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Green Marketing   A Success Strategy for Inclusive Growth And Sustainable Development in India

 

Mrs. Kiruthiga Shankaranand,

Lecturer, Department of Management,

Indian School of Science and Management-B School,

Taramani, Chennai, India.

 

Introduction

 

We find various products in the global market, its uses differs but its nature of depletion and degradation depends on the materials trough which it is produced. 90% of products that are produced from natural resources are Eco- and Environment- friendly. It is easily destroyed, recycled and reused. India, a nation rich in national resources has a wide chance to produce needed goods and market it which would ensure the internal food chain and also results in the safeguarding of the future with constructively utilizing for

the present (Sustainable Development).

 

Green House effect

 

The greenhouse effect is a process by which thermal radiation from a planetary surface is absorbed by atmospheric greenhouse gases, and is re-radiated in all directions. Since part of this  re-radiation is back towards the surface, energy is transferred to the surface and the lower atmosphere.  As a result, the temperature there is higher than it would be if direct heating by solar radiation were the only warming mechanism.

 

This mechanism is fundamentally different from that of an actual greenhouse, which  works  by  isolating  warm  air  inside  the  structure  so  that  heat  is  not  lost  by convection.

 

The greenhouse effect was discovered by Joseph Fourier in 1824, first reliably experimented  on  by John Tyndall in 1858, and first reported quantitatively by Svante Arrhenius in 1896.

 

If an ideal thermally conductive blackbody was the same distance from the Sun as the Earth is, it  would have a temperature of about 5.3 °C. However, since the Earth reflects about 30% (or 28%) of the incoming sunlight, the planet's effective temperature (the temperature of a blackbody that would emit the same amount of radiation) is about −18 or −19 °C, about 33°C below the actual surface temperature of about 14 °C or 15 °C.

 

The mechanism that produces this difference between the actual surface temperature and the effective temperature is due to the atmosphere and is known as the greenhouse effect. Global  warming,  a  recent  warming of  the  Earth's  surface  and  lower  atmosphere,  is believed to be the result of a strengthening of the greenhouse effect mostly due to human- produced increases in atmospheric greenhouse gases.

 

The three R s of environmentalism are:-

 

   Reduce

   Reuse and

     Recycle.


 

India

 

India has a total water surface area of 314,40 km˛ and receives an average annual rainfall of 1,100 mm. Irrigation accounts for 92% of the water utilisation, and comprised

380 km˛  in  1974,  and is  expected  to  rise  to 1,050  km˛  by 2025,  with  the  balance accounted  for  by  industrial  and  domestic  consumers.  India's  inland  water  resources comprising rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly 6 million people in the fisheries sector. In 2008, India had the world's third largest fishing industry.

 

India's major mineral resources include Coal (third-largest reserves in the world), Iron ore,  Manganese, Mica, Bauxite, Titanium ore, Chromite, Natural gas, Diamonds, Petroleum, Limestone and  Thorium (world's largest along Kerala's shores). India's oil reserves, found in Bombay High off the coast of Maharashtra, Gujarat, Rajasthan and in eastern Assam meet 25% of the country's demand.

 

Rising energy demand concomitant with economic growth has created a perpetual state of  energy  crunch in India. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Though India is rich in Thorium, but not in Uranium, which it might get access to in light of the nuclear deal with  US.  India  is  rich  in  certain  energy  resources  which  promise  significant  future


potential -  clean  /  renewable  energy  resources  like  solar,  wind,  biofuels  (jatropha, sugarcane).

 

So such  resources  can  be  effectively  used  to  produce  new  products  and  the demand can be created easily under a Private Public Partnership (PPP).

 

Marketing

 

Marketing is the process of performing market research, selling products and/or services to  customers and promoting them via advertising to further enhance sales. It generates  the  strategy  that  underlies  sales  techniques,  business  communication,  and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

 

The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to  satisfy its organizational objectives, an organization should anticipate the needs and wants of  consumers and satisfy these more effectively than competitors.

 

Green Marketing

 

According  to  the  American  Marketing  Association,  green  marketing  is  the marketing  of  products  that  are  presumed  to  be  environmentally  safe.  Thus  green marketing  incorporates  a  broad  range  of  activities,  including  product  modification, changes to the production process, packaging changes, as well as modifying advertising.

 

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.

 

It refers  to  products  and  packages  that  have  one  or  more  of  the  following characteristics:

 

(1) Are less toxic

(2) Are more durable

(3) Contain reusable materials

(4)  Are   made   of   recyclable   material.   In  short,   these   are   products   considered “environmentally responsible”.


 

The Four Ps of Green Marketing:-

 

Like conventional  marketers,  green  marketers  must  address  the  ‘four  Ps’  in innovative ways.

 

1.      Product

 

Entrepreneurs wanting to exploit emerging green market either:

 

   identify  customers’  environmental  needs  and  develop  products  to  address these needs; or

   Develop  environmentally  responsible  products  to  have  less  impact  than competitors.

 

The increasingly wide varieties of products on the market that support sustainable development and are good for the triple bottom line include:

 

   Products made from recycled goods, such as Quik’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.  Queensland’s  only  waterless  printer,  Print point, reduces operating costs by using less water than conventional printers and is able to pass the savings on to customers.

   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.

   Organic products many consumers 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 – such as toy libraries.

   Certified products, which meet or exceed environmentally responsible criteria.

 

Whatever the product or service, it is vital to ensure that products meet or exceed the quality expectations of customers and are thoroughly tested.

 

2.      Price

 

Pricing is a critical element of the marketing mix. Most customers are 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 are usually an added bonus but will often be the deciding factor between products of equal value and quality.

 

Environmentally responsible products, however, are often less expensive when product life cycle costs are taken into consideration. For example fuel-efficient vehicles, water-efficient printing and non-hazardous products.

 

3.      Place

 

The choice of where and when to make a product available has a significant impact on the customers being attracted.

 

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, in most cases, 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 which a company wants to project. The  location must differentiate a company from its 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.      Promotion

 

Promoting products  and  services  to  target  markets  includes  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  communications  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,  under  the  banner  of  the  Go  Green Environment Fund.


 

The   key    to   successful    green   marketing    is    credibility.    Never   overstate environmental claims or establish unrealistic expectations, and communicate simply and through sources that people trust.

 

Promote  your  green  credentials  and  achievements.  Publicise  stories  of  the company’s  and  employees’ green initiatives. Enter environmental awards programs to profile environmental credentials to customers and stakeholders.

 

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.[2]  This Commission is expected to do an overall review of this guidance, and the legal standards it contains, in 2011.

 

Classical Vs "Green" Marketing Approach

 

Classical marketing             Green marketing

Customers                   Customers with their            Human beings with

Lifestyle                               their lives

Products                     "From the cradle to the        "From the cradle to the

grave"                                   cradle"

One size fits all products      Flexible Services

Marketing concept       Sales orientation                   Educational

Final values                           Values

 

Company                     Reactive                               Proactive

Independent                        Interdependent

Competitive                          Cooperative

By department                      Holistic

Short-term orientation           Long-term orientation

Profit maximizing                    Double final target


 

Global Companies that concentrates in and techniques for Green Marketing

 

Philips Light's "Marathon"

 

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 "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

 

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 Zip Car (East Coast), I-GO Car (Chicago), Flex Car (Washington State), and Hour Car (Twin Cities).

 

Electronics 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.

 

McDonald's restaurant's napkins, bags are made of recycled paper.

 

Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year.

 

Examples Of Green Marketing – Indian Context

 

1. Tata Group of Companies

 

   Tata motors ltd. is setting up an eco-friendly showroom using natural material for its flooring and energy efficient lights.


   The taj chain, is in the process of creating eco-rooms which have energy efficient mini bars, organic bed linen and napkins made up of recycled papers. The rooms will have CFL’s or Led’s.

   Launched a low cost water purifier made up of natural ingredients.

   Developing indica EV, an electric car that would run on polymer lithium ion batteries.

2. Recently launched Samsung solar mobile guru.

 

3. Battery operated L.G TV.

 

4. Introduction of C.N.G in Delhi.

 

5. Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that has been a major source of air and water pollution.

 

6.  Barauni refinery of IOC is taken steps for restricting air and water pollutants.

 

Introduction of CNG in 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.

 

ITC

   ITC has been 'Carbon Positive' three  years in a row (sequestering/storing twice the amount of CO2 than the Company emits).

   'Water Positive' six  years in  a  row  (creating three  times  more  Rainwater

Harvesting potential than ITC's net consumption).

   Close to 100% solid waste recycling.

   All Environment, Health and Safety Management Systems in ITC conform to the best international standards.

   ITC's businesses generate livelihoods for over 5 million people.

   ITC's  globally  recognised  e-Choupal  initiative  is  the  world's  largest  rural digital infrastructure benefiting over 4 million farming families.

   ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating  an  estimated  35  million  person  days  of  employment  among  the disadvantaged.


   ITC's  Watershed  Development  Initiative  brings  precious  water  to  nearly

35,000 hectares of drylands and moisture-stressed areas.

   ITC's   Sustainable   Community   Development   initiatives   include   women empowerment,                           supplementary    education,    integrated   animal    husbandry programmes.

 

Maruti: Greening of Supply Chain :-

 

   The company has remained ahead of regulatory requirements in pursuit of environment   protection   and   energy   conservation   at   its   manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly.

   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 aquifers. Also, recyclable packing for bought out components is being actively promoted.

   The    company    has    been    facilitating    implementation    of    Environment Management System (EMS) at its suppliers' end. Regular training programs are conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more  guidance. The systems and the environmental performance of suppliers are audited.

   The green co-efficient of this system is much better than the conventional system

HCL's Environment Management Policy under HCL EcoSafe :-

 

   In building a system to identify, develop and sustain the maintenance of an environment  management system at corporate level we have formulated a program that we proudly refer as HCL's ecosafe.

   The aim is to encapsulate knowledge, awareness, and key developments on all environmental issues faced by today's world and to incorporate these in HCL's


operations assuring our commitment in delivering quality products, solutions and services

   The key objective under HCL EcoSafe is targeted at integrating environmental management  procedures  into  its  business  processes  thereby protecting  the environment,  health,  and  safety  of  all  its  stakeholders.  HCL  commits  to manufacture products that are environment friendly in all respects and are free from hazardous chemicals.

   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.

 

Challenges Ahead

 

1.      Green products require renewable and recyclable material, which is costly, requires a technology, which requires huge investment in R & D water treatment technology, which is too costly.

2.     Majority of the people are not aware of green products and their uses

3.     Majority of the consumers are not willing to pay a premium for green Products

 

Conclusion

 

Thus implementation of Green marketing and green products development is not in  the  hands  of  government  alone.  It  must  encouraged  by  the  government,  it  must introduces to the people formally by it and the government must encourage the private players to take part in it through tax  exemptions and through other benefits, private players  must  also  spend  their  CSR  budget  in  such  activities  it  not  a  one  man’s performance it is the combination of Public and Private (PPP) together.