Volume 1, Special Issue VI, December 2017 Monthly Journal ...is, trade promotions. Trade promotion...

Print-ISSN-2320-5504

E-ISSN-2347-4793

Volume 1, Special Issue VI, December 2017

Monthly Journal with Impact Factor:6.58

(Sl.No: 45797)

Published By: Asia Pacific Publishing, Bangalore, India

http://ugc.ac.in/journallist/ugc_admin_journal_report.aspx?eid=45797

Print-ISSN-2320-5504

E-ISSN-2347-4793

Volume 1, Special Issue VI, December 2017

Monthly Journal with Impact Factor:6.58

Editor In Chief

Dr.M.Nishad Nawaz, MBA,MHRM, M.Phil, PGDCA,

PGDIAM, Ph.D

College of Business Administration, The Kingdom University

Bahrain.

Disclaimer

The contents of papers are the sole responsibility of

the authors, and publication shall not imply the concurrence of

the Editors or Publisher

SN Title of the Article & Name of the Author Pp

1 DIFFERENCES IN EVALUATION OF TRADE PROMOTIONAL SCHEMES-

A COMPARISON OF SELF-SERVICE STORES VS. NON-SELF SERVICE STORES

*R.Venkatesakumar, **D. Ravindran & ***A. Agasthiya

1-5

2 ARE SUSTAINABILITY DREAMS CONVERTED INTO ACTION? –

A STUDY ON MSMES IN TIRUNELVELI DISTRICT

K. Balasubramanian* Dr. S. Madhavan**

6-16

3 A STUDY ON THE EMERGING TRENDS OF GREEN MARKETING MIX

*Cisma.F.

17-21

4 AWARENESS ABOUT SOCIETAL MARKETING STRATEGIES OF HUL AND ITS

IMPACT ON CONSUMER PREFERENCE FOR ITS PRODUCTS

*Dr. M.Bhoopal & **Mrs. R.Deiva veeralakshmi

22-27

5 STRENGTHENING COMMUNITY WELFARE INITIATIVES: -

A BUSINESS PERSPECTIVE

* Dr Fayaz Ahamed

28-33

6 SUSTAINABILITY AND CHALLENGES OF ECOPRENEURSHIP-AN OVERVIEW

*Dr.G.MageshKuttalam, **S.Gayathri & ***S.A.RahmathAmeena Begum

34-40

7 GREEN FINANCE IMPLEMENTATION IN BANKS – A REVIEW

V. Govindaraja* and G. Ilankumaran**

41-46

8 A STUDY ON SUSTAINABLE MARKETING STRATEGIES OF APPLE GROWERS IN

JAMMU & KASHMIR

*M . Jagathish & *Prof. Dr.M. Wilson

47-52

9 GREEN MARKETING: CONSUMER ATTITUDE TOWARDS ECO FRIENDLY FAST

MOVING HOUSEHOLD CARE AND PERSONAL CARE PRODUCTS IN TIRUNELVELI

DISTRICT

*Dr. S. Makesh Kumar

53-58

10 PAPERLESS RETAIL MARKETS THROUGH E-TAILING

*Mrs. Jesura Pauline & **Dr. V. Darling Selvi

59-64

11 FUTURE OF MILK MARKETING CHANNELS -REALITIES AND IMPERATIVES FOR

SUSTAINABILITY

*Sunitha Prasad & **Sangameswaran R

65-71

12 SUSTAINABLE MARKETING PRACTICES BY TEXTILE INDUSTRY WITH SPECIAL

REFERENCE TO POTHYS, TIRUNELVELI

*DR.R.SANGEETHA & **DR.S.A.SENTHIL KUMAR

72-76

13 COMMUNITY ORIENTED FARMERS ORGANIZATION FOR SUSTAINABLE GOAT

MARKETING: THE ROAD AHEAD FOR RURAL DEVELOPMENT

*Sunitha Prasad, **Sangameswaran R & *** Sathyaseelan M

77-84

14 A PRACTICAL APPROACH TO DETERMINE THE AWARENESS TOWARDS GREEN

COMPUTING AMONG THE COLLEGE STUDENTS IN TIRUNELVELI

*S.T.Suvaitharan, & **Dr.N.Rajalingam,

85-91

15 PEOPLES’ PERCEPTION ON RELATIONSHIP MANAGEMENT IN E-GOVERNANCE

CENTRES IN KOVILPATTI AND ITS ENVIRONS

*Mr.R.Thanga Ganesh (F9897) & *Dr.K.Pushpa Veni,

92-97

16 ANTECEDENTS OF GREEN BRAND EQUITY: AN EMPIRICAL APPROACH

*S.Vijay MallikRaj,** M.R. Karthikeyan & ***Dr.PC.Sekar

98-102

17 E-RECRUITMENT AND SELECTION –A BIRD’S EYE VIEW

Mrs. K. Veena

103-107

Asia Pacific Journal of Research

ISSN (Print): 2320-5504

ISSN (Online): 2347-4793

www.apjor.com Vol: I. Special Issue VI, December 2017

1

DIFFERENCES IN EVALUATION OF TRADE PROMOTIONAL SCHEMES-

A COMPARISON OF SELF-SERVICE STORES VS. NON-SELF SERVICE STORES

*R.Venkatesakumar,

**D. Ravindran &

***A. Agasthiya

*Associate Professor, Department of Management Studies,Pondicherry University, Puducherry – 605014

**

Research Scholar, Department of Management studies, Pondicherry University, Puducherry – 605014

***

Research Scholar, Department of Management studies, Pondicherry University, Puducherry – 605014

ABSTRACT

Indian Industries witness faster growth in the recent years and the retail sector is one of the significant and noticeable segment in

the industry. The retail segment in the country has immense potential due to the largest population size, affluent middle class,

rapid urbanisation and solid growth of internet. In particular, FMCG is evergreen and strong industry because of increasing

consumer demand. In order to seize that opportunities, companies are proposing various promotions to consumers, retailers and

sales force in order to gain significant market share. A handy tool to reach out the end link of the supply chain, viz., the retailers,

is, trade promotions. Trade promotion is a technique by which the manufacturers offers incentives to promote their products to

the retailers, in order to increase the consumer demand. These promotional activities build the relationship between the retailers

and the manufacturers and create a push from the retailer end to promote the products/ brands. However, firms and retailers do

differ in terms of the effectiveness and usefulness of the type of promotions.

This paper aims to bring out the perceived association between FMCG product categories and the suitable trade promotion

schemes by the retailers. The objective of the study is to find the perceptual difference on type of outlet on various product

category and the promotional schemes. The data has been collected from 500 retailers in different districts of Tamil nadu state.

The findings suggest that the self-service stores require different trade promotion schemes for different product category

compared with the non-self-service stores.

Keywords: Trade Promotions, FMCG Products, Store Type, Perceptual Map

1. Introduction

Sales promotion is a tool to attract positive responses from the customers to the firm’s business or to provide an incentive for the

existing customer to take a desired action. Sales promotion includes quite a lot of communication activities that are trying to offer

benefits or incentives to consumers, retailers, or other organizational customers to stimulate immediate sales. These efforts

attempt to arouse product interest, trial, or purchase. Sales promotions usually last for a stated time and are intended to achieve a

defined purpose. It is one among the seven aspects of Promotional Mix. The Main purpose of sales promotion is to stimulate,

motivate and influence the purchase of the firm’s customers. These momentary stimuli are offered usually at a time and place

where the buying decision is made. Sales promotions are very communal in the current competitive market conditions that are

increasing at the faster pace.

Trade promotion is a technique targeting the players in the distribution network, where the marketer offers the communication

along with the incentives in order to increase the consumer demand, to stimulate the market demand and to improve the

perception of product quality. Trade Promotions are the marketing efforts, targeting the retailers to promote their products by the

manufacturer. These activities enhance the relationship between the marketer and retailer. Trade promotional schemes include low

pricing, cash discounts, free point of purchase, displays, deal loaders, gifts, and visit to abroad and so on.

Indian Industries show growth at the faster pace and FMCG sector is one among the healthy growing industry because of

increasing consumer demand. FMCG includes all consumable goods other than pulses and grains, which the consumers buy at


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2

regular intervals in small quantities. Main items in this category are detergents, soaps, shampoos, toothpastes and brushes, packed

foodstuffs, household accessories, creams, oils, tea, coffee etc.

There are many limitations for the marketing department in managing trade promotions; certain trade benefits are passed to the

dealer’s level; few schemes are targeting the retailers; few other schemes aims to motivate the dealer sales force. Developing a

suitable scheme is always a challenging task for any marketers. The major problems faced by the manufacturers in giving trade

promotional schemes includes, timing of executing to the retailers, improper selection of trade promotion methods and the target

groups. This study deals in selecting appropriate schemes to the product category of fast moving consumer goods.

This study particularly examines the schemes such as quantity-based discount, trade reward contest, trade support by brand and

trade allowance support. Quantity based discount scheme is used to lock in customers in a highly competitive environment.

Quantity based discounts create commitment from the customer [retailers] to purchase certain amount of stocks within a time

span, thereby cut the competitor, by entering the retail space for a reasonable time period. It benefits the firm by locking the

customer [retailers] for a period, preserve /increase the market share, and prevent the new entrants. Volume discounts are often

offered by the seller to entice the buyer to purchase in bulk. Retailers often get better deals if they order more of the same

products.

Trade reward contest is a type of trade promotion schemes, where large grand prizes tend to attract more entries. It is a kind of

earn points with every purchase. This contest fixes the target and benefits the top achievers. Again, it motivates the retailers to

accumulate the firm’s brand and ultimately push the brand to the customers.

Trade allowances support is a discount scheme offered by the manufacturers to distribution channel members such as distributors,

wholesalers, retailers as short-term promotional incentives. Main objective of trade allowance is to effect a lower retail price to

stimulate the sales.

2. Review of Literature

Promotions are perceived differently by the quantum of offer made. Dickson (1984) suggest that price promotions work in the

short run because the consumers may use the regular price of the brand as a reference which are then induced by the lower deal

price to purchase the brand. Blattberg et.al (1995) highlighted that an existing research stream consider how the promotional

schemes are benefited to the customer, whereas the empirical results are mixed. Grewal et al (1998) study reported that when price

discounts are low, the consumers are likely to process less information extensively as it has little monetary value and also the

promotions should be presented in the percentage term when the levels are high as they are valued more highly than those

presented in dollars.

Davis et.al. (1992) examine the difference between pre and post-promotion brand evaluations at the individual level but find no

evidence that price promotions affect evaluations for frequently purchased branded packaged goods. Contrary to this finding,

Quilter (2007) found that the practice of raising prices to promote discounts has the risk of damaging brand trust. Neelam et.al

(2004) suggested that increase in the number of nuclear families and the growing number of working couples has resulted in

increased spending power.

Ailawadi et.al (1999) stressed that the manufacturers profit from promotion have increased at a stable rate but the retailers are

earning lower profits. Kincade (2002) said that the monetary support was regarded as the most significant promotion support than

other schemes. Miranda (2005) emphasized that overall satisfaction with the store does not influence the customer loyalty but it

can be influenced by travel distance, size of grocery bill, store signage and the level of sale assistance. Kaufman et.al (2006) found

that the manufacturer’s products are more attractive to retailer when the manufacturer and retailer relationship is stronger.

These contributions of previous research are taken into account for in-depth study of attracting the consumers through retailers,

thereby increasing the consumer demand for the manufacturers.

To explore the perceptual difference between the type of outlet on product categories and promotional schemes the following

hypothesis framed.

H1: there is a significant association between product categories and different schemes with respect to the type of outlet.

3. Research Methods

Sampling

The data has been collected using survey instrument from retailers all over Tamil nadu. The Sample consisted of 500 retailers

from 246 self-service stores and 254 non-self-service stores who were chosen using purposive sampling method. The procedure of

statistical analysis carried out using SPSS 21.


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Data Profile:

The data consists of 52% of the retail outlets taken from urban location and 38.4% of the retailers are from retail business as

family background; 26% of the respondent’s retail outlets are above 900 square feet area. Most of the retail outlets are operating

significant time in the market with 68.4% outlets operates more than 6 yrs. As far as the place is concern, 25.8% of the respondent

own the retail outlet where 42.8% are rented the outlet space. The correspondence analysis is done to find the association between

the two categories namely Promotional Schemes and Product Category.

4. Data Analysis

The type of outlet is categorized into two namely Self-service and non-self-service stores. The analysis is repeated to find the

perceptual difference among these outlets in preferring the schemes and product categories are as follows

Table 1: Correspondence Table for Self-service stores as type of outlet

Product Category Scheme

Quantity Based

Discount Scheme

Trade Allowance

Support- to Increase

Sales Scheme

Trade Reward

Contests Scheme

Trade Support By

Branding Scheme

Active

Margin

Household Care 18 53 11 8 90

Personal Care 29 16 12 0 57

Food and

Beverages 30 15 7 4 56

Healthcare -OTC 34 6 3 0 43

Active Margin 111 90 33 12 246

Table 2: Summary table for Self-service stores as type of outlet

Dimension Singular

Value

Inertia Chi

Square

Sig. Proportion of Inertia Confidence Singular Value

Accounted for Cumulative Standard

Deviation

Correlation

2

1 .455 .207 .876 .876 .053 .018

2 .152 .023 .098 .974 .059

3 .079 .006 .026 1.000

Total .236 58.105 .000a 1.000 1.000

a. 9 degrees of freedom

From the correspondence analysis summary table, it is evident that the two-dimension solution extracted with 97.4% variance in

the data and retained for the further explanation.

From the above figure, it is evident that retailers of self-service stores prefer trade reward contest for personal care category, Trade

allowance support scheme for household care. For the food/ beverages and Health care OTC, Quantity based discount scheme is

preferred.

Figure-1: Correspondence Analysis for scheme preference for product categories for Self Service Stores


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Table3: Correspondence Table for Non-Self-service stores as type of outlet

Product Category Scheme

Quantity Based

Discount Scheme

Trade Allowance

Support- to Increase

Sales Scheme

Trade Reward

Contests

Scheme

Trade Support

Branding

Scheme

Active

Margin

Household Care 10 38 3 7 58

Personal Care 13 45 10 16 84

Food and Beverages 49 21 8 3 81

Healthcare -OTC 22 1 8 0 31

Active Margin 94 105 29 26 254

Table 4: Summary table for Non-Self-service stores as type of outlet

Dimension Singular

Value

Inertia Chi

Square

Sig. Proportion of Inertia Confidence Singular Value

Accounted for Cumulative Standard

Deviation

Correlation

2

1 .553 .306 .902 .902 .047 -.070

2 .170 .029 .086 .988 .063

3 .065 .004 .012 1.000

Total .339 86.071 .000a 1.000 1.000

a. 9 degrees of freedom

From the correspondence analysis summary table, it is evident that the two-dimension solution extracted with 98.8% variance in

the data and retained for the further discussions.

From the above figure, it explains that non-self-service stores preferences are quite different from the self-service based one.

These stores expect Trade Support by Brand for the Personal care products, Trade Allowance support schemes for Household care

products, Quantity Based Discount scheme for Food and Beverages

5. Discussion and Conclusion

Schemes Self-Service stores Non-Self-service stores

Quantity Based Discount Schemes Health Care Food & beverages

Trade Reward Contest Personal Care Health care

Trade Allowance support Household Care Household Care

Trade Support by Brand Food/ Beverages Personal Care

The study findings support that there is no consensus among the retailers in evaluating and association of schemes across the

product categories. Presence of diverse view among the retailers is the key take-away point for the companies while developing

trade promotion schemes. Homogeneous trade promotions across markets may reduce the expected outcomes and need for

Figure-2: Correspondence Analysis for scheme preference for product categories for Non-Self Service Stores


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customization is the major outcome from this study. From the above results, we infer that companies should develop schemes

suitable for a product category. Moreover, there is another added moderator, type of outlet. Depends upon the type of the store, the

retailer preference is also varying.

When it is tested with respect to the type of outlet, some differences were found between the self-service stores and non-self-

service stores. The retailers of self-service stores prefer trade reward contest for personal care category, Trade allowance support

scheme for household category of product. However, the Quantity based discount scheme is preferred for food/ beverages and

Health care OTC. However, the retailers of non-self-service stores prefer different set of schemes for various product categories;

Quantity Based Discount Schemes for Food & Beverages, Trade allowance support for household categories, and Trade support

by Brand is preferred for Personal care products. While planning a trade promotion, more market related information such as type

of outlets in the territory is an added input to design the promotion schemes, in addition to the product category.

In Fast Moving consumer Good’s product categories, retailer preference of trade promotion schemes plays a vital role. Any

promotion techniques can impulse the consumer to think about the purchase but the actual placement and sale of the products can

be done by executing the proper trade promotional schemes to the retailers. Therefore, the study shows the perpetual difference in

type of outlet, which is categorised into self-service and non-self-service. The companies should focus on preferred schemes for

particular category based on the type of outlet. Providing the same schemes for general stores and super market is not suitable and

reduce the impact expected from the schemes. Hence, the companies should focus on allocating the budgets in proper scheme and

product categories by considering the type of stores, in order to increase the sales. The trade promotion schemes can be successful

and will have better sales growth considering the characteristics of outlet.

6. Conclusion

This study brought out the significance of store type in relation with the trade promotions. Very limited insights have been

developed by the past researches in the Indian context on trade promotions. However, many store characteristics may affect the

evaluations of the retailers while accepting the trade promotions. Too many promotions by the firms also creates another

constraint on designing a trade promotion. This study results gives clear demarcation of results on perceived differences by the

store type on product categories and schemes preference. Growth of computing facilities, the decision maker has useful

information to customize the offers, so that every penny spent, provide significant return to the firm.

References

1. Amit Poddar, Improving trade promotions through virtual forward buying. Journal of Business & Industrial Marketing

(2013) 16–28

2. Blattberg, Robert C., Richard Briesch, Edward J. Fox. 1995. How promotions work? Marketing Sci. 14 G122–G132.

3. Dickson, Peter and Alan Sawyer (1985), "Point of Purchase Behavior and Price Perceptions of Supermarket Shoppers,"

Marketing Science Institute.

4. F.J. Arcelus et.al., Retailer’s response to special sales: Price discount vs. Trade credit , The international journal of

management science Omega 29 (2001) 417–428

5. Grewal, Dhruv, Kent B. Monroe, and R. Krishnan. (1998). "The Effects of Price-Comparison Advertising on Buyers'

Perceptions of Acquisition Value, Transaction Value and Behavioral Intentions." Journal ofMarketing, 62 (April): 46-59.

6. Kasulis, Jack J;Morgan, Fred W;Griffith, David E;Kenderdine, James M, Managing trade promotions in the context of

market power Academy of Marketing Science. Journal; Summer 1999; 27, 3.,pg. 320

7. Kaufman, S.B. (2006-2007). Review of Creativity from Constraints: The Psychology of Breakthrough by Patricia D.

Stokes. Imagination, Cognition, and Personality, 26, 273-278.

8. Ko, E. and Kincade, D.H. (1998), “Product line characteristic as determinants of quick response implementation for US

apparel manufacturers”, Clothing and Textiles Research Journal, Vol. 16 No. 1, pp. 11-8.

9. Kusum L. Ailawadie et.al., Communication and Promotion Decisions in Retailing: A Review and Directions for Future

Research, Journal of Retailing 85 (1, 2009) 42–55

10. Mark S. Glynn,The benefits of manufacturer brands to retailers, European Journal of Marketing Vol. 46, No. 9, 2012,pp.

1127-1149

11. Miguel I. Go´Mez And Vithala R. Rao, British Food Journal Vol. Market Power And Trade Promotions In US

Supermarkets

12. Sun, Baohong, Scott A. Neslin, and Kannan Srinivasan (2003), “Measuring the Impact of Promotions on Bran Switching

When Consumers Are Forward Looking,” Journal of Marketing Research, Vol. XL (November), 389-405.

13. William k. Meade et.al, promotions as coopetition In the soft drink industry., academy of marketing studies journal,

volume 13, number 1, 2009


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ARE SUSTAINABILITY DREAMS CONVERTED INTO ACTION? –

A STUDY ON MSMES IN TIRUNELVELI DISTRICT

K. Balasubramanian* Dr. S. Madhavan**

* Full Time Ph D Research Scholar, Department of Management Studies, Manonmaniam Sundaranar University,

Tirunelveli- 627 012

**Professor, Department of Management Studies, Manonmaniam Sundaranar University, Tirunelveli- 627 012

ABSTRACT

The present article deals with Micro, Small and Medium (MSMEs) enterprises and their role in economic growth and employment

generation in the Indian context. There is a growing and worldwide appreciation that the MSMEs play a catalytic role in the

development process of most economies for this paper the authors have selected top three industries of registered MSME units in

Tirunelveli District. Stratified Random sampling technique has been used for the sample selection. The respondents were asked to

record their awareness about Marketing and Competitive strategies and their response to the implementation of these strategies at

right time. This study found that there is a gap between implementation and adoption of marketing, and competitive strategies. If these

problems are addressed by the units, they will get reflected in the form of their increasing number and rising proportion in the overall

product manufacturing, exports, employment, technical innovations and promotion of entrepreneurial skills.

Key words: Marketing strategy, Competitive strategy, Adopting methods and MSMEs.

Introduction:

MSMEs in India:-

The Small and Medium Enterprise [SME] play a vital role in the industrial development of any country. The importance of SME

sector is well- recognized world over from its significant contribution in gratifying various socio-economic objectives, such as higher

growth of employment, output, promotion of exports and fostering entrepreneurship. The MSME sector contributes in a significant

way to the growth of the Indian economy with a vast network of over 32 million units, creating employment of about 70 million,

manufacturing more than 6000 products, contributing about 45% to manufacturing output and about 40% of exports, directly and

indirectly1. The best part however is that the growth of this sector is higher than the rest of the industrial sector. The Micro, Small and

Medium Enterprises Development Act 2006, recognized the importance of services and included services in the definition of

enterprise. The MSME sector provides the maximum opportunities for self employment and jobs after agriculture. The MSMEs units’

contribution to employment generation is substantial since 34.9% of total employment of manufacturing and services comes from

MSMEs2. An Analyzing the sector wise contribution to Indian Economy, Food products and beverages, Apparels, textiles and others

such as retail trade, online trade, homemade products those which are significant contributing sectors to Indian GDP3. MSMEs always

1 Adarsh Agarwal Convener Economic Affairs Panel & Managing Director Jamipol Limited, gave the theme address Confederation of Indian Industry (CII) organised a conference on MSME Financing, which provided a common platform for MSMEs, Banks and other NBFCs to share a common platform and brainstorm on

the possible solutions that can be offered to MSMEs at such a critical juncture. 2 Ashish Varma & Ishika Varma (2010), “Integrated Risk Management Framework for Indian MSMEs”, The Management Accountant,

May 2010, Vol. 45, No. 5, pp. 355-357 3 Balasubramanian, K. and Madhavan, S. (2017). “Sector wise analysis of MSME – Contribution of Growth of Indian”, International

Journal of Management Studies, Vol-IV, Special Issue-1, September 2017, pp. 84-92


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represented the model of socioeconomic policies of Government of India, which emphasized judicious use of foreign exchange for

import of capital goods and inputs, labour intensive production, employment generation, non concentration of economic power in the

hands of few, discouraging monopolistic practices of production and marketing and probably the most important one, that is fulfilling

the dream of 'Inclusive Growth'. It was also coupled with the policy of deconcentration of industrial activities in few geographical

areas.

MSMEs in Tamilnadu:-

The industrial structure and changes in Tamil Nadu were examined by Thangamuthu (1983)4. He found that during 1960-1980

structural changes had taken pace. The study presented the changing trends in the relative shares of different groups in terms of labour

employed, capital and value added. Empirically, he found support for a declining share of productive capital and employment in the

respective industry aggregates in the food processing, textiles, paper and printing and construction industry categories, whereas

chemicals, engineering, metal products and transport equipments showed substantial improvement in their relative position.

In terms of capital and labour employed, metal product engineering and transport showed a relative deceleration in Tamil Nadu during

the two decades 1960-80.

Anbumani (1985)5 made an attempt to study the growth and structure of small scale industries in Coimbatore District during the

period 1970-80 with reference to DIC data. 17 product groups as per two digit classification of NIC code including machinery and

machine tools manufacturing industries were studied. The main objectives of the study were:

To analyse growth, economic ratios, rate of return and production function such as Cobb Douglas and CES.

To analyse the labour and capital coefficients, their marginal productivities and scale of returns.

To analyse the cost structure, cost functions and to measure the substitution parameters. Using all conventional statistical

tools, both time-series analysis for all industry groups and cross-sectional analysis for all the years were undertaken. He

concluded that the performance of non-traditional product groups were better than that of traditional industries. He growth

performance of machine tools during the decade was highly impressive and above sectoral average.

The study undertaken by Vellaichamy (2006)6 covers the period from 1980 to 2001. He attempted to study the challenges for the

small-scale sector under globalisation, using growth rates and percentages. The data for the study was compiled from the Economic

Review. He concluded that the factors responsible for the dismal performance of the SSIs in the post-reforms period was mainly de

reservation of items and 24 percent equity participation of large-scale units in SSI. The government allocation for the SSI sector was

not only low but decreasing. He said that SSIs in India have found themselves in an intensely competitive environment since 1991. As

a result, growth in terms of units, employment output and exports have come down. This has led to less an impressive growth in SSIs

contribution to national income exports, though not in terms of employment. Cities like Tirunelveli are expected to participate in the

shaping of the country’s economy going forward. Tirunelveli has been taken as a representative district to do an in-depth research in

understanding the perspectives of the MSME entrepreneurs in this region. While Tirunelveli district has huge potential the eco-system

needs to support the MSME entrepreneur better by providing a vibrant environment where he can harness the potential of his business

plan to the best. Only then would the Tirunelveli district MSME sector sustain, succeed and grow playing its role in the larger national

economy.

Marketing strategies for MSMEs:-

In recent years, few functions have changed so dramatically as marketing, thanks o the advent of digital technologies and social

media. All parts of the company must come together to contribute to the brand story and role of business leadership in making this

happen. The changes in the technology and the taste in the customer choices, the MSMEs need to adapt marketing strategies in their

unit. The small scale industries requested to enhance marketing capabilities & competitiveness of the MSMEs. The exposure to

prevalent market scenario and its impact on Platform to showcase the competencies of MSMEs and their activities. This is

encouraging formation of consortia of MSMEs for marketing of their products and services. There are platform to MSMEs for

interaction with large institutional buyers. The Government of India introducing the marketing schemes to achieve the objectives of

the scheme, the various activities are introduced by MSME7:-

1. Organizing International Technology Exhibitions in Foreign Countries by NSIC and participation in International

Exhibitions/Trade Fairs

4 Thangamuthu. C (1983), “Industrial Structure and Change in Tamil Nadu”, Southern Economist, September, Vol. 18, No.2, pp. 19-

20. 5 Anbumani V. (1985), “Growth and Structure of Small Scale Industries in Coimbatore District” Unpublished Ph.D thesis, Bharathiar

University. 6 Vellaichamy DR (2006), “Globalisation and Challenges for Small-Scale Industries”, Southern Economist, Vol. No.10, February, pp. 7-

9. 7 http://msme.gov.in/sites/default/files/MAS_EN.pdf


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2. Organizing theme based domestic exhibitions / technology fairs etc. and participation in Exhibitions/ Trade Fairs

3. NSIC has been organising “Tec mart”

4. Support for Co-sponsoring of Exhibitions

5. Buyers-Sellers Meets

6. Intensive Campaigns and Marketing Promotion Events

Competitive Strategies of MSMEs8:-

Competitive strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its

competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on

Investment). Such type of strategies plays a very important role when industry is very competitive and consumers are provided with

almost similar products. According to Michael Porter, competitive strategy is devised into 4 types: Cost Leadership, Differentiation

leadership, Cost focus, Differentiation focus.

Examples of competitive strategy9

There can be several examples based on the four parameters given by Michael Porter. Some examples are given below:

1. Cost leadership: Micromax smart phones and mobile phones are giving good quality products at an affordable price which contain

all the features which a premium phone like Apple or Samsung offers

2. Differentiation leadership: BMW offers cars which are different from other car brands. BMW cars are more technologically

advanced, have better features and have got personalized services

3. Cost focus: Sonata watches are focused towards giving wrist watches at a low cost as compared to competitors like Rolex, Titan,

Omega etc

4. Differentiation focus: Titan watches concentrates on premium segment which includes jewels in its watches.

Review of Literature:-

Chandler and Hanks (1994), aimed to understand the implications of the entrepreneurial competence in microenterprises. In this

method micro-enterprises and entrepreneurial competence has been reviewed; the research design framed the analysis of

entrepreneurial capability in micro-enterprises in a multi-case study way. By the research findings were divided by the construct

implication of entrepreneurial competence in the abilities of six constructs in two levels for data analysis. Finally, this article proposed

the practical implications of micro-enterprises management and recommendations for future research.

Hellberg (2000), dealt with small and medium scale enterprises and how government aid agencies can best encourage their

development. The investigation provides a different look at the issues and provided a market oriented strategies for SMEs.

Hills et al., (2008) Key aspects of marketing are examined in the context of entrepreneurial ventures to see how accepted marketing

theory fits with successful entrepreneurial practice. An implication from this for entrepreneurial market and innovative market is

social networking and relationships with customers and other stakeholders as the foundation. It is often the capability that allows

entrepreneurial market and innovative market firms to gain advantage.

Shigang Yan (2010), Studied that “Competitive Strategy and Business Environment – The case of small entrepreneurs in China”.

SMEs are keeping themselves competitive; a theoretical framework is built up the competitive strategy and business environment

influencing Chinese SMEs performance. Result shown that the importance of competitive strategy to achieve their competitive

advantage.

Hakimpoor et al. (2011). The importance of marketing strategies for the MSMEs has been brought out by hypothesized that the size,

formality, diversity, density, stability and flexibility of marketing network will positively moderate the relationship between strategic

marketing planning and performance of small and medium enterprises to test the validity of their model. The study observed that

structural dimensions of marketing network are important moderators on relationship between strategic marketing planning and

SMEs’ performance.

Kolabi, Hosseini, Mehrabi, (2011) identified the main elements of entrepreneurial marketing mix in this paper. This study aim to

identify the enterprises previous knowledge and experiences used to extract the marketing mix. The concept of marketing and

entrepreneurship has been studied through the marketing concepts and principles could be applied in the field of entrepreneurship.

8 Competitive strategy is defined as the long term plan of a particular company in order to gain competitive

advantage over its competitors in the industry 9 http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7394-competitive-strategy.html


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This issues which has been repeatedly acknowledge that the application of marketing techniques in the field is somewhat different

from the literature and within the traditional marketing.

Yen and Chew (2011) found that the SMEs performance was based on competitive marketing strategy, relative marketing strategy

and business environment. This study also proved that only effective marketing could half SMEs to gain competitive advantage and

superior performance. Their study provided the best picture of determinants of construction of SMEs performance limitation of their

study was low response rate than expected some size.

Arjun Kumar (2012), examined that the importance of small scale industries increasing and sell the products effectively in the

markets. This study covers the socio-economic conditions, marketing strategies of SSIs and identified the marketing problems of SSI.

Also the results reveal that 76 percent of the SSI faced the marketing problems.

Palvan Kumar and Kamal (2013), investigate the factors influence the price decision, selections of distribution channel, by the SSI.

The respondents were asked to express their level of agreement / disagreement, finding reveals that SMEs are not using marketing

mix and latest marketing tool such as E- Marketing or web marketing in this competitive small scale industries.

Gajendra Singh and Nishant Kumar (2015), research titled “Marketing Strategies Efficiently used by Small Scale Industries (A

Case of Uttarakhand)”, has examined the effects of characteristics and the marketing practices adopted by the firm on the

entrepreneurial development of SSI in Uttarkhand. The characteristics of firm and business practices are found to be a significant

factor for small scale entrepreneurial success in Uttarkhand.

Vijay Joshi. (2016), This paper investigates what are the critical success factors that can help MSEs to be sustainable and achieve

positive growth so as to limit the high business failure rate in Ethiopia. These issues are termed as Critical Success Factors for

example the Entrepreneurial Characteristics, Firm Characteristics, and Contextual Factors like the operating environment of a firm,

which affects the performance and success of a firm. These factors affect the policies and strategies of a firm. The proposed

conceptual model in the paper depicts that the success of the firm largely depends on entrepreneurial characteristics, firm

characteristics, and contextual factors. This study is an honest attempt to draws the attention of researchers, academicians,

professional, policy-makers and consultants to enhance the effectiveness and sustainability of micro and small business enterprises in

context of Ethiopia in general.

Klodiana Gorica and Ana Buhaljoti (2016), Study has been made possible with a descriptive, qualitative research with structured

interviews from 4 representatives of small and medium enterprises from different sectors in Albania, but spent time talking to

customers, networking, building relationships with satisfied customers who then recommend the business to others.

Research Gap:-

The study has focused on several reviews on MSMEs of Marketing strategies. Many researchers have explored various dimensions of

MSMEs Marketing strategy and Competitive strategy but there is a very narrow focus on awareness and adoption strategies by

MSMEs. So, the researcher has identified Marketing strategy and Competitive strategies of MSMEs and their opinion about

awareness and adoption level as a research gap.

Objectives of the Study:-

To identify the factors of the Competitive strategy variables for selected industries

To identify the factors of the Marketing Strategy variables for selected industries

To find out the gap between the respondents opinion on marketing strategies and competitive strategy based on the level of

importance they provide and level of adoption.

Research Methodology

Sources of data

Data were collected from both primary and secondary sources

Primary Sources

The study is empirical in nature and it is based on the data personally was collected with the help of a questionnaire. All attempts were

made to extract the correct information through informal discussion with the entrepreneurs. Interviews were conducted with the

General Manager of District Industries Centre, Tirunelveli and Industrial Promotion Officers.

Secondary Sources

The secondary data was collected through the annual reports of District Industries Centre, Tirunelveli, and Micro, Small and Medium

Enterprises. The other information was collected through various books, journals, research reports, magazines, manuals and news

letter reports on small scale industry and entrepreneurship.


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Sampling Method:-

A sample of 87 small industrial units selected among 15,000 registered Industrial Units to give a special focus to the entrepreneurs

performance. In the selected of the sample units a two stage stratified simple random sampling technique was adopted. In first step the

top three industries were taken on the basis of number of registered units were selected. These industry nature of the product namely,

readymade garments, paper products, and plastic products industrial units.

Selection of Sampling Technique:-

The stratified random sampling technique has been followed for selection of sample Rural Entrepreneurs. Personal visits to sample

MSMEs was undertaken in order to have knowledge of their workings and collect necessary data as per data sheet from their office

records, schedules. These were used at the time of personal interviews and discussions with the sample members and relevant

information were records. The following table present the sample selection method.

Table No.1

Selection of Sample

Sl. No. Type of Industry Registered Units Sample

1 Hosiery & Readymade Garments 10,532 30

2 Paper and Paper Products 2,605 30

3 Rubber and Plastic Products 2,404 27

Source: - MSME Annual Report – Tirunelveli District

Statistical Techniques

The data is analyzed with help of Statistical techniques like percentages, averages rates of growth have been applied for analysis and

interpretation of primary and secondary data.

Tools used for Analysis

The Primary data collected from the sample small scale units has been tabulated using percentage analysis, Paired t test, Factor

Analysis.

Analysis & Interpretation

Table No.2

Type of industry

S. No. Particulars No. of respondents Percent

1 Hosiery & Readymade Garments 30 34

2 Paper and Paper Products 30 34

3 Rubber and Plastic Products 27 31

Total 87 100

Source: Primary data

Table No. 1 shows that it is found that nearly 34 percent of the enterprises are Hosiery & readymade garments and Paper and Paper

products followed by, 27 percent rubber and plastic product industry.

Hence, the type of industry the Majority of the small scale business enterprises in the Tirunelveli area Hosiery & Readymade

Garments and Paper and Paper products.

Table No.3

Type of Capital Invested


1 Own Funds 28 32

2 Borrowed funds 7 8

3 Both 52 60

Total 87 100



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Table No. 2 shows that 60 percent of the respondents of the enterprises using both of their business investment like own funds and

borrowed funds. 32 percent of the respondents are using their own funds as investment in their business.

Hence, the type of capital invested, the majority of capital investment under own funds and borrowed funds.

Table No.4

Types of Organisation


1 Sole Proprietor 53 61

2 Partnership Concern 34 39

Total 87 100


Table No. 3 shows that 61 percent of the respondents are sole proprietorship in the business and the remaining respondents are

partnership concern in their business.

Hence, the types of organisation the majority of the respondents are running their own as sole proprietorship concern.

Table No.5

Factor analysis for Marketing Strategy

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .853

Bartlett's Test of Sphericity Approx. Chi-Square 847.288

Df 66

Sig. .000

Rotated Component Matrixa

Component

1 2 3

Promotion is best fit for the organization .926 .106

Pricing strategy .889 .147

Subsidies .866 .194

Pricing of the product .861 .191

Promotions Schemes .572 .183 .517

New product development process .108 .920 .196

Current product development approach leads to profitability .132 .906 .197

Distribution channel of the product .903 .221

Way to produce the product .695 .123

Supplier of the Product .102 .884

Best fit for your potential market .151 .340 .876

Market awareness .219 .293 .849

Eigenvalues 5.410 2.685 1.483

Cronbach's Alpha 0.837 0.799 0.738

% of Variance 29.808 27.040 22.967

Total variance explained 79.815


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The Total Variance Explained rows present the number of column factors extracted, the eigenvalues associated with these

factors, the percentage of total variance accounted for by each factors, and the cumulative percentage of total variance accounted by

the factors. Using the criterion of retaining only factors with eigenvalues of 1 or greater, three factors were retained for rotation. These

three factors accounted for 29.80%, 27.04% and 22.96% of the total variance, respectively, for a total of 79.81%.

In the Rotated Components Matrix, each number represents the partial correlation coefficient between variable and the

rotated component. These coefficients help in identifying the components. All the variables that have large factor loadings for a given

component define the component.

The variables constituting component 1 are:

Promotion is best fit for the organization

Pricing Strategy

Subsidies

Promotion Schemes


New Product development process

Current product development approach

Distribution Channel of the product

Way to produce the product


Supplier of the product

Best fit for your potential market

Market awareness

The results of Principal Component Analysis reveal that main factors for sustainability business marketing strategy with following

factors:

1. Pricing Strategy

2. Product Strategy

3. Environmental Analysis

Thus, MSME units may focus on these factors for increasing sustainable development of the business.

Table No.6

Factor analysis for Competitive Strategy

Table of KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .856

Bartlett's Test of

Sphericity

Approx. Chi-Square 1124.039

df 91

Sig. .000


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Table of Rotated Component Matrixa

Component

1 2 3 4

Labor Cost .917 .107 .178

Raw material cost .880 .147 .180

Reducing cost in operation management .846 .210 .181

Reducing Cost in Administration activities .810 .320 .142

Develop brand identification .919 .153 .154

High Quality .903 .139 .184

Competitive price .902 .212 .133

Deliver constructed facilities .699 .174

Technical & Managerial expertise .249 .879 .131

Competence in technology & Process .373 .176 .827 .250

Innovation in operation mechanism .361 .155 .815 .304

Subcontractor of large enterprise .104 .118 .914

Partnering with customer .102 .344 .300 .828

Cooperation with Suppliers .165 .297 .315 .796

Eigenvalues 6.413 2.801 1.529 1.031

Cronbach's Alpha 0.873 0.814 0.796 0.751

% of Variance 24.191 23.410 18.728 17.771

Total variance explained 84.100

The Total Variance Explained rows present the number of column factors extracted, the eigenvalues associated with these

factors, the percentage of total variance accounted for by each factors, and the cumulative percentage of total variance accounted by

the factors. Using the criterion of retaining only factors with eigenvalues of 1 or greater, four factors were retained for rotation. These

four factors accounted for 24.19%, 23.41%, 18.72% and 17.77% of the total variance, respectively, for a total of 84.1%.

In the Rotated Components Matrix, each number represents the partial correlation coefficient between variable and the

rotated component. These coefficients help in identifying the components. All the variables that have large factor loadings for a given

component define the component.


Labor Cost

Raw material cost

Reducing cost in operation management

Reducing Cost in Administration activities


Develop brand identification

High Quality


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Competitive price

Deliver constructed facilities


Technical & Managerial expertise

Competence in technology & Process

Innovation in operation mechanism


Subcontractor of large enterprise

Partnering with customer

Cooperation with Suppliers

The results of principal Component Analysis reveal that main factors for sustainability business competitive strategy with following

factors:

1. Cost Strategy

2. Differentiation Strategy

3. Innovation Strategy and

4. Strategic Alliance

Thus, MSME units may focus on these factors for increasing sustainable development of the business.

Table No.7

Paired T test for Marketing Strategy Implementation and Adoption

H02 – there is no mean difference between respondents’ opinion on marketing strategy of level of importance and level of adoption in

their business.

Statements pair Mean Std. Deviation Mean difference t value

Pricing Strategy Level of Importance 4.21 .843

2.375 45.087* Level of Adoption 1.83 .767

Product Strategy Level of Importance 4.28 .789


Environment Analysis Level of Importance 4.21 .883


Source: Computed Primary Data

Note: * denotes significant level at 5% opinion of Marketing strategy of importance and adoption

Result:

It is evident from the table, since p value is less than 0.05, the null hypothesis is rejected at 5% thereby concluding that there is

statistically significant difference between respondents’ opinion on marketing strategy of level of importance and level of adoption in

their business such as “Product Strategy”, “Pricing strategy” , “ and “Environmental Analysis”.

Hence it can be concluded that companies are not adopting the marketing strategies as much as their intention to give importance.

Table No.8

Paired T test for Competitive Strategy Implementation and Adoption

Paired t test

H01 – there is no mean difference between respondents’ opinion on competitive strategy of level of importance and level of adoption

in their business.


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Statements Pair Mean Std.

Deviation

Mean

differences t value

Cost Strategy Level of Importance 3.87 .831


Differentiation Strategy Level of Importance 4.13 .948


Innovation Strategy Level of Importance 4.03 .910


Strategic Alliance Level of Importance 4.14 .817


Source: Computed Primary Data

Note: * denotes significant level at 5% opinion of Competitive strategy of Importance and its adoption

Result:

It is evident from the table, since p value is less than 0.05, the null hypothesis is rejected at 5% thereby concluding that there is

statistically significant difference between respondents’ opinion about competitive strategy on level of importance and level of

adoption in their business such as “Cost Strategy”, “Differentiation strategy” , “Innovation strategy” and “Strategic Alliance”.

Hence it can be concluded that companies are not adopting the Competitive strategies as much as their intention to give importance.

FINDINGS

The type of industry the Majority of the small scale business enterprises in the Tirunelveli area Hosiery & Readymade

Garments and Paper and Paper products.

The type of capital invested, the majority of capital investment under own funds and borrowed funds.

The types of organisation the majority of the respondents are running their own as sole proprietorship concern.

The results of Principal Component Analysis reveals that main three factors for sustainability business marketing strategy

with following factors such as Pricing Strategy, Product Strategy, Environmental Analysis. Thus, MSME units may focus on

these factors for increasing sustainable development of the business.

The result of paired t test reveals that companies are not adopting the marketing strategies as much as their level of

importance in Pricing strategy, Product strategy, and Environmental analysis for the business sustainability.

The results of Principal Component Analysis reveals that main four factors for sustainability business competitive strategy

with following factors such as Cost Strategy , Differentiation Strategy, Innovation Strategy and Strategic Alliance. Thus,

MSME units may focus on these factors for increasing sustainable development of the business.

The result of paired t test reveals that companies are not adopting the Competitive strategies as much as their level of

importance in Cost strategy, Differentiation strategy, Innovation strategy and strategic alliance for the business sustainability.

Suggestion

From the findings, the researchers are offering the following suggestions. A MSME unit are not fully adopting the marketing and

competitive strategies for their business development as much as they give importance to them. MSME units they may follow the

following marketing strategies such as Pricing Strategy, Product Strategy, and Environmental Analysis. Likewise, they may follow

the following competitive strategies such as Cost Strategy, Differentiation Strategy, Innovation Strategy and Strategic Alliance.

Conclusion

Marketing is a dynamic process as it is highly situational. It is concerned with the activities involved in the exchange of money for the

goods and services by the supplier and customer. Entrepreneurs have to develop entrepreneurial marketing by developing the

employees with the respect to implementation of marketing strategy. The present study aimed to analyse the marketing and

competitive strategy in three different sectors. The researcher concluded that the small scale entrepreneurs are aware about the

business’s competitive and marketing strategy, the lack of implementation leads to decrease in product sales. Sustainable growth and

the increase of MSME competitiveness will provide the environment for investment and employment. This Paper will serve as an

information source of identification of gap between implementation and adoption of marketing strategies.

Reference:

1. Amir Mohammad KOLABI, Hamid Khodadad HOSSEINI, Rosa MEHRABI (2011), Developing entrepreneurial marketing

mix: Case study of entrepreneurial food enterprises in Iran, Journal of Knowledge Management, Economics and Information

Technology.

2. Chandler, G.N., Hanks, S.H. (1994). Market attractiveness, resource-based capabilities, venture strategies, and venture

performance. Journal of Business Venturing, 9(4), 331-349.

3. Gajendra Singh and Nishant Kumar (2015), “Marketing Strategies Efficiently used by Small Scale Industries (A Case of

Uttarakhand)”, Jaipuria International Journal of Management Research (Jul-Dec 2015), 1(1), 03-15


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4. Hallberg, K. (2000), “A Market-Oriented Strategy for Small and Medium Scale Enterprises”, International Finance

Corporation, Discussion paper, IFD 40.

5. Hills, G.E., Hultman, C.M. Miles, M.P (2008), The evolution and development of entrepreneurial marketing, Journal of

Small Business Management, Vol.46, No.1

6. Hakimpoor, H., Tat, H.H. and Arshad, K.A. Strategic Marketing Planning (SMP) and SMEs’ Performance: The Moderating

Effects of Structural Dimensions of Marketing Networks, 2nd International Conference on Business and Economic Research

(2nd ICBER 2011) Proceeding, pp. 1013-1025, 2011.

7. Klodiana Gorica and Ana Buhaljoti, (2016), “Entrepreneurial Marketing: Evidence from SMEs in Albania,” American

Journal of Marketing Research, Vol. 2, No. 2, 2016, pp. 46-52

8. Pawan Kumar and Kamal, (2013), “Marketing Strategies of Small Scale Industries: A Review” International Journal on Arts,

Management and Humanities, Vol. 2, No. 2, pp. 35-38.

9. Shigang Yan, (2010), “Competitive Strategy and Business Environment: The Case of Small Enterprises in China”, Asian

Social Science Vol. 6, No. 11; November 2010.

10. S.N. Arjunkumar “A Study of Small Scale Industries: Marketing Strategies,” TRANS Asian Journal of Marketing &

Management Research, Volume1, Issue 1, September 2012.

11. Vijay Joshi. (2016), “Critical Success Factors of Micro & Small Enterprises in Ethiopia: A Review”, International Journal of

Science and Research, Vol.5, No. 10, pp.1056-1060.

12. Yan, S. and Chew, D. A. S. An Investigation of Marketing Strategy, Business Environment and Performance of Construction

SMEs in China, African Journal of Business Management, Volume 5, No. 6, pp. 2396-2405, 2011.


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A STUDY ON THE EMERGING TRENDS OF GREEN MARKETING MIX

*Cisma.F.

*Assistant Professor of Commerce, V.O.C.College,Tuticorin.

Birth of Green Marketing

The green marketing has evolved over a period of time. According to Peat tie (2001), the evolution of green marketing has

three phases. First phase was termed as " Ecological “green marketing, and during this period all marketing activities were

concerned to help environment problems and provide remedies for environmental problems. Second phase was ―Environmental

―green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care

of pollution and waste issues. Third phase was “Sustainable" green marketing. It came into prominence in the late 1990s and early

2000.

Objectives of the study

1. To identify the need of green marketing

2. Understanding on the green marketing mix and evolving strategies.

3. Focusing on the attitudes of respondents.

4. Providing suggestions.

Research Design: Descriptive research design is used in this research. It includes survey and fact finding and inquiries of different kinds. The major

purpose of descriptive research is description of the state of the affairs, as it exists at present.

Data Collection There are two sources through which data is collected.

Primary Data:Primary data has been collected mainly through structured questionnaire.

Secondary Data:Secondary data has been obtained through websites, books, and on line magazines and journals.

Sampling Design: a. Sampling Technique : Simple Random Sampling

b. Sample Size: 100c.

c. Sampling Area :Thoothukudi

Limitations of the study:

1) As the topic of research is wide, time is the main constraint in the research.

2) Target audience is also another limitation as the people in Tuticorin had less awareness about green marketing.

3) Some respondents were not interested in giving answer and they appeared to be busy.

4) The research is confined to a certain parts only and does not necessarily show a pattern applicable to all of country.

5) In a rapidly changing environment, analysis on one day or in one segment can change very quickly. The environmental changes

are vital to be considered in order to assimilate the findings.

6) Time and money are one of the major constraints of any research activity and this is also attributed with this research

Need for green marketing

Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this

wide adoption. There are basically five reasons for which a marketer should go for the adoption of green marketing:

Opportunities

As demands change, many firms see these changes as an opportunity to be exploited and have a competitive advantage over

firms marketing non-environmentally responsible alternatives.

•The Surf Excel detergent which saves water (advertised with the message—"do bucket paani roz bachana").


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Corporate social responsibilities

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. There are examples of

firms adopting both strategies.

Organizations like the Body Shop heavily promote the fact that they are environmentally responsible.

Government 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. They are:

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.

The ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc

New Delhi, the India's capital was getting polluted gradually at a very fast pace till Supreme Court of India forced a change of fuel on

it. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution.

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 behaviours and attempt to emulate this behaviour.

In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental

behaviour.

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 it.

Cost or profit issues

Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms develop symbiotic relationship

whereby the waste generated by one company is used by another as a cost-effective raw material.

For example, the fly ash generated by thermal power plants, which would otherwise contributed to a gigantic quantum of

solid waste, is used to manufacture fly ash bricks for construction purposes. 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.

Green marketing mix

Green Marketing mix consists of following:

Product Mix

Price Mix

Place Mix &

Promotion Mix

Product mix:

Entrepreneurs wanting to exploit emerging green markets either identify customers‘environmental needs and develop products to

address these needs or will develop environmentally responsible products to have less impact than competitors.The increasingly wide

variety of products on the market that support sustainable developments are:

Products made from recycled goods, such as Quick‘ N Tuff housing materials made from recycled broccoli boxes.

Products that can be recycled or reused.

Efficient products, which save water, energy or gasoline, save money and reduce environmental impact.

Price mix

Pricing is the critical element of the marketing mix. Most customers will only be preparedto pay a premium if there is a perception of

additional product value. This value may be improved performance, function, design, visual appeal or taste. Environmental benefits

will often be the deciding factor between products of equal value or quality. Environmentally responsible products, however are often

less expensive when product lifecycle cost are taken into consideration, for example fuel-efficient vehicles, water efficient printing

and non-hazardous products.

Place mix

The choice of where and when to make products available will have significant impact on the customers you attract. Very few

customers go out of their way to buy green products merely for the sake of it. Marketers looking to successfully introduce new green

products should position them broadly in the market place so they are not just appealing to a small green niche market. The location

must also be consistent with the image you want to project and allow you to project your own image rather than being dominated or


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compromised by the image of venue. The location must differentiate you from the competitors. This can be achieved by in-store

promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits.

Promotion mix

Promoting products and services to target markets include paid advertising, public relations, sales promotions, direct marketing and

on-site promotions. Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and

communication tools and practices. For example, many companies in the financial industry are providing electronic statements by

email; e-marketing is rapidly replacing more traditional marketing methods and printed materials can be produced using recycled

materials and efficient processes such as waterless printing. Retailers, for example are recognizing the value of alliances with other

companies, environmental groups and research organizations. When promoting their environmental commitment to reduce the use of

plastic bags and promote their green commitment, some retailers sell shopping bags and promote their green commitments.

Figure 1: The Green Marketing Components

IMPLEMENTING GREEN MARKETING: STRATEGIES

I. Product differentiation

Organizations are putting continuous efforts to differentiate their products and services using green marketing practice. In a

wide range of markets including retailing etc companies have used eco performance to differentiate and to compete. Products with

poor eco performance can become targets for new substitution, as a result of this many organizations are coming up with greener

ideas to differentiate their products from competitors.

Consumer value positioning- organizations can design environmental products to perform as well as provide alternatives. In

addition to this promoting and delivering the consumer desired value of environmental products and target relevant consumer market

segments can help the organization to differentiate.

Caliberation of consumer knowledge-Educates customers with marketingmessages that connect environmental product attributes

with desired consumer value.

II. Designing biodegradable packaging

It is seen that promotion of green products strongly influences the consumers buying decisions. It is one of the most important factors

of product attractiveness. Thus it has been indicated that bio-degradable packaging will affect in a strong and moderate way

respectively on their buying decisions. As a marketing strategy the companies should modify the product packaging by using only the

recycle as well as handmade paper in packaging. Instead of being more mechanized the companies must find creative ways reusing

the waste products which are harmful to the environment. Manufacturing companies which are using plastic for packaging should

meet certain standardization. For example Bisleri plastic bottles or the water bottles can last only for 15 days and after that it

generates certain chemicals which are harmful and there is no reusability of this kind of plastic. Companies should modify these

kinds of packaging styles and find out some innovative ways to recycle it.

III. Product strategy

In this strategy marketers can identify customer‘s environmental needs and develop products to address this issue, produce more

environmentally responsible packages and insure that products meet or exceed the quality expectation of customers. In addition to

that marketer can charge higher price with highlighting eco-friendliness of the products.


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IV. Distribution strategy

In case of this strategy obtaining dealer support to green marketing practice is essential.The location must differentiate from

competitors and it can be achieved by in-store promotions and displays by using recycle materials to emphasize the environmental

andother benefits.Even though distribution has no big involvement in green marketing, fewconsumers are willing to get the services

from places and distribution channels which arenot cause to environmental pollution.

V. Life cycle analysis

Brands which aspire to be sustainable must ―get their house in order‖ before they start planning any green marketing initiatives. The

best brands are performing life cycle analysis- complex assessments which provide critical data on social, environmental and

economic impact of products through the supply chain production process and after the purchase. Life cycle analysis tells a brand just

how far it needs to go before it claims to besustainable. Consumers don‘t expect perfection when it comes to sustainability but

theywant to see that brands understand the scale of the problem, have a plan and are in the process of implementing it.

VI. Incentives and structural factors

Commercialization programs and incentives help get new technologies introduced examples include fleet programs to cultivate

strategic niche markets and by providing financial incentives such as the advanced vehicle tax credit proposal in case of greenvehicle

purchase. Consumers can be motivated by incentives and awards to:

Curtail – Reduce the impact on the environment by modifying living patterns.

Maintain– Keep equipment in good working order.

Be efficient – Undertake structural changes such as buying environmental friendly equipment.

Findings, interpretations and suggestions:

58% of the respondents were aware whereas 42% respondents were not aware of the green marketing campaigns

carried by companies.

33% respondents came to know about green marketing from newspapers, 24% from internet,21% from magazines,

12% from family and friends and 10% from T.V.

55% were part of the green marketing campaign whereas 45% were not part of it.

The weighted mean score after calculation +2.90 shows that overall people sometime give consideration to

environmental aspects of products.

The study also reveals that people neither agree or disagree that green marketing and its advertising is a good source of

information about green products and services.

The weighted mean score of +0.21 shows that people in overall, slightly agree that green marketing activities are good

at addressing environmental issues.

When judged the perception of people regarding concept of green marketing through this question, people gave 1st rank with 75pts to

change in production process. And its weighted mean is +1.29 which means that people agree that change in production process

consist of green marketing.

Product Modification got 34pts and its weighted mean is +0.59 which means that people somewhat agree that Product

modification consist of green marketing. It is ranked 3rd by the participant.

Change in packaging is ranked 4th. Its overall score is 19 and weighted mean score is +0.33 which means that people slightly feel that

change in packaging consist of green marketing.

Modifying advertising is ranked 5th, its overall score is only 6 and weighted mean is +0.10 which is very near to zero which means

that people aren‘t sure about this. They neither agree not disagree that green marketing includes ‗ModifyingAdvertising‘.

People gave 52pts to ‗All the above‘ and its weighted mean is +0.90 which means that people agree that green marketing include all

four i.e. change in production process, product modification, packaging change and modifying advertising. It is ranked 2 nd by the

respondents

Suggestions :

Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its potential.

Consumer need to be made more aware about the merits of Green products. It is still a new concept for the masses. The

consumer needs to be educated and made aware of the environmental threats. It should be made sure that the consumer is aware of

and concerned about the issues that your product attempts to address. Green Marketing campaign and green advertising is a good step

toward it. Consumers must be motivated to switch brands or even pay a premium for the greener alternative.

Make sure that consumer feel that they can make a difference. This is called ―empowerment‖ and due to this main reason

consumers will buy greener products. Further steps should be taken to control false promise and claim by the marketer to maintain


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21

legitimacy and trustworthiness of green products. Consumers must be made to believe that the product performs the job it‘s supposed

to do-they won‘t forego product quality in the name of the environment.

For effective and efficient implementation of this concept of Green Marketing the factor that plays a major role is the

Government. Unless the government creates specific and stringent laws and utilizes its authority to implement them the concept

cannot be conceptualized. If the Consumer, the Organization and the Government work in unison towards the common goal

of minimizing the detrimental environmental impact of their activities, then they can surely save this environment and make this

world a better place to live in. Thus leading brands should recognize that consumer expectations have changed.

It is not enough for a company to green its products; consumers expect the products that they purchase be pocket friendly

and also to help reduce the environmental impact in their own lives too. Today‘s consumers are becoming more and more conscious

about the environment and are also becoming socially responsible. Therefore, more companies should become responsible to

consumers‘ aspirations. Many companies want to have an early mover advantage as they have to eventually move towards becoming

green.

Green marketing is very low on the agenda of most businesses and therefore its still an under-leveraged USP (Unique Selling

Proposition). Therefore, effective green marketing targeted at the right audience will make the difference.

Conclusion :

Green marketing should not neglect the economic aspect of marketing. Marketers need to understand the implications of green

marketing. Green marketing to some extent strengthen company‘s image in the minds of respondents that is very much clear from

trustworthiness of green claims and certainly it do have positive image of the organization in the minds of the respondents.

Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental

degradation, the responsibility should not be theirs alone. Ultimately green marketing requires that consumers want a cleaner

environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even

governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. We need to

come out through green myopia.

Bibliography

Books

1. Kothari C.R. (2004), ―Research Methodology Methods and Techniques‖, N.Delhi, New Age International Publication

2. Green, Paul, Tull (2002) ―Research for Marketing Decisions‖, N. Delhi,Prentice-Hall of India

3. Sharma D.D. (2008), ―Marketing Research: Principle Application & Cases‖ N.Delhi, Sultan Chand & Sons

WEBSITES

http://www.scribd.comii.

http://www.managementparadise.comiii.

http://www.businessworld.iniv.

http://www.outlookindia.com

http://www.businessworld.iniv/


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www.apjor.com Vol: I. Special Issue VI, December 2017 22

AWARENESS ABOUT SOCIETAL MARKETING STRATEGIES OF HUL AND ITS

IMPACT ON CONSUMER PREFERENCE FOR ITS PRODUCTS

*Dr. M.Bhoopal & **Mrs. R.Deiva veeralakshmi

*Assistant Professor, Department of Management Studies, Manonmaniam Sundaranar University, Tirunelveli

**Doctoral Research Scholar, Department of Management Studies,Manonmaniam Sundaranar University, Tirunelveli

1.1 INTRODUCTION

Most organizations are becoming very much interested about handling societal issues in marketing to provide benefits to all

the stakeholders in the society, including organization, customer as well as society and there are increasing trend towards the concept

of societal marketing and green consumerism among marketing departments of various organizations Societal marketing has become

popular and is widely used within various aspects of society and specific social causes could benefit from societal marketing such as

public health, pollution control, mass transit, private education, drug abuse. The societal marketing is a marketing concept that holds

that a company should make marketing decisions by considering consumers' wants, the company's requirements, and society's long-

term interests. The companies normally use societal marketing to help differentiate their brands from competitors in consumers’

minds, which in turn leads to a range of desirable effects, including greater efficiency for other marketing efforts, an ability to charge

higher prices, increased market share, greater brand loyalty and more favorable treatment from stakeholders such as regulators and

investors. Also societal marketing activities have helped many of these firms achieve better scores on ratings of the most admired and

socially responsible companies. As a result they have become more efficient in recruiting, retaining and engaging talented employees,

since people may have more positive feelings about working for a socially responsible company. Hindustan Unilever Limited (HUL)

is India's largest Fast Moving Consumer Goods Company. There are more than 20 distinct categories in Home & Personal Care

Products and Foods & Beverages. HUL is a subsidiary of Unilever. It is one of the world’s leading suppliers of fast moving consumer

goods. They have strong local roots in more than100 countries across the globe. With an increase in population, the earth’s resources

are increasingly strained. Sustainable, equitable growth is the only acceptable model for business. But growth and sustainability are

not in conflict.

Sustainable Living Plan provides the blueprint for change within the organisation and supply chain. But HUL went further

and identified four key areas where they can use their scale and influence to help bring about transformational change:

taking action on climate and halting deforestation

improving livelihoods and creating more opportunities for women

improving health and well-being

championing sustainable agriculture and food security.

HUL supports the UN’s Global Goals for Sustainable Development and the UN Climate Conference’s Paris Agreement.

Through their Sustainable Living Plan and transformational change agenda, they play a major part in helping to achieve the ‘zero

poverty and zero carbon’ goals. Hindustan Unilever Limited (HUL) has shown strong progress under the Unilever Sustainable Living

Plan (USLP) in 2016. They have been steadily decoupling growth from their environmental impact. They have continued to integrate

USLP in their brands and operations, which has helped to deliver business growth and higher profitability.

1.2 STATEMENT OF THE PROBLEM

Managers believe that consumers will respond more favourably to companies which are socially responsible, and react

unfavourably to companies which they feel are not socially responsible. This gives socially-responsible companies a competitive edge

over their competitors. This induces the corporate to undertake Societal Marketing Approach. Although there exists significant body

https://en.wikipedia.org/wiki/Marketing


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of knowledge on societal marketing , there is very little research on the concept of awareness about societal marketing strategies of an

organization. Besides, there has been a gap in the literature regarding impact of awareness about societal marketing efforts on

consumer preferences for a product. This study will attempt to disclose the influence of societal marketing efforts on consumer

preferences. Organizations may apply the findings to run successful societal marketing campaigns.

1.3 OBJECTIVES

To study the Socio economic Profile of the respondents

To study the Societal Marketing Strategies adopted by HUL.

To study the extent of awareness about the Societal Marketing Strategies adopted by HUL

To study the reasons for consumer preference for HUL products.

1.4 SCOPE OF THE STUDY

The scope of the study includes the respondents in Tuticorin and Tirunelveli Districts.

1.5 METHODOLOGY

1.5.1 Research Design

The descriptive research design adopted by the study describes the respondent’s awareness about HUL’s Societal Marketing

Campaigns and reasons for preferring HUL products.

1.5.2 Tools For Analysis

Questionnaire was designed specially to find out the various Societal Marketing Strategies of HUL about which the

respondents are aware and reasons for preferring HUL products. Simple Percentage analysis and Ranking Analysis were used.

Secondary data was also used to know the various societal marketing strategies of HUL.

1.5.3 Sample Size

A sample size of 150 Respondents was used for this study.

1.5.4 Sampling Technique

Convenience sampling was used for this study.

1.6 ANALYSIS

1.6.1 DEMOGRAPHIC VARIABLES OF THE RESPONDENTS

Demographic variable refers to Gender, Age, Marital Status, Education Qualification, Occupation and Income of an

individual based upon which the individual’s awareness differs. The Table below presents the details of respondents based on their

Demographic variables


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Table No.: 1.6.1

Source: Primary Data

The above table shows that 71% of the respondents are Female & 29% of the respondents are Male. Among the Respondents 50% are

upto 25 years of age, 19% of the respondents belongs to 25-35 years of age, 7% of the respondents belong to 35-45 years of age,15%

of the respondents are between 45-55 years of age and 9% of the respondents are above 55 years of age.

Among the respondents 35% are married and 65% are unmarried. 5% are Illiterate, 14% of the respondents have completed

their SSLC, 17% of the respondents have completed their HSS, 41% of the respondents are Under Graduates, 18% of the respondents

have completed Post Graduation and 5% of the respondents possess Other Degree.

9% of the respondents are Students, 43% are Self Employed, 18% of the respondents are Private Sector Employees, 14% of

the respondents are Government Servants and 16% of the respondents are Other Professionals.

9% of the respondent’s monthly individual income is below Rs.10000, 25% of the respondent’s earn between Rs.10000-

20000, 44% of the respondent’s monthly income is between Rs.20000-30000, 22% of the respondent’s monthly income is above

Rs.30000.

Particulars No. of Respondents Percentage

Gender Male 44 29

Female 106 71

Age Upto 25 75 50

25-35 28 19

35-45 11 7

45-55 23 15

Above 55 13 9

Marital Status Married 52 35

Unmarried 98 65

Educational Qualification

Illiterate 8 5

SSLC 21 14

HSS 25 17

UG 62 41

PG 27 18

Others 7 5

Occupation

Student 14 9

Self Employed 64 43

Private Sector Employee 27 18

Government Servants 21 14

Other Professions 24 16

Monthly Individual Income in

Rs.

Below 10000 12 9

10000-20000 34 25

20000-30000 60 44

Above 30000 30 22


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1.6.2 Societal Marketing Campaigns of HUL

Table No.: 1.6.2

S.No. Category Name of the Campaign

1. Health and Hygeine Swasthya Chetna

2. Health and Hygiene Suvitha

3. Nutrition Nutrition enhancement Programme

4. Waste Foot Print

Recycling the waste

5. Better Livelihood

Shaktimaan

6. Better Livelihood Rin Career Ready Academy

7. Better Livelihood Project Shakti

Source : Secondary Data

Table No.: 1.6.2 shows the prominent Societal Marketing Campaigns undertaken by HUL.

1.6.3 Awareness about HUL’s Societal Marketing Campaigns

Table No.: 1.6.3

Response No. of Respondents Percentage

Yes 109 73

No 41 27

Source : Primary Data

Table No.: 1.6.3 reveals that 73% of the respondents are aware and 27% of the respondents are unaware about HUL’s Societal

Marketing Campaigns.

1.6.4 Details of Awareness regarding various Societal Marketing Campaigns of HUL

Table No.: 1.6.4

Campaign Yes No

No. of

respondents

Percentage No. of respondents Percentage

Swasthya Chetna 103 94 6 6

Suvitha 96 88 13 12

Nutrition enhancement Programme 87 80 22 20

Recycling the waste 76 70 33 30

Shaktimaan 58 53 51 47

Rin Career Ready Academy 98 90 11 10

Project Shakti 83 76 26 24


Table No.: 1.6.4 reveals that 94% are aware of the program Swasthya Chetna, 88% are aware of the program Suvitha, 80% are aware

of the program on Nutrition Enhancement, 70% are aware of the program on Recyling the Waste, 53% are aware of the program

Shakthimaan, 90% are aware of the program Rin Career Ready Academy and 76% are aware of the program Project Shakti.

1.6.5. Sources of Awareness

Table No.: 1.6.5

S.No. Source No. of respondents Percentage

1. TV Advertisements 74 68

2. Friends 7 6

3. Paper Advertisements 23 21

4. Posters 5 5


Table No.: 1.6.5 reveals that 68% respondents came to know about the Societal Marketing Strategies of HUL through Television

Advertisements, 21% through Paper Advertisements, 6% through Friends and 5% through Posters.


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1.6.6. Frequency of Purchase of HUL Products

Table No.: 1.6.6

Criteria Respondents With Awareness Respondents Without Awareness

No. of Respondents Percentage No. of Respondents Percentage

Frequently 96 88 2 5

Occasionally 10 9 7 17

Rarely 3 3 32 78


Table No.: 1.6.6 reveals that among Respondents with awareness 88% frequently buy HUL Products, 9% Occasionally and 3% rarely

purchase HUL products whereas among the customers Without awareness 78% rarely purchase HUL products, 17% Occasionally and

5% frequently purchase HUL products.

1.6.7 Ranking of the Reasons for Purchasing HUL Products

Table No.: 1.6.7

S.No. Reasons W 8 7 6 5 4 3 2 1 Weighted

Average

Rank

R I II III IV V VI VII VII

1 Quality 17

(136)

33

(231)

30

(180)

22

(110)

18

(72)

12

(36)

4

(8)

14

14

21.86 III

2 Societal

marketing

Campaigns

54

(432)

18

(126)

16

(96)

15

(75)

14

(56)

12

(36)

8

(16)

13

(13)

23.61 I

3 Packaging 19

(152)

21

(147)

19

(114)

17

(85)

23

(92)

16

(48)

22

(44)

13

(13)

19.31 IV

4 Variety 35

(280)

27

(189)

20

(120)

16

(80)

17

(68)

15

(45)

13

(26)

7

(7)

22.64 II

5 Price 12

(96)

20

(140)

13

(78)

28

(140)

19

(76)

18

(54)

16

(32)

24

(24)

17.78 V

6 Easy Availability 8

(64)

14

(98)

21

(126)

18

(90)

26

(104)

29

(87)

23

(46)

11

(11)

17.38 VI

7 Brand

Ambassadors

2

(16)

8

(56)

17

(102)

19

(95)

15

(60)

25

(76)

32

(64)

32

(32)

13.89 VII

8 Offers and

discounts

2

(16)

9

(63)

14

(84)

15

(75)

18

(72)

23

(69)

33

(66)

36

(36)

13.36 VIII


From the above table it is learnt that Societal marketing Campaigns has been ranked First, Variety of products has been

ranked Second, Quality has been ranked Third, Packaging has been ranked Fourth, Price has been ranked Fifth, Easy Availability has

been ranked Sixth, Brand Ambassadors has been ranked Seventh and offers and discounts has been ranked Eighth among the reasons

for purchasing HUL Products.

1.7 FINDINGS

73% of the respondents are aware of the societal marketing strategies of HUL

Swasthya Chetna campaign has reached the 94% respondents and the campaign Shaktimaan has reached only 53% of

respondents

Television Advertisements have been the major source for creating awareness among the public about the Societal Marketing

campaigns of HUL.

Respondents having awareness about the Societal Marketing campaigns of HUL frequently buy HUL products.

Societal Marketing campaigns have been ranked first among the factors contributing to the purchase of HUL products

The secondary data holds that

Over 63 million people benefited through Lifebuoy handwashing programme in India, so far.

Pureit has provided over 74 billion litres of safe drinking water till date.

Approximately 6 lakh people have been impacted through Domex Toilet Academy (DTA). DTA has helped build over 1 lakh

toilets in Indian households.


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Over 300 billion litres of water conservation potential created by Hindustan Unilever Foundation partnerships.

Project Shakti network has 72,000 women entrepreneurs.

3.5 lakh people benefitted through Rin Career Ready Academy since inception.

Over 6.5 lakh people benefitted from Prabhat's programmes as of December 2016.

1.8 SUGGESTIONS

Efforts can be made to extend these strategies to all parts of the country

HUL can focus on more television Advertisements for creating awareness about their societal marketing campaigns.

HUL can increase their investments in such efforts to reach their goals.

Such efforts can be used to sustain the best human resources as well.

1.9 CONCLUSION

The societal marketing programs launched by HCL has a far reaching impact. It has served as an eye opener on personal

health and hygiene, developing the potentials of the public especially the women folk. No doubt these features have easily created

brand awareness and increased the corporate image of HUL. This has resulted in increased sales of HUL Products. HUL should

travel ahead in the same track to reap success.

REFERENCES

1. Varadarajan, P. R. & Menon, A. 1988, ‘Cause-related marketing: a coalignment of marketing strategy and corporate

philanthropy’, Journal of Marketing, vol. 52, July, pp. 58-74.

2. Reutlinger, Janina (2012) Bachelor’s Thesis in International Business Retrieved from URL : http://www.HUL.co.in

3. Corbishley, K .M. and Mason R.B. (2011), Cause-related marketing and consumer behaviour in the greater eThekweni area,

African Journal of Business Management, Vol. 5 (17), pp. 7232-7239, Available online at

http://www.academicjournals.org/AJBM

http://www.hul.co.in/


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STRENGTHENING COMMUNITY WELFARE INITIATIVES: -

A BUSINESS PERSPECTIVE

* Dr Fayaz Ahamed

*Assistant Professor, Department of Business Administration, Amity University

ABSTRACT

Welfare initiatives includes community services for disadvantaged people, community halls and facilities, inclusion of community into

project designs, establishing community enterprises to provide legal services and create employment opportunities in the social

marketing programmes for businesses. Corporations holds welfare initiatives that focuses on theindividuals, communities, through

social marketing aims to bring the best possible, sustainable, scalable and replicable solutions totheir projects.

The Indian companies actively motivate employees to participate in Corporate Social Responsibility (CSR) activities and these

companies have shown their eagerness. They are ready to contribute time and effort towards charitable causes rather than merely

donating money and they feel more warmly towards the potential to benefit in return for their community work.

The present study aims to discuss strengthening community welfare initiatives (CWI) and the role businesses for the economic

prosperity in India. As the study is descriptive in nature, secondary data have been employed for the study. It also includes certain

findings on CWI status compiled from database, leading economic sources as well as regional press reports. It reveals that the reason

for holding back in CWI would – be volunteers did not know where to start, and they were held back because their company did not

engage in any CSR activities in remote areas. It covers the future outlook towards the phase of CWIoriginatedin India.

Keywords: Community welfare and Economic prosperity.

1.0 INTRODUCTION

Social marketing is a concept of linking the business and society for the betterment of global welfare. Every Industry and Business

draws resources from the Nature and the Society and generates Wealth by adding Value.Natural resources such as lakes, rivers, water

power, wetlands, watercourses,forests, wildlife, natural vegetation, forests, timber, fossil fuels, minerals, animals, air, wind, sunlight,

soil, and topsoilhave a pivotal role in Indian lifestyle. The growing population of the country is increasing pressure on environmental

and corporate strategy of the business that these have significant influence on the efforts corporates put into the implementation of

internal as well as external community welfare initiatives (Fazli Haleem, Harry Boer and Sami Farooq 2014).

Social welfare is the essential duty of the state that focuses upon the upbringing of its stake holders such as territory governments, the

community sector, academics, business and social entrepreneurs for enabling an intra corporate ‘marketplace’with social justice.The

Indian government has brought in to affect new social responsibility guidelines requiring companies to spend 2% of their net profit on

social developmentinclude measures to eradicate hunger, promote education, environmental sustainability, protection of national

heritage and rural sports, and contributions to prime minister's relief fund (MCA 2014). The corporation can implement these activities

on its own, through its CSR committee or through registered non-governmental organizations.Indeed, the rest of the business also

needs to be sustainable.


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Three Main Categories of Stakeholders are involved in the field of Social Welfare Initiatives:

Figure 1: Main Categories of Stakeholders of Social Welfare Initiatives

The community welfare initiatives (CWI) will present an opportunity for corporates for nation building to align efforts around

intergovernmental initiatives such as Digital India, Clean India, 100 Smart Cities, Startup India Standup India, Deendayal Disabled

Rehabilitation Scheme, Deen Dayal Upadhyaya Grameen Kaushalya Yojna, Gramin Bhandaran Yojana, Pradhan Mantri Gramin

Awaas Yojana, Atal Mission for Rejuvenation and Urban Transformation, Kishore Vaigyanik Protsahan Yojana, Namami Gange

Programme, National Scheme on Welfare of Fishermen, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Jan Dhan Yojana,

Rashtriya Swasthya Bima Yojana, National Rural Livelihood Mission(NRLM), Pradhan Mantri Awas Yojana(PMAY) and

Pradhan Mantri Kaushal Vikas Yojana.

In this context, the researcher takes an initiative to explore the community welfare initiatives in India to discuss the issues and

challenges ahead.

1.2 REVIEW OF LITERATURE

India had the lowest educational enrollment (11%) aimed with ‘Vidyanjali Yojana’(School Volunteer Programme) a totally

volunteer program using community power to enhance educational sector in India. The volunteer teachers would be utilized for

educational up-liftment (Pradhanmantriyojana 2016).

According to Beswada Wilson (2017) a social activist, India’s rural population is used to defecating in the open.The Union

Government still has more than 2 years to reach the goal of eradicating open defecation by 2019 through Clean India programme.

The European Council on Foreign Relations (ECFR) (2015), viewed that India is changing, yet having lack access to physical

infrastructure (transport, water, and electricity), social infrastructure (education, skills, and health), financial products, natural

resources, technology, information technology, the judicial system, and markets. The shared responsibility of the national and sub-

national governments, public and corporates is to deliver community welfare in India.

Namrata Singh, Rajlaxmi Srivastava and Rajni Rastogi (2013), describes that CWI is the continuing commitment by business to

behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as

well as of the local community and society at large.

IIM Udaipur conducted a CSR study of 115 companies to arrive at the ranking. It covers industries as varied as automobiles,

banks,FMCG, infrastructure, information technology, metals and mining, oil, power, steel, pharmaceuticals, telecommunications and

others. TATA Steel was on first rank on CSR practices followed by Mahindra Group and SBI placed at 46th

rank(Economic Times

2014).

The review concludes that the Indian CWI challenged much more complex in terms of implementation and management but it has

moved beyond mandatory and corporates are now doing well to sustainability reporting.

1.3 STATEMENT OF THE PROBLEM

According to a recent McKinsey report, a larger portion of Indian families lagging in community services include access to quality

health services, hygiene, nutrition, social security, foodstuff, energy, housing and education (ET Bureau (2014). Community welfare

initiatives represents to a larger study of humanity social development and welfare of the state people, to set the community standards

and values in keeping with the set of values to get material and social well-being. It includes the establishments such as Non –

Governmental Organizations (NGOs), Non – Profit Organizations, Voluntary Organizations (VOs), Community-Based Organizations

(CBOs), charitable organizations, support organizations, networks or federations of such organizations, as well as professional

membership associations to engage in nation building in line with the India’s Vision 2022. Herein, the current study, ‘Strengthening

Community Welfare Initiatives’ is undertaken in order to compare the Indian experience from business perspective.

1.4.0 RESEARCH METHODOLOGY

The research design of the current study is exploratory in nature and adopts probability sampling technique. Random Sampling

method is used for selecting the corporations for this study in which the major players from various organizations have been selected

for the study.It aims at gauging the CWIfor business practices and its various activities. Further the secondary data pertaining to the

study is fathered from leading journals and a number of news items.

1.4.1 OBJECTIVES OF THE STUDY

The following are the main objectives of the study:

a) To understand Community Welfare Initiatives for businesses and to analyze the challenges and opportunities

b) To explore the Community Welfare practices in India

USERS PROVIDERS

STATE

http://yourstory.com/2015/07/digital-india-narendra-modi/

http://social.yourstory.com/tag/clean-india/

http://yourstory.com/2016/01/startup-india-analysis/


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c) To study the future outcome towards the phase of Community Welfare practices

1.4.2 LIMITATIONS OF THE STUDY

The sample size is significant, due to the challenge of gaining access to the quantitative data in the limited time.

The study is limited to businesses and entities In India

Lack of clarity of some paradigms has led to its elimination, despite its assumed importance.

2.1.0 COMMUNITY WELFARE INITIATIVES

Community welfare organizations work closely as individuals, groups and communities to serve on social welfare matters, charitable

purposes and support the upliftment and betterment of the children, child education, child welfare, child rights, women development,

women empowerment, old age homes for old age persons, physically and mentally handicap persons, and upliftment of slum Children

and education, social awareness and other objectives.

In India NGOs, Non – Profit Organizations, Voluntary Organizations (VOs), Community-Based Organizations (CBOs), charitable

organizations, support organizations, networks or federations of such organizationsare part of social development and welfare of the

state people.According toCentral Bureau of Investigation(CBI 2015), there are a total of around 31 lakh NGOs in 26 states.They aim

to work for social development and welfare of the society through various programmes and welfare activities of city, urban and rural

activities. NGOs are well organising Education, Health, Social Justice, Disaster Management, Natural Resource Management,

Agriculture Development, Social Awareness, Betterment of Backward and Deprived Communities, Poverty, Distress Relief and all

kind of welfare programmes related to Employment, female feticides, Rain Water Harvesting, Animal Welfare, Science and

Technology, Sports, Development of Art, Craft and Culture, Heritage Protection, Conservation of environment. The issues like

conservation and Protection of environment, Human Rights, Social Equality, Drinking Water issues, Legal Awareness and Aid,

Nutrition, Right to Information, Rural and Urban Development, forming and supporting Self Help Groups, Research and Development

are main part of the major active NGOs in Tamil Nadu.

2.1.1 GOVERNMENT INITIATIVES

State’s support to non-governmental organizations is of long standing.NGOs are also the go-to people for ideas and project

implementation in most social-development related ministries.NGOs implement many social development programmes like charitable

work, feeding the poor, maintaining cow shelters, housing pilgrims, organizing blood donation camps, as honorable social work.In

fact, NGOs are an acknowledged part of Indian Government’s pet projects like the Swachh Bharat (Clean India Mission)programme.

Clean India Mission is a campaign in India that aims to clean up the streets, roads and infrastructure of India's cities, smaller towns,

and rural areas focused on elimination the practice of open defecation by 2019.

To give a boost to the programme, the government has brought it in convergence with the rural housing scheme, Indira Awaas Yojana,

and got financial and technical support from the World Bank a loan of $1.5 billion, besides asking corporates to undertake the project

as part of their corporate social responsibility initiative (PTI 2016) and also considering a proposal of 30% of CSR funds on the

cleanliness programme spend by private companies and Public Sector Units (Mahendra Singh 2016).

Businesses in India plays a catalyst role in leveraging the Clean India Mission. They are able to dignify the lives of the

underprivileged, providing them with the basics with full commitment. During 2016, a US $41 billion corporation, the Aditya Birla

Group fully committed to the Clean India Missionhave helped build 10,000 toilets in the hinterland of India, funding them, scaling it

up to support the setting up of 15,000 toilets in 2016 (Adityabirla 2016).

2.1.2 PUBLIC INITIATIVES

Starving for food is may be by lack of food, but excess food wastages are the environmental issues. Food wastage is a major issue in

major Indian cities, including Chennai. Dr. Issa Fathima Jasmine, director of The Public Foundation, has come up with an initiative to

contest this problem — Ayyamittu Unn (Share with the needy before you eat). A community fridge and charity counter has been

placed to serve the needy like excess food, books, toys and such other items for the benefit poor in a dignified way and could play – a

big role (Manasa Nagarajan (2017).

Indian Express (2016), reported that Ernakulam, Kerala based restaurant chain ‘Pappadavada’ has installed the community fridge

called under the initiative ‘Virtue Tree’ to serve the leftover food as an attempt to contribute to the society and feed the needy.The

community fridge initiative has been growing in the country and after Ernakulam business, scores have come up in cities like

Bengaluru, Jaipur, Mumbai and Gurgaon.

2.1.3 BUSINESS INITIATIVES

Republic of India is the first nation in the world to cherish corporate giving into law. As per the CSR Rules of the Companies

Act, Section 135, Indian companies having a net worth of INR 500 crore (Cr.) or more, or a turnover of INR 1,000 Cr. or more, or a

net profit of INR 5 Cr. or more in a given financial year are required to spend at least 2% of its average net profit for the immediately

preceding three financial years on CSR activities.

The Indian Corporations typically support social programmes but they need to provide more overheads to NGOs and state initiatives

and try to solve societies pressing problems. Government of India is seeking the active participation of India’s large corporates to

undertake Ganga cleaning and river rejuvenation projects under their corporate social responsibility (CSR) programmes based on

recycling (ET Bureau 2017).

The government's suggested CSR activities include measures to eradicate hunger, promote education, environmental sustainability,

protection of national heritage and rural sports, and contributions to prime minister's relief fund and support government initiatives.

The CSR rules may increase overall spend by corporations and they now have to plan their corporate strategies to align legal

requirements.


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The corporations must have an action plan for their CWIs on the following areas:

CWIs and good practices should become more visible and verifiable. The quality of disclosures on CWIs has to improve.

Levels of trust and delivery of services should be tracked and improved by the CSR committees regularly.

CWIs should be integrated in education, training and research with potential funding possibilities through employees of organization.

The role of CWIs should be pre-determined and not like as a part of risk-management approach.

Business should find its ‘magnetic north’ with purpose to play a responsible role in well-being through their business aims.

Successful business leaders would agree with intention that community welfare initiatives are necessary part of doing business. The

business would benefit from better CWIs if they have the strategies to plan journey.HCL Technologies Company limited started an

initiative ‘Samuday' to make rural societies self-sustainable instead of freebies through the use of technology. The initiative works in

the areas of education, livelihood, health, infrastructure, sanitation and agriculture across 720 villages of Uttar Pradesh (Surabhi

Agarwal ET Bureau (2017). As part of its CSR initiative,SpiceJet Airlines taken upthe responsibility to light up through Solar

Microgrid, sustainable energy access to a village inAssam (Mihir Mishra, ET Bureau (2017).

3.0 OPPORTUNITIES AND CHALLENGES

The active participation of non-governmental organizations (NGOs),Non – Profit Organizations, Voluntary Organizations (VOs),

Community-Based Organizations (CBOs), charitable organizations, support organizations, networks or federations of such

organizations, as well as professional membership associations is a serious element in the work of the status of women in any country.

NGOs have been influential in shaping the current global policy framework on women’s empowerment and gender equality. They

continue to play an important role in holding international and national leaders accountable for the commitments they made in the

gender equality.

Community welfare initiatives are the services rendered by the community itself to deliver India’s future. A well-educated community

is a vaccine against poverty. Education is a fundamental right and literacy in India is a key for community welfare progress. As per

Census India (2016), Adult Literacy rate stands 69.3% for year 2011, the level is below the world average literacy rate of 84%.

Total Literacy Campaign is the Education Guarantee Scheme initiated by the Central Government had opened a great way for the

illiteracy problem. Whereas the remaining population is to be identified with remedial measures through a continuous evolution

criteria.

Corporates can support and strengthen the FoodBanking endeavor by developing new food banks or supporting existing ones to feed

the poor by integrating food banking into the organization’s CSR initiatives.

Figure 2: Social Welfare Initiatives through CSR Spend in India in FY 2016-17

Source: India csr outlook report (2017)- NGOBox


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According to CSR outlook report (2017), companies are spending funds on enhancing teachers' capacities as well aslearning outcomes

for students rather than just on school infrastructure.One of the challenge the Indian companies faced like spending the prescribed

CSR not met due to the internal processes or were confused about what and where they needed to focus on.

The history of social and environmental concern about business is as old as trade and business itself. Kirk Russell insisted that every

right is married to a duty, every freedom owns a corresponding responsibility. On the responsibility part, corporations could disclose

and take researchers points in depth on the CSR spend interms of fund, activities, impact and beneficiaries both direct and indirect;

quantitatively and qualitatively.

Corporations spend money to NGOs out ofaltruism as well as to comply with legal requirement. They aim to strategically market their

products and get predefined results of brand management and beyond advertising. NGOs and CSR are becoming synonyms due to the

‘strategicpartnerships’ between NGOs and corporations to claim more credit.Saving the nation is much better publicity. Hence, NGOs

should get funding to help solve problems like social inclusion, gender equality and equal opportunities.

NGOs have good intentions, they also have manycriticisms.A more practical concern is their funding. Many NGOs reliant on

international funding will have to close due if they fail to disclose any legal requirements as per the Foreign Contribution (Regulation)

Act, 2010. NGOs should be transparent and they may disclose the last 10 years financials on website. The government’s support is

part of a growing sympathy towards NGOs helps them modernize its infrastructure and push economic growth.

4.0 CONCLUSION

Strategic partnerships between community welfare projects and CSR arethe new trend in business initiatives. Initiatives have to be

successfully carried out in regions truly depict the national interest with the extensive support of local administration.Businesses must

feel responsible for the betterment of the local community wherever they operate. With closer relationships, the businesses should

choose and conduct projects not only based on branding merit but also shown to be ethical.

CSR is 21st century public relations and NGOsmake it easy. Community welfare services are to be aimed to ensure a minimum level

of income, service or other support for disadvantaged peoples such as the poor, elderly, disabled, students, unpaid workers such as

mothers and other caregivers, and underprivileged groups.Communities may benefit if they are thankful to the government authorities,

businesses and local institutions for supporting them to continue a well-balanced lifestyle.

REFERENCES

BIBLIOGRAPHY

1. Ministry of Corporate Affairs (MCA 2014), Companies (Corporate Social Responsibility Policy) Rules, 2014. Pp 1 – 10.

http://www.mca.gov.in/Ministry/pdf/CompaniesActNotification2_2014.pdf.

2. Census India (2016), National Level Educational Statistics by MHRD.Pp.1 – 6.

http://mhrd.gov.in/sites/upload_files/mhrd/files/statistics/ESG2016_0.pdf

3. India csr outlook report (2017 ), NGOBox.

http://ngobox.org/media/India%20CSR%20Outlook-Private%20Companies%20CSR%20Projects%20Report%202017.pdf.

4.Namrata Singh, Rajlaxmi Srivastava and Rajni Rastogi (2013), CSR Practices &CSR Reporting in Indian Banking Sector,

International Journal of Scientific and Research Publications, Volume 3, Issue 12, December 2013. ISSN 2250-3153. Pp. 1-7.

WEBLIOGRAPHY

1.Adityabirla (2016), Committed to the Clean India Mission - Corporate Aditya Birla Group

www.adityabirla.com/csr/committed-clean-India-mission

2.Beswada Wilson (2017), Swachh Bharat Abhiyan: Can India Become Open Defecation Free By 2019? [accessed Nov 02 2017].

http://swachhindia.ndtv.com/swachh-bharat-abhiyan-can-india-become-open-defecation-free-by-2019-7566/

3.Bibek Debroy (2015),What do India's citizens want? Economy & Society, The European Council on Foreign Relations (ECFR)

2015

http://www.ecfr.eu/what_does_india_think/analysis/what_do_indias_citizen_want

4.Central Bureau of Investigation (CBI 2015), India has 31 lakh NGOs, more than double the number of schools. (accessed on Oct 31,

2017)

http://indianexpress.com/article/india/india-others/india-has-31-lakh-ngos-twice-the-number-of-schools-almost-twice-number-of-

policemen/

5.Economic Times (2014) India's Best Companies for CSR 2014: Top 5 slots split between TATA, Mahindra Group & Maruti Suzuki

http://economictimes.indiatimes.com/articleshow/45295961.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=

cppst

6.ET Bureau (2014), What young corporate leaders want from Narendra Modi? (accessed on November 2, 2017).

//economictimes.indiatimes.com/articleshow/35625595.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

7.ET Bureau (2017), Nitin Gadkari wants firms to use CSR funds for Ganga cleanup (accessed on Oct 27, 2017)


8. Fazli Haleem, Harry Boer and Sami Farooq (2014), Environmental and social pressure as drivers of corporate social responsibility

in a globalizing world.

http://www.mca.gov.in/Ministry/pdf/CompaniesActNotification2_2014.pdf

http://swachhindia.ndtv.com/swachh-bharat-abhiyan-can-india-become-open-defecation-free-by-2019-7566/

http://indianexpress.com/article/india/india-others/india-has-31-lakh-ngos-twice-the-number-of-schools-almost-twice-number-of-policemen/

http://indianexpress.com/article/india/india-others/india-has-31-lakh-ngos-twice-the-number-of-schools-almost-twice-number-of-policemen/

https://economictimes.indiatimes.com/articleshow/35625595.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


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https://www.researchgate.net/publication/263346352_Environmental_and_social_pressure_as_drivers_of_corporate_social_responsibi

lity_in_a_globalizing_world [accessed Nov 02 2017].

9.Indian Express (2016), This Kochi restaurant has installed a community fridge for people to donate excess food for the needy.

(accessed on Aug 30, 2017).

http://indianexpress.com/article/trending/trending-in-india/this-kochi-restaurant-has-installed-a-community-fridge-for-people-to-

donate-excess-food-for-the-needy/

9.Mihir Mishra, ET Bureau (2017), Niti SpiceJet to light up a village in Assam under CSR

(accessed on Oct 27, 2017)

https://economictimes.indiatimes.com/news/company/corporate-trends/spicejet-to-light-up-a-village-in-assam-under-

csr/articleshow/61172586.cms

10.Pradhanmantriyojana (2016), Vidyanjali Yojana, a novel scheme towards literacy by the government of India. [accessed Nov 02

2017].

http://www.pradhanmantriyojana.co.in/vidyanjali-yojana/

11.PTI (2016), India, World Bank sign $1.5 billion loan pact for Swachh Bharat Mission, The Economic Times, 30 March 2016

https://economictimes.indiatimes.com/news/economy/finance/india-world-bank-sign-1-5-billion-loan-pact-for-swachh-bharat-

mission/articleshow/51617391.cms

12.Mahendra K Singh (2016), Companies may have to spend 30% of CSR funds for clean.

India.https://timesofindia.indiatimes.com/business/india-business/Companies-may-have-to-spend-30-of-CSR-funds-for-clean-

India/articleshow/51557541.cms.

13.Manasa Nagarajan (2017), Good response to ‘community fridge’. (accessed on Aug 27, 2017).

http://www.thehindu.com/news/cities/chennai/good-response-to-community-fridge/article19559682.ece

14.Surabhi Agarwal ET Bureau (2017), HCL Technologies to invest Rs 110 cr in Project `Samuday' (accessed on Nov 8, 2017).


https://economictimes.indiatimes.com/news/company/corporate-trends/spicejet-to-light-up-a-village-in-assam-under-csr/articleshow/61172586.cms

https://economictimes.indiatimes.com/news/company/corporate-trends/spicejet-to-light-up-a-village-in-assam-under-csr/articleshow/61172586.cms

http://www.pradhanmantriyojana.co.in/vidyanjali-yojana/


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34

SUSTAINABILITY AND CHALLENGES OF ECOPRENEURSHIP-AN OVERVIEW

*Dr.G.MageshKuttalam, **S.Gayathri & ***S.A.RahmathAmeena Begum

*Assistant Professor, Department of Management studies, M.S.University, Tirunelveli.

**Assistant Professor, Department of Business Administration, St.Mary’s College Thoothukudi,.

***(Head & Assistant Professor, Department of Business AdministrationWavooWajeeha Women’s College of

Arts & Science, KayalpatnamThoothukudi

ABSTRACT

This article aims to shed light on the area of ecopreneurship as a topic which is gaining importance in recent days. As it is an

emerging field, the research is still in its infancy. The ideal meaning of ecopreneur is defined as “the one who creates and sells

environmentally friendly products and services including organic farming/food processing, undertake recycling efforts or involve in

green construction.” In the same way ecopreneurship is recalled as Green Entrepreneurship, not to be mistaken for “Sustainable

Business” or “Green Business”, ecopreneurship is simply referred to as the development of enterprise through entrepreneurship

while incorporating an environmentally responsible perspective into the operations and goals of the entrepreneur. It is the

convergence of three main concepts of (i)Eco-innovation (ii)Eco-opportunity (iii) Eco-commitment. This paper attempts to deliberate

on the ecopreneurship sustainabilityin agribusiness. Further attempts to articulate the legal aspects of sustainability and ways to

implement sustainable product design and challenges for their survival.

Key words: ecopreneurship, sustainability,challenges

Introduction: Ecopreneurship is a term coined to represent the process of principles of entrepreneurship being applied to create

businesses that solve environmental problems or operate sustainably. The term began to be widely used in the 1990s, and it is

otherwise referred to as "environmental entrepreneurship."Ecopreneurship is a combination of two words, ‗ecological‘ and

‗entrepreneurship‘. Thus, it can be defined as entrepreneurship through an environmental lens. For a company to have a positive

environmental influence, a real improvement can be created only if the production processes, products, and services are

environmentally superior. Ideally, ecopreneurship pulls the whole market towards environmental progress.

Ecopreneur,strive for business success through environmental solutions for the mass market. The move to a sustainable business

framework provides numerous niche areas that enterprising individuals can identify. This includes the development of new products

and services, improving the efficiency of existing firms, new methods of marketing, re-configuring existing business models and

practices. Ecopreneurship is not only important because it has the potential to be a major force in the overall transition to a more

sustainable business paradigm but also provides new opportunities for the first movers to identify and exploit such opportunities in the

contemporary period.

Objective of the study:This paper attempts to review the published resources and identify the concept of green entrepreneurship, to

deliberate on the ecopreneurship sustainability in agribusiness and to find the ways to implement sustainable product design and

challenges for their survival.

Scope of the study: Entrepreneurship is considered to be the moving force of the economy, assuring economic growth, technological

and organizational innovations, and new workplaces with well trained staff. Here training staff to work in the field of ―eco-

entrepreneurship‖, as well as finding ecologically engaged people involved in solving an environmental issue, is the key strategy for

the success of the ―green‖ idea. Also eco-friendly businesses are many and it needs to reflect on people‘s lives in different ways in

order to encourage them to think ―green‖.

https://www.revolvy.com/main/index.php?s=Sustainable%20Business&stype=topics

https://www.revolvy.com/main/index.php?s=Sustainable%20Business&stype=topics

https://www.revolvy.com/main/index.php?s=Green%20Business&stype=topics


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Literature Review: Sustainable development and entrepreneurship are increasingly regular bedfellows. As more stringent policy

drivers and stronger civil and stakeholder pressures drive companies towards better green practices, there is a recognition that both

competitive advantage and indeed simply sustained business performance will increasingly rely on best green practice and companies

are beginning to take note. There is increasing recognition of both the growth of and the need for, green talent, that is, the so-called

‗green collar‘ workers.

This phenomena appears equally strong in both employer and employee perspectives. For example, in a 2007 Ipsos Mori survey –

―more than 80 per cent of respondents indicated their preference to work for a company with a good reputation for environmental

responsibility‖ (Glen 2009, p54.) And Brokaw comments that, ‗employees are hungry not just for a paycheque and some creativity in

their job, but for companies that pay attention to the world and ask them to, too…‘ he goes on to say that that ‗increasingly …

translates into wanting companies to pay attention to issues around sustainability.‘ (Brokaw 2009, p33.) Definitions of green talent are

beginning to appear in the literature. Glen defines ―Green talent…[as] employees with the mindsets and skills to drive sustainability,‖

and goes on to say that these are ―the kind of workers who boost the sustainability of companies.‖ (Glen, J. 2009, P53.) Glen even

goes as far as to forecast an ―impending boom in green talent…‖ noting that, ―Iberdrola, the Spanish energy company…. has defined

green skills as mission-critical.‖ (Glen, J. 2009, P55.)

Environmentalism can be understood only in terms of attitudes; it cannot be subsumed into, or understood in purely economic terms

because of the power of the moral dimension whereas entrepreneurship is primarily an individualistic economic action, but it too can

be driven by moral attitudes (Anderson, 1998).

Ecopreneurship is also important because eco-innovations will be the future competitive advantage of companies and countries. They

argued that if companies and countries want to be successful in the international market, they cannot rely on having low cost as their

competitive advantage, but rather on new and innovative environmental technologies, services and processes which will be the more

important sources of competitive advantage. The long-term sustainability of our economic system does not depend only on

quantitative growth, but also on the ecological aspects of the growth and sustainable development (Klimova and Zitek, 2011, p. 2).

The world population is expected to increase by 50 per cent by 2050, and with it will come an increase in consumption (World

Business Council for Sustainable Development, 2002). Although part of this consumption is important for relieving poverty in many

emerging countries, most it will be done by affluent consumers and can have a negative impact on the ecosystems (Volery, 2002, p.

542).

Biodiversity loss also justifies entrepreneurial action to solve environmental problems. The entrepreneur‘s perception on Information

Technology Innovation Adoption plays an important role of precipitating events on usage behaviour (S. Moghavvemi).

In a market system, sustainable development requires sustainability innovation, and entrepreneurs who can achieve environmental or

social goals with superior products or processes that are successful in the marketplace of mainstream customers, contribute to solving

environmental problem and creating economic value. They generate new products, services, techniques and organisational modes

which substantially reduce environmental impacts and increase the quality of life (Schaltegger and Wagner).

Typologies of Ecopreneurs: The various typologies of entrepreneurs undertaking ecopreneurship is given below

Volery, T. (2002):

Environmental Conscious: Develops innovations that either reduces resource and impact or improve cost efficiencies.

Green Entrepreneurs: Aware of environmental issues and have their businesses in the environmental marketplace

Walley and Taylor (2002)

Innovative Opportunist: Financially oriented entrepreneur who spots a green niche or business opportunity that happens to

be green

Ad hoc or accidental entrepreneur: Spots opportunities that are green, rather than seek out a niche in green spaces

Visionary Entrepreneur: Built their businesses based on sustainability principles

Ethical Maverick: Sets up alternative style business on the fringes of society

Linnanen (2002)

Self-Employer: Advocates nature-oriented enterprises e.g. wild life habitat preservation, eco-tourism etc; low desire to

change the world and low financial drive

Opportunist: Involved in environmental technology to help businesses and communities reduce environmental load on

water, air and soil. They have a low desire to change the world and high financial drive.

Non-profit Business: Entrepreneurs have high desire to change the world and low financial drive

Successful Idealist: Entrepreneurs have high desire to change the world and high financial drive

Isaak (2002)

Green Business: Entrepreneur did not start green business from scratch, but later discovered the advantages of greening

their existing businesses.

Green-Green Business: Entrepreneurs designed business to be green in its products and processes from scratch

Schick, Marxen, Freiman (2002)

Eco-dedicated: Consistently adopts environmentally friendly business practices


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Eco-open: Partially adopts environmentally friendly business practice

Eco-reluctant: Adopts environmentally friendly business practices only when they are forced by regulations

Schaltegger (2002)

Alternative Actors: Businesses exist to support alternative lifestyle e.g. type of counter culture

Bioneers: Inventors with strong R&D focus in high technology sectors e.g. alternative energy sources

Figure 1. Conceptual Composition Model on Sustainability Factors Of Green Concept

The concept of Green Entrepreneurship: The above foresaid mentioned factors are the main indicators of sustainability of

ecopreneurship. The concept for the ―green entrepreneurship‖ derived from the combination of the main characteristics of the

entrepreneurship itself – innovation, risk, a brand new business idea, and the ecological and social engagement of those who do

business. Therefore, in literature being ―green‖ is associated with being ―social‖ for ecological issues which are, too, social ones.

Other authors believe that ―green entrepreneurship‖ is actually sustainable entrepreneurship. In other words, it is one of the three most

important components of the sustainable development and an intersection of traditional, social and sustainable entrepreneurship.

Ecopreneurship is therefore important to find the new technologies to protect the environment, and to ensure that there are enough

resources to fill the needs of both the current population and future generations.

Ecopreneurship

Sustainability

Ecological Modernisation

- Benefits to Business & Society

Stimulating Factor of

Ecoprepreneurship

Challenges

Emerging Green concept

-Focus to Agri Business

Challenges:

-Innovation in designing of Product

-Equalize ecological & economic goal of business

-Formal implementation of legal legislations

-Bringout eecological immediate solutions

-Discover possible green market:

Stimulating Factor of Ecoprepreneurship:

-Quality & reliable Information

-Facilitate collaboration

-Speed comminication

-Access to finance

-Clear policy on government precurement

-Incentives to customers


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37

Ecopreneurs focus on agri-business: The literature that deals with the relationship between environment and agribusiness is wide

and it explores many aspects, from the response to environmental issues at a country level, to the definition of performance

measurement and the description of practices. A relevant part of the research focuses on the relationship between stakeholders and

environmental management furthermore; there are many case studies that outline how environmentally friendly firms operate in

agribusiness. The concept of agribusiness has evolved since its first introduction by (Davis in 1956) and it has been reframed as an

approach that slowly turned from being farm centric to consumer and resource centric (Shultz and Edward, 2005); McElwee (2008)

underlines that the emergence of new consumer needs and the existing constraints in natural resource availability have reinforced the

sustainable orientation of agribusiness.It must be said that agribusiness was touched by many phenomena that have improved the

overall sustainable orientation within the business.

1. Firstly, pressures arising from consumer and environmental movements have reshaped the market, a sense of dissatisfaction

towards industrialization has pervaded many profitable customer segments and has laid down the roots for the development

of niches.

2. Secondly, innovative technologies are available from related businesses and they can be implemented in the agro-food

industry for reinforcing environmental orientation. The overall accessibility of technologies has improved, and technological

solutions can be borrowed from other research fields and, then, they can be employed in agriculture. The relationship

between ecopreneurs and technology has been investigated. Most of the research has focused on the role that ecopreneurs,

seen as change agents, have in the diffusion of innovation: Pastakia (1998) underlines that ecopreneurs are individuals that

seek to promote eco-friendly ideas/products/technology. From the literature, we do not have any insights into the ability of

ecopreneurs to borrow technology from related or other fields, and, then, to develop new industry solutions

According to the World Business Council for Sustainable Development (WBCSD, 2010 [53]; Indaco-Patters et al., 2013,

ecopreneurs are key drivers (Indaco-Patters et al., 2013 call them catalysts) of innovation, and they promote a change from a

business vision based on the exploitation of natural resources, to one that is based on resource preservation. Ecopreneurs who

operate in agribusiness, also find a breeding ground for the development of new technologies, due to market and industry

pressures for assuring food quality, safety and consumer trust; these elements, combined with the emerging interest for

environmental control, have been supported by organizations and institutions, and, consequently they have shaped

ecopreneurs (Antonopoulos et al., 2015).

Welfare of ecological modernization:The concept of ecological modernization can be used at two levels.

1. First, it can be used as a theoretical concept to analyze those changes to the central institutions in modern society deemed

necessary to solve the ecological crisis.

2. Second, ecological modernization is used to describe a more pragmatic political programme to redirect environmental

policymaking.

In the sense of the first meaning, ecological modernisation stands for a major transformation, or ―ecological switch‖, of the

industrialization process into a direction that takes account of the need to maintain the sustenance base. As with sustainable

development, ecological modernisation indicates the possibility of overcoming environmental crises without leaving the path of

modernisation (Mol and Spaargaren, 1993). It is claimed by implementing ecological modernisation business can gain advantages in a

number of ways,

Through greater business efficiency due to reduced pollution and waste production

Avoiding future financial liabilities, such as the potential cost of contaminated land clean-up

From the potential for increased sales of more ‗environmentally friendly‘ products and services

Through the sale of pollution prevention and abatement technologies

Restructuring of production and consumption towards ecological goals, includingthe development and diffusion of clean

production technologies

Decoupling economic development from the relevant resource inputs, resource useand emissions

Exploring alternative and innovative approaches to environmental policy, such as

‗economising ecology‘ by placing an economic value on nature and introducingstructural tax reform

Integrating environmental policy goals into other policy areas; and the invention, adoptionand diffusion of new technologies

and production processes

In Huber‘s view, ecological modernisation offers us the only way out of ecological crisis through more industrialization, albeit with

changed production and consumption. However, this view over emphasises the industrial and technological aspects and neglects the

social context within which these occur - the ‗ecological switchover‘ is seen as a logical, necessary and inevitable stage in the

development of the industrial system. Technological developments occur largely autonomously and act to determine change in

industrial systems and their relations with the social and natural environment. The propulsive force of technological change means that

the state has little role in redirecting the processes of production and consumption. Indeed, while the theory of ecological


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modernisation proposes that institutions can be restructured on ecological lines and away from a purely economic rationale, the theory

is largely silent on the extent to which such institutions can be reformed - this remains open to empirical investigation (Mol, 1994)

Stimulating Ecopreneurship: Implementing action is necessary for developing environmental innovations, what should be done to

stimulate ecopreneurship?

1. Provide high quality and reliable information to Ecopreneurs: Lack of quality information is a major barrier to

ecopreneurship. Because environmental innovations involve highly technical operations very little can be accomplished

without reliable information about the nature and extent of the problems, the range of solutions available, the costs, and how to

minimize them (Banks & Heaton, 1995). Hermann (2011) also states that information availability and management help the

entrepreneur or ecopreneur get closer to the opportunity i.e., where the market changes are and what is needed to access them.

2. Facilitate collaboration and networking among ecopreneurs and innovation intermediaries: ―An innovation intermediary

is an organization or body, which acts as an agent or broker in any aspect of the innovation process between two or more

parties.‖ (Howells 2006, p. 172).Collaboration between ecopreneurs and innovation intermediaries provide access to direct

assistance, such as advice on funding sources, advice on business operations, identification of potential collaborators which

supplement resources to the ecopreneurss and can lead to a startup involved with ecoinnovations (Klewitz, Zeyen& Hansen

(2012).

3. Increase the speed of commercialization of environmental technologies: Many available environmental technologies have

not been successfully introduced into the market because of market, infrastructure, production and consumption obstacles

(OECD, 2009). One way to accelerate the commercialization of new technologies and the development of startups that will

create clean technologies and green jobs is to establish a business incubator, e.g., cleantech business incubator. The incubator

will offer flexibleready-to-go office space, lab facilities, and a supportive environment, where starting teams can share ideas

with other entrepreneurs and fuel innovators. It will also give each startup the chance to work with a dedicated mentor, as well

as access to a growing network of cleantech and business experts and introductions to prospective investors (Walti, 2011).

4. Increase access to financing:Access to financing is extremely difficult for entrepreneurs in green innovation because of the

immaturity of the market, the difficulty associated with accurately pricing the relative risk of the investment and the lack of

history or track record of success. All of these make it more difficult for new entrants to innovation to obtain reasonable costs

financing, than it is for established firms (OECD, 2011). To harness the innovative potential of entrepreneurs for environmental

technologies, there is need to improve access to financing through strengthening financial support with loan guarantees, grants,

revolving loan funds, tax credits, etc.,

5. Establish clear policy on government procurement of green products:The biggest challenge green businesses face is going

from research to production and distribution. Government can help companies make this transition successfully by procuring

green products. Government, at all levels, must play a more important role in terms of purchasing green products and services

and in showing other consumers the benefits of purchasing green products. Through the introduction of sustainability criteria

into public procurement decisions, the government can stimulate the development and use of more environmentally-friendly

technologies. (Ambachtsheer, Charest, Ksowski, Mitschele, & Nielson, 2007).

6. Provide incentives for customers:Consumers also have an important role to play in fostering green innovation. The

purchasing decisions that they make therefore have major impact on the extent to which markets can work to provide

innovation in green growth. Providing incentives to consumers will stimulate the market and encourage investment in

environmental R&D and environmental technologies. In addition to giving tax concessions governments can also use grants and

subsidies to influence consumer behavior and protect the environment, while at the same time creating opportunities for

environmental innovation, investment, employment and green growth.

Discussion on challenges and product Design:

The ―green‖ entrepreneurship is an economic activity whose products, services, methods of production or organization have positive

effect on the environment. This effect could be a result of the following:

Offering products or services the consumption of which leads to a change in the consumer‘s behaviour, reducing the negative

effect on the environment;

Equalizing the ecological and the economic goals of the company;

Introducing innovative ecological solutions to problems connected with production and consumption of products and

services;

Developing business models which, when applied to use, might lead to a sustainable economic development;

Discovering new possibilities on the market which are in connection with the demand and new way of living of the society.

Interesting Green Industry Business Trends-A statistical Report: In our increasingly connected world, consumers are becoming more

educated about the environmental impact of a growing population competing over finite natural resources. Put simply - most people are

more open to less harmful products - especially if they are as easy to find and use as other products.


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39

Though the scientific cause and effect of many environmental issues remains debated by some, what is undeniable is a

significant consumer interest in environmentally friendly business practices and products. A recent survey found that 88 per

cent of Americans believe taking care of the earth is very important - but only 52 per cent believed that the government should

be taking action to protect it. Green business can benefit either way: greater consumer interest and/or more protective policy!

Globally, a report from 2014 says that 55 per cent of consumers across 60 countries are willing to pay higher prices for goods

from environmentally conscious companies. A 2013 study claims that 71 per cent of Americans at least consider the

environment as a factor when shopping.

Organic food sales in particular seem to have turned a corner, jumping 11.3 per cent in 2014, while overall food sales grew

only 3 per cent. Organic food has become far more mainstream over the last several years - expanding well beyond the niche

market it once was. Sales in 2014 were over $35 billion - compared to only $3.4 billion in 1997. Growth is expected to

continue strongly until at least 2018.

Conclusion

―Green entrepreneurship‖ could be defined as a new type of commerce which is equally profit- and nature-orientated, and might

possibly solve ecological problems throughout its business activity. A strong link is identified between entrepreneurialism and

environmentalism. The field of Ecopreneurship is still in its infancy, but the number of ecopreneurs is growing. There is also a solid

theoretical rationale for Ecopreneurship. Green businesses are models that can help show the way to increase productivity while

reducing resource use in a manner that is harmonious with human health and the sustainability of non-human species as well. Green

start-ups make it easier to ‗fix ‗environmental components and processes from the outset.

In this paper, we have underlined the factors of ecopreneurship sustainability and its challenges; the starting point was the clear

linkage between agribusiness and ecopreneurship and its sustainability. Thus, it would be useful to investigate how sector dynamics

affect the birth of ecopreneurship and if the differences perceived among sectors in terms of degree of innovativeness have a similar

echo within the ecopreneurship sphere. The debate on ecopreneurship seems to have solid bases for development in the coming years

and for evolution in multiple directions.

Ecopreneurship can be a complex issue to fully understand and manage; it takes many forms and flourishes under many different

conditions, and can often emerge under most unlikely and least predictable circumstances. Despite these limitations, it is an increasing

important area of business activity. Understanding this phenomenon, and utilize it to build a more sustainable future is the common

focus of this study. It is to be hoped that this will provide springboard form which others will also become motivated to work in this

fascinated new field of business.

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management practice for the agriculture sector crop and animal production. Retrieved september 18, 2016, from

http://susproc.jrc.ec.europa.eu/activities/emas/documents/Agriculture BEMP.Pdf

5) Avolio, G., bLASI, e., Cicatiello, C., & Franco, .. (2014,14,231-245). The drivers of innovation diffusion in agriculture.

evidence from Italian census data.J.Chain Network.science .

6) Bennett, S. (n.d.). Ecopreneurship:The complete Guide to Small Business Opportunities form the environmental Revolution.

7) Berle, G. (1991). The Green entrepreneur:Business oppurtunities that can save the Earth and make you Money. Blue Ridge

Summit,PA:Liberty Hall Press,.

8) Cuerva, M., Triguero-Cano, Á., & Córcoles, D. (2014). Drivers of green and non-green innovation:Empirical evidence in

law-Tech SMEs. J.Clean.Prod., 68,104-113.

9) Davis, J. (1956). From agriculture to agribusiness:Moving from farm to market centric. Harv.Business.Rev., 34,107-115.

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organisational Change Management, vol 20.3.

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Sciences, Vol. 13, Suppl. 2,, pp 321-323, .

13) Hockerts, K., & Wustenhagen, R. (2010). Greening Goliaths versus emerging Davids—Theorizing about the role of

incumbents and new entrants in sustainable entrepreneurship. J.Bus.Ventur , 25, 481-492.

14) Holt, D. (2012,2017). Constructing sustainable consumption from ethical values to the cultural transformation of

unsustainable markets. Ann.Am.Acad.Politcal social science, 644,236-255 2017.9,492.

15) Indaco-Patters, S., Fearon, C., Nolan, C., & Warden, K. (2013). Micro-ecopreneurs and the UK food industry:short-term fad

or sautainable reality? Ind.Commer Trian., 45,330-335.

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17) Mol, A. (1994). Ecological modernisation of industrial society: three strategic elements, . International Social Science

Journal, 121,347-361.

18) Mol, A. a. (1993). Environment, modernity and the risk-society: the apocalyptic horizon of environmental reform.

International Socialogy , 431-459.

19) Naumes, M., & kammermeyer, J. (2010). Sustainable Harvest International: Creating local ecopreneurs. In Making

Ecopreneurs: Developing Sustainable Entrepreneurship;. UK: Schaper,M.ED;Gower Publishing:Survey.

20) Panackal, A. S. (2014). Youth Ecopreneurship: A Key for Success of First. Annual Research journal of SCMS , 1.

21) Pastakia, A. (1998). Grassroots ecopreneurs:Change agents for a sustainable society. J.organ.change management, 153-173.

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Econ , 1.

23) Shultz, C. (2005). Reframing agribusiness:Moving from farm to market centric. J.Agri business, 23,57-73.

24) STEFAN, S. (n.d.). A FRAMEWORK FOR ECOPRENEURSHIP LEADING BIONEERS AND ENVIRONMENTAL

MANAGERS TO ECOPRENEURSHIP. GERMANY UNIVERSITY OF LUNEBURG.

25) Talwar, V. a. (2013 ISSN 2231-5985). Ecopreneurs:The New Trend for Entrepreneurs'. IJRFM,Vol.3 no.2.

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27) https://www.franchisehelp.com/industry-reports/green-industry-report/


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GREEN FINANCE IMPLEMENTATION IN BANKS – A REVIEW

V. Govindaraja* and G. Ilankumaran

**

**Research Scholar, Alagappa Institute of Management, Tamil Nadu, India.

**Assistant Professor , Alagappa Institute of Management, Tamil Nadu, India.

ABSTRACT

Green banking refers to the initiatives taken by banks to encourage environment-friendly investment. Green banking is a necessity for

future sustainability. It is very important for the banks to be pro-active and accelerate the rate of the growth of the economy. Given

the criticality of green finance, an attempt has been made through this note to study the efforts made in this regard in India and

abroad and to make recommendations for the next steps to be taken in India. It was observed that the institutions in India are focusing

on highly simpler aspects when compared to measures taken globally. The governmental agencies and regulated entities are required

to leaf out of such measures and drive the same in India.

Key words: Green banking, Green finance, green investment banks

Introduction:

The concern for environmental sustainability by the banks has given rise to concept of Green Banking. The concept of ―Green

Banking‖ will be mutually beneficial to the banks, industries and the economy. Green financing is the part of green banking. Green

banking means promoting environmental friendly practices and reducing carbon footprints from the banking activities. Green banking

aims at improving the operations and technology along with making the clients habits environment friendly in the banking business. It

is like normal banking along with the consideration for social as well as environmental factors for protecting the environment. The

International Finance Corporation (IFC) claims that if we are to transition to a sustainable global economy, we need to scale up the

financing of investments that provide environmental benefits, known as ―green finance‖.

As per www.climatemundial.com, green finance refers to any financial instrument or investment – including equity, debt, grant,

purchase and sale or risk management tool – issued under contract to a firm, facility, person, project or agency, public or private, in

exchange for the delivery of positive environmental externalities that are real, verified and additional to business as usual, whereby

such positive externalities result in the creation of transferrable property rights recognised within international, regional, national and

sub-national legal frameworks.

Green financing measures are critical for banks to mitigate a few very important risks in banking processes. Climate change and

global warming can have direct as well as indirect costs to banks as the adverse weather conditions due to global warming would

affect the economic assets financed by the banks thus leading to high incidence of credit default. Credit risk can also arise indirectly

when banks lead to companies whose businesses were affected due to changes in environmental regulation. Further, banks like other

business entities face legal risk if they do not comply with relevant environmental regulation. They also face risk of direct lender

liability for cleanup cost for damages in case they actually take possession of pollution causing assets. The banks also face reputation

risk owing to the impact created by any measures not known to be environment friendly.

Given the criticality of green finance, an attempt has been made through this note to study the efforts made in this regard in India and

abroad and to make recommendations for the next steps to be taken in India.

Value Proposition for Green Banks in India: Green banks can help leverage limited public finance to drive private investment to

grow the domestic clean energy market, providing the many benefits specifically to India. Green banks offer solutions to overcome

local financing barriers for clean energy and can play a significant role in accelerating low carbon development projects by doing the

following:


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Reduce cost of domestic capital Attract,

coordinate and deploy capital

Reduce perceived financing risk

Attract international investment

Finance smaller projects (e.g., microgrids)

Meet national renewable energy targets

Meet international climate commitments

Reduce Cost of Domestic Capital: Domestic Indian banks typically offer higher interest rates and shorter terms than clean

energy projects‘ payback periods allow, creating an uneconomical mismatch that makes such projects more difficult to finance

and build if the developer is not already well-resourced. Green banks can provide lower interest rates and longer terms of

financing to match the payback period and enable more projects to be built – a critical role as India scales its clean energy market.

Attract, Coordinate, and Deploy Capital: Research on the Indian clean energy markets suggests that instruments like

government bonds, infrastructure debt funds, partial credit guarantees, partial risk guarantees and currency hedging facilities

could address core limitations of Indian debt markets. Staffed with finance professionals and capitalized with low cost funds, an

Indian green bank would be a nexus for the development and deployment of such products. The green banks would serve as a

bridge between government ministries and private markets to ensure market responsiveness in the service of the public interest.

The green bank would be endowed with sufficient flexibility to evolve products in real time as information on their performance

comes in

Reduce Perceived Financing Risk: High financing risk is commonly expressed by traditional bankers in India, unfamiliar with

clean energy technologies as a reason for higher cost financing. Green banks can offer products such as partial credit guarantees,

insurance, or loan-loss reserves that reduce the risk and therefore the cost of capital

Attract International Investment: International investment and new private financial investors to Indian clean energy projects

are critical untapped sources of capital to spur India‘s renewable energy deployment. Green banks lend their name, capital, and

credibility to clean energy projects, which is attractive for private players to invest in them. Additionally, a green bank can issue

green bonds, which enables access to scalable, long-term and low cost debt capital from institutional investors. Following on the

example of rupee denominated Masala bonds, green banks can help attract and funnel international private investors to local clean

energy projects, which is currently lacking.

Finance Smaller Projects: Smaller projects like rooftop solar installations on buildings and off-grid solar panels or microgrids in

rural villages have the potential to be transformative in India. The ability of green banks to aggregate these smaller projects

through ―warehousing‖ enables them to be financed through green banks by large investors.

Meet National Renewable Energy Targets: India has set ambitious energy targets for itself, including 175 GW of renewable

energy by 2022. Local developers cannot rely solely on domestic finance or international development banks to fund and build

the solar and wind energy projects needed to achieve these clean energy targets. Green banks‘ ability to attract international

investment and finance smaller projects at a lower cost for developers makes it a key tool to quickly scale the domestic market.

Meet International Climate Commitments: India‘s emissions intensity reduction target of 33-35 percent from 2005 levels by

2030 – made as part of the UN climate commitments in December 2015 in Paris – require serious investment in renewable energy

and energy efficiency. As one of the country‘s most vulnerable to the impacts of climate change, positioning itself as a leading

clean energy market not only reduces carbon emissions and meets these climate commitments, but also allows India to develop its

low carbon economy

Methodology:

The study follows literature review and secondary information available on the green finance subject from leading publications in

India and abroad. For global level information, information has been sourced from leading and well-known institutions such as OECD

(Organization for Economic Cooperation and Development) and UNEP (United Nations Environment Programme).

Limitations of the Study

The limitation of the study is that it is only based on the secondary publications.


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Green Finance / Green Banking Measures in India

Sharma, Gopal et al (2014) studied the customer awareness on green banking initiatives in select banks in Mumbai (India). They

concluded that with Go Green mantra permitting, the banking sector too has adopted sustainable practices in all spheres of life.

However, they concluded that green initiatives like communication through press, bank environmental policy, concession on energy

savings, solar ATMs, green CDs are not familiar in green initiatives by the bank as per the respondents. Further, they observed that

while banks taken some initiatives, they haven‘t accepted the principle equator policy to keep a record of their clients.

Jaggi (2014) studied the initiatives taken by ICICI Bank and State Bank of India (SBI) on green banking. Green products and services

providing initiative of ICICI bank included instabanking (anywhere, anytime) home finance and vehicle finance. SBI too has

introduced a green channel counter, online money transfer, wind farms, no queue banking, enhanced commitment towards achieving

carbon neutrality in its day to day operations. Besides the above mentioned initiatives these banks have also taken other steps for

energy conservation like recycling, duplexing (two side printing), CFL‘s, carpool etc.

Sudhalakshmi and Chinnadorai (2014) presented the status of Indian banks in respect of green banking and also stated that though

going green is very much essential for emerging economies like India significant efforts have not been taken yet. They concluded that

Indian banks in this aspect are running behind time in successful adoption of green phenomenon and that serious steps are required to

be taken on the subject.

Nath, Nayak et.al. (2014) made an attempt to study the green rating standard given by RBI, World Bank‘s social and environmental

norms and initiative taken by banks in adopting green practices. During the course of their study they also listed strategies for adopting

green banking. Under this concept banks are evaluated on the basis of carbon emissions and also amount of recycling activities. Social

and environmental norms for financial institutions have been framed by World Bank and these norms provide ways to reduce

environmental impact. Besides banks are also required to do environmental impact assessment, do annual reporting and also adopt

sustainable technology.

According to Agarwal and Dharwal (2013), green banking is a key in mitigating the credit risk, reputation risk and legal risk. The

author has suggested in his book some green banking strategies like green financial products, carbon credit business, carbon footprint

reduction, green mortgages, green buildings and social responsibility services towards the society at large. The observed that most

banks were doing ‗Single bottom Analysis‘ that is they were considering financial performance of borrowers, but instead they should

do the ‗Triple bottom analysis‘ i.e., analysing the social and environmental performances as well.

Jayadatta and Nitin (2017) on their study on opportunities, challenges, initiatives and avenues for green banking in India concluded

that in a rapidly changing market economy where globalization of markets are intensified the competition, banks should certainly play

an important role to take ecological and environmental aspects as part of their lending principle which would also force industries to

go for mandated investment for environment management. They observed that green banks are at start-up mode in India and that a lot

of channels are unutilized by the Indian banks for greening their activities even though they have started adopting green practices.

They had concluded that there is a huge lot of opportunity available in India which the banks can exploit and movie their goal of

economic development.

The various banks in India provide green banking services to their customers. A few of the examples are as under:

o Punjab National Bank had taken various steps for reducing emission and energy consumption.

o SBI has launched green banking policy and set up windmills in Tamil Nadu, Maharashtra and Gujarat in generating

15MW power. This is the first bank in India which is in green banking and promoting green power projects.

o Bank of Baroda had taken various green banking initiatives such as financing a commercial project. BOB is giving

preference to environment friendly green projects such as windmills, biomass and solar power projects which help in

earning the carbon credits.

o Canara Bank had adopted environmental friendly measures such as mobile banking, internet banking, telebanking,

solar powered biometric operations.

o ICICI Bank Ltd had started ‗Go Green‘ initiative which involves activities like Green products/offerings, Green

engagement and green communication with customers.

o HDFC bank is taking up various measures for reducing their carbon footprints in waste management, paper use and

energy efficiencies.

o IndusInd Bank: It has initiated its Green Office Project under which it had installed solar powered ATMs in different

cities targeting energy saving as well as reducing CO2 emissions.

o YES Bank: It has projects portfolio in the areas of alternative energy and clean Technologies.


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Green Finance / Green Banking Measures across the globe

Various measures have been taken globally and the same measures are of much higher intensity when compared to measures taken in India.

As per UNEP report (2017), nearly 20 leading global banks and investors, totaling $6.6 trillion in assets, launched the Principles for Positive

Impact Finance - a set of criteria for investments to be considered sustainable. The Principles demonstrate the willingness of financial

institutions to go beyond current practices and to contribute to foster a more sustainable development. They should provide strengthened

foundations for a positive cooperation between public and private actors in this area. The Positive Impact Principles are a game changer,

which will help to channel the hundreds of trillions of dollars managed by banks and investors towards clean, low carbon and inclusive

projects. The Principles provide financiers and investors with a global framework applicable across their different business lines, including

retail and wholesale lending, corporate and investment lending and asset management.

As per Huffington Post (2016), G20 heads of state for the first time recognized in 2016 the need to ‗scale up green finance‘ setting out a

series of steps to make this happen. Key countries issued strategies for greening their financial systems, with China in the vanguard launching

a 35-point programme. In all, UN Environment estimates that the number of policy measures to green the financial system has more than

doubled to over 200 measures across 60 countries. Importantly, these policy moves were closely connected with the rapid growth of green

finance in the marketplace.

Building on the work of the Group of 20 (G20) Green Finance Study Group, the IFC Climate Policy team has developed a new approach to

assess and track green finance, focusing on the banking sector, to understand the current status of green lending and provide

recommendations on how to better align different approaches to measuring green finance. This will allow for analysis on a broader scale,

which could result in better policies to mobilize additional green finance. This bottom-up methodology first defines what is ―green‖ at a

project level, based on the intended use of the investment in the real economy, through the application of estimates for the respective green

share per project. It then aggregates the numbers at an industry and country level. These results can be compared to green finance needs to

identify gaps and action points. There are many challenges to implementing this approach, including the lack of consistency in the definition

of green and other relevant data points, such as sector classifications across available datasets.

As per OECD (2017), to overcome investment barriers and leverage the impact of available public resources, over a dozen national and sub-

national governments have created public green investment banks (GIBs) and GIB-like entities in recent years. A GIB is a publicly

capitalised entity established specifically to facilitate private investment into domestic low-carbon, climate-resilient (LCR) infrastructure and

other green sectors such as water and waste management. While GIBs differ in name, scope and approach, they generally share the following

core characteristics: a mandate focusing mainly on mobilizing private LCR investment using interventions to mitigate risks and enable

transactions; innovative transaction structures and market expertise; independent authority and a degree of latitude to design and implement

interventions; and a focus on cost-effectiveness and performance. ―GIB-like entities‖ refers to organisations that have a mandate to leverage

private finance for domestic LCR infrastructure investment but which may not possess all of the core characteristics of GIBs and may pursue

other activities or use other approaches (e.g. grants).

Table 1: List of GIBs

Name Country Year

Masdar United Arab Emirates 2006

Malaysian Green Technology Corporation (GreenTech Malaysia) Malaysia 2010

Connecticut Green Bank United States 2011

Clean Energy Finance Corporation (CEFC) Australia 2012

UK Green Investment Bank United Kingdom 2012

Green Fund Japan 2013

California CLEEN Center United States 2014

Green Energy Market Securitization (GEMS) (Hawaii Green Infrastructure Authority) United States 2014

Technology Fund Switzerland 2014

New Jersey Energy Resilience Bank (ERB) United States 2014

NY Green Bank United States 2014

Rhode Island Infrastructure Bank (RIIB) United States 2015

(Source: Compiled from OECD Reports 2016)


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Based on their unique national and local contexts, governments tailor their GIBs and GIB like entities, which have diverse rationales

and goals:

In the United Kingdom, the Green Investment Bank was conceived as a means to meet ambitious emissions targets.

In Japan, The Green Finance Organisation aims to support local community development to address the impacts of slow

economic growth and an ageing society.

The Connecticut Green Bank prioritises reducing carbon emissions and lowering energy costs while creating local jobs

through clean energy investment.

Switzerland‘s Technology Fund focuses on scaling up innovative environmental and low-carbon technologies that face a

deployment gap.

The Malaysia Green Technology Corporation‘s (GreenTech Malaysia) objective is to develop sustainable and widespread

green technology markets and strengthen the local green technology industry.

The goals of the Rhode Island Infrastructure Bank‘s clean energy programmes are to reduce consumers‘ and businesses‘

energy prices and stimulate employment opportunities.

Other goals pursued by GIBs include improving capital market efficiency, lowering the cost of capital and meeting other

(non-climate-related) environmental objectives.

Institutions like GIBs can be understood as a tool to mobilise private investment which can complement climate policies but cannot

substitute for them. If enabling policies for low-carbon investment are in place – including a robust and credible carbon price, fossil

fuel subsidy reform, well-designed renewable energy incentive policies and clear, long-term climate policy goals – GIBs and other

institutions can play a supportive role in overcoming remaining investment barriers. To get on a path toward zero net emissions by the

end of this century, governments need to consider how institutions like green investment banks can help them pick up the pace.

Recent examples of innovative experience and good practice:

Energy efficiency partnerships with financial institutions: In 2014, the UK Green Investment Bank formed a GBP 50 million

energy efficiency partnership with Société Générale Equipment Finance, with each party committing GBP 25 million. The

partnership will provide loans for CHP plants, boilers, building retrofits, lighting or energy reduction technologies for

production processes. Loans will be structured so that repayments are less than the value of energy savings, meaning

borrowers can save money on day one of the loan (UK Green Investment Bank, 2014).

Australia‘s CEFC formed an energy efficiency fund with Commonwealth Bank, with each party investing AUD 50 million.

The fund will make individual loans aimed at reducing energy costs (CEFC, 2015a).

Australia‘s CEFC also has financed National Australia Bank via a corporate bond purchase in exchange for offering a

concessional loan product for financing equipment and vehicles that meet CEFC standards of efficiency. The ‗Energy

Efficient Bonus‘ is offered to the end user as a 70 basis point (0.7%) discount from the prevailing equipment finance rate.

This provides equipment sales persons with a talking point about energy efficiency and entices the purchaser to compare the

costs of a more efficient product with the costs of less efficient products that do not qualify for the Bonus (CEFC, 2015b).

Promoting innovation in early-stage companies and projects: In March 2016 the Australian government announced the

creation of a new AUD 1 billion Clean Energy Innovation Fund. The Fund will be jointly managed by the CEFC and the

Australian Renewable Energy Agency and will provide both debt and equity for clean energy projects. It will focus on early-

stage companies, business and projects seeking growth capital or early stage capital (CEFC, 2016).


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Table 2 Adoption of Green Banking in Indian Banks

Year Name of the Bank

1996 Union bank of India

2003 Cit Group INC, HBSC, ING Vyasa, RBS, Royal Bank of Canada, Syndicate Bank,

Standard Charted

2005 Yes Bank, Corporation Bank

2006 Bank of America, JP Morgan

2007 ICICI, OBC, SBI

2008 Bank of Baroda, Karnataka Bank, industrial Bank, Dena Bank

2009 HDFC, Indian Overseas, Indusland Bank, PNB, ABN Amro, Karur Vyasa, Andhra Bank

2010 Axix bank, Kotak Mahendra, South Indian Bank

2011 Canara Bank, IDBI, EXIM

2013 IDFC

(Source: Sudhalakshmi K & Chinnadorai, K. M. reference cited in serial no: 65)

G. Conclusion

Green banking refers to the initiatives taken by banks to encourage environment-friendly investment. Green banking is a necessity for

future sustainability. It is very important for the banks to be pro-active and accelerate the rate of the growth of the economy. Further,

the institutions in India are focusing on highly simpler aspects when compared to measures taken globally. The governmental agencies

and regulated entities are required to leaf out of such measures and drive the same in India.

References:

1 International Finance Corporation (2017). ‗Green Finance: A Bottom-up Approach to Track Existing Flows‘.

2 http://climatemundial.com/whatisgreenfinance/

3 Sharma, Gopal (2014). A study on customer‘s awareness on Green Banking initiatives in selected public and private sector banks with

special reference to Mumbai. IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925 PP 28-35

4 Jaggi, G. (2014). Green Banking: Initiatives by SBI and ICICI. Paripex-Indian Journal of Research. Vol 3(6).

5 Sudhalakshmi, K. and Chinnadorai, K. M. (2014).Green Banking Practices in Indian Banks. International Journal of Management and

Commerce Innovations, 2(1), pp 242- 245

6 Nath, V., Nayak, N. & Goel, A. (2014). Green Banking Practices- A Review. International Journal of Research in Business Management.

Vol 2(4), 45-62.

7 Dharwal M and Agarwal A. Green Banking: An Innovative Initiative for Sustainable Development, 2013; 2(3):1-5.

8 Jayadatta S and Nitin S.N., International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 –

801X www.ijbmi.org || Volume 6 Issue 2 || February. 2017 || PP—10-15

9 http://www.unep.org/newscentre/financial-institutions-worth-66-trillion-set-standards-financing-sustainable-development

10 http://www.huffingtonpost.com/nick-robins/2017-what-next-for-green_b_14203706.html

11 OECD Environment Policy Paper No. 6 (January 2017). Green Investment Banks: Innovative Public Financial Institutions Scaling up

Private, Low-carbon Investment

12 UN DESA (2014), (UN Department of Economic and Social Affairs), Population Division, World Urbanization Prospects: The 2014

Revision, Highlights (ST/ESA/SER.A/352), http://esa.un.org/unpd/wup/Highlights/ WUP2014-Highlights.pdf.

13 CEFC (2015), ―Factsheet: CEFC and the City of Melbourne accelerate sustainability initiatives‖, October 2015,

www.cleanenergyfinancecorp.com.au/media/107528/cefcfactsheet_cityofmelb_lr.pdf

14 CEFC (2015b), ―CEFC has helped accelerate $3.5b in total investment towards a competitive clean energy economy‖, press release, 15 July,

Clean Energy Finance Corporation, Sydney, Australia, www.cleanenergyfinancecorp.com.au/media/releasesand-announcements/files/cefc-

has-helpedaccelerate-$35b-in-total-investmenttowards-a-competitive-clean-energy-economy.aspx.

15 CEFC (2016), ―CEFC welcomes creation of Clean Energy Innovation Fund‖, Clean Energy Finance Corporation, Sydney, Australia,

www.cleanenergyfinancecorp.com.au/media/releases-andannouncements/files/cefc-welcomes-creation-of-clean-energyinnovation-

fund.aspx.


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A STUDY ON SUSTAINABLE MARKETING STRATEGIES OF APPLE GROWERS

IN JAMMU & KASHMIR

*M . Jagathish & *Prof. Dr.M. Wilson

*Muslim Arts college, Thiruvithancode.

**Noorul Islam University.

Introduction

Apples are one of the most commonly cultivated fruits tree in the world. Apples are an important part of worldwide

commercial and are found in many different countries. The apple tree is small and deciduous reaching 3 to 12 meters and 9.8 to 39 tall

with broad. Blossoms are produced in spring simultaneously with the budding of leaves. The fruit matures in autumn and is typically 4

to 10 cm’s in diameter enriched with nutrients; the apple is the fourth widely produced fruit in the world after Orange, grapes and

Banana.

India produces all delicious fruit including pome fruits. These are mainly grown in the north – western Indian hill states of

Jammu and Kashmir, Himachal Pradesh and Uttar Pradesh. In additionally small quantities of apples are also grown in Arunachal

Pradesh, Nagaland, Sikkim, Mizoram, Bihar and Tamilnadu. Jammu and Kashmir and Himachal Pradesh have roughly equal area

planted to apple. But Jammu and Kashmir has the highest average field accounts 70% of total apple production and 55% of its export

in the country hence it is a substantial foreign exchange earner and important for economic growth. India annually export worth of Rs.

480 million out of which around Rs 300 million of apple comes from Jammu and Kashmir and provides 1.6 million people directly

and indirectly. In Horticulture sector the largest area of 48% is occupied by apple out of total area under fruits area. There by making

it the largest contributor to the state GDP among the Horticulture produce.

REVIEW OF LITERATURE

1) Dr. Zeenat Dar 1981,Role of Agriculture in the development of Jammu and Kashmir economy. Agriculture

including horticulture is the main ingredient of Jammu and Kashmir economy. Geographically Jammu and Kashmir is an agro climate

state but they have not utilized all its resources for development of agriculture major portion of the population is engaged with

agriculture activities. With the use of Scientific technology in the field of agriculture the income from agriculture has increased

manifolds.

2) Dr. Musadiq Amin Shah 1986, Marketing problems of apple industry in Kashmir valley. Jammu and Kashmir is the

largest apple producing state of India but the state does not earn that from the apple industry what it should have. The main problem of

apple industry in Kashmir is the lack of marketing information and techniques. Without a proper marketing information system the

market opportunity cannot be fully exploited. Growers should be provided proper market information to get dispose of their produce

in those markets where it can yield maximum prices.

3) Zahoor Ahmad Malik,(2003) in his study “Assesment of Apple production and marketing problem in Kashmir valley”.

Stated that annual turnover of fruit industry is around Rs 2000 crore in case of apple and five lacks families are involved in

horticulture directly and indirectly involving 30 lack farmers, although the major contribution in terms of income and employment

comes from this sector. Yet it is not getting the status of an industry.


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4) Mr. Wilayat Rizvi 2010, University of Kashmir(JK) on his study find out the below studied points. Cultivated apple has

come into existence as a result of cross breeding among various specious of mauls. Apple is the most important fruit grown all over

the world. Nearly half of the production is consumed as fresh fruit and most of the reminder is processed into apple juice, canned

apple sauce, apple jam and apple butter etc. Hardev Singh Bhatia, 2011 In his study identified many reasons for low productivity in

apple and improper polarize preparation is the most important factor of apple crop in Himachal Pradesh. (Kissan world)

5) Mr. R.D. Shelke and S.P. Kalyankar 2015, in his study “Major Problem as soon as surplus develops in the agricultural

economy. The country is now making a transition from a deficit to surplus agricultural economy the most of the important institute the

field can orderly agricultural marketing are the regulated markets. There is no uniform progress all over the country .In states like

Punjab and Haryana, almost the entire agriculture producer is handed through the regulated markets. The position other state is less

satisfactory. At the same time it is necessary to ensure that the regulated markets has all the facilities like proper market yards, selling

booths, godowns, storage facilities, facilities for grading, a testing laboratory and also resting place for the formers and directly water

facilities.

In addition to that the area under apple has increased significantly and result in higher production, the higher production and

productivity of apple for ten years are as under-

Table No 1

Production and Productivity of Apple crop in Jammu and Kashmir

AREA IN (000)

HECTARES

PRODUCTION IN (000)

METRIC TONS.

PRODUCTIVITY

MT/HCT

2002-03 94.87 95.39 10.05

2003-04 100.70 104.15 10.34

2004-05 107.93 1093.33 10.12

2005-06 111.88 1151.34 10.29

2006-07 119.04 1222.18 10.26

2007-08 127.80 1211.85 10.26

2008-09 133.10 1322.81 10.01

2009-10 139.04 1367.80 9.84

2010-11 141.72 1680 11.86

2011-12 170.60 2581.18 15.13

2012-13 157.28 1348 8.58

2013-14 161.37 1633.35 10.12

2014-15 163.43 1170.30 7.16

2015-16 161.77 1966.41 12.16

2016-17 162.97 1726.83 10.60

Horticulture Department Jammu -2017

0

500

1000

1500

2000

2500

3000

AP

PLE

PR

OD

UC

TIO

N

Area in Hectares Production in Metric Tons


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Marketing Channels

Almost all apples produced in India are used for fresh consumption with limited use of processing, about 70% of the crop is

transported and sold in India’s largest whole sale fruit and vegetable market at Azadpur in Delhi followed by Mumbai, Bangalore,

Abmadabed and others. There are number of Marketing channels patronized by the apple growers of which the predominate are as :

Channel (1): Producer – commission agent – Wholesaler – Retailer – Consumer

Channel 2) : Producer – Forwarding agent - commission agent – Wholesaler – Retailer – Consumer

Channel (3) : Producer – Pre harvest Contractor - commission agent – Wholesaler – Retailer – Consumer

Channel (4) : Producer – Pre harvest Contractor - Forwarding agent – Wholesaler – Retailer – Consumer

The highest percentage 61% of total production is transported through channel – (1) followed by Channel (2) while channel 3

&4 account for 17% and 2% of the total produce transacted by these growers respectively. Sales through pre- harvest contractor is

most important system of marketing. Normally the small orchardists sell their crop at flowering stage to contractor who organizes

plant protection, Plucking and Packing of fruit. The medium and large orchardist prefers to market their produce through 2nd

and 3rd

channel respectively.

The decision of diversification by a farmer is considered to be one of the major economic decisions that have strong bearing

on his welfare in terms of income level and variability in returns (Heavy 1952, Joson & Bresier 2001 ). It has been accepted fact that

the peculiar geographical conditions and inadequacy of infrastructure particularly in Kashmir region has restricted the development of

agriculture product. Horticulture sector is available option for nearly 30 lack people who are earning their income directly or

indirectly through this sector. Still there are creation problems which hinder its growth and need special attention.

Statement of the Problems

The various problems in cultivation, harvest, marketing and other levels as organized such as There are cold storage problems in

producing areas and also there are no prescribed standards for grading and packaging , Poor integration of domestic markets with

those of national markets, Apple scab disease, outbreak of premature leaf fall and infestation of red spider mite have declined the

quantity as well as quality of the fruit, There is unavailability of fast transport facility from these villages to markets, Lack of

marketing Knowledge and Lack of credit with in the growers. Growers have many problems to produce and market the apple. So

researcher takes these as an important issue to growers’ sustainability in their field and starts this research work.

Objective of the study

The study aims at the following objectives.

1. To find out the major reasons for cultivating apple in Jammu and Kashmir..

2. To find out the apple growers preferable apple variety to cultivate in Jammu and Kashmir..

3. To examine the preferable and profitable marketing channels of apple fruit in Jammu and kashmir.

0

20

40

60

80

100

120

140

160

180

AP

PLE

PR

OD

UC

TIV

ITY

Area in Hectares Productivity MT/HCT


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Methodology

This study is based on primary and secondary data. Primary data collected from apple growers in jammu & Kashmir . researcher

has used snowball method from non-probability sampling techniques. The sample size is 216 respondents .The secondary data

collected from various journals, articles, newspaper, books and Horticulture departments. This study refers production 2002 – 2003 to

2016 – 2017.

Data analysis and interpretation

Table No 2

Reason for cultivating apple business

S.No Reasons Score value Rank

1 Income source 512 2

2 Soil condition 245 5

3 Weather condition 312 4

4 Hereditary business 665 1

5 Own interest 389 3


The Above table pictures the reason why apples are cultivated as the primary source of income. One of the main reasons for

opting cultivating is that they are doing this generation after generation family business or hereditary business in the table

has 665 score value that gets first rank among other reasons to choose apple cultivation.

Score value 512 with 2nd

rank is source of income which this farmers depend much an after family business. These

are people who do apple business for various other reasons such as out of interest ,(score value 389, rank 3rd

) ,weather

condition (score value 312, rank 4th

), and finally condition of the soil in their region with the score value of 245 ranking

fifth.

Table No 3

Variety of apple prefer to cultivate

S.No Apple variety No. of

respondent Percent

1 Maharaji 48 22.22

2 Kallu 71 32.87

3 Delicious 176 81.48

4 American 147 68.06

5 Golden 89 41.20


From the above table, it reveals that majority 81.48 percent of the respondents prefer to cultivate delicious variety of apple, following

that 68.06 percent of the respondents prefer to cultivate American variety of apple, 41.20 percent of the respondents prefer to cultivate

Golden variety of apple, 32.87 percent of the respondents prefer to cultivate kallu variety of apple and finally rest of the 22.22 percent

of the respondents prefer to cultivate Maharaji variety of apple.


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Table No 4

Source of investment

S.No Source of investment

Score value Rank

1 Bank 289 2

2 Co-operative Society 228 3

3 Agricultural Society 185 4

4 Advance from commission agent 412 1


The Above table pictures the primary source of investment to do their production. One of the main source investment is

advance from commission agents in the table has 412 score value that gets first rank among other reasons to choose

investment source. Score value 289 with 2nd

rank is Loan from bank which this apple growers depend much an after

advance from commission agent. Co-operative society with score value of 389, rank 3rd

) and finally Agriculture society

source (score value 312, rank fourth.

Table No 5

Current Mode of marketing channel

S.No marketing channel Score value Rank

1 Direct sales 243 5

2 Through dealer 448 2

3 Through wholesaler 325 3

4 Through retailer 289 4

5 Commission Agents 556 1


The Above table shows the current mode of marketing channel for their business activity. One of the main channel of marketing is

through commission agents in the table has 556 score value that gets first rank among other channels. Score value 448 with 2nd rank is

marketing through dealers. Marking activity through wholesaler with score value of 325 & rank 3rd and finally marketing channel

through retailer and direct sales got score value 289 243 with rank fourth and fifth respectively.

Table No 6

Preferable / profitable Mode of marketing channel

S.No profitable Mode Score value Rank

1 Direct sales 812 1

2 Through dealer 323 4

3 Through wholesaler 439 3

4 Through retailer 628 2

5 Commission Agents 271 5



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The Above table reveals that the preferable and profitable mode of marketing channel for their business activity. One of the main

channel of marketing is direct sales in the table has 812 score value that gets first rank among other channels. Score value 628 with

2nd rank is marketing channel through retailer. Marking activity through wholesaler with score value of 439 & rank 3rd and finally

marketing channel through dealers and commission agent got score value 323, 271 with rank fourth and fifth respectively

Findings-

1. Majoroty of respondents are prefer Heredity business.

2. Majority of respondents prefer to cultivate delicious apple.

3. Most of respondents’ main source of investment is advance from commission agent.

4. Mostly main channel of marketing through commission agent.

5. Majority of respondents are preferable marketing channel is direct sale.

Suggestions

1. Apple business in Jammu and Kashmir has been successfully done generation after generation. Naturally, apple grows in

Kashmir with the aid of nature and conditions of the soil. However, farmers in Kashmir live in reduced circumstances. They

are not well off as they are got in the rut at the clutches of commission agents (intermediaters). These commission agents are

at the apple growers beck and call when it comes to apple growers’ needs especially financial needs and other resources

which is needed to apple cultivations. This is the scenario for many years. This scenario doesnot pave the way for the apple

growers for an upliftment in their life in terms of monetary benefits and other sophistication in their life. This will ultimately

help them live a sustainable life and career.

2. The fright rates of transportation should be fixed by the government and should take steps for the development of better and

faster transformation

3. The disease should be curbed through the availability best quality of pesticides

4. Proper cold storage facilities should be provided at the is a reach of growers in order to reduce the carriage costs.

5. Government should provide credit facilities for growers.

6. The growers should be provide training for growers about marketing and cultivating knowledge.

Conclusion

The apple fruit grows especially in the state Jammu and Kashmir is one of the important sources of the economy. Apple

production plays an important role in improving the standard of living. Apple production accounts almost 83% of total

horticulture produce. This sector has a very bright future in the state. This industry provides employment to million of people. The

government is now also showing interest in its development. This sector is in the stage of backwardness due to lack of marketing

facilities, field research credit facilities and cold storage. Jammu and Kashmir apple growers, without depending on the

commission agents, have to market their products on their own to sustain in their business successfully.


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GREEN MARKETING: CONSUMER ATTITUDE TOWARDS ECO FRIENDLY FAST

MOVING HOUSEHOLD CARE AND PERSONAL CARE PRODUCTS IN

TIRUNELVELI DISTRICT

*Dr. S. Makesh Kumar M.Com., M.Phil., M.B.A., Ph.D.,

*Head, Department of BBA, Sri Sankara Bhagavathi Arts and Science College, Kommadikottai.

ABSTRACT

The environmental conditions have changed dramatically by the beginning of 21st century. The overall state of the global environment

continues to worsen and has emerged as one of the major challenges for states in the current era. The problems of the environment the

world is facing are vast and diverse, comprising climate change, stratospheric ozone depletion, loss of biodiversity, changes in

hydrological systems and the supplies of fresh water, land degradation and stresses on food-producing systems. They are posing

serious threats to human health, physical security, material needs and social cohesion. The present research discusses the concept of

green marketing, consumer attitude towards eco-friendly products. It is based on the data collected through a field survey of 200

consumers through structured questionnaire, to assess their attitude towards green marketing. In this survey, probability sampling

methods like random stratified and cluster etc. were not considered suitable as the population using the environmentally friendly

products is not well definite. Non probability approach of sampling was adopted by the researcher, and Judgment and convenience

sampling methods were used for selecting the subjects to ensure that subjects are from city and town representing the different gender,

age groups and educational qualification. The survey was conducted in Tirunelveli District. The purpose of this study is to discover

what barriers, if any, inhibit consumers who want to live a green lifestyle from purchasing green household and personal care

products. Thus, the main objective of this study is to assess the pro-environmental purchase behaviour of consumers in Tirunelveli

District. The belief is that the consumer's pro-environmental concern is one of the determinants of their "green buying" behaviour i.e.,

buying and consuming goods that are environmentally beneficial.

Keywords: Green Marketing, Eco-friendly products, FMCG products and Personal care products

Introduction

Environment is the natural world within which people, animals and plants live. It includes some most important components:

Complete ecological units that function as natural systems without massive human intervention, including all vegetation, animals,

microorganisms, rocks, atmosphere and natural phenomena that occur within their boundaries.

Universal natural resources and physical phenomena that lack clear-cut boundaries, such as air, water and climate, as well as

energy, radiation, electric charge and magnetism, not originating from human activity.

The environmental conditions have changed dramatically by the beginning of 21st century. The overall state of the global

environment continues to worsen and has emerged as one of the major challenges for states in the current era. It will not be wrong to

call the 21st century an environmental distress syndrome" century. The problems of the environment the world is facing are vast and

diverse, comprising climate change, stratospheric ozone depletion, loss of biodiversity, changes in hydrological systems and the

supplies of fresh water, land degradation and stresses on food-producing systems. They are posing serious threats to human health,

physical security, material needs and social cohesion.

All these environmental challenges should be addressed instantly, but the loss of biodiversity, Ozone depletion, and climate

change are the most critical of environmental issues of the current century, prompting the international community to confront them

without further ado in a skilful and insightful way.

Green marketing, also known as environmental marketing and sustainable marketing, refers to a company„s efforts at

designing, promoting, pricing and distributing goods and services that will not harm the environment. According to Confederation of

Indian Industries (CII) it is the voluntary pursuit of any activity that encompasses concern for energy efficiency, environment, water


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conservation and the use of recycled products and renewable energy. The United Nations Environment Programme defines it as a

marketing which encompasses all communication operations undertaken to promote a product on the basis of its environmental

properties or of its social qualities. It is about selling products on an ethical platform. Green marketing is a challenge to distinguish a

product as being environmental friendly (eco friendly). Green Marketing can be viewed both as a type of marketing and a marketing

philosophy. As a type of marketing, it is like goods or service marketing, and is concerned with marketing of a specialized kind of

product, i.e. green product (including green goods such as fuel efficient cars or recycled products as well as green ideas such as save

oil or ―conserve natural habitat). As a philosophy, green marketing concept runs parallel to the societal marketing concept and

espouses the view that satisfying customers is not enough and marketers should take into account ecological interests of the society as

a whole. It is a part of Corporate Social Responsibility (CSR).

The distinctive features of green marketing are its commercial dimension coupled with the reference to the values of

consumers who want to act in an environmentally conscious and socially responsible manner with the purchases they make. Put

simply, green marketing comprises all those marketing activities which the firms undertake to create a positive impact or lessen the

negative impact of their products on the environment. Terms like Phosphate Free, Reusable, Refillable, Ozone Friendly, and Eco-

friendly are some of the other terms 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.

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG).

Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soaps, cosmetics,

tooth cleaning products, shaving products and detergents. By definition, FMCG addresses to a very core and inescapable need in the

consumers life and so it is less prone to economic swings than high ticket items such as television or even apparel.

The Indian FMCG sector is the fourth largest in its economy and has a market size of US$13.1 billion. FMCG sector

generates 5% of total factory employment in the country and is creating employment for three million people, especially in small

towns and rural India. Well-established distribution networks, as well as intense competition between the organized and unorganized

segments are the characteristics of this sector. FMCG sector in India has a strong and competitive MNC presence across the entire

value chain. It has been predicted that the FMCG market will touch US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The

middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the

opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care products, shampoos,

etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. For the purpose of

this study we will define Fast Moving Consumer Goods as personal care products, home cleaning products and detergents only.

Statement of the Problem

Although environmental issues affect most of the activities in day-today lives, there were only few academic disciplines

which have discussed green issues in Indian context. Since green marketing is an emerging field in India, consumer behavior towards

this society‟s new concern is still in the understanding level. Majority of the consumers still lack „green knowledge‟ and due to such

low awareness on green products, many organizations are neither yet motivated in pushing their businesses towards developing more

green products nor are working hard on green packaging. Further it is also mentioned that a considerable number of consumers have

an ideal concept of being environmentally responsible but may not necessarily implement this concept. Consequently, taking no

efforts to move towards a lifestyle which is green was identified as a major issue.

Unlike the organic food market, being one of the major segments in FMCG sector, cosmetics and personal care products

manufacturing and marketing firms may find difficult to develop new strategies since consumer behavior towards green products is

still unknown. In line with the literature, though Indian consumer‟s interests for green products are gradually rising, the availability

and awareness created by the marketers may be very less compared to the other countries. Therefore, overall, it is a major requirement

to identify the consumer viewpoints in terms of attitudes, perception, environmental knowledge and socio economic factors in order

anticipate different consumer needs so that firms would use these facts to modify their strategies accordingly through developing

novel approaches to meet those needs. As well, it is important to identify doubts and misperceptions of consumers and thereby to

suggest key areas which knowledge and awareness must be conferred in developing an appropriate green consumer mind set towards

sustainable development of the country.

Objectives of the Study To analyse the awareness of eco-friendly products.

To study the perception of consumers towards Eco-friendly products with specific reference to Fast Moving Consumer Goods and

its impact on their purchasing decision.

Methodology

The present research discusses the concept of green marketing, consumer attitude towards eco-friendly products. It is based

on the data collected through a field survey of 200 consumers through structured questionnaire, to assess their attitude towards green

marketing. In this survey, probability sampling methods like random stratified and cluster etc. were not considered suitable as the

population using the environmentally friendly products is not well definite. Non probability approach of sampling was adopted by the

researcher, and Judgment and convenience sampling methods were used for selecting the subjects to ensure that subjects are from city


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and town representing the different gender, age groups and educational qualification. The survey was conducted in Tirunelveli

District.

Data Analysis

Table 1

Ranking of determinants of Eco-Friendly products

Sl. No Particulars Total

Score

Average

Score

Rank

1. Lower consumption of water during use by final customer 8330 41.65 VI

2. Re-usable / bio-degradable packaging 10882 54.41 III

3. Reduced or no effect on flora and fauna in R&D activities 9740 48.70 V

4. Usage of vegetable/fruit extracts as major ingredient during

production

10270 51.35 IV

5. Use of energy from renewal sources in production 12298 61.49 I

6. Use of recycled products as raw material in manufacturing

process

11754 58.77 II


It is observed from Table 1 that „Use of energy from renewal sources in production‟ has been ranked as the first factor for

determinants of eco-friendly products; „Use of recycled products as raw material in manufacturing process‟ has been ranked second;

followed by „Re-usable / bio-degradable packaging‟ in third position with „Usage of vegetable/fruit extracts as major ingredient during

production‟ ranked as the fourth, „Reduced or no effect on flora and fauna in R&D activities‟ has been ranked as the fifth factor for

determinants of eco-friendly products; and „Lower consumption of water during use by final customer‟ has been ranked as the last

factor for determinants of eco-friendly products;. It is revealed that Use of energy from renewal sources in production is the first and

main determinants of eco-friendly products.

Table 2

Ranking of factors that motivate sampled respondents to buy eco-friendly products

Sl. No Particulars Total Score Average

Score

Rank

1. Eco-friendly products will save time or money in the long

run

8670 43.35 V

2. I believe Eco-friendly products healthier for myself, my

family or my community

12916 64.58 I

3. I want to preserve the environment for future generations 12378 61.89 II

4. I believe Eco-friendly products are better product(e.g.,

better design, higher quality)

10952 54.76 III

5. It‟s a way for respondents to show others they care about

the environment

9650 48.25 IV


It is observed from Table 2 that „I believe Eco-friendly products healthier for myself, my family or my community‟ has been

ranked as the first factor motivate to buy eco-friendly products; „I want to preserve the environment for future generations‟ has been

ranked second; followed by „I believe Eco-friendly products are better product(e.g., better design, higher quality)‟ in third position

with „It‟s a way for respondents to show others they care about the environment‟ ranked as the fourth and „Eco-friendly products will

save time or money in the long run‟ has been ranked as the last factor motivate to buy eco-friendly products;. It is revealed that Eco-

friendly products healthier for myself, my family or my community‟ is the first and main factor motivate to buy eco-friendly products.

Table 3

Ranking of Barriers to Buying eco-friendly products by the respondents


Score

Rank

1. Higher price of eco-friendly products 11974 59.87 I

2. Non availability of eco-friendly products 11324 56.62 II

3. Limited range 10440 52.20 III

4. Confusing variety of eco-labels 9072 45.36 IV

5. Obtaining information regarding eco- friendliness of the

products

8428 42.14 V

6. Lower quality of eco-friendly products 7634 38.17 VI


It is observed from Table 3 that „Higher price of eco-friendly products‟ has been ranked as the first barrier to buying eco-

friendly products; „Non availability of eco-friendly products‟ has been ranked second; followed by „Limited range‟ in third position

with „Confusing variety of eco-labels‟ ranked as the fourth, „Obtaining information regarding eco- friendliness of the products‟ has


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been ranked as the fifth and „Lower quality of eco-friendly products‟ is last barrier to buying eco-friendly products;. It is revealed that

higher price of eco-friendly products‟ is the first and main barrier to buying eco-friendly products.

Table 4

Ranking of various sources of information regarding eco-friendly products


Score

Rank

1. Eco-labels/Eco-certificates/Eco-ratings 13080 65.40 I

2. News Reports 12396 61.98 II

3. Recommendations of known people 11794 58.97 III

4. Blogs 10238 51.19 V

5. Claims made by the manufacturers 9426 47.13 IV


It is observed from Table 4 that „Eco-labels/Eco-certificates/Eco-ratings‟ has been ranked as the first source of information

regarding eco-friendly products; „News Reports‟ has been ranked second; followed by „Recommendations of known people‟ in third

position with „Claims made by the manufacturers‟ ranked as the fourth and „Blogs‟ has been ranked as the last source of information

regarding eco-friendly products;. It is revealed that Eco-labels/Eco-certificates/Eco-ratings is the first and main source of information

regarding eco-friendly products.

Level of awareness towards eco-friendly products Vs Gender of Consumers In order to test whether there is any relationship between gender of the consumers and their level of awareness towards eco-

friendly products, the following hypothesis in formulated.

Ho : There is no significant relationship between the level of awareness towards eco-friendly products and the gender of the

consumers.

The results of the Chi-square test are applied on the level of awareness towards eco-friendly products and the genders of the

consumers are presented in table 5.

Table 5

Level of awareness towards eco-friendly products Vs Gender of consumers

Sl.No Particulars Chi-square Value p Value Inference

1. Eco-friendly products is good for the

environment

3.496 0.174 Not Significant

2. Package message 12.550 0.002 Significant

3. Availability 5.512 0.064 Not Significant

4. Reuse of green packages 24.313 0.000 Significant

5. Benefits 1.440 0.803 Not Significant

6. Green brand image 1.250 0.535 Not Significant

7. Price of eco-friendly products 17.353 0.000 Significant

Source: Computed Data

The above table shows the following results

Since the „p‟ value is less than 0.05 in case of the gender of the consumers and the level of awareness towards eco-friendly

products “Package message, reuse of green packages and price of eco-friendly products”, the null hypothesis is rejected and it is

concluded that there is a significant relationship between gender of the consumers and level of awareness towards eco-friendly

products “Package message, reuse of green packages and price of eco-friendly products”.

Level of awareness towards eco-friendly products Vs Age group of Consumers In order to test whether there is any relationship between age group of the consumers and their level of awareness towards

eco-friendly products, the following hypothesis is formulated.

Ho : There is no significant relationship between the level of awareness towards eco-friendly products and the age group of the

consumers.

The results of the Chi-square test are applied on the level of awareness towards eco-friendly products and the age groups of the

consumers are presented in table 6.


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Table 6

Level of awareness towards eco-friendly products Vs Age group of consumers

Sl.No Particulars Chi-square

Value

p Value Inference


environment

9.963 0.268 Not Significant


3. Availability 16.700 0.033 Significant


5. Benefits 23.438 0.003 Significant

6. Green brand image 18.670 0.017 Significant



The above table shows the following results.

Since the „p‟ value is less than 0.05 in case of the age of the consumers and the level of awareness towards eco-friendly

products “Package message, availability, reuse of green packages, benefits, green brand image and price of eco-friendly products”, the

null hypothesis is rejected and it is concluded that there is a significant relationship between age of the consumers and level of

awareness towards eco-friendly products “Package message, availability, reuse of green packages, benefits, green brand image and

price of eco-friendly products”.

Level of awareness towards eco-friendly products Vs Educational Qualification of Consumers In order to test whether there is any relationship between educational qualification of the consumers and their level of

awareness towards eco-friendly products, the following hypothesis was formulated.

Ho : There is no significant relationship between the level of awareness towards eco-friendly products and the educational qualification

of the consumers.

The results of the Chi-square test applied on the level of awareness towards eco-friendly products and the educational

qualification of the consumers are presented in table 7.

Table 7

Level of awareness towards eco-friendly products Vs Educational Qualification of consumers

Sl.No Particulars Chi-square Value p Value Inference


environment

62.656 0.000 Significant


3. Availability 65.869 0.000 Significant


5. Benefits 22.249 0.014 Significant

6. Green brand image 30.325 0.001 Significant



The above table shows the following results.

Since the „p‟ value is less than 0.05 in case of the educational qualification of the consumers and the level of awareness

towards eco-friendly products “Eco-friendly products is good for the environment, package message, availability, reuse of green

packages, benefits, green brand image and price of eco-friendly products”, the null hypothesis is rejected and it is concluded that there

is a significant relationship between educational qualification of the consumers and level of awareness towards eco-friendly products

“Eco-friendly products is good for the environment, package message, availability, reuse of green packages, benefits, green brand

image and price of eco-friendly products”.

Suggestions

Green awareness is on the rise, and the demand for eco- friendly products is growing. At the same time, buyer expectations are

also getting bigger. Although the market for green and environmentally-friendly products is still nascent in India, this is expected

to change. All consumers remain primarily concerned with finding products that are the right balance of quality and price.

Through better marketing of environmental and green benefits and by aggressive pricing, producers and marketers will be best

able to position their products and gain market share in this important new segment. The study suggests that pro-environmental

anxiety is a likely judge of green buying behaviour. Also, consumers wish for eco-friendly products and thus the right mix of eco-

friendly products and service, promotion, PR and management know-how is needed to target and attract the consumers who may

be willing to buy eco- friendly products.

This survey suggest that the better-educated consumers understand the environmental issues, are involved more fully and, hence,

are more concerned about environmental quality and more motivated to participate in environmentally responsible behaviours.

Middle aged and older consumers (True Greens) are more likely than younger consumers to respond to messaging that

emphasizes generational legacies or civic and social responsibility. While these types of appeals are not totally ineffective with


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the younger segment it seems the heart strings are more easily pulled with the passage of time. Hence, marketers should target

middle age and senior citizens for purchase of eco-friendly products through their integrated marketing communication activities.

Since there is lack of awareness regarding availability of eco-friendly products, companies should focus on advertising eco-

friendly branding, in-store displays and pamphlets. Promotional campaigns may be used to further promote the use of eco-friendly

products.

Green Marketing begins with „green design‟. Product design constitutes an active crossing point between demand (consumers)

and supply (manufactures). Majority of consumers do not purchase products based on the environmental concern alone and they

will not trade-off other product attributes for a better environment. For ecologically sustainable products to be successful, green

branding characteristics have to be efficiently communicated. Most consumer decisions are influenced by the green labelling that

describes all that makes the product green compliant.

Conclusion

Environmental marketing or green marketing or ecological marketing addresses unsustainable marketing activities and the

resultant pollution issues. In essence, environmental marketing placed emphasis on sustainability of marketing activities of a firm and

sustainable consumption of a consumer so that these create either a positive impact or lessen the negative impact on the environment.

Customer„s concern for environmental has became one of the most important issues in every aspect of people„s lifestyles. Market for

environmentally-friendly goods and services are becoming increasingly common. As we know, green lifestyles or green behaviours

are specific lifestyle choices that reduce personal environmental impact and help ensure consumption of resources is sustainable at a

society level. A fully green way of life involves principled choices over a broad range of behaviours.

The purpose of this study is to discover what barriers, if any, inhibit Indian consumers who want to live a green lifestyle from

purchasing green household and personal care products. Thus, the main objective of this study is to assess the pro-environmental

purchase behaviour of Indian consumers. The belief is that the consumer's pro-environmental concern is one of the determinants of

their "green buying" behaviour i.e., buying and consuming goods that are environmentally beneficial. Past researches on consumer's

attitude toward the environment have been conducted mostly in the context of developed countries. Hence, there is a need to

investigate this problem in less affluent societies, like ours. Therefore, this is an attempt to fill this gap. This research looked into and

explored the influence of the four traditional marketing-mix elements, i.e. product, price, place and promotion on attitude and

purchase intentions of consumers of various demographics on eco-friendly products.

References

1. Tsakiridou, Efthimia , C. Boutsouki, Y. Zotos, and K. Mattas. 2008. Attiudes and behaviour towards organic products: an

exploratory study, International Journal of Retail & Distribution Management, 36 (2).

2. Tina Vukasovic, “Attitudes towards organic fruits and vegetables”, Agricultural Economics Review, Vol.16, No.1, 2015.

3. Mohanasoundari, T and Kalaivani, A., “A Study on Consumers Preference towards Organic Products- in Tirupur District”,

JSR - International Journal of Scientific Research, Vol.5, No.3, 2016.

4. Briz, T, and R.W. Ward. 2009. Consumer awareness of organic products in Spain: An application of multinominal logit

models, Food Policy, 34.


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PAPERLESS RETAIL MARKETS THROUGH E-TAILING

*Mrs. Jesura Pauline & **Dr. V. Darling Selvi

*Assistant Professor of Commerce, Research Department in Commerce, TDNMS College, Kallikulam,

**Assistant Professor of Commerce, Research Department in Commerce,Rani Anna Government College for Women,

Tirunelveli-8,

E-tailing or e-retailing or online retailing is a form of electronic commerce, which allows consumers to directly buy goods or

services from a seller over the internet without intermediary service. Simply put, e-retailing is the sale of goods online. Companies

like Amazon and Dell were the first to create the online retail industry by putting the entire customer experience, from browsing

products to placing orders to pay for purchases on the Internet. The success of these and other companies encouraged traditional

retailers to create an online presence to augment their brick-and-mortar outlets. This revolutionary way of selling goods and services

has also gained popularity in India. The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due

to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per

cent of the employment. India is the world’s fifth-largest global destination in the retail space. India is expected to become the world’s

fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users.

Various agencies have high expectations about growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach

US$ 120 billion! by 2020 from US$ 30 billion in FY2016.Further, India's e-commerce market is expected to reach US$ 220 billion in

terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led by faster speeds on reliable telecom networks, faster

adoption of online services and better variety as well as convenience. India is the fifth largest preferred retail destination globally.

The country is among the highest in the world in terms of per capita retail store availability. India’s retail sector is experiencing

exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities.

Healthy economic growth, changing demographic profile, increasing disposable incomes, urbanisation, changing consumer tastes

and preferences are the other factors driving growth in the organised retail market in India.

India’s population is taking to online retail in a big way. Increasing participation from foreign and private players has given a boost

to Indian retail industry. India’s price competitiveness attracts large retail players to use it as a sourcing base.

Indian Retail Industry

India‟s retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent to US$ 1.6 trillion by

2026 from US$ 641 billion in 2016. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would

expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent. India‟s Business to Business (B2B) e-commerce

market is expected to reach US$ 700 billion by 2020. Online retail is expected to be at par with the physical stores in the next five

years. Being driven by a young demographic profile, increasing internet penetration and relative better economic performance, India's

E-Commerce revenue is expected to jump from USD 30 billion in 2016 to USD 120 billion in 2020, growing at an annual rate of 51%,

the highest in the world, according to a joint ASSOCHAM-Forrester study paper. While in terms of base, India may be lower

than China and other giants like Japan, the Indian rate of growth is way ahead of others. Against India's annual expansion of 51 per

cent, China's e-commerce is growing at 18 percent, Japan 11 percent and South Korea 10 percent.


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Table 1 Market Size of Retail industry (US$ billion)

Year Market Share Incremental Change Incremental % Trend %

2000 204 - - 100

2002 238 34 16.67 117

2004 278 40 16.81 136

2006 321 43 15.47 157

2008 368 47 14.64 180

2010 424 56 15.22 208

2012 518 94 22.17 254

2013 490 -28 -5.41 240

2014 534 44 8.98 262

2015 600 66 12.36 294

2016 672 72 12.00 329

Average 422 46.8 12.89 207

CAGR 229

r 0.98

Source: Retail, IBEF, September 2017

The market share of retail industry has an average of 422 billion dollars over the years from 2000 to 2016 with the

compounded annual growth rate of 229 percent. The incremental change over the years is measured as 46.8 with 12.89 percent

increase. The trend analysis shows an average increase of 107 percent with the steady increase taking 2000 as the base year. The

correlation in this respect is calculated as 0.98 which is high and positive depicting a steady growth over the years under study. Hence

it is observed that the retail industry in India finds a prosperous market.

Indian e-commerce Industry

The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the

second largest e-commerce market in the world by 2034.

The e-commerce market is expected to grow at a compound annual growth rate (CAGR) of 44.77 per cent from 2016-20 to

touch US$ 63.7 billion by 2020.

With growing internet penetration, internet users in India are expected to increase at a compound annual growth rate (CAGR)

of 15.6 per cent from 391.50 million at the end of 2016 to 700 million by 2020.

Rising internet penetration is expected to lead to growth in ecommerce.

India‟s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly

backed by ecommerce.

As per the analysis of e-commerce retail market during the year 2016, it is seen that the Electronic Industry tops (47%) which is

followed by Apparel Industry (31%), Home and Furnishing (8%), Books (7%), Baby Products (2%), Beauty and Personal Care

(2%) and others (3%). The same is illustrated with the help of the following chart.

Chart a


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Rising Prominence of Online Retail/ E-tailing in India

Online retail business is the next generation format which has high potential for growth in the near future. After conquering

physical stores, retailers are now foraying into the domain of e-retailing

With growth in the e-commerce industry, online retail is estimated to reach US$ 60 billion by 2020.

The government plans to allow 100 per cent FDI in e-commerce, under the arrangement that the products sold must be

manufactured in India to gain from the liberalised regime

In 2016, online retail industry of the country registered a growth of 12 per cent, over the previous year, with the revenue

reaching US$ 14.5 billion.

The key drivers of online retail are a young population aided by easier access to credit and payment options, increasing

internet penetration and speed, 24-hour accessibility and convenient and secured transactions

Online retailers continue promotional prices in the market, offering a significant boost to e-retailing in consumer durable

sector

Options like cash-on-delivery and manufacturers‟ warranty add fuel to this rage. Cash-on-delivery is the most preferred

payment option with over 30 per cent of buyers opting for it in India

The computer peripherals, cameras, mobiles and lifestyle segments account for a majority of total purchases

In India, e-tailing has the potential to grow more than hundredfold in the next 9 years to reach a value of USD 76 billion by

2021. The country‟s growing Internet-habituated consumer base, which will comprise 180 million broadband users by 2020,

along with a burgeoning class of mobile Internet users, will drive the e-tailing story.

E-tailing can provide employment to 1.45 million people by 2021. Its growth will spur the creation of new capabilities and

human skills in the areas of logistics, packaging, and technology. Additionally, such growth will promote the rise of service

entrepreneurs who will have the potential to earn USD 7.5 billion, annually, by 2021. It will open up international markets for

the SME sector and can become an important facilitator for the growth of the telecom and domestic air cargo industries.

The growth of e-tailing in India will be complementary to the growth of traditional retail, and in no way be at cross purposes.

On the contrary, it will improve efficiencies and reduce transaction costs in retailing and thereby boost the productivity of

manufacturers (SMEs) and service providers.

The potential of India‟s e-tailing will continue to remain untapped if the current mindset, of exclusion and seeing e-tailing as

a “passing fad”, prevails. E-tailing is different from retail and therefore requires a different mindset and fresh thinking from

the policy makers as well as the private sector.

Table 2 Growth of e-tail market (billion USD)

Year E-commerce E-tail Proportion

of e-tail Trend %

2009 3.8 0.4 10.53 100

2010 5.3 0.6 11.32 108

2011 7.0 1.0 14.29 136

2012 9.5 1.5 15.79 150

2013 12.6 2.3 18.25 173

2014 16.4 3.5 21.34 203

2015 21.3 6.0 28.17 268

Average 10.84 2.19 17.10 162

r 0.979 0.924

0.980

Source: E-Commerce in India, pwc


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Since the e-Commerce industry is fast rising, changes can be seen over a year. The sector in India has grown by 34%

(CAGR) since 2009 to touch 16.4 billion USD in 2014. The sector is expected to be in the range of 22 billion USD in 2015.It is seen

from the above table that e-commerce has an average of 10.84 million whereas the average of e-tailing is 2.19 million. The average

proportion of e-tailing is 17.10 percent and the trend analysis shows an increase of 62 percent from the year 2009 to 2015. The

correlation for e-commerce is highly positive to the tune of 0.979, the same is 0.924 for e-tailing and 0.98 between e-commerce and e-

tailing. Hence the growth rate is commendable over the period under study.

Rising Internet Penetration in India

Internet penetration in India grew from just 4 per cent in 2007 to 34.08 per cent in 2016, registering a direct increase of 89

per cent in 2016 over 2007.

Urban India with an estimated population of 444 million already has 269 million (60 per cent) using the Internet.

Rural India, with an estimated population of 906 million as per 2011 census, has only 163 million (17 %) Internet users.

There is therefore a great opportunity for increasing penetration in the rural areas.

Analysis of „Daily Users‟ reveal that both in Urban and Rural India, the younger generations are the most prolific users of

internet.

Rising internet penetration is expected to drive ecommerce growth in India.

Growth of Internet Users

The number of Internet users in India is estimated at 465 million as of June 2017, growing at a CAGR of approximately 23

per cent in the last decade.

Urban India with an estimated population of 444 million already has 269 million people (60 %) using the Internet.

Rural India, with an estimated population of 906 million as per 2011 census, has only 163 million (17 %) Internet users.

77 per cent of urban users and 92 per cent of rural users consider mobile as the primary device for accessing the internet,

largely driven by availability and affordability of smart phones.

In Urban India, the Internet user base grew by 7 per cent to 263 million for year-on-year period ended October 2016, which is

estimated at 285 million as of June 2017

For the same annual period ending October 2016, rural India‟s internet user base grew by 22 per cent between to 157 million

and is estimated to be at 180 million as of June 2017.

Table 3 Internet Penetration in India

Year Internet

Penetration (%) Trend %

Internet

users (million) Trend %

2007 4.0 100 46.59 100

2008 4.4 110 52.43 113

2009 5.1 128 62.16 133

2010 7.5 188 92.32 198

2011 10.1 253 125.61 270

2012 12.6 315 158.96 341

2013 15.1 378 193.20 415

2014 18.0 450 233.15 500

2015 27.0 675 375.00 805

2016 34.8 870 432.00 927

Average 13.86 347 177.14 380

r 0.94 0.94

1.00

Source: Internet in India – 2016, IMRB Report

The magnitude of internet penetration and internet users were presented in the table. The internet penetration is tremendous

as per trend analysis which shows a growth rate of 770 percent in the year 2016 when compared to 2007 with an average increase of

247 percent. The same is expressed in case of internet users too which shows a growth rate of 827 percent in the year 2016 when

compared to 2007 with an average increase of 280 percent. The degree of correlation for internet penetration and internet users over

the years are 0.94 and the same is perfect positive between internet penetration and internet users. Hence it is ascertained that the

growth is high for both internet penetration and internet users as far as India is concerned.


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Chart b

Smartphone Shipments in India

The proliferation of mobile devices combined with internet access via affordable broadband solutions and mobile data is a

key factor driving the tremendous growth in India‟s e-commerce sector.

Smartphone shipments in India registered a growth of 15 per cent annually in the first quarter of 2017, reaching 29 million

units.

The overall Smartphone shipment is expected to reach nearly 1.6 billion units in 2017.

Mobile platforms have emerged as a major gateway for customer purchases as Smartphone are increasingly replacing PCs for

online shopping.

Offline brands have now started focusing on online channels as well to gain extra market share.

65 per cent of the people, who shop online, do so using their mobile phones.

Mobile apps help the business to reach more customers as they are user-friendly and give ease of access to the customers,

hence more and more companies are launching their mobile apps.

Smartphone users in India are expected to reach 700 million by 2020

Table 4 India’s Smartphone Shipments (millions)

Year Smartphone

Shipments Trend %

Incremental

change Incremental %

2010 8.0 100 - -

2011 14.5 181 6.5 81.25

2012 17.5 219 3 20.69

2013 42.5 531 25 142.86

2014 79.5 994 37 87.06

2015 102.0 1275 22.5 28.30

2016 108.0 1350 6 5.88

Average 53.14 664 16.67 61.01

Source: Retail, IBEF, September 2017

The growth of retailing, e-tailing, e-commerce and the economy as a whole deepens and depends on the usage of Smartphone

among consumers. In the year 2016, the usage of Smartphone come upto 108 million with an average of 53.14 million from the year

2010 to 2016. The growth rate through trend analysis depicts that there is an increase of 1250 percent in the year 2016 with an average

growth of 564 percent and the incremental change is recorded as 61.01 percent.


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Conclusion

E-retail in India has been experiencing remarkable growth, successfully changing the way people transact. People today can

shop literally everywhere within minutes, be it their workstations or homes, and most importantly, at any time of the day at their

leisure. The online market space in the country is burgeoning in terms of offerings ranging from travel, movies, hotel reservations and

books to the likes of matrimonial services, electronic gadgets, fashion accessories and even groceries. The e-retail story in India would

surely witness a new world of digitalization in the coming decade, with a host of start-ups emerging to compete with existing players

in order to draw benefits from the new and existing markets. Given its presence for more than a decade, it is incorrect to think of e-

retail as a recent phenomenon in the Indian context. However, it has gained impetus only in the past few years, with the entry of

several game changing players who have contributed to the rapid growth of e-retail. E-commerce is expanding steadily in the country.

Customers have the ever increasing choice of products at the lowest rates. E-commerce is probably creating the biggest revolution in

the retail industry, and this trend would continue in the years to come. Retailers should leverage the digital retail channels like e-

commerce and e-tailing, which would enable them to spend less money on real estate while reaching out to more customers in tier-2

and tier-3 cities. Both organised and unorganised retail companies have to work together to ensure better prospects for the overall

retail industry, while generating new benefits for their customers. Nevertheless, the long-term outlook for the industry is positive,

supported by rising incomes, favourable demographics, entry of foreign players, and increasing urbanisation. Digital disruption has

driven change in the eCommerce industry with shoppers embracing multiple touch points in their purchase journeys. Companies

should spend enough resources on technology development as also advertising and branding, especially because the younger

population is demanding. In the journey toward digital business transformation, embedding SMAC technologies in the business

becomes crucial.

References

1. Retail, India Brand Equity Foundation (IBEF), September 2017

2. The rise and the rise of E-Commerce in India, India Brand Equity Foundation (IBEF), January 2013

3. E-Commerce in India, Accelerating growth, PricewaterhouseCoopers Private Limited (pwc), February 2015

4. Internet in India – 2016, An IAMAI & KANTAR IMRB Report

5. Chinna Sahaya Rani. P and Venkatesh. R, E-Tailing in India: Its Growth, Issues, Opportunities and Development,

International Conference on "Research avenues in Social Science‖ Organize by SNGC, Coimbatore, Vol-1 Issue-3 2016

IJARIIE-ISSN(O)-2395-4396

6. Varadarajan, P. R., and Yadav, M. S. (2002), "Marketing Strategy and the Internet: An Organizing Framework". Journal of

Academy of Marketing Science, 30(4)

7. Jayakrishnan S Nair (2015) E-retailing in India: Opportunities and Challenges, International Journal of Research in Finance

and Marketing, Volume 5, Issue 3, March, (ISSN 2231-5985)

8. E&Y & RAI (2014) – Pulse of Indian Retail Market, Ernst and Young LLP Publications, Retailers Association of India


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FUTURE OF MILK MARKETING CHANNELS -REALITIES AND IMPERATIVES

FOR SUSTAINABILITY

*Sunitha Prasad & **Sangameswaran R

*Assistant Professor, NTR CVSc., Gannavaram, Andhra Pradesh

**Assistant Professor, CVSc, Tirunerveli, Tamilnadu

ABSTRACT

The dairy sector is characterized by small-scale, scattered, and unorganized milch-animal holders; low productivity;

non-availability of veterinary services at door step, lack of an assured year-round remunerative producer price for milk.

Constitution of NDDB in 1965 and Economic reforms in 1991 led to modernization of the dairy sector to a level from where it

can take off to meet not only the country’s demand for milk and milk products but can also exploit global market opportunities.

Dairy co-operatives and private milk marketing agencies involved in milk procurement from milk producers of rural areas along

with delivery of dairy Husbandry services. This study reviews the existing marketing services provided by the milk marketing

agencies and provides crucial recommendations to meet future challenges.

In general, milk marketing has witnessed changes as the sustainability is making its way in

Marketing practices (Involvement of informal channel in milk procurement and marketing). There is need to consider

sustainability to develop marketing strategy, which means that the milk marketing agency has to adopt sustainability in strategic

marketing practices and marketing mix. Moreover integrating sustainability into marketing strategy is another unique task and

objective. Sustainability marketing is considered to be different because the customer demand has to be fulfilled but not

necessarily by communicating in language of customer (Peattie and Belz, 2010; Whiting, 2008). On the other hand, sustainability

marketing strategy not only resulting in added value to customer but also building long term relationships with customers, which

are not only beneficial for business but also for society and ecology. The results of the study conducted among milk producers in

Salem district of Tamilnadu and East Godavari district of Andhra Pradesh collectively indicate that despite the amazing fact that

farmers’ affiliation to the milk marketing agency in the dairy value chain has promised the better outcome, there is still milk

producers not satisfied towards mode of payment, regularity in payment, behavior of elected staff, mechanization, bonus

disbursement, biasness in delivery of input services. Incorporation of GIS in monitoring, Installation of BMC, chilling centres,

exclusive extension support wing will increase the scope of delivering quality marketing service to milk producers.

In conclusion, milk marketing agencies have to resolve four Ps viz., Producer Price, Producers convenience, Producer

credibility and Producers performance to adopt the sustainability criteria in milk marketing. An attempt is also made to suggest

an imperative sustainable model for effective marketing service delivery to the rural milk producers.

Key words: Dairy farmers, Marketing services, Milk Marketing agency

Introduction

India ranks first in milk production, accounting for 18.5 % of world production, achieving an annual output of 155.5 million tones

during 2015-16 as compared to 137.69 million tonnes during 2013-14. The per capita availability of milk in India has increased

from 176 grams per day in 1990-91 to 337 grams per day by 2015-16. It is more than the world average of 294 grams per day

during 2013. This represents a sustained growth in availability of milk and milk products for the growing population Dairying has

become an important secondary source of income for millions of rural households engaged in agriculture. The analysis of

Percentage Share of Milk Production during 2015-16shows nearly 36% of the milk production is contributed by Indigenous

Buffaloes followed by 26% by crossbred cattle. The Indigenous cattle contribute 12% of the total milk production in the country

whereas non-descript cattle contribute 9% milk production and non-descript buffaloes contribute 13% milk production.


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Initiatives of Government for Dairy development –Organized milk marketing Sector

India was reckoned as a major threat in the dairying world. In retrospect, it was by no means an easy task. Dairy cooperatives

were among the first type of agricultural cooperatives playing a pivotal role in the remarkable expansion of milk and dairy

production in India.. The most notable of venture Dairy Development Movement movement was Kaira District Cooperative Milk

Producers‟ Union Limited of Anand, Gujarat. The government then set up the National Dairy Development Board (NDDB) in

1965, which prepared a blueprint for a dairy revolution across the country. The major objective was to provide an assured market

round the year to the rural milk producers and to establish linkage between rural milk production and urban market through

modern technology and professional management. Government of India took great initiative in setting up new Dairy Co

operatives in many parts of the country. The National Dairy Development Board (NDDB) was set up to make the ambitious

project of transforming India from acute milk shortage to the world‟s leading milk producer. This phenomenal success is

attributed to a Government initiative known as Operation Flood (1970–1996) through the development of a network of village

cooperatives for linking rural producer to urban markets. As part of the programme, around ten million farmers were enrolled as

members of about 73000 milk cooperative societies. Since the implementation of this programme, milk production increased from

21 million tonnes in 1970 to nearly 69 million tonnes in 1996, at the compound growth rate of 4.5 per cent Milk production and

productivity were enhanced by ensuring the availability of veterinary services viz., Breeding, therapeutic services, Input,

Preventive and Extension services. On the other hand, support is also offered by the private sector through activities such as

artificial insemination services, training for veterinary care and other livestock management skills. In 2010, the government and

the National Dairy Development Board have drawn up a National Dairy Plan (NDP) that proposed an expenditure of around USD

378 million to nearly double India‟s milk production by 2020. This plan will endeavour to increase the country‟s milk

productivity, improve access to quality feeds and improve farmer access to the organised market. These goals will be achieved

through activities that focus on increasing cooperative membership and growing the network of milk collection facilities

throughout India. (http://www.cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf). GIS offer a valuable supply

chain management tool. Relationships can be drawn between these locations, allowing for the company‟s supply chain to be

identified and monitored. (Vlachopoulou,2001 and Johnston 1999)

Dynamics of Cattle population

During the year 1951-56, the growth rate of cattle population in India was 0.43 per cent. The growth rate was persistently positive

up to the year 1987-92 with the values of 2.04, 0.07, 0.24, 0.19, 1.35, 0.74 and 0.49 per cent for the period 1956-61, 1961- 66,

1966-72, 1972-77, 1977-82, 1982-87 and 1987-92, respectively. The positive trend in cattle population up to the year 1992 but

population shifted to a decreasing trend for the period 1992-97 and 1997-2003 at the rate of 0.56 and 1.18 per cent, respectively.

But recently the cattle population showed a positive growth rate (1.83 per cent) during the period 2003-07, which is a healthy

indicator for the future dairy development. The cattle population in Tamil Nadu showed a mixed trend with the positive trend

during 1956-61, 1961-66, 1974-77, 1997-2004 and 2004-07 and negative trend in rest of the census periods. The Female Cattle

(Cows) Population has increased by 6.52% over the previous census (2007) and the total number of female cattle in 2012 is 122.9

million numbers. The exotic/crossbred milch cattle increased from 14.4 million to 19.42 million, giving rise to an increase of

34.78% whereas the indigenous milch cattle increased marginally from 48.04 million to 48.12 million, an increase of 0.17%.It was

evidenced that out of recent five inter-census periods, the growth rate was found to be negative for four periods, which might be

due to the reasons similar to the national scenario. The percentage change of in-milk cattle-Exotic population during 2007-12 has

shown an increase of 10% in rural areas as compared to the percentage change during 2003-07. The percentage changes in-milch

cattle-Exotic population during 2007-12 has increased by 23% in rural areas as compared to 2003-07. The variations in

Indigenous in-milk cattle population has decreased drastically during 2007-12 as compared to 2003-07. The percentage change in

in-milch cattle - Indigenous population has decreased by 65% during 2007-12 as compared to 2003-07 in rural areas.

Dynamics of Buffalo population

The buffalo population in the country was found to be positive till the year 2007. The rate was found to the highest (2.66 per cent)

during the period 1956-61. The table also revealed that the population growth rate ranged from one to two percent for all the

calculated inter-census periods. The Female Buffalo population has increased by 7.99% over the previous census and the total

number of female buffalo is 92.5 million numbers in 2012. The buffalo population has increased from 105.3 million to 108.7

million showing a growth of 3.19%. The milch buffaloes increased from 48.64 million to 51.05 million with an increase of 4.95%

over previous census. In Tamil Nadu, the buffalo population decreased at the rate of 2.34 per cent during the period 1951-56.

Then, it showed the positive trend during the subsequent periods till 1977-82. However, during the periods 1982-89, 1989-94,

1994-97, 1997- 2004 the growth rate showed negative trend with the values of 0.38, 1.29, 2.21 and 6.93 per cent, respectively.

The decline in growth of buffalo population might be due to existence of higher number of cattle over buffaloes over the years in

Tamil Nadu, difficulties in breeding management of buffaloes due to existence of silent heat, success of cross breeding in cows

which inhibit the dairy farmers to go for buffaloes. During the last intercensus period (2004-07), it registered an annual growth

rate of 4.91 per cent, which is the favourable indication for the dairy development of the state. The total Buffalo contributes

around 21.23% of the total livestock population. The total number of Buffalo in the country as per 2012 Census is 108.7 million

numbers. The variations of animals in milk of buffalo population during the period 2003-07 and 2007-12 showing a decline of

56% in rural area. The percentage changes in - milch Buffalo population during the periods has increased by 46% in rural areas.

The percentage changes in total female Buffalo population showing an increase of 10% in rural areas. The decline of Male

Buffalo population is on higher side for both rural and urban areas during 2007-12This might be due to successful implementation

of various dairy development programmes by Government, NGOs and Private dairies.(Prabu et al, 2012)

http://www.cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf


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Current Status of milk industry

The agencies involved in milk marketing are classified into organized marketing sector (OMS) and Traditional marketing sector

(TMS). OMS includes dairy co-operatives and large private corporate dairies such as Nestle, Smith Kline, Heritage, Thirumala,

Gho milk, Nanjil dairy, Hatsun Agro Product Ltd, ABT dairies etc... TMS includes mostly vendors or village milkmen who

procure milk from the milk producers in their farm premises, transport for small distances and sell it in urban areas without

processing (Fig 2).The largest supply of milk is through the Traditional Milk Sector (TMS), and traditional processors. TMS

extends livelihood options for the poor producers in backward and low producing areas. It assures supply of milk to middle and

lower-middle class consumers in a vast majority of smaller towns. Despite its large size, spread, reach and impact potential, this

sector remains largely neglected in terms of extension, recognition, research and exploration. There was no discernible

relationship between herd-size and the choice of milk marketing chain. The study conducted by Anjani Kumar in Bihar 2010

revealed that small holders market their milk through the traditional milk supply chain. The proportion of milk-producing

households marketing their milk through traditional milk supply chains varied from about 64 per cent (HH with 2 milch animals)

to 80 per cent (HH with 3 milch animals). The proportion of marketed milk sold through the traditional milk supply chain varied

from 48 per cent to 71 per cent across different categories. The same appeared to be true when the relationship between farm-size

and choice of milk producing households on marketing chain was examined. All the categories of milk-producing households

were found marketing their milk through the traditional milk supply chain. Nevertheless, the proportion of milk in the traditional

milk supply chain varied from 20 per cent in the case of large farmers to 94 per cent in the case of landless farmers. Similarly, the

proportion of marketed milk sold through traditional milk supply chain varied from 7 per cent (large farmers) to 98 per cent

(landless milk producers). There was a slight linear trend which showed that the landless dairy farm households were more likely

to sell their milk through the traditional milk supply chain than landholder dairy farmers. Traditional milk processing seems to

offer good opportunities for the small and resource-poor milk producers and traders to enhance their income. The traditional milk

sector should be addressed in a constructive manner and the policies should be evolved which would allow informal players

improve their performance including quality control and their integration with the emerging modern milk supply chains. These

traditional and informal milk marketing chains often provide the main outlet for smallholder dairy producers and major source of

fresh milk supply for consumers. They have been playing a pivotal role in linking growing demand among consumers with

increased production from producers. The emergence of modern milk marketing chains is posing stiff competition for the

existence of traditional milk market agents. However, the basic structure of milk production and marketing is not likely to change

significantly in the near future and therefore, the dominance of traditional milk market chains will continue to persist in spite of

the rapid growth of the organized and formal milk marketing chains. The structure and functioning of the traditional and informal

milk market is not well understood in India. (Anjani Kumar 2010).

Organized marketing sector (OMS)

Over the past 30 years, the major focus of growth in this sector has been the Organized Marketing Sector (OMS).

Cooperatives currently procure about 16 percent of the national marketable surplus covering around 21 percent of the country‟s

villages and 18 percent of the rural milk producing house-holds. It will be desirable for the cooperative sector to achieve a

procurement share of at least 20 percent of the marketable milk surplus by 2016-17 so that it retains an overall 50 percent share of

the marketable surplus handled by the organized sector. However, the OMS contributes to only an estimated 20-23% of the milk

marketed in the country. It is estimated that Private sector have created processing capacities in the last 15 years equal to those set

up by cooperatives in more than 30 years. While the private sector will grow –it is important-in the interests of livelihoods and

inclusiveness that cooperatives retain their existing 50 percent share of the milk handled by the organized sector even in 2016-17.

Concisely, Prompt payments, sustainability of marketing systems in business were major factors responsible for retaining and

attracting new dairy farmers. Gopalakrishnaiah and Pochaiah (1989), Thirunavukkarasu et al (1992) and Rao (1997) observed that

members of cooperatives found low procurement prices for the milk as one of the constraints. But with the experiences with

various marketing options, farmers feel that rather than milk prices prompt payment for the milk sold is a greater issue. The reason

for preferring OMS is portrayed in Figure 3.

A review of the milk marketing system in Tamil Nadu (OMS & TMS) has shown that there are at least 12 different marketing

channels as shown below:


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Channel Milk Marketing Channels Number of

intermediaries

I. Producer-Consumer 0

II. Producer- Dairy Co-Operative -Consumer 1

III. Producer- Private Vendor-Dairy Co-Operative -Consumer 2

IV. Producer- Milk Collector -Dairy Co-Operative -Consumer 2

V. Producer- Milk Collector -Dairy Co-Operative –Milk Processing Unit-

Consumer

3

VI. Producer- Informal Channel - Retailer- Consumer 2

VII. Producer- Producer- Milk Collector -Dairy Co-Operative –Milk

Processing Unit - Retailer-Consumer

5

VIII. Producer- PMMA* -Consumer 1

IX. Producer- Private Vendor-PMMA-Consumer 2

X. Producer- Milk Collector -PMMA -Consumer 2

XI. Producer- Milk Collector -PMMA –Milk Processing Unit- Consumer 3

XII. Producer- Producer- Milk Collector -PMMA–Milk Processing Unit -

Retailer-Consumer

5

*Private Milk Marketing Agency

The number of intermediaries involved will have a bearing on both producer and consumer milk prices. The shorter the channel

the more likely that the consumer prices will be low and the producer will get a higher return.

Fig 1: Factors affecting Milk producers to prefer different OMS

Payment mode

Mode of Milk measurement

Behaviour of the staff

Convenient time of collection

Proximity of milk collection centre

Payment interval

Transparency in milk testing for fat & SNF


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Fig 2: Flow chart of Milk procurement by OMS and TMS

Fig 3: Reasons for Preferring Formal Channels of Milk Marketing by Milk Producers

Rural Farmers are made member farmers

procurement of milk by Village-Level Collection Centers (VLCCs)

VLCCs is put to test with the computerised milk scanners which checks the Fat and SNF

levels of the milk.

Transportation of milk

to the Bulk Milk Coolers (BMCs).

Milk is collected in cans and transported to the Bulk Milk Coolers (BMCs)

Quality check in BMCS(MBRT, Total fat and SNF)

Chilled milk from here is taken in insulated milk tankers to the factory

Small holder Farmers are targetted

Procurement of milk at door step

Oral/manual recording of milk measurment

Transportation of milk

through cans to urban/ needy areas

REASON FOR PREFERRING

FORMAL CHANNELS OF

MILK MARKETING

Perceived as Government

agency

Loyalty

Creditworthiness

Expectation of credit

Timely availability of

veterinary services

Transparency in milk testing

Higher procurement

price

Proximity of collection centre to

farm/home

OMS TMS


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Fig 4: Characterization of Informal Channels of Milk Procurement

Table 1 : List of formal milk marketing channels in Tamil Nadu

Particulars Handling

capacity in llpd

Operational Area Product range Brand name

Aavin 28.50 LLPD All over tamilnadu Liquid milk,Ghee, Butter,

Ghee,Flavoured milk

Aavin

ABTIL 2.0 LLPD Kerala and Tamilnadu Ghee, Skimmed Milk

Powder and Dairy

Whitener

Sakthi

Cavin

Kare

1.6-2.10 LLPD 18000 Milk

Paneer

Ghee

Flavoured milk

Cavins

Hatsun agro

product Ltd

28 LLPD from

3.10 lakh farmers

Major parts of

Tamilnadu, Pondycherry,

AP, Karnataka

Milk Powder, Milk, Curd,

Ghee, Dairy Whitener,

Anhydrous Milk fat,

Frozen Cream

Hatsun, Arogya

Kodai dairies

industries Ltd

NA Kodaikannal Cheese Kodai cheese

Nambisans

dairy Ltd

NA NA Butter and Ghee

Sri

Mahalakshmi

Dairy

NA Coimbatore Milk Powder, Liquid

Milk, Curd, Ghee, Dairy

Whitener

Aroma

Raaj milk 250,000 LPD Theni, Ambasamudram,

Usilampatti, Bodi,

Periakulam, Batlagundu,

Nilakottai, Dindigul,

Dharapuram, Karur,

Udumalpet, Pollachi,

Karur, Thiruchirapalli,

Namakkal

Milk,

Curd and Ghee

Raaj milk in TN

Malabar milk in

Kerala

Vijaya milk 2.0LLPD Tiruchirapalli Liquid milk Vijaya

SKA Dairy

Foods India Pr

ivate Limited

4.0 -7.0 LLPD Sale and Krishnagiri Liquid milk, Ghee, Butter

and Paneer

Arjuna

Charachterisation of

Informal Channels Of

Milk Marketing

Perceived as Government

agency

Credibility

as perceived by the

consumer

Availability of credit during exigency as

cash

Door step procurement

No milk testing

Oral recording of

milk

Non-regulated


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Conclusion

It can be concluded that milk marketing agencies have to resolve four Ps viz., Producer Price, Producers convenience, Producer

credibility and Producers performance to adopt the sustainability criteria in milk marketing. Huge potential for increase the milk

production trend in India vested with efficient supply chain network. While creating an efficient supply chain network both TMS

and OMS through investment in infrastructure will take its own time, we can enhance competitiveness by sustaining the cost of

milk production, augmenting R&D towards rise in milk and fodder productivity, improving quality and adopting sustainable

marketing models. Linking the production system to the consumer demand, better quality and processed products require a robust

value chain, strong research and technology infusion for productivity enhancement and risk mitigation. But there is dearth of

studies on study of Milk and Marketing channels and scope for improving it. As far as TMS is concerned it is very less explored

by the researchers. It is suggested institutional arrangements such as for short-term credit to dairy farmers on the lines of „crop

loan‟ through innovative financial products, such as „dairy credit card‟ by forming Farmer Producer Companies (FPOs). TMS

does not appear to be exploitative in milk procurement and the presence of multiple players in the milk market ensures better price

for the milk producers. From the foregoing discussion, this paper suggest the use of Geographical Information Systems (GIS) as a

valuable supply chain tool (TMS and OMS) for tapping the milk production in resource poor areas and ensure remunerative price

for milk producers by forming efficient supply chain . A GIS model can involve the following:

Management of milk procurement from the village level procurement centre

Management of milk transportation/fleet operation from the procurement agency to the Chilling Centre/Dairy Plant

Monitoring activities of collection centre

Ensuring availability and accessibility of Veterinary Services for the members

Epidemiological information on the dimension of spread area and time.

Estimation of the milk production potential in the milk shed

But practically, it is not easy task to design these kinds of strategies because of the related issues and challenges.

References:

1. Current Status of Milk Industry In India With SWOT Analysis Submitted By Radhakrishna Sahu M-5643Image Source:

Annual Report NDDB (2014-15)))

2. Prabu1 , G. Senthil Kumar2 , A. Serma Saravan PaPandian2 , K.N. Selvakumar3 and B. Jaya Varathan2, DYNAMICS

OF LIVESTOCK POPULATION - INDIA VIS-À-VIS TAMIL NADU M. Tamilnadu J. Veterinary & Animal Sciences

8 (5) 266-270

3. Enabling Efficient Supply Chain in Dairying Using GIS: A Case of Private Dairy Industry in Andhra Pradesh State Amit

Kumar, Ranjit Kumar and K.H. Rao, Ind. Jn. of Agri. Econ. Vol.67, No.3, July-Sept. 2012.

4. http://www.cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf

5. http://shodhganga.inflibnet.ac.in/bitstream/10603/33789/3/chapter3.pdf

6. https://southasia.ifpri.info/2016/04/11/financing-of-dairy-value-chains-in-india/

7. www.aavin.com

8. www.sakthigroup.com

9. www.cavinKare.com

10. www.kodaidairyproducts.com

11. http://skadairyfoods.com/images/catalogue1.pdf

12. Johnston, D.A., G.D. Taylor and G. Visweswaramurthy (1999), “Highly Constrained Multi-Facility Warehouse

Management System Using a GIS Platform”, Integrated Manufacturing Systems, Vol.10, No.4, pp. 221–233.

13. Vlachopoulou, M., G. Silleos and V. Manthou (2001), “Geographic Information Systems in Warehouse Site Selection

Decisions”, International Journal of Production Economics, Vol.71, No.1, pp. 205– 212.

14. Huttner, M. (2005). Does perishable-transport really require freight traffic?. Lufthansa Consulting. Retrieved March 10,

2011 from www.lhconsulting.com/fileadmin/downloads/studies/PER-Transport.pdf

15. Gopalakrishnaiah C H and Pochiah Maraty 1989 Impact of primary milk producer's co-operative societies on

beneficiaries in Nalgonda district of Andhra Pradesh. Indian Co-operative Review, XXVII (1): pp. 278-281.

16. Rao Jagadeeswara S 1997 A critical analysis of impact of dairy development in Visakapatnam district of Andhra

Pradesh, Unpublished Ph.D., Thesis, ANGRAU, Hyderabad, India.

17. Thirunavukkarasu D and Sudeepkumar N K 2005: Milk marketing options for the dairy farmers in open economy

and their choice in Tamil Nadu, India. Livestock Research for Rural Development. Volume 17, Art.

#92. RetrievedNovember 13, 2017, from http://www.lrrd.org/lrrd17/8/thir17092.htm

18. Thiruvavukkarasu M, Prabaharan R and Ramasamy C 1992 Operation flood-A few constraints. Indian Journal of Social

Work, Volume LIII (1) pp 115-118.

19. Anjani Kumar(2010) Milk Marketing Chains in Bihar: Implications for Dairy Farmers and Traders, Agricultural

Economics Research Review Vol. 23 (Conference Number) 2010 pp 469-477.

http://www.cms.iuf.org/sites/cms.iuf.org/files/Indian%20Dairy%20Industry.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/33789/3/chapter3.pdf

https://southasia.ifpri.info/2016/04/11/financing-of-dairy-value-chains-in-india/

http://www.aavin.com/

http://www.sakthigroup.com/

http://www.cavinkare.com/

http://www.kodaidairyproducts.com/

http://skadairyfoods.com/images/catalogue1.pdf

http://www.lhconsulting.com/fileadmin/downloads/studies/PER-Transport.pdf


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SUSTAINABLE MARKETING PRACTICES BY TEXTILE INDUSTRY WITH

SPECIAL REFERENCE TO POTHYS, TIRUNELVELI

*DR.R.SANGEETHA & **DR.S.A.SENTHIL KUMAR

*ASSISTANT PROFESSOR, XAVIER INSTITUTE OF BUSINESS ADMINISTRATION, ST.XAVIER’S

COLEGE(AUTONOMOUS), PALAYAMKOTAI

**ASSOCIATE PROFESSOR & HOD, DEPARTMENT OF MANAGEMENT STUDIES, PONDICHERRY UNIVERSITY,

KARAIKAL CAMPUS, KARAIKAL.

Introduction

Clothing is an important aspect of everyday life. Together with nutrition and shelter, it forms part of human basic needs. Obviously,

clothing has always fulfilled far more purposes in societies, and not only in modern ones. Special clothes or colors showed the social

rank of their bearers of a special peer group nowadays.

The textile and clothing industry has experienced a deep structural change in all leading industrial countries like India.Now a days the

elimination of hazardous substances and the development of environmentally friendly marketing practices are as the main target for

textile manufacturers and retailers. The textile business can be seen as a baleful string which links ecological and social problems in

the countries of origin with customer protection (Schmidt, 2002)i .

Increasing demand and supply of textiles is seen as an important factor towards a more sustainable business. A green consumer is one

who is aware of the background of the products he consumes, which he chooses upon careful investigation of their broad effects on

the environment. This spirit is essential in customers, so that they do not blindly fall for a company‟s advertisements, which will

hinder the progress of the green movement. Hence it is only with the right attitude from both the consumers and the marketers, that

„going green‟ can be achieved in the true sense and when that happens, we can finally feel environmentally safe.

Sustainable Marketing Practices in Textile Industry

Since the Textile Industry is rapidly growing in this century in terms of production volume and employment, their environment al

impact is huge.Besides, the textile industry is a thirsty industry with huge consumer of water, which is a s carcedresource.It also has

become as one of the most polluting industries which made the textile industries to adopt sustainable practices in order to conserve

the natural environment. Now-a-days majority of the industry practices are aiming for achieving sustainability.Sustainable

practices in textile industry include saving water, avoiding hazardous materials, and adopting eco-friendly practices.Marketing

Practices such as promotion of new methods of production and products that help increase the efficiency of material and energy

(integrated environmental protection) are known as Sustainable Marketing Practices.


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Objectives of The Study

1. To analyze the opinion of the marketers of textile industry – Pothys, for taking green initiatives.

2. To identify the factors affecting green products decision in view of textile marketer

3. To offer suggestions for improving and implementing eco-friendly green products in textile industries.

Scope of Sustainable Marketing

This study focuses on Green Marketing campaigns adopted by Pothys in Tirunelveli by analyzing their sustainable marketing

practices.Since the textiles being the basic needs of individuals add more value for sustainable products and services.

Data Collection Method

Both primary and secondary data are used to draw conclusions. The primary data is collected through an interview schedule which

was administered through personal interview. This consists of Green product strategies, resource saving measures, cost control

techniques, waste management, clean process in textile industry and consumer awareness of Green campaigns.

Review of Literature

The demands for green products have increased with the heightened awareness of environmental issues ( Prothero, 1990 ;

Schlegelmilch, Bohlen and Diamantopoulos , 1996)ii. The study conducted by Sourabh Bhattacharya (2011)

iii stated that the green

marketers in India should carry out heavy promotional campaigns, because majority of the Indian consumers are price-sensitive and

are not sure about the equality of green products. Shah, Praneti (2010)iv define Green marketing is a broadly used term that can

describe any marketing message that touts a company‟s use of ecologically safer products or processes, including recyclable and

biodegradable packaging, energy-efficient operations, better pollution controls or anything that lessens a company‟s environmental or

„carbon‟ footprint (a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases

produced, measured in units of carbon dioxide). Gladwin (1992 )v, highlights “ If goals of sustainability are to be achieved , firms

must be reformed , redesigned and restructured to minimize the negative ecological impacts “. Bhaskaran and SuchitraMohanty

(2008)vi, in their research work observed that the concept of organic agriculture was very wide and holistic which was close to

sustainable agriculture.Beatley,(1994 )vii

,The social aspect of Sustainable Development is concerned with issues such as biodiversity

, lifestyle , health and population. There are approximately 5.8 billion people inhabiting the planet, and it is predicted that our global

population will double during the next 50 years.

Pothys - Profile

Pothys has established itself as house hold name in the textile industry in Tamil Nadu. Their undisputed reputation stems from the

unflinching dedication to give customers the highest quality, exclusive and diverse clothing options and unmatched customer

service.Their hard work, dedication and perseverance has earned us the distinction of being voted the most preferred saree showroom

in Chennai, according to SUN TV Neilson survey in the year 2002. They are also the first retail showroom in Tamil Nadu to be

accredited with ISO 9001 certification way back in 2003. Pothys desire to innovate and excel in silk manufacturing won us the

Guinness World Record in the year 2005 for creating the worlds longest silk saree.

Their showrooms house the largest collection of silk sarees in Tamil Nadu. At Pothys one can get the benefit of diverse silk varieties,

exclusive designs and authentic silk brands. Pothys is the first Textile showroom in Tamil Nadu to launch its own unique brand of silk

sarees namely Samudrika, Parampara and Vastrakala. These silk brands stand apart for their richness in silk, exclusivity in design and

luxury, genuine zari work and weaving artistry for that special look and feel. Their branded silks are truly heirlooms in their own right

and are designed to last for generations to come.

The house of Pothys has a rich legacy and vibrant history, their fore fathers served as weavers to the royal households of the maharajas

of yesteryears. Pothys itself was established over 90 years back by K.V. PothyMoopanar our founding father, under the name

PothyMoopanar to sell cotton sarees, dhotis and towels woven in his own loom. Thus our first showroom was set up at Srivilliputtur.

Various Sections In Pothys

1. Pothys – Silk

2. Textiles – Shirting & Suiting

3. Fabrics – Sarees, Voil Sarees

4. Moopanars – Blouse material, Gada Pothys

5. Garments – Children‟s, Gents, Ladies.


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Choosing The Right Green Marketing Strategy

The leading textiles Pothys always keep in mind that consumers are unlikely to compromise on traditional product attributes, such as

convenience, availability, price, quality and performance. Their social responsibility is focused on the customers and it takes into

account the environmental problems, and its long term welfare. Stewart & Salmon (1993) define „Social Responsibility‟ as follows: It

is a method of management which the organizations are involved in those activities that have positive effects on the society and will

promote the products.

Green Logo

Pothys has it‟s logo as the alphabet „P‟ in green colour.Green represents: Harmony, Natural, Healthy, Renewal and Plentiful. It also

symbolizes growth, freshness, and fertility. Green is mainly used to represent eco-friendly companies or businesses revolving around

agriculture, recycling, landscaping, gardening and solar power. It is the color of nature and gives a calming effect while representing

growth.It also has strong emotional correspondence with safety. Dark green is also commonly associated with money and it has great

healing power. It is the most restful color for human eyes; it canimprove vision.

World Environmental Day

In order to connect with nature,Pothys have been taking green initiatives to celebrate world environmental day along with the

stakeholders.

Packaging and Design

If marketers use non recyclable plastic bags, it is impossible to recycle these bags for the next 400 years.Hence Pothys uses recyclable

and paper bags.Their packaging is in such a way that it would be easy to use them and it would not become a bother for their

consumers to use them.While designing their packaging the following principles have been considered by Pothys:

• New design based on futurism

• New design based on health and safety

• New design based on simple separations

• New design based on being able to recycle the products and decrease the pollutions by using minimum energy

• New design based on using less materials and components of the products

• New design based on simple application.

Advertising/Promotions

Pothys always paying attention to the consumer‟s welfare. Their product promotion is in a manner that the consumers are given

free plant saplings for making the environment green.

Services

Their process of providing services is based on Sustainability of which the ultimate goal is to provide the needs and wants of the

consumers with the least harm to the environment.


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Analysis and Interpretation

S.No Opinion Mean Value

1 Opinion For Adopting Green Marketing Strategy 5 2 Opinion of the Business Complying With The Environmental Demands of The Local

Authority. 4

3 Opinion About Product Containing Eco – Labels. 2 4 Opinion About For Having Active System to Detect and Repair Water Leakage In

Toilets, & Shower Heads. 5

5 Opinion For Having Energy Saving Lights & Bulbs In The Premises 4 6 Opinion About Having Sensors Or Timers To Save Electricity 5 7 Opinions About Responsible Utilization of Resources For Clean Environment 5 8 Opinion On Having Trained Employees For Better Environmental Performance 5 9 Opinion About To Educate The Stakeholders Regarding Green Marketing 5 10 Opinion About Charging Customers For Green Strategies 4 11 Opinion About For Having Visible Communications

About Green Practices 5

12 Opinion About Participation In Environmental Partnership Or Certification 5 13 Strongly Influenced Marketing Elements On Buying Behavior Of Green Products. 5 Interpretation

From the above analysis it is evident that Pothys have strong agreement that they are

Adopting Green Marketing Strategy

Having Active System to Detect and Repair Water Leakage In Toilets, & Shower Heads.

Having Sensors Or Timers To Save Electricity

Responsible Utilization of Resources For Clean Environment

Having Trained Employees For Better Environmental Performance

Educate The Stakeholders Regarding Green Marketing

Having Visible Communications About Green Practices

Making Participation In Environmental Partnership Or Certification

Having Strongly Influenced Marketing Elements On Buying Behavior of Green Products.

However,Pothys have disagreement with the opinion that their products contain Eco-Labels.

Type of Green Strategy Adopted By Pothys

Type Of Green Strategy

Mean Value

Product 4

Package 5

Place 5

Promotion 5

Interpretation

Pothys strongly agree that their Green Strategy includes Packaging Strategy,Place Strategy as well as Promotion Strategy and agree

that their Green Strategy includes product strategy also.


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Rank of Key Factors Which Affect Green Decision In Textile Retailing

Sl. No Factors Rank

1 Central Govt. environmental Regulation 1

2 Regional / State environmental Regulation 4

3 Potential liability for dispute of hazardous materials 3

4 Cost of disposal of hazardous materials 2

5 Suppliers' advances in developing environmental friendly goods 7

6 cost of environmental friendly goods 5

7 Suppliers' advances in environmental friendly packages 6

8 Cost of environmental friendly packages 8

9 Environmental Partnership with suppliers 9

In the textile industry Pothys, Central Govt environmental regulation andcost of disposal of hazardous materials were major

factors which affect green decision which were ranked first and second place. It is followed by the facts, such as potential labiality for

disposal of hazardous materials, Region / State environmental regulations and cost of environmental friendly goods which were

ranked 3rd

, 4th

and 5th

positions. The factor of Environmental Partnership with suppliers was ranked ninth place.

Suggestions

1. Pothys has not fully tried on green practices of “Product Containing Eco – Labels”.Hence,theymay concentrate more on this

and make policies in order to implement green practices in eco-labeling.

2. Regarding Central Govt. environmental Regulations to adopt green practices Pothys may submit petition to the Government

on behalf of textile industry, or the Government may conduct discussion with textile ministry for further regulations and

make favour in order to adopt best green practices in the textile industry.

3. Due to the Cost of disposal of hazardous materials ,Pothys canidentify the alternate way for the disposal of hazardous

materials .

4. All their Eco-friendly alternatives can be linked with the rewards.

5. Pothys can use a wide range of media in combination to communicate eco-friendly approach to the environment so that they

can deliver what they promise.

REFERENCES

iSchmidt, R. (2002) - “NichtNurÖko, SondernSauber”, VerbraucherKonkret 1/ 2002, pp.13–15.

iiSchlegelmilch, B.B., Bohlen and A. Diamantopoulos , (1996) - ‟The Link between Green Purchasing Decisions and Measures of

Environmental Consciousness‟,European Journal of Marketing, 30(5): 35 - 55.

iii

Bhattacharya and Sourabh, (2011)- “Consumer Attitude towards Green Marketing in India”, The IUP Journal of Marketing

Management, Vol. 10, pp. 62 – 70.

ivShah, Praneti.(2010)- Awareness& Preference towards Carbon Credits – An Initiative to go for Green .Prabandhan: Indian Journal

of Management, Vol. 3(2). New Delhi.

vGladwin, T. 1992. Building the sustainable corporation : Creating Environmental Sustainability and Competitive Advantage .National

Wildlife Federation ; Washington DC .

viBhaskaran,S, and SuchitraMohanty, (2008) - “Marketing of Organic Products – Global Experiences‟‟, The ICFAI University Press,

Agartala, pp. 5-6 .

vii

Beatley, T. 1994. Ethical land use.John Hopkins University Press, Baltimore, MD.


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COMMUNITY ORIENTED FARMERS ORGANIZATION FOR SUSTAINABLE GOAT

MARKETING: THE ROAD AHEAD FOR RURAL DEVELOPMENT

*Sunitha Prasad, **Sangameswaran R & *** Sathyaseelan M

*Assistant Professor, NTR CVSc., Andhra Pradesh,

**Assistant Professor, TANUVAS, Tamilnadu,

*** Asst. Manager, Venkateshwara Hatcheries, Bangalore

ABSTRACT

The vast majority of the Indian rural population’s livelihood security is partly based on livestock

production and marketing. Understanding marketing characteristics, producers’ needs and perceptions,

constraints, opportunities, and workable marketing strategies are required in order to improve and regulate

rural market success. India’s goat market is predominantly ‘wet market’ which is highly unorganized and

largely unregulated, and remained as a low priority sector. Stakeholders’ single-minded pursuit of goat

production and productivity enhancement at all costs has harmed its marketing strategies. However, goat

production, productivity and producers’ benefits from goat marketing are far below expectations. The farmers’

participation in goat marketing is very low. The physical characteristics viz., body weight, breed, sex were

influenced significantly on sale price of goat and sheep. However, no comprehensive studies on marketing

aspect of goat have been conducted in Tamilnadu. Researches revealed that sale of goats from farmers to

different buyers in the village itself accounted for more than 75 percent of the total sale of live goats and only

about 25 percent of the surplus goats were sold in the livestock markets. Understanding the market and

preparing itself to respond to emerging market trends would be the prime instrument for enhancing the

domestic livelihood opportunities in the sheep and goat sector. The goat marketing in Tamilnadu was

characterized by high middlemen’s margin, pricing inefficiency, poor participation of farmers in the market,

considerable transit losses, lack of access to market information and poor market infrastructure.

This paper describes the imperative need of replacing traditional marketing channels of livestock with

ad hoc sales by coordinated links among farmers by forming interest groups or Producers organisation for

improving goat marketing system in rural areas of Tamilnadu. Encouragingly, many value chain interventions

by producer organisation in agriculture and dairy development have found promising ways to mitigate these

challenges. Major part of the conclusions is based on observation and literature review. In conclusion this

paper suggests that goat marketing by producers’ organization with specifically comprehensive, multipronged

and targeted marketing strategies for maintaining profitability, public interest and sustainability.

Key words: Goat farmers, Sustainability, Producers Organisation


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Introduction

Livestock Marketing refers to all the activities, agencies and policies involved in the procurement of

farm inputs by the farmers and the movement of goats from the farms to the consumers. An efficient marketing

system should minimize costs and maximizes benefits to all the sections of the society. As far as the field of

marketing strategy is concerned, it is very less explored by researchers. The prime role of marketing strategy is

to achieve competitive advantage (Slater and Olson, 2001; Ansary, 2006). Therefore marketing strategy is

important component of strategy which cannot be overlooked. According to Walker et al. (1992), “Marketing

strategy is defined as the effective allocation and coordination of marketing resources to accomplish the

organization’s objectives within a specific product market. As such, marketing strategy decisions involve

specifying the target market segment(s) to be pursued and the product line to be offered. Further, firms seek

competitive advantage and synergy, planning a well integrated program of marketing elements (the 4P’s)

tailored to the needs and wants of customers in the target segments” (Zinkhan and Pereira, 1994). This paper

attempt to provide comprehensive suggestions of forming producers‟ organisation for sustainable goat

marketing. Authors do attempt raising key reasons for success of forming POs with reference to agriculture.

Role of Smallholders in Production

Although this paper is focused on market issues, the goat production context is clearly an important determinant

of options for improving market performance. Despite the least attention from the planners, goat population in

India has increased at the fastest rate among all major livestock species during last two decades. According to

2012 Livestock census, Goat population accounts 26.4% which is lesser than cattle (37.65%) but greater than

buffalo (21.23%), sheep (12.71%) and pigs & remaining others (2%) contributions to total livestock population

in India. Similar scenario is seen in Tamilnadu where the goat population accounts 35.84% which is lesser than

cattle (38.79%) but greater than sheep (21.07%), Buffalo (3.43%) and pig & others (0.81%) contributes to total

livestock population. There is a negative growth in livestock population from 2007 to 2012 but the percentage

of negative growth of other ruminants i.e., bovines (27.3%), sheep (40.1%) is more when compared to goat

population (12.2%). However, instead of increasing goat population, emphasis should be laid on productivity

per animal, organised markets and prevention of emergence of new diseases. The goat improvement programme

is to be given a push through extending credit to the poor landless farmers.

( http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume2/v2_ch5_2.pdf pp.568). The small

ruminants provide livelihood support to the poor underprivileged landless, and marginal farm households. The

goat and sheep production systems are mainly subsistence-oriented but in view of the rising demand for meat,

there is a great scope for their commercialization. Nonetheless, these animals have been grossly neglected in

development programs and their potential for enhancing livestock growth remains untapped

(http://planningcommission.gov.in/aboutus/committee/wrkgrp12/agri/AHD_REPORT_Final_rev.pdf-33). Goat

Production is constrained by feed shortages, high kid mortality and the marketing constraints include pricing of

animals without weighing, butchers‟ lack of knowledge on hygienic and sanitary practices as well as the loss of

animal weight after purchase because of health issues.

Unorganised or Informal Markets

A specific Indian phenomenon in the goat marketing is middlemen who procure the goats from rural

area and sell them weekly in shandies Traditional markets tend to supply low cost fresh produce particularly to

poor consumers, and also generally provide a greater proportion of market outlets for smallholder producers,

who often are less able to link effectively to formal markets, outside of such cases as the successful village co-

operative societies. It should be noted that traditional markets generally generate more employment, because of

the labour-intensive nature of their enterprises, which of course is also the basis for their low costs. In states

such as Haryana and Gujarat, goat/meat production is increasingly commercialised and market-driven and soar

“leading” zones, compared to other states sometimes described as “lagging”, such as Odisha, which is described

http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume2/v2_ch5_2.pdf

http://planningcommission.gov.in/aboutus/committee/wrkgrp12/agri/AHD_REPORT_Final_rev.pdf-33


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as subsistence and livelihood oriented, and where livestock represents only 20 per cent of agricultural GDP

(World Bank, 2011). The competitiveness of smallholder livestock producers is closely linked to their

household model of production, contrary to the usual assumption that greater scale is inevitably linked to

greater competiveness. Consider a case when livestock product prices fall in the market for exogenous reasons –

while the profit-dependent commercial producer may be forced to suspend production, a household producer

may continue to participate in the market because of the other benefits being generated. A study in Jharkhand

showed that irrespective of location, length of the chain and number of actors involved, the price achieved by

goat farmers is more than 70% of the consumer price which is higher than milk (65 %), potatoes (58 %), onions

(46 %) and tomatoes (25 %) indicating that middle level agents were not exploitative. Across all goat value

chains butchers receive the highest margin along the value chain (15%), due to their comparatively higher

expenses, in comparison to wholesale traders (10%) and retail traders (5 %). Farmers sell 2-3 animals per

month, while wholesale traders handle about 500 animals, retaining INR 150 000 as margin. Further, the local

hill goat keepers are not able to benefit greatly from market demand as 90% of the traded goats are sourced

from the plains of neighbouring states (V. Padmakumar, Sapna Jarial, 1994). Wholesalers in particular are

challenged by an inadequate number of animals, improper facilities for buying and selling, high transportation

costs and corruption. Consumers in the urban chain reveal that butchers sell chevon adulterated with mutton as

consumers prefer chevon. Lastly, rural consumers prefer black goats and report a shortage, especially for

religious sacrifices. It can be concluded that breeding strategies targeted at consumer preferences, improved

health care, credit provision, improved buyer-seller platforms, training on and introduction of hygienic

slaughtering facilities with an appropriate support frame-work and an efficient collaboration between relevant

stakeholders will enable the emergence of sustainable and efficient goat value chains in hill areas.

Linking Farmers to Markets with Informal Markets by forming goat producers organization

Farmers‟ and rural producers‟ organizations refer to independent, non-governmental, membership-based rural

organizations of part or fulltime self-employed smallholders based on principles of non-discrimination, service

availability and accessibility to their members, including market opportunities. Producer Organizations (POs)

are successfully strengthening the economic position of their members by providing agricultural inputs, credit,

processing and marketing services (Narayanan and Gulati, 2002). Organizing farmers into specific producer

groups also improves the effectiveness and efficiency of agricultural extension systems in supplying relevant

commodity or product-specific information and training directly to farmer groups who are producing particular

crops or products (Swanson, 2008).

Examples are

Farmer associations around a commodity - Maharashtra State Grapes Grower Association

Activity based such as water management - Pani Panchayats

Producer co-operatives- DCS by the NDDB

Producer Company -Vanilla India Producer Company Limited (VANILCO).

The major types of producer organizations active in India are discussed hereunder

The Grower Associations

Many commodity oriented (fruits, vegetables, sugarcane, banana, etc.,) grower societies are functional in India,

which help farmer members in getting the latest information and technology.

Activities:

Maintain regular contacts with research centres working on grapes to access information and

technologies

Organizes educational programmes for its member farmers.

Support grape growers in developing integrated plant protection schedule against pest and diseases

Implementing measures to reduce pesticide residues to facilitate exports.

Organizes seminars and conventions strengthen the grape sector.


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The User Associations User groups are common in the area of participatory irrigation management, watershed management and

community forest management.

Odisha, the Orissa Farmers Management Irrigation Act provides for the establishment of farmers organizations

in all the irrigation systems, for their operation and maintenance The farmers‟ collective action is enabled

through the formation of Pani Panchayats whose office bearers are elected through a democratic process.

Activities

Orient farmers to adopt the best water management practices

Understand the collective management systems in crop planning, water distribution and conflict

resolution and develop an action plan for strengthening learning.

The Farmer Cooperatives

Dairy sector have organized an effective extension delivery system in India. Dairy cooperatives exist in many

states and are owned by about 15 million farmer members, out of which over 4 million are women members.

Best model for dairy cooperatives is AMUL.

Farmers producer/Interest group (FIG)

The Government of Tamil Nadu is launching an innovative programme for organizing small and marginal

farmers into „Farmer Producer Groups‟ which will be federated into „Farmer Producer Organisations‟ to

promote collective farming for credit mobilization, better adoption of technology and to facilitate effective

forward and backward linkages. In 2017-18, as a pilot project, 2,000 such Farmer Producer Groups will be

promoted, each comprising not less than 100 farmers so as to cover atleast two lakh farmers this year. Each

Farmer Producer Group will be given a corpus fund of Rs.5 lakh besides channelizing grants and credit

available to Farmer Producer Organizations from NABARD and Small Farmer Agri Business Consortium. A

total allocation of Rs.100 crore has been made for this purpose for 2017-18. This scheme will be scaled up in

the coming years to benefit 40 lakh farmers over the next five years. (htt.

pcms.tn.gov.in/sites/default/files/go/agri_e_ms_164_ap4_2017.pdf)

Objectives of a group

• To address production and marketing issues

• To develop 'self-help' approaches

• To provide pooled resources

• To allow members to exploit an economy of scale

• To provide a forum for training and information sharing

• To provide a focal point for technical and training activities

Activities of a group

• Conduct meetings

• Engage in information sharing (including networking with other groups)

• Receive technical training

• Conduct field trials

• Organise bulk selling and purchasing

• Develop market networks and make market assessments


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One of the examples for Commodity oriented Farmer Interest Groups (FIGs) are promoted by the Agriculture

Technology Management Agency (ATMA) at block/village level.

The Farmers` Clubs

Government of India launched “Vikas Volunteer Vahini (VVV)” programme on 5th November 1982 to

propagate the five principles of “Development through Credit”. The VVV programme was renamed as Farmers‟

Club Programme (FCP) in 2005 which are organised by rural branches of banks, NGOs and KVKs etc. with

support and financial assistance from NABARD for mutual benefit of banks and the farmers. NABARD has

promoted 1.48 lakh Farmers‟ Clubs as at the end of March 2016. The objective of the programme is

“Development through credit, technology transfer, awareness and capacity building”. The emphasis of the

programme is on increasing the income of the farmers by increasing the production & productivity by adopting

appropriate technology, good agricultural practices, and proper use of credit and marketing skills. Around 3051

new Farmers' Clubs have been sanctioned during 2016-17, as on 31.12.2016, taking the cumulative number of

Farmers' Clubs across the country to 1.51 lakh. Apart from facilitating farmers of the club villages in accessing

credit, extension services, technology and markets, the Farmers' Clubs acted as Self Help Promoting Institutions

(SHPIs) and Business Facilitators/Business Correspondents. NABARD had successfully implemented pilot

project on “Digitization of Farmer‟s Club data” in the selected 17 districts of seven states viz. Tamil Nadu,

Haryana, Gujarat, Andhra Pradesh, Telangana, Maharashtra and Odisha. The pilot is being upscaled to all India

level. Digitization of farmers‟ club would be helping for maintaining sustainability of farmers‟ club as well as

giving them access to various relevant IT services. These clubs are organised by rural branches of banks with

the support and financial assistance of NABARD for the mutual benefit of the banks concerned and rural people

to ensure development in the rural areas through credit, technology transfer, awareness and capacity-building.

(http://www.thehansindia.com/posts/index/Andhra-Pradesh/2016-07-24/NABARD-promotes-farmers-clubs-in-

a-big-way/244409)

The Study was conducted in Karnataka by Rani Nidhi et al.(year) to know the problems and benefits to the

agriculture farmers by forming the FPOs revealed that organic farming is not practiced in the locality, no

regular and authentic source of information to the farmers regarding market prices. The benefits after forming

as FPO‟s were per hectare production improved by 10 per cent by the end of the study ( months???). Minimum

20 per cent rise in net income of the FPO farmers.

Agricultural Marketing –A glance

(i) Agricultural Co-operative Marketing Societies: The agricultural cooperative marketing is generally

featured by a four-tiered structure: viz Primary marketing societies at the base level, District/regional

federations at the district level, State marketing federations at the State level and National Federation at the apex

level. The National Agricultural Co-operative Marketing Federation (NAFED) is the apex co-operative

marketing organization in India. Under the cooperative marketing society the members of the society agree to

sell their surplus produce to the society. As soon as the members supply the produce to the society, an advance

is provided to carry on with their agricultural operations. The society collects the produce of all the members

and also of the non-members of the village, often processes the produce and then disposes it. The society

decides the timing of sale depending upon market conditions of the commodity. If it is felt that the present price

is unfavourable and in future the price would rise then society may decide to stock the output and sell it in the

future. Generally, the society covers number of villages and thus tends to be effective and successful.

(ii) Regulated Markets: The regulated markets have been organized in most of the States to facilitate trading

in an orderly manner in specified commodities at specified places at the least margin under the respective State

Agricultural Produce Marketing Regulations Acts.

(iii)Public Trading: The objective of Public is stabilization of prices at levels that are regarded as

remunerative to producers and reasonable to consumers.

(iv) Future Trading: Future trading has also been allowed to protect the market participants from the risk

arising out of adverse price fluctuations. There is a three-tier regulatory structure for conduct of futures trading.

At the base level, there are recognized/ registered commodity associations/ exchanges. At the middle level,

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there is Forward Markets Commission (FMC), which regulates the functioning of commodity exchanges and

approves their constitution and byelaws. The Department of Consumer Affairs, Ministry of Consumer Affairs,

Food and Public Distribution, Government of India is at the top level, which oversees the overall functioning of

the forward and futures markets.

Problems facing Agriculture Marketing in India

Poor Warehousing Facilities

Poor Transportation Facilities

Problem of Distress Selling

Infrastructure Bottlenecks and Corruption in Mandis

Lack of awareness of future market

Lack of agro-Processing at large scale

KEY SUGGESTIONS AND CONCLUSIONS

While dairy co-operatives have traditionally played an important role in procuring milk, processing and

marketing alternative organisational models are continually being explored that may more closely fit the needs

of the new market and production circumstances. The goal of sustainability marketing strategy is changed to

attain competitive advantage through a position that is desirable, different, and defensible (Obermiller et al.,

2008). But practically, it is not easy to design these kinds of marketing strategies because of the related issues

and challenges. In addition to this, according to sustainability principles there is need to conserve the resources

and to consume less, while on the other hand, the principle of marketing says to sell more, which means more

production, hence more consumption of resources (Jones et al., 2008). Therefore, the need is to strike a balance

between the two, which means that the strategy should be formulated in such a way, so that profits can still be

earned even after reduced impact on environment and society. It can only happen when companies and their

respective stakeholders will realize the importance of integrating sustainability in business practices. Hence, the

new era of marketing strategy has already begun with integration sustainability issues. It is time for companies

to integrate sustainability in goat marketing strategy to represent the interest of their members and have the

potential to articulate their need for agricultural services.

Some key issues and potential strategies to be considered are:

The goat farmers could market their produce without any hassles.

Requirements of the small holders should be met.

Strengthening and sensitising the goat farmers‟ through training on best practices for enhanced goat

production in sustainable manner.

Ensuring availability and accessibility to goat husbandry services for sustainable goat production and

enhancing the cluster competitiveness.

Facilitating access of the producer groups to fair and remunerative markets by avoiding middle men


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Goat Farmers Producer Organisations

Objectives of PO’s (Goat farmers)

• To provide a common platform to bring the producers and consumers together so that the producers can get a

better price

• To develop 'self-help' approaches

• To provide pooled resources

• To allow members to exploit an economy of scale

• To provide a forum for information sharing

•.To address production and marketing issues

Activities of a group

• Engage in information sharing (including networking with other groups)

• Organise bulk selling and purchasing of animals at mandal and district level

• Develop market networks and make market assessments

• Slaughter house at state level for the quality check of live animal as well as of its meat for sale to different

states as well as to different countries.

Suggested Measures to improve Goat Marketing by Formation of interest groups in goat marketing:

1. Grading facilities for goats: The grading should be carried out based on health of the animal, breed,

consumers‟ preference and quality. The graded product should be stamped command better prices in the market.

Representatives of all the goat farmers (Small & Marginal) of the village and nearby villlages

forming Farmers Interest Groups (15-20 farmers) at Mandal level – (providing updated

information regarding the market prices and making arrangements for the regional markets

weekly as per the instruction given by the representatives at the district level).

Representatives from different mandals can form a group at district level. (providing updated

information regarding the market prices and arranging for the regional markets weekly once or

twice in a particular mandal where the producers and consumers can come together on a single

platform).

Representatives of each district forming a group (Producers Organisation) at state level. These

PO‟s at state level should maintain a slaughter house where they can produce the quality meat

from the live goat for sale within the state or to different states and also for exporting the live

goat or its quality meat to different countries.

Producers Organisations of different states representing the goat farmers can form a board at

national level to help these Producers Organisation to enter the export markets there by

linking these small and marginal goat farmers to the international markets directly or

indirectly.


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2. Provision of Warehousing Facilities: The warehousing provision can be made to prevent distress sale by

the goat farmers during exigencies.

3. Marketing Surveys: The market survey of goat marketing should be conducted for the benefit of farmers.

The prices of goats and demand of goat in major markets can be widely published and disseminated via all sorts

of ICTs techniques.

4. Promoting Direct Marketing: Making Available Credit for Marketing

6. Setting up of Special Boards: The Government has set up number of special commodities boards like rice,

pulses, jute etc to formulate policies for these commodities to improve exports of agricultural commodities.

Likewise, special boards can be formed for goat production also.

7. Setting up of Regulated Markets: Similar to that of Agricultural Produce Market Act, goat marketing

should also rest with the committees on which different interests are represented so that cultivators get fair price

for their produce.

References:

1. http://www.thehansindia.com/posts/index/Andhra-Pradesh/2016-07-24/NABARD-promotes-farmers-

clubs-in-a-big-way/244409

2. httpcms.tn.gov.in/sites/default/files/go/agri_e_ms_164_ap4_2017.pdf

3. ://www.nabard.org/auth/writereaddata/File/Farmers%27%20Club%20Programme.pdf

4. Andres EF Salinas EM and Vallejo JM (2009) Factors affecting corporate environmental strategy in

Spanish industrial firms. Business Strategy and the Environment 18(8): 500-514

5. Slater SF and Olson EM (2001) Marketing‟s contribution to the implementation of strategy: an empirical

analysis. StrategicManagement Journal 22(11): 1055-1067

6. V. Padmakumar, Sapna Jarial Marketing, Production, Constraints and Opportunities in Rural to Urban

Goat Value Chain in Uttarakhand, India, Tropentag, September 17-19, 2013, Stuttgart-Hohenheim

“Agricultural development within the rural-urban continuum” Zinkhan GM and Pereira A (1994) An

overview of marketing strategy and planning. International Journal of Research in Marketing 11(3):

185-218

7. Jones P Hill CC and Comfort D (2008) Viewpoint: marketing and sustainability. Marketing Intelligence

and Planning 26(2): 123-130

8. Obermiller C Burke C and Atwood A (2008) Sustainable business as marketing strategy. Innovative

Marketing 4(3): 20-27.

9. Available at: http://www.businessperspectives.org/journals_free/im/2008/im

_en_2008_3_Obermiller.pdf; (accessed 1December, 2010)

10. Vinod Kumara*, Zillur Rahmanb, A. A. Kazmic and Praveen Goyald Evolution of sustainability as

marketing strategy: Beginning of new era. Procedia - Social and Behavioral Sciences 37 (2012) 482 –

489




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A PRACTICAL APPROACH TO DETERMINE THE AWARENESS TOWARDS

GREEN COMPUTING AMONG THE COLLEGE STUDENTS IN TIRUNELVELI

*S.T.Suvaitharan, B.E., M.B.A., LL.B., & **Dr.N.Rajalingam, B.E., M.B.A., Ph.D.,

*Full Time Ph.D., Research Scholar, Department of Management Studies, Manonmaniam Sundaranar University,

Tirunelveli-627012.

**Associate Professor, Department of Management Studies, Manonmaniam Sundaranar University,

Tirunelveli-627012.

ABSTRACT

The modernly world is evolving constantly and the world has entered into the digital era. Technology is dominating the

market today. Most of the manual works which were done by humans are replaced with electronic devices and Computers. These

Computers or devices are disposed off after the end of its life. Such electronic waste is known as “e-waste”. The e-waste contains

hazardous elements such as lead, mercury, arsenic, cadmium, selenium etc, which are hazardous to nature and create serious

pollution upon disposal.

India has emerged as 5th

largest electronic waste producer in the world (“India”, 2016). The government, public sector

companies and private sector companies generate nearly 75% of electronic wastes with the contribution of individual house hold

being only 16% (“Mobiles”, 2016). The Computer manufactures invest a huge amount of money in designing energy efficient

devices and reduce the use of dangerous materials in manufacturing the devices. Hence to achieve the sustainable development the

concept of green computing has emerged.

Green computing is only possible with the efficient use and recycling of the computers and allied devices. Consumer

awareness plays a major role in bringing energy efficient systems.

The Green computing is the study and practice of designing, engineering, manufacturing and disposal of computers and

associated sub products in a way to reduce their environmental impact.

In this research, the Researcher made an attempt to study the awareness towards Green Computing among the College

Students in Tirunelveli.

Key words: Green computing, electronic wastes, energy efficient devices.

.Introduction

Green computing is the study and practice of environmentally sustainable computing. Computers and Electronic

devices play a major part in the daily life of human beings. So it becomes essential to regulate the use of computers and

dispose electronic wastes safely to reduce their environmental impact. Hence the concept of green computing has emerged.

The study and practice of designing, manufacturing, using, and disposing of computers, servers, and associated

subsystems, such as monitors, printers, storage devices, and networking and communications systems, efficiently and effectively

with minimal or no impact on the environment.


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The goals of green computing are similar to green

chemistry; reduce the use of hazardous materials, maximize energy

efficiency during the product's lifetime, and promote the recyclability

or biodegradability of defunct products and factory waste. The

effective use of Green Computing saves money and energy.

The Computers or devices are disposed off after the end of

its life. Such electronic waste is known as “e-waste”. The e-waste

contains hazardous elements such as lead, mercury, arsenic,

cadmium, selenium etc, which are hazardous to nature and create

serious pollution upon disposal

The green computing practices come into prominence in 1992, when

the US Environmental protection agency (EPA) launched energy star

program followed by Australia, New Zealand, Canada, Japan and

Europe. The electronic devices with the energy star logo generally

consume 20 to 30 percent less energy than required by the federal

standards (“Yuh-Shyan”,2011).

India has emerged as 5th

largest electronic waste producer in the world

(“India”, 2016). The government, public sector companies and private sector companies generate nearly 75% of electronic wastes

with the contribution of individual house hold being only 16% (“Mobiles”, 2016). Ministry of Electronics and Information

Technology (MEITY) deals with environmentally sustainable computing to achieve energy efficiency and reduce carbon footprint

in every walk of life by offering innovative solutions. The Department of Electronics and Information Technology (DEITY) has

initiated development of technologies and deployable solutions for smart buildings and low carbon emission, smart cities using

Internet of Things (IOT) (“Green”, meity.gov.in).

The green computer would not miraculously fall from the sky one day. It would be a product of years of improvement

and awareness. Awareness and innovation plays a major role in the implementation of Green Computing.

Review of Literature

Sivasangari Selyamani and Norasnita Ahmad (2015) made a study on "Green Computing: The Overview of

Awareness, Practices and Responsibility among Students in Higher Education Institutes". The study was an attempt to measure

the awareness, practices and responsibility carried out by students towards green computing in institution of higher education.

A questionnaire was developed to determine the awareness, practices and responsibility toward the green computing between

IT and non-IT students. The results showed that the students have an average level of awareness about green computing. It is

concluded that the students everyday green computing practices are not satisfactory. It is suggested that there is a need for

green computing education to be integrated into the higher education curriculum to increase awareness while minimize the

harmful impact to the environment.

Bello Abdullahi Birchi (2015) made a study on “Assessing University Students’ Attitude toward Green Computing

Practices". A total of 700 students were randomly sampled and the data relating to attitude on green computing. Descriptive

statistics, independent-samples t-test and Principal Components Analysis (PCA) were used to analyze the data. Results show

that a majority (80.2%) of students were in agreement on the issue of going green. However, the result of the t-test shows that

female university students were more concern and have a significant positive attitude toward green environment compared to

their male counterpart.

Statement of the Problem

The manufacturing of computers requires a large amount of fossil fuels and chemicals. Computers contain heavy

metals like lead and toxic chemicals that pollute the soil and contaminate groundwater when dumped into landfills. Most

motherboard components use rare earth minerals and metals, including gold, silver and copper, so the E-waste components are

dipped into some solvents and acids to recover them from circuit boards, which releases harmful hazardous chemicals into the

air. Continuous usage of Computer increases carbon footprint and affects the environment. Hence Green computing practices

emerged for designing, manufacturing, using, and disposing of computers in an eco friendly manner. Today’s students are

using technology more than adults. The researcher found it essential to study the awareness towards Green computing among

the college students.

Objectives

The research is carried out with the following objectives among college students in Tirunelveli.

1. To access the knowledge of students about Green computing

2. To identify the Green computing practices of the students

Figure 1. Relationship between Green

Computing and its components

Green Computing

Green

Designin

g

Green Manufacturing

Green

use

Green

Disposal


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Research Methodology

The research is descriptive in nature. The researcher used primary data. The primary data was collected through

questionnaire. Total of 121 samples were approached through non probability convenience sampling method. Data were

collected by the researcher directly by meeting students. Percentage Analysis, Weighted Average Test were used to analyse the

data with the help of Microsoft Excel and SPSS.

Discussion

Data collected from 63 female students and 58 male students with a total of 121 Students were used in the analysis.

Table-1. The Number of Years the respondents were using the Computer

S.No Years Frequency Percent

1 Less than 1 year 16 13.2

2 1 year to 5 Years 66 54.5

3 5 year to 10 Years 19 15.7

4 More than 10 years 20 16.5

Total 121 100.0

From the above Table-1 it is inferred that 54.5% of the respondents are using Computers for 1 year to 5 years, 16.5%

of respondents are using computers for more than 10 years, 15.7% of the respondents are using computer for 5 years to 10

years, 13.2% of the respondents are using computer for less than 1 year.

Hence it is inferred that majority proportion of respondents are using Computers from 1 to 5 years.

Table-2. The Number of Hours the respondents were using the Computer in a day

S.No Hours Frequency Percent

1 Less than 1hour 55 45.5

2 1 to 5 hours 52 43.0

3 More than 5 hours 12 9.9

4 I do not use regularly 2 1.7

Total 121 100.0

From the above Table-2 it is inferred that 45.5% of respondents are using computer for less than 1 hour, followed by

43% of respondents are using computer for 1 to 5 hours in a day. 1.7% of respondents are not using computers regularly.

Hence it is inferred that majority proportion of respondents are using computers for less than 1 hour and 1 to 5 hours in

a day.

Table-3. The Respondents who own Computer or Laptop

S.No Computer/ Laptop Frequency Percent

1 1 82 67.8

2 2 26 21.5

3 3 3 2.5

4 More than 3 6 5.0

5 No, I don’t own any 4 3.3

Total 121 100.0

From the above Table-3 it is inferred that 67.58% of respondents own 1 computer/Laptop, 21.5% of respondents own 2

computers/Laptops. 3.3% of respondents do not own any computer/Laptop at all.


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Hence it is inferred that majority proportion of respondents own 1 computer/Laptop.

Table-4. Average Laptop uses 20% less energy than a desktop PC

S.No Laptop uses 20% less energy than a

desktop PC

Frequency Percent

1 True 64 52.9

2 I am not aware of it 51 42.1

3 False 6 5.0

Total 121 100.0

From the above Table-4 it is inferred that 52.9% of respondents answered true, followed by 42.1% of respondents who

are not aware of the fact that average Laptop uses 20% less energy than a desktop PC. 5% of respondents stated that statement

was false.

Hence it is inferred that majority proportion of respondents answered that, an average Laptop uses 20% less energy

than a desktop PC which is found to be true and correct.

Table-5. Power Management Mode opted when respondents leave the computer for a while

S.No Power Management Mode

opted Frequency Percent

1 Standby 24 19.8

2 Switch Off 59 48.8

3 Hibernate 21 17.4

4 Leave it as it is 17 14.0

Total 121 100.0

From the above Table-5 it is inferred that 48.8% of respondents switch off their computer when they leave the

computer for a while, followed by 19.8% of respondents put their computer to standby mode when they leave the computer for

a while. 14% of respondents leave their computer as it is, when they leave the computer for a while.

Hence it is inferred that that majority proportion of respondents switch off their computer when they leave the

computer for a while, which is right way to conserve energy. The next optimum power management mode is Hibernation

mode, but respondents had opted standby mode which is not an energy efficient mode, when compared to Hibernation mode.

Table-6. Definition of Green Computing according to respondents

S.No Green Computing Frequency Percent

.0 (No Response) 6 5.0

1 Minimizes energy and resource

consumption

40 33.1

2 Minimizes e-waste 28 23.1

3 Reduces carbon footprint 4 3.3

4 All of these 43 35.5

Total 121 100.0

From the above Table-6 it is inferred that 35.5% of respondents are answered all of these, 33.1% of respondents stated

that Green Computing deals with Minimizing energy and resource. 5% of respondents are did not give any response.

Hence it is inferred that majority proportion of respondents are aware that Green Computing deals with the use of

computers and related technologies in a way that Minimizes energy and resource consumption, Reduces carbon footprint and

Minimizes e-waste, which is correct.


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Table-7. The Printer which consumes less power

S.No Printer which consumes less

power

Frequency Percent

1 Inkjet printer 18 14.9


3 Laser printer 48 39.7

Total 121 100.0

From the above Table-7 it is inferred that 45.5% of respondents are not aware of the Power consumption of the

Printers, followed by 39.7% of respondents stated that Laser printer consumes less power than Inkjet printer. 14.9% of

respondents stated that Inkjet printer consumes less power than Laser printer, which was found to be correct.

Hence it is inferred that majority proportion of respondents are not aware of the Power consumption of the Printers,

where Inkjet printers consumes less energy than Laser printer.

Table-8. The Power Plan chosen by the Respondents

S.No Power Plan Frequency Percent

1 Balanced

29 24.0

2 Power saver

63 52.1

3 High performance

11 9.1


Total 121 100.0

From the above Table-8 it is inferred that 52.1% of respondents choose Power Saver plan in Power options, 24% of

respondents Choose Balanced Plan in Power options. 14.9% of respondents are not aware of Power options in their

Computer/Laptop.

Hence it is inferred that majority of respondents were aware of power options and use Power Saver Plan in their

Computer/Laptop, which is the correct option to conserve energy.

Table-9. Changing the existing Computer/Laptop

S.No Changing the existing Computer Frequency Percent

1 Once in two years 16 13.2

2 When old pc is worn-out 19 15.7

3 When new generation technology emerge 25 20.7

4 I will repair and reuse till I can 61 50.4

Total 121 100.0

From the above Table-9 it is inferred that 50.4% of respondents repair and reuse their computer till they can, 20.7% of

respondents change their Computer when new generation technology emerges. 13.2% of respondents change their Computer

once in two years.

Hence it is inferred that majority of respondents repair and reuse their computer till they can, which is the correct green

practice.

Table-10. Respondents Ranking on Power consumption of Monitors

S.No Monitors Weighted Average

1 Plasma Display 25.4

2 LED Display 33.1

3 CRT Display 30.5

4 LCD Display 32

Total 121


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From the above Table-10, 4 variables are analysed with weighted average method, it is inferred that the Power

consumption of LED Display was weighted as 33.1.

Hence it is inferred that majority of respondents weighted LED Display as the power consuming monitor compared to

Plasma, CRT and LCD Monitors, which is not correct. The actual ranking of power consumption of Monitors from High to

low are CRT Display, Plasma Display, LCD Display and LED Display respectively. CRT (Cathode Ray Tube) Display

consumes High power where as LED (Light Emitting Diode) consumes very less power when compare to CRT Display.

Findings

In this research the researcher investigated 121 respondents. Out of 121 respondents 52.1% of the respondents are

female and 47.9% of the respondents are male. 54.5% of the respondents are using Computers for 1 year to 5 years. 45.5% of

respondents are using computer for less than 1 hour, followed by 43% of respondents are using computer for 1 to 5 hours.

67.58% of respondents own 1 computer/Laptop. 52.9% of respondents answered that that an average Laptop uses 20% less

energy than a desktop PC, which is found to be true and correct.

48.8% of respondents switch off their computer when they leave the computer for a while, which is right way to

conserve energy. The optimum power management modes are listed respectively as Switch off, Hibernation, Standby, Leave it

as it is. 35.5% of respondents are aware of the definition of Green Computing. Green Computing deals with the use of

computers and related technologies in a way that Minimizes energy and resource consumption, Reduces carbon footprint and

Minimizes e-waste, which is correct. 45.5% of respondents are not aware of the Power consumption of the Printers. 52.1% of

respondents choose Power Saver plan in Power options, where Inkjet printers consumes less energy than Laser printer.

50.4% of respondents repair and reuse their computer till they can, which is the correct green practice. Ranking made

by the respondents inferred that Power consumption of LED Display was weighted as 33.1, which is not correct. The actual

rankings of power consumption of Monitors from High to low are CRT Display, Plasma Display, LCD Display and LED

Display respectively. CRT (Cathode Ray Tube) Display consumes High power where as LED (Light Emitting Diode)

consumes very less power when compare to CRT Display.

Conclusion

By this research the researcher could understand that the student’s mindset towards awareness on Green Computing.

Many respondents have average knowledge about Power saving features. The Respondents lack in updating knowledge about

the latest technology, as it could be observed that majority of the respondents found it difficult to understand the different

varieties of Printers, Monitors and their power consumption.

Suggestion

Adequate education on new technology has to be given to the students for a sustainable development.

Reusing the Ink Cartridges would help in sustainable development. Each Printer Cartridge/Toner throw away takes

around 1000 years to decompose (Environmental”, www.agreenerrefill.com)

Updating to new energy efficient computers like Intel Compute stick, Zonbu Mini Desktop, Intel NUC (Next Unit of

Computing), would contribute to an eco friendly Computing.

The computers in working condition can be donated to any school or any organization working in the field of

education, so that e wastes can be reduced

Government has to frame policies regarding the Green Computing. Whereas Ministry of Electronics and Information

Technology (MEITY) is already working on a draft to regulate new electronics manufacturing policy (“Government”,

2017).

References

Journals

1. Bello Abdullahi Birchi. (March 2015). Assessing University Students’ Attitude toward Green Computing Practices.

Proceedings of 2015 International Conference on Future Computational Technologies. 27-33.

2. Dhanam.L, (March 2014) Green Computing For System Efficiency and Optimization. International Journal of

Innovative Research in Computer and Communication Engineering. 1-6

3. Sivasangari Selyamani, (December 2015). Green Computing: The Overview of Awareness, Practices and

Responsibility Among Students in Higher Education Institutes. Journal of Information Systems Research and

Innovation. 28-36.


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Articles

1. Government to hold talks on new electronics policy. (18 September 2017). Retrieved from

https://economictimes.indiatimes.com/news/economy/policy/government-to-hold-talks-on-new-electronics-

policy/articleshow/60724763.cms [11 November 2017]

2. India fifth largest producer of e-waste in world: study.(25 May 2016). The Times of India. Retrieved from

https://timesofindia.indiatimes.com/home/environment/India-fifth-largest-producer-of-e-waste-in-world-

study/articleshow/52434848.cms [11 November 2017].

3. India fifth largest producer of e-waste: study. The Hindu. (25 May 2016). Retrieved from

http://www.thehindu.com/sci-tech/energy-and-environment/India-fifth-largest-producer-of-e-waste-

study/article14340415.ece [11 November 2017].

4. Mobiles part of 'most dangerous' e-waste as India turns litterbug. (04 June 2016). The Economic Times Retrieved from

https://economictimes.indiatimes.com/tech/hardware/mobiles-part-of-most-dangerous-e-waste-as-india-turns-

litterbug/articleshow/52580249.cms [11 November 2017]

Websites

1. Environmental Benefits: Reuse & Recycling Ink and Toner Cartridges. Retrieved from

http://www.agreenerrefill.com/The-Benefits-of-Recycling. [11 November 2017]

2. Gopi Chand. (24 July 2014). General Awareness About Green Computing. Retrieved from http://www.c-

sharpcorner.com/UploadFile/9a9e6f/general-awareness-about-green-computing/ [12 November 2017]

3. Green computing. Ministry of Electronics & Information Technology. Retrieved from

http://meity.gov.in/content/green-computing [11 November 2017]

4. San Murugesan. (April 2013). How green is your IT? Retrieved from:

https://www.computer.org/portal/web/computingnow/archive/april2013 [11 November 2017]

5. Yuh-Shyan Chen, Chih-Shun Hsu. Green Computing. Retrieved from

http://www.csie.ntpu.edu.tw/~yschen/course/2011-1/Green-ICT/Chapter%2011.pdf [15 November 2017]


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92

PEOPLES’ PERCEPTION ON RELATIONSHIP MANAGEMENT IN

E-GOVERNANCE CENTRES IN KOVILPATTI AND ITS ENVIRONS

*Mr.R.Thanga Ganesh (F9897) & *Dr.K.Pushpa Veni, M.B.A., P.G.D.C.A.,Ph.D.,

*Ph.D Research Scholar,VHNSN College (Autonomous), Virudhunagar.

**Assistant Professor of Business Administration, VHNSN College (Autonomous), Virudhunagar.

ABSTRACT

E-governance is the services of existing government practice with a new technology. E-Governance generates a new

research domain in focusing every aspects of development in serving government services to the people. The Government directing

people to access excellent services for improve the people’s standard of living. Most of the government services are already

transformed into e-governance applications. In this paper the researcher analysed relationship management in e-governance centres

through one way anova and the multiple regression analysis. This study mainly focuses the “People’s perception on relationship

management in e-Governance centres in Kovilpatti and its environs”. Further it helps to find the areas of improvement under

relationship management in e-Governance centre in kovilpatti and its environs.

Key words: E-governance, perception, relationship management, technological services.

I) INTRODUCTION

E-governance refers to the aspects of involved activities by information and service distribution towards the people, the

business and the government. The Government of India established a Ministry of Information Technology in the year 1999 provides

imputes to the e-governance establishment. It is followed by the establishment of Information Technology Act 2000 which

provides legal validation to ICT based governance. The National e-governance plan i.e. a historical landmark in the way of e-

governance adopted by the central government in the year 2006.The development of the digital services will reflect new dimensions of

impact in the society. It focuses on the relationship between the people and the e-governance employee in the e-governance centre.

Even in public administration offices need the outline of a new approach to the management of customer relationships focusing

mainly on the building people satisfaction on performing services. The effect on customer satisfaction, customer retention, will bring

satisfaction on e-governance. The relation between citizens with the government starts with the birth and ends with the death of a

citizen.

“Transparency is key to good governance and e-governance is the only effective way to eliminate corruption”- Indian

Southern Railways (Vigilance Awareness week-30.10.2017 to 04.11.2017).

E-Governance:

Dr. A. P. J. Abdul Kalam visualize e-Governance as “A transparent, smart system of governance with seamless and secure

and authentic flow of information that croses inter-departmental barriers and provides fair and unbiased service to the citizens”. The e-

Governance grid will ensure transparency in government services, reaching all people uniformly, without any dilution of the quantum

and the quality of services.


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II) LITERATURE REVIEW

International status

N. S. Kalsi, Ravi Kiran and S. C. Vaidya (2009) in their research article have attempted the changing economic and

governance scenario demands a greater partnership between various major players in the society. Governance shall be a collaborative

approach and focus on results not on process. Professionalism and new ways of thinking is must for marching towards good

governance. The future is poised on how efforts can sustain momentum and meet the load of increasing expectations and demand;

how governments are able to learn from each other and leapfrog; how and if the citizens can influence the face of e-governance.

National status

Gian Chand (2014) in his thesis “E-Governance in Haryana: Measures and Effectiveness” highlights the citizen-state

relationships in e-Governance will ensure good governance and citizen centric governance in the country. The efficiency, economy

and effectiveness emphasized in public administration and the quest to institutionalize ensure accountability, objectivity, equity and

transparency is possible through e-governance alone. E-Governance project is considered the most significant one as that is not in

close proximity to the citizens but also a platform for delivering regulatory, welfare and development services to them.

State level

P. Kubendran (2009) in his thesis “E-Governance In Madurai City Municipal Corporation” have been concluded as

Majority of the respondents of the officials, councilors and the public said that they did not know how to operate computers and to

make use of the facilities available through internet on structure of Municipal Corporation and queries. Majority of the respondents of

the officials, councilors and the public felt that information provided in Tamil language in internet could help them to make use of the

facilities available through internet on structure of municipal corporation and queries.

Statement of the problem

Literate and illiterate people come from both the urban and rural areas to the e-governance centre for their

different purposes of applications. The problem insists in e-governance centre arises from the people‟s perception about

technical work, over workload, scarcity of technical employees, lack of communication, privacy of data maintenance, etc... So, the

researcher wants to analyse the effectiveness of the relationship management in the e-governance centres.

Need of the Study

Technical information and knowledge is mostly needed for each and every one to survive in the world today. To share this

information the relationship management is must. Information and service delivery to public is a key task in a democratic country like

India. The people need a representative to guide their activites to fulfill their needs in e-governance centre. The research implies the

need of relationship management among the people and the e-governance centre employees in kovilpatti and its environs. The study

helps to aware about relationship management between the people and e-governance centre employees. So the researcher finds the

significance of relationship management in the e-governance centre for the study.

Objectives of the Study

1) To study the functioning of e-Governance centre‟s in Kovilpatti and its environs.

2) To study the peoples‟ perception of relationship management in e-Governance centres in Kovilpatti and its environs.

3) To suggest measures for building good relationship mangement in e-governance centres in the Kovilpatti environs.

Scope of the Study

The study will confine the current status of e-Governance in kovilpatti and its environs. The present study has focused on

rural and urban people who residence in and around kovilpatti. In order to describe the relationship management between the people

and the e-Governance centre employees, this paper gives a description about how customer relationship management functionality can

be used at different steps in providing government schemes through e-Governance centres. The present study mainly

confined to identify the people‟s perception about relationship management practiced, adopted by the e-governance centre employees

in kovilpatti and its environs.

III) RESEARCH METHODOLOGY

A study was conducted for three months from July to September, 2017 in the study region. The study mainly depends on

primary data which were collected through a well-designed questionnaire. The convenience sampling method was applied for the

selection of 75 samples in kovilpatti and its environs. One way Anova and Multiple regression analysis are used to analyze the survey

data.


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IV) ANALYSIS AND INTERPRETATION OF DATA

i) Hypothesis Testing :-One way Anova

The one way Anova is used to determine whether there is any significant difference between the means of a dependent

variable for three or more unrelated groups of an independent variable.

1) Ho:- There is no significant association between the respondents‟ gender and privacy of data maintenance in e-Governance centre.

Table: 1.1 One way Anova

Particulars

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

Within Groups

Total

2.944

14.336

17.280

3

71

74

0.981

0.202

4.860

0.004

Test result: The p-value is 0.004 and it is less than 0.05 (5% level of significance). Therefore, we reject null hypothesis and

conclude that there is significant association between the respondents‟ gender and privacy of data maintenance in e-Governance

centre.

2) Ho:- There is no significant association between the respondents‟ gender and opinion about untrained employees in e-Governance

centre.

Table: 1.2 One way Anova

Particulars

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

Within Groups

Total

2.678

14.602

17.280

4

70

74

0.669

0.209

3.209

0.018

Test result: The p-value is 0.018 and it is less than 0.05 (5% level of significance). Therefore, we reject null hypothesis and

conclude that there is significant association between the respondents‟ gender and opinion about untrained employees in e-Governance

centre.

ii) Multiple Regression Analysis

Multiple regression analysis is the widely used analytical models of association prominent in market research. Multiple

regression analysis attempts to study the relationship between dependent variable and a set of independent variables. The linear

equation used for a regression analysis is

Y = B0 + B1 X1 + B2 X2 + B3 X3 ………………………..

Where Y is the predicted score, X1 is the score on the first predictor variable, X2 is the score on the second, etc. Bo is a

constant. B1, B2, B3 ……. are the regression coefficients, and these coefficients gives the estimated change in the dependent variable

associated with a unit change in the corresponding independent variable, with the condition that other independent variables remains

constant.

Multiple regression analysis is between the gender with the positive and negative variables such as neat approach, privacy of

data, attention to illterate, employees keep promise, courteous, serving needs, reasonable charges, customer confidence, refusing

application, scarcity of technical, not customer oriented, untrained employee, lack of communication.

Table:2.1 Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the

Estimate

1 0.517 0.268 0.112 0.45544

a. Predictors: (constant), Employees‟ neat approach, serving the needs and wants of applicants, reasonable charges for

application work, employees keep their promises, privacy of data maintenance, courteous, customer confidence, attention to


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95

illiterate people, e-governance is not customer oriented, refusing application due to workload, scarcity of technical labour,

untrained employees in e-governance centre, lack of effective communication between the applicants and the employees.

The multiple correlation coefficient R = 0.517 indicates that there is a correlation between the gender and the

relationship management and the variables predicted by the regression model. The Adjusted R square value accounts for

11.2% of variance.

Table:2.2 ANOVAb

Model

Sum of Squares

Df

Mean square

F

Sig.

1 Regression

Residual

Total

4.627

12.653

17.280

13

61

74

0.356

0.207

1.716

0.080a

b. Dependent variable: Gender

ANOVA table provides the value with F-test (1.716) which accepts the null hypothesis at 0.080 significant level.

Table:2.3 Coefficientsa

Model

Unstandardized

Coefficients

Standardized

coefficient

t

Sig. B Std. Error Beta

1 (constant)

Employees‟ neat approach

Serving the needs and wants of applicants

Reasonable charges for application work

Employees keep their promises

Privacy of data maintenance

Courteous

Peoples‟ confidence

Attention to illiterate people

E-Governance is not customer oriented

Refusing application due to workload

Scarcity of technical labour

Untrained employees

Lack of effective communication

2.222

0.038

0.113

-0.069

0.116

0.230

-0.190

0.255

-0.168

-0.034

-0.060

-0.127

0.195

-0.281

0.781

0.131

0.135

0.114

0.127

0.114

0.148

0.148

0.117

0.069

0.107

0.079

0.112

0.117

0

0.037

0.117

-0.083

0.120

0.322

-0.196

0.265

-0.183

-0.065

-0.077

-0.211

0.319

-0.389

2.846

0.287

0.839

-0.609

0.909

2.023

-1.286

1.722

-1.432

-0.491

-0.556

-1.600

1.736

-2.405

0.006

0.775

0.405

0.545

0.367

0.047

0.203

0.090

0.157

0.625

0.580

0.115

0.088

0.019

a. Dependent variable: gender

Interpretation

Positive correlation The positive variables such as „Employees‟ neat approach‟, „Serving the needs and wants of

applicants‟, „Privacy of data maintenance‟, „Employees keep their promises‟, „Peoples‟ confidence‟ are positively correlated. And the

negative variable „Untrained employees‟ is also positively correlated.

Negative correlation The positive variables such as „Reasonable charges for application work‟, „Courteous‟, „Attention

to illiterate people‟ are negatively correlated. And the negative variable such as „E-Governance is not customer oriented‟, „Refusing

application due to workload‟, „Scarcity of technical labour‟, „Lack of effective communication‟ are negatively correlated.

Findings

The majority 64% of them are male respondents.

The majority 64% of the respondents are degree/diploma holders.

The majority 79% of the respondents aware about e-governance by self-awareness.

The majority 77% of the respondents visited e-governance centre for their own purpose.


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96

The majority 86.7% of the respondents visited e-governance centre for applying civic services. The majority 55% of the

respondents are highly satisfied with the using modern equipments in the e-governance centre.

The majority 51% of the respondents are highly satisfied with the employees use modern equipments in the e-governance

centre.

The majority 52% of the respondents are highly satisfied with the frequent power supply in the e-governance centre.

The majority 57% of the respondents are highly satisfied with the frequent network available in the e-governance centre.

The majority 49% of the respondents are satisfied with the application tracking in the e-governance centre.

The majority 65% of the respondents are highly satisfied with the paperless application in the e-governance centre.

The majority 59% of the respondents are highly satisfied with the SMS notification from the e-governance centre.

The majority 52% of the respondents are satisfied with the quickness in service delivery.

The majority 51% of the respondents are satisfied with the accuracy of service delivery by the e-governance centre.

The majority 51% of the respondents are highly satisfied with the reliability of the service provided in the e-governance

centre.

The majority 56% of the respondents are highly satisfied with the services receiving easily in the e-governance centre.

The majority 51% of the respondents are satisfied with monitoring services in the e-governance centre.

The majority of 52% of the respondents are satisfied in direct contact with the service provider in e-governance centre.

The majority 56% of the respondents are highly satisfied with the flexibility of time in requesting for various services in the

e-governance centre.

The majority 61% of the respondents are highly satisfied with the e-governance centre employees interested in solving

applicants‟ problem.

The majority 56% of the respondents are highly satisfied with the e-governance centre employees accepting suggestions.

The majority 55% of the respondents are highly satisfied with the number of visit reduced for a service in e-governance

centre.

The majority 55% of the respondents are highly satisfied with the service benefits received through e-governance centre.

The majority 63% of the respondents are satisfied with using toll free number for complaints about the services in e-

governance centre.

Chi- square

1) Ho:- There is significant association between the respondents‟ gender and privacy of data maintenance in e-Governance centre.

2) Ho:- There is significant association between the respondents‟ gender and opinion about untrained employees in e-Governance

centre.

Multiple Regression Analysis

The gender is positively correlated on „emlpoyees‟ behavior instill customer confidence‟ in relationship management of e-

governance service centres. The positive variables such as „Employees‟ neat approach‟, „Serving the needs and wants of applicants‟,

„Privacy of data maintenance‟, „Employees keep their promises‟, „Peoples‟ confidence‟ are positively correlated. And the negative

variable „Untrained employees‟ is also positively correlated. The positive variables such as „Reasonable charges for application work‟,

„Courteous‟, „Attention to illiterate people‟ are negatively correlated. And the negative variable such as „E-Governance is not

customer oriented‟, „Refusing application due to workload‟, „Scarcity of technical labour‟, „Lack of effective communication‟ are

negatively correlated.

Suggestions

1) The respondents opined their high satisfaction with the e-governance centre employees interested in solving applicants‟

problem, accepting suggestions and the service benefits received through e-governance centre. So, it results the better

relationship management between the people and the e-governance centre emlpoyees in kovilpatti and its environs. But the

junior employees need effective training in their working area.

2) Some of the positive variable also results the negative correlation. So, the e-governance employees must concentrate on

courteous, attention to illiterate people and reasonable charges for the application work.

3) The negative variables gain the negative correlation. It results the smooth functioning of e-governance centres in kovilpatti

and its environs.

Conclusion

The relationship between government and the people should realize its significance in relevant interactions with the concern

departments through e-Governance. The people feel democratic in e-participation through e-Governance. The level of relationship

management wins on people‟s perception will generate the next step for e-literacy in policy making. The people adopt e-governance

easily and expecting good governance for the bright future of India.


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References:

1) Abdul Kalam. A. P. J,( 2014) Governance for growth in India, Rupa Publications India Pvt. Ltd, New Delhi, ISBN-978-81-

291-3260-4

2) E-governance Initiatives - Encyclopedia of Government of India.htm - website

3) Gian Chand, (2014) E-Governance In Haryana: Measures And Effectiveness, Thesis of Doctor of Philosophy in Public

Administration, Kurukshetra university, Kurukshetra.

4) Kalsi,N.S. Ravi Kiran.Vaidya,S.C. (2009). Effective e-Governance for Good Governance in India. International Review of

Business Research Papers ,Vol.5 (No. 1). Page 212‐229.

5) Kubendran.p,( 2009) E-Governance In Madurai City Municipal Corporation,Thesis of Doctor of Philosophy in Public

Administration, Madurai Kamaraj University, Madurai.

6) Sinha. R. P, (2006) E-Governance in India: Initiatives & Issues, Concept Publishing Company, New Delhi, ISBN-81-

8069-311-2


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ANTECEDENTS OF GREEN BRAND EQUITY: AN EMPIRICAL APPROACH

*S.Vijay MallikRaj,** M.R. Karthikeyan & ***Dr.PC.Sekar

*Research Scholar, Doms, Madurai Kamaraj University

**Research Scholar, Bharathiar University

***Professor (Retd), Doms, Madurai Kamaraj University

EXTENDED ABSTRACT

Introduction:

Recent studies have shown a stable growth regarding environmental concerns along with the pro-environmental attitudes among

the consumers. Even though environmental awareness in Indian consumers is observed in the literature, their purchase behaviour

towards green products is not clearly researched and reported. Very recently, society has steadily increased its awareness of

environmental issues, largely as a result of the high levels of environmental pollution caused by industrial manufacturing around

the world (Chen, 2008). Reaesearh shows that any marketing effort will be positively related to brand equity when it leads to a

more favourable behavioural response to the focal product than to the equivalent unbranded product. As proposed in the present

conceptual framework, managerial efforts manifested in controllable marketing actions are related to brand equity. Therefore, to

create, to manage, and to exploit brand equity, the relationships of marketing efforts to the dimensions of brand equity must be

determined. In these study consumers’ perceptions of five selected marketing mix elements: price, product, place and promotion

were chosen. The identified variables do not encompass all types of marketing efforts but are representative enough to

demonstrate the relationships between marketing efforts and the formation of brand equity. So, the purpose of this paper is to

study the selected green marketing mix affecting consumers’ green brand equity in Madurai city.

Statement of problem:

Indian consumers‟ knowledge about green products, organic and recyclable brands, and green production processes is limited.

There is a considerable effort by government to protect environment. Pro-environmental awareness and concerns influence

consumers‟ attitude towards green products; however, consumers were not confident. Although earlier research works have made

an effort to explore the relevant issues of brand equity little effort was done towards environmental context. Therefore, this study

seeks to fill this research gap. An understanding of the relationships between green marketing mix loyalty, and green brand equity

is expected to have theoretical and practical implications for green brand equity and offer tangible benefits for green brand

management. By broadening brand equity research in an environmental dimension through an exploration of the linkages between

the five constructs this study makes an attempt to provide an evaluation of new concepts of green marketing in and green brand

equity. Any marketing action has the potential to affect brand equity because it represents the effect of accumulated marketing

investments into the brand. Researchers also suggest that marketing decisions and market conditions affect brand equity. For

example, Simon and Sullivan (1993) list advertising expenditures, sales force and marketing research expenditures, age of the

brand, advertising share, order of entry, and product portfolio as sources of brand equity.


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Objectives:

The purpose of this research is to elucidate the impact of green marketing mix variables (product, price, place and promotion) on

overall green consumer-based brand equity.

Review of Literature:

McDaniel and Rylander (1993), through their study coined the term green marketing in order to explain marketers‟ attempts to

build up strategies targeting the environmental consumer. Polonsky (1994) defines green marketing as: “Green or Environmental

Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants,

such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment”. Green

marketing is a wider concept which covers all marketing actions that are developed to kindle and to sustain consumers'

environmental friendly attitudes and behaviors (Jain and Kaur, 2 004). Chen and Chang (2012) identifies green marketing are

activities undertaken by the company where the company is concerned about environmental issues by providing products or

services that affect both the environment to create customer satisfaction and community. Kang, S., & Hur (2012) , defined „green

brand equity‟ as „a set of brand assets and liabilities about green commitments and environmental concerns linked to a brand that

enhance or detract from the value provided by a product or service‟. Brand equity embodies the preferences, attitudes, and

purchase behavior of customers for a brand (Yasin et al., 2007). Yoo, Donthu & Lee (2000) and Aghaei (2014) analyzed the

influence of the marketing mix elements on dimensions of brand equity namely, perceived brand quality, brand loyalty, brand

associations and brand awareness. Tan, Johnstone & Yang (2016) explain green products as goods that are recognized as being

environmentally-friendly. Leonidou, Katsikeas & Morgan (2013) explain the green pricing concept as, the practices that are

accountable for both the economic and environmental costs incurred during the production and marketing process, while serving

value to customers and profit to the firm Eneizan et al. (2016) states that green distribution relates to the selection of mediums

which produce less environmental pollution.

Green promotion refers to the action of advertising goods without creating a negative impact

on the environment. Green promotion can also specify the publicity of an environmentally friendly lifestyle without demonstrating

any product. Davari & Strutton (2014) reveal in their findings that all four marketing mix elements are related to brand loyalty.

Hypotheses:

Based on the review of existing literatures the research hypotheses developed for this study are as follows:

H1: Green Product is positively associated with Green Brand Equity

H2: Green Price is positively associated with Green Brand Equity

H3: Green Place is positively associated with Green Brand Equity

H4: Green Promotion is positively associated with Green Brand Equity

Methodology:

To empirically test the four hypotheses, a survey was conducted among consumers visiting selected organic retail shops in

Madurai city. In order to measure the relevant constructs, a cross-sectional survey design was used. Existing scales were used in

the questionnaire. The scales selected were English-based on a five point scale. A closed-ended questionnaire was designed as the

data collection method. A survey was carried out on a sample of 182 educated consumers. Structural equation modelling was used

to assess the predictive power of considered variables towards green brand equity.

Data analysis and Findings:

Structural equation modeling (SEM) is used to test the hypotheses based on the theoretical model. In order execute

the SEM analysis, the two-stage method recommended by Anderson and Gerbing (1988) was adopted .The analysis part includes

a preliminary confirmatory factor analysis with all the study variables resulting in satisfactory model fit. Then structural equation

modeling was used to test the stated hypotheses.


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Table 1: Confirmatory Factor Analysis Results

Items Construct Standardized

Loadings C.R. AVE

pdt1

Product

.764**

.832 .624 pdt2 .872**

pdt3 .727**

plc1

Place

.677**

.852 .591 plc2 .724**

plc3 .814**

plc4 .753**

price1

Price

.603**

.806 .587 price2 .884**

price3 .784**

promo1

Promotion

.722**

.803

.578

promo2 .835**

promo3 .718**

bequity1

Brand Equity

.849**

.927 .810 bequity2 .914**

bequity3 .934**

** Significant at 1 percent level

Table 2

Correlations of the constructs

product place bequity price promo

0.790

0.578 0.769

0.480 0.420 0.900

0.532 0.416 0.276 0.766

0.595 0.476 0.497 0.421 0.760

The number in diagonal is the square root of AVE.

Figure 1:

Structural model


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Table3: Results of the structural model

Dependent

Variables

Independent

Variables

Path

Coefficien

t

t value P value Result

Green Brand

Equity

Green Product .296 1.770 .077 Not

Supported

Green Place .447 2.068 .039* Supported

Green Price -.102 -.745 .456 Not

Supported

Green Promotion .454 2.933 .003* Supported

* Significant at 5 percent level

Table 4

Model fit measures

Measure Estimate Threshold Interpretation

CMIN 146.123 -- --

DF 93 -- --

CMIN/DF 1.571 Between 1 and 3 Terrible

GFI .915 >0.9 Acceptable

AGFI .876 >0.9 Acceptable

TLI .956 >0.9 Acceptable

CFI .966 >0.9 Acceptable

RMR .042 <0.08 Excellent

RMSEA .056 <0.06 Acceptable

The result of the structural equations test (Table 4) of the composite variables indicated that the hypothetical model achieved an

acceptable fit to the data, (χ2 /df = 1.571; GFI = .915; RMSEA = .056; AGFI = .876; TLI = .956; CFI = .966; RMR = .042), which

is above the cutoffs for good fit. Therefore, the model indicates a good predictor of this sample (Gaskin & Lim, 2016).

Test of statistic for parameter estimates is assessed by t value or critical ratio. It represents the parameter estimate divided by its

standard error. Critical ratio values which are larger than 2.58 proves that the path coefficients are statistically significant at level

p< .01. In addition to the positive fit indexes, significant standardized path coefficients of β=.447(p < 0.05) between Green place

and Green Brand Equity, β=.454 (p < 0.01) between Green promotion and Green Brand Equity which support the hypothesized

direct relations in this model.

In job satisfaction scale, fringe benefits (β=.80, p < 0.01), co-workers (β=.87, p < 0.01), communication (β=.83, p < 0.01),

working conditions (β=.81, p < 0.01) and nature of work (β=.82, p < 0.01) are the most significant predictors of overall job

satisfaction at 1 percent significant level. The higher the level of Green place and green promotion and higher the level of green

brand equity perceived by the respondents, Therefore, the statistical findings of the study demonstrate empirical support for 3rd &

4th hypotheses. Results indicate that Green promotion and Green place are positively related to Green brand equity. Further Green

promotion was found to be a better predictor of green brand equity.

Suggestions:

Enhance environmental awareness of consumers has encouraged marketing managers of green products to seek information

concerning environmentally friendly purchase behaviour of consumers. So, with regular improvement in the green consumer

research domain, new studies have concentrated on consumption based research works so that consumer behaviour of green

products can be observed. In this direction, this study has attempted to develop an understanding on consumers‟ perceptions of

green products in reducing the impact of their consumption patterns on the environment. Findings of this study indicate that Indian

consumers have an enhanced perception on promotion and place strategies which is exhibited in their green brand equity.

Managerial implications

The paper identifies key predictors of consumer based green brand equity, enabling practitioners to understand which factors

influence consumers in their decision making regarding green purchases. This knowledge will help marketing managers design

effective strategies to encourage green purchase behaviour among such consumers

References:

1. Chen, S. Y. & Chang, S.C. (2012) Enhance green purchase intention: the roles of green perceived value, green perceived

risk and green trust. Management Decision, 50, (3), 502520


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2. Davari, A, & Strutton, D 2014, 'Marketing mix strategies for closing the gap between green consumers' pro-

environmental beliefs and behaviors', Journal Of Strategic Marketing, 22, 7,pp. 563-586

3. Eneizan, B., Abd Wahab, K., Zainon, M., Obaid, T. (2016) Effects of Green Marketing Strategy on the Financial and

Non-Financial Performance of Firms: A conceptual paper, Arabian Journal of Business and Management Review, Vol. 5

(12), pp. 14-27

4. Jain, V. K., & Agarwal, S. (2017). Understanding Purchasing Behaviour Towards Environmentally Sustainable Products

Using Theory of Planned Behaviour : An StructuralEquation Modeling Approach, 19(8), 14–23.

http://doi.org/10.9790/487X- 1908011423

5. Jain,S . K. and G. Kaur: 2004, 'Green Marketing: An IndianP erspective',De cision31 (2), 168-209.

6. Kang, S., & Hur, W. M. (2012). Investigating the Antecedents of Green Brand Equity: A Sustainable Development

Perspective. Corporate Social Responsibility and Environmental Management, 19(5), 306–316.

http://doi.org/10.1002/csr.281

7. Khare, A. (2015). Antecedents to green buying behaviour: a study on consumers in an emerging economy. Marketing

Intelligence & Planning, 33(3), 309–329. http://doi.org/10.1108/MIP-05-2014-0083

8. Leonidou, C, Katsikeas, C, & Morgan, N 2013, ''Greening' the marketing mix: do firms do itand does it pay off?', Journal

Of The Academy Of Marketing Science, 41, 2, p. 151

9. McDaniel, S., & Rylander, D. (1993). Strategic Green Marketing. The Journal of Consumer Marketing, 10(3), 4-10

10. Polonsky, M.J., & Rosenberger, P.J. (2001). Reevaluating Green Marketing: A Strategic Approach. Business Horizons,

44(5), 21-30

11. Tan, L, Johnstone, M, & Yang, L 2016, 'Barriers to green consumption behaviours: The roles of consumers' green

perceptions', Australasian Marketing Journal (AMJ), 24, pp. 288-299

12. Yoo, B., Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix Elements and Brand Equity. Journal

of the Academy of Marketing Science, 28(2), 195–211. http://doi.org/10.1177/0092070300282002

13. Yatish Joshi Zillur Rahman , (2016),"Predictors of young consumer‟s green purchase behaviour", Management of

Environmental Quality: An International Journal, Vol. 27 Iss 4 pp. 452 – 472Yasin NM, Noor MN, Mohamad O. 2007.

Does image of country-of-origin matter to brand equity? The Journal of Product and Brand Management

http://doi.org/10.1002/csr.281


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E-RECRUITMENT AND SELECTION –A BIRD’S EYE VIEW

Mrs. K. Veena

Assistant Professor, Department of Management

Sree Dattha Institute of Engineering and Science

Sheriguda, Hyderabad-501510

ABSTRACT

The practice of online recruitment has increased dramatically over the past that is done online; the use of the recruitment process.

employer brand. Recruitment What exactly is e-recruitment? In essence, it is any recruitment hardcopy CVs or traipse between

agencies for face-to-face meetings. Indeed, the latest stats from theMany different organisations now recognise the power of online

recruitment. Likewise, it is popular among jobseekers, who no longer have to send British Market Research Bureau show that online

application is the favoured method for over 25 technology, namely the internet, to reach a wider pool of candidates and enhance

decade. The key drivers behind online recruitment are reducing costs per hire, accessing a broader range of percent of jobseekers.

Introduction- Recruitment

It is a process of identifying, screening, short listing and hiring potential resource for filling up the vacant positions in an organization.

It is a core function of Human Resource Management.

Recruitment is the process of choosing the right person for the right position and at the right time. Recruitment also refers to the

process of attracting, selecting, and appointing potential candidates to meet the organization’s resource requirements.

E recruitment:

The purpose of e-recruitment is to make the processes involved more efficient and effective, as well as less expensive. Online

recruitment can reach a larger pool of potential employees and facilitate the selection process.

The online promotion of an organization are available as standalone applications, product suites and services. A recruitment

management system is an integrated product suite or portal that streamlines and automates the processes involveas a desirable place to

work, through the corporate website or other venues, is one element of e-recruitment. E-recruitment software and systems is the

process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of

people. ... By selecting best candidate for the required job, the organization will get quality performance of employees.

E-selection

E-Selections the perfect online service bundle tool for workforce selection processes. E-selection instantly provides an accurate

picture of a candidate's fitness for filling a specific position, of your colleagues' strengths and weaknesses, and of their inherent

potential.

http://searchfinancialapplications.techtarget.com/definition/recruitment-management-system

http://searchfinancialapplications.techtarget.com/definition/recruitment-management-system


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Advantages of e-recruitment

There are a plethora of benefits to using online recruitment. These include:

1. Speeding up the hiring cycle Streamlining admin

2. Reducing recruitment costs, particularly costs per hire

3. Reaching a wider pool of talent

4. Reaching a niche pool of talent

5. Reaching an international audience

6. Promoting internal positions across various departments and locations

7. Presenting yourself as a company that is modern and savvy, which reinforces the employer brand and brand culture

8. Allowing candidates to apply for jobs 24 hours a day, 7 days a week

9. Allowing candidates to apply spontaneously

10. Allowing yourself to build a bank of suitable applicants for future job positions

Providing up to date and tailored information to certain segments of the marketplace

Online recruitment technology

Online recruitment isn’t just about applying for jobs online. Modern technology makes the entire application and selection process

easier than ever.

New technology can be used to:

Advertise job vacancies. This can be done on company websites, job sites, industry sites, and social sites.

Handle job applications. This includes dealing with e-mail enquiries, receiving e-mail applications and CVs, and building online

media application forms.

Select candidates. Online apps can be used to test and screen candidates, gather information, and allow applicants to upload or

send portfolios and documents.

Conduct video interviews. With the internet’s vast reach, you can expect applications from hundreds of miles away, especially if

applicants are planning to move cities. Online conferencing is an efficient way to check whether applicants are suitable.

Strengthen employer brand. Online recruitment is an easy way to characterise your company, making it attractive to potential

employees. It’s also a chance for you to outshine your competitors with innovative recruitment practices and quirky job ads.

Enhance relationships. Online recruitment is an opportunity to create personal relationships with the talent pool.

METHODS OF E- RECRUITMENT

More and more people are going online to look for jobs and background information on companies before job interviews, which

means that companies need to have the right social media infrastructure in place in order to meet those needs.

Forms of Online Promotion for Recruitment

An email/message list

Interested people sign up to hear about vacancies as and when they arise. This is an excellent, targeted way of getting out information

to those who have already stated an interest, however the recruitment market changes very quickly and an email/message list can be

out of date quickly.

Social media

Facebook, Twitter and so forth can be excellent tools for disseminating news about a job vacancy and providing a link to more

information. However, with the appropriate infrastructure in place in the form of 2,000– 5,000 followers as a minimum, any such

news is going to be slow to spread. Simply putting something on social media is not achieving anything at all unless it is disseminated

well by those followers have become a popular way of raising advertising revenue and are regularly promoted through social media.

Many need to be treated with caution however, as they are as keen to entice users to click on their external advertisements and links as

they are for them to click on their actual job vacancy advertisements


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Online jobs listings

There are now, with perhaps only a small exaggeration, nearly as many online lists of job vacancies as there are vacancies themselves.

They.

Website

For recruitment, the website is the ideal place to make available all the documentation and information prospective candidates need.

They can also be the place where applications are registered and forms are completed.

METHODS E-SELECTION

METHODS

: One of the popular and old-rooted ways to screen the applicants is the use of applications which are able to search into the resumes

uploaded or sent by the job seekers to find relevant key words which have been recognized and introduced to the application as the

most important indicators to judge about the consistency of applicant’s capabilities with the position. So these software generally

would be executed on the large pool of received resumes and screen them to a short list of candidates who are more eligible to take the

position due to the presence of some specific words inside their resumes. As it is clear this method can be seen as a pre-selection

process which feeds final decision about the screened applicants.

On the one hand this approach could be really fast since the applicants who do not have those words inside their resumes would be

excluded quickly and could be aware as soon as the application has been executed on data but on the other hand there are some

negative points that need to be considered. One of the earliest Identified pitfalls by Thornburg (1998) represents this method may lead

to select the candidates who know how this system works and try to include the relevant words inside their CVs which by no means

indicate their qualification for the position. As a result it may cause low performance and increased cost for the hiring company since

the desired employee has been selected based on the capability of using right words instead of actual qualifications.

Mohamed et al. (2002) worked on the validity and legality of this method and concluded except the previous pitfall the validity may

decrease due to two other reasons: (1) the words on which the company count may not be relevant to the job or the applicant may use

another type of similar words – could bring legal problems as well- (2) and lack of any guidelines or policy for determining the key

words by companies.

Online Testing: This method which could be used in parallel with collecting biological information from the applicants, based on type

of questions, would bring different implications: asses KSAOs which measure the ability of the applicant, assess critical thinking or

decision making skills or self-assessment of personality to find if the applicant’s traits are consistent with organizational culture or not

(Stone et al., 2006) and any other kinds of tests which could be structured according to the needs of the organization.

Like previous method the feedback on test assessment could be immediate (Bodea et al, 2003) and as a result the large pool of

applicants can be reduced to the small amount of potential candidates who get the highest scores or fit more within the context. So

generally it can be used as a pre-selection approach to find the best pool of candidates like previous method. It also represents an

objective way to assess job seekers by disregarding the race, gender or age (satam, 2012). But the most important pitfall in this method

is related to the applicant’s honesty in completing the test as Chapman and Webster (2003) indicate. How the company knows who did

the test and how? This question brings a lot of uncertainty in the validity of this method.

It has been considered by Bartram (2000) comprehensively through classifying issues related to internet assessment of applicants as

security, confidentiality, authentication (e.g. how does one ensure that the person taking the test is the person they say they are?),

control over test conditions, control over practice and equality of access (to internet). On each of these classes there are questions

which would come up as a result of doing assessment online and Bartram tried to propose a solution for each to make them good

practices.

Online Interview: Regarding the rapid development of different kinds of media to create a live interaction among people around the

world with lowest possible costs and in many cases even without any costs (e.g. Skype video call) have attracted a lot of organizations

to consider it as a powerful medium for selection through watching their potential employees, speak to them and lesson to their ideas


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and above all to observe the way they demonstrate themselves which is really important in some industries and for some specific

positions by internet even being far as long as a continent. Actually the only component which seems to be missing in comparison

with face-to-face interviews: is the touch; is it true? Let’s see. Also it is good to be said that this method would not be applied alone

as a single way of selection since it is not possible and efficient to have interview with all the applicants applied for the position. So

this method could be considered as a final selection approach which could be used after reaching a best potential pool of candidates

through two previous methods (KWS and Online Testing).

Bartram (2000) describes video-conferencing (VC) for interview as a halfway house between traditional telephone interview and the

‘live’ face-to-face (FTF) interview which cause cost reduction for employer and time saving for applicant thanks to the cheap attached

video-camera on PCs nowadays.

In a study by Guchait candidates of hospitality jobs have been asked about their experiences with video interviews. The positive side

votes for comfort since the applicant can do it from home and time saving. However it is not as sweet as it seems since a significant

portion of people still seeks for social interactions. So the negative side of the story emphasizes on impersonal aspects of this method

like awkward feeling of interacting with a computer, not being able to realistically demonstrate oneself or the inability of interviewer

to observe the candidate’s mannerisms.

As a response to the previous question about the only difference between VC and FTF method (touch), Chapman and Rowe (2003)

examined this method more technically and noted more shortages as eliminating the possibility to observe nonverbal behaviors since

usually mid-chest up is displayed, difficulty in determining eye contact due to low resolution and inability to speak for both parties at

the same time because of a single audio channel. So it is not only about handshaking!

GENERAL OPPORTUNITIES AND THREATS

Regardless of the opportunities and threats which may come up as a result of using a specific method for e-selection process,

companies may generally benefit or lose by relying on technology as an authentic tool to decide about the future workforce:

Potential to reduce adverse impact for protected groups of people or minorities is one of the benefits proposed by Chapman and

Webster (2003) since the applications would not be sensitive to the special race, age, sex or any other demographical factors. In a

study by McManus and Ferguson (2003) it was proved that some minorities like African Americans are more satisfied by online

selection tools in comparison with traditional approaches which may be influenced by their ethnical differences.

Chapman and Webster (2003) also indicates efficiency in hiring system which could be achieved by reduction in selection cycle time

in comparison with the manual approaches that may cause withdrawal by applicants and give the opportunity to the competitors to hire

best applicants.

Through a financial analysis Buckley et al. (2004) found out a substantial cost saving and consequently an increase in Return on

Investment (ROI) of a global educational publisher analyzed as a case study.

Marić and Ilić (2012) reached to the same point as cost reduction and higher speed which the technology contributes to the selection

process but also they speak about the complication of activities in HR department at least at initial stage of the transition since for

example involvement of the internal relevant employees during the development of the solution is necessary


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Conclusion

A sophisticated web-based application which would be executed on the data collected from the applicants or a kind of electronic

interaction among employer and potential candidates so-called e-interview that could be vocal or video-based through which try to

find the most appropriate job seeker to take the vacancy is e-Selection. Collected information could range from biological background

like educational level, related jobs possessed before, etc. to psychological testing like measuring honesty Before going further it is

good to be said there are two different orientations on company’s website: recruiting-oriented which means the web site only publish

information about the vacant positions for perspective applicants and screening-oriented which means the web site would collect

information from applicants to be used for selection process -also company’s may use both- . So e-selection could be considered only

when there is a set of collected data from applicants which requires screening-oriented for company’s web site.

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