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ISSERTATION REPORT
RT
ON
OPPORTUNI
NITIES
&
CHALLENG
NGES
FOR
GREE
EEN
MARKETIN
With
ING
ith
special
reference
to
Dehradun
city
BOAFIDE CERTIFICATE
Certified that this project report titled “Opportunities & Challenges for
Green Marketing with special reference to Dehradun city” is the bonafide
work of Mr. Gyandeep Kumar student of MBA Marketing 4th semester who
carried out the research under my supervision. Certified further, that to the best
of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate.
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DECLARATIO
I hereby declare that dissertation report entitled “Opportunities & Challenges for
Green Marketing with special reference to Dehradun city” written and submitted by
me under the guidance of Mr. RAJAT PRAVEEN DIMRI, faculty management,
SGRR-ITS, Dehradun is my original work.
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ACKOWLEDGEMET
If words are considered as a symbol of approval and tokens of appreciation then let the
words play the heralding role of expressing my gratitude. It is a moment of pleasure for
me to acknowledge the help and support for those people who made me able to present
this dissertation report for evaluation as the partial fulfillment of “Master Of Business
Administration’’.
I take this opportunity to thank and show gratefulness to my guide Mr. Rajat Praveen
Dimri (Faculty Management), Shri Guru Ram Rai Institute Of Technology And
Science, Dehradun for his precious guidance and mentoring but for which my training
here would not been so rewarding and fruitful.
ZçtÇwxxÑ ^âÅtÜ
Page | iii
ABSTRACT
• Credibility
• Publicize stories of the company’s and employees’ green initiatives.
• Enter environmental awards programs to profile environmental credentials to
customers and stakeholders.
• Never overstate environmental claims or establish unrealistic expectations.
This report also stresses upon the effect of green marketing on the consumers. Green
marketing isn't just a catchphrase; it's a marketing strategy that can help you get more
customers and make more money. But only if you do it right.
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COTETS
Certificate i
Declaration ii
Acknowledgement Iii
Abstract iv
CHAPTER 1 Introduction 01
CHAPTER 4 Conclusion 55
CHAPTER 5 Suggestion 58
Bibliography 61
Annexure 63
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CHAPTER- ONE
INTRODUCTION
• GREEN MARKETING DEFINITION………. 02
• BIRTH OF GREEN MARKETING…….…….. 04
• NEED OF GREEN MARKETING…………….. 06
• CHALLENGES OF GREEN MARKETING..18
• BENEFITS OF GREEN MARKETING………21
• SWOT ANALYSIS………………………………………. 23
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ITRODUCTIO
Product modification,
Changes to the production process,
Packaging changes, as well as
Modifying advertising.
Green Marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in it or
produced and/or packaged in an environmentally friendly way.
As per Mr. J. Polonsky, Green Marketing can be defined as, "All activities designed to
generate and facilitate any exchange intended to satisfy human needs or wants such that
satisfying of these needs and wants occur with minimal detrimental input on the national
environment."
Green Marketing involves developing and promoting products and services that satisfy
customer's want and need for Quality, Performance, Affordable Pricing and Convenience
without having a detrimental input on the environment.
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*Figure 1: The many meaning of term green
Yet defining green marketing is not a simple task where several meanings intersect and
contradict each other; an example of this will be the existence of varying social,
environmental and retail definitions attached to this term. Other similar terms used are
Environmental Marketing and Ecological Marketing. The legal implications of marketing
claims call for caution. Misleading or overstated claims can lead to regulatory or civil
challenges. In the USA, the Federal Trade Commission provides some guidance on
environmental marketing claims. So, in simple terms Green marketing refers to the process
of selling products and/or services based on their environmental benefits. Such a product
or service may be environmentally friendly in itself or produced and/or packaged in an
environmentally friendly way.
The obvious assumption of green marketing is that potential consumers will view a
product or service's "greenness" as a benefit and base their buying decision accordingly.
Green marketers though argue that it is a way to use the environmental benefits of a
product or service to promote sales. Many consumers will choose products that do not
damage the environment over less environmentally friendly products, even if they cost
more. With green marketing, advertisers focus on environmental benefits to sell products
such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe
detergents. People buy billions of dollars worth of goods and services every year—many
which harm the environment in how they are harvested, made, or used. Environmentalists
support green marketing to encourage people to use environmentally preferable
alternatives, and to offer incentives to manufacturers that develop more environmentally
beneficial products.
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*Sources: [Peattie, K. (1995), Environmental Marketing Management, p.26]
BIRTH OF GREE MARKETIG
The concept of green marketing has been around at least since the first Earth Day in 1970.
But the idea did not catch on until the 1980s, when rising public interest in the
environment led to a demand for more green products and services. Manufacturers
responded to public interest by labelling hundreds of new products "environmentally
friendly"—making claims that products were biodegradable, compostable, energy
efficient, or the like. The term Green Marketing came into prominence in the late 1980s
and early 1990s.
The past decade has shown that harnessing consumer power to effect positive
environmental change is far easier said than done. The so-called "green consumer"
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movements in the U.S. and other countries have struggled to reach critical mass and to
remain in the forefront of shoppers' minds. While public opinion polls taken since the late
1980s have shown consistently that a significant percentage of consumers in the U.S. and
elsewhere profess a strong willingness to favour environmentally conscious products and
companies, consumers' efforts to do so in real life have remained sketchy at best. One of
green marketing's challenges is the lack of standards or public consensus about what
constitutes "green," according to Joel Makower, a writer on green marketing. In essence,
there is no definition of "how good is good enough" when it comes to a product or
company making green marketing claims. This lack of consensus—by consumers,
marketers, activists, regulators, and influential people—has slowed the growth of green
products, says Makower, because companies are often reluctant to promote their green
attributes, and consumers are often skeptical about claims.
The green marketing has evolved over a period of time. According to Peattie
(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.
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EED OF GREE MARKETIG
Most of the companies are venturing into green marketing because of the following
reasons:
Issues like Global warming and depletion of ozone umbrella are important for the healthy
survival. Every person rich or poor would be interested in quality life with full of health
and vigour and so would the corporate class. Financial gain and economic profit is the
main aim of any corporate business. But harm to environment cost by sustain business
across the globe is realized now though off late. This sense is building corporate
citizenship in the business class. So green marketing by the business class is still in the
selfish anthological perspective of long term sustainable business and to please the
consumer and obtain the sanction license by the governing body. Industries in Asian
countries are catching the need of green marketing from the developed countries but still
there is a wide gap between their understanding and implementation.
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.
They are:
•McDonald's replaced its clam shell packaging with waxed paper because of increased
consumer concern relating to polystyrene production and Ozone depletion.
•The Surf Excel detergent which saves water (advertised with the message—"do bucket
paani roz bachana").
•We also have green buildings which are efficient in their use of energy, water and
construction materials, and which reduce the impact on human health and the environment
through better design, construction, operation, maintenance and waste disposal. In India,
the green building movement, spearheaded by the Confederation of Indian industry (CII) -
Godrej Green business Center, has gained tremendous impetus over the last few years.
From 20,000 sq ft in 2003, India's green building footprint is now over 25 million sq ft.
•Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the
demands of firms for less environmentally harmful products.
Fund managers and corporate developers too, are taking into account the environmental
viability of the company they invest in Venture Capitalists are investing in green business
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because they believe it's a growth opportunity. Britain based HSBC became the world's
first bank to go carbon neutral late last year and is now turning its 11000 buildings in 76
countries worldwide into models of energy efficiency." our customers have told us that
they decide where they shop based on whether the business is a good neighbour ."Says
David North, Tesco’s community director.
An example of a firm that does not promote its environmental initiatives is Coca-Cola.
They have invested large sums of money in various recycling activities, as well as having
modified their packaging to minimize its environmental impact. While being concerned
about the environment, Coke has not used this concern as a marketing tool. Thus many
consumers may not realize that Coke is a very environmentally committed organization.
Another firm who is very environmentally responsible but does not promote this fact, at
least outside the organization, is Walt Disney World (WDW). WDW has an extensive
waste management program and infrastructure in place, yet these facilities are not
highlighted in their general tourist promotional activities.
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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.
One of the more recent publicized environmental regulations undertaken by
governments has been the establishment of guidelines designed to "control" green
marketing claims. These regulations include the Australian Trade Practices
Commission's (TPC) "Environmental Claims in Marketing - A Guideline , the US
Federal Trade Commission's (FTC) "Guides for the Use of Environmental Marketing
Claims" and the regulations suggested by the National Association of Attorneys-
General .These regulations are all designed to ensure consumers have the appropriate
information which would enable them to evaluate firm's environmental claims.
5) 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.
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Therefore firms that can reduce harmful wastes may incur substantial cost savings.
When attempting to minimize waste, firms are often forced to re-examine their production
processes. In these cases they often develop more effective production processes that not
only reduce waste, but reduce the need for some raw materials. This serves as a double
cost savings, since both waste and raw material are reduced.
In other cases firms attempt to find end - of - pipe solutions, instead of minimizing waste.
In these situations firms try to find markets or uses for their waste materials, where one
firm's waste becomes another firm's input of production. One Australian example of this is
a firm who produces acidic waste water as a by-product of production and sells it to a firm
involved in neutralizing base materials.
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GREE MARKETIG MIX
Product Mix
Price Mix
Place Mix &
Promotion Mix
1) PRODUCT MIX:
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.
Products with environmentally responsible packaging, McDonalds, for example,
changed their packaging from polystyrene clamshells to paper.
Products with green labels, as long as they offer substantiation.
Certified products, which meet or exceed environmentally responsible criteria.
Organic products-many customers are prepared to pay a premium for organic
products, which offer promise of quality. Organic butchers, for example, promote
the added qualities such as taste and tenderness.
A service that rents or loans products-toy libraries.
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Whatever the product or service, it is vital to ensure that products meet or exceed the
quality expectation of customers and is thoroughly tested.
2) PRICE MIX:
Pricing is the critical element of the marketing mix. Most customers will only be prepared
to 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 life
cycle coast are taken into consideration, for example fuel-efficient vehicles, water efficient
printing and non-hazardous products.
3) 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 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.
4) PROMOTIO( MIX:
Promoting products and services to target markets include paid advertising, public
relations, sales promotions, direct marketing and on-site promotions. Smart green
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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.
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**Source: [Peattie (1992), p.104]
MOVIG TOWARDS GREE MARKETIG
The era of green marketing has begun. It has already been granted wide acceptance by all
stakeholders. However, there is a need to lay down the standards and practices, in order to
bring in objectivity in the judgment of various national and international agencies. This
will not only encourage the activities of green marketing but shall also provide the much
needed level playing fields to all.
ISO has been developed to help any company in any country to meet the goal of
sustainable development and environmental friendliness. The ISO 14000 family of
standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were published as an official
document in 1996.
The ISO series aims to provide guidance for developing a comprehensive approach
to environmental management and for standardizing some key environmental tools of
analysis such as labeling and life cycle assessment.
ECO-LABELI(G I(ITIATIVES:
Eco label provide information regarding the environmental performance of products. The
objective of eco-labeling is to provide authentication to genuine claims regarding the
environmental impact of products and processes by manufacturers.
In India the government has introduced the eco-mark scheme since 1981. The
objectives of the scheme are:
The Ministry of environment and forest of government of India has prescribed the
following criteria for products:
• That they cause substantially less pollution than comparable products in production,
usage and disposal,
• That they are recycled and/or recyclable whereas comparable products are not.
• That they contribute to a reduction on adverse environmental health consequences.
• That they comply with laws, standards and regulations pertaining to the environment.
• That their price is not exorbitantly higher than comparable products.
ECO-MARK I( I(DIA:
Under the concept, products which are less harmful to the environment or have benign
impact on environment through the various stages of development-manufacture,
packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An
earthen pot has been chosen as the logo for Eco-Mark scheme in India. The familiar
earthen pot has renewable resource like earth, does not produce hazardous waste and
consume little energy in making. As a symbol it puts across its environmental message. Its
image has the ability to reach people and help to promote a greater awareness of the need
to be kind to the environment. The logo Eco-Mark scheme signifies that the product which
carries it does least damage to the environment.
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STAKEHOLDERS I( GREE( MARKETI(G:
They are all the people or groups whose lives or environment are affected by the project,
but who receive no direct benefit from it. These can include the team’s families, people
made redundant by the changes introduced, people who buy the product and the local
community.
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GREE CODE
G: Generalizes with care. Consumer behavior will not necessarily be consistent across
different product types, and particular market segments may respond to certain issues on
the green agenda but not others.
R: Remembers, the validity of a piece of market research is not related to the degree to
which it supports your preferred option.
E: Explores the context from which market research data comes. Be clear on the nature of
the sample used, the questions asked, the way in which responses were recorded and the
time and place from which the responses come.
E: Ensures that where market research is crossing international borderlines, that the
terminology and interpretation remains consistent. Terms like ‘environment’, ‘green’ and
‘conservation’ do not always translate precisely between languages.
: Neutrality is important. Ensure that when you pose questions to consumers, that they
can make any response without being made to feel guilty or uncomfortable, and ensure
that your own preconceptions about the green agenda (such as an assumption that green
products will cost extra) are not encoded within the questions.
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CHALLEGES I GREE MARKETIG
There are numerous challenges in the field of green marketing. Some of the major hurdles
are as following:
(ew Concept:
Indian literate and urban consumer is getting more aware about the merits of Green
products. But it is still a new concept for the masses. The consumer needs to be educated
and made aware of the environmental threats. The new green movements need to reach the
masses and that will take a lot of time and effort. By India’s ayurvedic heritage, Indian
consumers do appreciate the importance of using natural and herbal beauty products.
Indian consumer is exposed to healthy living lifestyles such as yoga and natural food
consumption. In those aspects the consumer is already aware and will be inclined to accept
the green products.
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Patience And Perseverance:
The investors and corporate need to view the environment as a major long-term investment
opportunity, the marketers need to look at the long-term benefits from this new green
movement. It will require a lot of patience and no immediate results. Since it is a new
concept and idea, it will have its own acceptance period.
Green Washing
In spite of its growing popularity, the green marketing movement faced serious setbacks in
the late 1980s because many industries made false claims about their products and
services. For instance, the environmental organization Corp Watch , which issues annually
a list of the top ten "green washing" companies, included BP Amoco for advertising its
"Plug in the Sun" program, in which the company installed solar panels in two hundred gas
stations, while continuing to aggressively lobby to drill for oil in the Arctic National
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Wildlife Refuge. Green marketing can be a very powerful marketing strategy though when
it's done right. In a similar kind of case Chad’s green marketing campaign bombed because
he made the mistake of packaging his environmentally friendly product in Styrofoam,
emitting CFC’s.
The past decade has shown that harnessing consumer power to effect positive
environmental change is far easier said than done. The so-called "green consumer"
movements in the country have struggled to reach critical mass and to remain in the
forefront of shoppers' minds. One of green marketing's challenges is the lack of standards
or public consensus about what constitutes "green". This lack of consensus -- by
consumers, marketers, activists, regulators, and influential people -- has slowed the growth
of green products, says Makeover, because companies are often reluctant to promote their
green attributes, and consumers are often skeptical about claims.
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BEEFITS OF GREE MARKETIG
Today’s consumers are becoming more and more conscious about the environment and are
also becoming socially responsible. Therefore, more companies are responsible to
consumers’ aspirations for environmentally less damaging or neutral products. Many
companies want to have an early mover advantage as they have to eventually move
towards becoming green.
With the proliferation of environmental stories in the press and broadcast media,
individuals (whether as a consumer or acting for a company), are more aware of their
personal responsibility to try to make a difference. Appealing to this need can increase
response rates to marketing executions and build brand loyalty.
Green marketing is very low on the agenda of most businesses and therefore its still
an under-leveraged USP (Unique Selling Proposition). Effective green marketing targeted
at the right audience will make a difference.
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As resources are limited and human wants are unlimited, it is important for the marketers
to utilize the resources efficiently without waste as well as to achieve the organization's
objective. So green marketing is inevitable.
There is growing interest among the consumers all over the world regarding protection of
environment. Worldwide evidence indicates people are concerned about the environment
and are changing their behaviour. As a result of this, green marketing has emerged which
speaks for growing market for sustainable and socially responsible products and services.
Man has limited resources on the earth, with which she/he must attempt to provide for the
worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at
man's disposal. In market societies where there is "freedom of choice", it has generally
been accepted that individuals and organizations have the right to attempt to have their
wants satisfied. As firms face limited natural resources, they must develop new or
alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at
how marketing activities utilize these limited resources, while satisfying consumers wants,
both of individuals and industry, as well as achieving the selling organization's objectives.
When looking through the literature there are several suggested reasons for firms increased
use of Green Marketing. Five possible reasons cited are:
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GREE MARKETIG: SWOT AALYSIS
STRE(GTHS:
1. Marketers get access to new markets and gain an advantage over competitors that
are not focusing on “greenness.”
2. Marketers can charge a premium on products that are seen as more eco-
responsible.
3. Organizations that adopt green marketing are perceived to be more socially
responsible.
4. Green marketing builds brand equity and wins brand loyalty among customers.
E.g. research and development capabilities for clean processes and green products
and human resources committed to environmental protection.
WEAK(ESS:
1. Most customers choose to satisfy their personal needs before caring for
environment.
2. Overemphasizing greenness rather than customer needs can prove devastating for
a product.
3. Many customers keep away from products labeled “Green” because they see
such labeling as a marketing gimmick, and they may lose trust in an organization
that suddenly claims to be green.
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OPPORTU(ITIES:
1. Marketing to segment which are becoming more environmentally aware and
concerned.
These consumers are demanding products that conform to these new attitudes.
2. Organizations perceive green marketing to be a competitive advantage, relative
to the competitors. Firms, therefore, strive to improve upon their societal
awareness. This complements the increase in consumers’ socially conscious
behavior and will therefore give them an advantage over competitors who do not
address these issues.
E.g. offering an environmental friendly product and saving resources, and relating
them to internal strengths.
THREATS:
1. Uncertainty as to the environmental impact of present activities, including that is
perceived to be less environmentally harmful.
2. Uncertainty as to which green marketing activities are acceptable from a
government perspective.
3. The possibility of a backlash from consumers or government based on existing
green marketing claims, threat one and two above may cause backlash to arise.
E.g. competitors gain market shares with green products and increased
environmental regulations).
E(VIRO(ME(TAL AUDIT:
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GREE PRODUCTS: ITS CHARACTERISTICS
These products that are manufactured through green technology and that caused no
environmental hazards are called green products. Promotion of green technology and green
products is necessary for conservation of natural resources and sustainable development.
We can define green products by following measures:
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COMPAIES GREE IITIATIVE
• The company credited the 'Just-in-Time' philosophy adopted and internalized by the
employees as the prime reason that helped to excel in this direction.
• The company has been promoting 3R since its inception. As a result the company has
not only been able to recycle 100% of treated waste water but also reduced fresh water
consumption. The company has implemented rain water harvesting to recharge the
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aquifers. Also, recyclable packing for bought out components is being actively
promoted.
• The green co-efficient of this system is much better than the conventional system.
• HCL ecoSafe focuses on product lifecycle management to ensure that our products
right from when they are manufactured, bought by customers, recovered at their end-
of-life and recycled after useful life are done in an environmentally responsible
manner.
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“GREE MARKETIG CASES”
Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb
was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had
difficulty climbing out of its deep green niche. The company re-launched the product as 17
"Marathon," underscoring its new "super long life" positioning and promise of saving $26
in energy costs over its five-year lifetime Finally, with the U.S. EPA's Energy Star label to
add credibility as well as new sensitivity to rising utility costs and electricity shortages,
sales climbed 12 percent in an otherwise flat market.
Car-sharing services address the longer-term solutions to consumer needs for better fuel
savings and fewer traffic tie-ups and parking nightmares, to complement the
environmental benefit of more open space and reduction of greenhouse gases. They may
be thought of as a "time-sharing" system for cars. Consumers who drive less than 7,500
miles a year and do not need a car for work can save thousands of dollars annually by
joining one of the many services springing up, including ZipCar (East Coast), Flex Car
(Washington State), and Hour Car (Twin Cities).
ELECTROIC SECTOR:
The consumer electronics sector provides room for using green marketing to attract new
customers. One example of this is HP's promise to cut its global energy use 20 percent by
the year 2010. To accomplish this reduction below 2005 levels, The Hewlett-Packard
Company announced plans to deliver energy-efficient products and services and institute
energy-efficient operating practices in its facilities worldwide.
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ITRODUCTIO OF CG I DELHI:
New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of
India forced a change to alternative fuels. In 2002, a directive was issued to completely
adopt CNG in all public transport systems to curb pollution.
HIDUSTA PETROLEUM:
Hindustan petroleum owns a massive e-waste recycling plants, where enormous shredders
and granulators reduce four million pounds of computer detritus each month to bite-sized
chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like
mercury and even some precious metals. HP will take back any brand of equipment; its
own machines are 100 percent recyclable. It has promised to cut energy consumption by
20 percent by 2010.
Laundry detergents are also touting energy savings. Proctor & Gamble’s (P&G) newest
market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About
80 to 85 percent of the energy used to wash clothes from heating water. Working with
utility companies, P and G found that consumers could save energy and resources by using
cold rather than warm water. As energy and resource prices continue to soar, opportunities
for products offering efficiency and savings are destined for market growth.
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PRESET TRED: GREE MARKETIG I IDIA
With cost cutting becoming part of the strategy of the firms it adopts green marketing in
relation to these activities. It may pursue these as follows:
A Firm develops a technology for reducing waste and sells it to other firms.
A waste recycling or removal industry develops.
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THE FUTURE OF GREE MARKETIG
There are many lessons to be learned to be learned to avoid green marketing myopia, the
short version of all this is that effective green marketing requires applying good marketing
principles to make green products desirable for consumers. The question that remains,
however, is, what is green marketing’s future? Business scholars have viewed it as a
“fringe” topic, given that environmentalism’s acceptance of limits and conservation does
not mesh well with marketing’s traditional axioms of “give customer what they want” and
“sell as much as you can”. Evidence indicates that successful green products have avoided
green marketing myopia by following three important principles:
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• CREDIBILITY OF PRODUCT CLAIMS:
Employ environmental product and consumer benefit claims that are specific and
meaningful.
Procure product endorsements or eco-certifications from trustworthy third parties
and educate consumers about the meaning behind those endorsements and eco-
certifications.
Encourage consumer evangelism via consumers social and internet communication
network with compelling, interesting and entertaining information about
environmental products.
Make environmental messages consistent with the company’s existing voice in the
market place.
Empower consumers to get involved to make a difference.
Enlist cultural icons to tell the story.
Show that environmental initiatives lead to better quality products.
Be ready to experiment publicly, even if it doesn’t always lead to success.
Price environmentally preferable products comparable to conventional ones.
Link environmental innovations to other benefits, like quality and durability.
Thanks customers for making good, green choices, and tell them how they are
making a difference.
Seek recognition from peers and activists groups and challenge competitors to join
in.
Green products shouldn’t be any different from regular ones in branding, price, use
or performance.
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STRATEGIES TO BE IMPLEMETED I GREE MARKETIG
I. PRODUCT DIFFERE(TIATIO(
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.
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.
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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.
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.
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 and
other benefits.
V. LIFE-CYCLE A(ALYSIS
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 be
sustainable. Consumers don’t expect perfection when it comes to sustainability but they
want to see that brands understand the scale of the problem, have a plan and are in the
process of implementing it.
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VI. I(CE(TIVES A(D STRUCTURAL FACTORS
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RESEARCH
METHODOLOGY
• PROBLEM FORMULATION…………………...37
• RESEARCH OBJECTIVES……………..……...37
• RESEARCH HYPOTHESIS…...………..……...37
• RESEACH DESIGN…………………………….…...38
• SAMPLING DESIGN……………………………......38
• LIMITATION………………………………………..…...38
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PROBLEM FORMULATIO:
The aim of this study is to investigate immense opportunities and associated challenges in
Green Marketing. Green marketing is still in its infancy and a lot of research is to be done
on green marketing to fully explore its potential. Marketing Green means having a vision
and a plan and taking (cautious) action. As more companies look to promote their
environmentally savvy practices, it's a good idea to pause for a moment and consider what
companies are marketing when promoting organization as green or sustainable.
RESEARCH OBJECTIVE:
• Primary Objectives:
• Secondary Objectives:
RESEARCH HYPOTHESIS:
A tentative insight into the natural world, a concept that is not yet verified but that
if true would explain certain facts or phenomena. The hypothesis to be tested in this
study is:
“There are sufficient opportunities for green marketing and green
products in Dehradun city.”
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RESEARCH DESIG:
Descriptive research design is used in this research. It includes survey and fact finding
inquiries of different kinds. The major purpose of descriptive research is description of the
state of the affairs, as it exists at present.
DATA COLLECTIO:
Primary Data: Primary data has been collected mainly through structured questionnaire.
The questions were designed in an easily understandable manner that the respondents may
not have any difficulty in answering them.
Secondary Data: Secondary data has been obtained through websites, books, and online
magazines and journals.
SAMPLIG DESIG:
FINDING &
INTERPRETATION
Page | 39
Heard Of An
Any Campaign About Green Marketing
Mar
Yes : 58
No : 42
42%
58% Yes
No
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Source
ce Of Awareness About Green Marke
arketing
Television : 06
Newspaper : 19
Friends/Family : 07
Magazines : 12
Internet : 14
Information Sources
10%
24%
Television
33% Newspaper
Friends/Family
21%
Magazines
12% Internet
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You Been Part Of Such Campaign
Yes : 32
No : 26
Gr
Green Campaign Participation
45%
55%
5% Yes
No
Page | 42
Consider Enviro
nvironmental Aspect Of Product
ct While
Wh Buying
Very Often : 09
Often : 10
Sometimes : 16
Rarely : 14
Never : 07
Environmental Consideration
12% 16%
Very Often
25% 18%
Often
Sometimes
Rarely
29% Never
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Green Marketin
rketing And Its Advertising Is Good
ood Source
S Of
Informati
rmation About Green Products/Servi
/Services
Highly Agree : 10
Partially Agree : 11
Neutral : 15
Partially Disagree : 13
Highly Disagree : 09
Green Mar
Marketing & Advertising Good Sourc
ource of
Information
16% 17%
Highly Agree
22% 19%
P. Agree
26%
Neutral
P. Disagree
Highly Disagree
The weighted mean score for this is amazingly an exact zero which means that people
neither agree nor disagree
agree that green marketing and its advertising
tising are good source of
information about green
een pr
products and services.
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Green Market
arketing Activities Are Good Att Addressing
Add
Environmental Issues
Highly Agree : 11
Partially Agree : 19
Neutral : 09
Partially Disagree : 09
Highly Disagree : 10
Green Mar
Marketing Activities Good At Addres
dressing
Environment Issues
17% 19%
Highly Agree
P. Agree
15% 33%
Neutral
P. Disagree
Highly Disagree
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Green Market
arketing Activities Results In Better
etter Product
Highly Agree : 34
Agree : 16
Neutral : 05
Disagree : 03
Highly Disagree : 00
Green
nMMarketing Activities Results in Better
Bett
Products
9% 5% 0%
Highly Agree
27%
59% Agree
Neutral
Disagree
Highly Disagree
The weighted mean score for this is +1.40 which meanss that people in overall to
a good extent agrees that ggreen marketing activities result in better
etter products.
p
Page | 46
Com
Companies Opt For This Strategy
Government Pressure : 08
Competitive Pressure : 16
As a part of CSR : 15
Immense Opportunities : 19
Co
Companies Opt Green Strategy
14%
33%
Gov
Government Pressure
27%
Com
Competitive Pressure
AS a part of CSR
26
26% Imm
Immense Opportunities
From the above graphh we can see that 33% said that companies
ies go for green strategy
due to immense opportunit
ortunities present in the market. 27% people
ple think
thi that competition
is thriving companiess for oopting green strategy. 26% people underst
nderstand that companies
select green strategy as a ppart of their Corporate Social Responsibili
nsibility. While rest 14%
believe that due to governm
vernment pressure companies opt for green
en strategy.
stra
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Green Marketing
ting St
Strengthen Company’s Image
ge In The Mind Of
The Consumers
Highly Agree : 25
Agree : 28
Neutral : 03
Disagree : 02
Highly Disagree : 00
Green Mar
Marketing Strengthen Company's
's Image
Im
0%
5% 4%
48% Agree
Neutral
Disagree
Highly Disagree
The weighted mean score for this is +1.31 which meanss that people in overall to
a good extent agrees that ggreen marketing strengthen company’s
y’s image
im in the mind of
consumers.
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Companiess Tha
That Focus Environment Concerns
cerns Persuade
Con
Consumer To Buy The Products
Highly Agree : 21
Agree : 17
Neutral : 11
Disagree : 05
Highly Disagree : 04
Company
pany's With Green Marketing Persua
rsuade
Consumer Easily
9%
7% 36%
Highly Agree
19%
Agree
29%
Neutral
Disagree
Highly Disagree
The weighted
eighted mean score for this is +0.79 which
ich means
me that people in
overall to some extentt agre
agrees that green marketing persuade consum
nsumer easily.
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GREE MARKETIG ICLUDES:
Distribution Of Response:
Strongly Partially Neither Partially Strongly
Agree Agree Disagree Disagree
Ranking Of Variables:
Total Score Mean Score Rank
• 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.
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• 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, it 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 ‘Modifying
Advertising’.
• 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 2nd by the respondents.
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Green Strategy
tegy W
Will Help Grow The Healthy
hy Environment
En
Yes : 46
No : 12
Green Stra
Strategy Help Grow Healthy Environm
ronment
21%
Yes
No
79%
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HYPOTHESIS TESTIG
Hypothesis: There are sufficient opportunities for green marketing and green
products in Dehradun city.
(N-1) = (3-1) = 2
2
The table value of χ for 2 degree of freedom at 2% level of significance is7.824
2
Comparing calculated and tabulated value of χ , we find that calculated value is less
than the table value. The result, thus, supports the hypothesis and it can be concluded
that there are sufficient opportunities for green marketing and green products in
Dehradun city.
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DEMOGRAPHIC PROFILE OF RESPODETS
UDER 18 21
19-35 39
AGE
36-50 28
50 ABOVE 12
MALE 74
GEDER
FEMALE 26
GOVT. 24
PVT. 19
OCCUPATIO STUDET 27
OTHERS 30
1.5 TO 3 LAKH 37
AUAL ICOME
3 TO 5 LAKH 21
(in Rupees)
5 & ABOVE 10
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CHAPTER- FOUR
CONCLUSION
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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 mind 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. It was observed that the respondents who were more
proactive with the environmental behaviour have positive attitude towards green
advertisements. It is evident that green marketing have positive impact on only those who
are already practicing it. Rest of the respondents who were passive had very less impact on
their buying behaviour.
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.
Having said this, it must not be forgotten that the industrial buyer also has the ability to
pressure suppliers to modify their activities. Thus an environmental committed
organization may not only produce goods that have reduced their detrimental impact on
the environment, they may also be able to pressure their suppliers to behave in a more
environmentally responsible fashion. Final consumers and industrial buyers also have the
ability to pressure organizations to integrate the environment into their corporate culture
and thus ensure all organizations minimize the detrimental environmental impact of their
activities.
Thus green marketing should look at minimizing environmental harm, not necessarily
eliminating it. Green marketing covers more than a firm's marketing claims. While firms
must bear much of the responsibility for environmental degradation, ultimately it is
consumers who demand goods, and thus create environmental problems. One example of
this is where McDonald's is often blamed for polluting the environment because much of
their packaging finishes up as roadside waste. It must be remembered that it is the uncaring
Page | 56
consumer who chooses to disposes of their waste in an inappropriate fashion. While firms
can have a great impact on the natural environment, the responsibility should not be theirs
alone. It appears that consumers are not overly committed to improving their environment
and may be looking to lay too much responsibility on industry and government.
Thus, we can say that there are sufficient opportunities for green marketing in the
Dehradun city but it may also face lot of challenges as considerable percentage of
population are not aware and also willing to know the affairs of green marketing initiatives.
We need to educate them through proper campaigns. Green marketer must find an
opportunity to enhance you product's performance and strengthen your customer's loyalty.
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CHAPTER- FIVE
SUGGESTION
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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. There are some suggestion that an
organizations should implement for catering challenges of green marketing and
successful exploitation of green marketing. Those are:
Consumer needs 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 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. 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 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
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that they purchase 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 a difference.
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BIBLIOGRAPHY
Page | 61
BOOKS:
WEBSITES:
i. http://www.scribd.com
ii. http://www.managementparadise.com
iii. http://www.businessworld.in
iv. http://www.outlookindia.com
v. http://en.wikipedia.org
vi. http://www.business-standard.com
vii. http://www.encyclopedia.com
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ANNEXURE
Page | 63
Hello Sir/Madam,
I, Gyandeep Kumar, here to conduct a research on the topic “Opportunities & Challenges for
Green Marketing”. Please give your honest opinion and be understood that this information
collected will be purely confidential and not to be shared for any purpose other than research.
4. Do you consider the environmental aspect of the product before buying them?
(a) Very Often (b) Often (c) Sometimes
(d) Rarely (e) Never
5. Do you think that Green Marketing and its advertising are good sources of information
6. Do you agree that Green Marketing activities are good at addressing environmental issues?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
1
9. Do you think that Green Marketing strengthen company’s image in the mind of
consumers?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
10. Do you think that companies that focus on environmental concerns persuade consumers
to buy products?
(a) Highly agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree
11. Green Marketing includes:
Highly Somewhat Neither Somewhat Highly
Agree Agree Disagree Disagree