You are on page 1of 65

Chapter I: ABSTRACT:'I'll go out for a breath of fresh air' is an often-heard phrase.

But how many of us realize that this has become irrelevant in today's world, because the quality of air in our cities is anything but fresh. 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 co-brand their products into separate line, lauding the green-friendliness 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 topic 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 topic identifies the three particular segments of green consumers and explores the challenges and opportunities businesses have with green marketing. It 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.

Chapter II: LITERATURE REVIEW:Cateora Graham, in International Marketing, has drawn a parallel line between green marketing and product development. The author has cited a variety of examples where the importance of green marketing has been laid focus on. Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities. It very evident from the authors research and examples the packaging and solid waste rules are burdensome but there are successful cases of not only meeting local standards but also being able to transfer this approach to other markets. Philip Kotler and Kevin Lane Keller in Marketing Management has initiated the topic by discussing about the relevance of green marketing in the past few decades and has also discussed the explosion of environmentally friendly products. However, according to the author from the branding perspective green marketing programs have not been very successful. Marketers tried and failed with green sales pitches over the last decade because of certain obstacles which the movement encountered. The consumer behaviour is such that most consumers appear unwillingly to give up the benefits of other alternatives to choose green products. Along with definitions from different sources, the authors Debraj Dutta and Mahua Dutta, of Marketing Management, have given an explanation of what is green marketing. According to the authors green marketing incorporates a broad range of activities including the modification of product, production process and packaging. The authors have also discussed a few literature sources that have focused on green marketing and its relevance in todays era. It was evident that the possible reasons because of which organizations engage in green marketing. K.K.Shrivastava & Sujata Khandai, the author of Consumer Behaviour in Indian Context, has discussed green marketing legislation in association with the multinational corporations. These face a growing variety of legislation designed to address environmental issues. Global concern for the environment extends beyond industrial pollution, hazardous waste disposal and rampant deforestation to include issues that focus directly on consumer products.

Kenneth E. Clow & Donald Baack the authors of Integrated Advertising, Promotion and Marketing Communication. According to the authors the marketers need to be aware of the threats and opportunities associate with four trends in the natural environment namely shortage of raw materials, increased cost of energy, increased pollution levels and the changing roles of government. New regulations hit certain industries very hard and also that consumers often appear conflicted about the natural environment. Jacquelyn A. Ottman the author of Green Marketing: Opportunity for Innovation, has explained green marketing from an organizational standpoint, environmental considerations should be integrated into all aspects of marketing new product development and communications and all points in between. According to the author environment should be balanced with primary customer needs. 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. The lack of consensus by consumers, marketers, activists, regulators, and influential people has slowed the growth of green products. Prof. Sanjit Kumar Dash author of Green Marketing: Opportunities & Challenges has mentioned that all activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment. The evolution of green marketing involves (three phases) from this article. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s and early 2000.

Chapter III: INTRODUCTION TO GREEN MARKETING:The moment you step out of the house and are on the road you can actually see the air getting polluted; a cloud of smoke from the exhaust of a bus, car, or a scooter; smoke billowing from a factory chimney, fly ash generated by thermal power plants, and speeding cars causing dust to rise from the roads. Natural phenomena such as the eruption of a volcano and even someone smoking a cigarette can also cause air pollution. Air pollution is aggravated because of four developments: increasing traffic, growing cities, rapid economic development, and industrialization. The Industrial Revolution in Europe in the 19th century saw the beginning of air pollution as we know it today, which has gradually become a global problem. Air pollution is nothing new. Ever since the discovery of fire, less-than-desirable substances have been vented into the air. Every Govt. is trying to minimize this problem. But regardless of the efforts, air pollution continues to be a serious local and world-wide problem. Although environmental issues influence all human activities, few academic disciplines have integrated green issues into their literature. This is especially true of marketing. As society becomes more concerned with the natural environment, businesses have begun to modify their behaviour in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. The promotion of environmentally safe/ beneficial products, green marketing began in Europe in the early 1980s when specific products were identified as being harmful to the earths atmosphere. As the result new green products were introduced that were less damaging to the environment. The concept caught on in the United States and has been gaining steadily ever since.

Green marketing is also known as environmental marketing or sustainable marketing. Divergent aspect of green marketing includes ecologically safer products, recyclable and biodegradable packaging, energy efficient operations and better pollution controls. Advances produced from green marketing include packaging made from recycle paper, phosphate-free detergents, refillable containers for cleaning products and bottle using less plastic. As todays consumer become more and more conscious of natural products, businesses are beginning to modify their own thoughts and behaviour in an attempt to address the concerns of consumers. Green marketing is becoming more important to businesses because of consumers genuine concerns about our limited resources on the earth. By implementing green marketing measures in order to save the earths resources in productions, packaging and operations, businesses are showing consumers that they too share the same concern about environment, boosting their credibility. Government has also taken certain initiatives by making regulations relating to green marketing in order to protect the environment. WHAT IS GREEN MARKETING? Many people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. Generally terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. In general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as "ecotourism" facilities, i.e., facilities that specialize in experiencing nature or operating in a fashion that minimizes their environmental impact.

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. It is the process of selling products and 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. Green marketing involves developing and promoting products and services that satisfy customers want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental impact on the environment. 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. According to Pride and Ferrell, Green Marketing alternatively known as environmental marketing refers to an organization efforts at designing, promoting, pricing and distributing products that will not harm the environment According to Polonsky ,Green marketing is defined as "Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. This definition incorporates much of the traditional components of the marketing definition, that is "All activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants" Therefore it ensures that the interests of the organization and all its consumers are protected, as voluntary exchange will not take place unless both the buyer and seller mutually benefit.

Chapter IV: HISTORY OF GREEN 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 1) 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. 2) 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. 3) Two tangible milestones for wave 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.

Chapter V: A-Z OF GREEN MARKETING: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. MARKETING MIX OF GREEN MARKETING

1) GREEN PRODUCT The products have to be developed depending on the needs of the customers who prefer environment friendly products. Products can be made from recycled materials or from used goods. Efficient products not only save water, energy and money, but also reduce harmful effects on the environment. Green chemistry forms the growing focus of product development. The marketer's role in product management includes providing product designers with market-driven trends and customer requests for green product attributes such as energy saving, organic, green chemicals, local sourcing, etc., For example, Nike is the first among the shoe companies to market itself as green. It is marketing its Air Jordan shoes as environment-friendly, as it has significantly reduced the usage of harmful glue adhesives. It has designed this variety of shoes to emphasize that it has reduced wastage and used environmentfriendly materials. 2) GREEN PRICE Green pricing takes into consideration the people, planet and profit in a way that takes care of the health of employees and communities and ensures efficient productivity. Value can be added to it by changing its appearance, functionality and through customization, etc. Wal-Mart unveiled its first recyclable cloth shopping bag. IKEA started charging consumers when they opted for plastic bags and encouraged people to shop using its "Big Blue Bag". 3) GREEN PLACE Green place is about managing logistics to cut down on transportation emissions, thereby in effect aiming at reducing the carbon footprint. For example, instead of marketing an imported mango juice in India it can be licensed for local production. This avoids shipping of the product from far away, thus reducing shipping cost and more importantly, the consequent carbon emission by the ships and other modes of transport.

4) GREEN PROMOTION Green promotion involves configuring the tools of promotion, such as advertising, marketing materials, signage, white papers, web sites, videos and presentations by keeping people, planet and profits in mind. British petroleum (BP) displays gas station which its sunflower motif and boasts of putting money into solar power. Indian Tobacco Company has introduced environmental-friendly papers and boards, which are free of elemental chlorine. Toyota is trying to push gas/electric hybrid technology into much of its product line. It is also making the single largest R&D investment in the every-elusive hydrogen car and promoting itself as the first eco-friendly car company. International business machines Corporation (IBM) has revealed a portfolio of green retail store technologies and services to help retailers improve energy efficiency in their IT operations. The centre piece of this portfolio is the IBM SurePOS 700, a point-of-sale system that, according to IBM, reduces power consumption by 36% or more. We even see the names of retail outlets like "Reliance Fresh", Fresh@Namdhari Fresh and Desi, which while selling fresh vegetables and fruits, transmit an innate communication of green marketing. Additional Social Marketing "P's" that are used in this process are as followed: 5) GREEN PUBLIC Effective Social Marketing knows its audience, and can appeal to multiple groups of people. "Public" is the external and internal groups involved in the program. External publics include the target audience, secondary audiences, policymakers, and gatekeepers, while the internal publics are those who are involved in some way with either approval or implementation of the program. 6) GREEN PARTNERSHIP Most social change issues, including "green" initiatives, are too complex for one person or group to handle. Associating with other groups and initiatives to team up strengthens the chance of efficacy.

10

11

A GREEN MARKET IN NEWCASTLE

A GREEN MARKET IN NEWYORK

12

WHAT ARE GREEN PRODUCTS OR ENVIRONMENTAL PRODUCTS Although no consumer product has a zero impact on the environment, in business, the terms green product and environmental product are used commonly to describe those that strive to protect or enhance the natural environment by conserving energy and/or resources and reducing or eliminating use of toxic agents, pollution, and waste. Greener, more sustainable products need to dramatically increase the productivity of natural resources, follow biological/ cyclical production models, encourage dematerialization, and reinvest in and contribute to the planets natural capital. Escalating energy prices, concerns over foreign oil dependency, and calls for energy conservation are creating business opportunities for energyefficient products, clean energy, and other environmentally sensitive innovations and products.

ONE OF THE MOST COMMONLY USED GREEN PRODUCTS THE PHILIPS CFL
13

GREEN MARKETING: A CORPORATE INITIATIVE It is important in todays world because mankind has limited resources on the earth and if we want long term sustainability of human life on this earths surface, then companies has to learn to conserve these scarce natural resources and create products that have less environmental damage. Otherwise the very existence of humankind will be under question mark. Corporate are going green from the grassroots level to sustain and win the customers expectations. The environment is becoming increasingly important part of the corporate reputations and they are actively participating in greening the corporate strategy. Companies have converted almost all the products to make them eco-friendly products. Following are the recent environment friendly initiatives taken by the companies.

Sony: Green ODO Line Products

14

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: 1. Spin N Snap: The spin and snap is a digital camera. It has two holes which are used as viewfinder and chargers. On spinning the camera on ones fingers generates kinetic energy and charges the device. 2. Push Power Play: Push power play is a display device with a roller on the base. The rollers are used to charge the device by the friction of the device with hard surface. 3. 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.

15

IFC: Green Mutual Fun for Asia


The European countries are innovative new supports for actively involving the Asian countries in green movement. Green Movement in Asian countries is growing at slow pace as compare to other European and American countries. To support the environment in Asian countries, IFC (International Finance Corporation), a member of the World Bank, has recently announced a first investment plan of 15 million for third party environment focused private equity fund. Along with the IFC, Swedish government risk capital company Swedfund and French development company Prooarco will also invest euro 8 million and euro 5 million respectively in the same fund. The fund will be managed by Aloe Private Equity. The funds will support the companies in India and China which will focus on clean and renewable energy, waste recycling, emissions controls, and eco-processes.

Maruti Suzuki
The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly. The company credited the 'Just-in-Time' philosophy adopted and internalized by the employees as the prime reason that helped to excel in this direction. The company has been promoting 3R since its inception. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption. The company has implemented rain water harvesting to recharge the aquifers. Also, recyclable packing for bought out components is being actively promoted. The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. Regular training programs are conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more guidance. The systems and the environmental performance of suppliers are audited. The green co-efficient of this system is much better than the conventional system

16

The Countrys largest car manufacturer had managed to slash energy consumption per car at its Gurgaon factory by 26 per cent over the past six years, while its carbon dioxide (CO2) emissions during car manufacturing processes has come down 39 per cent in the past five years. The model with gas as fuel was adopted by Maruti Suzuki India Limited as their Green Marketing practices.

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 Auto gas 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.

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. It has promised to cut energy consumption by 20 percent by 2010.

Proctor & Gamble


Laundry detergents are also touting energy savings. Proctor & Gambles (P&G) newest market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About 80 to 85 percent of the energy used to wash clothes from heating water. Working with utility companies, P and G found that consumers could save energy and resources by using cold rather than warm water. As energy and resource prices continue to soar, opportunities for products offering efficiency and savings are destined for market growth.

17

ITC ITC has been 'Carbon Positive for three years in a row sequestering/storing twice the amount of CO2 than the Company emits. It has been 'Water Positive' six years in a row creating three times more Rainwater Harvesting potential than ITC's net consumption. It has obtained close to 100% solid waste recycling. All Environment, Health and Safety Management Systems in ITC conform to the best international standards. ITC's businesses generate livelihoods for over 5 million people. ITC's globally recognized e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas. ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programs.

WHY IS GREEN MARKETING IMPORTANT ?


The question of why green marketing has increased in importance is quite simple and relies on the basic definition of Economics: Economics is the study of how people use their limited resources to try to satisfy unlimited wants. Thus mankind has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. 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.

18

WHY ARE FIRMS USING GREEN MARKETING?


When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: 1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives; 2. Organizations believe they have a moral obligation to be more socially responsible; 3. Governmental bodies are forcing firms to become more responsible; 4. Competitors' environmental activities pressure firms to change their environmental marketing activities; and 5. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behaviour.

DELHIS FAMOUS CNG AUTORICKSHAW


19

OPPORTUNITIES It appears that all types of consumers, both individual and industrial are becoming more concerned and aware about the natural environment. In a 1992 study of 16 countries, more than 50% of consumers in each country, other than Singapore, indicated they were concerned about the environment. A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment. A further 80% of this sample indicated that they had modified their behaviour, including their purchasing behaviour, due to environmental reasons. As demands change, many firms see these changes as an opportunity to be exploited. Given these figures, it can be assumed that firms marketing goods with environmental characteristics will have a competitive advantage over firms marketing non-environmentally responsible alternatives. There are numerous examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs. 1) McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. 2) Tuna manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins. 3) Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. This is not to imply that all firms who have undertaken environmental marketing activities actually improve their behaviour. In some cases firms have misled consumers in an attempt to gain market share. In other cases firms have jumped on the green bandwagon without considering the accuracy of their behaviour, their claims, or the effectiveness of their products.

20

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. Firms in this situation can take two perspectives; 1) They can use the fact that they are environmentally responsible as a marketing tool; or 2) They can become responsible without promoting this fact. 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.

SOME COMPANIES THAT USE GREEN MARKETING AS SOCIAL RESPONSIBILITY

21

THE 3Cs OF MATKETING GREEN PRODUCTS


The analysis of past research and marketing strategies finds that successful green products have avoided green marketing myopia by following three important principles: The Three Cs of consumer value positioning, calibration of consumer knowledge, and credibility of product claims. 1) Consumer Value Positioning The marketing of successfully established green products showcases non-green consumer value, and there are at least five desirable benefits commonly associated with green products: 1.1. Efficiency and cost effectiveness; 1.2. Health and safety; 1.3. Performance; 1.4. Symbolism and status; and 1.5. Convenience. Additionally, when these five consumer value propositions are not inherent in the green product, successful green marketing programs bundle (that is, add to the product design or market offering) desirable consumer value to broaden the green products appeal. In practice, the implication is that product designers and marketers need to align environmental products consumer value (such as money savings) to relevant consumer market segments (for example, cost conscious consumers). 1.1 Efficiency and Cost Effectiveness The common inherent benefit of many green products is their potential energy and resource efficiency. Given sky-rocketing energy prices and tax incentives for fuelefficient cars and energy saving home improvements and appliances, long-term savings have convinced cost-conscious consumers to buy green.

22

Recently, the home appliance industry made great strides in developing energy efficient products to achieve EPAs Energy Star rating. For example, Energy Star refrigerators use at least 15 percent less energy and dishwashers use at least percent less energy than do traditional models. Consequently, an Energy Star product often commands a price premium. Whirlpools popular Duet frontloading washer and dryer, for example, cost more than $2,000, about double the price of conventional units; however, the washers can save up to 12,000 gallons of water and $110 on electricity annually compared to standard models (Energy Star does not rate dryers). Laundry detergents are also touting energy savings. Procter & Gambles (P&G) newest market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About 80 to 85 percent of the energy used to wash clothes comes from heating water. Working with utility companies, P&G found that consumers could save an average of $63 per year by using cold rather than warm water. Adopting Tide Coldwater gives added confidence to consumers already washing in cold water. As energy and resource prices continue to soar, opportunities for products offering efficiency and savings are destined for market growth. 1.2 Health and Safety Concerns over exposure to toxic chemicals, hormones, or drugs in everyday products have made health and safety important choice considerations, especially among vulnerable consumers, such as pregnant women, children, and the elderly. Because most environmental products are grown or designed to minimize or eliminate the use of toxic agents and adulterating processes, market positioning on consumer safety and health can achieve broad appeal among health-conscious consumers. Sales of organic foods, for example, have grown considerably in the wake of public fear over mad cow disease; antibiotic- laced meats, mercury in fish, and genetically modified foods. Mainstream appeal of organics is not derived from marketers promoting the advantages of free-range animal ranching and pesticide free soil. Rather, market positioning of organics as flavourful, healthy alternatives to factory-farm foods has convinced consumers to pay a premium for them.

23

1.3 Performance The conventional wisdom is that green products dont work as well as nongreen ones. This is a legacy from the first generation of environmentally sensitive products that clearly were inferior. Consumer perception of green cleaning agents introduced in health food stores in the 1960s and 1970s, for example, was that they cost twice as much to remove half the grime. Today, however, many green products are designed to perform better than conventional ones and can command a price premium. For example, in addition to energy efficiency, front-loading washers clean better and are gentler on clothes compared to conventional toploading machines because they spin clothes in a motion similar to clothes driers and use centrifugal force to pull dirt and water away from clothes. By contrast, most top-loading washers use agitators to pull clothes through tanks of water, reducing cleaning and increasing wear on clothes. Consequently, the efficiency and high performance benefits of top-loading washers justify their premium prices. Homeowners commonly build decks with cedar, redwood, or pressure-treated pine (which historically was treated with toxic agents such as arsenic). Wood requires stain or paint and periodic applications of chemical preservatives for maintenance. Increasingly, however, composite deck material made from recycled milk jugs and wood fibre, such as Weyerhaeusers ChoiceDek, is marketed as the smarter alternative. Composites are attractive, durable, and low maintenance. They do not contain toxic chemicals and never need staining or chemical preservatives. Accordingly, they command a price premium as much as two to three times the cost of pressure-treated pine and 15 percent more than cedar or redwood. In sum, high performance positioning can broaden green product appeal. 1.4 Symbolism and Status As mentioned earlier, the Prius, Toyotas gas-electric hybrid, has come to epitomize green chic. According to many automobile analysts, the cool-kid cachet that comes with being an early adopter of the quirky-looking hybrid vehicle trend continues to partly motivate sales. Establishing a green chic appeal, however, isnt easy. According to popular culture experts, green marketing must appear grass-roots

24

driven and humorous without sounding preachy. To appeal to young people, conservation and green consumption need the unsolicited endorsement of high-profile celebrities and connection to cool technology. Prius has capitalized on its evangelical following and high-tech image with some satirical ads, including a television commercial comparing the hybrid with Neil Armstrongs moon landing (Thats one small step on the accelerator, one giant leap for mankind) and product placements in popular Hollywood films and sitcoms (such as Curb Your Enthusiasm). More automobile analysts, the cool-kid cachet that comes with being an early adopter of the quirky-looking hybrid vehicle trend continues to partly motivate sales.

THE GREEN CHIC SYMBOL


25

In business, where office furniture symbolizes the cachet of corporate image and status, the ergonomically designed Think chair is marketed as the chair with a brain and a conscience. Produced by Steelcase, the worlds largest office furniture manufacturer, the Think chair embodies the latest in cradle to cradle (C2C) design and manufacturing. C2C, which describes products that can be ultimately returned to technical or biological nutrients, encourages industrial designers to create products free of harmful agents and processes that can be recycled easily into new products (such as metals and plastics) or safely returned to the earth (such as plant-based materials). Made without any known carcinogens, the Think chair is 99 percent recyclable; it disassembles with basic hand tools in about five minutes, and parts are stamped with icons showing recycling options. Leveraging its awardwinning design and sleek comfort, the Think chair is positioned as symbolizing the smart, socially responsible office. In sum, green products can be positioned as status symbols. 1.5 Convenience Many energy-efficient products offer inherent convenience benefits that can be showcased for competitive advantage. CFL bulbs, for example, need infrequent replacement and gas-electric hybrid cars require fewer refuelling stopsbenefits that are highlighted in their marketing communications. Another efficient alternative to incandescent bulbs are light emitting diodes (LEDs): They are even more efficient and longer-lasting than CFL bulbs; emit a clearer, brighter light; and are virtually unbreakable even in cold and hot weather. LEDs are used in traffic lights due to their high-performance convenience. To encourage hybrid vehicle adoption, some states and cities are granting their drivers the convenience of free parking and solo-occupant access to HOV lanes. A Toyota spokesperson recently told the Los Angeles Times, Many customers are telling us the carpool lane is the main reason for buying now. Toyota highlights the carpool benefit on its Prius Web site, and convenience has become an incentive to drive efficient hybrid cars in traffic- congested states like California and Virginia. Critics have charged, however, that such incentives clog carpool lanes and reinforce a one car, one person lifestyle over alternative transportation. In response, the

26

Virginia legislature has more recently enacted curbs on hybrid drivers use of HOV lanes during peak hours, requiring three or more people per vehicle, except for those that have been grandfathered in. Solar power was once used only for supplying electricity in remote areas (for example, while camping in the wilderness or boating or in homes situated off the power grid). That convenience, however, is being exploited for other applications. In landscaping, for example, self-contained solar-powered outdoor evening lights that recharge automatically during the day eliminate the need for electrical hook-ups and offer flexibility for reconfiguration. With societys increasing mobility and reliance on electronics, solar powers convenience is also manifest in solar-powered calculators, wrist watches, and other gadgets, eliminating worries over dying batteries. 1.6 Bundling Some green products do not offer any of the inherent five consumer desired benefits noted above. This was the case when energy-efficient and CFC-free refrigerators were introduced in China in the 1990s. While Chinese consumers preferred and were willing to pay about 15 percent more for refrigerators that were energy efficient, they did not connect the environmental advantage of CFC-free with either energy efficiency or savings. Consequently, the CFC-free feature had little impact on purchase decisions. To encourage demand, the CFC-free feature was bundled with attributes desired by Chinese consumers, which included energy efficiency, savings, brand/quality, and outstanding after-sales service. Given consumer demand for convenience, incorporating time-saving or ease-of- use features into green products can further expand their mainstream acceptance. Fords hybrid Escape SUV comes with an optional 110-volt AC power outlet suitable for work, tailgating, or camping. Convenience has also enhanced the appeal of Interfaces recyclable FLOR carpeting, which is marketed as practical, goof-proof, and versatile. FLOR comes in modular square tiles with four peel-and-stick dots on the back for easy installation (and pull up for altering, recycling, or washing with water in the sink). Modularity offers versatility to assemble tiles for a custom look. Interface promotes the idea that its carpet tiles can be changed and reconfigured in

27

minutes to dress up a room for any occasion. The tiles come in pizza-style boxes for storage, and ease of use is FLORs primary consumer appeal. Austin (Texas) Energys Green Choice program has led the US in renewable energy sales for the past three years. In 2006, demand for wind energy outpaced supply so that the utility resorted to selecting new Green Choice subscribers by lottery. While most utilities find it challenging to sell green electricity at a premium price on its environmental merit, Austin Energys success comes from bundling three benefits that appeal to commercial power users: First, Green Choice customers are recognized in broadcast media for their corporate responsibility; second, the green power is marketed as home grown, appealing to Texan loyalties; and third, the program offers a fixed price that is locked in for 10 years. Because wind powers cost is derived primarily from the construction of wind farms and is not subject to volatile fossil fuel costs, Austin Energy passes its inherent price stability onto its Green Choice customers. Thus, companies participating in Green Choice enjoy the predictability of their future energy costs in an otherwise volatile energy market. The analysis suggests that successful green marketing programs have broadened the consumer appeal of green products by convincing consumers of their nongreen consumer value. The lesson for crafting effective green marketing strategies is that planners need to identify the inherent consumer value of green product attributes (for example, energy efficiencys inherent long-term money savings) or bundle desired consumer value into green products (such as fixed pricing of wind power) and to draw marketing attention to this consumer value. 2. Calibration of Consumer Knowledge Many of the successful green products in the analysis described here employ compelling, educational marketing messages and slogans that connect green product attributes with desired consumer value. That is, the marketing programs successfully calibrated consumer knowledge to recognize the green products consumer benefits. In many instances, the environmental benefit was positioned as secondary, if mentioned at all. Changes made in EPAs Energy Star logo provide an example, illustrating the programs improved message calibration over the years.
28

One of Energy Stars early marketing messages, EPA Pollution Preventer, was not only ambiguous but myopically focused on pollution rather than a more mainstream consumer benefit. A later promotional message, Saving The Earth. Saving Your Money. better associated energy efficiency with consumer value, and one of its more recent slogans, Money Isnt All Youre Saving, touts economic savings as the chief benefit. This newest slogan also encourages consumers to think implicitly about what else they are savingthe logos illustration of the Earth suggests the answer, educating consumers that saving the Earth can also meet consumer self-interest. The connection between environmental benefit and consumer value is evident in Earthbound Farm Organics slogan, Delicious produce is our business, but health is our bottom line, which communicates that pesticide-free produce is flavourful and healthy. Likewise, Tide Cold waters Deep Clean. Save Green. slogan not only assures consumers of the detergents cleaning performance, but the term green offers a double meaning, connecting Tides cost saving with its environmental benefit. Citizens solar-powered Eco-Drive watchs slogan, Unstoppable Calibre, communicates the products convenience and performance (that is, the battery will not die) as well as prestige. Some compelling marketing communications educate consumers to recognize green products as solutions for their personal needs and the environment. When introducing its Renewal brand, Rayovac positioned the reusable alkaline batteries as a solution for heavy battery users and the environment with concurrent ads touting How to save $150 on a CD player that costs $100 and How to save 147 batteries from going to landfills. Complementing the money savings and landfill angles, another ad in the campaign featured sports star Michael Jordan proclaiming, More Power. More Music. And More Game Time. to connect Renewal batteries performance to convenience. In practice, the analysis conducted here suggests that advertising that draws attention to how the environmental product benefit can deliver desired personal value can broaden consumer acceptance of green products.

29

3. Credibility of Product Claims Credibility is the foundation of effective green marketing. Green products must meet or exceed consumer expectations by delivering their promised consumer value and providing substantive environmental benefits. Often, consumers dont have the expertise or ability to verify green products environmental and consumer values, creating misperceptions and scepticism. As exemplified in the case of Mobils Hefty photodegradable plastic trash bag described earlier, green marketing that touts a products or a companys environmental credentials can spark the scrutiny of advocacy groups or regulators. For example, although it was approved by the U.S. Food and Drug Administration, sugar substitute Splendas Made from sugar, so it tastes like sugar slogan and claim of being natural have been challenged by the Sugar Association and Generation Green, a health advocacy group, as misleading given that its processing results in a product that is unrecognizable as sugar. 3.1. Third Party Endorsements and Eco-Certifications

30

Expert third parties with respected standards for environmental testing (such as independent laboratories, government agencies, private consultants, or nonprofit advocacy organizations) can provide green product endorsements and/ or seals of approval to help clarify and bolster the believability of product claims. The Energy Star label, discussed earlier, is a common certification that distinguishes certain electronic products as consuming up to 30 percent less energy than comparable alternatives. The U.S. Department of Agricultures USDA Organic certifies the production and handling of organic produce and dairy products. Green Seal and Scientific Certification Systems emblems certify a broad spectrum of green products. Green Seal sets specific criteria for various categories of products, ranging from paints to cleaning agents to hotel properties, and for a fee, companies can have their products evaluated and monitored annually for certification. Green Seal has certified the Hyatt Regency in Washington, DC, for the hotels comprehensive energy and water conservation, recycling programs, and environmental practices. By contrast, Scientific Certification Systems (SCS) certifies specific product claims or provides a detailed eco-profile for a products environmental impact for display on product labels for a broad array of products, from agricultural products to fisheries to construction. Although eco-certifications differentiate products and aid in consumer decision making, they are not without controversy. The science behind eco-seals can appear subjective and/or complex, and critics may take issue with certification criteria. For example, Green Order, a New York-based environmental consulting firm, has devised a scorecard to evaluate clean-tech products marketed in General Electrics Ecomagination initiative, which range from fuel-efficient aircraft engines to wind turbines to water treatment technologies. Only those passing Green Orders criteria are marketed as Ecomagination products, but critics have questioned GEs inclusion of cleaner coal (that is, coal gasification for cleaner burning and sequestration of carbon dioxide emissions) as an Ecomagination product.

31

3.2. Word-of-Mouth Evangelism and the Internet Increasingly, consumers have grown sceptical of commercial messages, and theyre turning to the collective wisdom and experience of their friends and peers about products. Word-of-mouth or buzz is perceived to be very credible, especially as consumers consider and try to comprehend complex product innovations. The Internet, through e-mail and its vast, accessible repository of information, Web sites, search engines, blogs, product ratings sites, podcasts, and other digital platforms, has opened significant opportunities for tapping consumers social and communication networks to diffuse credible word-of-mouth (buzz facilitated by the Internet) about green products. In 2005, Proctor & Gamble partnered with the nonprofit organization, the Alliance to Save Energy (ASE), in a viral marketing campaign to spread news about the money-saving benefits of laundering clothes in cold water with specially formulated Tide Coldwater. ASE provided credibility for the detergent by auditing and backing P&Gs claims that consumers could save an average of $63 a year if they switched from warm to cold water washes. ASE sent email promotions encouraging consumers to visit Tide.com, an interactive Web site and take the Coldwater Challenge by registering to receive a free sample. Visitors could calculate how much money they would save by using the detergent, learn other energy-saving laundry tips, and refer email addresses of their friends to take the challenge as well. Tide.com offered an engaging map of the United States where, over time, visitors could track and watch their personal networks grow across the country when their friends logged onto the site to request a free sample. Given the immediacy of e-mail and the Internet, word-of-mouth is fast becoming an important vehicle for spreading credible news about new products. According to the Pew Internet & American Life Project, 44 percent of online U.S. adults (about 50 million Americans) are content creators, meaning that they contribute to the Internet via blogs, product recommendations, and reviews. To facilitate buzz, however, marketers need to create credible messages, stories, and Web sites about their products that are so compelling, interesting, and/or entertaining that consumers will seek the information out and forward it to their friends and family. The fact that P&G was able to achieve this for a low-involvement product is quite remarkable.
32

STRATEGIES AND ADVANTAGES OF GREEN MARKETING


a. Minimize Direct Environmental Impact b. Use Sustainable Sources of Raw Material c. Source-Reduce Products and Packaging d. Conserve Natural Resources, Habitats, and Endangered Species e. Use Recycled Content f. Make Products Energy Efficient g. Maximize Consumer and Environmental Safety h. Make Products More Durable i. Make Products and Packaging Reusable or Refillable j. Design Products for Remanufacturing, Recycling, and Repair THE SEVEN STRATEGIES OF GREEN MARKETING SUCCESS

33

GREEN MARKETING MYOPIA

Green marketing must satisfy two objectives: improved environmental quality and customer satisfaction. Misjudging either or overemphasizing the former at the expense of the latter can be termed green marketing myopia. In 1960, Harvard business professor Theodore Levitt introduced the concept of marketing myopia in a now-famous and influential article in the Harvard Business Review. In it, he characterized the common pitfall of companies tunnel vision, which focused on managing products (that is, product features, functions, and efficient production) instead of meeting customers needs (that is, adapting to consumer expectations and anticipation of future desires).

34

Levitt warned that a corporate preoccupation on products rather than consumer needs was doomed to failure because consumers select products and new innovations that offer benefits they desire. Research indicates that many green products have failed because of green marketing myopiamarketers myopic focus on their products greenness over the broader expectations of consumers or other market players (such as regulators or activists). AN EXAMPLE OF GREEN MARKETING MYOPIA

PHILIPS MARATHON BULBS In 1994, Philips launched the Earthlight, a super energy-efficient compact fluorescent light (CFL) bulb designed to be an environmentally preferable substitute for the traditional energy-intensive incandescent bulb. The CFLs clumsy shape, however, was incompatible with most conventional lamps, and sales languished. After studying consumer response, Philips reintroduced the product in 2000 under the name Marathon, to emphasize the bulbs five year life. New designs offered the look and versatility of conventional incandescent light bulbs and the promise of more than $20 in energy savings over the products life span compared to incandescent bulbs. The new bulbs were also certified by the U.S. Environmental Protection Agencys (EPA) Energy Star label. Repositioning CFL bulbs features into advantages that resonated with consumer valuesconvenience, ease-of-use, and credible cost savingsultimately sparked an annual sales growth of 12 percent in a mature product market.

35

Philips experience provides a valuable lesson on how to avoid the common pitfall of green marketing myopia. Philips called its original entry Earthlight to communicate the CFL bulbs environmental advantage. While noble, the benefit appealed to only the deepest green niche of consumers. The vast majority of consumers, however, will ask, If I use green products, whats in it for me? In practice, green appeals are not likely to attract mainstream consumers unless they also offer a desirable benefit, such as cost-savings or improved product performance. To avoid green marketing myopia, marketers must fulfil consumer needs and interests beyond what is good for the environment. Thus we see how green marketing myopia was faced by the Philips while trying to bring into market the environment friendly light bulbs. TOYOTA PRIUS

36

Consider the Toyota Prius, the gas-electric hybrid vehicle that achieves about 44 miles per gallon of gasoline. In recent years, Toyotas production has hardly kept pace with the growing demand, with buyers enduring long waits and paying thousands above the cars sticker price. Consequently, other carmakers have scrambled to launch their own hybrids. However, despite higher gas prices, analysts assert that it can take 5 to 20 years for lower gas expenses to offset many hybrid cars higher prices. Thus, economics alone cannot explain their growing popularity. Analysts offer several reasons for the Prius market demand. Initially, the buzz over the Prius got a boost at the 2003 Academy Awards when celebrities such as Cameron Diaz, Harrison Ford, Susan Sarandon, and Robin Williams abandoned stretch limousines and oversized sport utility vehicles, arriving in Priuses to symbolize support for reducing Americas dependence on foreign oil. Since then, the quirky-looking Prius badge of conspicuous conservation has satisfied many drivers desires to turn heads and make a statement about their social responsibility, among them Google founders Larry Page and Sergey Brin, columnist Arianna Huffington, comic Bill Maher, and Charles, Prince of Wales. The Prius ultimately was named Motor Trends Car of the Year in 2004. The trendy appeal of the Prius illustrates that some green products can leverage consumer desires for being distinctive. Others say the Prius is just fun to drivethe dazzling digital dashboard that offers continuous feedback on fuel efficiency and other car operations provides an entertaining driving experience. More recently, however, the Prius has garnered fans for more practical reasons. A 2006 Maritz Poll finds that owners purchased hybrids because of the convenience of fewer fill-ups, better performance, and the enjoyment of driving the latest technology. In some states, the Prius and other high-mileage hybrid vehicles, such as Hondas Insight, are granted free parking and solo-occupancy access to high occupancy vehicle (HOV) lanes. In sum, hybrid vehicles offer consumers several desirable benefits that are not necessarily green benefits.

37

SOME PROBLEMS WITH GOING GREEN


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

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

Another problem firms face is that those who modify their products due to increased consumer concern must contend with the fact that consumers' perceptions are sometimes not correct. Take for example the McDonald's case where it has replaced its clam shells with plastic coated paper. There is ongoing scientific debate which is more environmentally friendly. Some scientific evidence suggests that when taking a cradle-to-grave approach, polystyrene is less environmentally harmful. If this is the case McDonald's bowed to consumer pressure, yet has chosen the more environmentally harmful option. When firms attempt to become socially responsible, they may face the risk that the environmentally responsible action of today will be found to be harmful in the future. Take for example the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs (hydrofluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME (dimethyl ether) as an aerosol propellant, which may also harm the ozone layer. Given the limited scientific knowledge at any point in time, it may be impossible for a firm to be certain they have made the correct environmental decision. This may explain why some firms, like Coca-Cola and Walt Disney World, are becoming socially responsible without publicizing the point.

38

5 Reasons Why Green Marketing Is a New World Unlike the physically bounded geographic world, the new frontiers of marketing are continually emerging for the next great advertising explorers. However, just as Giovanni da Verrazanos explorations led to his demise at the hands of cannibalistic natives, overly audacious marketing adventures can be fatal; if not to your life then to your product. The combination of ethical circumspection, smaller budgets, and divergent markets for green products necessitate the abandonment of old forms of marketing, while still playing it safe enough to avoid potentially lethal detours. As with the emergence of any new enterprise, the flexibility of undefined practices has put a penumbra over the efficacy and relevance of green marketing. To succeed in making green marketing a reputable undertaking, boldly going where no marketer has gone before is not only a prerogative, but an obligation. The Use of New Formats Utilizing the Internet Branding of Green Products is More Difficult than Traditional Products Green Marketing is a Niche Field, and Marketing Dollars Will Be Wasted with Indiscriminate Advertising Use the People Who Love Your Products to Promote Them, and Hear From the Ones That Dont

CASES RELATED TO GREEN MARKETING


CASE 1: Best Green IT Project: State Bank of India: Green IT@SBI By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set the right example for others to follow. SBI is also entered into green service known as Green Channel Counter. SBI is providing many services like; paperless banking, no deposit slip, no withdrawal form, no checks, no money transactions form all these transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce emissions: The State Bank of India became the first Indian bank to harness wind energy through a 15-megawatt wind farm developed by Suzlon Energy. The wind
39

farm located in Coimbatore uses 10 Suzlon wind 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. CASE 2: Phillipss "Marathon" CFL light bulb Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficulty climbing out of its deep green niche. The company relaunched the product as "Marathon," underscoring its new "super long life" positioning and promise of saving $26 in energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy Star label to add credibility as well as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent in an otherwise flat market CASE 3: India's 1st Green Stadium The Thyagaraja Stadium stands tall in the quiet residential colony behind the Capital's famous INA Market. It was jointly dedicated by Union Sports Minister MS Gill and Chief Minister Sheila Dikshit on Friday. Journal of Engineering, Science and Management Education Dikshit said that the stadium is going to be the first green stadium in India, which has taken a series of steps to ensure energy conservation and this stadium has been constructed as per the green building concept with ecofriendly materials.

CASE 4: Introduction of CNG in Delhi


New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution.

40

GREEN BRANDS
Green brands are those brands that consumers associate with environmental conservation and sustainable business practices. Such brands appeal to consumers who are becoming more aware of the need to protect the environment. A green brand can add a unique selling point to a product and can boost corporate image. However, if a company is found or perceived to overstate its green practices its green brand may be criticized as green wash. GREEN WASHING In spite of its growing popularity, the green marketing movement faced serious setbacks in the late 1980s because many industries made false claims about their products and services. For instance, the environmental organization Corp Watch , which issues annually a list of the top ten "green washing" companies, included BP Amoco for advertising its "Plug in the Sun" program, in which the company installed solar panels in two hundred gas stations, while continuing to aggressively lobby to drill for oil in the Arctic National Wildlife Refuge. Green marketing can be a very powerful marketing strategy though when it's done right. In a similar kind of case Chads green marketing campaign bombed because he made the mistake of packaging his environmentally friendly product in Styrofoam, emitting CFCs. Without environmental labelling standards, consumers could not tell which products and services were truly beneficial. Consumers ended up paying extra for misrepresented products. The media came up with the term "green washing" to describe cases where organizations misrepresented themselves as environmentally responsible. So, While green marketing was growing greatly as increasing numbers of consumers were willing to back their environmental consciousnesses with their dollars, it can be dangerous. The public tends to be sceptical of green claims to begin with and companies can seriously damage their brands and their sales if a green claim is discovered to be false or contradicted by a company's other products or practices. Thus, in other words presenting a product or service as green when it's not is called green washing.

41

GREEN PACKAGING
Green packaging is not just about reducing the amount of packaging but takes package design, processing, disposal conditions and the entire product lifecycle into consideration. Some of characteristics of sustainable packaging include: 1. Minimizing the amount of packaging used (weight and volume) 2. Minimizing the energy used for production and transportation of goods 3. Using packaging that can be reused again, such as bottles and refillable ink cartridges 4. Using recycled and recyclable materials 5. Using biodegradable materials

The Cradle to Cradle Approach

42

Cradle to Cradle Certification is carried out by McDonough Braungart Design Chemistry (MBDC) consultants. The cradle to cradle concept holds that it is possible to have products that follow the natural principles of regeneration and create zero waste products. Each product is believed to consist of 2 components the technical nutrients and biological nutrients. The technical nutrient can be reused without degradation into an inferior product while the biological nutrient is returned to nature at the end of its useful life. Besides being earth friendly, this approach can lower costs for organizations and do away with the need for landfills. Different Types of Sustainable Packaging Sustainable packaging is made of recycled products, recyclable products,

biodegradable material and renewable raw materials. Some types of sustainable packaging products are described below. The list is indicative and not exhaustive. Packaging made out of recycled source material

Paper is light weight, easy to print and can be recycled multiple times by using relatively little energy. However, the chemicals used to bleach paper may not be environmentally friendly and the replacement of forests by monocultures reduces biological diversity. Unbleached, post consumer waste paper is the best.

Glass Uses the least energy per pound to recycle. Additionally it is chemically inert and can be recycled almost infinitely without degrading. The disadvantage is that it is heavy and breakable. Aluminium Is easy to recycle and can be moulded to almost any shape. On the flip side mining for aluminium ore and aluminium manufacture are highly energy intensive processes.

Synthetic biodegradable polyesters These advanced materials are moisture resistant, and disintegrate in 12 weeks under aerobic conditions. They are often used as a coating for protecting cheaper biodegradable materials.

43

5 ways of making your packaging greener 1. Reduce packaging The ideal packaging is no packaging. Reduced packaging translates to cost savings in material costs, transportation and disposal. 2. Recycled material is better than recyclable products a recyclable product may or may not be recycled. A recycled product on the other hand has been recycled and therefore has a smaller ecological footprint. 3. Use Biodegradable materials Biodegradable plastics and polyesters are available and so are paper containers, paper nuts, etc. 4. Do not mix products that are incompatible for recycling If two or more polymers are used in making a package it may not be possible to recycle the package. If you must use plastics try to stick to one single plastic so that it is easy to recycle. 5. Design packages with other functional attributes A food container shaped as a toy or a puzzle box that can double up as an ornament store can ensure that packaging does not end up in landfills. Choose the right partner Green your packaging
Be Green Packaging

Be Green Packaging LLC is based out of Santa Barbara. The company provides cradle to cradle certified, compostable packaging made from bulrush an annually renewed plant. These packages are free from tree products and are made from bulrush plants harvested from the wild and not cultivated commercially. The impact on the biodiversity of the planet is therefore minimal. Some of the products that need a cover have been provided with clear 100% recyclable PETE lids.

44

Green Cell Foam

Green Cell Foam provides coolers and other packaging solutions made from corn. These can be easily composted, recycled or burnt safely. The natural material has been used by Pharmaceutical companies like Sandoz, computer manufacturers and automobile manufacturer Volvo to minimize their environmental impact. The product is used for transporting heavy items like windshields on one hand and delicate play station games on the other. Globe Guard Products

Based out of Plainfield, Illinois, Globe Guard Products supplies reusable boxes, 100% recyclable poly padded paper, corrugated mailers made of 100% recycled material, post consumer waste recycled paper labels, Oxodegradable stretch film, eco friendly cushioning products and even gift bags made of treeless paper. Green Packaging is available for almost every application.

45

GREEN LOGISTICS
Logistics is the integrated management of all the activities required to move products through the supply chain. For a typical product this supply chain extends from a raw material source through the production and distribution system to the point of consumption and the associated reverse logistics. The logistical activities comprise freight transport, storage, inventory management, materials handling and all the related information processing.

The main objective of logistics is to co-ordinate these activities in a way that meets customer requirements at minimum cost. In the past this cost has been defined in purely monetary terms. As concern for the environment rises, companies must take more account of the external costs of logistics associated mainly with climate change, air pollution, noise, vibration and accidents. This research project is examining ways of reducing these externalities and achieving a more sustainable balance between economic, environmental and social objectives.
46

Chapter VI: PRESENCE OF GREENNESS IN INDUSTRIES:To make products and services green the industries need to focus on bringing the green in various aspects such as: Supply Chain Packaging Raw Material Product Innovations Services 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 IN SUPPLY CHAIN Example: McDonalds is often blamed for polluting the environment because

much of their packaging finishes up as roadside waste. It must be remembered that it is the uncaring consumer who chooses to dispose of their waste in an inappropriate fashion. With the intent to cut costs and work on eco-friendly image and practices McDonalds tried to reduce the amount of material disposed by its stores. McDonalds asked the supplier to do away with the cartons for napkins. The supplier suggested a better way and came up with dimpling pattern on napkins, which enabled the supplier to pack 25% more napkins in one box and reduction in shipping cost accordingly. McDonalds also allied with Environment Defence 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.

47

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 fulfils its promise and is true to his claim. One such third party in the USA is the Green-e Program of the Centre 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 publicize this achievement and promote their certification through the use of the Green-e logo on their marketing materials and website. 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: Gridcore Systems International demonstrated the use of Recycled Building Material. The company was looking for an alternative building material inorder to reduce the impact on environment. While researching they discovered
48

space board, a new type of building panel developed by the Forest Products laboratory. Space board can be manufactured from various recycled or agricultural fibres, and due to a honeycomb the interior design is just as strong as and several times lighter than conventional fibreboard. GREEN IN PRODUCT INNOVATION / DEVELOPMENT This refers to either environment friendly or environment efficient products as demonstrated by the following examples. Example: Kodaks Recyclable Camera When Kodak created its first disposable

camera it also solved the waste disposal problem by initiating a camera take back scheme during picture processing. This not only reduced the waste disposable problem, it also saved Kodak the manufacturing costs for new cameras. This made it completely recycled camera. Example: Philips Earthlight Compact Fluorescent Light Bulbs With relentless efforts on research and development the company was successful in producing compact fluorescent light bulbs, which are the most energy efficient bulbs. 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.

49

Chapter

VII:

SWOT

ANALYSIS

OF

GREEN

MARKETING

STRATEGY: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 ecoresponsible. 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.

WEAKNESS 1. Most customers choose to satisfy their personal needs before caring for environment. 2. Overemphasizing greenness rather than customer needs can prove devastating for a product. 3. Many customers keep away from products 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.

50

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.

THREATS 1. Uncertainty as to the environmental impact of present activities, including that is perceived to be less environmentally harmful. 2. Uncertainty as to which green marketing activities are acceptable from a government perspective. 3. The possibility of a backlash from consumers or government based on existing green marketing claims, threat one and two above may cause backlash to arise.

51

Chapter VIII: PROBLEMS WITH GREEN MARKETING:There are a number of potential problems that must overcome. One of the main problems is that firms using green marketing must ensure that their activities are not misleading to consumers or industry, and do not breach any of the regulations or laws dealing with environmental marketing. Green marketing claims must clearly state environmental benefits. A problem of the firms face is that those who modify their products due to increased consumer concern must contend with the fact that consumers' perceptions are sometimes not correct. For example the McDonald's case where it has replaced its clam shells with plastic coated paper. There is ongoing scientific debate which is more environmentally friendly. Some scientific evidence suggests that when taking a cradle to grave approach, polystyrene is less environmentally harmful if this is the case McDonald's bowed to consumer pressure, yet has chosen the more environmentally harmful option. When firms attempt to become socially responsible, they may face the risk that the environmentally responsible action of today will be found to be harmful in the future. Take for example the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs (hydro fluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME (di-methyl ether) as an aerosol propellant, which may also harm the ozone layer. Given the limited scientific knowledge at any point, it may be impossible for a firm to have made the correct environmental decision. This may explain why some firms, like Coca-Cola and Walt Disney World, are becoming socially responsible without publicizing the point. They may be protecting themselves from potential future negative backlash; if it is determined they made the wrong decision in the past. While governmental regulation is designed to give consumers the opportunity to make better decisions or to motivate them to be more environmentally responsible, there is difficulty in establishing policies that will address all environmental issues. For example, guidelines developed to control environmental marketing address only a very narrow set of issues, i.e., the truthfulness of environmental marketing
52

claims. If governments want to modify consumer behavior they need to establish a different set of regulations. Thus governmental attempts to protect the environment may result in a proliferation of regulations and guidelines, with no one central controlling body. Reacting to competitive pressures can cause all "followers" to make the same mistake as the "leader." Mobil Corporation who has followed the competition and introduced "biodegradable" plastic garbage bags, as because technically these bags were biodegradable, the conditions under which they were disposed did not allow biodegradation to occur. Mobil was sued by several US states for using misleading advertising claims. Thus blindly following the competition can have costly ramifications. The push to reduce costs or increase profits may not force firms to address the important issue of environmental degradation. End-of-pipe solutions may not actually reduce the waste but rather shift it around. While this may be beneficial, it does not necessarily address the larger environmental problem, though it may minimize its short term affects. Ultimately most waste produced will enter the waste stream, therefore to be environmentally responsible organizations should attempt to minimize their waste, rather than find "appropriate" uses for it.

Problems associated with each market segment


Segment 1: Consumer Segment Consumers may express more concern about the ecology, but they continues to buy large luxury cars, relatively few recycle voluntarily, and most importantly, economic issued continue to dominate political campaigns. Researcher fail to see why people must pay a hefty premium for biodegradable baby wipes that can be flushed down the toilet or coffee filters that arent bleached. It raised a point in the mind of researcher that demand for green products does exist, and people are willing to pay if they dont feel theyre being ripped off. Bank and credit card companies persuade customers to get paperless statements to save trees, but then charge a fee for accessing statements via software. While competition is inevitable in any business endeavour, the presence of stricter regulations and public policies can aggravate the situation. This emanates primarily from misleading statements and claims of products being environment friendly. In
53

particular, there are a number of criticisms regarding the marketing ploy of degradable trash bags. Manufacturers claim that it is not their fault if consumers are uniformed. Hence, consumers must interpret the degradability of these products. Debate of this nature has led to stricter policies and governing bodies. Segment 2: Government Segment Tackling Indias environment crisis is likely to be a difficult proposition for any government. Indian government has much to do for addressing their environmental issues as compared to its European or American counterparts requiring environmental and social assessments for entire sectors. India does have a system of environmental impact assessments being mandatory for most development projects. The western Ghats are not only valuable from the point of view of the timber and non-timber forest produce they contain, but even more so for the enormous water security they provide to the plains in Karnataka, Kerala, Maharashtra, Goa , and Tamil nadu, not speak of their potential genetic values. Yet none of these values integrate when decisions are taken about land use in the Western Ghats. On the contrary, cutting trees for timber appears as a positive contribution (as revenue) in the budget figures, and there is no corresponding debit entry on the resulting loss of ecosystem benefits. In India, the central government does not maintain such a centralized database and even the data that it has on companies is not easily available to public accessibility. Moreover, within the environmental community, there is a very little credibility in data being supplied to the government. The government should not only provide the legislation regarding environment and Green Marketing practices but also ensure that these are enforced. The government should adopt carrot and stick approach for the organizations i.e. rewarding organizations with good EMPs and imposing penalty on the erring ones. Formation of an environmental award just like Rajiv Gandhi Quality Award would be a good step.

54

Segment 3: Private Industry Segment. Within private industry, many companies are currently undertaking environmental control and recycling programs. E.G. ITC, Philips, Electrolux, Toyota, J&J, Orchid Hotel. The aforementioned programs and policies imply capital expenditures for their installation and maintenance. 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, moral responsibility to be an opportunity that can be used to achieve its objectives, moral responsibility to be socially responsible, governmental pressure, competitors environmental activities, and costs factors associated with waste disposal, or reductions in material usage forces firma to modify their behaviour. Segment 4: Non-Profit Organization While not a particularly lucrative group, this segment may be especially appealing for companies that provide recycling and waste disposal services. Since part of the green dilemma is rooted in the reduction of waste, business connected with waste disposal will find this segment a viable customer. However, because this segment often operates as non-profit institutions, budgetary constraints will limit the extent to which they will be able to expend rupees for waste reduction purposes. Nonetheless, if the trend of environment related regulatory policies continue, hospitals and universities (among others) will have no choice but to allocate part of their budget for waste reduction purposes. The NGOs must work hard in hand with the central as well as state government to stop environmental degradation such as illegal felling of trees for commercial purpose. It is suggested that NGOs, rather than partnering with the individual companies and opening themselves to the criticism of bedding with the devil would be better to partner trade and professional organizations.

55

Chapter IX: PUBLIC OPINION ON GREEN MARKETING:1) Now eco packaging is poised to become the next low-hanging fruit of the clean tech world. Investors and entrepreneurs this week at Europe's most important annual clean tech conference reported unprecedented interest in reducing the use of raw materials while finding superior protection for food and other products. 2) Consumers are increasingly putting plastic shopping bags and non-green wrapping items on their naughty list, according to Deloitte's 2008 Annual Holiday Survey. Nearly half of the 13,000 consumers polled said they'd be willing to pay more for green gifts. 3) Consumers perceive themselves as being environmentally responsible. Successful green marketing requires matching a company's brand attributes with its customers' identity as "green." An article suggested examining green marketing from the perspective of the 4 P's of marketing -- product, price, placement and promotion -- plus a 5th P, "prove it." 4) Americans are quick to identify polluting companies as "socially irresponsible" and make their purchasing decisions accordingly, says a new survey. The poll also found that American consumers between the ages of 18-29 are more likely to spend more on organic, environmentally preferable or fair trade products than other age groups. 5) The survey, by the research firm Global Market Insight, quizzed more than 15,000 online consumers in the U.S. and 16 other countries about their socially conscious business practices. 6) Americans placed the highest value on corporate community involvement; when asked what factor was the most important in determining if a business is socially responsible, "contributing to the community" (e.g. sponsorship, grants, employee volunteer programs) came in highest with 47%. On the other hand, all of the other countries surveyed (India, Canada, Australia, Germany, China, and Japan) selected environmentally preferable practices (recycling, using biodegradable products) as the top factor.
56

7) "In the high-tech era where employees are expected to work 24/7, it's significant that Americans rate giving back to the community as their top priority in recognizing socially responsible companies," said Marjorie Thompson, co-author of Brand Spirit: How Cause Related Marketing Builds Brands. "It shows that people want to feel connected to each other and that they are willing to reward businesses who tap into this sense of mutual support and belonging. Companies will need to start thinking of their community programs as core to their businesses and brands. 8) Not surprising, the U.S., along with other countries such as India and China, which have experienced environmental disasters caused by corporations (e.g. Love Canal, Exxon Valdez) or have had to deal with major polluting issues (e.g. coal plants, manufacturing), believe that damaging the environment is associated with acting socially irresponsible. 9) Thompson adds: "Based on the findings, Generation Y is obviously more environmentally conscious and socially savvy, which is expected given that many are aware of the issues surrounding globalization and trade and how this can negatively affect the environment, labor pool and the local communities." 10) Surprisingly, a large majority of online consumers in the less developed countries of China and India, 91% and 71% respectively, will pay more for socially responsible products, while almost half (47%) of the U.K. respondents indicated they would spend more for these types of goods.

57

Chapter X: OPPORTUNITIES IN GREEN MARKETING: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 energyefficient 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 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
58

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 fibber 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 Toms 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, Stony field Farm Yogurt, and Toms 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 Earths Best Baby Foods (by Heinz), Murphys Oil Soap (Colgate- Palmolive), Earth Rite Cleaning Products (Reckitt & Colman). After nearly two decades of compromising on quality and languishing on once-dusty health food store shelves as a resulttodays 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. PERSONAL REWARDS Green marketing offers a rare opportunity to integrate ones 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
59

longer content to promise consumers that their clothes will become "whiter than white" or breath that is "fresher than fresh", green marketerslike their bosses who manage for a double bottom linecultivate 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. 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 benefitsof performance, convenience, price, and safety, for examplethat accompany environmental improvements to continue to propel the market for environmentally preferable products in the years and decades ahead. 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. These 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.

60

Chapter XI: ROLE OF IT IN GREEN MARKETING:IT departments are under increasing scrutiny and pressure to deliver

environmentally sound solutions. Large data centres are one of the most significant energy consumers in an organizations IT infrastructure, so any measures that the organization can take to reduce this consumption (and therefore also carbon dioxide emissions) will have a positive impact on the organizations environmental footprint. Gartner reveals that during the last five years, the power demands of equipments have grown by five or more times. Additionally, a report issued by the environmental Protection Agency in US indicates that environmental issues have placed IT departments under pressure to develop green data centres. A green data centre is defined as one in which the mechanical, lighting, electrical and computer systems are designed for maximum energy efficiency and minimum environmental impact. The construction and operation of a green data centre involved in advanced technologies and strategies. Some examples include: Reducing the power consumption of the data centre. Minimizing the footprints of the buildings. Maximizing cooling efficiency. Using Low-emission building materials, carpets and paints. Installing catalytic converters on backup generators. Using alternative energy technologies such as photovoltaic electrical heat pumps and evaporating cooling. The consumption of energy is considered the dominant- and often the only-factor in defining whether or not a facility is green. IT executives therefore need to start investigating alternative ways of building energyefficient data centres. This paper focuses on How a Green Data Centre can be a Great Marketing Tool

61

Chapter XII: CONCLUSION:There are many lessons 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 marketings future? Historically, green marketing has been a misunderstood concept. Business scholars have viewed it as a fringe topic, given that environmentalisms acceptance of limits and conservation does not mesh well with marketings traditional axioms of give customers what they want and sell as much as you can. In practice, green marketing myopia has led to ineffective products and consumer reluctance. Sustainability, however, is destined to dominate twenty-first century commerce. Rising energy prices, growing pollution and resource consumption in Asia, and political pressures to address climate change are driving innovation toward healthier, more-efficient, high-performance products. In short, all marketing will incorporate elements of green marketing. Successful green marketing entails much more than simply tweaking the size of a package, using recycled materials in place of virgin ones, or substituting natural ingredients for synthetic. While positive and necessary, such changes are just a small part of a much, much bigger picture. When we look at the businesses that are at the forefront of the green trend, we see a deeper characteristic than just greenedup products or ads that makes them at once environmental and societal leaders as well as profitable: green leaders are driven by more than short-term financial goals. They are motivated by a double bottom line, a bottom line that recognizes the potential for business to affect societal change as well as create economic wealth. A business that at the end of the day is measured by profits as much as its contribution to human potential and the harmony of the company's objectives with other living beings. Green leaders are not afraid to project the values that underlie their organization's mission and purpose. To their customers, the products they sell are not just consumables sold at a profit but mirrors of their corporate commitment to environmental care and social responsibility. Such products appeal to consumers with a finely honed sense of idealism, integrity, and the belief that businesses can
62

and should achieve social goals as well as financial ones. Because green leaders are not afraid to take a stand on their beliefs, their consumers stand ready to believe their product claims and regard the individuals running the company as sincere. The most successful green companies operate holistically. Unlike conventional marketers who most often react to consumers' immediate needs, the most successful green companies lead their customers and other stakeholders, rather than accept being led by them. They anticipate emerging environmental issues and address them before being forced to do so. As such they are able to set their own agenda with regulators and they don't risk disappointing their customers or shaking their confidence. Rather than simply employ resources at hand, the deep-seated convictions of the founders and CEOs of the most environmentally responsible companies challenge their employees to stretch beyond their immediate horizons, teaming up with corporate environmental stakeholders to create optimal solutions to pressing environmental problems. These leaders are not afraid to question assumptions or break the rules. They derive competitive advantage while accomplishing the most good for society by embracing unconventional and often radical solutions. They enhance profitability and quality by innovating more and more efficient ways to design and market products and conduct their businesses overall. The greenest companies are not afraid to listen to understand the issues from all sides, to pick up clues from individuals and groups on the fringes who can lead them to new opportunities, and to simply demonstrate to employees, customers, suppliers and others that they care. At the same time, they are not afraid to trust. They are open to entrees from government regulators offering technical assistance or to an environmentalist with a seemingly off-beat idea. Most importantly, they trust their own instincts, their insights into the causes and probable solutions to society's environmental ills, and their own deeply held beliefs. Green leaders focus on the stakeholders most important to their business and on the product attributes

63

that represent the greatest environmental impact and are most important to their customers. Finally, green leaders are patient. They are committed to the long term, and to continuous improvement. They are eager to learn from their own mistakes and they engage in forums that allow them to learn from the mistakes of others. And, like Sally Fox, who took 10 years to cultivate a naturally colored cotton seed capable of yielding a fiber long enough to be spun into marketable yarn, green leaders persevere. A green future is now being created by visionaries with a competitive spirit in their bellies and social activism in their hearts. While many businessmen and women may still be content to tweak products or manage cash cows in the quest for next quarter's earnings, green leaders are right now readying new products and services to market, creating new industries and more inclusive work and management styles that didn't exist five or ten years ago. Theirs will be the standards for the future. With ever increasing scientific understanding of how the Earth works, a general movement toward safer, less polluting and more environmentally sustainable practices is inevitable. Marketers that take the time now to court the deepest green consumers with truly innovative solutions to environmental concerns will be the ones who reap the biggest future opportunities. So, if today's successful marketing is about appealing to personal values and delivering consumer empowerment, then surely the time is right to inject sustainable development into the marketing mix to help address some of gritty issues currently facing our planet. Green marketing methods produce highly effective results. They apply all of the steps you need to cut costs, raise response rates and increase growth in the most important marketing metric we are all held accountable forthe bottom line.

64

REFERRENCE Journals: 1. Amine, L.S. (2003), "An integrated micro- and macro-level discussion of global green issues: it isn't easy being green", Journal of International Management, Vol. 9 No.4, pp.373-94 2. Crane, A. (2000), "Facing the backlash: green marketing and strategic reorientation in the 1990s", Journal of Strategic Marketing, Vol. 8 No.3, pp.277-96. 3. Johri, L.M., Sahasakmontri, K. (1998), "Green marketing of cosmetics and toiletries in Thailand", Journal of Consumer Marketing, Vol. 15 No.3, pp.265-81 4. McDaniel, S.W., Rylander, D.H. (1993), "Strategic green marketing", Journal of Consumer Marketing, Vol. 10 No.3, pp.4-10. 5. Martin, B., Simitiras, A.C. (1995), "The impact of green product lines on the environment", Marketing Intelligence & Planning, Vol. 13 No.4, pp.1623. 6. Simms, C. (1992), "Green issues and strategic management in the grocery retail sector", International Journal of Retail & Distribution Management, Vol. 20 No.1, pp.32-42. Websites: 1. http://www.greenmarketing.com/green_marketing_book 2. http://egj.lib.uidaho.edu/egj02/polon01.html 3. http://www.awea.org/policy/greenprins.html 4. http://www.sustainablemarketing.com/ 5. http://www.onpoint-marketing.com/green-marketing.htm 6. http://www.ecomall.com/greenshopping/greencorner.htm 7. http://www.tompaine.com/articles/2006/11/03/bright_green_marketin g_challenge.php 8. http://www.plentymag.com/features/2006/11/green_marketing_machi ne.php

65

You might also like