Green Marketing in India –Way ahead to sustainability

Shifali Mandhania

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Objectives of the study

1) To introduce the terms and concepts of green marketing;

2) To discuss why going green is important; 3) To know why the manufacturers and marketers launch

eco-friendly products and are adopting a green marketing philosophy;

4)To mention some of the problems with green marketing.

5)Find out ways to improve consumer appeal for environmentally preferable products through different marketing strategies

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Green Marketing

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

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Green Products

• Products those are recyclable, reusable and biodegradable,• Products with natural ingredients,• Products containing recycled contents, non-toxicchemical,• Products contents under approved chemical,• Products that do not harm or pollute the environment,• Products that will not be tested on animals,• Products that have eco-friendly packaging i.e. reusable,refillable containers etc.

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Green Marketing – adopts by the firms

Opportunities ( Surf Excel and LG)

Government Pressure (Plastic ban)

Competitive Pressure (Xerox's "Revive 100% Recycled paper“)

Social Responsibility (HSBC, Walt Disney, Coca Cola)

Cost or Profit Issues05/05/2012 5

Ginsberg and Bloom :Companies can be classified

1.Lean Green- These companies adopt the green practices but they do not focus to publicise these initiatives.

2. Defensive Green-This kind of marketer use green marketing as a precaution to avoid the crisis situation or to counter the competition..

3. Shaded Green- The companies those adopt shaded green strategy invest in long-term, environmentally friendly processes that require a significant financial and nonfinancial dedication.

4. Extreme Green- Extreme green adopt green marketing mix in the holistic manner.

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Global Trends

•Pressure on governments to lead green regulation

• Increased desire to buy green

• Transparency and choice driving buyer behaviour

• Consumers receptive to green advertising

• Interest in big-ticket green products

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Challenges in green marketing

Need for Standardization

New Concept

Green Myopia

Costly technology

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Possible requirements Government could put in place

Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland

■ Most Important ■ 2nd most important

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Plan to spend more, less, or the same amount on “green” products and services?

Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland 05/05/2012 10

How much more, in percentage terms, are you willing to spend on a productbecause it is green?

Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland 05/05/2012 11

What do you think are the biggest challenges to purchasing green products or services?

■ Biggest Challenge ■ Second Biggest Challenge

Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland 05/05/2012 12

Which of the following has the greatest impact on likelihood ?

Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland

■ Second Biggest Challenge ■ Biggest Challenge

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Key findings

Consumers are increasingly concerned about environmental issues, particularly energy use

Consumers want to buy from green companies and plan to spend more on green products

Packaging influences green purchasing

Consumers are less likely to cite hurdles to buying green compared to last year; but price and lack of choice remain challenges

Consumers are more likely to purchase green products in the household, grocery, personal care, and packaged food and beverage industries. Auto and tech are poised for green growth

Consumers are looking for public leadership on green innovation

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Untapped potential

A dismal 16% of businesses in India in the food and beverage sector and 18% in the clothing and footwear industry produce or trade Green products.

The home electronics segment, however, clocks a more impressive 60%. In addition, the vast majority (76%) either do not have a policy or guideline to minimize their impact on the environment in place or are failing to clearly communicate they have one. (Source :TÜV SÜD Asia Pacific)

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Green Products in India

I Wipro Infotech (Green It) was India's first company to launch environment friendly computer peripherals.

Samsung, was the first to launch ecofriendly mobile handsets (made of renewable materials) – W510 and F268- in India.

Oil and Natural Gas Corporation Ltd (ONGC), India’s largest oil company, has introduced energy-efficient Mokshada Green Crematorium, which saves 60 to 70% of wood and a fourth of the burning time per cremation.

Reva, India’s very-own Bangalore-based company was the first in the world to commercially release an electric car.

Honda India introduced its Civic Hybrid car

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Green Products in India ITC has introduced Paperkraft, a premium range of eco-friendly business paper..IndusInd Bank installed the country’s first solar-powered ATM and thus brought about an eco-savvy change in the Indian banking sector.

Suzlon Energy manufactures and markets wind turbines, which provide an alternative source of energy based on wind power. This green initiative taken by the company is extremely important for reducing the carbon footprint.

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Various Strategies taken by Several Companies acrossNokia Corporation

BSNL

Indian Toy Industry

OORJA

Green Shirt by Several Indian Companies

Tamilnadu Newsprint and Papers Limited (TNPL) was

awarded the Green Business Leadership Award in the pulp and paper sector for the year 2009-10,

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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.

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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

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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINK AMONG PLAYERS

CONSUMER

PRODUCER STATEGREEN ENVIRONMRNT

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Companies must remove these five barriers—namely,

Lack of awareness, negative perceptions, distrust, high prices, and low availability.

Increase consumers’ awareness of green products, improve consumers’ perceptions of eco-products’ quality, strengthen consumers’ trust, lower the prices of green products, and increase these products’ availability.

AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-

Producer role

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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-

Consumer Role Conscious effort to educate themselves on the green advantages and

make an informed choice. Should look at the Bigger picture and not be guided purely by price and personal gains.

Consumers should actively participate in green initiatives launched by Corporates, government and NGOs.

Consumers should shed inhibitions and preconceived notions about not using eco-friendly products. They should understand that every positive step contributes to the cause and shed the mentality that they alone cannot bring about the change.

Abide by the green regulations and not be guided by personal short term gains.  

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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-

Government Role

There has to be a stimulus provided by the Government to encourage and support the manufacturers who are manufacturing green products by providing subsidies.

Financial assistance should be given in the form of easy loan facility to equip for manufacturing green products.

Tax incentives or Tax holidays will also help the small and medium scale manufacturers as green marketing is costly.

Awards and recognition should be given to those who successfully practice green marketing which becomes a motivating factor for others to implement it.

Social advertising to be carried out on a large scale through various medias to promote environment friendly practices, to promote the consumption of green products.

Promotion of Eco-mark or Eco-labeling has to be done to create awareness not only amongst manufacturers but also consumers

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Conclusion

Green marketing helps in the effective outcomes like cost cutting, employee satisfaction, waste minimisation, society welfare for the companies as well for society also.

Green products and services not only help tackle pertinent environment issues but make genuine business sense. Over the next five years, this is only going to intensify. With a comparably limited number of Green products and services currently on the market, firms that act quickly to capitalise on this growing trend will reap significant rewards

Only thing required is the determination and commitment from the all the stakeholders of the companies. It is the right time to adopt the concept of sustainable development in the marketing mix of the companies and integrate them to save the planet from the upcoming risk.

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THANK YOU

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