Green Marketing in India –Way ahead to sustainability

Presented in National conference on Marketing SIES 20Jan 2010

Artee Aggrawal

Richa Chaudhary

Dr. R. Gopal

GO-GREEN STRATEGY AND DIFFERENT STAKEHOLDERS

PLANET +

PEOPLE +

PROFIT

PEOPLE + PROFIT

PROFIT

Twentieth Century

Late Nineties

EighteenthCentury

GREEN MARKETING

Green Marketing has been an important academic research topic since its inception.

Attention was drawn to the subject in late 1970’s when the American Marketing Association organized a workshop on Ecological Marketing in 1975

First definition

The implementation of marketing programs directed at the environmentally conscious market segment (Henion 1976)

Evolved to

The process of planning, implementing and controlling the development, pricing, promotion and distribution of products in a manner that satisfies the following criteria-

Customer needs are metOrganizational goals are attainedAnd the processes are compatible with

ecosystems (Fuller 1999)

According to Ottman (1993) Green Marketing serves two key objectives-

To develop products that incorporates consumer need for convenience, affordable prices and performance while having minimal impact on the environment

To project an image of high quality, including environmental aspects, both in regards to product attributes and the manufacturer's track record for environmental compliance.

First consumer survey was conducted by Vandermerwe and Ollif stating that more then 92% European multinationals clamed to have changed their products in response to green concern.

Green products introduction increased by more then double to 11.4% of all new household products in the USA between 1989 and 1990 and continued to rise to 13.4% in 1991

However this optimistic start to the 1990s was not sustained (Peattie and Crane 2005).

A 2001 survey conducted by Roper indicates that during the 1990’s approximately 2/3 of all consumers believed that environmental protection and economic development can go hand in hand. While perception is important, actual behavior is crucial to market success.

. A report (conducted by Mintel 1995) showed only a very slight increase in green consumer since 1990 and a significant gap between concern and actual purchasing.

There are several factors contributing to it- Price Quality Convenience etc So this decrease in frequency and prominence of

Green claims have led the world to “Greenwashing phenomenon”

This is when a company hides the true effect of its products or actions on the environment, by making it seem as though the company is very much concerned about the environment.

WORLD IS AT A TIPPING POINT WAITING FOR A GREEN REVOLUTION

ARE WE FACING GREEN MYOPIA ??? UNLESS IT IS ADDRESSED WE CAN’T BRING CHANGE

AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINK AMONG PLAYERS

CONSUMER

PRODUCER STATE

GREEN ENVIRONMRNT

GREEN MARKETING ENCOMPASES-

BEING GREEN

SPREADING GREEN

Advertisement SCM

Our definition

Green Marketing is an art of creating an awareness among consumers about carefully planned and developed eco compliance products and services using competitive pricing, promotion and distribution strategies that leads to increased uptake of product and services, increase in ROI and finally consumer satisfaction.

MARKETING GREEN IN INDIA

According to a survey conducted by BT-AC Nielsen ORG-MARG, Oil and petroleum sector is considered the greenest sector in India. ONGC is the greenest company followed by Reliance Industries.

India is a world leader in green IT potential. According to Global enterprise survey Indian respondents scored over respondents from 10 other countries in expecting to pay 5% or more for green technology if its benefits for the environment and return on investment (ROI) is proven.

TATA GROUP OF COMPANIES

India’s oldest industrial house is stepping up efforts to reduce its carbon footprint across the value chain — from manufacturing processes to distribution networks to ecofriendly consumer products. 

Tata Steel aims to reduce carbon dioxide emissions at its Jamshedpur plant from the current 1.8 tonne to 1.7 tonne per tonne of liquid steel made by 2012. The ideal global benchmark though is 1.5.

Tata Motors is setting up an eco-friendly showroom using natural building material for its flooring and energy efficient lights. Tata Motors said the project is at a preliminary stage. 

The Taj chain, is in the process of creating eco rooms which will have energy-efficient mini bars, organic bed linen and napkins made from recycled paper. But there won’t be any carpets since chemicals are used to clean those. And when it comes to illumination, the rooms will have CFLs or LEDs. About 5% of the total rooms at a Taj hotel would sport a chic eco-room design. 

One of the most interesting innovations has come in the form of a biogas-based power plant at Taj Green Cove in Kovalam, which uses the waste generated at the hotel to meet its cooking requirements. 

Launched a low-cost water purifier made from natural ingredients.

Another eco-friendly consumer product that is in the works is Indica EV, an electric car that will run on polymer lithium ion batteries. Tata Motors plans to introduce the Indica EV in select European markets this year.

Tata Steel said it is currently working on more than 17 CDM projects with Ernst & Young and these projects are at various stages of approval at United Nations Framework Convention on Climate Change.     Tata Power has said that of the total power it would generate in the next 10 years, 25% would be from renewable energy sources.    Further Tata Motors is collecting environmental and energy data across its dealer and supply chain to compute their carbon footprint and identity opportunities for cutting down on carbon dioxide emission.     

These are some of the success stories but if you look at it from Indian consumers (or consumption pattern) perspective-

There is very less uptake of solar batteries and equipments (cooker etc).

Recently launched Samsung solar mobile Guru is not finding foot in market due to inconvenience in solar charging.

Battery operated LG TV failed in Indian market to due to sound quality

Very less consumption of CFL bulbs due to high cost.

Consumption of plastic bags is very high in both rural and urban sector etc.

Factors differentiating the Indian consumers from

consumers of developed countries-

India is a cost driven market Low level of awareness Degree of New product acceptance Less developed means of communication Language barriers Use of redundant technologies in most of the companies

in India. Percentage of LiteracyIndian consumer want ready to use technology. They don’t

give review of product, no feedbacks, no complaints and no use of warranty cards. Also there is very less brand loyalty among Indian consumers.

Avenues in India Use of solar energy. India gets plenty of sunlight due to

its proximity to the equator. It receives an annual average of 4-7KWh per day for every square meter, meaning the country receives a lot more sunlight than what it can use in a year, making it an abundant source of power.

India has the best opportunity to be in the forefront of the sustainable world with our Fair Trade certifications & organic cotton certifications. Developing an organic agricultural business we can improve our food chain, agricultural programs & health issues.

Handicraft and handmade papers, huge market for paper bags to replace plastic bags

Conclusion

Green marketing assumes even more importance and relevance in developing countries like India & Pakistan.

The significance India will have on the the world in the future will be extraordinary, we’ve only scratched the surface.

The thing that remains to be seen is the importance green business has in India.

Tackling mass poverty is the first thing that is happening, and it should be the first thing that the country emphasizes.

India will be an economic powerhouse, and could be a leader in green business if they choose to be. The direction that business takes in India will have massive impact on the world.

If business leaders there recognize the vast potential that green business has, and then decide to invest time, money, and effort, the world would only benefit.

India is in a very unique position right now, they could either lead the world, or potentially aid in its destruction.

THANK YOU

SPECIAL THANKS TO- PRAMOD KUMAR (Senior Design

Engineer, NTPC Delhi) SWAMYENATH CHENNA (Student

DYPDBM)AND NEHA JANGID (Student DYPDBM)