sxc final project sem 6

7/28/2019 Sxc Final Project sem 6

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[ T y p e t h e c o m p a n y

n a m e ]

[ T y p e

S U B M I T E D B Y :

A M A N T A M A K U W A L A

R O L L N O . - 3 4 0

B . C O M ( H )

U N D E R G U I D A N C E O F :

P R O F . D R . P . P . G H O S H

D E P A R T M E N T O F C O M M E R C E

S T X A V I E R S C O L L E G E K O L K A T A

GREEN MARKETING-A Way Towards Sustainability


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GREEN MARKETING-A Way Towards Sustainability 2013

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PREFACE

Professional education is not perfect without fieldwork. Project is an essential part. It makes

familiar to the student with current market position .This report is a humble attempt to

understand the concept of green marketing. Driven by fears for the future, consumer demand

for sustainable products is built on trust. This project report will be helpful in analyzing the

consumer perception towards products and services. This manual is about the new rules of

green marketing that increasingly characterize the purchasing sensibilities of billions of

consumers around the world.This manual is also about these two forces coming together to

open the doors for young, innovative upstarts such as Method to go green and mainstream

from their very beginnings and what everyone can learn by studying their ingeniously unique

strategies.

I am very thankful who have directly or indirectly helped me in preparing the project.


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ACKNOWLEDGMENT

This Project report has been possible through the direct and indirect co-operation of various

persons who bears the imprint of their efforts for my work. I take up this opportunity to

acknowledge the invaluable assistance of various people who helped me in successful

completion of this Project Report.

Firstly, I would like to thank my supervisorProf. P.P.Ghosh for his consultation,

guidance and assistance.

I would like to express my thanks to the relatives, friends and neighbors who provided

me the necessary resources to complete the Project & the provided help to me at every step.

I am also very thankful to the St. Xaviers College for introducing this Project work in

the main curriculum of Semester VI. This project has allowed me a practical exposure in the

corporate field and a brief introduction in the day-to-day working of an organization.

AMAN TAMAKUWALA


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CHAPTERISATIONSerial

No. Name of the Topic

Page

No.

Chapter -1 1 Introduction 5

1.1 History 6

1.2 Adoptability 9

Chapter - 2 Research Objectives 11

Chapter - 3 Literature Review 13

Chapter - 4 Research Methodolo 16Chapter- 5 Data Analysis & Interpretation 18

Chapter - 6 Conceptual Framework 26

4.1 Golden Rules of Green Marketing 27

4.2 Green Marketing : Adoption by Firms 28

4.3 Green Business Cycle 30

Chapter - 7 SWOT Anal sis 33

Chapter - 8 Practical Approach 36

8.1 Present Trend in Green Marketing in India 37

8.2 Green Marketin g: Corporate Initiatives(with Case

Studies)

39

CASE

STUDIES

Sony: Green ODO Line Products 39

Dell: Green Packing Initiative 41

Maruti Suzuki 43

Continental Airlines 45

Chapter - 9 Limitations of the Project 47

Chapter -10 Conclusion & Recommendations 49

10.1 Conclusion 5010.2 Recommendations 52

APPENDIX 53

Questionnaire 54

Bibliography 55

Annexure 56


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History

Although the term cause-related marketing is attributed to

American Express and its 1983 Statue o f Liberty Restoration project, the history of cause

marketing as we know it today dates back even further. The actual first cause-marketing

campaign may forever remain a mystery. For example, Marriott and the March of Dimes conducted

a cause-focused campaign in 1976. Famous Amos Cookies and Literacy Volunteers of America

also created a long-running cause-related promotion in

1979. American Express copyrighted the term Cause-Related Marketing but made no attempt to

limit the terms general use.

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 U.S. and other countries

have struggled to reach critical mass and to remain in the forefront of shoppers' minds. While public

opinio n 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 favor environmenta lly conscious


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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 definit io n of

"how good is good enough" when it comes to a product or company making green marketing claims.

This lack of consensusby consumers, marketers, activists, regulators, and influent ial peoplehas

slowed the growth of green products, says Makover, because companies are often reluctant to promote

their green attributes, and consumers are often skeptica l about claims.

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

o Product modification,

o Changes to the production process,

o Packaging changes, as well as

o Modifying advertising.


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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 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". 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 it 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. The not-so-obvious

assumption of green marketing is that consumers will be willing to pay more for green products than

they would for a less-green comparable alternative product - an assumption that has not been proven

conclusively, specially the mild effect which it had had on consumers has washed away by the p resent

recession (2008-09) only.

People buy billions of dollars worth of goods and services every yearmany of which harm the

environment in the way they are harvested, made, or used. Environmentalists support green

marketing to encourage people to use environmentally preferab le alternatives, and to offer

incentives to manufacturers that develop more environmental ly bene ficial products.


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Adoptability

In 1989, 67 percent of Americans stated that they were willing to

pay 5-10 percent more for ecologically compatible products. By 1991, environmentally conscious

individuals were willing to pay between 15-20 percent more for green products. Today, more than

one-third of Americans say they would pay a little extra for green products. An important challenge

facing marketers is to identify which consumers are willing to pay more for environmentally friendly

products. It is apparent that an enhanced knowledge of the profile of this segment of consumers

would be extremely useful.

Everett Rogers, communication scholar and author of Diffusion of Innovations, claims that the

following five factors can help determine whether a new idea will be adopted or not, including the

idealism of the shift towards green:

1. Relative advantage: is the degree to which the new behavior is believed to accrue more

beneficial outcomes than current practice.


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2. Observability: ishow easy it is to witness the outcomes of the new behavior.

3. Trialability: is the ease with which the new behavior can be tested by an individual without

making a full commitment.

4. Compatibility: is the degree to which the new behavior is consistent with current practice.

5. Complexity: is how difficult the new behavior is to implement.

This green marketing booklet has been developed to help your SMEs to perfect a successful

Presentation of environmental commitment.


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Objective of the Study

To understand the concepts and importance of Green marketing.

To know the benefits of green marketing to sustainable development.

To study the background of sustainable development.

To understand the level of awareness regarding green marketing among consumers.

To understand the buying behavior of consumers related to green marketing.

To understand how green marketing helps Company to built its image.

To understand the success of green marketing as a corporate social responsibility.


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Literature Review

Cateora Graham, in International Marketing,

Has drawn a parallel line between green marketing and product development. The author has cited a

variety of examples where the importance of green marketing has been laid focus on. Green

marketing is term used to identify concern with the environmental consequences of a variety

ofmarketing activities. It very evident from the authors research and examples the packaging and

solid waste rules are burdensome but there are successful cases of not only meeting local standards

but also being able to transfer this approach to other markets.

Philip Kotler and Kevin Lane Keller in Marketing Management,

Has initiated the topic by discussing about the relevance of green marketing in the past few decades

and has also discussed the explosion of environmentally friendly products. However, according to

the author from the branding perspective green marketing programs have not been very successful.

Marketers tried and failed with green sales pitches over

thelast decade because of certain obstacles which the movement encountered. The consumer

behavior is such that most consumers appear unwillingly to give up the benefits of other alternatives

to choose green products. Along with definitions from different sources, the authors

Debraj Dutta and Mahua Dutta, of Marketing Management,

Have given an explanation of what is green marketing. According to the authors green marketing


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incorporates a broad range of activities including the modification of product, production process

and packaging. The authors have also discussed a few literature sources that have focused on green

marketing and its relevance in todays era. It was evident that the possible reasons because of which

organizations engage in green marketing.

K.K.Shrivastava & Sujata Khandai, the author of Consumer Behavior in Indian Context,

Has discussed green marketing legislation in association with themultinational corporations. These

face a growing variety of legislation designed to address environmental issues. Global concern for

the environment extends beyond industrial pollution, hazardous waste disposal and rampant

deforestation to include issues that focus directly on consumer products.


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Methodology

This paper has solicited the information from primary and secondary data. Field work in relation to

the case studies included in the project has been done through outlets, subsidiaries etc. Its secondary

data consist of reference books, research journals, newspapers and web-sites. Data was collected in

relation to fulfill the designed objectives of this paper.

Primary Data Collection:The data has been collected from the respondents through personal interviews and a detailed

questionnaire was designed for that purpose. The questionnaire was designed according to the research

objectives; the questions fulfill the aim of determining the impact on consumers towards green

marketing.

Secondary data collection:Secondary data is very important to complete a project report. The purpose of this data was to

supplement the primary data. The secondary sources of collecting data was-

Internet.

Magazines.

Size of sample:This refers to the numbers of items to be selected from universe to constitute asample. An optimum

sample is one, which fulfills the requirements of efficiency, representativeness, reliability andflexibility.

Sample size - 50 consumers


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DATA ANALYSIS & INTERPRETATION

RESULTS:According to the analysis of questionnaire most of the respondents were not aware about green

marketing but after reading the questionnaire they realized what it is all about.

1. Are you aware of the term green marketing?a. Yes b. No

14

36

0 5 10 15 20 25 30 35 40

No

Yes

The above bar graph indicates that out of 50, 36 respondents are not familiar with the term Green

Marketing. Many of them have a misconception with the term Green Marketing.

2.

Have you heard of any campaign related to Green Marketing?a. Yes

b. No


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From this bar chart we can say that most of the respondents are not aware of any campaign related to

green marketing.

3. Have you been part of any such campaign?a. Yes b. No

We can see here that out of 50 respondents only 3 has been part of such type of campaign.


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4. Do you consider the environmental aspects of the products before buying them?a. Yes b. No c. Sometimes

The above chart indicates that only 48% i .e. the majority of respondents consider the

Environmental aspect sometimes. And, only 24% consider the environmental aspect of the product

while buying it.

5. Do you think that Green Marketing and advertising are good sources of information about

green products and services?a. Yes b. No


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From this pie chart, it indicates that 94% respondents think that green marketing and advertising are

good sources of information about green products and services.

6. Do you think that Green Marketing activities are good at addressing environmental issues?

a. Yes b. No

We can see most of the respondents feel that Green marketing activities are good at addressing

environmental issues.


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7.

Do you think Green Marketing act ivities results in better products?a. Yes b. No

In this above bar chart it is clearly indicates that 82% of respondents think this strategy results in better

products while 18% have different opinion.

8. Do you think that Green Marketing strengthen companys image in the mind of consumers?

a. Yes b. No


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The above chart indicates, majority of the respondents, i.e. 37 respondents feel that it strengthen

companys image in the mind of consumers.

9. Do you think that companies that focus on environmental concerns persuade consumers to buy

products?

a. Yes b. No

Most of the respondents feel that it helps to persuade consumers to buy products.

10. Do you think that by implementing green marketing strategy the companies are able to gain

competitive advantage over others?

a. Strongly agree

b. agree

c. disagree

d. strongly disagree


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Most of them agree that by implementing green marketing strategy the companies are able to gain

competitive advantage over others.

11. Do you think sometimes companies are trying to cheat customers in the name of green products?

a. Yes b. No

Here, we can say that most of the respondents have negative opinion. They feel that sometimes

companies are trying to cheat the customers in the name of green products.


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Golden Rules of Green Marketing

1. Know Your Customer: Make sure that the consumer is aware of and concerned about the issues

that your product attempts to address.

2. Empower Consumers: Make sure that consumer feel by themselves or in concert with all the other

users of your product, that they can make a difference. This is called empowerment and due to this

main reason consumers will buy greener products.

3. Be Transparent: Consumers must believe in the legitimacy of the product and the specific claims

made in regard.

4. Reassure the Buyer:Consumers must be made to believe that the product performs the job its

supposed to do-they wont forego product quality in the name of the environment.

5. Consider Your Pricing: If youre charging a premium for your product-and many

environmentally preferable products cost more due to economies of scale and use of higher- quality

ingredients- make sure those consumers can afford the premium and feel its worth it.


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Green Marketing: Adoption by firms

Green marketing has been widely adopted by the firms worldwide and the fo llo wing are the possible

reasons cited for this wide adoption:

1) OPPORTUNITIES - As demands change, many firms see these changes as an opportunity to be

explo ited and have a competitive advantage over firms marketing non-environmentally responsible

alternatives. Some examples of firms who have strived to become more environmentally responsible,

In an attempt to better satisfy their consumer needs are:

McDonald's rep laced its clam shell packaging with waxed paper because of increased consumer

concern relating to polystyrene production and Ozone depletion.

Xeroxintroduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of

firms for less environmentally harmful products.

2) GOVERNMENTAL PRESSURE - As with all marketing related activities, governments want to


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"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. Governments establish regulations designed to control the amount of hazardous wastes

produced by firms.

New Delhi, the India's capital was getting polluted gradually at a very fast pace t ill 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 pollut ion.

3) COMPETITIVE PRESSURE - Another major force in the environmental marketing area has been

firms' desire to maintain their co mpet it ive position. In many cases firms observe co mpet itors

promoting their environmental behaviors and attempt to emulate this behavior. In some instances this

competitive pressure has caused an entire industry to modify and thus reduce its detrimental

environmental behavior.

4) SOCIAL RESPONSIBILITY- Many firms are beginning to realize that they are members of the

wider community and therefore must behave in an environmentally responsible fashion. This translates

into firms that believe they must achieve environmental objectives as well as profit related objectives.

This results in environmental issues being integrated into the firm's corporate culture. A firm that 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 facilit ies are not highlighted in their general tourist promotional activit ies.


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Green Business Cycle

GREEN IN MANUFACTURING

This focuses on using renewable energy for production and minimizing air and water pollution during

the manufacturing process.

Example: Energy Star is helping businesses and consumers save money and check pollution. Energy

star has its own pre defined parameters and gadgets which conform to the energy efficiency standards.

The businesses that jo in hands with energy star sign an MOU and upgrade their facility as per the

requirement outlined by Energy Star. There are about 2,400 corporations, hospitals, schools and other

organizations, which are energy star compliant in the US today.

GREEN IN PRODUCT DEVELOPMENT

This refers to either environment friendly or environment efficient products as demonstrated by the

fo llo wing examples.

Example: Kodaks Recyclable Camera When Kodak created its first disposable camera it also

solved the waste disposal problem by initiating a camera take back scheme during picture

processing. This not only reduced the waste disposable problem, it also saved Kodak the

manufacturing costs for new cameras. This made it completely recycled camera.


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GREEN IN SUPPLY CHAIN

Example: McDonalds 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 dispose of their waste in an inappropriate fashio n.

With the intent to cut costs and work on eco-friendly image and practices McDonalds tried to reduce

the amount of material disposed by its stores. McDonalds asked the supplier to do away with the

cartons for napkins. The supplier suggested a better way and came up with dimpling pattern on

napkins, which enabled the supplier to pack 25% more napkins in one box and reduction in shipping

cost accordingly. McDonalds also allied with Environment Defense Fund (EDF) and created a waste

reduction plan. It also made a Paper Task Force to focus on paper waste reduction and better solid

waste management.

GREE

NIN PACKAGING

Packaging is a key element of marketing mix for promoting Green washing. It can also be an

effect ive too l to d isplay the Green component of the product.

Natural Package for a Natural Product: When creating product materials, markets need to

remember that a Green product is appealing to consumers for its benefits to the environment and for

its roots in natural resources. There should be a consistent look for the product package, or materials

that appear natural, not glossy or extravagant.


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GREEN IN SERVICES

With increased demand for value-based marketing, there is also growing demand ofGreen services.

Global customers are not only interested in cost cutting through outsourcing but are also looking for

energy efficient IT operations.

Example: ITC InfoTech is a good example to understand how to package the services Green

ITC InfoTech is a Bangalore based independent Subsidiary of ITC Ltd. At corporate level ITC is

working to establish itself as a carbon free co mpany. The company is working on Triple Bottom

Line i.e. soc ia l, economic and environmental capital. It is one of the 10 companies globally and first

one from India to start publishing sustainability report in compliance with G3 guidelines of Global

Reporting Initiat ive.

The company is investing in large-scale plantations to wash away its carbon positive

image.


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SWOT ANALYSIS

STRENGTHS

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.

WEAKNESS

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 beca use 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.

OPPORTUNITIES

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


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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.

EXTERNAL 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).


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Present Trends in Green Marketing in India

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 market ing such green products are preferred over the others not

doing so and thus develop a competitive advantage, simultaneously meeting their business

objectives.

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 byproducts

Modify consumer and industrys use and /or consumption of harmful goods; or 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.


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Cost Factors Associated With Waste Disposal or Reductions in Material Usage Forces

Firms to Modify their Behavior

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.


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Green Marketing: Corporate Initiatives

It is important in todays world because mankind has limited resources on the earth and if we want

long term sustainability of human life on this earths surface, then companies has to learn to conserve

these scarce natural resources and create products that have less environmental damage. Otherwise the

very existence of humankind will be under question mark.

Corporate are going green from the grassroots level to sustain and win the customers expectations.

The environment is becoming increasingly important part of the corporate reputations and they are

actively participating in greening the corporate strategy. Companies have converted almost all the

products to make them eco-friendly products. Following are the recent environment fr iendly init iat ives

taken by the companies.

Sony: Green ODOLine Products


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Sony has recent ly launched developed and launched a range of innovative products named as ODO

line products also called as Eco-chic. These products do not require AC adapter as they were powered

by kinetic or solar energy. Sony has used simplified packaging and recycled plastic in the

manufacturing of ODO products as a Sustainable Product initiative.

The ODO line products comprise of five products:

1. Spin N Snap: The spin and snap is a digital camera. It has two holes which are used as

viewfinder and chargers. On spinning the camera on ones fingers generates kinetic energy and

charges the device.

2. Push Power Play: Push power play is a display device with a roller on the base. The rollers

are used to charge the device by the friction of the device with hard surface.

3. CrankN Capture: Crank and Capture is a digital video camera with a crank used to operate

and generate power.

4. Pull and Play: The pull and play is a stereo headphone with a cord to simply pull and use.

5. Juice Box : The juice box is a credit card sized object used to recharge the other ODO

products.


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Sony has also added a new Twirl N Take hand powered digital camera to the odo line series.

Twirl N take digital camera has a sleek stem circle design. It is recharged by rolling the round

wheel on the hard surface.

Dell: Green Packaging Initiative

Greener Products and Packaging Initiatives.

We've all experienced problems with product packaging at some point. Fancy boxes you can t recycle,

large boxes for a small product and everyones least favorite packaging material Styrofoam.

Businesses placing large orders can find it difficult to manage the volume o f boxes and packing

materials, an obstacle to efficiently unpacking and setting up equipment, as well as a challenge to their

recyclingand waste management goa ls.


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At Dell, we are committed to developing innovat ive so lutions to help solve these packaging problems

with the ult imate goal of helping businesses and households reduce their packaging waste. We turned

this co mmitment into our 3Cs packaging strategy thatfocuseson the cube, the content and the curb.


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Maruti Suzuki

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 fr iendly. The company credited the 'Just- in-Time' philo sophy

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 aquifers. Also, recyclable packing for bought

out components is being actively promoted.

The company has been facilitating implementation o f 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 environmenta l

performance of supp liers are audited. The green co-efficient of this system is much better than the

conventional system

The Countrys largest car manufacturer had managed to slash energy consumpt ion per car at its

Gurgaon factory by 26 per cent over the past six years, while its carbon dioxide (CO2) emissions

during car manufacturing processes has come down 39 per cent in the past five years. The model with

gas as fuel was adopted by Maruti Suzuki India Limited as their Green Marketing practices.


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.Maruti Suzuki : Green Growth

Over the years, through sustained investment on environment friendly technology for both products and

processes and in-house innovations, Maruti Suzuki has been able to bring down the per unit

consumption of precious natural resources like power and water. On every car manufactured by Maruti

Suzuki, there is

20% reduction in energy (power) consumption compared to 2000-01

54% reduction in water consumption compared to 2000-01

All Maruti Suzuki production facilities at Gurgaon and Manesar are ISO 14001 certified. Maruti

Suzuki was the country's first passenger car company to be certified for Environment Management

Systems as per ISO 14001 :1996 in 1999. The company has based its production operations on

the principle of"Smaller, fewer, lighter, shorter and neater". While a full-fledged department co-

ordinates environment init iatives, employees and partners contribute in promoting the 'Three R-

s':Reduce, Recycle and Reuse so that stress on natural resources is minimal in the manufacturing

processes.

Maruti Suzuki India Limited, the leader in Indian car market, has bagged the 'Golden Peacock

Eco-Innovat ion Award' for adopting environment friendly technology in its products and processes.


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Continental Airlines: Taking fuel efficiency to theskies

Continental Airlines has spent over $16 billion in the last decade to replace its entire fleet of airplanes

with more fuel-efficient ones, in addition to installing fuel-saving winglets that cut emissions 5% on

its 737 model aircraft. Beyond that, nitrogen oxide emissions from Continentals busy Houston hub

have been sliced by an astounding 75% since the year 2000. Continental might also be the only

company with 12 full time staff environmentalists on the payroll who are constantly pairing up with

engine manufacturers to design greener, more efficient processes into company operations. And is if

this werent enough, the company makes a point of sorting all of its trash to see what can be recycled.

Continental Airlines has implemented many measures to ensure utmost efficiency in their

operations. Their site states that they are the most fuel efficient major US carrier. Certainly, they

have backed this talk with concrete measures that have paid off. Here are several facts about their

fleet:

Continental has invested more than $12 billio n to acquire 270 energy fuel efficient aircraft and

equipment. This has resulted in a 35% reduction of greenhouse gas emission and fuel consumption per

revenue passenger mile.

As a result of investing heavily in fleet modernization, Continental has mitigated its greenhouse gas

emiss ion by 1.2 million metric tons.

The airline employs twin-engine aircraft, which consume less fuel and emit less CO2 than three- or

four-engine ones.

The company has installed more efficient fan blades to the engines of their Boeing 777s.


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Continentaly has outfitted their planes with winglets, which are designed to reduce emissions and

noise.

Continental Airlines has not only invested in and modified their fleet but they also have altered their

operations in such a way as to be more ecologically friendly:

The airline has worked cooperatively with the worlds governments in order to determine the

most efficient fight paths and implement them.

Continental has modified its flight planning system in order to come up with one that yields the

most efficient fuel consumption. The company also modifies this system every time new

technology becomes integrated into their fleet.

The company, where possible, employs alternative, energy-saving methods in providing air

conditioning and power to aircraft that are parked at gates.

Continental minimizes engine usage by: a.) employing ground vehicles in moving aircraft from

gate- to-gate and b.) using only one engine when ground taxiing.

The company trains personnel in fuel efficient procedures.

In landing sequences, Continental has reduced the use o f fuel-powered thrust reversers.

Continental Airlines has shifted to electronically-powered ground equipment in Houston, cutting

their nitrogen oxide emissions by 75%.

They use certified Low Emission Vehicles.

Continental is committed to building LEED certified facilities that also conform to US EPA

EnergyStar standards.


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LIMITATIONS OF THE PROJ ECT

While proceeding through the survey we came across numerous problems:

1. DEMOGRAPHIC CONSTRAINTS - will be a main issue of concern. This is due to the reason

that the data collection will be restricted to the Kolkata

2. DATA RELIABILITY - As the data will be collected from various sources the accuracy of the

data collected would be an area of concern. It would be an uphill task to validate the data

consistency of the collection of that data.

3. UNAWARENESSPeople are unaware of Green marketing. So its a very challenging task for

me.

4. LIMITED RESOURCES- Even though the concept has been coined by several renowned

authors, the procedures and framework has not clearly been defined. Leading to inadequate

knowledge on our part while weak implementation on firms part as well.

5. The management and employees of the branch offices we visited d idnt give their full

cooperation even after persistent request.

6. Green Washing is not just an idea in books but a well practiced concept. It is deceptively used to

promote the perception that an organizat ion's a ims and po licies are environmentally friendly. It

has been boldly included in their primary objectives to lure the stakeho lders but actual result is

far from success.


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Conclusion

Green market ing do not strengthen co mpanys image in the mind of respondents that is very much

clear from trustworthiness of green claims and certainly it do not have posit ive image of the

organization in the minds of the respondents. It was observed that the respondents who were more

proactive with the environmental behavior have posit ive attitude towards green advertisements. It

means green advertisements 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 behavior. This is the crucial

aspect that needs to be changed so that they can have positive impact on all the target market which

will have an effect on their buying behavior. The result of the study indicate that the advertisements

not reflected the companies level of greenness and the proposition that green advertising reflects

environmentally sound strategic and structural level dec isions.

Green market ing covers more than a firm's marketing claims. While firms must bear much o f the

responsibility for environmental degradation, the responsibility should not be theirs alone. Ult imately

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 governmenta l

intervention. Until this occurs it will be difficult for firms alone to lead the green market ing revo lut ion.

Having said this, it must not be forgotten that the industrial buyer also has the ability to pressure

suppliers to modify their act ivit ies. Thus an environmental committed organizat ion may not only

produce goods that have reduced their detrimental impact on theenvironment, they may also be able to


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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. 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. 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.


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Recommendations

Finite resources such as oil, metal, and even fresh water will become scarcer and more expensive. If

businesses do not become more efficient in using these resources it will have a huge impact on the

bottom line. Investing in Green Products thus changes from beyond doing good to ultimately good

business sense. Thus they should:

o Invest in research and create clean and environment friendly products.

o Clean energy sources such as solar, wind, bio-fuels and hydral power.

o Water harvesting.

o Recycle at every level.

o Move towards paper less office.

o Educate masses of the environment issues because they are going to be the bulkconsumers.

o Socially responsible investing in environment driven projects.

o Plant more trees.

The corporations must rethink:

o Their raw material and procurement strategies.

o They should develop new products

o

They should redesign existing products and service.

o They should realize that pollution prevention can be a cost saving act ivity.

They should steer their product and packaging designs to use less material.


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QUESTIONNAIRE

GREEN MARKETING & ITS IMPACT ON CONSUMERS

NAME..ADDRESS

1. Are you aware of the term green marketing?a. Yes b. No

2. Have you heard of any campa ign related to Green Marketing?

a. Yes b. No

3. Have you been part of any such campaign?

a.

Yes b. No4. Do you consider the environmental aspects of the products before buying them?

a. Yes b. No c. Sometimes


a. Yes b. No


a. Yes b. No

7. Do you think Green Marketing activities results in better products?

a. Yes b. No


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8. Do you think that Green Marketing strengthen companys image in the mind of consumers?a. Yes b. No


products?a. Yes b. No

10. Do you think that by implementing green marketing strategy the companies are able to gain

competitive advantage over others?

a. Strongly agree b. agree c. disagree d. strongly disagree

11. Do you think sometimes companies are trying to cheat customers in the name of green products?

a. Yes b. No

BIBLIOGRAPHY

Books Referred

Green Recovery, Andrew Winston

Greener Products: The Making and Marketing of Sustainable Brands, Al Iannuzzi

Philip Kotler & G. Armstrong. Principles of marketing. New Delhi, Prentice Hall. Richa Agrawal, Green Marketing: An Emerging Trend (PMR, Vol.5,April 2000) Harris, E. & Strout, E. (2001). Keeping customers happy. Sales and Marketing Management,

April, 153(4), 69. S.A.M. Advanced Management Journal, 63(1), 27-35.Holdway, A. (2001). Delighting

customers: understanding needs starts with employees .

Websites References

www.wikipedia.com www.greenmarketing.net

www.greenchipstocks.com

www.cokecce.com

www.propel-earth-init iat ives.com

www.marutisuzuki.com
http://www.wikipedia.com/http://www.greenmarketing.net/http://www.greenchipstocks.com/http://www.cokecce.com/http://www.propel-earth-initiatives.com/http://www.marutisuzuki.com/http://www.marutisuzuki.com/http://www.propel-earth-initiatives.com/http://www.cokecce.com/http://www.greenchipstocks.com/http://www.greenmarketing.net/http://www.wikipedia.com/


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ANNEXURE

Questionnaire forGreen Marketing

Name: SWATI SIPANI

Age: 24

Educational Institute: Pass out from M.S. Ramaiah College, Bangalore

1. What comes to you r mind when you hear the wordGreen? Trees

2. Have you heard of any campaign related to Green Marketing? Yes No: Yes

3. Have you been part of any such campaign? Yes No: No

4. Do you consider the environmental asp ects of the products before buying them? Yes No: Yes,

but not always

5. Do you think that Green Marketing and advertising are good sources of information about green

products and services? Yes No: Yes, mostly

6. Do you think that Green Marketing activi ties are good at addressing environmental issues? Yes

No: Yes, it does help in a big way.

7. Do you think Green Marketing activities results in better products? Yes No: Yes

8. Do you think that Green Marketing strengthen companys image in the mind of consu mers? Yes

No: Yes, but mostly consumers are unaware.


products? Yes No: Yes

10. Are you aware of the eco-labeling initiatives of the government? Yes No:Yes, I have heard of it.


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ANNEXURE

Questionnaire for Green Marketing

Name: PRITI KHETAN

Age: 23

Educational Institute: Pass out from

Bhawanipore Gujarati Education Society

1. What comes to you r mind when you hear the wordGreen? Colour

2. Have you heard of any campaign related to Green Marketing? Yes No: No


4. Do you consider the environmental aspects of the products before buying them? Yes No: No


products and services? Yes No: Yes


No: Yes

7. Do you think Green Marketing activities results in better products? Yes No: Idon tknow


No: Yes


products? Yes No: Yes

10. Are you aware of the eco-labeling initiatives of the gove rnment? Yes No: No


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ANNEXUREQuestionnaire for Green Marketing

Name: KESHAV JHUNJHUNWALA

Age: 20

Educational Institut e: St. Xaviers College

1. What comes to your mind when you hear the wordGreen? Pollution free



4. Do you consider the environmental aspects of the products before buying them? Yes No: Yes


products and services? Yes No: Yes, not the only but it is good.


No: Yes

7. Do you think Green Marketing activities results in better products? Yes No: Yes, mostly they

are better, for our environment atleast.


No: Yes, if the consumer is an aware one though.


products? Yes No: Not necessarily

10. Are you aware of the eco-labeling initiatives of the gove rnment? Yes No: Yes


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ANNEXURE

Questionnaire forGreen Marketing

Name: SHWETA GOLCHHA

Age: 20

Educational Institute: Seth Anandaram Jaipuria College

1. What comes to your mind when you hear the wordGreen? Trees



4. Do you consider the environmental aspects of the products before buying them? Yes No:

Sometimes


products and services? Yes No: Yes, advertising is good source.


No: Yes

7. Do you think Green Marketing activities results in better products? Yes No: Maybe


No: Yes


products? Yes No: No

10. Are you aware of the eco-labeling initiatives of the gove rnment? Yes No: Yes


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sxc final project sem 6

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