1. ENVIRONMENT SCANNING Natural Environment GROUP NO. 8 CHITTRESH DHAWAN DEEP DAGA HIMANSHU ARORA NIKHIL SINGHVI SWATI SINGHAL

2. CONTENTS Environment Scanning Approach Natural Environment Trends at HUL What Customer Wants Packaging Water Footprint Reducing Wastes Greenhouse Gases Future Marketing Strategy Ethical Aspect

3. Environmental Scanning Approach Does trend create a marketing opportunity ? Identify relevant environment al factors and trends Decide how to take advantage of opportunity Does trend a pose a marketing threat Decide how to minimize threat Assess impact of trends on markets & marketing activities

4. Constituents of Natural Environment Ecology Natural Resources Climate Natural Environment Natural Resources: Firms are concerned with the availability of raw materials They need to know whether there will be a shortage in any of the critical raw material. They also need to know the trends governing their cost Ecology Firms need to know the nature and dimensions of environmental regulations and to what extent these factors will affect their business prospects Climate Important factor for firms with products whose demand depends on climate Firms depending on climate-dependent raw materials will be particularly concerned with this factor. Decide on production locations and marketing territories appropriately.

5. WHAT CUSTOMER WANTS

6. PACKAGING WHAT HAS BEEN DONE TILL NOW REDUCE An approximate 9.5% reduction in weight per consumer use over 2011-12 compared to 2010, achieved through a combination of light weighting and material design optimisation REUSE Introduced refills in several markets during 2012, including China, India, South Africa and the UK RECYCLE 3,126 tonnes of post-consumer recycled materials incorporated into rigid plastic packaging 3.5% increase in recycling and recovery rates, over the 2010 average Recycling and Recovery Index (RRI), averaged across top 14 countries

7. WATER FOOTPRINT In 2012 One Rinse products were used in 1.4 billion washes in 28.7 million households worldwide, a 66% increase on 2010 13 million fewer m3of water abstracted in 2012 than in 2008 (a reduction of 25% per tonne of production) Products like dry shampoo , hand sanitizer reduce the consumption of water and are relatively new in the market

8. REDUCING WASTES 76,000 fewer tonnes of total waste in 2012 than in 2008 7 new factories bound to open in 2013 with eco-efficient designs to reduce waste up to 50 % Reducing the environment impact of sachets Turning Sachet waste into fuel through Pyrolysis

9. GREENHOUSE GASES Concentrating the laundry products helps to reduce greenhouse gas emissions. 14% of portfolio made up of concentrated and compacted products at end 2012, compared to baseline of 4% in 2008 Increasing the use of energy from renewable sources at our manufacturing sites. a reduction of 31.5% per tonne of production from 2008 to 2012 Reduced energy consumption in offices 11% reduction in energy (kWh) purchased per occupant since 2010

10. FUTURE MARKETING STRATEGY LOHAS is an acronym for Lifestyles of Health and Sustainability, a market segment of people who are focused on health and fitness, the environment, personal development, sustainable living, and social justice. The above table means that the role of reference groups in generation of opinions about a product or company holds the highest percentage. HUL can target the segment of LOHAS as they act as opinion leaders. They can adopt the 4 Ps in the green marketing context. They can also incorporate the triple bottom line concept.

11. FUTURE MARKETING STRATEGY 4 Ps IN GREEN MARKETING To innovate and offer products that follow the policy reduce, reuse and recycle Consumers are willing to pay a premium if the product is helping in conserving natural resources To make available them at a location which reduces the frequency of travel of the customers, hence reducing the fuel consumption To communicate specifically the benefits of these products to the opinion leaders

12. ETHICAL ASPECT Tackle Green-washing issue in the marketing Not mis-leading consumers by printing false green claims Mandate environmental reporting Start reflecting the externalities caused by producing products ( deforestation floods etc) into their financials

13. THANK YOU