Winter Project Report

on

“Green Marketing- A New Dimension In Marketing Era”

Submitted to:
Mrs. Megha Bhatia
Project Supervisor

by
Shobhit Agrawal
Roll No.0989143
BBA- VI Sem.
April 2011

to

M.J.P Rohilkhand University

Submitted by

DEPARTMENT OF MANAGEMENT STUDIES

INSTITUTE OF FOREIGN TRADE AND MANAGEMENT
LODHIPUR RAJPUT, DELHI ROAD, MORADABAD. (U.P.)
 “Green Marketing-A New Dimension In Marketing Era”

by

SHOBHIT AGRAWAL
BBA VI SEMESTER
SUBMITTED TO DEPARTMENT OF MANAGEMENT STUDIES IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

AT THE
INSTITUTE OF FOREIGN TRADE AND MANAGEMENT
APRIL 2011

The author hereby grants I.F.T.M. permission to reproduce and to distribute publicably, paper and
electronic copies of the project report in whole or in part.

Signature of student
Department of Management studies
March 2011

Certified by
Mrs.Megha Bhatia
Project Supervisor

Accepted by

Dr. (Mrs.) Manjula Jain

Head of the
Department of Management studies
 ACKNOWLEDGMENT

Heartiest thanks to Dr. (Mrs.) Manjula Jain (H.O.D Management Department) and

other faculty members, librarian and all other staffs of my esteemed institute for their

time to time assistance.

I would like to thanks all the customers whom I met and they gave their valuable time to

answer my queries.

I express my heartfelt gratitude Mrs. Megha Bhatia (Project Supervisor) for giving me

the opportunity to do the Project Work and for providing me this learning experience in

this esteemed organization.

Lastly I would express my sincere thanks to all respondents for their cooperation. I am

extremely obliged and highly thankful all those who have contributed to completion of

this project.

Shobhit Agrawal
BBA- VI Sem.
 PREFACE

Although environmental issues influence all human activities, few academic

disciplines have integrated green issues into their literature. This is especially true of
marketing. As society becomes more concerned with the natural environment, businesses
have begun to modify their behavior in an attempt to address society's "new" concerns.
Some businesses have been quick to accept concepts like environmental management
systems and waste minimization, and have integrated environmental issues into all
organizational activities. Some evidence of this is the development of journals such as
"Business Strategy and the Environment" and "Greener Management International,"
which are specifically designed to disseminate research relating to business'
environmental behavior.
One business area where environmental issues have received a great deal of
discussion in the popular and professional press is marketing. Terms like "Green
Marketing" and "Environmental Marketing" appear frequently in the popular press. Many
governments around the world have become so concerned about green marketing
activities that they have attempted to regulate them. For example, in the United States
(US) the Federal Trade Commission and the National Association of Attorneys-General
have developed extensive documents examining green marketing issues. One of the
biggest problems with the green marketing area is that there has been little attempt to
academically examine environmental or green marketing.
 OBJECTIVE

The objective of this report is to:

• Introduce the terms and concepts of green marketing;
• Briefly discuss why going green is important;
• Examine some of the reason that organizations are adopting a green marketing
philosophy; and
• Mention some of the problems with green marketing.
• Find out ways to improve consumer appeal for environmentally preferable
products through different marketing strategies.
 TABLE OF CONTENTS

ACKNOWLEDGEMNET
PREFACE
OBJECTIVE

No. Chapter Name Page

1. INTRODUCTION TO GREEN MARKETING................................... 1-18

2. GREEN MARKETING MYOPIA…………………………………… 19-27
3. HOW TO DO GREEN MARKETING…………………….................. 28-42
4. STRATEGIES AND ADVANTEGES OF GREEN MARKETING… 43-53
5. RESEARCH METHODOLOGY………………………………………. 54-66
6. CONCLUSION AND RECOMENDATION.....………………………… 67-69
REFERENCES…………………………………………………………….. 70
 CHAPTER - 1

INTRODUCTION TO 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".

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

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

According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for

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

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

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

A GREEN MARKET IN NEWYORK

 WHAT IS GREEN MARKETING?

Unfortunately, a majority of people believe that green marketing refers solely to

the promotion or advertising of products with environmental characteristics. Terms like
Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly
are some of the things consumers most often associate with green marketing. While these
terms are green marketing claims, 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
"ecotourist" facilities, i.e., facilities that "specialize" in experiencing nature or operating
in a fashion that minimizes their environmental impact.

Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as
modifying advertising. Yet defining green marketing is not a simple task. Indeed the
terminology used in this area has varied, it includes: Green Marketing, Environmental
Marketing and Ecological Marketing. While green marketing came into prominence in
the late 1980s and early 1990s, it was first discussed much earlier. 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". Since that time a number of other books on
the topic have been published.

The AMA workshop attempted to bring together academics, practitioners, and

public policy makers to examine marketing's impact on the natural environment. At this
workshop ecological marketing was defined as:

“The study of the positive and negative aspects of marketing activities on

pollution, energy depletion and non-energy resource depletion.”
 This early definition has three key components –
1) It is a subset of the overall marketing activity;
2) It examines both the positive and negative activities; and
3) A narrow range of environmental issues are examined.

While this definition is a useful starting point, to be comprehensive green

marketing needs to be more broadly defined. Before providing an alternative definition it
should be noted that no one definition or terminology has been universally accepted. This
lack of consistency is a large part of the problem, for how can any issue be evaluated if
all researchers have a different perception of what they are researching. The following
definition is much broader than those of other researchers and it encompasses all major
components of other definitions. The definition is –
“Green or Environmental Marketing consists of all activities designed to generate
and facilitate any exchanges intended to satisfy human needs or wants, such that the
satisfaction of these needs and wants occurs, with minimal detrimental impact on the
natural environment.”

This definition incorporates much of the traditional components of the marketing

definition that is "All activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants". 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. The above definition also
includes the protection of the natural environment, by attempting to minimize the
detrimental impact this exchange has on the environment. This second point is important,
for human consumption by its very nature is destructive to the natural environment. (To
be accurate products making green claims should state they are "less environmentally
harmful" rather than "Environmentally friendly.") Thus green marketing should look
at minimizing environmental harm, not necessarily eliminating it.
 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 planet’s “natural” capital.
Escalating energy prices, concerns over foreign oil dependency, and calls for energy
conservation are creating business opportunities for energy-efficient products, clean
energy, and other environmentally sensitive innovations and products.

ONE OF THE MOST COMMONLY USED GREEN PRODUCTS – THE PHILIPS CFL
 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.

THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS

BENEFITS OF GREEN MARKETING
 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 behavior.

DELHI’S FAMOUS CNG AUTORICKSHAW

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 behavior, including
their purchasing behavior, due to environmental reasons. As demands change, many
firms see these changes as an opportunity to be exploited.

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

• McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone
depletion.
• Tuna manufacturers modified their fishing techniques because of the increased
concern over driftnet fishing, and the resulting death of dolphins.
• Xerox introduced a "high quality" recycled photocopier paper in an attempt to
satisfy the demands of firms for less environmentally harmful products.

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

SOCIAL RESPONSIBILITY

Many firms are beginning to realize that they are members of the wider
community and therefore must behave in an environmentally responsible fashion. This
translates into firms that believe they must achieve environmental objectives as well as
profit related objectives. This results in environmental issues being integrated into the
firm's corporate culture. 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.

An example of a firm that does not promote its environmental initiatives is Coca-
Cola. They have invested large sums of money in various recycling activities, as well as
having modified their packaging to minimize its environmental impact. While being
concerned about the environment, Coke has not used this concern as a marketing tool.
Thus many consumers may not realize that Coke is a very environmentally committed
organization.

Another firm who is very environmentally responsible but does not promote this
fact, at least outside the organization, is Walt Disney World (WDW). WDW has an
extensive waste management program and infrastructure in place, yet these facilities are
not highlighted in their general tourist promotional activities.

SOME COMPANIES THAT USE GREEN MARKETING AS SOCIAL

RESPONSIBILITY.
GOVERNMENTAL PRESSURE

As with all marketing related activities, governments want to "protect" consumers

and society; this protection has significant green marketing implications. Governmental
regulations relating to environmental marketing are designed to protect consumers in
several ways,
1) Reduce production of harmful goods or by-products;
2) Modify consumer and industry's use and/or consumption of harmful goods; or
3) Ensure that all types of consumers have the ability to evaluate the
environmental composition of goods.

Governments establish regulations designed to control the amount of hazardous

wastes produced by firms. Many by-products of production are controlled through the
issuing of various environmental licenses, thus modifying organizational behavior. In
some cases governments try to "induce" final consumers to become more responsible.
For example, some governments have introduced voluntary curb-side recycling
programs, making it easier for consumers to act responsibly. In other cases governments
tax individuals who act in an irresponsible fashion. For example in Australia there is a
higher gas tax associated with leaded petrol.

One of the more recent publicized environmental regulations undertaken by

governments has been the establishment of guidelines designed to "control" green
marketing claims. These regulations include the Australian Trade Practices Commission's
(TPC) "Environmental Claims in Marketing - A Guideline, the US Federal Trade
Commission's (FTC) "Guides for the Use of Environmental Marketing Claims" and the
regulations suggested by the National Association of Attorneys-General. These
regulations are all designed to ensure consumers have the appropriate information which
would enable them to evaluate firm's environmental claims. In addition to these
guidelines many States in the US have introduced legislation to control various
environmental marketing activities. In most cases these State laws are more stringent than
the FTC's guidelines. To date the majority of prosecutions of firms using misleading
green marketing has occurred in State rather than Federal courts.
 Thus governmental attempts to protect consumers from false or misleading claims
should theoretically provide consumers with the ability to make more informed decisions.
In Australia where regulations have affected many companies, one unintended casualty
was an advertisement for the Federal Government's environmental labeling program
"Environmental Choice." This ad was deemed to breach the TPC's guidelines, as it
implied that only products with the logo were environmentally responsible.

COMPETITIVE PRESSURE

Another major force in the environmental marketing area has been firms' desire to
maintain their competitive position. In many cases firms observe competitors promoting
their environmental behaviors and attempt to emulate this behavior. In some instances
this competitive pressure has caused an entire industry to modify and thus reduce its
detrimental environmental behavior. For example, it could be argued that Xerox's
"Revive 100% Recycled paper" was introduced a few years ago in an attempt to address
the introduction of recycled photocopier paper by other manufacturers. In another
example when one tuna manufacture stopped using driftnets the others followed suit.

COST OR PROFIT ISSUES

Firms may also use green marketing in an attempt to address cost or profit related
issues. Disposing of environmentally harmful by-products, such as polychlorinated
biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases
difficult. Therefore firms that can reduce harmful wastes may incur substantial cost
savings. When attempting to minimize waste, firms are often forced to re-examine their
production processes. In these cases they often develop more effective production
processes that not only reduce waste, but reduce the need for some raw materials. This
serves as a double cost savings, since both waste and raw material are reduced.

In other cases firms attempt to find end-of-pipe solutions, instead of minimizing

waste. In these situations firms try to find markets or uses for their waste materials, where
one firm's waste becomes another firm's input of production. One Australian example of
this is a firm who produces acidic waste water as a by-product of production and sells it
to a firm involved in neutralizing base materials.

The last way in which cost or profit issues may affect firms' environmental
marketing activities is that new industries may be developed. This can occur in two ways:

1) A firm develops a technology for reducing waste and sells it to other firms; or

2) A waste recycling or removal industry develops.

For example, firms that clean the oil in large industrial condensers increase the
life of those condensers, removing the need for replacing the oil, as well as the need to
dispose of the waste oil. This reduces operating costs for those owning the condensers
and generates revenue for those firms cleaning the oil.
 SOME PROBLEMS WITH GOING GREEN
No matter why a firm uses green marketing there are a number of potential
problems that they must overcome. One of the main problems is that firms using green
marketing must ensure that their activities are not misleading to consumers or industry,
and do not breach any of the regulations or laws dealing with environmental marketing.
For example marketers in the US must ensure their green marketing claims can meet the
following set of criteria, in order to comply with the FTC's guidelines. Green marketing
claims must;

• Clearly state environmental benefits;

• Explain environmental characteristics;
• Explain how benefits are achieved;
• Ensure comparative differences are justified;
• Ensure negative factors are taken into consideration; and
• Only use meaningful terms and pictures.
 Another problem firm’s face is that those who modify their products due to
increased consumer concern must contend with the fact that consumers' perceptions are
sometimes not correct. Take for example the McDonald's case 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. They
may be protecting themselves from potential future negative backlash; if it is determined
they made the wrong decision in the past.

While governmental regulation is designed to give consumers the opportunity to

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

Reacting to competitive pressures can cause all "followers" to make the same
mistake as the "leader." A costly example of this was the Mobil Corporation who
followed the competition and introduced "biodegradable" plastic garbage bags. While
technically these bags were biodegradable, the conditions under which 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.
GREEN HOUSE GASES AND THEIR SOURCES
 CHAPTER - 2

GREEN MARKETING MYOPIA

 AN EXAMPLE OF GREEN MARKETING MYOPIA

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 CFL’s 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 bulb’s 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 product’s life span compared to incandescent bulbs.

PHILIPS MARATHON BULBS

The new bulbs were also certified by the U.S. Environmental Protection Agency’s
(EPA) Energy Star label. Repositioning CFL bulbs’ features into advantages that
resonated with consumer values—convenience, ease-of-use, and credible cost savings—
ultimately sparked an annual sales growth of 12 percent in a mature product market.

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, what’s 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 fulfill 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.
 WHAT IS 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).

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 myopia—marketers’ myopic focus on their products’
“greenness” over the broader expectations of consumers or other market players (such as
regulators or activists).

For example, partially in response to the 1987 Montreal Protocol, in which

signatory countries (including the United States) agreed to phase out ozone depleting
chlorofluorocarbons (CFCs) by 2000, Whirlpool (in 1994) launched the “Energy Wise”
refrigerator, the first CFC free cooler and one that was 30 percent more efficient than the
U.S. Department of Energy’s highest standard. For its innovation, Whirlpool won the
“Golden Carrot,” a $30 million award package of consumer rebates from the Super-
Efficient Refrigerator Program, sponsored by the Natural Resources Defense Council and
funded by electric utilities. Unfortunately, Energy Wise’s sales languished because the
CFC-free benefit and energy-savings did not offset its $100 to $150 price premium,
particularly in markets outside the rebate program, and the refrigerators did not offer
additional features or new styles that consumers desired.

General Motors (GM) and Ford encountered similar problems when they
launched their highly publicized EV-1 and Think Mobility electric vehicles, respectively,
in the late 1990s to early 2000s in response to the 1990 zero emission vehicle (ZEV)
regulations adopted in California. Both automakers believed their novel two-seater cars
would be market successes (GM offered the EV-1 in a lease program, and Ford offered
Think Mobility vehicles as rentals via the Hertz car-rental chain). Consumers, however,
found electric vehicles’ need for constant recharging with few recharging locations too
inconvenient. Critics charged that the automakers made only token efforts to make
electric cars a success, but a GM spokesperson recently explained, “We spent more than
$1 billion to produce and market the vehicle, [but] fewer than 800 were leased.” Most
drivers were not willing to drastically change their driving habits and expectations to
accommodate electric cars, and the products ultimately were taken off the market.

Aside from offering environmental benefits that do not meet consumer

preferences, green marketing myopia can also occur when green products fail to
provide credible, substantive environmental benefits.
Example – MOBIL’S HEFTY PHOTODEGRADABLE PLASTIC
TRASH BAGS

Mobil’s Hefty photodegradable plastic trash bag is a case in point. Introduced in

1989, Hefty packages prominently displayed the term “degradable” with the explanation
that a special ingredient promoted its decomposition into harmless particles in landfills
“activated by exposure to the elements” such as sun, wind, and rain. Because most
garbage is buried in landfills that allow limited exposure to the elements, making
degradation virtually impossible, the claim enraged environmentalists. Ultimately, seven
state attorneys general sued Mobil on charges of deceptive advertising and consumer
fraud. Mobil removed the claim from its packaging and vowed to use extreme caution in
making environmental claims in the future.
It has been found that the top reasons consumers do not buy green products
included beliefs that they require sacrifices—inconvenience, higher costs and lower
performance— without significant environmental benefits. Ironically, despite what
consumers think, a plethora of green products available in the marketplace are in fact
desirable because they deliver convenience, lower operating costs, and/or better
performance. Often these are not marketed along with their green benefits, so consumers
do not immediately recognize them as green and form misperceptions about their
benefits. When consumers are convinced of the desirable “non-green” benefits of
environmental products, they are more inclined to adopt them.

Other environmental products have also scored market successes by either serving
profitable niche markets or offering mainstream appeal.
Example – TOYOTA PRIUS

Consider the Toyota Prius, the gas-electric hybrid vehicle that achieves about 44
miles per gallon of gasoline. In recent years, Toyota’s production has hardly kept pace
with the growing demand, with buyers enduring long waits and paying thousands above
the car’s 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 America’s 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 Trend’s 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 drive—the
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 Honda’s 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.
 TOYOTA PRIUS

Many environmental products have become so common and widely

distributed that many consumers may no longer recognize them as green because
they buy them for non-green reasons. Green household products, for instance, are
widely available at supermarkets and discount retailers, ranging from energy-saving Tide
Coldwater laundry detergent to non-toxic Method and Simple Green cleaning products.
Use of recycled or biodegradable paper products (such as plates, towels, napkins, coffee
filters, computer paper,and other goods) is also widespread. Organic and rainforest-
protective “shade grown” coffees are available at Starbucks and other specialty stores and
supermarkets. Organic baby food is expected to command 12 percent market share in
2006 as parents strive to protect their children’s mental and physical development.
Indeed, the organic food market segment has increased 20 percent annually since 1990,
five times faster than the conventional food market, spurring the growth of specialty
retailers such as Whole Foods Market and Wild Oats. Wal-Mart, too, has joined this
extensive distribution of organic products. Indeed, Wal-Mart has recently declared that in
North American stores, its non-farm-raised fresh fish will be certified by the Marine
Stewardship Council as sustainably harvested.

Super energy-efficient appliances and fixtures are also becoming popular. Chic,
front-loading washing machines, for example, accounted for 25 percent of the market in
2004, up from 9 percent in 2001. EPA’s Energy Star label, which certifies that products
consume up to 30 percent less energy than comparable alternatives, is found on products
ranging from major appliances to light fixtures to entire buildings (minimum efficiency
standards vary from product to product). The construction industry is becoming
increasingly green as government and industry demand office buildings that are “high
performance” (for example, super energy- and resource-efficient and cost effective) and
“healthy” for occupants (for example, well-ventilated; constructed with materials with
low or no volatile organic compounds [VOC]). The U.S. Green Building Council’s
“Leadership in Energy and Environmental Design” (LEED) provides a rigorous rating
system and green building checklist that are rapidly becoming the standard for
environmentally sensitive construction.

Home buyers are recognizing the practical long-term cost savings and comfort of
natural lighting, passive solar heating, and heat-reflective windows, and a 2006 study
sponsored by home improvement retailer Lowe’s found nine out of ten builders surveyed
are incorporating energy-saving features into new homes. Additionally, a proliferation of
“green” building materials to serve the growing demand has emerged. Lowe’s competitor
The Home Depot is testing an ‘EcoOptions’ product line featuring natural fertilizers and
mold resistant drywall in its Canadian stores that may filter into the U.S. market. In short,
energy efficiency and green construction has become main stream.

The diversity and availability of green products indicate that consumers are not
indifferent to the value offered by environmental benefits. Consumers are buying green
—but not necessarily for environmental reasons. The market growth of organic foods
and energy-efficient appliances is because consumers desire their perceived safety and
money savings, respectively. Thus, the apparent paradox between what consumers
say and their purchases may be explained, in part, by green marketing myopia—a
narrow focus on the greenness of products that blinds companies from considering
the broader consumer and societal desires. A fixation on products’ environmental
merits has resulted frequently in inferior green products (for example, the original
EarthLight and GM’s EV-1 electric car) and unsatisfying consumer experiences.
 CHAPTER - 3

HOW TO DO GREEN MARKETING

 THE 3 Cs 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 product’s
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 fuel-
efficient cars and energy saving home improvements and appliances, long-term savings
have convinced cost-conscious consumers to buy green.

Recently, the home appliance industry made great strides in developing energy
efficient products to achieve EPA’s 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. Whirlpool’s 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 & Gamble’s (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
flavorful, healthy alternatives to factory-farm foods has convinced consumers to pay a
premium for them.

A study conducted by the Alliance for Environmental Innovation and household

products-maker S.C. Johnson found that consumers are most likely to act on green
messages that strongly connect to their personal environments. Specifically, findings
suggest that the majority of consumers prefer such environmental household product
benefits as “safe to use around children,” “no toxic ingredients,” “no chemical residues,”
and “no strong fumes” over such benefits as “packaging can be recycled” or “not tested
on animals.” Seventh Generation, a brand of non-toxic and environmentally- safe
household products, derived its name from the Iroquois belief that, “In our every
deliberation, we must consider the impact of our decisions on the next seven
generations.” Accordingly, its products promote the family-oriented value of making the
world a safer place for the next seven generations.

Indoor air quality is also a growing concern. Fumes from paints, carpets,
furniture, and other décor in poorly ventilated “sick buildings” have been linked to
headaches, eye, nose, and throat irritation, dizziness, and fatigue among occupants.
Consequently, many manufacturers have launched green products to reduce indoor air
pollution. Sherwin Williams, for example, offers “Harmony,” a line of interior paints that
is low-odor, zero- VOC, and silica-free. Aside from energy efficiency, health and safety
have been key motivators driving the green building movement.

1.3 Performance

The conventional wisdom is that green products don’t work as well as “non-
green” 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 top-loading 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
fiber, such as Weyerhaeuser’s 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, Toyota’s 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, isn’t easy. According to
popular culture experts, green marketing must appear grass-roots 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 Armstrong’s moon landing (“That’s 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

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 world’s 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 award-winning 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 refueling stops—benefits 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 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 hookups and offer
flexibility for reconfiguration. With society’s increasing mobility and reliance on
electronics, solar power’s 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. Ford’s 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 Interface’s 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 minutes to dress up a room for any occasion. The tiles come in pizza-
style boxes for storage, and ease of use is FLOR’s primary consumer appeal.

Austin (Texas) Energy’s “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 Energy’s 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 power’s 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 “non-green”
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 efficiency’s 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 product’s consumer benefits. In
many instances, the environmental benefit was positioned as secondary, if mentioned at
all. Changes made in EPA’s Energy Star logo provide an example, illustrating the
program’s improved message calibration over the years. One of Energy Star’s 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 Isn’t All
You’re Saving,” touts economic savings as the chief benefit. This newest slogan also
encourages consumers to think implicitly about what else they are “saving”—the logo’s
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 Organic’s slogan, “Delicious produce is our business, but health is our
bottom line,” which communicates that pesticide-free produce is flavorful and healthy.
Likewise, Tide Coldwater’s “Deep Clean. Save Green.” slogan not only assures
consumers of the detergent’s cleaning performance, but the term “green” offers a double
meaning, connecting Tide’s cost saving with its environmental benefit. Citizen’s solar-
powered Eco-Drive watch’s slogan, “Unstoppable Caliber,” communicates the product’s
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.

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 don’t have
the expertise or ability to verify green products’ environmental and consumer values,
creating misperceptions and skepticism. As exemplified in the case of Mobil’s Hefty
photodegradable plastic trash bag described earlier, green marketing that touts a product’s
or a company’s 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 Splenda’s “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.”

We can derive from past research that green claims should be specific and
meaningful. Toyota recognizes the ambiguity of the term “green” and discourages its use
in its marketing of its gas-electric hybrid cars. One proposed slogan, “Drive green,
breathe blue” was dismissed in favor of specific claims about fuel efficiency, such as
“Less gas in. Less gasses out.” Further, environmental claims must be humble and not
over-promise. When Ford Motor Company publicized in National Geographic and other
magazines its new eco-designed Rouge River Plant that incorporated the world’s largest
living roof of plants, critics questioned the authenticity of Ford’s environmental
commitment given the poor fuel economy of the automaker’s best-selling SUVs. Even
the Prius has garnered some criticism for achieving considerably less mileage
(approximately 26 percent less according to Consumer Reports) than its government
sticker rating claims, although the actual reduced mileage does not appear to be
hampering sales. Nonetheless, green product attributes need to be communicated honestly
and qualified for believability (in other words, consumer benefits and environmental
effectiveness claims need to be compared with comparable alternatives or likely usage
scenarios). For example, Toyota includes an “actual mileage may vary” disclaimer in
Prius advertising. When Ford’s hybrid Escape SUV owners complained that they were
not achieving expected mileage ratings, Ford launched the “Fuel-Economy School”
campaign to educate drivers about ways to maximize fuel efficiency. Further, EPA is
reconsidering how it estimates hybrid mileage ratings to better reflect realistic driving
conditions (such as heavy acceleration and air conditioner usage).
3.1. Third Party Endorsements and Eco-Certifications

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 Agriculture’s “USDA Organic” certifies the
production and handling of organic produce and dairy products.

SOME ECO-LABELS AND CERTIFICATIONS

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 hotel’s 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 product’s 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, GreenOrder, a New York-based environmental consulting firm, has devised a
scorecard to evaluate clean-tech products marketed in General Electric’s
“Ecomagination” initiative, which range from fuel-efficient aircraft engines to wind
turbines to water treatment technologies. Only those passing GreenOrder’s criteria are
marketed as Ecomagination products, but critics have questioned GE’s inclusion of
“cleaner coal” (that is, coal gasification for cleaner burning and sequestration of carbon
dioxide emissions) as an “Ecomagination” product.

Consequently, when seeking endorsements and eco-certifications, marketers

should consider the environmental tradeoffs and complexity of their products and the
third parties behind endorsements and/or certifications: Is the third party respected? Are
its certification methodologies accepted by leading environmentalists, industry experts,
government regulators, and other key stakeholders? Marketers should educate their
customers about the meaning behind an endorsement or an eco-seal’s criteria. GE
recognizes that its cleaner coal technology is controversial but hopes that robust
marketing and educational outreach will convince society about cleaner coal’s
environmental benefits. On its Web site, GE references U.S. Energy Information
Administration’s statistics that coal accounts for about 24 percent of the world’s total
energy consumption, arguing that coal will continue to be a dominant source of energy
due to its abundance and the increasing electrification of populous nations such as China
and India.
3.2. Word-of-Mouth Evangelism and the Internet

Increasingly, consumers have grown skeptical of commercial messages, and

they’re 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 non-profit 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&G’s claims that consumers could save an average of $63 a year if they switched from
warm to cold water washes. ASE sent e-mail 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.

International online marketing consultant Hitwise reported that ASE’s e-mail

campaign increased traffic at the Tide Coldwater Web site by 900 percent in the first
week, and then tripled that level in week two. Within a few months, more than one
million Americans accepted the “Coldwater Challenge,” and word-of-mouth cascaded
through ten degrees of separation across all 50 states and more than 33,000 zip codes. In
October 2005, Hitwise reported that Tide.com ranked as the twelfth most popular site by
market share of visits in the “Lifestyle—House and Garden” category. No other laundry
detergent brand’s Web site has gained a significant Web presence in terms of the number
of visits.

P&G’s savvy implementation of “The Three Cs”—consumer value

positioning on money savings, calibration of consumer knowledge about cold wash
effectiveness via an engaging Web site, and credible product messages dispatched by
a respected non-profit group and consumers’ Internet networks—set the stage for
Tide Coldwater’s successful launch.
 CHAPTER - 4

STRATEGIES AND ADVANTAGES OF GREEN

MARKETING
 STRATEGIES FOR SUCCESS

Many marketers now grow their businesses by addressing specific environmental

issues that are most relevant to their consumers. In the process, they save money and
enhance corporate and brand imagery while ensuring future sales for their products. Use
the following strategies to create profitable new or improved products and packages that
balance consumers’ needs with environmental considerations.

1. Minimize Direct Environmental Impact

2. Use Sustainable Sources of Raw Material

The prospect of rapidly depleting stocks of natural resources and the resulting
reality of price increases create opportunities for alternative technologies and new
efficiency with product design. For example, paper doesn’t have to come from trees; in
fact, alternative sources may be preferable. Promising new sources include kenaf, a fast-
growing bamboo grown in the southern US, and hemp, which is naturally pest resistant,
can be bleached with peroxide instead of chlorine, and produces a fiber more versatile
than fiber from trees.

3. Source-Reduce Products and Packaging

In the Pollution Prevention Act of 1990, the United States Congress declared
"that pollution should be prevented or reduced at its source whenever feasible."
Since the cost savings associated with source reduction are roughly parallel to the amount
of packaging eliminated, the tenets of this law are not only good for the environment,
they are good for business. Less packaging also means less energy required for
manufacturing and transportation and less pollution from the production of packaging
itself.

To source-reduce, consider light weighting products and packages. For example,

S.C. Johnson’s steel aerosol cans use 35 percent less tin than the cans of the late 1980s.
Concentrate products. Super concentrated laundry detergents, including Lever Brothers’
Wisk Power Scoop, now account for half of the $2.1-billion powder laundry cleaners sold
in America.

Package in bulk for refilling. Refills used by all-purpose cleaners, to use less
packaging per product and save consumers money. Multi-purpose products such as
shampoo-and-conditioner-in-one also help to cut down on duplication.

4. Conserve Natural Resources, Habitats, and Endangered Species

5. Use Recycled Content

According to the Environmental Defense Fund, recycling:

• cuts pollution and conserves natural resources

• conserves energy
• can be cost-competitive with land-filling and incineration if sensibly designed and
implemented
• creates jobs and reduces costs in manufacturing sectors that are an important part
of our economy.

With the help of innovative technologies, the use of recycled content in consumer
products has skyrocketed in the last decade. Products that formerly boasted 10 percent
recycled content may now incorporate as much as 100 percent post-consumer content.
Where even as recently as five years ago, recycled content was limited mostly to paper,
glass, metals, and some plastic laundry bottles, now an entire array of high quality
products including clothing, garden furniture, paint, and motor oil are closing the loop.

6. Make Products Energy Efficient

Individuals directly consume about 40 percent of the energy used in the U.S. for
such things as powering cars, lighting, heating and cooling homes, and running
appliances. In the process, they contribute about 40,000 pounds of carbon dioxide
emissions a year. However, many thousands of pounds can be eliminated by simple
actions. In fact, the California Energy Commission estimates that cost-effective
investments could reduce total U.S. electricity demand by 40 percent to 75 percent.

7. Maximize Consumer and Environmental Safety

Scientific data and empirical evidence continue to link various illnesses with
consumer products made from synthetic chemicals. According to the EPA, formaldehyde
in wood paneling causes wheezing, organic gases in carpeting cause liver damage,
perchloroethylene used to dry-clean clothing causes headaches, and VOCs (volatile
organic compounds) in cleaning products cause nausea. Many illnesses can be traced to
indoor pollution, which has been proven to be ten times more toxic than its outdoor
counterpart.

Consumers’ concerns about product safety translate into opportunities for

alternative home construction and cleaning products.

8. Make Products More Durable

As demonstrated by historical sales pitches for Maytag Washers and Volvo Cars,
consumers value durable appliances and automobiles. Thanks to environmental concerns,
long product life will increasingly become a source of added value and an indicator of
quality and convenience in many other industries as well.

9. Make Products and Packaging Reusable or Refillable

The throwaway convenience culture is making way for reuse and refilling as
alternatives to land-filling, incineration, and even recycling.

10. Design Products for Remanufacturing, Recycling, and Repair

Landfill disposal bans are in force across the nation for such highly toxic items as lead-
acid batteries, tires, used motor oil, paints, and refrigerators. Due to such legislative
pressures as well as extended producer responsibility laws in Europe, a growing number
of manufacturers now design their products for remanufacture, recycling, and repair, and
help set up the infrastructures for doing so. Smart marketers are turning these imperatives
into opportunities to save money, enhance quality and get closer to their customer.

11. Make Products Safe for Disposal

12. Make Products and Packaging Compostable

In nature, everything is recycled. Waste for one organism becomes food for
another. According to EPA, 40 percent of our solid wastes are biodegradable materials
that can be effectively composted into humus, an organic matter that can enrich gardens
and agricultural soils. This has important implications for businesses, and a number of
innovative designers are developing products with this idea in mind.
RESULTS OF A SURVEY CONDUCTED IN THE USA
 THE SEVEN STRATEGIES OF GREEN MARKETING
SUCCESS

The currency of the green business world is innovation, flexibility, change and
heart. New rules have emerged from the cloud of green marketing dust kicked up in the
late 1980s and early 1990s. We know better what works - and what does not. Seven
strategies that work are listed in Exhibit 1.

OTTMAN CONSULTING’S SEVEN STRATEGIES

 GREEN MARKETING OPPORTUNITIES

Equipped with a better grasp of ecological issues, enlightened businesspeople

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

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

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

INCREASED MARKET SHARE –

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

BETTER PRODUCTS –
While much brand switching is conducted in the name of altruism, what attracts
many consumers to greener products is quite simply the prospect of higher quality: water-
saving showerheads slash energy bills, concentrated laundry detergents are easier to carry
and store, and nontoxic garden products are safer for children. Except these enhanced
primary benefits–of performance, convenience, price, and safety, for example–that
accompany environmental improvements to continue to propel the market for
environmentally preferable products in the years and decades ahead.
PERSONAL REWARDS –
Green marketing offers a rare opportunity to integrate one’s values into the
workplace. Creating products that are more in sync with nature allows one to personally
contribute to environmental cleanup and help ensure a more secure future for our
children.
A mind once expanded never goes back to where it was. No longer content to
promise consumers that their clothes will become "whiter than white" or breath that is
"fresher than fresh", green marketers–like their bosses who manage for a double bottom
line–cultivate higher levels of satisfaction and reward. They offer their consumers the
prospect of healthier, more fulfilled lives, and the power to make the world a better place.
 CHAPTER - 5

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

The research conducted for this report is based on secondary resource with the help of
officials of five companies. Every company has its own environmental strategy and thus
the efforts made by each company can not be measured on a common scale. Thus the
research is totally based on the interviews conducted which have been mentioned below.
These officials helped me with the research by discussing their environmental policies
and the strategies related to them as to how they reach out with these strategies to their
consumers. This often creates goodwill among the consumers about the products from
these companies. The excerpts from the interviews have been given below. The
companies and the officials who helped in this research were all from different fields
ranging from Information Technology to Telecomm and Manufacturing to FMCG. The
list of the companies and officials is given below:

• Suzuki Motorcycles – Mr. Abhishek Sinha, Manager - Human Resource.

• Bharti Airtel – Mr. Gaurav Tyagi, Manager – Marketing.
• IBM India – Mr. Shantanu Varma, Country Manager.
• PepsiCo India – Ms. Anupama Priyadarshini – General Manager.
• Kapoor Light Life Style – Mr. P. Rajasekhar – Vice President

The interviews focused mainly on one thing i.e. how the consumer has become aware
about the various hazards in the environment. The consumer today cares about the
environment and likes to go for environment healthy products. Also the companies have
to focus on a greener environment within their infrastructure for the well being of their
own employees.

The interview was then analyzed and on the basis of this analysis this report was
structured. The excerpts from this interview are given below.
Mr. Abhishek Sinha, Manager (HR), Suzuki Motorcycles:

On plant area and production capacity:

“SMIPL manufacturing plant installed in Gurgaon (Haryana) having the annual plant
capacity of 1,75,000 units. We have got total land area of 37 acres and out of which
presently our plant is constructed in 6.5 acres of land and remaining area is left for the
land development and future expansion.”

On the priority given to the cleanliness of the environment at Suzuki Motorcycles:

“At Suzuki, the philosophy of keeping “environment first” is properly percolated

downwards. To comply with all applicable legislations and setting standards thereof
remains only a beginning. We thrive to discover and invent mechanisms for better
environment management systems and it’s a continuous process which is managed by a
separate wing of experts and specialist in the field.”

On any new environmental measures adopted by Suzuki:

“The biggest testimony of Suzuki’s commitments towards “environment first” is seen in

the new plant of Suzuki two wheelers at Gurgaon which is built to be a Zero discharge
plant.”

On the Lighting and material used by Suzuki:

“We have embraced Natural light optimization system and water harvesting systems
besides several other measures to create better and cleaner environment around us. All
packaging material used by Suzuki is re-cycleable. A constant flow of internal
communication on environment related issues not only creates awareness amongst
employees but also helps in inculcating ‘an environment friendly’ value system.”

On environmental measures taken for the benefit of the employees:

“To take care of the health of all our employees, we maintain all international parameters
and standards for drinking water, treated water, ambient air shop floor, office and the
outside. We keep updating all these standards of health and welfare of employees through
a team of well qualified personnel in the R & D laboratory.”
Mr. Shantanu Varma, Country Manager, IBM India:

On Challenges, products and softwares developed by IBM for addressing the

environmental issues:

Around the world, there is an increasing awareness that human activity may threaten
delicate ecological systems. From evidence of global warming to concerns about water
and soil toxicity, individuals and groups are asking what they can do to reduce their
environmental impact. We at IBM provide solutions for different organizations facing
ecological problems. The challenges have become clear: the need for clean water and air;
affordable and reliable delivery of energy; the dwindling supply of fossil fuels; the reality
of climate disruption and its implications for future generations.

On the approach adopted by IBM towards a cleaner and greener environment:

At IBM, our approach is twofold: we are working to make our existing products and
processes more efficient for both the environment and for business, while also developing
new innovations that can accelerate the adoption of products and services that have lesser
environmental impact.

On any particular agenda or priority list followed by IBM towards addressing

environmental issues:
Today's energy- and climate-related issues are at the top of our strategic agenda. We
recognise that information technology plays an extremely important role in helping solve
the myriad of ecological challenges faced by the global society—such as conserving our
scarce resources even as global demand skyrockets, reducing pollution, minimizing the
environmental impact of our activities, and enabling safe and renewable alternative
sources of energy.

On any new ecological services that IBM offers:

We have focused a lot on water related issues because IBM’s Institute for Business Value
conducted a survey of more than 100 public and private sector executives. About 77
percent of respondents said they consider water management “extremely important” to
their organizations, and 71 percent expect, over the next five years, for water to create
more business cost and complexity. Thus we came up with some services that would
address the problems related to water.
• Natural Water Resources - Provides sensor data integration, analysis and
visualization to enable the measurement, modeling and management of water
levels, usage and quality in natural water resources.
• Water Utilities - Enables water providers to make rapid decisions regarding
business processes and operational efficiency to maximize their return on
investments as well as foresee and quickly respond to contamination issues and
emergencies.
• Water Infrastructure - Provides sensing systems for managing water
infrastructure, such as levee oversight management and flood control.
• Water Metering - Improves management of water supply and demand by
integrating data between the dozens of stakeholders involved. Provides all
stakeholders with consistent, real-time information to help them work together to
make critical decisions about water supply in a geographic region.
• Green Sigma for Water - A business consulting service that identifies where
water is being used, measures and monitors usage, and creates process
 improvements to reduce water use. IBM pilots have achieved reductions in water
usage of 30 percent.

On initiatives taken by IBM for a greener environment:

As part of IBM's Big Green 2.0 initiative, we are continually looking at ways to assist
business in running their IT operations with greater efficiency and sustainability. The
project Big Green tackles the problem of the Global Energy Crisis. Here we address the
problem of energy conservation with the efficient use of IT. We have developed various
software solutions which help the organizations in running their systems by using
minimal energy resources.
Ms. Anupama Priyadarshini, General Manager, PepsiCo, India:

On policies adopted by PepsiCo:

PepsiCo India is striding ahead rapidly towards enabling the global vision to be the
world's premier consumer products company focused on convenience foods and
beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it
provide opportunities for growth and enrichment to its employees, business partners and
the communities in which it operates.

On Step taken towards replenishing water as they are more into beverages:

PepsiCo is committed to minimizing the impact of its business on the environment and
recognizes that corporations can play a key role in using scarce resources such as water
with care and responsibility.

While agriculture utilizes the bulk of fresh water in India (83%), industry uses 6% of
which the beverage industry uses but a mere 0.04%. But every drop counts, and PepsiCo
India's primary focus in its beverage and snacks plants has been on conserving water at
each stage of the manufacturing process.

In 2003, PepsiCo India embarked on its quest to achieve positive water balance by
2009. That means PepsiCo India will conserve, recharge, and thus replenish more water
in its plants and in its communities, than the total water it uses to manufacture beverage
products.
 PEPSICO’S WATER BALANCE

On initiatives taken by PepsiCo for waste management:

PepsiCo India continues to strengthen its Solid Waste Management initiatives in

partnership with Exnora, an environmental NGO. This award winning, income generating
partnership currently impacts more than 1,00,000 people in Tamil Nadu, Andhra Pradesh
and Haryana will reach out to more than 2,00,000 people in 2008.

Despite the creation of a detailed policy on Solid Waste Management and Handling rules
in 2000, very few municipalities in the country were able to completely comply with
these rules. PepsiCo India and EXNORA effectively implemented a model project in
Pammal district in Tamil Nadu that adhered to the Government policy on waste
management. The project created a visible difference in the local environment of the
region.

PepsiCo India’s foods division, Frito Lay, also generates biofuels from waste in its plants
thus reducing methane emission and 875 MT of CO2 emission annually, in addition to
achieving 14% reduction in energy use. New capacity expansion in plants has been
designed to impact further reductions in water, power and fuel.

On PepsiCo’s partnership with farmers:

PepsiCo's involvement in Indian agriculture stems from its vision of creating a cost-
effective, localized agri-base in India by leveraging farmers’ access to world class
agricultural practices. PepsiCo India worked with farmers and State Governments to
improve agri sustainability, crop diversification and raise farmer incomes. PepsiCo
helped transform the lives of thousands of farmers by helping them refine their farming
techniques and raise farm productivity, and customized solutions to suit specific
geographies and locations.

The most ambitious project is a joint programme, launched in 1989, between PepsiCo
India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries
Corporation (PAIC) in Chandigarh. The programme focuses on evolving agricultural
practices to help Punjab farmers produce internationally competitive products. Over the
last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to
develop a high quality potato seed programme.

On partnership with TERI (The Energy and Resources Institute):

TERI was established in 1974 with the purpose of tackling and dealing with the immense
and acute problems that mankind is likely to be faced with in the years ahead on account
of the gradual depletion of the earth’s finite energy resources which are largely non-
renewable and on account of the existing methods of their use which are polluting.Over
the years the Institute has developed a wider interpretation of this core purpose and its
application and has created an environment that is enabling for the development of
solutions to global problems in the fields of energy, environment and current patterns of
development, which are largely unsustainable. The Institute has grown substantially over
the years, particularly, since it launched its own research activities and established a base
in New Delhi, its registered headquarters. The central element of TERI’s philosophy has
been its reliance on entrepreneurial skills to create benefits for society through the
development and dissemination of intellectual property. The strength of the Institute lies
in not only identifying and articulating intellectual challenges straddling a number of
disciplines of knowledge but also in mounting research, training and demonstration
projects leading to development of specific problem-based advanced technologies that
help carry benefits to society at large. This association helps us in addressing the
conservation of energy issue.
Mr. Gaurav Tyagi, Manager (Marketing), Bharti Airtel:

On Airtel’s infrastructure and expansion:

The company is a part of Bharti Enterprises, and is India's leading provider of

telecommunications services. The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBU’s) - mobile services, broadband &
telephone services (B&T) & enterprise services. The mobile services group provides
GSM mobile services across India in 23 telecom circles, while the B&T business group
provides broadband & telephone services in 90 cities. The Enterprise services group has
two sub-units - carriers (long distance services) and services to corporates. All these
services are provided under the Airtel brand.

On initiatives taken towards building a better and greener environment:

We generate e-bills which support the cause “Save Paper”. If a customer doesn’t mind
not receiving bills on paper we send him E-bills on his mail. We try and address as many
customers as possible and try and make them understand that it would be better if they
received e-bills as it would reach them quicker and more importantly save paper and help
the environment. Up till now we have had a great response from the consumers which
show how environment conscious they are.

On any more initiatives taken up by Airtel:

We are a telecom company and so we do not have a lot of initiatives as we don’t need
them but the Bharti Group has a 50:50 Joint Venture with DE Rothscheld. In addition to
being the world’s second largest producer of fresh fruits & vegetables, India is also
amongst the lowest cost producer of farm products. To capitalize on such inherent
advantages, Field Fresh Foods plans to employ the world’s best practices and technology
to work towards converting India into a preferred “World Food Basket”. As part of its
commitment to the green field project, the company plans to set up a world-class “Agri
Research Center” and a “Model Farm” in Punjab in the first phase. The state of the art
agri research center will primarily carry out research on hybrid seeds and agro farming
techniques. The research center will work towards the identification and adoption of
conventional and emerging technologies and promote their “On Field” usage to further
enhance agricultural productivity in an environmentally sustainable manner.
Mr. P. Rajasekhar, Vice President, Kapoor Light Life Style:

On plant area and production capacity:

“We don’t have a manufacturing unit. All our products are imported and then assembled
in our assembling unit. The products that we make are outsourced in various parts to
different vendors who after making those parts send them back to us. After this our
assembling unit takes over and assembles the product as a whole.” We have a work force
of 70 people in our assembling unit in Okhla, New Delhi.”

On the priority given to the cleanliness of the environment at Kapoor Light Life
Style:

“We use dies and colours which are non toxic. Also the materials used are all recyclable.
We also have proper waste disposal facility in our assembly unit and we take it as our
endeavour to keep the environment clean and green.”

On the materials used by Kapoor Light Life Style:

“We are the oldest and most trusted lighting company in India. We understand that our
customer expects us to use the best material and at the same time he is well educated and
thus understands the need of a clean environment. We thus use recyclable and bio
degradable materials only in our products. Our product mainly consists of fabric, metal,
non toxic dies and glass. We DO NOT use plastic in our products. The crystals that we
use are electro statically charged and thus do not allow dust to settle on them.”

On the packing material used:

“We make it a point to use recyclable packing material for our products. These materials
do not harm the environment in any way and are completely environment friendly.”

CHAPTER - 6

CONCLUSION
AND
RECOMENDATION
 CONCLUSION
Green marketing should not neglect the economic aspect of marketing. Marketers
need to understand the implications of green marketing. If you think
customers are not concerned about environmental issues or will not pay a
premium for products that are m o r e e c o - r e s p o n s i b l e , t h i n k a g a i n . Y o u
m u s t f i n d a n o p p o r t u n i t y t o e n h a n c e y o u product’s performance and
strengthen your customer's loyalty and command a higher price. Green
marketing is still in its infancy and a lot of research is to be done on green marketing to
fully explore its potential.
 RECOMMENDATION

• Reduce production of harmful goods or by-products

• Modify consumer and industry's use and/or consumption of harmful goods
• Ensure that all types of consumers have the ability to evaluate the environmental
composition of goods

What we should do:

a) Less use of polythene
b) Less use of mobile phone
c) Crush plastic bottle after use
d) Use disposable items
e) Save water
f) Save fuel
g) Avoid smoking
 REFERENCES

Books:
1. Green Marketing New Hopes & Challenges- By Dr. Vemuri Laxmi Narayna
2. The New Rules For Green Marketing- By Jacquelyn Ottman (Published by Berett
Koheler)

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_marketing_challenge
.php
8. http://www.plentymag.com/features/2006/11/green_marketing_machine.php
9. http://blog.futurelab.net/2007/02/green_marketing_leverages_soci.html
10. http://www.kidsfirst.org/kidsfirst/html/info/greenm.htm
11. http://marketinggreen.wordpress.com/2007/01/23/green-marketing-through-
behavioral-targeting/
12. http://www.americanchronicle.com/articles/viewArticle.asp?articleID=21141
13. http://www.roncastle.com/green-marketing-ideas.htm