A

PROJECT REPORT
ON

Green marketing
Submitted in partial fulfillment for the
Award of degree of

Master of Business Administration

Submitted By: - Submitted To:-

Miss Swati Jain Nihar Sharma
Mba IIsem

2008-10

Poornima School of Management

ISI-2 RIICO Institutional Area, Sitapura, Jaipur

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 ACKNOWLEDGEMENT

An Endeavour to transform itself into success needs efforts. However, time and
again this productivity requires encouragement and guidance. I am thankful that I
have been given opportunity to offer my gratitude to all the people who directly or
indirectly help me in the successful completion of the report.

First of all, I express my sincere thanks to my project guide, Ms. Swati Jain
(Faculty, Poornima Group of Colleges) for guiding me right form the inception
till the successful completion of the project. I sincerely acknowledge her for
extending their valuable guidance, support for literature, critical reviews of project
& the report, and above all, the moral support she had provided to me with all
stages of this project.

I would also like to thank Mr. R. K. Agarwal (Advisor, Poornima Group of

Colleges) and all other faculty members of the college who extended their
support & assistance throughout the project.

Nihar Sharma

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 TABLE OF CONTENTS

1. Abstract 4

2. Executive Summery 5

3. Research Methodology 7

4. Core Study 10

4.1 Introduction 10

4.2 What is Green Marketing? 12

4.3 History & Need of Green Marketing. 13

4.4 Benefits & Adoption of Green Marketing. 14

4.5 Examples of Green Products 15

4.6 Opportunities and Competitive advantages 20

4.7 Corporate Social Responsibility 22

4.8 Pressure on organization 23

4.9 Cost or Profit issue 25

4.10 Green marketing mix 26

4.11 Green Purchasing 26

4.12 4 P’s of Green Marketing 28

4.13 Strengths and Problems of Green Marketing 31

4.14 Challenges of Green Marketing 36

4.15 Some cases 36

5. SWOT Analysis 37

6. Conclusion 39

7. Bibliography 40

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 ABSTRACT

Green Marketing is the marketing of products that are presumed to be

environmentally safe. Green marketing incorporates a broad range of activities,
including product modification, changes to the production process, packaging
changes, as well as modifying advertising. The purpose of study of green
marketing is to explain how important it is. It is an important tool to get
competitive advantage and increase efficiency. Methodology which is used for
study descriptive type of research method. The conclusion can be derived is that
Green Marketing is a very important and popular part in today’s world. Green
marketing should not neglect the economic aspect of marketing. Marketers need
to understand the implications of green marketing.

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 EXICUTIVE SUMMERY

Green or Environmental Marketing consists of all activities designed to generate

and facilitate any exchanges intended to satisfy human needs or wants, such that
the satisfaction of these needs and wants occurs, with minimal detrimental
impact on the natural environment." This definition incorporates much of the
traditional components of the marketing definition that is "All activities designed
to generate and facilitate any exchanges intended to satisfy human needs or
wants. Green marketing is the marketing which is related to safe n economic use
of natural resources.

Society has becomes more concerned with the natural environment, businesses
have begun to modify their behavior in an attempt to address society's "new"
concerns. Some businesses have been quick to accept concepts like
environmental management systems and waste minimization, and have
integrated environmental issues into all organizational activities. One business
area where environmental issues have received a great deal of discussion is
marketing. Companies that develop new and improved products and services
with environmental impacts in mind give themselves access to new markets,
substantially increase profits and enjoy competitive advantages over those
marketing non-environmentally responsible alternatives. Therefore the study of
Green Marketing or a business activity which is related to greenery is very
important.

Research Methodology which is being used is Descriptive research. It is more

rigid than exploratory research and seeks to describe users of a product,
determine the proportion of the population that uses a product, or predict future
demand for a product. There are two basic types of descriptive research:
longitudinal studies and cross-sectional studies. Longitudinal studies are time
series analyses that make repeated measurements of the same individuals, thus
allowing one to monitor behavior such as brand-switching.

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Scope of this study is very broad. 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. While modification of business or production processes
may involve start-up costs, it will save money in the long term. For example the
cost of installing solar energy is an investment in future energy cost savings. So
the study of Green Marketing.

So finally we can conclude that Green Marketing is the future need for the world.
It is now not only important from the prospective of environment but also
important for making an image in the mind of customer. With increasing
government regulation of adopting Green it is a right decision by an organization
to follow Green marketing.

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 RESEARCH METHODOLOGY

Title of the study: - Title of my research is Green Marketing –The demand

of Future. This title is given because green marketing is very important for future
prospective.

Duration of the study: - In May 2009, I have been assigned a project on the
performance appraisal system as a part of our course curriculum.the duratiion of
the research is apprkox 1 month.

Type of research: - It refers to the search for knowledge. It can be defined as

scientific and systematic search for pertinent information on a specific topic. It is
careful investigation or inquiry through search for new facts of any branch of
knowledge.
Research plays an important role in the project work. The results of
the project are completely based upon the research of the facts and figures
collected through the different ways of research.
That is why it is also called a movement from known to unknown.
Research is the original contribution to the existing stock of knowledge. This
section includes the overall research design, the sampling procedure, the data
collection method, the field method, and analysis and procedure.

RESEARCH is a scientific and systematic search for pertinent information on a

specific topic. It is also said to be the pursuit of truth with the help of study,
observation, comparison and experiment. research methodology is a way to
systematically solve the research problem.

Research design: - A research design is a framework or blueprint for conducting

the research project. It details the procedures necessary for obtaining the
required information, and its purpose is to design a study that will test the
hypotheses of interest, determine possible answers to the research questions,

GREEN MARKETING Page No.7

and provide the information needed for decision making. Conducting exploratory
research, precisely defining the variables, and designing appropriate scales to
measure them are also a part of the research design.
Research can classify in one of three categories:
 Exploratory research
 Descriptive research
 Causal research
These classifications are made according to the objective of the research. In
some cases the research will fall into one of these categories, but in other cases
different phases of the same research project will fall into different categories.
 Exploratory research has the goal of formulating problems more precisely,
clarifying concepts, gathering explanations, gaining insight, eliminating
impractical ideas, and forming hypotheses. Exploratory research can be
performed using a literature search, surveying certain people about their
experiences, focus groups, and case studies. Exploratory research studies
would not try to acquire a representative matter, but rather, seek to
interview those who are knowledgeable and who might be able to provide
insight concerning the relationship among variables. Case studies can
include contrasting situations or benchmarking against an organization
known for its excellence. Exploratory research may develop hypotheses,
but it does not seek to test them. Exploratory research is characterized by
its flexibility.
 Descriptive research is more rigid than exploratory research and seeks to
describe users of a product, determine the proportion of the population
that uses a product, or predict future demand for a product. As opposed to
exploratory research, descriptive research should define questions, people
surveyed, and the method of analysis prior to beginning data collection. In
other words, the who, what, where, when, why, and how aspects of the
research should be defined. Such preparation allows one the opportunity
to make any required changes before the costly process of data collection
has begun.

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There are two basic types of descriptive research: longitudinal studies and cross-
sectional studies. Longitudinal studies are time series analyses that make
repeated measurements of the same individuals, thus allowing one to monitor
behavior such as brand-switching. However, longitudinal studies are not
necessarily representative since many people may refuse to participate because
of the commitment required. Cross-sectional studies sample the population to
make measurements at a specific point in time. A special type of cross-sectional
analysis is a cohort analysis, which tracks an aggregate of individuals who
experience the same event within the same time interval over time. Cohort
analyses are useful for long-term forecasting of product demand.
 Causal research seeks to find cause and effect relationships between
variables. It accomplishes this goal through laboratory and field
experiments.

Here I use descriptive type of research design.

CORE STUDY

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 INTRODUCTION

'I'll go out for a breath of fresh air' is an often-heard phrase. But how many of
us realize that this has become irrelevant in today's world, because the quality of
air in our cities is anything but fresh.

The moment you step out of the house and are on the road you can actually see
the air getting polluted; a cloud of smoke from the exhaust of a bus, car, or a
scooter; smoke billowing from a factory chimney, fly ash generated by thermal
power plants, and speeding cars causing dust to rise from the roads. Natural
phenomena such as the eruption of a volcano and even someone smoking a
cigarette can also cause air pollution.

Air pollution is aggravated because of four developments: increasing traffic,

growing cities, rapid economic development, and industrialization. The Industrial
Revolution in Europe in the 19th century saw the beginning of air pollution as we
know it today, which has gradually become a global problem. Air pollution is
nothing new. Ever since the discovery of fire, less-than-desirable substances
have been vented into the air. Every Govt. is trying to minimize this problem. But
regardless of the efforts, air pollution continues to be a serious local and world-
wide problem.

Although environmental issues influence all human activities, few academic

disciplines have integrated green issues into their literature. This is especially
true of marketing. As society becomes more concerned with the natural
environment, businesses have begun to modify their behavior in an attempt to
address society's "new" concerns. Some businesses have been quick to accept
concepts like environmental management systems and waste minimization, and
have integrated environmental issues into all organizational activities.

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 One business area where environmental issues
have received a great deal of discussion in the
popular and Professional press is marketing.
Terms like "Green Marketing" and
"Environmental marketing" appear frequently
in the popular press. Many governments around the world have become so
concerned about green marketing activities that they have attempted to regulate
them .For example, in the United States (US) the Federal Trade Commission and
the National Association of Attorneys-General have developed extensive
documents examining green marketing issues.

Independent research commissioned by Green Portfolio reveals that 50% of

marketing and PR management believe that an organization’s green credentials
are important to customers and 84% predict this importance is likely to grow
further over the next two years as the impact of environmental issues continues
to bite.

The marketing and communications profession sees clear competitive advantage

in being green but the survey also shows that organizations can’t ‘green wash’
their credentials. A surface veneer isn’t enough when it comes to the environment
companies have to be doing it. The need to get going is very real and businesses
mustn’t get left behind when it comes to environmental marketing.

WHAT IS GREEN MARKETING………….?

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According to 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.”

Yet defining green marketing is not a simple task. 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"

Thus “Green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as
modifying advertising.” Yet defining green marketing is not a simple task. Indeed
the terminology used in this area has varied, it includes: Green Marketing,
Environmental Marketing and Ecological Marketing.

So the definition which encompasses all major components of other definitions

is: - "Green or Environmental Marketing consists of all activities designed to
generate and facilitate any exchanges intended to satisfy human needs or wants,
such that the satisfaction of these needs and wants occurs, with minimal
detrimental impact on the natural environment." This definition incorporates much
of the traditional components of the marketing definition that is "All activities
designed to generate and facilitate any exchanges intended to satisfy human
needs or wants"

HISTORY & EVOLUTION OF GREEN MARKETING

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 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.

NEED OF GREEN MARKETING?

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 behavior. As a result of this, green
marketing has emerged which speaks for growing market for sustainable and
socially responsible products and services.

BENIFITS OF GREEN MARKETING

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Green marketing offers business bottom line incentives and top line growth
possibilities.

While modification of business or production processes may involve start-up

costs, it will save money in the long term. For example the cost of installing solar
energy is an investment in future energy cost savings.

Companies that develop new and improved products and services with
environmental impacts in mind give themselves access to new markets,
substantially increase profits and enjoy competitive advantages over those
marketing non-environmentally responsible alternatives.

ADOPTATION OF GREEN MARKETING

There are basically five reasons for which a marketer should go for the adoption
of green marketing. They are as follows -

 Opportunities or competitive advantage-With the help of green

marketing a company can create competitive advantage and can enjoy
future growth opportunities. By working for greenery a company can
create an ideal image in public and this will surely help the organization.
 Corporate social responsibilities (CSR)-CSR is very important for
every organization. In today’s world of globalization every company
should follow CSR and with the help of green marketing company can
play this role very well. Green marketing is necessary for environment
and for society green environment is important.

 Government pressure-According to today’s Business Laws a company

should work within a certain limits of pollution and Government is also
imposing rules to adopt green marketing. So the companies have no
option except to GO GREEN.

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  Competitive pressure-In today’s cut throat competition a company
should be competent enough to survive and green marketing can provide
a competitive advantage.

 Cost or profit issues-With the help of green marketing a company can

not only achieve competitive advantage but also control its cost and can
increase its profit.

EXAMPLES OF GREEN PRODUCTS

Retail: Whole Foods

Grocery Chain Encourages Patrons to Shell Out for Sustainable Eating

Whole Foods, with its commitment to organic products and sustainability, is no

simple supermarket where shoppers fill their carts and run.

Automotive: Honda
Carmaker Has Head Start in Green Field With Upcoming Emission-Free
Sedan

Unlike many automakers dabbling in greener product, Honda is already moving

on to phase two, with cars such as its FCX Clarity hydrogen-fuel-cell, emission-
free sedan.

Travel/Tourism: Fairmont
Pioneering Hotel Company Encourages Locations to Compete for
Environmental Innovation

Finding value in leftover food and recycling hotel wastewater are some of the
dozens of conservation and environmentally sustainable practices embedded in
the Fairmont business model

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Financial Services: Portfolio 21
To Investment Company, Environmental Risks Just as Bad as Economic
Risks

Portfolio 21 Investments is one of the leaders in a field that includes more than
170 U.S. mutual funds that base investments on companies demonstrating
environmental responsibility.

Package Goods: Green Mountain Coffee

Java Purveyor Is Greenhouse-Gas-Neutral, but Don't Call It 'Green
Marketing'

Some of the best green marketers, it turns out, don't believe in the concept at all.
Green Mountain has been 100% greenhouse-gas-neutral since 2004 and claims
it's the industry's largest purveyor of fair-trade coffee.

Tech: Hewlett-Packard
Eco-Friendly PC Maker Builds on Successes and Expands Recycling Goal

Green-technology leader Hewlett-Packard Co. beat its deadline to recycle 1

billion pounds of electronics by six months in July, so it ramped up its own
challenge by immediately setting a new goal to reach 2 billion pounds in just
three more years, by 2010.

Transportation: Enterprise
Car Rental Company Plants Trees, Encourages Customers to Offset Their
Own Carbon Emissions

Enterprise's first green step was a whopper: a 2006 promise to spend $1 million
a year to plant a million trees annually for the next 50 years in tandem with the
U.S. Forest Service and the Arbor Day Foundation.

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 Start Composting! Capture Rainwater! Plant a Garden!

COMPOSTING: - Composting is the microbial decomposition of organic and

dead materials into compost. Composting allows organic matter such as
vegetable food waste and paper products to decompose and become nutrient-
rich soil. This soil is perfect for growing plants in any environment. Composting
can be done by just putting the compost bin somewhere in your backyard, and
dump all the organic matter into it. After a couple months, warm, rich, great
smelling compost comes out the bottom. We really don't have to do that much
work. Whether you live on a big farm or in a tiny city apartment, there's an easy
way to compost. We can also buy a recycled plastic composter, stick it in
backyard, and start throwing food scraps into it. This will automatically create
great soil without any turning.

Benefits to composting: -

 Reduces 1/3 of the trash that would traditionally go to landfills

 Saves money and resources (no need to buy fertilizer)
 Enriches soil naturally and organically
 It's fun and educational (your family will love to watch the process happen)
 Helps reduce greenhouse gas
 Enabling things to return their natural cycles just feels great!
 Save $$ on your garbage bill
 Provides a soil amendment for your veggie garden
 Supports community, keeps them green, keeps things local

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 RAINWATER HARVESTING: -

Rainwater harvesting is an easy and highly effective way to capitalize on the

extreme shifts in weather patterns we are experiencing and help alleviate the
demand for water. The idea of just keeping the water that already falls on our
houses is an obvious solution to water scarcity problems.

Installing a rainwater harvesting system is one way to reduce outdoor water use
by collecting water during the rainy season that can be used during droughts. By
capturing water on a 1500 square foot roof, a family could reduce their water bill
by 50% and save 43,000 gallons of water yearly.

Benefits to harvesting rainwater: -

 Keeps relatively clean water out of the sewer for future use
 Keeps chemicals out of our water by diverting water from treatment plants
 Reduces the demand and energy of transporting water from far away
places
 Reduces the amount of water flowing into storm systems during peak flow
times and thereby helps to eliminate flooding
 Reduces the use of potable water used for non-potable applications
including gardening and toilet flushing
 Saves money on water bill.\

The process of harvesting water is very simple.The unused rainwater that falls
upon our roofs can be gathered and used for a whole host of applications, ones
that require both potable and non-potable water. Most people use rainwater to
water their yards or gardens but it can also be hooked up to your home plumbing
to be used for toilet flushing, or purified, filtered or distilled for human
consumption.

Gathering rainwater is easy to do with only a few simple changes to your regular
gutter system. In the majority of systems sold by Green Home, water is filtered
while collected to remove debris, and is then stored in the rain barrels. Rainwater
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No.18
catchment systems are coming back in vogue all across the world - partly
because a new generation of tools and techniques make the systems very easy
to install and maintain! All the systems sold by Green Home come with easy-to-
use and complete instructions, telephone support and a money-back guarantee.

With the help of rain barrel water can be saved easily. Rain barrels come in a
variety of shapes and sizes. Many are made of recyclable plastic and are easy to
keep clean. Some have attractive designs and look great leaning against house.

PLANT A GARDEN: -

Green Home provides many resources for environmentally

friendly yard and garden products that will help you create an
energy-efficient, pollutant and chemical-free garden for home.

Benefits of heaving a garden: -

Even the smallest space can be transformed into an outdoor welcoming oasis
and provide multiple benefits to our environment including:

 Providing space for children and adults to enjoy the outdoors

 Creating ground shade for cooling the local surroundings
 Helping control dust and filter pollutants in the air (and adding oxygen)
 Muting and refracting light to reduce energy usage (especially on city
rooftops)
 Welcoming microorganisms which actively breakdown various pollutants,
i.e. air contaminants, pollen, pesticides
 Reducing pollution caused by surface runoff (cycling rainwater)

In a nutshell, Gardens enable us to grow our own food, conserve energy, control
rainfall runoff and flooding, lower noise levels, harbor wildlife, and provide a
refreshing source of oxygen. A home grown garden rewards your family with a
cheap, healthy, organic, super local food source all season long.

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 OPPORTUNITIES OR COMPETITIVE ADVANTAGE

In a 1992 study of 16 countries, more than 50% of consumers in each country,

other than Singapore, indicated they were concerned about the environment .A
1994 study in Australia found that 84.6% of the sample believed all individuals
had a responsibility to care for the environment. A further 80% of this sample
indicated that they had modified their behavior, including their purchasing
behavior, due to environmental reasons .As demands change, many firms see
these changes as an opportunity to be exploited.

Given these figures, it can be assumed that firms marketing goods with
environmental characteristics will have a competitive advantage over firms
marketing non-environmentally responsible alternatives. There are numerous
examples of firms who have strived to become more environmentally
responsible, in an attempt to better satisfy their consumer needs.

* McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone
depletion.

* Tuna manufacturers modified their fishing techniques because of the

increased concern over driftnet fishing, and the resulting death of dolphins.

* Xerox introduced a "high quality" recycled photocopier paper in an attempt to

satisfy the demands of firms for less environmentally harmful products.

* Toyota Prius

For lots of good reasons, it's likely the most successful "green" product in the US.

It provides consumers with all they seek in a sedan and more—attractive styling,
fuel efficiency, the ability to drive for an unlimited amount of miles only stopping
for fill-ups (versus, for instance, having to stop for a 12-hour recharge if the
engine were only electric), and because of the hybrid engine, a quiet ride, since
the car doesn't idle at stoplights.

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The car's dashboard comes with an unusual feature: a screen that lets the driver
know which of the two engines is in use and how efficiently fuel is being used at
any given moment; according to anecdotes, Prius owners try to beat their
previous record each time they drive!

When the car was introduced, ads focused on superior performance evidenced
by a quiet ride, and supplemental ads touted its environmental bona fides. With
energy prices on the rise, the Prius is now being marketed for its superior fuel
efficiency, and a PR machine fuels efforts to link the car to environmentally
conscious celebrities and causes. Some owners, it is reported, even buy the car
for what is being called "Conspicuous Conservation"—letting all know that they
are environmentally astute.

This is not to imply that all firms who have undertaken environmental marketing
activities actually improve their behavior. In some cases firms have misled
consumers in an attempt to gain market share. In other cases firms have jumped
on the green bandwagon without considering the accuracy of their behavior, their
claims, or the effectiveness of their products. This lack of consideration of the
true "greenness" of activities may result in firms making false or misleading green
marketing claims.

SOCIAL RESPONSIBILITY

Many firms are beginning to realize that they are members of the wider
community and therefore must behave in an environmentally responsible fashion.
This translates into firms that believe they must achieve environmental objectives
as well as profit related objectives. This results in environmental issues being
integrated into the firm's corporate culture. There are examples of firms adopting
both strategies. Organizations like the Body Shop heavily promote the fact that
they are environmentally responsible. While this behavior is a competitive
advantage, the firm was established specifically to offer consumers
environmentally responsible alternatives to conventional cosmetic products. This
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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 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 neighbor”. 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.

GOVERNMENTAL 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, 1) reduce production of harmful goods or by-
products; 2) modify consumer and industry's use and/or consumption of harmful
goods; or 3) ensure that all types of consumers have the ability to evaluate the
environmental composition of goods. Governments establish regulations
designed to control the amount of hazardous wastes produced by firms.

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California's Republican Gov. Arnold Schwarzenegger met with British Labour
Prime Minister Tony Blair to promote the idea of transatlantic carbon emissions
market. He also wants to reduce his state's greenhouse gas emissions to 80%
below 1990 levels by 2050.

In Germany the Greens and the conservatives recently agreed to join forces to
run the city govt. of Frankfurt, the first such coalition in country's history.

Many by-products of production are controlled through the issuing of various

environmental licenses, thus modifying organizational behavior. In some cases
governments try to "induce" final consumers to become more responsible. For
example, some governments have introduced voluntary curb-side recycling
programs, making it easier for consumers to act responsibly. In other cases
governments tax individuals who act in an irresponsible fashion. For example in
Australia there is a higher gas tax associated with leaded petrol.

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. In addition to these guidelines many States in the US have
introduced legislation to control various environmental marketing activities.

Investment analysts are starting to see the environmental awareness of

managers as a barometer of the likely long term success of their companies.

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Green policies, they say, tend to indicate hands on management, high consumer
confidence and good corporate governance.

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 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. 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

COST OR PROFIT ISSUES

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. 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.

* Philips Light's CFL

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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 "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

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.

Green Marketing Mix

Every company has its own favorite marketing mix. Some have 4 P's and some
have 7 P's of marketing mix. The 4 P's of green marketing are that of a
conventional marketing but the challenge before marketers is to use 4 P's in an
innovative manner.

GREEN PURCHASING

The basic mean of green marketing is “BUYING RECYCLED”

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So green purchasing is purchase of products which are recycled or can be
recycled. With the help of these products environment can be saved and we can
save Greenery.

EXAMPLES OF GREEN PURCHASING

1
 Recycled content paper 30% PCW, 100% PCW

 Energy efficient electronics - Energy Star

 Energy efficient lighting

 EPEAT certified computers

 Hybrid vehicles and Smart Cars

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  Biodiesel - B20, B50 and B99

 Recycled/ reblended paint, Green Seal certified

 Landscaping, Salmon Safe certified parks

 Soy based inks at print shop

 Redefined motor oil, recycled antifreeze

 Some on-site electricity generation Wind turbine

 Micro turbines using biogas from sewer treatment

The four P’s of green marketing

Like conventional marketers, green marketers must address the 'four Ps' in
innovative ways.

1. Product.
2. Price.

3. Place.

4. Promotion.

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Product

Entrepreneurs wanting to exploit emerging green markets will either:

 Identify customers' environmental needs and develop products to address

these needs; or
 Develop environmentally responsible products to have less impact than
competitors.

The increasingly wide varieties of products on the market that support

sustainable development and are good for the triple bottom line include:

 Products made from recycled goods, such as Quik'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. Queensland's only waterless printer, Print
point, reduces operating costs by using less water than conventional
printers and is able to pass the savings on to customers.
 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.
 Organic products — many consumers 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 – such as toy libraries.
 Certified products, which meet or exceed environmentally responsible
criteria.

Whatever the product or service, it is vital to ensure that products meet or exceed
the quality expectations of customers and is thoroughly tested.

Price

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Pricing is a 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 are usually an added bonus but will often be the
deciding factor between products of equal value and quality.

Environmentally responsible products, however, are often less expensive when

product life cycle costs are taken into consideration, for example fuel-efficient
vehicles, water-efficient printing and non-hazardous products.

Place

The choice of where and when to make a product available will have significant
impact on the customers you attract.

Very few customers will go out of their way to buy green products merely for the
sake of it. Marketers looking to successfully introduce new green products
should, in most cases, 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 the venue. The location must differentiate you from
your competitors. This can be achieved by in-store promotions and visually
appealing displays or using recycled materials to emphasize the environmental
and other benefits.

Promotion

Promoting products and services to target markets includes paid advertising,

public relations, sales promotions, direct marketing and on-site promotions.

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Smart green marketers will be able to reinforce environmental credibility by using
sustainable marketing and communications 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, for example those
produced by Land care Australia, Clean Up Australia and Planet Ark, under the
banner of the Go Green Environment Fund.

The key to successful green marketing is credibility. Never overstate

environmental claims or establish unrealistic expectations, and communicate
simply and through sources that people trust. Promote your green credentials
and achievements. Publicize stories of the company's and employees' green
initiatives. Enter environmental awards programs to profile environmental
credentials to customers and stakeholders.

Strategies

The marketing strategies for green marketing include: -

 Marketing Audit (including internal and external situation analysis)

 Develop a marketing plan outlining strategies with regard to 4 P's

 Implement marketing strategies

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  Plan results evaluation

Strengths and Problems of Green Marketing

GREEN MARKETING DOES LEAD TO SUCCESS ……

Green marketing is not a theoretical concept only. A lot of firms are using this
concept to consolidate their market positions. A few examples are-

 Tesco is pumping $200mn into environmental technologies to reduce the

amount of energy they use by 50% compared with 2000 levels, by 2010.In
addition to building 80 new ecostores across Britain over the next year –
the greenest of which will be constructed of recycled materials and will
burn food waste for electricity-they are also making small changes that
could have big results. They are paying customers not to use plastic bags
which they expect would cut consumption by 25% in two years.
 Renewable Energy Corp., a Norwegian Solar energy company, had the
world's largest ever renewable energy IPO in May.
 $30 mn is what Goldman Sachs invested in Canadian alternative-fuels
company Logon. It was one of the several green ventures for ex-Goldman
and Nature Conservancy head Henry Paulson, US Treasury secy.
 According to a recent report from the climate group, an international
environmental charity, and 43 multinationals –including Bayer, DuPont –
saved a combined $11.6 bn last year by improving energy efficiency,
reducing waste output and harnessing solar power.

GE's ECOIMAGINATION campaign to cut carbon emissions, partly by selling

low emissions products ranging from power plants to fluorescent light bulbs
have raked in $10.1 bn in 2005 as compared with $6.2 bn in 2004.

 The World's two largest insurance cos. Swiss Re and Munich Re are
now taking cos. policies on climate change into consideration when

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 determining risks. Similarly In Japan about 800 cos. annually publish
reports explaining how they plan to cut carbon emissions and make their
products and factories greener.
 GE signed a deal of $10 bn with British Petroleum to develop hydrogen
power plants that will capture carbon and bury it underground so it doesn't
lead to global warming.
 Goldman Sachs has invested more than $ 1bn in renewable energy
sources, including biofuels
 Markets are also beginning to recognize that cos. that do not do right by
Mother Nature may have more volatile stock prices. Goldman Sachs'
ESG (Environmental, Social and Governance) Index now ranks the world's
largest cos. based on how environmentally friendly their operations are.
 Some of the Venture Capitalists who bankrolled the dot com boom of
1990s now see alternative forms of energy as next big thing. Vinod
khosla, the silicon valley venture capitalist who got big and early with
Google and Amazon, is now betting $50mn of his dot com cash on next
generation ethanol.
 Venture capital investment in renewable energy cos. was up 36 % last
year to a record $739mn.
 The wilder Hill Clean Energy Index which charts 40 alternative energy
firms has risen 485 since its 2004 debut.
 World's largest wind turbine energy firm, India's Suzlon Energy was 28
times oversubscribed when it launched for $340 mn at the end of last year.
 Chinese Solar company Suntech power raised $ 400mn in December.
 Largest venture capital backed IPO in Europe last year was of German
renewable energy company Q-cells, which raised $ 400 mn in October.
 Green marketing of cosmetics and toiletries in Thailand

Use of traditional cosmetics and toiletries manufactured from herbs and plant
extracts has been popular in many Asian countries. However, green
marketing of these products is rather recent. Encouraged by the growing
environmental consciousness on the part of citizens and a growing market for

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 cosmetics and toiletries, several global and local companies have entered
Thailand. An international company, The Body Shop, and a local company,
Oriental Princess, have employed green marketing strategies to build their
customer base in the Thai market. Using case research method and
questionnaire-based surveys, an attempt has been made in this paper to
analyze the green marketing strategies of these companies and their impact
on consumer attitudes and brand loyalty. The research shows that that the
two companies have made honest attempts to adopt green marketing
strategies. However, Thai customers consider non-green attributes more
important in making their purchase decisions. The two case companies have
been able to create favorable attitudes and enjoy a high degree of brand
loyalty.

SOME PROBLEMS WITH GOING GREEN

No matter why a firm uses green marketing there are a number of potential
problems that they must overcome. One of the main problems is that firms using
green marketing must ensure that their activities are not misleading to
consumers or industry, and do not breach any of the regulations or laws dealing
with environmental marketing. For example marketers in the US must ensure
their green marketing claims can meet the following set of criteria, in order to
comply with the FTC's guidelines. Green marketing claims must;

* Clearly state environmental benefits;

* Explain environmental characteristics;
* Explain how benefits are achieved;
* Ensure comparative differences are justified;
* Ensure negative factors are taken into consideration; and
* only use meaningful terms and pictures.

Another problem firm’s face is that those who modify their products due to
increased consumer concern must contend with the fact that consumers'
perceptions are sometimes not correct. Take for example the McDonald's case

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where it has replaced its clam shells with plastic coated paper. There is ongoing
scientific debate which is more environmentally friendly. Some scientific evidence
suggests that when taking a cradle-to-grave approach, polystyrene is less
environmentally harmful. If this is the case McDonald's bowed to consumer
pressure, yet has chosen the more environmentally harmful option.

When firms attempt to become socially responsible, they may face the risk that
the environmentally responsible action of today will be found to be harmful in the
future. Take for example the aerosol industry which has switched from CFCs
(chlorofluorocarbons) to HFCs (hydro fluorocarbons) only to be told HFCs are
also a greenhouse gas. Some firms now use DME (Di methyl ether) as an
aerosol propellant, which may also harm the ozone layer .Given the limited
scientific knowledge at any point in time, it may be impossible for a firm to be
certain they have made the correct environmental decision. This may explain
why some firms, like Coca-Cola and Walt Disney World, are becoming socially
responsible without publicizing the point. They may be protecting themselves
from potential future negative backlash; if it is determined they made the wrong
decision in the past.

While governmental regulation is designed to give consumers the opportunity to

make better decisions or to motivate them to be more environmentally
responsible, there is difficulty in establishing policies that will address all
environmental issues. For example, guidelines developed to control
environmental marketing address only a very narrow set of issues, i.e., the
truthfulness of environmental marketing claims. If governments want to modify
consumer behavior they need to establish a different set of regulations. Thus
governmental attempts to protect the environment may result in a proliferation of
regulations and guidelines, with no one central controlling body.

Reacting to competitive pressures can cause all "followers" to make the same
mistake as the "leader." A costly example of this was the Mobil Corporation who
followed the competition and introduced "biodegradable" plastic garbage bags.
While technically these bags were biodegradable, the conditions under which
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they were disposed did not allow biodegradation to occur. Mobil was sued by
several US states for using misleading advertising claims. Thus blindly following
the competition can have costly ramifications.

The push to reduce costs or increase profits may not force firms to address the
important issue of environmental degradation. End-of-pipe solutions may not
actually reduce the waste but rather shift it around. While this may be beneficial,
it does not necessarily address the larger environmental problem, though it may
minimize its short term affects. Ultimately most waste produced will enter the
waste stream, therefore to be environmentally responsible organizations should
attempt to minimize their waste, rather than find "appropriate" uses for it.

CHALLENGES AHEAD

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.

SOME CASES

 McDonald's restaurant's napkins, bags are made of recycled paper.

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 Coca-Cola pumped syrup directly from tank instead of plastic which saved 68
million pound/year.

 Badarpur Thermal Power station of NTPC in Delhi is devising ways to

utilize coal-ash that has been a major source of air and water pollution.

 Barauni refinery of IOC is taken steps for restricting air and water pollutants.

SWOT ANALYSIS

SWOT Analysis here stands for Strength, Weakness, Oppertunities and Threats.

SWOT of GREEN MARKETING is as follows:-

STRENGTHS:-

1. With the help of Green Marketing, environment or Greenery can be saved

which is very important in today’s polluted area.

2. With the help of Green Marketing, products are being recycled and cost of
products is becoming less.

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3. The companies which are doing Green marketing can get competitive
advantages.

4. By recycling process many important and scare minerals as well as other

natural recourses can be prevented.

WEAKNESS:-

1. Initial cost of setting up a plant by which products can be recycling is very high.

2. This is relatively a new process and people are having negative perception
towards it.

3. The recycled product quality is not up to the level of new products.

OPPORTUNITY:-

1. With the slogan of “GOING GREEN”, environment can be saved which is very
important for future.

2. Adaptation of GREEN MARKETING can have high initial cost but for future
prospective. It is a deal with high profits.

3. Growing problem of solid waste which can not be destroyed can be

maintained.

THREATS:-

1. Some companies can find wrong benefits out of it.

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2. Quality would be on decrease continuously in recycling process.

3. Some recycled products can be harmful in future.

CONCLUTION

“GREEN MARKETING” as the word shows a marketing which is having the

objective to make the world green.

Green marketing should not neglect the economic aspect of marketing.

Marketers need to understand the implications of green marketing.

If you think customers are not concerned about environmental issues or will not
pay a premium for products that are more eco-responsible, think again. You must
find an opportunity to enhance you product's performance and strengthen your
customer's loyalty, and command a higher price.

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Green marketing is still in its infancy and a lot of research is to be done on green
marketing to fully explore its potential

Let it be the process of recycling products or a government regulation or a source

to make competitive advantage, whatever the reason to follow Green Marketing
but the result or conclusion is that it is really an important part of today’s world
and no one can ignore it.

Bibliography

 www.greenmarketing.net/stratergic.html
 www.epa.qld.gov.au/sustainable_ industries

 www.wmin.ac.uk/marketingresearch/marketing/greenmix.html

 www.indianmba.com/knowledgezone.

 www.coolavenues.com/knowledgezone/marketing/greenmarketing:oppur
tunities and challenges.

 [email protected]

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 BOOKS: -
1. Marketing Management vol.7 2008.
2. Marketing Management February addition 2009.

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