namex ijmr - abstract and paper 11

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GREEN MARKETING IN INDIA

Mrs. R. SUDHA

Research ScholarDepartment of Commerce, PSG College of Arts & Science, Coimbatore – 641 014

Email: [email protected]

ABSTRACT

Polonsky (1994) defines green marketing as, " All activities designed to generate and facilitate any exchanges intended to generate and facilitate any exchanges intended tosatisfy human needs or wants, such that the satisfaction of these needs and wantsoccurs, with minimal detrimental impact on the natural environment". India is aworld leader in green IT potential, according to a recently released global enterprisesurvey. Among the companies that have succeeded thus far in their green marketing

strategies are Apple, HP, Microsoft, IBM, Intel, Sony and Dell. HCL has acomprehensive policy designed to drive its environmental management programensuring sustainable development. HCL is duty bound to manufactureenvironmentally responsible products and comply with environmental management

processes right from the time products are sourced, manufactured, bought bycustomers, recovered at their end-of-life and recycled. As resources are limited and human wants are unlimited, it is important for the marketers to utilize the resourcesefficiently without waste as well as to achieve the organization's objective. So greenmarketing is inevitable. The paper examines the present trends of green marketing in

India and its future.

Key Words: Green Products, Recyclable, Environmentally safe, Eco Friendly, Natural Environment, Sustainable Development, Green Marketing.



Namex International Journal of Management Research 103 Vol. No.2, Issue No.1, Jan – June 2012

Green Marketing In India

INTRODUCTION

Green Marketing" refers to holisticmarketing concept wherein theproduction, marketing consumption

and disposal of products and serviceshappen in a manner that is lessdetrimental to the environment withgrowing awareness about theimplications of global warming, non-biodegradable solid waste, harmfulimpact of pollutants etc. Bothmarketers and consumers arebecoming increasingly sensitive to theneed to switch into green products andservices. While the shift to "green"may appear to be expensive in theshort term, it will definitely prove to beindispensable and advantageous, cost-wise too, in the long run.

Why Green Marketing?

As resources are limited and humanwants are unlimited, it is important forthe marketers to utilize the resourcesefficiently without waste as well as toachieve the organization's objective.So green marketing is inevitable. Thereis growing interest among theconsumers all over the world regardingthe protection of the environment.Worldwide evidence indicates peopleare concerned about the environmentand are changing their behavior. As aresult of this, green marketing hasemerged which speaks for the growing

market for sustainable and sociallyresponsible products and services.Thus the growing awareness amongthe consumers all over the worldregarding protection of theenvironment in which they live, Peopledo want to bequeath a clean earth totheir offspring. Various studies byenvironmentalists indicate that peopleare concerned about the environment .Now we see that most of the

consumers are becoming more

concerned about environment-friendlyproducts.

GOLDEN RULES OF GREENMARKETING

1. Know your Customer: Make surethat the consumer is aware of andconcerned about the issues thatyour product attempts to address.

2. Educating your customers: it is not just a matter of letting people knowyou're doing whatever you're doingto protect the environment, but alsoa matter of letting them know whyit matters.

3. Being Genuine & Transparent:means that a) you are actuallydoing what you claim to be doingin your green marketing campaignand b) the rest of your businesspolicies are consistent withwhatever you are doing that'senvironmentally friendly.

4. Reassure the Buyer: Consumersmust be made to believe that theproduct performs the job it'ssupposed to do-they won't foregoproduct quality in the name of theenvironment.

5. Consider Your Pricing: If you'recharging a premium for yourproduct-and many environmentallypreferable products cost more dueto economies of scale and use of higher-quality ingredients-makesure those consumers can afford

the premium and feel it's worth it.

SOME CASES

Google Trends reports that, on arelative basis, more searches for “greenmarketing” originated from I ndia thanfrom any other country. Indianrespondents scored over respondentsfrom 10 other countries in expecting topay 5% or more for green technology

if its benefits for the environment andreturn on investment (ROI) are proven





in a survey conducted by GreenFactor,which researches and highlights green

marketing opportunities.

Table No.1 Countries ranked according to their response level on GreenMarketing

Rank Countries1 India2 UK3 US4 Thailand5 Australia6 Canada7 China

Source - www.google.com

Initiatives Taken Up By BusinessOrganisations Towards GreenMarketing

Lead Free Paints From KansaiNerolac

Kansai Nerolac Paints Ltd., hasalways been committed to the welfareof society and the environment. KansaiNerolac has worked on removinghazardous heavy metals from theirpaints. Lead in paints especially posesdanger to human health where it cancause damage to Central NervousSystem, kidney and reproductivesystem. Children are more prone tolead poisoning leading to lowerintelligence levels and memory loss.

Going Green: Tata's New Mantra

Tata Motors is setting up an eco-friendly showroom using naturalbuilding material for its flooring andenergy efficient lights. The IndianHotels Company, which runs the Tajchain, is in the process of creating Ecorooms which will have energy efficientmini bars, organic bed linen andnapkins made from recycled paper.

And when it comes to illumination, therooms will have CFLs or LEDs.

Suzlon Energy

The world’s fourth largest wind -turbine maker is among the greenestand best Indian companies in India.Tulsi Tanti, the visionary behindSuzlon, convinced the world that windis the energy of the future and built hisfactory in Pondicherry to run entirelyon wind power. Suzlon’s corporatebuilding is the most energy-efficientbuilding ever built in India.

Tata Metaliks Limited (TML)

Every day is Environment Day atTML, one of the top green firms inIndia. A practical example that madeeveryone sit up and take notice is the

company’s policy to d iscourageworking on Saturdays at the corporateoffice. Lights are also switched off during the day with the entire officedepending on sunlight.

Tamil Nadu Newsprint and PapersLimited (TNPL)

Adjudged the best performer in the2009-2010 Green Business Survey,

TNPL was awarded the GreenBusiness Leadership Award in the Pulp





and Paper Sector. The initiativesundertaken by this top green firm inIndia includes two Clean DevelopmentMechanism projects and a wind farmproject that helped generate 2,30,323

Carbon Emission Reductions earningRs. 17.40 Crore.

Oil and Natural Gas Company(ONGC)

India’s largest oil producer, ONGC, isall set to lead the list of top 10 greenIndian companies with energy-efficient, green crematoriums that will

soon replace the traditional wooden pyre across the country. ONGC’sMokshada Green Cremation initiativewill save 60 to 70% of wood and afourth of the burning time per

cremation.

IndusInd Bank

Green banking has been catching up asamong the top Indian green initiativesever since IndusInd opened thecountry’s first solar -powered ATM andpioneered an eco-savvy change in theIndian banking sector.

Traditional Marketing Vs Green Marketing

Organizational GoalImmediate Channel Network PSLC Cradle To GraveFragmented Thinking Integrated ThinkingNon-Boundary Spanning Boundary SpanningShort Term Orientation Long Term Orientation

Philosophical Basis:Anthropocentric Bio-centricEcosystem an open sink Ecosystem physical limiting factor

Ecological accountability/responsibilityLimited product risk Product risk Local/regional/national Global/internationalNo/underpaid ecological costs Full accounting of ecological cost

Individual organization alone is responsible PSLC members are mutuallyresponsible

A public sector responsibility Both PSU & private sector

General tools/ approaches:

Use Planning To Minimize The Cost Of Local

Use PLC Assessment &Environmental Waste Disposal.Audits

Reactive Approach To Waste Management Proactive ApproachIsolated Department Functions Use Of Cross Functional TeamFocus On Industrial Function Focus On Processes

Total Quality Management Total Quality EnvironmentalManagement

Use Of Strategic Alliances To Accomplish

Traditional Goals

Use Of Strategic Alliances To

Accomplish Sustainable GoalsFocus On Tangible Goods Focus On “Products As Services”





PRESENT TRENDS IN GREENMARKETING IN INDIA

Governmental Bodies are forcingFirms to become more responsible. Inmost cases the government forces thefirm to adopt policy which protects theinterests of the consumers.Competitors' Environmental Activitiespressure the firms to change theirEnvironmental Marketing Activities.

THE FUTURE OF GREENMARKETING

There are many lessons to be learnedto avoid green marketing myopia, theshort version of all this is that effectivegreen marketing requires applyinggood marketing principles to makegreen products desirable forconsumers. Evidence indicates thatsuccessful green products haveavoided green marketing myopia byfollowing three important principles:

1. CONSUMER VALUEPOSITIONING

Design environmental products toperform as well as (or better than)alternatives.

Promote and deliver the consumerdesired value of environmentalproducts and target relevantconsumer market segments.

Broaden mainstream appeal bybundling consumer desired valueinto environmental products.

2. CALIBRATION OFCONSUMER KNOWLEDGE

Educate consumers with marketingmessages that connectenvironmental attributes withdesired consumer values.

Frame environmental productattributes as “solutions” forconsumer needs.

Create engaging and educationalinternet sites about environmentalproducts desired consumer value.

3. CREDIBILITY OF PRODUCTCLAIM

Employ environmental product andconsumer benefit claims that arespecific and meaningful.

Procure product endorsements or

eco-certifications from trustworthythird parties

MARKETING MIX OF GREENMARKETING :

Just as we have 4Ps product prices,place and promotion in marketing, wehave 4ps in green marketing too, butthey are a bit different. They arebuttressed by three additional Ps,

namely people, planet and profits.

A. PRODUCT:

The products have to be developeddepending on the needs of thecustomers who prefer environmentallyfriendly products. Products can bemade from recycled materials or fromused goods. Efficient products not onlysave water, energy and money, but alsoreduce harmful effects on theenvironment. The marketer's role inproduct management includesproviding product designers withmarket-driven trends and customerrequests for green product attributessuch as energy saving, organic, greenchemicals, local sourcing, etc., Forexample, the Sony company has setforth the Sony Group EnvironmentalVision, the goal of wh ich is a “zeroenvironmental footprint,” that is,reduction of the environmental





footprint of their corporate activitiesand of every Sony product throughoutits life cycle to zero, and they continueto pursue a wide range of relatedinitiatives. They will strive to achieve

this by 2050; their goals for the firstphase, which continues through 2015,are outlined in Green Management2015.

Fig: No: 1 Sony Company’s Environmental Perspectives

Nike is the first among the shoecompanies to market itself as green. Itis marketing its Air Jordan shoes asenvironment-friendly, as it hassignificantly reduced the usage of harmful glue adhesives. It has designedthis variety of shoes to emphasize thatit has reduced wastage and usedenvironment-friendly materials.

B. PRICE

Green pricing takes into considerationthe people, planet and profit in a waythat takes care of the health of employees and communities andensures efficient productivity. Valuecan be added to it by changing itsappearance, functionality and throughcustomization, etc. Wall Mart unveiledits first recyclable cloth shopping bag.IKEA started charging consumerswhen they opted for plastic bags and

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

C. PLACE

Green place is about managinglogistics to cut down on transportationemissions, thereby in effect aiming atreducing the carbon footprint. Forexample, instead of marketing animported mango juice in India it can belicensed for local production. Thisavoids shipping of the product from faraway, thus reducing shipping cost and

more importantly, the consequentcarbon emission by the ships and othermodes of transport.

D. PROMOTION

Green promotion involves configuringthe tools of promotion, such asadvertising, marketing materials,signage, white papers, web sites,videos and presentations by keeping

people, planet and profits in mind.Indian Tobacco Company has





introduced environmentally-friendlypapers and boards, which are free of elemental chlorine. Toyota is trying topush gas/electric hybrid technologyinto much of its product line. It is also

making the single largest R&Dinvestment in the every-elusivehydrogen car and promoting itself asthe first eco-friendly car company.

WHY IS GREEN MARKETINGCHOSEN BY MOSTMARKETERS?

Most of the companies are venturinginto green marketing because of thefollowing reasons:

a. Opportunity

In India, around 25% of the consumersprefer environmental-friendlyproducts, and around 28% may beconsidered healthy conscious.Therefore, green marketers havediversified and fairly sizeablesegments to cater to. The Surf Exceldetergent which saves water and theenergy-saving LG consumers durableare examples of green marketing

b. Social Responsibility

Many companies have started realizingthat they must behave in anenvironment-friendly fashion. Theybelieve both in achieving

environmental objectives as well asprofit related objectives. Respectingthe principle of extended producerresponsibility (EPR), the SonyCompany will continue to promote thedevelopment and efficient operation of low-environmental-impact recyclingsystems suited to the needs of localcommunities. With the aim of reducing resource use, the SonyCompany has planned to step up

efforts to design products that are easyto recycle, as well as to promote the

establishment of legislation thatenshrines the concept of individualproducer responsibility (IPR) and thebuilding of an infrastructure forrecycling Sony products.

c. Governmental Pressure

Various regulations are framed by thegovernment to protect consumers andthe society at large. The Indiangovernment too has developed aframework of legislations to reduce theproduction of harmful goods and by-products. These reduce the industry'sproduction and consumers'consumption of harmful goods,including those detrimental to theenvironment; for example, the ban of plastic bags, prohibition of smoking inpublic areas, etc.

d. Competitive Pressure

Another major force in theenvironmental marketing area has beena firm‘s desire t o maintain itscompetitive position. It is only insome instances that this competitivepressure causes an entire industry tomodify and thus reduce its detrimentalenvironmental behavior. For example,it could be argued that Xerox's "Revive100% Recycled paper" was introduceda few years ago in an attempt toaddress the introduction of recycledphotocopier paper by other

manufacturers.

e. Cost Reduction

Reduction of harmful waste may leadto substantial cost savings. Sometimes,many firms develop a symbioticrelationship whereby the wastegenerated by one company is used byanother as a cost-effective rawmaterial. For example, the fly ash

generated by thermal power plants,which would otherwise contribute to a





gigantic quantum of solid waste, isused to manufacture fly ash bricks forconstruction purposes.

BENEFITS OF GREEN

MARKETING

Companies are responsible toconsumers' aspirations forenvironmentally less damaging orneutral products. Many companieswant to have an early-mover advantageas they have to eventually movetowards becoming green. Some of theadvantages of green marketing are:

It ensures sustained long-termgrowth along with profitability.

It saves money in the long run,though initially the cost is more.

It helps companies market theirproducts and services keeping theenvironmental aspects in mind. Ithelps in accessing the new marketsand enjoying competitiveadvantage.

Most of the employees also feel proudand responsible to be working for anenvironmentally responsible company.

Problems Associated With GreenMarketing

Credibility :

One of the main problems is that firms

using green marketing must ensure thattheir activities are not misleading toconsumers or industry, and do notbreach any of the regulations or lawsdealing with environmental marketing.

Don’t Follow Consumer’sPerception Blindly :

Another problem firms face is thatthose who modify their products due toincreased consumer concern mustcontend with the fact that consumers'

perceptions are sometimes not correct.Take for example the McDonald's casewhere it has replaced its clamshellswith plastic coated paper.

Back Up Your Marketing with GoodTechnical Assistance

When firms attempt to become sociallyresponsible, they may face the risk thatthe environmentally responsible actionof today will be found to be harmful inthe future.

Lack of Policies

While governmental regulation isdesigned to give consumers theopportunity to make better decisions orto motivate them to be moreenvironmentally responsible, there isdifficulty in establishing policies thatwill address all environmental issues.

Don’t Follow the CompetitionBlindly

Reacting to competitive pressures cancause all "followers" to make the samemistake as the "leader.

Try To Minimize the Waste, RatherThan Find Appropriate Uses For It

Most waste produced will enter thewaste stream, therefore to beenvironmentally responsible

organizations should attempt tominimize their waste, rather than find"appropriate" uses for it.

PATHS TO GREENNESS

Green marketing involves focusing onpromoting the consumption of greenproducts. Therefore, it becomes theresponsibility of the companies toadopt creativity and insight, and be

committed to the development of environment-friendly products. This





will help the society in the long run.Companies which embark on greenmarketing should adopt the followingprinciples in their path towards"greenness."

Adopt new technology/process ormodify existing technology/processso as to reduce environmentalimpact.

Establish a management andcontrol system that will lead to theadherence of stringentenvironmental safety norms.

Using more environment-friendlyraw materials at the productionstage itself.

Explore possibilities of recyclingof the used products so that it canbe used to offer similar or otherbenefits with less wastage.

CONCLUSION:

Now this is the right time to select“Green Marketing” globally. It willcome with drastic change in the worldof business if all nations will make

strict rules because green marketing isessential to save the world frompollution. From the business point of view because a clever marketer is onewho not only convinces the consumer,

but also involves the consumer inmarketing his product. With the threatof global warming looming large, it isextremely important that greenmarketing becomes the norm. Finally,consumers, industrial buyers andsuppliers need to pressurize effects onminimizing the negative effects on theenvironment. Green marketingassumes even more importance andrelevance in developing countries likeIndia.

REFERENCES1. http://www.e-articles.info/e/a/title/Green-Marketing/ 2.http://www.greenmarketing.net/stratergic.html3. http://www.epa.qld.gov.au/sustainable_industries4. http://www.google.com

5.http://www.greenmarketing.net/strategic.html.

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http://www.scribd.com/doc/6988130/Embedded-Systems

http://www.scribd.com/doc/6988133/Extensible-Markup-Language-Parsing-Techniques

http://www.scribd.com/doc/6988139/Green-Marketing

http://www.scribd.com/doc/6988144/How-to-Become-a-Hacker

http://www.scribd.com/doc/6988147/HBook-What-Actually-the-Words-Mean-

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