Mishra etal./Journal of Engineering, Science and Management Education/Vol.

3, 2010/9-14

GREEN MARKETING IN INDIA: EMERGING OPPORTUNITIES AND CHALLENGES

Pavan Mishra* & Payal Sharma**
Received: 10th Sept.2010 Revised: 15 th Dec.2010 Accepted: 25th Dec. 2010

environment with growing awareness

Abstract
Green marketing is a phenomenon which has developed particular important in the modern market. This concept has enabled for the re-marketing and packaging of existing products which already adhere to such guidelines. Additionally, the development of green marketing has opened the door of opportunity for companies to cobrand their products into separate line, lauding the greenfriendliness of some while ignoring that of others. Such marketing techniques will be explained as a direct result of movement in the minds of the consumer market. As a result of this businesses have increased their rate of targeting consumers who are concerned about the environment. These same consumers through their concern are interested in integrating environmental issues into their purchasing decisions through their incorporation into the process and content of the marketing strategy for whatever product may be required.

This paper discusses how businesses have increased their rate of targeting green consumers, those who are concerned about the environment and allow it to affect their purchasing decisions. The paper identifies the three particular segments of green consumers and explores the challenges and opportunities businesses have with green marketing. The paper also examines the present trends of green marketing in India and describes the reason why companies are adopting it and future of green marketing and concludes that green marketing is something that will continuously grow in both practice and demand.

Key Words: - Green Product, Recyclable, Environmentally safe, Eco Friendly. INTRODUCTION
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. Thus "Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption an disposal of products and services happen in a manner that is less detrimental to the

people, crops and wildlife in US. Total tens of billions of dollars each about the implications of global warming, non-biodegradable solid year". "More than 12 other studies in waste, harmful impact of pollutants etc., both marketers and the US, Brazil Europe, Mexico, South consumers are becoming increasingly sensitive to the need for Korea and Taiwan have established switch in to green products and services. While the shift to "green" links between air pollutants and low may appear to be expensive in the short term, it will definitely prove birth weight premature birth still birth to be indispensable and advantageous, cost-wise too, in the long and infant death". As resources are run. limited and human wants are Pride and Ferrell (1993) Green marketing, alsounlimited, it is important for the alternatively known as environmental marketing andmarketers to utilize the resources sustainable marketing, refers to an organization's efforts atefficiently without waste as well as to designing, promoting, pricing and distributing products thatachieve the organization's objective. will not harm the environment So green marketing is inevitable. There is growing interest among the Polonsky (1994) defines green marketing as .all activities designed to generate and facilitate any exchanges intended to consumers all over the world satisfy human needs or wants, such that the satisfaction ofregarding protection of environment. these needs and wants occurs, with minimal detrimentalWorldwide evidence indicates people are concerned about the environment impact on the natural environment. and are changing their behavior. As a Elkington (1994: 93) defines green consumer as one who result of this, green marketing has avoids products that are likely to endanger the health of theemerged which speaks for growing consumer or others; cause significant damage to the market for sustainable and socially environment during manufacture, use or disposal; consume aresponsible products and services. disproportionate amount of energy; cause unnecessary waste; use materials derived from threatened species orThus the growing awareness among environments; involve unnecessary use of, or cruelty tothe consumers all over the world regarding protection of the animals; adversely affect other countries. environment in which they live, WHY GREEN MARKETING? People do want to bequeath a clean It is really scary to read these pieces of information as earth to their reported in the Times recently: "Air pollution damage to
* Prof.& Director, Rajeev Gandhi Management Institutes, Bhopal (M.P.) E-mail : drpavanmishra11@gmail.com ** Lecturer, Mahakal Institute of Management,Ujjain (M.P.), E-mail : payalsharma.ind@gmail.com

09

Journal of Engineering, Science and Management Education Promotion of green technology and green offspring. Various studies by products is necessary for environmentalists indicate conservation of natural that people are concerned resources and sustainable about the environment and development. We can define are changing their behavior pattern so as to be lessgreen products by following measures:

hostile towards it. Now we see that most of the consumers, both individual and industrial, are becoming more concerned about environment-friendly products.

0 Products those are originally grown, 0 Products those are recyclable, reusable and biodegra-dable, 0 Products with natural ingredients,

Green marketing was given prominence in the late 1980s and 1990s after the proceedings of the first workshop on 0 Products Ecological marketing held in containing Austin, Texas (US), in 1975. recycled contents, Several books on green non-toxic marketing began to be published chemical, thereafter. According to the Joel 0 Products contents makeover (a writer, speaker and under approved strategist on clean technology chemical, and green marketing), green 0 Products that do marketing faces a lot of not harm or pollute challenges because of lack of the environment, standards and public consensus 0 Products that will to what constitutes "Green". The not be tested on green marketing has evolved animals, over a period of time. According 0 Products that to Peattie (2001), the evolution of have eco-friendly green marketing has three packaging i.e. phases. First phase was termed reusable, refillable as "Ecological" green marketing, containers etc. and during this period all marketing activities wereNEED OF GREEN concerned to help environmentMARKETING : problems and provide remediesAN ANTHROPOLOGICAL for environmental problems.VIEW Second phase was Issues like Global warming and "Environmental" green marketingdepletion of ozone umbrella are and the focus shifted on cleanthe main for the healthy survival. technology that involvedEvery person rich or poor would designing of innovative newbe interested in quality life with products, which take care offull of health and vigor and so pollution and waste issues. Thirdwould the corporate class. phase was "Sustainable" greenFinancial gain and economic marketing. It came intoprofit is the main aim of any prominence in the late 1990scorporate business. But harm to environment cost by sustain and early 2000. business across the globe is realized now though off late. GREEN PRODUCTS AND This sense is building corporate ITS CHARACTERISTICS citizenship in the business class. The products those areSo green

manufactured through green technology and that caused no environmental hazards are called green products.

living lifestyles such as yoga and natural food consumption. In marketing by the business those aspects the consumer is class is still in the selfish already aware and will be anthological perspective of inclined to accept the green long term sustainable products.

business and to please the consumer and obtain thePatience and license by the governingPerseverance body. Industries in Asian The investors and corporate countries are catching the need to view the environment need of green marketing as a major long-term from the developed investment opportunity, the countries but still there is a wide gap between theirmarketers need to look at the understanding andlong-term benefits from this new green movement. It will implementation.

require a lot of patience and CHALLENGES IN GREEN no immediate results. Since it is a new concept and idea, it MARKETING will have its own acceptance Need for Standardization period.

It is found that only 5% of the marketing messagesAvoiding Green Myopia from Green campaigns areThe first rule of green entirely true and there is amarketing is focusing on lack of standardization tocustomer benefits i.e. the authenticate these claims.primary reason why There is no standardizationconsumers buy certain to authenticate these claims.products in the first place. Do There is no standardizationthis right, and motivate currently in place to certify aconsumers to switch brands product as organic. Unless or even pay a premium for the some regulatory bodies aregreener alternative. It is not involved in providing thegoing to help if a product is certifications there will not bedeveloped which is absolutely any verifiable means. Agreen in various aspects but standard quality controldoes not pass the customer board needs to be in placesatisfaction criteria. This will for such labeling andlead to green myopia. Also if licensing. the green products are priced

New Concept

Indian literate and urban consumer is getting more awareGOLDEN RULES OF about the merits of GreenGREEN MARKETING products. But it is still a new 1. Know you're concept for the masses. The Customer : Make consumer needs to be educated sure that the and made aware of the consumer is aware of environmental threats. The new and concerned about green movements need to reach the issues that your the masses and that will take a product attempts to lot of time and effort. By India's address, (Whirlpool ayurvedic heritage, Indian learned the hard way consumers do appreciate the that consumers importance of using natural and wouldn't pay a herbal beauty products. Indian premium for a CFCconsumer is exposed to healthy free

very high then again it will lose its market acceptability.

10

Journal of Engineering, Science and Management Education charging a premium for your product-and refrigerator because many consumers dint know environmentally what CFCs were.). preferable products 2. Educating your cost more due to customers: isn't just economies of scale a matter of letting and use of higherpeople know you're quality ingredientsdoing whatever make sure those you're doing to consumers can protect the afford the premium environment, but and feel it's worth it. also a matter of 6. Giving your letting them know customers an why it matters. opportunity to Otherwise, for a participate: means significant portion of personalizing the your target market, benefits of your it's a case of "So environ-mentally what?" and your friendly actions, green marketing normally through campaign goes letting the customer nowhere.
take part in positive

3.

Being Genuine & environmental action. Transparent: 7. Thus leading means that a) you brands should are actually doing recognize that what you claim to consumer be doing in your expectations green marketing have changed:It campaign and b) is not enough for the rest of your a company to business policies green its are consistent with products; whatever you are consumers expect doing that's the products that environmentally they purchase friendly. Both these pocket friendly conditions have to and also to help be met for your reduce the business to environmental establish the kind impact in their of environmental own lives too. credentials that will allow a greenGREEN MARKETING ADOPTS BY THE marketing campaign toFARMS succeed. Green marketing has been

4.

Tuna manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins.

Reassure thewidely adopted by the firms worldwide and the Buyer: Consumers mustfollowing are the possible reasons cited for this wide be made to adoption: believe that the product performs 1. Opportunities - As the job it's demand changes, supposed to domany firms see they won't forego these changes as product quality in an opportunity to the name of the exploit and have a environment.
Consider Pricing: If Your you're

5.

competitive advantage

over

firms marketing nonenvironmentally responsible alternatives. Some examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs are:

Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products.
2. Government Pressure - As with all marketing related activities, governments want to "protect" consumer and

0 McDon ald's replac ed its clam shell packag ing with waxed paper becaus e of increas ed consu mer concer n relatin g to polysty rene produc tion and Ozone depleti on.

society; this protection has significant green marketing implications. Government regulations relating to environmental marketing are designed to protect consumers in several ways, 1. Redu ce produ ction of harmf ul goods or byprodu cts Modif y consu mer and indust ry's use and/o r consu mptio n of harmf ul goods Ensur e that all types of consu mers have the

2.

ability to evalu ate the enviro nment al comp osition of goods . Gover nment establi sh regula tions desig ned to contro l the amou nt of hazar dous waste s produ ced by firms.
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 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.

An example of a firm that does not promote its environmental initiative 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.

11

Journal of Engineering, Science and Management Education

6.
5. Cost of Profit Issues - Firms 7. may also use green marketing in an attempt toMany companies are address cost or profitadopting green for related issues. Disposing ofcapturing market environmentally harmful by-opportunity of green products, such asmarketing some cases polychlorinated biphenyl (PCB) contaminated oil areEXAMPLE 1 : Best Green IT Project: State Bank of becoming increasingly India: Green IT@SBI costly and in some cases difficult. Therefore firms thatBy using eco and power can reduce harmful wastesfriendly equipment in its may incur substantial cost10,000 new ATMs, the savings. When attemptingbanking giant has not only saved power costs and to minimize waste, firms are earned carbon credits, but often forced to re-examine also set the right example their production processes. for others to follow. In these cases they often develop more effectiveSBI is also entered into green production processes thatservice known as Green not only reduce waste, butChannel Counter. SBI is reduce the need for someproviding many services like; raw materials. This servespaper less banking, no deposit as a double cost savings,slip, no withdrawal form, no since both waste and rawchecks, no money transactions material are reduced. Inform all these transaction are other cases firms attempt todone through SBI shopping & find end - of - pipe solutions,ATM cards. State Bank of India instead of minimizing waste.turns to wind energy to reduce In these situations firms tryemissions: The State Bank of to find markets or uses forIndia became the first Indian their waste materials, wherebank to harness wind energy one firm's waste becomesthrough a 15-megawatt wind another firm's input offarm developed by Suzlon production. One AustralianEnergy. The wind farm located example of this is a firmin Coimbatore uses 10 Suzlon who produces acidic wastewind water as a by-product of production and sells it to a firm involved in neutralizing base materials.

Canada China

SOME CASES
Interestingly, green marketing continues to be an issue of global interest. In fact, Google Trends reports5 that, on a relative basis, more searches for green marketing originated from India than from any other country.

Rank 1. 2. 3. 4. 5.

Country

that time.
turbines, each with a capacity of 1.5 MW. The wind farm is spread across three states Tamil Nadu, with 4.5 MW of wind capacity; Maharashtra, with 9 MW; and Gujarat, with 1.5 MW. The wind project is the first step in the State Bank of India's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients.

0 Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries; ongoing projects account for a further Rs. 5,000 crore. 0 Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units are coming up at three more refineries.
0 Diesel quality improvement facilities in place at all seven Indian Oil refineries, several more green fuel projects are under implementation or on the anvil.

EXAMPLE 2 : Lead Free Paints from Kansai Nerolac Kansai Nerolac Paints Ltd. has always been committed to the welfare of society and environment and as a responsible corporate has always taken initiatives in the areas of health, education, community development and environment preservation.

Kansai Nerolac has worked on removing hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can 0 The Centre has been certified have adverse effects on under ISOhumans. Lead in paints 14000:1996 for especially poses danger to environment human health where it can management cause damage to Central systems. Nervous System, kidney and reproductive system. Children GREEN FUEL are more prone to leadALTERNATIVES poisoning leading to lower In the country's pursuit of intelligence levels andalternative sources of memory loss. energy, Indian Oil is

0 The R&D Centre of Indian Oil is engaged in the formulations of eco-friendly biodegradable lube formulations.

focusing on CNG EXAMPLE 3 : Indian Oil's (compressed natural gas), Green Agenda Auto gas (LPG), ethanol blended petrol, bio-diesel, Green Initiatives and Hydrogen energy. 0 Indian Oil is fully geared to meetEXAMPLE 4 : India's 1st the target ofGreen Stadium reaching EURO-IIIThe Thyagaraja Stadium compliant fuels tostands tall in the quiet all parts of theresidential colony behind the country by theCapital's famous INA year 2010; majorMarket. It was jointly cities will upgradededicated by Union Sports to Euro-IVMinister MS Gill and Chief compliant fuels byMinister Sheila Dikshit on
Friday.

12

Journal of Engineering, Science and Management Education

and government vehicles.CNG will also be Dikshit said that the stadium is available to those now using going to be the first green electricity, petrol and diesel stadium in India, which has to run various machineries.
taken a series of steps to ensure energy conservation and thisTNGCL chairman Pabitra stadium has been constructed asKar told reporters. He said: per the green building conceptThe company will soon with eco-friendly materials. provide PNG connections

EXAMPLE 5: Eco-friendly to 10,000 new domestic Rickshaws before CWG consumers in the city and outskirts. Agartala will be Chief minister Shiela Dikshitthe first city in India within launched on Tuesday athe next three years to battery-operated rickshaw, E-become a green city.

rick, sponsored by a cellular services provider, to promoteEXAMPLE 8 : Going eco-friendly transportation inGreen: Tata's new the city ahead of themantra Commonwealth Games. The ideal global benchmark
though is 1.5. Tata Motors is setting up an eco-friendly showroom using natural building Wipro can do for you in your material for its flooring and quest for a sustainable energy efficient lights. Tata tomorrow - reduce costs, Motors said the project is at a reduce your carbon footprints and become more efficient -preliminary stage. The Indian all while saving theHotels Company, which runs the Taj chain, is in the process of environment. creating eco rooms which will Wipro's Green Machines have energy-efficient mini bars, (In India Only) organic bed linen and napkins Wipro Infotech was India's firstmade from recycled paper. But company to launchthere won't be any carpets since environment friendly computerchemicals are used to clean peripherals. For the Indianthose. And when it comes to market, Wipro has launched aillumination, the rooms will have new range of desktops andCFLs or LEDs. About 5% of the laptops called Wiprototal rooms at a Taj hotel would Greenware. These productssport a chic eco-room design. are RoHS (Restriction ofOne of the most interesting Hazardous Substances)innovations has come in the compliant thus reducing e-form of a biogas-based power waste in the environment. plant at Taj Green Cove in EXAMPLE 7 : Agartala to Kovalam, which uses the waste be India's first Green City generated at the hotel to meet its cooking requirements. Tripura Sunday announcedAnother eco-friendly consumer plans to make all publicproduct that is

EXAMPLE 6 : Wipro Green It.

and private vehicles in Agartala run on compressed natural gas (CNG) by 2013, thus making the capital India's first green city.

Tripura Natural Gas Co Ltd (TNGCL), a joint venture of the Gas Authority of India Ltd (GAIL) and the Tripura and Assam governments, has undertaken a project to supply CNG to all private

policy which protects the in the works is Indica EV, aninterests of the consumers. electric car that will run onIt does so in following ways:
polymer lithium ion batteries. Reduce production of Tata Motors plans to introduce harmful goods or by the Indica EV in select products European markets this year.

PRESENT TRENDS IN Modify consumer and GREEN industry's use MARKETING IN INDIA and /or consumption of harmful goods; or Organizations are Perceive
Environmental marketing 0 Ensure that all as an Opportunity to types of achieve its objectives. consumers have Firms have realized that the ability to consumers prefer products evaluate the that do not harm the environmental natural environment as composition of also the human health. goods. Firms marketing such green products areCompetitors' preferred over the othersEnvironmental Activities Firms to not doing so and thusPressure change their develop a competitive advantage, simultaneouslyEnvironmental Marketing meeting their businessActivities. In order to get even with competitors objectives.
Organizations believe theyenvironmentally friendly, have a moral obligation tofirms change over to be more sociallygreen marketing. Result responsible. This is inis green marketing keeping with the philosophypercolates entire of CSR which has beenindustry. successfully adopted by many business houses toCost Factors Associated improve their corporateWith Waste Disposal or in Material image. Firms in this situationReductions can take two approaches: Usage Forces Firms to Modify their Behavior. With Use the fact that they cost cutting becoming part are environmentally of the strategy of the firms it responsible as a adopts green marketing in relation to these activities. It marketing tool. may pursue these as Become responsible without prompting this fact. follows: Governmental Bodies are forcing Firms to Become More Responsible. In most cases the government forces the firm to adopt

claim

to

being

0 A Firm develops a technology for reducing waste and sells it to other firms.

13

PDF to Word