Study Circle Green Marketing Final

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Green Marketing in IndiaWay ahead to sustainability

Shifali Mandhania

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Objectives of the study

1) To introduce the terms and concepts of greenmarketing;

2) To discuss why going green is important;

3) To know why the manufacturers and marketers launcheco-friendly products and are adopting a greenmarketing philosophy;

4)To mention some of the problems with greenmarketing.

5)Find out ways to improve consumer appeal forenvironmentally preferable products through differentmarketing strategies

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Green Marketing

Green or Environmental Marketing consists of allactivities designed to generate and facilitate anyexchanges intended to satisfy human needs or

wants, such that the satisfaction of these needsand wants occurs, with minimal detrimentalimpact on the natural environment

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Green Products

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

refillable containers etc.

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Green Marketing adopts by thefirms

Opportunities ( Surf Excel and LG)

Government Pressure (Plastic ban)

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

Social Responsibility (HSBC, Walt Disney,Coca Cola)

Cost or Profit Issues05/05/2012 5


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Ginsberg and Bloom :Companies canbe classified

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

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

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

4. Extreme Green- Extreme green adopt green marketing mix inthe holistic manner.

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Global Trends

Pressure on governments to lead green regulation

Increased desire to buy green

Transparency and choice driving buyer behaviour

Consumers receptive to green advertising

Interest in big-ticket green products

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Challenges in green marketing

Need for Standardization

New Concept

Green Myopia

Costly technology

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Possible requirements Government couldput in place

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

Most Important 2nd most important

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Plan to spend more, less, or the sameamount on green products and

services?

Source : GLOBAL DATA: 2011survey conducted by by Landor Associates and Penn Schoen Berland05/05/2012 10


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How much more, in percentage terms,are you willing to spend on a product

because it is green?



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

Biggest Challenge Second Biggest Challenge



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Which of the following has the greatest impact onlikelihood ?

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

Second Biggest Challenge Biggest Challenge

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Key findings

Consumers are increasingly concerned about environmental issues,particularly energy use

Consumers want to buy from green companies and plan to spendmore on green products

Packaging influences green purchasing

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

Consumers are more likely to purchase green products in thehousehold, grocery, personal care, and packaged food and beverageindustries. Auto and tech are poised for green growth

Consumers are looking for public leadership on green innovation05/05/2012 14


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Untapped potential

A dismal 16% of businesses in India in the foodand beverage sector and 18% in the clothingand footwear industry produce or trade Greenproducts.

The home electronics segment, however, clocksa more impressive 60%. In addition, the vast

majority (76%) either do not have a policy orguideline to minimize their impact on theenvironment in place or are failing to clearlycommunicate they have one. (Source :TV SD Asia Pacific)

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Green Products in India

IWipro Infotech (Green It) was India's first company to launch environmentfriendly computer peripherals.

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

Oil and Natural Gas Corporation Ltd (ONGC), Indias largest oil company,has introduced energy-efficient Mokshada Green Crematorium, which saves60 to 70% of wood and a fourth of the burning time per cremation.

Reva, Indias very-own Bangalore-based company was the first in the world

to commercially release an electric car.

Honda India introduced its Civic Hybrid car

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Green Products in India

ITC has introduced Paperkraft, a premium range of eco-friendly business paper..IndusInd Bank installed the countrys first solar-powered

ATM and thus brought about an eco-savvy change in theIndian banking sector.

Suzlon Energy manufactures and markets windturbines, which provide an alternative source of energy

based on wind power. This green initiative taken by thecompany is extremely important for reducing the carbonfootprint.

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Various Strategies taken by SeveralCompanies across

Nokia Corporation

BSNL

Indian Toy Industry

OORJA

Green Shirt by Several Indian Companies

Tamilnadu Newsprint and Papers Limited (TNPL) wasawarded the Green Business Leadership Award in the pulp and paper sector for the year 2009-10,

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

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

Recently launched Samsung solar mobile Guruis not finding foot in market due to

inconvenience in solar charging. Battery operated LG TV failed in Indian market

to due to sound quality Very less consumption of CFL bulbs due to high

cost.Consumption of plastic bags is very high in both

rural and urban sector etc.

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Factors differentiating the Indian consumers from

consumers of developed countries-

India is a cost driven market

Low level of awareness

Degree of New product acceptance

Less developed means of communication, Languagebarriers

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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINKAMONG PLAYERS

CONSUMER

PRODUCER STATEGREEN ENVIRONMRNT

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Companies must remove these five barriersnamely,

Lack of awareness, negative perceptions, distrust, highprices, and low availability

.

Increase consumers awareness of green products,

improve consumers perceptions of eco-products quality,strengthen consumers trust, lower the prices of greenproducts, and increase these products availability.

AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-

Producer role

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Consumer Role Conscious effort to educate themselves on the green advantages

and make an informed choice. Should look at the Bigger picture andnot be guided purely by price and personal gains.

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

Consumers should shed inhibitions and preconceived notions aboutnot using eco-friendly products. They should understand that everypositive step contributes to the cause and shed the mentality thatthey alone cannot bring about the change.

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

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Government Role

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

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

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

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

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

Promotion of Eco-mark or Eco-labeling has to be done to create awareness not only

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Conclusion

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

Green products and services not only help tackle pertinent

environment issues but make genuine business sense. Over thenext five years, this is only going to intensify. With a comparablylimited number of Green products and services currently on themarket, firms that act quickly to capitalise on this growing trend willreap significant rewards

Only thing required is the determination and commitment from the allthe stakeholders of the companies. It is the right time to adopt theconcept of sustainable development in the marketing mix of thecompanies and integrate them to save the planet from the upcomingrisk.

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THANK YOU

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Study Circle Green Marketing Final

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