questionnaire: Opportunities & C
hallenges for Green
Marketing
2
9. Do you think that Green Marketing strengthen company’s image in the mind of
consumers?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
10. Do you think that companies that focus on environmental concerns persuade consumers
to buy products?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
11. Green Marketing includes:
Highly
Agree
Somewhat
Agree
Neither Somewhat
Disagree
Highly
Disagree
(a) Product Modification
(b) Change in Production Process
(c) Packaging Change
(d) Modifying Advertising
(e) All of the Above
12. Do you think the strategy will help to grow the healthy environment?
(a) Yes (b) No
Thank You !!!