CONTENT

1. Chapter-1
1.1 EXECUTIVE SUMMARY

1.2 INTRODUCTION TO GREEN MARKETING

⮚ Meanings & concepts
⮚ Importance of green marketing
⮚ Goals of Green marketing
⮚ Benefits of Green Marketing
⮚ Golden Rules of Green Marketing

2. Chapter-2
2.1 CHALLENGES IN GREEN MARKETING

2.2 GREEN MARKETING – Reasons for adoption by the firms

2.3 GREEN MARKETING MIX

3. Chapter-3
3.1 MOVING TOWARDS GREEN MARKETING
3.2SHIFTING TO A GREEN ERA
3.3 GREEN WASHING
3.4 GREEN STRATEGY FORMULATION

4. Chapter-4
4.1 GREEN MARKETING: A CORPORATE INITIATIVE

5. Chapter- 5

5.1UNDERSTANDING CONSUMER PERCEPTION AND

PRIORITIES TO MAXIMIZE BUSINESS

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 5.2 GREEN CONSUMER BEHAVIOUR

6. Chapter- 6
6.1 RESEARCH OBJECTIVES

6.2 RESEARCH METHODOLOGY

6.3 DATA ANALYSIS & INTERPRETATION

6.4 RESEARCH FINDINGS

7. Chapter-7
7.1 LIMITATION OF THE PROJECT

7.2 RECOMMENDATION

8. CONCLUSION
9. Chapter- 9
9.1 APPENDIX

⮚ Questionnaire
⮚ Bibliography

1
 EXECUTIVE SUMMARY

Pantaloons is the largest Indian retailer having an established presence in all

the retail verticals and operating multiple retail formats,viz. Pantaloon,
Central, Big Bazaar and Food Bazaar,
Globally, organized retail contributes about 80% of the overall retail
sector. Unlike the developed nations, the organized retail
penetration is low in developing countries. with Indian penetration estimated
at a modest 6%-8% as of 2007.
Key factors such as strong economic growth, favorable demographics,
increasing number of dual income families, changing lifestyle,
rising aspirations of young consumers and increase in discretionary income
expected to drive growth in the Indian organized retail
market. We expect the organized retail sector to grow rapidly and reach a
15% penetration level by 2013.
Pantaloon has successfully tapped the opportunities within the retail
space, especially in the value formats. The Company has been able to
leverage on its multi-formats-multi-brand stores, secure prime locations at
the best possible prices and command a strong bargaining power with
suppliers, which provide it an edge over its competitors.
Pantaloons’ ability to understand the Indian consumer psyche, its
experience in managing growth, massive expansion plans, excellent
execution capabilities, sound financial performance and huge growth
opportunities (offered by the organized retail boom in India) augur well for
the Company’s overall future prospects.

2
 Notwithstanding the inflationary trends in the economy, the
management has indicated that it is confident that they will be able to
control increases in average rentals. Management confirmed in multiple
discussions with RRG analysts that they are confident of their growth\
prospects, though the current real estate environment has resulted in minor
delays in properties coming on-stream.
The stock trades at less than 8x 2010 EV/EBITDA. We maintain our
positive outlook on the stock and recommend a BUY with a target
price of Rs 561, an upside of 65% from current levels.

INVESTMENT HIGHLIGHTS

● The global retail sector posted a CAGR of 5% for the last five years
(2003-2007) to reach a value of USD9.1 tn in 2007. Food, apparel
and technology retailing dominate the sector, accounting for about
59.9% of the Soverall market size.
● The organized retail sector is largely dominated by developed
countries such as the US, Japan and the European nations, where it
contributes over 80% of the total retail revenue. Developing countries
such as China, India and Brazil are coming up the ladder experiencing
a rapid growth in organized retail. However, the level of penetration
varies from 5% to 30%, against 75-85% in developed countries.

● In China, the share of organized retail rose to 20% in 2006 from less
than 5% in 1990, growing at a CAGR of 24.2% to USD196.6 bn.

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 ● Traditionally dominated by ‘mom and pop stores’ the Indian retail
sector valued at USD309.7 bn, contributed about 34.2% of India’s
GDP in 2007.

● In India, organized retail has very low level of penetration, estimated

at only 6-8%. However, the country is catching up, with the sector
witnessing a high growth similar to the one observed in the telecom
sector over the last 10 year

(1.1) EXECUTIVE SUMMARY

In today's business world environmental issues plays an important role in

marketing. All most all the governments around the world have concerned
about green marketing activities that they have attempted to regulate them.
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. In my research there has been little
attempt to academically examine environmental or green marketing. It
introduces the terms and concepts of green marketing, briefly discuss why
going green is important and also examine some of the reason that
organizations are adopting a green marketing philosophy. It also focuses
some of the problems with green marketing.

Besides this, this report also stresses upon the effect of green marketing on
the consumers. The data has been collected from the respondents through
surveys and a detailed questionnaire was designed for that purpose. The
interviews have been conducted from the respondents at different locations

4
in Kolkata. The sample size includes 50 respondents. The data gathered has
been analyzed on a question-by-question basis. The details of the research
findings are mentioned after the analysis, and recommendations are given
based on the research findings.
Finally I can say Green marketing isn't just a catchphrase; it's a marketing
strategy that can help a company to get more customers and make more
money. But only if you do it right.

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 INTRODUCTION
The term Green Marketing came into prominence in the late 1980s and early 1990s. The
American Marketing Association (AMA) held the first workshop on "Ecological
Marketing" in 1975. The proceedings of this workshop resulted in one of the first books
on green marketing entitled "Ecological Marketing".

The first wave of Green Marketing occurred in the 1980s. Corporate Social
Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the
financial report was supplemented by a greater view on the company's environmental
impact. In 1987 a document prepared by the World Commission on Environment and
Development defined sustainable development as meeting “the needs of the present
without compromising the ability of future generations to meet their own need”, this
became known as the Brundtland Report and was another step towards widespread
thinking on sustainability in everyday activity. Two tangible milestones for wave 1 of
green marketing came in the form of published books, both of which were called Green
Marketing. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn
Ottman (1993) in the United States of America.

In the years after 2000 a second wave of Green marketing emerged. By now CSR and the
Triple Bottom Line (TBL) were widespread. Such publications as a 2005 United Nations
Report, then in 2006 a book by Al Gore and the UK Stern Report brought scientific-
environmental arguments to a wide public in an easy to understand way. This knowledge
assessed the implications of moving to a low-carbon global economy and the potential of
different approaches. This new wave of Green Marketing differed from the first wave in
many respects. It is curious to note that Green Marketing Wave 1 followed an economic
recession, whereas Green Marketing Wave 2 came before the global recessions that come
to be known as the “Credit Crunch”. This difference may be significant in that it may
suggest that Green Marketing is here to stay. The green marketing concept dictates,
amongst other things, less use, recycling and avoiding waste, just some of the ways
society reacts at times of recession. (see Bradley 2003 for 6 green marketing strategies).

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According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for
Innovation) from an organizational standpoint, environmental considerations should be
integrated into all aspects of marketing — new product development and
communications and all points in between. The holistic nature of green also suggests that
besides suppliers and retailers new stakeholders be enlisted, including educators,
members of the community, regulators, and NGOs. Environmental issues should be
balanced with primary customer needs

The past decade has shown that harnessing consumer power to effect positive
environmental change is far easier said than done. The so-called "green consumer"
movements in the U.S. and other countries have struggled to reach critical mass and to
remain in the forefront of shoppers' minds. While public opinion polls taken since the late
1980s have shown consistently that a significant percentage of consumers in the U.S. and
elsewhere profess a strong willingness to favor environmentally conscious products and
companies, consumers' efforts to do so in real life have remained sketchy at best. One of
green marketing's challenges is the lack of standards or public consensus about what
constitutes "green," according to Joel Makower, a writer on green marketing. In essence,
there is no definition of "how good is good enough" when it comes to a product or
company making green marketing claims. This lack of consensus -- by consumers,
marketers, activists, regulators, and influential people -- has slowed the growth of green
products, says Makower, because companies are often reluctant to promote their green
attributes, and consumers are often skeptical about claims.

Despite these challenges, green marketing has continued to gain adherents, particularly
in light of growing global concern about climate change. This concern has led more
companies to advertise their commitment to reduce their climate impacts, and the effect
this is having on their products and services

7
 A GREEN MARKET IN NEWCASTLE

A GREEN MARKET IN NEWYORK

8
 Meanings & Concepts:
According to the American Marketing Association, green marketing is the
marketing of products that are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities, including
➢Product modification,
➢Changes to the production process,
➢Packaging changes, as well as Modifying advertising.

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" Thus green marketing incorporates a broad range of activities,
including product modification, changes to the production process,
packaging changes, as well as modifying advertising.
My 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

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that is "All activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants".
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 on
consumers has washed away by the present recession (2008-09) only.
Green marketers though argue that it is a way to use the environmental
benefits of a product or service to promote sales. Many consumers will
choose products that do not damage the environment over less
environmentally friendly products, even if they cost more. With green
marketing, advertisers focus on environmental benefits to sell products such
as biodegradable diapers, energy-efficient light bulbs, and environmentally
safe detergents.
People buy billions of dollars worth of goods and services every year—
many of which harm the environment in the way they are harvested, made,
or used. Environmentalists support green marketing to encourage people to
use environmentally preferable alternatives, and to offer incentives to
manufacturers that develop more environmentally beneficial products.

❖ Importance of green marketing

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Man has limited resources on the earth, with which she/he must attempt to
provide for the worlds' unlimited wants. There is extensive debate as to
whether the earth is a resource at man's disposal. In market societies where
there is "freedom of choice", it has generally been accepted that individuals
and organizations have the right to attempt to have their wants satisfied. As
firms face limited natural resources, they must develop new or alternative
ways of satisfying these unlimited wants. Ultimately green marketing looks
at how marketing activities utilize these limited resources, while satisfying
consumers wants, both of individuals and industry, as well as achieving the
selling organization's objectives.
When looking through the literature there are several suggested reasons for
firms increased use
of Green Marketing. Five possible reasons cited are:
• Organizations perceive environmental marketing to be an opportunity that
can be used to achieve its objectives
• Organizations believe they have a moral obligation to be more socially
responsible
• Governmental bodies are forcing firms to become more responsible
• Competitors' environmental activities pressure firms to change their
environmental marketing activities
• Cost factors associated with waste disposal, or reductions in material usage
forces firms to modify their behavior.
❖ Goals of Green Marketing
• Eliminate the concept of waste.
• Reinvent the concept of product.
• Make prices reflect actual and environmental costs.
• Make environmentalism profitable.
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• Bringing out product modifications.
• Changing in production processes.
• Packaging changes.
• Modifying advertising.

❖ Benefits of Green Marketing

Today’s consumers are becoming more and more conscious about the
environment and are also becoming socially responsible. Therefore, more
companies are responsible to consumer’s aspirations for environmentally
less damaging or neutral products. Many companies want to have an early
mover advantage as they have to eventually move towards becoming green.

Some of the advantages of green marketing are:

• It ensures sustained long term growth along with profitability.
• It saves money in the long run, though initially the cost is more.
• It helps the companies market their products and services keeping the
environment aspects in mind. It helps in accessing the new markets and
enjoying the competitive advantage.
• Most of the employees also feel proud and responsible to be working for an
environmentally responsible company.

❖ 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, (Whirlpool
learned the hard way that consumers wouldn’t pay a premium for a CFC-
free refrigerator because consumers dint know what CFCs were.).
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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 it’s supposed to do-they won’t forego product
quality in the name of the environment.
5. Consider Your Pricing: If you’re 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 it’s worth it. Thus leading brands should
recognize that consumer expectations have changed. It is not enough for a
company to green its products; consumers expect the products that they
purchase pocket friendly and also to help reduce the environmental impact in
their own lives too.

PRESENT TREND: GREEN MARKETING IN

INDIA

• Organizations Perceive Environmental Marketing To Be An Opportunity That

Can Be Used To Achieve Its Objectives:

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 Firms have realized that consumers prefer products that do not harm the natural
environment as also the human health. Firms marketing such green products are
preferred over the others not doing so and thus develop a competitive advantage,
simultaneously meeting their business objectives.

• Organizations Believe They Have A Moral Obligation To Be More Socially

Responsible: This is in keeping with the philosophy of CSR which has been
successfully adopted by many business houses to improve their corporate image.
Firms in this situation can take two approaches:
Use the fact that they are environmentally responsible as a marketing tool.
Become responsible without prompting this fact.

• Governmental Bodies Are Forcing Firms To Become More Responsible:

In most cases the government forces the firm to adopt policy which protects the
interests of the consumers. It does so in following ways:
Reduce production of harmful goods or by –products
Modify consumer and industry’s use and /or consumption of harmful
goods.
Ensure that all types of consumers have the ability to evaluate the
environmental composition of goods.

• Competitors’ Environmental Activities Pressure Firms To Change Their

Environmental Marketing Activities:
In order to get even with competitors, claim to being environmentally friendly, firms
change over to green marketing. Result is green marketing percolates entire industry.

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• Cost Factors Associated With Waste Disposal Or Reductions In Material Usage
Forces Firms To Modify Their Behaviour:

With cost cutting becoming part of the strategy of the firms it adopts green marketing
in relation to these activities. It may pursue these as follows:
A Firm develops a technology for reducing waste and sells it to other
firms. A waste recycling or removal industry develops.

THE FUTURE OF GREEN MARKETING

There are many lessons to be learned to be learned to avoid green marketing myopia,
the short version of all this is that effective green marketing requires applying good
marketing principles to make green products desirable for consumers. The question
that remains, however, is, what is green marketing’s future? Business scholars have
viewed it as a “fringe” topic, given that environmentalism’s acceptance of limits and
conservation does not mesh well with marketing’s traditional axioms of “give
customer what they want” and “sell as much as you can”. Evidence indicates that
successful green products have avoided green marketing myopia by following three
important principles:

• CONSUMER VALUE POSITIONING:

Design environmental products to perform as well as (or better than)

alternatives.

Promote and deliver the consumer desired value of environmental products and
target relevant consumer market segments.
Broaden mainstream appeal by bundling consumer desired value into
environmental products.

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 • CALIBRATION OF CONSUMER KNOWLEDGE:

Educate consumers with marketing messages that connect environmental

attributes with desired consumer value.
Frame environmental product attributes as “solutions” for consumer needs.

Create engaging and educational internet sites about environmental products

desired consumer value.

• CREDIBILITY OF PRODUCT CLAIMS:

Employ environmental product and consumer benefit claims that are specific
and meaningful.
Procure product endorsements or eco-certifications from trustworthy third
parties and educate consumers about the meaning behind those endorsements
and Eco certifications.
Encourage consumer evangelism via consumers social and internet
communication network with compelling, interesting and entertaining
information about environmental products.

STRATEGIES FOR GREE COMMUNICATION :

Make environmental messages consistent with the company’s existing voice in

the marketplace.
Empower consumers to get involved to make a difference.

Enlist cultural icons to tell the story.

Show that environmental initiatives lead to better quality products.

Be ready to experiment publicly, even if it doesn’t always lead to success.

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 Price environmentally preferable products comparable to conventional ones.

Link environmental innovations to other benefits, like quality and durability.

Thanks, customers, for making good, green choices, and tell them how they are
making a difference.
Seek recognition from peers and activists’ groups and challenge competitors to
join in.
Green products should not be any different from regular ones in branding,
price, use or performance.

2.1 Challenges in Green Marketing

Many organizations want to turn green, as an increasing number of consumers' want
to associate themselves with environmental-friendly products. Alongside, one also
witnesses confusion among the consumers regarding the products. In particular, one
often finds distrust regarding the credibility of green products. Therefore, to ensure
consumer confidence, marketers of green products need to be much more transparent,
and refrain from breaching any law or standards relating to products or business
practices.

There are numerous challenges in the field of green marketing. Some of the major
hurdles are as following:

➢NEED FOR STANDARDIZATION

It is found that only 5% of the marketing messages from “Green”
campaigns are entirely true and there is a lack of standardization to
authenticate these claims. There is no standardization to authenticate these
claims. There is no standardization currently in place to certify a product as
organic. Unless some regulatory bodies are involved in providing the

17
certifications there will not be any verifiable means. A standard quality
control board needs to be in place for such labeling and licensing.

➢NEW CONCEPT
Indian literate and urban consumer is getting more aware about the
merits of Green products. But it is still a new concept for the masses. The
consumer needs to be educated and made aware of the environmental
threats. The new green movements need to reach the masses and that will
take a lot of time and effort.
By India’s ayurvedic heritage, Indian consumers do appreciate the
importance of using natural and herbal beauty products. Indian consumer is
exposed to healthy living lifestyles such as yoga and natural food
consumption. In those aspects the consumer is already aware and will be
inclined to accept the green products.

➢PATIENCE AND PERSEVERANCE

The investors and corporate need to view the environment as a major
long-term investment opportunity, the marketers need to look at the long-
term benefits from this new green movement. It will require a lot of patience
and no immediate results. Since it is a new concept and idea, it will have its
own acceptance period.

➢AVOIDING GREEN MYOPIA

The first rule of green marketing is focusing on customer benefits i.e.
the primary reason why consumers buy certain products in the first place. Do
this right, and motivate consumers to switch brands or even pay a premium
for the greener alternative. It is not going to help if a product is developed
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which is absolutely green in various aspects but does not pass the customer
satisfaction criteria. This will lead to green myopia. Also if the green
products are priced very high then again it will lose its market acceptability.

GREEN MARKETING OPPORTUNITIES

Equipped with a better grasp of ecological issues, enlightened businesspeople

voluntarily adopt environmentally responsible business practices. A growing number of
CEOs now appreciate the link between environmental responsibility and more efficient -
and profitable - business practices. And more and more business communicators know
how to use green marketing strategies to take advantage of opportunities to boost their
corporate environmental images.

MORE PROFITS –
Many companies, and especially those in such highly polluting industries as
chemicals, oil, and electrical power generation, now have management systems in place
to make sure corporate environmental profiles and products exceed consumers’
expectations. Today, major U.S. corporations conduct environmental audits and recycle
their waste. Countless others upgrade their facilities with energy-efficient technologies.
Such steps reduce operating costs and liability while boosting profits.
Producing eco-efficient products creates less waste, uses fewer raw materials and
saves energy, too. Thanks to innovative manufacturing processes suggested by highly
motivated and environmentally trained employees, Interface, the world's largest producer
of commercial carpeting, projects a savings of more than $35 million by the end of 1997.
The changes required for making and marketing environmentally sensitive
products enhances employee morale and productivity with a payoff in improved customer
relations and overall returns on investment. Enhanced corporate imagery ensues, and this
can help attract investors and top talent.

COMPETITIVE ADVANTAGE –

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 Many marketers now know that being the first to the shelf with an environmental
innovation brings competitive advantage. Since 1993, Rayovac introduced Renewal
brand reusable alkaline batteries and redefined the market for re-chargeable. With 50
percent of the production capacity for phosphate detergents, German-based Henkel
pioneered the market for zeolites and claimed market leadership when their consumers
shifted to phosphate-free detergents. Philips Lighting, inventors of compact fluorescent
lighting technology, stood ready when businesses and electric power utilities came
calling for replacements for energy-guzzling incandescent. Wellman, Inc., has expanded
its business definition from plastics recycler to pioneers in the market for branded
polyester fiber made from used Coke bottles.
Many of these leaders have been showered with any number of eco-accolades
now offered by industry, media, government or environmental groups. One example is
the Special Edison Award for Environmental Achievement bestowed by the American
Marketing Association. It has been won by Fortune 1000 firms including 3M and Procter
and Gamble as well as by a raft of up-and-coming firms with a deep-green orientation
like Natural Cotton Colours, Patagonia, and Tom’s of Maine.
Young, aggressive competitors adept at capturing the imaginations and winning
the hearts of highly desirable environmentally and socially conscious customers are
introducing some of the most exciting green products. The success of Patagonia
outerwear, Stonyfield Farm Yogurt, and Tom’s of Maine toothpaste suggest that
consumers now have higher expectations for the products they buy and that quality is an
image that no longer stands apart from environmental impact.
Looking to cash in on the potential for future green-oriented sales, well-
established mass marketers now shop for green companies with promising green brands;
recent acquisitions include Earth’s Best Baby Foods (by Heinz), Murphy’s Oil Soap
(Colgate- Palmolive), EarthRite Cleaning Products (Reckitt & Colman). After nearly two
decades of compromising on quality –and languishing on once-dusty health food store
shelves as a result–today’s crop of green products finally embody all that consumers
demand: an opportunity to clean up the mess without having to give up price or quality.
With the deepened consumer confidence in green products that results, the market
becomes legitimized.

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INCREASED MARKET SHARE –
Times are tough for marketers of branded products. Brand loyalty is near all time
lows, and the percentage of Americans who feel that some brands are worth paying more
for is declining. In this tough, competitive climate, environmental compatibility breaks
ties at the shelf. Pragmatic consumers skew purchases to those products and packages
that must be recycled or otherwise safely disposed of in their communities. All else being
equal, many consumers look to do their bit by happily switching brands, or "boycotting"
those companies and products deemed environmentally sound and boycotting the brands
of companies with disappointing environmental track records.
Theses growth opportunities have not been lost on such market leaders as Procter
& Gamble, McDonald's, and Compaq. They offer the greenest of mainstream products
and take pains to project environmentally appropriate corporate images. Pick up a bottle
of Tide laundry detergent and learn how it is "phosphate-free," contains "biodegradable
cleaning agents," and is packaged in a "recycled-content" bottle. Check out the basic
brown paper carry-out bags and speckled (recycled) napkins at McDonald's (they are now
testing "Earth Shell" compostable food wraps), and buy a Compaq PC emblazoned with
the Energy Star energy-saving designation.
Many executives would be shocked to discover just how many consumers are
aware of - and act upon - their knowledge of corporations’ track records for
environmental, and also social, responsibility. In one poll conducted by the Porter Novelli
public relations firm, for example, consumers were five times more apt to believe that a
company’s record on the environment was an "important" factor in their purchasing
decisions than corporate executives believed.

BETTER PRODUCTS –
While much brand switching is conducted in the name of altruism, what attracts
many consumers to greener products is quite simply the prospect of higher quality: water-
saving showerheads slash energy bills, concentrated laundry detergents are easier to carry
and store, and nontoxic garden products are safer for children. Except these enhanced
primary benefits–of performance, convenience, price, and safety, for example–that

21
accompany environmental improvements to continue to propel the market for
environmentally preferable products in the years and decades ahead.

PERSONAL REWARDS –
Green marketing offers a rare opportunity to integrate one’s values into the
workplace. Creating products that are more in sync with nature allows one to personally
contribute to environmental cleanup and help ensure a more secure future for our
children.
A mind once expanded never goes back to where it was. No longer content to
promise consumers that their clothes will become "whiter than white" or breath that is
"fresher than fresh", green marketers–like their bosses who manage for a double bottom
line–cultivate higher levels of satisfaction and reward. They offer their consumers the
prospect of healthier, more fulfilled lives, and the power to make the world a better place.

(2.2) GREEN MARKETING – REASONS FOR ADOPTION

BY THE FIRMS

Green marketing has been widely adopted by the firms worldwide and the
following are the possible reasons cited for this wide adoption:

1) OPPORTUNITIES - As demands change, many firms see these changes

as an opportunity to be exploited and have a competitive advantage over
firms marketing non-environmentally responsible alternatives. Some
examples of firms who have strived to become more environmentally
responsible, in an attempt to better satisfy their consumer needs are:

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 •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.

2) 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
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. For example, 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.

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3) 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.

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. 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 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
24
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.

5) 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.

25
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.

(2.3)GREEN MARKETING MIX

PRODUCT
Entrepreneurs wanting to exploit emerging green markets either: Identify
customers’ environmental needs and develop products to address these needs
or will develop environmentally responsible products to have less impact
than competitors.
The increasingly wide variety of products on the market that support
sustainable developments are:
• Products made from recycled goods, such as Quick’ N Tuff housing
materials made from recycled broccoli boxes.
• Products that can be recycled or reused.
• Efficient products, which save water, energy or gasoline, save money and
reduce environmental impact.
• Products with environmentally responsible packaging, McDonalds, for
example, changed their packaging from polystyrene clamshells to paper.
• Products with green labels, as long as they offer substantiation.
• Certified products, which meet or exceed environmentally responsible
criteria.

26
• Organic products-many customers are prepared to pay a premium for
organic products, which offer promise of quality. Organic butchers, for
example, promote the added qualities such as taste and tenderness.
• A service that rents or loans products-toy libraries.
Whatever the product or service, it is vital to ensure that products meet or
exceed the quality expectation of customers and is thoroughly tested.
PRICE
Pricing is the critical element of the marketing mix. Most customers will
only be prepared to pay a premium if there is a perception of additional
product value. This value may be improved performance, function, design,
visual appeal or taste. Environmental benefits will be often be the deciding
factor between products of equal value or quality.
Environmentally responsible products, however are often less expensive
when product life cycle coast are taken into consideration, for example fuel-
efficient vehicles, water efficient printing and non-hazardous products.
PLACE
The choice of where and when to make products available will have
significant impact on the customers you attract. Very few customers go out
of their way to buy green products merely for the sake of it. Marketers
looking to successfully introduce new green products should position them
broadly in the market place so they are not just appealing to a small green
niche market.
The location must also be consistent with the image you want to project and
allow you to project your own image rather than being dominated or
compromised by the image of venue. The location must differentiate you
from the competitors. This can be achieved by in-store promotions and

27
visually appealing displays or using recycled materials to emphasize the
environmental and other benefits.
PROMOTION
Promoting products and services to target markets include paid advertising,
public relations, sales promotions, direct marketing and on-site promotions.
Smart green marketers will be able to reinforce environmental credibility by
using sustainable marketing and communication tools and practices. For
example, many companies in the financial industry are providing electronic
statements by email; e-marketing is rapidly replacing more traditional
marketing methods and printed materials can be produced using recycled
materials and efficient processes such as waterless printing.
Retailers, for example are recognizing the value of alliances with other
companies, environmental groups and research organizations. When
promoting their environmental commitment to reduce the use of plastic bags
and promote their green commitment, some retailers sell shopping bags and
promote their green commitments.

(3.1)Moving Towards Green Marketing

The era of green marketing has begun. It has already been granted wide
acceptance by all stakeholders. However, there is a need to lay down the
standards and practices, in order to bring in objectivity in the judgment of
various national and international agencies. This will not only encourage the
activities of green marketing but shall also provide the much needed level
playing fields to all.
✔ DEVELOPMENT OF ISO 14000 SERIES OF STANDARDS.

28
ISO has been developed to help any company in any country to meet the
goal of sustainable development and environmental friendliness. The ISO
14000 family of standards ( i.e. ISO 14001, 14004, 14010, 14011 and 1412)
were published as an official document in 1996.
The ISO series aims to provide guidance for developing a comprehensive
approach to environmental management and for standardizing some key
environmental tools of analysis such as labeling and life cycle assessment.
✔ ECO-LABELING INITIATIVES
Eco label provide information regarding the environmental performance of
products. The objective of eco-labeling is to provide authentication to
genuine claims regarding the environmental impact of products and
processes by manufacturers.
In India the government has introduced the eco-mark scheme since 1981.
The objectives of the Scheme are:
• To provide incentives to manufacturers and importers to reduce the adverse
environmental impact of products.
• To reward genuine initiatives by companies to reduce adverse impact of
environmental impact of products.
• To assist consumers to become environmentally responsible in their daily
lives by providing them information to take account of environmental
factors in their daily lives.
• To encourage citizens to purchase products which have less environmental
impact.
✔ ECO-LABELLING SCHEMES IN INDIA
The Ministry of environment and forest of government of India has
prescribed the following criteria for products:

29
• That they cause substantially less pollution than comparable products in
production, usage and disposal,
• That they are recycled and/or recyclable whereas comparable products are
not.
• That they contribute to a reduction on adverse environmental health
consequences.
• That they comply with laws, standards and regulations pertaining to the
environment.
• That their price is not exorbitantly higher than comparable products.

(3.2)SHIFTING TO A GREEN ERA

The color GREEN, until recently was associated all over the world with
emerald. In the modern age, however, GREEN is getting associated with
sustainable development. Being green is no longer a matter of choice; its
marketing is a must, or else enterprise may run the risk of losing customers,
employees and shareholders. It has become almost a necessity to maintain a
green lifestyle.
The possibility of oceans rising and claiming coastal lives, climate change,
and polluted air and water are beginning to gain momentum towards the
green movement.
Today there is an increasing concern among the business houses towards the
challenges posed by the environment. Green consumerism is playing a
catalytic role to bring in environmentalism and make business green
oriented. Also it has been noticed that there has been an increasing trend of
consumers demanding for a “Green Image” of an enterprise. The most

30
feasible option available for the business houses is to put into practice the
process of “Green Manufacturing”. It involves product recovery activities as
well as reverses logistics.
Product recovery concept is applied on the returned product so as to translate
it to a usable one, for example remanufacturing, refurbishing or even
recycling. Whereas reverse logistics focuses on inbound supply and
distribution of used goods and inventory.
Companies like ABB, MUL, Ranbaxy and many more have taken up green
projects. They sponsor huge amount and in return earn a lot of goodwill, low
cost publicity, and an environment conscious image. Scores of such
enterprises have responded to environmental concerns with several strategic
versions of green business, which are enumerated below:
• Adopting products/packages to make them environmentally sound.
• Making realistic environmental claims about existing products through the
advertisements.
• Linking brands with environmental causes to create goodwill.
• Introducing entirely new range of products explicitly designed to appeal
environmentally conscious consumers.

(3.3)GREEN WASHING

“Green washing” is the process of making products and services “Green” in

all respects.
To make products and services green the businesses need to focus on
bringing the green in various aspects such as:
● Supply Chain

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 ● Packaging
● Raw Material
● Product Innovations
It is not enough just to develop a brand or a logo, or invest in an advertising
campaign, and then position a product as Green before consumers.
Like any other new concept, marketers must first educate the public about
going green, ensure product credibility, and establish trust. Moreover, since
“Green” aspect of the product is not a tangible attribute that the consumers
receive the consumer has to be convinced about the benefits of the green
benefits of the product. It is also important to understand how companies
across the globe are innovating and creating “Green” products.

✔ “GREEN” RAW MATERIAL-

This refers to using recycled material or using material, which does not have
a negative impact on natural resources like resulting in problems such as
deforestation and pollution.
Example: Grid core Systems International – demonstrated the use of
Recycled Building Material. The company was looking for an alternative
building material in-order to reduce the impact on environment. While
researching they discovered space board, a new type of building panel
developed by the Forest Products laboratory. Space board can be
manufactured from various recycled or agricultural fibers, and due to a
honeycomb the interior design is just as strong as and several times lighter
than conventional fiberboard.

✔ “GREEN” IN MANUFACTURING-

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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 join 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.
The real estate developers, architects and environmentalists across the globe
are working together to create the next wave of modern eco-friendly
projects: green buildings and manufacturing facilities. They are using energy
conservation appliances and recycling building products and water
harvesting techniques in their projects.

✔ “GREEN” IN PRODUCT DEVELOPMENT-

This refers to either environment friendly or environment efficient products
as demonstrated by the following examples.
Example: Kodak’s 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.
Example: Philips Earthlight Compact Fluorescent Light Bulbs With
relentless efforts on research and development the company was successful

33
in producing compact fluorescent light bulbs, which are the most energy
efficient bulbs.

✔ “GREEN” BY USING ALTERNATIVE INGREDIENTS TO

REDUCE HEALTH RISKS -
Example: AFM Safecoat and Safechoice Paints to meet the markets
demand for non-toxic paints, the California based company invested in
Research and Development and developed a full line of non-toxic coatings,
paints, stains and adhesives.

✔ “GREEN” IN SUPPLY CHAIN-

Example: 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 dispose of their waste in an inappropriate fashion.
With the intent to cut costs and work on eco-friendly image and practices
McDonald’s 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.

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Some food chain retailers are working on Green Procurement program to
help purchasing officers to buy products and services that have a lower
environmental impact than comparable products and services.

✔ “GREEN” IN PACKAGING-
Packaging is a key element of marketing mix for promoting “Green
washing”. It can also be an effective tool to display 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.
“Green” consumers tend to appreciate consistence in package and product.
They will appreciate the usage of recycled paper and other environment
friendly materials. That will help manufacturers/suppliers gain customer
loyalty and product credibility.
Third Party Certification Seal on Package
In order to win consumer trust and for product credibility many companies
go in for a third party certification. This helps build trust and acceptability
by the consumer.
A third party seal guarantees the consumer that the product fulfills its
promise and is true to his claim. One such third party in the USA is the
Green-e Program of the Center for Resource Solutions. Certification
provides an independent third-party review of the program similar to the ISO
9000 or CMMI Six Sigma level of certifications, which mat help build
consumer confidence. Once a green product earns certification, they can
35
publicize this achievement and promote their certification through the use of
the Green-e logo on their marketing materials and website.

✔ “GREEN” IN SERVICES-
With increased demand for value-based marketing, there is also growing
demand of “Green” 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 company.
The company is working on “Triple Bottom Line” i.e. social, economic and
environmental capital. The company is involved in many community driven
initiatives. 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 Initiative. The company is investing in large-scale
plantations to wash away its carbon positive image. It is also focusing on
water harvesting and working towards zero solid waste by recycling.
36 Cigarette warehouses were converted to make ITC InfoTech’s global
development campus in the heart of Bangalore. The company has used
recycled material and virtualization tools for optimizing energy usage in its
data centers. It is also working on digital infrastructure to connect the rural
farmers to the Internet using solar panels for power, so that the Indian
farmers can get information on crop research and monitor weather trends.
The company is using these as a service differentiator and positioning itself

36
as Green service Provide. The corporate image of ITC Ltd. is further
enhancing the True Green Image.

STRATEGIES TO BE IMPLEMENTED IN GREEN MARKETING

I. PRODUCT DIFFERENTIATION

Organizations are putting continuous efforts to differentiate their products and

services using green marketing practice. In a wide range of markets including
retailing etc companies have used eco performance to differentiate and to compete.
Products with poor eco performance can become targets for new substitution, as a
result of this many organizations are coming up with greener ideas to differentiate
their products from competitors.

CONSUMER VALUE POSITIONING- organizations can design environmental

products to perform as well as provide alternatives. In addition to this promoting and
delivering the consumer desired value of environmental products and target relevant
consumer market segments can help the organization to differentiate.

CALIBERATION OF CONSUMER KNOWLEDGE-Educates customers with

marketing messages that connect environmental product attributes with desired
consumer value.

II. DESIGNING BIO-DEGRADABLE PACKAGING

37
 It is seen that promotion of green products strongly influences the consumers buying
decisions. It is one of the most important factors of product attractiveness. Thus, it has
been indicated that bio-degradable packaging will affect in a strong and moderate
way respectively on their buying decisions.

As a marketing strategy the companies should modify the product packaging

by using only the recycle as well as handmade paper in packaging. Instead of being
more mechanized the companies must find creative ways reusing the waste products
which are harmful to the environment. Manufacturing companies which are using
plastic for packaging should meet certain standardization. For example, Bisleri plastic
bottles or the water bottles can last only for 15 days and after that it generates certain
chemicals which are harmful and there is no reusability of this kind of plastic.
Companies should modify these kinds of packaging styles and find out some
innovative ways to recycle it.

III. PRODUCT STRATEGY

In this strategy marketers can identify customer’s environmental needs and develop
products to address this issue, produce more environmentally responsible packages
and ensure that products meet or exceed the quality expectation of customers. In
addition to that marketer can charge higher price with highlighting eco-friendliness of
the products.

IV. DISTRIBUTION STRATEGY

In case of this strategy obtaining dealer support to green marketing practice is

essential. The location must differentiate from competitors, and it can be achieved by

38
 in-store promotions and displays by using recycle materials to emphasize the
environmental and other benefits.

Even though distribution has no big involvement in green marketing, few

consumers are willing to get the services from places and distribution channels which
are not cause to environmental pollution.

V. LIFE-CYCLE ANALYSIS

Brands which aspire to be sustainable must “get their house in order” before they start
planning any green marketing initiatives. The best brands are performing life cycle
analysis- complex assessments which provide critical data on social, environmental,
and economic impact of products through the supply chain production process and
after the purchase. Life cycle analysis tells a brand just how far it needs to go before it
claims to be sustainable. Consumers don’t expect perfection when it comes to
sustainability, but they want to see that brands understand the scale of the problem,
have a plan and are in the process of implementing it.
VI. INCENTIVES AND STRUCTURAL FACTORS

Commercialization programs and incentives help get new technologies introduced

examples include fleet programs to cultivate strategic niche markets and by providing
financial incentives such as the advanced vehicle tax credit proposal in case of green
vehicle purchase. Consumers can be motivated by incentives and awards to:

Curtail – Reduce the impact on the environment by modifying extant living

patterns.
Maintain – Keep equipment in good working order.

39
 Be efficient – Undertake structural changes such as buying environmentally
friendly equipment.

(4.1)GREEN MARKETING: A
CORPORATE INITIATIVE
It is important in today’s world because mankind has limited resources on
the earth and if we want long term sustainability of human life on this
earth’s 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 friendly initiatives taken by the companies.

Sony: Green “ODO” Digital Camera -

Sony has recently 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:

40
1. Spin N Snap: The spin and snap is a digital camera. It has two holes which
are used as
View finder 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. Crank N’ 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.
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.
Sony’s ODO line product series are the most innovative eco-friendly
products which are very safe and handy. Even children can also use these
products.

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Cipla: CFC-free Inhaler -
Cipla-India’s second largest drug company by market share has planned and
started replacing all its CFC contained drugs to meet the international
standard and Montreal Protocol ban deadline. The CFC depletes the ozone
layer and also is a major cause of global warming. Cipla has updated the
necessary technology to avoid the CFC and has also done its clinical trial in
India and overseas. The Rota haler and the Asthalin inhaler are environment
– friendly inhalers, used by asthma and bronchitis patients. These inhalers
are using HFA (Hydro Fluro Alkaline) technology. The Rotahaler is a
powder based inhaler, different from regular inhaler which contains
propellants.

Bharat Petroleum -
Bharat Petroleum launched a campaign to position itself as a responsible
corporate ‘green’ entity. Foraying into renewable energy-solar and wind
power-it installed solar panels on its service stations. It also ran a program to
cut production of greenhouse gases by 10% across its units worldwide and
achieved it much ahead of schedule. Cleaner fuels such as Greener Diesel
(ultra low sulphur content) and BP Auotgas were developed. Almost all of
its plants are ISO 14001 certified. Currently it is running a program to
contain its net emissions at current levels for ten years.

42
Hindustan petroleum -
Hindustan petroleum owns a massive e-waste recycling plants, where
enormous shredders and granulators reduce four million pounds of computer
detritus each month to bite-sized chunks-the first step in reclaiming not just
steel and plastic but also toxic chemicals like mercury and even some
precious metals. HP will take back any brand of equipment; its own
machines are 100 percent recyclable.

Nokia: The Take-Back Campaign

The Take-Back campaign is running successfully in 85 countries. It was

recently launched in India, specifically in Bangalore, Delhi, Gurgaon and
Ludhiana, with over 1,300 recycling bins distributed just in the first months.

Other companies:-

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 • LG has insisted mainly on power management,
• While Nokia has centered its attention on the use of recyclable
materials. Samsung has produced marketing-friendly green devices
like its Restore and Reclaim and has mainly focused on producing
phones with reduced toxins, by removing BFRs (bromide flame
retardants) last year. It also plans to remove most other toxins by the
end of 2012.
• Sony Ericsson, with its Green Heart line, concentrates mainly on
packaging.

Videocon-

• The company has changed its logo, appeal and also its corporate
strategy in order to adjust to the recent global environment and stay in
the race. Videocon changed it logo from the traditional giant solid
silver ‘V’ to a more fluid lava type ‘V’.
• With this new logo, it is visible that the company is trying to portray
itself as an eco friendly company with a fresh outlook and to give a
feel that the Videocon always on the move. Using the color of nature,
i.e. green, Videocon has give a feel that it product are environmentally
aware and with respect to world environmental standards.

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IDEA AD CAMPAIGNING- SAVE PAPER. SAVE TREES. SAVE
THE WORLD

IDEA Cellular, the 3rd largest GSM mobile service operator in India, has
its own way to promote the brand. IDEA has launched an ad: Use Mobile,
Save Paper. This ad also features IDEA’s brand ambassador Abhishek
Bachchan, but as a tree! This new ad is sixth in the series. The preceding
campaigns were

• ‘Championing a world without caste’,

• ‘Championing a world in which no one suffers from the disability to
communicate’;
• ‘Education for All’,
• ‘Participative Governance’,
• and the last ‘Walk When You ,Talk’.   

AIRCEL AD CAMPAIGNING- SAVE OUR TIGERS-

45
 • Save our Tigers campaign is collaborative effort from Aircel and
WWF India to save the wildlife especially tigers worldwide.
• Amitabh Bachaan has joined the initiative as the campaign
ambassador
• Dhoni who roars for our Tigers in Aircel Save our Tiger Ad
• Kiran Bedi, Suresh Raina and Baichung Bhutia follow the same.

DELL-

46
 • For the past three months, Dell has been working towards bringing a
path-breaking initiative for our consumers in India - the Dell Go
Green Challenge. It is designed to promote a green approach towards
technology adoption for consumers in India, by asking them to share
their ideas and stories about how they aim to change the way
technology is being used in our homes and offices.
• As our economy is growing and technology penetration is increasing,
e-waste is one of the biggest challenges we as a nation are facing, and
recycling is still not an option that most consumers are either aware
of, or interested in taking up.
• As one of the world’s leading providers of technology, they recognize
our responsibility to ensure that technology is recycled at the end of
its usable life. Dell was in fact the first computer company to offer
consumer free recycling worldwide and both these initiatives are
designed to create awareness among consumers on recycling of PCs in
India.

47
 • Dell has launched the ‘Dell Go Green Challenge’ in an effort to raise
awareness and community involvement in green initiatives in India.
The challenge
invites consumers
to share

photographs, videos and other innovative depictions of key issues,

concerns or thoughts on green technology at www.dellgogreen.com.

• The contest has provided a platform to build a Dell Go Green

community of green technology and lifestyle enthusiasts, to connect
with each other online, and share ideas, thoughts and visions on the
issue of e-waste and sustainable technology. We have got over over
600 ideas over the last three months. These ideas have been voted on
by the community and we look forward to the winners being
announced shortly

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 (5.1)UNDERSTANDING CONSUMER
PERCEPTION AND
PRIORITIES TO MAXIMIZE BUSINESS
Carbon labels show consumers the “Carbon Content” of an individual
product. An item’s content is the total amount of carbon dioxide emitted
from very stage of its production and distribution, from source to store. This
is also known as “embedded carbon”, or a carbon footprint. Today’s
consumer is more ethically and environmentally aware than ever before, and
increasingly so with regard to the consumption of food and drink. In the
media, on the shelves, the focus on reducing our carbon footprint is
constantly present, and the push to understand where our food is from
increasing.
Carbon labeling is a really recent development. The focus on reducing
carbon footprint is constantly present, and the push to understand what they
are purchasing and consuming. But to make it a success, the understanding
regarding:
a) What they are purchasing?
b) How are they prioritizing- between organic, fair trade, carbon friendly and
so on?
c) Whether the consumers are getting what they want to purchase?
Study Findings on the Basis of Literature Regarding Consumer Behavior:

49
 ● Consumers show different attitudes to issues like:
a) Food quality is shoppers’ most important concern. Price is also very
important for those on lower incomes.
b) Whether health, environmental and social issues are very important in
relation to the food they buy.
c) Concerns for health, environmental and social issues vary with household
income or not.
d) Concern for health, environmental and social issues increase with age or
not.
e) Women do most of the shopping, and they are more concerned about
health, environmental and social issues than men.
f) Attitudes vary regionally, and there is particularly strong concern in the
South West.
● Familiarity with labels for different consumers is different:
How familiar are you with each of the following types of information on
product packets on the basis of:
a) Most people are at least somewhat familiar with most forms of product
information.
b) Familiarity with the product information is much higher among people
who think the issues are very important.
● Use of labels had different perceptions for different consumers:
Use of the following types of information when making decisions about
what consumers buy is different for every consumer on the basis of:
a) Product information is used by many consumers.
b) There is a clear link between concern about health, environmental and
social issues and use of relevant product information.

50
c) The gap between attitudes and behavior is wider in relation to
environmental and social issues that in it is with the mainstream health.
d) There is little variation with income, except organic labels are used more
by people with higher incomes.
e) Product labeling is generally used more by older people.
f) Women use nutrition information more, but broadly similar numbers of
men and women use organic and Fair trade information.
g) Different patterns of use in different regions.
● Barriers to greater integration into shopping behavior on the
basis of changing patterns of consumption mean that increasingly
consumers are considering the social, environmental and health
issues associated with production and consumption:
a) “Products too expensive” is the number one barrier.
b) “Takes too much time” is the second biggest barrier to choosing healthy
food.
c) “I don’t know enough about it” is the second biggest barrier to choosing
environmentally friendly and socially responsible food.
d) Other barriers are significant or not, like:
➢Unavailability of products (either altogether, or of sufficient quality).
➢Lack of understanding about the issues in general.
➢Difficulty in understanding the product information.
➢Concerns about the reliability of the product information.

(5.2)GREEN CONSUMER BEHAVIOR

⮚ Environmentally Conscious Consumer Behavior

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Environmentally Conscious Behavior (ECCB) is consumer behavior based
on some awareness of the environmental impacts associated with a product
or service, and a desire to reduce those impacts. Many researchers in the
field of consumer’s psychology and market research have demonstrated a
substantial grow thin ECCB across a range of markets. It has been
demonstrated through case studies that how product developers and
marketers have capitalized on this positive attitude and effectively
differentiated their product in terms of their environmentally friendly
character. The term environmental consciousness does not have a
standardized definition in the body of academic literature; the reason can be
due to arousal of the term out of political and everyday language.
Environmental consciousness is the desire to protect flora and fauna,
willingness scrutinize the consequences of economic activity and a
willingness to combine long term with short term planning.

⮚ Green Buyers and Green Consumers

 Research about the identity and nature of green consumer has been the
central character in the development of green marketing, as business attempt
to understand and respond to external pressures to improve their
environmental performance. Marketing practitioners and academics are
attempting to identify and understand green consumers and their needs, and
to develop market offerings that meet these needs.
SEGMENTATION OF GREEN CONSUMERS-
• True-Blue Greens- The most environmentally active segment of the
society.
• Greenback Greens- Those most willing to pay the highest premium for
green products.
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• Spouts- Fence-sitters who have embraced environmentalism more slowly.
• Grousers- Uninvolved or disinterested in environmental issues, who feel
the issues are too big for them to solve.
• Apathetic- The least engaged group who believe that the environmental
indifference is main stream.

Apart from this, Natural Marketing Institute (NMI) divides the market into
following categories:
• Lohas- Very progressive on environment and society, looking for ways to
do more; not too concerned about price.
• Naturalites- Primarily concerned about personal health and wellness, and
use many natural products; would like to do more to protect the
environment.
• Conventional- Practical, like to see the results of what they do; interested
in green products that make sense in the long run.
• Drifters- Not too concerned about the environment, figuring we’ve got
time to fix the environmental problems; don’t necessarily buy a lot of green
products.
• Unconcerned-Have other priorities, not really sure what green products are
available and probably wouldn’t be interested anyway; they buy products
strictly on price, value, quality and convenience.

⮚ Consumer Information and Education

If managers believe that consumers view greenness as a motivating variable,
they should invest in conveying information through advertising, direct
mailing, brand labels, in-store displays and pamphlets. The important points
to be noted here are
53
 a. Firms willing to provide clear, comprehensive and credible
information must ensure that consumers have low cost to access it.
b. Governmental policies and stakeholder initiatives can be important in
reducing consumers search, information or transaction costs.
c. Regulators can publish and disseminate it to the media by press
releases and post it on the internet.
d. Stakeholders can use the media as well as use their organization-
specific vehicles such as newsletters.
Green marketing can be successfully implemented by use of ICT in
cost effective way:
● By developing compelling, concise messages, plan innovative ways
to repeatedly deliver, identify appropriate links within network
of political, legislative, nonprofit organization and media, develop
concept based programs and events.
● Utilize extensive relationship with local and national media to get a
client’s message to the right media targets.
● Identify venues, plan tours, identify audiences, and organize meals,
speakers and press.
● Strategies and plan joint PR initiatives as well as joint advertising
campaigns and events to cross-promote companies and organization
campaigns.
● Help develop identify and branding for print, broadcast and digital
mediums.
● Consulting and creation of a corporate design, brochures, leaflets,
info materials.
● Develop web sites, e-mail campaigns, and banner advertising.

54
 ● Develop creative print, broadcast and digital advertising, identify
advertising targets and purchase appropriate media slot
GREEN MARKETING: SWOT ANALYSIS

As in formulation of green strategy, a firm may evolve it from a SWOT analysis

Environmental Audit.

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.

55
 3. Many customers keep away from products labelled “Green” because they
see such labelling 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 consumers’ socially
conscious behavior and will therefore give them an advantage over
competitors who do not address these issues.

E.g. offering an environmental friendly product and saving resources, and

relating them to internal strengths.

THREATS:

1. Uncertainty as to the environmental impact of present activities, including

that is perceived to be less environmentally harmful.
2. Uncertainty as to which green marketing activities are acceptable from a
government perspective.

56
 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).

ENVIRO(MENTAL AUDIT:

It is a management tool which can be used to assess the environmental performance of

the company and its units and to identify the weak points. Environmental Audit is
comprised of a systematic, documented, periodic and objective environmental
performance evaluation and facilities

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 (6.1)RESEARCH OBJECTIVES
1. To understand the concepts and importance of Green marketing.
2. To understand the level of awareness regarding green marketing
among consumers.
3. To understand the buying behavior of consumers related to green
marketing.
4. To understand how green marketing helps Company to built its image.
5.  To understand the success of green marketing as a corporate social
responsibility.

58
 (6.2)RESEARCH METHODOLOGY
❖ 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 and flexibility.
✔ Sample size - 50 consumer

(6.3)DATA ANALYSIS & INTERPRETATION

RESULTS:

59
 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

36
No
14 Yes

0 5 10 15 20 25 30 35 40

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

60
 35
32
30

25

19
20
Yes
15 No
10

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

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 47
50

45

40

35

30
Yes
25 No
20

15

10
3
5

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

4. Do you consider the environmental aspects of the products before

buying them?
a. Yes b. No c. Sometimes

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 yes
24%

Sometimes
48%

No
28%

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

63
 No
6%

Yes
94%

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

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 50
45
45
40
35
30
25
20
15
10
5
5
0

Yes No

We can see most of the respondents feel that Green marketing activities are
good at addressing environmental issues.
7. Do you think Green Marketing activities results in better products?
a. Yes b. No

65
 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes 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 company’s image in the
mind of consumers?
a. Yes b. No

66
 40
37
35

30

25

20
Yes
No
15 13

10

The above chart indicates, majority of the respondents, i.e. 37 respondents

feel that it strengthen company’s 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

67
 No
42%
Yes
58%

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

68
 25

20

15

10

0
strongly agree disagree strongly
agree disagree

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

69
 33

35

30

25
17
Yes
20
No
15

10

0
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.

(6.4)RESEARCH FINDINGS
In my research work through the survey of questionnaire I find the following
points-

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 1. Maximum numbers of respondents are not familiar with the term
Green Marketing
2. Most of the respondents are not aware of any campaign related to
green marketing
3. Maximum numbers of respondents sometimes consider the
environmental aspects of the products while purchasing.
4. Significant numbers of respondents feel that green marketing and
advertising are good sources of information about green products and
services.
5. Most of the respondents feel that this marketing strategy helps to
persuade consumers to buy products.
6. Also this type of strategy helps a company to get the competitive
advantage over others.
7. Many respondents feel that sometimes companies are trying to cheat
the customers in the name of green products.

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(7.1)LIMITATIONS OF THE PROJECT

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. UNAWARENESS – People are unaware of Green marketing. So it’s

a very challenging task for me.

(7.2)RECOMMENDATION

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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:

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

● Recycle at every level.
● Educate masses of the environment issues because they are going to
be the bulk consumers.
● Socially responsible investing in environment driven projects.
● Plant more trees.

The corporations must rethink:

● Their raw material and procurement strategies.
● They should develop new products
● They should redesign existing products and service.
● They should realize that pollution prevention can be a cost saving
activity.
● They should steer their product and packaging designs to use less
material.

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 (7.3)CONCLUSION
Green marketing covers more than a firm's marketing claims. While firms
must bear much of the responsibility for environmental degradation, the
responsibility should not be theirs alone. Ultimately green marketing
requires that consumers want a cleaner environment and are willing to "pay"
for it, possibly through higher priced goods, modified individual lifestyles,
or even governmental intervention. Until this occurs it will be difficult for
firms alone to lead the green marketing revolution. Having said this, it must
not be forgotten that the industrial buyer also has the ability to pressure
suppliers to modify their activities. Thus an environmental committed
organization may not only produce goods that have reduced their detrimental
impact on the environment, they may also be able to pressure their suppliers
to behave in a more environmentally "responsible" fashion. Final consumers
and industrial buyers also have the ability to pressure organizations to
integrate the environment into their corporate culture and thus ensure all
organizations minimize the detrimental environmental impact of their

74
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. 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.

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