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THE GREEN MARKETING A PROJECT REPORT SUBMITTED TO MALOUT INSTITUTE OF MENAGEMENT AND INFORMATION TECHNOLOGY, MALOUT FOR THE

DEGREE OF MASTER OF BUSINESS ADMINISTRATION

BY Gurlal Singh Sandhu University Roll No.1274241 Class Roll No: 813 UNDER THE GUIDANCE OF Ajay Samyal (Assistant Professor) DEPARTMENT OF MANAGEMENT STUDIES MALOUT INSTITUTE OF MENAGEMENT AND INFORMATION TECHNOLOGY, MALOUT, DISTTRICT SHRI MUKTSAR SAHIB -152107 Year 2013

CERTIFICATE OF SUPERVISIOR This is to certify that Mr. Gurlal Singh Sandhu Roll No. 1274241 has completed the research project titled TO STUDY OF GREEN MARKETING IN OM GRC INFOTECH PVT. LTD. Under my supervision in partial fulfillment of the Masters of Business Administration degree under Punjab Technical University, Jalandhar.

Supervisors signature

Supervisors Name:-

Date:-

Place:

DECLARATION

I, hereby declare that the research project report titled TO STUDY GREEN MARKETING IN OM GRC INFOTECH PVT. LTD. Is my own original research work and this report has not been submitted to my University/Institute for the award of any professional degree or diploma.

____________________ MBA 3rd semester MIMIT Malout

ACKNOWLEDGEMENT

With deep sense of gratitude, I would like this opportunity to thank my project guide Ms. Bindu Rana (in charge of training dept.), who gave her best support & co-ordination during my summer training. Her involvement and unstinted support always gives me the confidence to do my work. Without her guidance this project report would not have seen the light of the day. I am also very thankful to JEEVAN JYOTI (HOD OF MBA DEPTT.) for their kind co-operation to complete this report. I would like to thank the people who took their time to help me to complete this project. I would like thanking to my friends who were of immense help to me. Last but not the least; I would like to thank my parents who were source of support throughout the making of the report.

____________________ MBA 3rd semester MIMIT Malout

PREFACE As a part of the two degree course of M.B.A, we need to undergo Summer Training for 6 weeks in the beginning of 3rd Semester. Practical Summer Training is significantly different from the college studies .College Studies are more oriented towards the theory. But in our training period we are more involved in the Practical works. We work as if we are M.B.A in the field and if that work is given to us how we have tackled it i.e., the main objective of the Practical Summer Training is to make us well conversant with the Practical Aspects of the Management profession. I was given the project on TO STUDY GREEN MARKETING IN OM GRC INFOTECH Pvt.ltd in Chandigarh circle in INDIA.

I hope that the conclusions arrived at and the recommendations will help the company to increase the revenue and help in providing better services to the customers.

TABLE OF CONTENT S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15. CHAPTER CERTIFICATE OF SUPERVISOR DECELARATION ACKNOWLEDGEMENT PREFACE SECTOR PROFILE COMPANY PROFILE OBJECTIVES OF THE STUDY INTRODUCTION GREEN MARKETING CONCEPT GOLDEN RULES OF GREEN MARKETING GREEN WORKS AND GREEN CONSUMER RESEARCH METHODOLOGYAND FINDINGS CONCLUSION AND FUTURE ASPECTS QUESTIONAIRE AND REFERENCES BIBLIOGRAPHY PAGE.NO 1 2 3 4 6-9 10-18 19 20-23 24-55 56-87 88-118 119-131 132-137 138-140 141

Information Technology

The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The ITITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the ITITES sector, contributing substantially to increase in GDP, employment, anSSd exports. The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012.. According to NASSCOM, the ITBPO sector in India aggregated revenues of US$100 billion in FY2012, where export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%. Bangalore is leading IT exporter. Export dominate the ITITES industry, and constitute about 77% of the total industry revenue. Though the IT ITES sector is export driven, the domestic market is also significant with a robust revenue growth. The industrys share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies. The industry continues to be a net employment generator - expected to add 230,000 jobs in FY2012. Generally dominant player in the global outsourcing sector. However, the sector continues to face challenges of competitiveness in the globalized world, particularly from countries like China and Philippines.

The recent global financial crises have deeply impacted the Indian IT companies as well as global companies. As a result hiring has dropped sharply, and employees are looking at different sectors like the financial service, telecommunications, and manufacturing industries, which have been growing phenomenally over the last few years. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. The first software export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 80s. The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories. In 1968 Tata Consultancy Services established in SEEPZ, Mumbai by the Tata Groupwere the country's largest software producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru the economically beleaguered country was able to build a large scientific workforce, third in numbers only to that of the United States of America and the Soviet Union. On 18 August 1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N. R. Sarkar. Relaxed immigration laws in the United States of America attracted a number of skilled Indian professionals aiming for research. By 1960 as many as 10,000 Indians were estimated to have settled in the US. By the 1980s a number of engineers from India were seeking employment in other countries. In response, the Indian companies realigned wages to retain their experienced staff.

Big Five IT Services companies .

Firm

Revenues Employees

Fiscal Year

India Headquarters

TCS

$10.17 billion Technology $7.05 billion

254,076

2012

Mumbai

Cognizant Solutions

185,045

2012

Chennai

Wipro

$5.73 billion

140,569

2012

Bangalore

Infosys

$6.69 billion

153,761

2012

Bangalore

HCL Technologies

$4.3 billion

85,335

2012

Noida

Major IT Hubs Rank City Description Popularly known as the Silicon Valley of India and leading 1 Bangalore software exporter from India. Bangalore is considered to be a global technology hub of India. Chennai is the second largest exporter of IT and ITES of India, and 2 Chennai is the BPO hub of India. Chennai has the largest operations centers of TCS, andCognizant. Hyderabad is a major it hub in India which is also known as 3 Hyderabad Cyberabad which consists of many Multinational such

corporation companies

as Google,Facebook, Microsoft, Amazon and Electronic Arts, etc. The Financial capital of India, but recently many IT companies have established offices. The National Capital Region comprising Delhi, Gurgaon and Noida are clusters of software development. Major Indian and International Firms present in Pune. Pune is also C-DAC Head-Quarter. One of the largest cities in India, Kolkata contributes significantly to IT exports. IBM has second largest headcount after Bangalore, 7 Kolkata Cognizant has second largest headcount after Chennai and TCS has third largest headcount after Chennai & Mumbai. Other significant players here are Wipro and Capgemini while other biggies have also opened shop here except Infosys.

Mumbai

Delhi

Pune

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The capital of Kerala, now houses all major IT companies 8 Thiruvanathapuram including Oracle, TCS, Infosys, and contributes in IT export of India

Company Profile:

GRC InfoTech Pvt. Ltd., is professional web development, Industrial Training and Consultancy company based in Chandigarh (India). We focus the needs of our clients to provide 100% satisfaction. Our company is involved in providing web design and web development services, software design and development and Search Engine

Optimization. We are prepared and educated to better provide a face for your business on the Internet. GRC India based Website and Development Company in India providing job oriented software training and Live projects for MCA, BCA, B-TECh, M.TECH, MSC-IT and BSC-IT Students. Industrial Training Services in: Six Weeks Industrial Training for B.Tech and MCA Students. Six months Industrial Training for B.Tech and MCA Students.

GRC is providing education & Training to the B-Tech students and MCA students evaluate them during their 6 weeks and 6 months and then shortlist the deserving students for recruitment in Our Company and other companies in India. Diversified range of latest technologies from software (ASP.NET, Java, C/C++,Php ,CCNA and Networking).

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Development Services in: Web Designing Web Development Search Engine Optimization Search Engine Marketing Google Indexing

Websites made by OM GRC InfoTech Pvt Ltd: www.icseindia.org www.dpsyamunanagar.com www.gowthcatalyst.in www.pacl.clanteam.com www.aryanworldwideholidays.com www.frenzytechnologies.com www.zevraatjewellry.com www.thesinglacomputers.com www.bittusatoz.com www.pbplaygame.com

Languages &Development Environment: 1. C 2. C++ 3. .Net 4. JAVA 5. PHP

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In computing, C is a general-purpose programming language initially developed by Dennis Ritchie between 1969 and 1973 at AT&T Bell Labs. Like most imperative languages in the ALGOL tradition, C has facilities for structured programming and allows lexical variable scope and recursion, while a static type system prevents many unintended operations. Its design provides constructs that map efficiently to typical machine instructions, and therefore it has found lasting use in applications that had formerly been coded in assembly language, most notably system software like the Unix computer operating system.

C is one of the most widely used programming languages of all time,and C compilers are available for the majority of available computer architectures and operating system. The initial development of C occurred at AT&T Bell Labs between 1969 and 1973 according to Ritchie, the most creative period occurred in 1972. It was named "C" because its features were derived from an earlier language called "B", which according to Ken Thompson was a stripped-down version of the BCPL programming language.

The origin of C is closely tied to the development of the UNIX operating system, originally implemented in assembly language on a PDP-7 by Ritchie and Thompson, incorporating several ideas from colleagues. Eventually they decided to port the operating system to a PDP-11. B's inability to take advantage of some of the PDP-11's features, notably byte addressability, led to the development of an early version of C.

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The original PDP-11 version of the UNIX system was developed in assembly language. By 1973, with the addition of strict types, the C language had become powerful enough that most of the UNIX kernel was rewritten in C. This was one of the first operating system kernels implemented in a language other than assembly. (Earlier instances include the Multics system (written in PL/I), and MCP (Master Control Program) for the Burroughs B5000 written in ALGOL in 1961.) Circa 1977, further changes to the language were made by Ritchie and Stephen C. Johnson to facilitate portability of the Unix operating system. Johnson's Portable C Compiler served as the basis for several implementations of C on new platforms. Many later languages have borrowed directly or indirectly from C, including C#, D, Go, Rust, Java, JavaScript, Limbo, LPC, Perl, PHP,Python, and Unix's C shell. The most pervasive influence on these languages (excluding Python) has been syntactical, and they tend to combine the recognizable expression and statement syntax of C with underlying type systems, data models, and semantics that can be radically different. C++ started as a preprocessor for C and is currently nearly a superset of C.

C is an imperative (procedural) language. It was designed to be compiled using a relatively straightforward compiler, to provide low-level access to memory, to provide language constructs that map efficiently to machine instructions, and to require minimal run-time support. C was therefore useful for many applications that had formerly been coded in assembly language, such as in system programming.

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C++ is one of the most popular programming languages and is implemented on a wide variety of hardware and operating system platforms. As an efficient compiler to native code, its application domains include systems software, application software, device drivers, embedded software, high-performance server and client applications, and entertainment software such as video games.Several groups provide both free and proprietary C++ compiler software, including the GNU Project, LLVM, Microsoft, Intel and Embarcadero Technologies. C++ has greatly influenced many other popular programming languages, most notably Cand Java. Other successful languages such as Objective-C use a very different syntax and approach to adding classes to C. Creater of c++ Bjarne Stroustrup, a Danish and British trained computer scientist, began his work on "C with Classes" in 1979.The idea of creating a new language originated from Stroustrup's experience in programming for his Ph.D. thesis. Stroustrup found that Simula had features that were very helpful for large software development, but the language was too slow for practical use, while BCPL was fast but too low-level to be suitable for large software development. When Stroustrup started working in AT&T Bell Labs, he had the problem of analyzing the UNIX kernel with respect to distributed computing. Remembering his Ph.D. experience, Stroustrup set out to enhance the C language with Simula-like features. C was

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chosen because it was general-purpose, fast, portable and widely used. Besides C and Simula, some other languages that inspired him were ALGOL 68, Ada, CLU and ML. At first, the class, derived class, strong typing, inlining, and default argument features were added to C via Stroustrup's C++ to C compiler, Cfront. The first commercial implementation of C++ was released on 14 October 1985.

The definition of an extensive standard library makes a difference to the way C++ concepts can be presented. As before, this book presents C++ independently of any particular implementation, and as before, the tutorial chapters present language constructs and concepts in a bottom up order so that a construct is used only after it has been defined. However, it is much easier to use a well-designed library than it is to understand the details of its implementation. Therefore, the standard library can be used to provide realistic and interesting examples well before a reader can be assumed to understand its inner workings. The standard library itself is also a fertile source of programming examples and design techniques.

The domain name net is a generic top-level domain (gTLD) used in the Domain Name System of the Internet. The name is derived from network, indicating its originally intended purpose was for organizations involved in networking technologies, such as Internet service providers and other infrastructure companies. However, restrictions were never enforced and the domain is now a general purpose name space. It is still popular with network operators, and is often treated as an alternative to com.

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net is one of the original top-level domains (the other five being com, edu, gov, mil, and org) despite not being mentioned in RFC 920, having been created in January 1985. As of 2011, it is the third most popular top-level domain, after .com and .de.

Verisign, the operator of net after acquiring Network Solutions, held an operations contract that expired on 30 June 2005. ICANN, the organization responsible for domain management, sought proposals from organizations to operate the domain upon expiration of the contract. Verisign regained the contract bid, and secured its control over the net registry for another six years.

Java is a general-purpose, concurrent, class-based, object-oriented computer programming language that is specifically designed to have as few implementation dependencies as possible. It is intended to let application developers "write once, run anywhere" (WORA), meaning that code that runs on one platform does not need to be recompiled to run on another. Java applications are typically compiled to bytecode (class file) that can run on any Java virtual machine (JVM) regardless of computer architecture. Java is, as of 2012, one of the most popular programming languages in use, particularly for client-server web applications, with a reported 10 million users. Java was originally developed by James Gosling at Sun Microsystems (which has since merged into Oracle Corporation) and released in 1995 as a core component of Sun Microsystems' Java platform.

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The language derives much of its syntax from C and C++, but it has fewer low-level facilities than either of them. The original and reference implementation Java compilers, virtual machines, and class libraries were developed by Sun from 1991 and first released in 1995. As of May 2007, in compliance with the specifications of the Java Community Process, Sun relicensed most of its Java technologies under the GNU General Public License. Others have also developed alternative implementations of these Sun technologies, such as the GNU Compiler for Java and GNU Classpath.

PHP development began in 1994 when the developer Rasmus Lerdorf wrote a series of Common Gateway Interface (CGI) Perl scripts, which he used to maintain his personal homepage. The tools performed tasks such as displaying his rsum and recording his web traffic. He rewrote these scripts in C for performance reasons, extending them to add the ability to work with web forms and to communicate with databases and called this implementation "Personal Home Page/Forms Interpreter" or PHP/FI. PHP/FI could be used to build simple, dynamic web applications. Lerdorf initially announced the release of PHP/FI as "Personal Home Page Tools (PHP Tools) version 1.0" publicly to accelerate bug location and improve the code, on the comp.infosystems.www.authoring.cgi Usenet discussion group on June 8, 1995. This release already had the basic functionality that PHP has today. This included Perl-like variables, form handling, and the ability to embed HTML. The syntax 18

was similar to Perl but was more limited and simpler, although less consistent. A development team began to form and, after months of work and beta testing, officially released PHP/FI 2 in November 1997. Zeev Suraski and Andi Gutmans rewrote the parser in 1997 and formed the base of PHP 3, changing the language's name to the recursive acronym PHP: Hypertext Preprocessor. Afterward, public testing of PHP 3 began, and the official launch came in June 1998. Suraski and Gutmans then started a new rewrite of PHP's core, producing the Zend Engine in 1999.

OBJECTIVES OF STUDY

The main objective of the study is first to gain some practical knowledge regarding functioning of the organizations which is very necessary to fully understand the primary functions & hence it fulfill the purpose of the Summer Internship under M.B.A course.

The other objectives were: 1. To study the importance of Green Marketing. 2. To study the roles of Green Marketing. 3. To study the process and functions of Green Marketing. 4. To study the different types of methods/techniques used to evaluate Green Marketing. 5. To study the level of evaluation..

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Green marketing concept

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Introduction 'I'll go out for a breath of fresh air' is an often-heard phrase. But how many of us realize that this has become irrelevant in today's world, because the quality of air in our cities is anything but fresh.The moment you step out of the house and are on the road you can actually see the air getting polluted; a cloud of smoke from the exhaust of a bus, car, or a scooter; smoke billowing from a factory chimney, flyash generated by thermal power plants, and speeding cars causing dust to rise from the roads. Natural phenomena such as the eruption of a volcano and even someone smoking a cigarette can also cause air pollution. Air pollution is aggravated because of four developments: increasing traffic, growing cities, rapid economic development, and industrialization. The Industrial Revolution in Europe in the 19th century saw the beginning of air pollution as we know it today, which has gradually become a global problem. Air pollution is nothing new. Ever since the discovery of fire, lessthan-desirable substances have been vented into the air. Every Govt. is trying to minimize this problem. But regardless of the efforts, air pollution continues to be a serious local and world-wide problem. Although environmental issues influence all human activities, few academic disciplines have integrated green issues into their literature. This is especially true of marketing. As society becomes more concerned with the natural environment, businesses have begun to modify their behavior in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like "Green Marketing" and "Environmental Marketing" appear frequently in the popular press. Many governments around the world have become so concerned about green marketing activities that they have attempted to regulate them .For example, in the United States (US) the Federal Trade Commission and the National Association of Attorneys-General have developed extensive documents examining green marketing issues. 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

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existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. Green, environmental and eco-marketing are part of the new marketing approaches which do not just refocus, adjust or enhance existing marketing thinking and practice, but seek to challenge those approaches and provide a substantially different perspective. In more detail green, environmental and eco-marketing belong to the group of approaches which seek to address the lack of fit between marketing as it is currently practiced and the ecological and social realities of the wider marketing environment. 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. This Commission is expected to do an overall review of this guidance, and the legal standards it contains, in 2012. Green marketing is a phenomenon which has developed particular important in the modern market. This concept has enabled for the re-marketing and packaging of existing products which already adhere to such guidelines. Additionally, the development of green marketing has opened the door of opportunity for companies to co-brand their products into separate line, lauding the green-friendliness of some while ignoring that of others. Such marketing techniques will be explained as a direct result of movement in the minds of the consumer market. As a result of this businesses have increased their rate of targeting consumers who are concerned about the environment. These same consumers through their concern are interested in integrating environmental issues into their purchasing decisions through their incorporation into the process and content of the marketing strategy for whatever product may be required. This paper discusses how businesses have increased their rate of targeting green consumers, those who are concerned about the environment and allow it to affect their purchasing decisions. The paper identifies the three particular segments of green consumers and explores the challenges and opportunities businesses have with green marketing. The paper also examines the present trends of green marketing in India and describes the reason why companies are adopting it and future of green marketing and concludes that green marketing is something that will continuously grow in both practice and demand.

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WHAT EXACTLY IS GREEN MARKETING According to 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. Other similar terms used are Environmental Marketing and Ecological Marketing. The term green marketing came into prominence in the late 1980s and early 1990s. The American Marketing Association (AMA) held the first workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing" So the definition which encompasses all major components of other definitions is: "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.

Evolution of Green Marketing 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. HISTORY

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The term Green Marketing came into prominence in the late 1980s and early 1990s. The American Marketing Association (AMA) held the first workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing". The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view on the company's environmental impact. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting the needs of the present without compromising the ability of future generations to meet their own need, this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. Two tangible milestones for wave 1 of green marketing came in the form of published books, both of which were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America. According to Jacquelyn Ottman, (author of "The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding" (Greenleaf Publishing and Berrett-Koehler Publishers, February 2011)) from an organizational standpoint, environmental considerations should be integrated into all aspects of marketing new product development and communications and all points in between. The holistic nature of green also suggests that besides suppliers and retailers new stakeholders be enlisted, including educators, members of the community, regulators, and NGOs.Environmental issues should be balanced with primary customer needs. 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 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 favor 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 consensusby consumers, marketers, activists, regulators, and influential peoplehas 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. Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern has led more companies to advertise their commitment to reduce their climate impacts, and the effect this is having on their products and services

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Why Green Marketing? 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 behavior. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. WHY GREEN MARKETING? It is really scary to read these pieces of information as reported in the Times recently: "Air pollution damage to people, crops and wildlife in US. Total tens of billions of dollars each year". "More than 12 other studies in the US, Brazil Europe, Mexico, South Korea and Taiwan have established links between air pollutants and low birth weight premature birth still birth and infant death". 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 behavior. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. Thus the growing awareness among the consumers all over the world regarding protection of the environment in which they live, People do want to bequeath a clean earth to their

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Framework Ecological Marketing Ecological marketing was based on the idea that environmental protection and resource conservation can be better advanced through less regulation by the public sector and more enterprise in the private sector. This idea, in turn, is based on the premise that the ecologically concerned consumer is a legitimate but largely unused market segment one that is identifiable, accessible and measurable. In the 1970s the importances of a small number of environmental issues like oil use or pollution for a narrow range of industries (for example cars and chemicals) was framed as something that was relevant to engineers, lawyers and marketers within companies. Originally proposed at the American Marketing Association first conference on ecological marketing in 1975, the idea was compatible with the antiregulatory mood of these days in the U.S. It found support at the 1979 conference, who felt that government and business should strike a better balance in the division of responsibility for the management of negative social externalities.

Green/ environmental marketing Unfortunately, a majority of people believe that ecological (green) marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things 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. Thus, green marketing incorporates a broad range of activities, including product modification, changes

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of the production process, packaging changes, as well as modifying advertising. Green marketing came into prominence in the late 1980s and early 1990s, it was first discussed much earlier. The American Marketing Association (short: AMA) held the first workshop on Ecological Marketing in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled Ecological Marketing. According to Dainora Grundey and Rodica Milena Zaharia 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 harmful impact on the natural environment .

Greenhouse gas reduction market The emerging greenhouse gas reduction market can potentially catalyze projects with important local environmental, economic, and quality-of-life benefits. The Kyoto Protocols Clean Development Mechanism (CDM), for example, enables trading between industrial and developing nations, providing a framework that can result in capital flows to environmentally beneficial development activities. Although the United States is not participating in the Kyoto Protocol, several US programs enable similar transactions on a voluntary and regulatory basis. While international trade in greenhouse gas reductions holds substantial promise as a source of new funding for sustainable development, this market can be largely inaccessible to many smaller-scale projects, remote communities, and least developed localities. To facilitate participation and broaden the benefits, several barriers must be overcome, including: a lack of market awareness among stakeholders and prospective participants; specialized, somewhat complicated participation rules; and the need for simplified participation mechanisms for small projects, without which transaction costs can overwhelm the financial benefits of participation. If the barriers are adequately addressed, greenhouse gas trading can play an important role supporting activities that benefit peoples lives and the environment.

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Adoptability In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more for ecologically compatible products. By 1991, environmentally conscious individuals were willing to pay between 15-20 percent more for green products Today, more than one-third of Americans say they would pay a little extra for green products An important challenge facing marketers is to identify which consumers are willing to pay more for environmentally friendly products. It is apparent that an enhanced knowledge of the profile of this segment of consumers would be extremely useful. Everett Rogers, communication scholar and author of Diffusion of Innovations, claims that the following five factors can help determine whether a new idea will be adopted or not, including the idealism of the shift towards green: 1. Relative advantage: is the degree to which the new behavior is believed to accrue more beneficial outcomes than current practice. 2. Observability: is how easy it is to witness the outcomes of the new behavior. 3. Trialability: is the ease with which the new behavior can be tested by an individual without making a full commitment. 4. Compatibility: is the degree to which the new behavior is consistent with current practice. 5. Complexity: is how difficult the new behavior is to implement.

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NMI'S 2007 US LOHAS CONSUMER SEGMENTATION MODEL


(% GENERAL POPULATION IN NMI DEFINED CONSUMER SEGMENT)

lohas naturalites drifters conventionals unconcerned

GOLDEN RULES OF GREEN MARKETING 1. Know your Customer : Make sure that the consumer is aware of and concerned about the issues that your product attempts to address, (Whirlpool learned the hard way that consumers wouldn't pay a premium for a CFC-free refrigerator because consumers dint know what CFCs were.). 2. Educating your customers: isn't just a matter of letting people know you're doing whatever you're doing to protect the environment, but also a matter of letting them know 29

why it matters. Otherwise, for a significant portion of your target market, it's a case of "So what?" and your green marketing campaign goes nowhere. 3.Being Genuine & Transparent: means that a) you are actually doing what you claim to be doing in your green marketing campaign and b) the rest of your business policies are consistent with whatever you are doing that's environmentally friendly. Both these conditions have to be met for your business to establish the kind of environmental credentials that will allow a green marketing campaign to succeed. 4.Reassure the Buyer: 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. 5.Consider Your Pricing: If you're charging a premium for your product-and many environmentally preferable products cost more due to economies of scale and use of higher-quality ingredients-make sure those consumers can afford the premium and feel it's worth it. 6.Giving your customers an opportunity to participate: means personalizing the benefits of your environmentally friendly actions, normally through letting the customer take part in positive environmental action 7.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 pocket friendly and also to help reduce the environmental impact in their own lives too. Benefits of Green Marketing Green marketing offers business bottom line incentives and top line growth possibilities. While modification of business or production processes may involve start-up costs, it will save money in the long term. For example the cost of installing solar energy is an investment in future energy cost savings. Companies that develop new and improved products and services with environmental impacts in mind give themselves access to new markets, substantially increase profits and enjoy competitive advantages over those marketing non-environmentally responsible alternatives.

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What Makes Marketing Green? But you cant really market your business or your product as green without managing how your company functions with respect to the environment. Green marketing can take many forms. For instance, you may market eco-friendly aspects such as: Operational sustainability: Service companies and manufacturers can improve operational sustainability by reducing everyday energy and water consumption, minimizing pollution, using greener materials and processes, and properly managing waste. Green products: Companies producing products can do many things to improve the green factor of their offerings, including choosing sustainable materials, designing products to save energy and water, and making products that are less toxic and more natural than competitors goods. Greener products will also be packaged in an eco friendly manner and will be made to be easily recycled or composted. Sustainable marketing: Youll also want to ensure that the actual marketing systems you use are green, which is really distinct from your operational sustainability which focuses on manufacturing and production. For instance, when printing marketing materials, use 100% post-consumer recycled paper made without chlorine (called processed chlorine free) and printed using plant-based dyes (like soy inks). You could also investigate tools like green web hosting, carbon offsets for any marketing emissions you may cause, recycling any unused materials from billboards and signage, ecological packaging, and so on. Environmental causes: Any organization can choose to promote environmental causes. Nonprofits and NGOs will engage in green marketing to get the word out about their activities, but for-profits can also suppose environmental causes by making donations and advertising for these environmental do-gooders as part of a green marketing campaign.

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WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS?

Most of the companies are venturing into green marketing because of the following reasons Adoption of Green Marketing There are basically five reasons for which a marketer should go for the adoption of green marketing. They are Opportunities or competitive advantage Corporate social responsibilities (CSR) Government pressure Competitive pressure Cost or profit issues

1. OPPORTUNITIES OR COMPETITIVE ADVANTAGE

In India, around 25% of the consumers prefer environmental-friendly products, and around 28% may be considered healthy conscious. There fore, green marketers have diverse and fairly sizeable segments to cater to. The Surf Excel detergent which saves water (advertised with the message"do bucket paani roz bachana") and the energysaving LG consumers durables are examples of green marketing. 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. In a 1992 study of 16 countries, more than 50% of consumers in each country, other than Singapore, indicated they were concerned about the environment .A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment. A further 80% of this sample indicated that they had modified their behavior, including their purchasing behavior, due to environmental reasons .As demands change, many firms see these changes as an opportunity to be exploited. Given these figures, it can be assumed that firms marketing goods with environmental characteristics will have a competitive advantage over firms marketing non-environmentally responsible alternatives. There are numerous examples of firms who have strived to 33

become more environmentally responsible, in an attempt to better satisfy their consumer needs. * McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. * Tuna manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins. * Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products.

* Toyota Prius

For lots of good reasons, it's likely the most successful "green" product in the US. It provides consumers with all they seek in a sedan and moreattractive styling, fuel efficiency, the ability to drive for an unlimited amount of miles only stopping for fill-ups (versus, for instance, having to stop for a 12-hour recharge if the engine were only electric), and because of the hybrid engine, a quiet ride, since the car doesn't idle at stoplights. The car's dashboard comes with an unusual feature: a screen that lets the driver know which of the two engines is in use and how efficiently fuel is being used at any given moment; according to anecdotes, Prius owners try to beat their previous record each time they drive! When the car was introduced, ads focused on superior performance evidenced by a quiet ride, and supplemental ads touted its environmental bona fides. With energy prices on the rise, the Prius is now being marketed for its superior fuel efficiency, and a PR machine fuels efforts to link the car to environmentally conscious celebrities and causes. Some owners, it is reported, even buy the car for what is being called "Conspicuous Conservation" letting all know that they are environmentally astute. This is not to imply that all firms who have undertaken environmental marketing activities actually improve their behavior. In some cases firms have misled consumers in an attempt

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to gain market share. In other cases firms have jumped on the green bandwagon without considering the accuracy of their behavior, their claims, or the effectiveness of their products. This lack of consideration of the true "greenness" of activities may result in firms making false or misleading green marketing claims. 2. SOCIAL RESPONSIBILITY 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. While this behavior is a competitive advantage, the firm was established specifically to offer consumers environmentally responsible alternatives to conventional cosmetic products. This philosophy is directly tied to the overall corporate culture, rather than simply being a competitive tool. 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 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 neighbor. Says David North, Tescos 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. 35

friendly Many companies have started realizing that they must behave in an well as profit related objectives. The HSBC became the world's first bank to go carbon-neutral last year. Other examples include Coca-Cola, which has invested in various recycling activities. Walt Disney World in Florida, US, has an extensive waste management program and infrastructure in place. 3. GOVERNMENTAL 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, 1) reduce production of harmful goods or by-products; 2) modify consumer and industry's use and/or consumption of harmful goods; or 3) ensure that all types of consumers have the ability to evaluate the environmental composition of goods. Governments establish regulations designed to control the amount of hazardous wastes produced by firms. California's Republican Gov. Arnold Schwarzenegger met with British Labour Prime Minister Tony Blair to promote the idea of transatlantic carbon emissions market. He also wants to reduce his state's greenhouse gas emissions to 80% below 1990 levels by 2050. In Germany the Greens and the conservatives recently agreed to join forces to run the city govt. of Frankfurt, the first such coalition in country's history. Many by-products of production are controlled through the issuing of various environmental licenses, thus modifying organizational behavior. In some cases governments try to "induce" final consumers to become more responsible. For example, some governments have introduced voluntary curb-side recycling programs, making it easier for consumers to act responsibly. In other cases governments tax individuals who act in an irresponsible fashion. For example in Australia there is a higher gas tax associated with leaded petrol.

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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. In addition to these guidelines many States in the US have introduced legislation to control various environmental marketing activities. Investment analysts are starting to see the environmental awareness of managers as a barometer of the likely long term success of their companies. Green policies, they say, tend to indicate hands on management, high consumer confidence and good corporate governance. HSBC won't do deals with cos. on projects like oil pipelines through Russia, that don't measure up to their environmental, social and governance standards Various regulations rare framed by the government to protect consumers and the society at large. The Indian government too has developed a framework of legislations to reduce the production of harmful goods and by products. These reduce the industry's production and consumers' consumption of harmful goods, including those detrimental to the environment; for example, the ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc. 4. 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 behaviors and attempt to emulate this behavior. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its

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detrimental environmental behavior. 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 suit The green marketing initiatives by niche companies such as Body Shop and Green & Black have prompted many mainline competitors to follow suit.

5. COST OR PROFIT ISSUES 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. 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. * Philips Light's CFL Philips Lighting's first shot at marketing a standalone compact fluroscent 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 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. Cost-Reduction 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

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power plants, which would otherwise contributed to a gigantic quantum of solid waste, is used to manufacture fly ash bricks for construction purposes.

GREEN MARKETING STRATEGIES V/S Conventional Marketing

Green Marketing

Conventional Marketing

Consumers

Human beings withlives

Consumers with lifestyles

Products

Cradle-to cradle flexible cradle-to-gave services all products

one

size

fits

for

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Marketing And Educational values Communication

Selling oriented and benefits

Corporate

Proactive,interdependent,co operative, holistic,long term

Receptive,independent,competitive,dep artmentalized,short term oriented profit maximizing.

Green Marketing Mix Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of marketing mix. The 4 P's of green marketing are that of a conventional marketing but the challenge before marketers is to use 4 P's in an innovative manner. The four Ps of green marketing Like conventional marketers, green marketers must address the 'four Ps' in innovative ways. 1. 2. 3. 4. Product. Price. Place. Promotion.

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A model of a green marketing-mix should, of course, contain all 4Ps: 1-Product : A producer should offer ecological products which not only must not contaminate the environment but should protect it and even liquidate existing environmental damages. Entrepreneurs wanting to exploit emerging green markets will 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, Printpoint, 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.

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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 is thoroughly tested. 2-Price: Prices for such products may be a little higher than conventional alternatives. But target groups like for example LOHAS are willing to pay extra for green products. Pricing is a 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 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 : A distribution logistics is of crucial importance; main focus is on ecological packaging. Marketing local and seasonal products e.g. vegetables from regional farms is more easy to be marketed green than products imported. The choice of where and when to make a product available will have significant impact on the customers you attract. Very few customers will 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 you want to project and allow you to project your own image rather than being dominated or compromised by the image of the venue. The location must differentiate you from your 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: A communication with the market should put stress on environmental aspects, for example that the company possesses a CP certificate or is ISO 14000 certified. This may be publicized to improve a firms image. Furthermore, the fact that a company spends expenditures on environmental protection should be advertised. Third, sponsoring the natural environment is also very important. And last but not least, ecological products will probably require special sales promotions. Promoting products and services to target 42

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, for example those produced by Land care Australia, Clean Up Australia and Planet Ark, 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. Publicize stories of the company's and employees' green initiatives. Enter environmental awards programs to profile environmental credentials to customers and stakeholders Additional Social Marketing "P's" that are used in this process are as followed :

Publics-- Effective Social Marketing knows its audience, and can appeal to multiple groups of people. "Public" is the external and internal groups involved in the program. External publics include the target audience, secondary audiences, policymakers, and gatekeepers, while the internal publics are those who are involved in some way with either approval or implementation of the program. Partnership-- Most social change issues, including "green" initiatives, are too complex for one person or group to handle. Associating with other groups and initiatives to team up strengthens the chance of efficacy. Policy--Social marketing programs can do well in motivating individual behavior change, but that is difficult to sustain unless the environment they're in supports that change for the long run. Often, policy change is needed, and media advocacy programs can be an effective complement to a social marketing program. Purse Strings-- How much will this strategic effort cost? Who is funding the effort?

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The level of greening-strategic, quasi-strategic, or tactical dictates exactly what activities should be under-taken by a company. Strategic greening in one area may or may not be leveraged effectively in others. A firm could make substantial changes in production processes but opt not to leverage them by positioning itself as an environmental leader. So although strategic greening is not necessarily strategically integrated into all marketing activities, it is nevertheless strategic in the product area.

Green marketing activities

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GREEN MARKETING PROCESS COMPONENTS

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xternal Green Ps Paying customers Providers Politicians Pressure groups Problems Predictions Partners

Internal Green Ps Products Promotion Price Place Providing information Processes Policies

GREEN MARKETING

The Ss of Green Success Satisfaction of stakeholder needs Safety of products and Govt. Green Initiatives processes Social acceptability of500,000 the A clutch of Indian cities with a population of over will soon show case the government's ambitious project to promote public transport across the country. The pilot company projects, to be carried out in select cities, will either be government funded or based on the Sustainability of its public-private partnership model, depending on the merit of each case. State governments are expected to pool in their resources to support the initiative. The Ministry of Urban activities Development has invited proposals to promote sustainability of habitats. Green travel Habits, including popularizing the international concept of the shared bicycle scheme and shift towards public transport, would form the core of the project. Among the steps that the government is looking at is introduction of a common mobility card to be used for all modes of travel - metro rail, bus rapid transit system (BRTS), city buses and suburban railway. The same card will be used for parking and toll also. Under the National Mission for Sustainable Habitat (NMSH), the project will be taken up in some of the cities where Metro Railway and BRTS are already in place or are under implementation. The public bicycle scheme is yet another major being planned for the demo project across the select cities. A standard feature in most international cities, the scheme is about making bicycles available for shared use by individuals who do not own them. Publicly-shared bicycles are a mobility service,

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mainly useful in urban environment for proximity travels. Barcelona's Bicing scheme and London's Boris Bikes are especially popular. Besides, a passenger information system is being planned at bus stations in these cities where electronic display boards would show the next time of the arrival of buses. According to the Ministry of urban development coordination to several states, information on bus arrival time would also be offered through

PATHS TO GREENNESS Green marketing involves focusing on promoting the consumption of green products. Therefore, it becomes the responsibility of the companies to adopt creativity and insight, and be committed to the development of environment-friendly products. This will help the society in the long run. Companies which embark on green marketing should adopt the following principles in their path towards greenness.

Adopt new technology/ Process or modify existing technology/ Process so as to reduce environmental impact. Establish a management control system that will lead to adherence of stringent environmental safety norms. Explore possibilities of recycling of the used products so that it can be used to offer similar or other benefits with less wastage. Using more environment-friendly raw materials at the production stage itself. Strategies

The marketing strategies for green marketing include: Marketing Audit (including internal and external situation analysis) Develop a marketing plan outlining strategies with regard to 4 P's Implement marketing strategies 47

Strengths & Problems of Green Marketing

Strengths and Problems of Green Marketing GREEN MARKETING DOES LEAD TO SUCCESS BENEFITS OF GREEN MARKETING 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. Some of the advantages of green marketing are,

It ensures sustained long-term growth along with profitability. It saves money in the long run, thought initially the cost is more. It helps companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying competitive advantage. Most of the employees also feel proud and responsible to be working for an environmentally responsible company. 48

Green marketing is not a theoretical concept only. A lot of firms are using this concept to consolidate their market positions. A few examples are

Tesco is pumping $200mn into environmental technologies to reduce the amount of energy they use by 50% compared with 2000 levels, by 2010.In addition to building 80 new eco stores across Britain over the next year the greenest of which will be constructed of recycled materials and will burn food waste for electricity-they are also making small changes that could have big results. They are paying customers not to use plastic bags which they expect would cut consumption by 25% in two years. Renewable Energy Corp.,a Norwegian Solar energy company, had the world's largest ever renewable energy IPO in may. $30 mn is what Goldman Sachs invested in Canadian alternative-fuels company Logen. It was one of the several green ventures for ex-Goldman and Nature Conservancy head Henry Paulson, US Treasury secy. According to a recent report from the climate group, an international environmental charity, 43 multinationals including Bayer, Dupont saved a combined $11.6 bn last year by improving energy efficiency, reducing waste output and harnessing solar power.

GE's ECOIMAGINATION campaign to cut carbon emissions, partly by selling low emissions products ranging from power plants to fluorescent light bulbs have raked in $10.1 bn in 2005 as compared with $6.2 bn in 2004.

The World's two largest insurance cos. Swiss Re and Munich Re are now taking cos. policies on climate change into consideration when determining risks. Similarly In Japan about 800 cos. annually publish reports explaining how they plan to cut carbon emissions and make their products and factories greener. GE signed a deal of $10 bn with British Petroleum to develop hydrogen power plants that will capture carbon and bury it underground so it doesn't lead to global warming. Goldman Sachs has invested more than $ 1bn in renewable energy sources, including biofuels

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Markets are also beginning to recognize that cos. that do not do right by Mother Nature may have more volatile stock prices. Goldman sachs' ESG (Environmental, Social and Governance) Index now ranks the world's largest cos. based on how environmentally friendly their operations are. Some of the Venture Capitalists who bankrolled the dot com boom of 1990s now see alternative forms of energy as next big thing. Vinod khosla, the silicon valley venture capitalist who got big and early with Google and Amazon, is now betting $50mn of his dot com cash on next generation ethanol. Venture capital investment in renewable energy cos. was up 36 % last year to a record $739mn. The wilder Hill Clean Energy Index which charts 40 alternative energy firms has risen 485 since its 2004 debut. World's largest wind turbine energy firm, India's Suzlon Energy was 28 times oversubscribed when it launched for $340 mn at the end of last year. Chinese Solar company Suntech power raised $ 400mn in December. Largest venture capital backed IPO in Europe last year was of German renewable energy company Q-cells, which raised $ 400 mn in October. Green marketing of cosmetics and toiletries in Thailand

Use of traditional cosmetics and toiletries manufactured from herbs and plant extracts has been popular in many Asian countries. However, green marketing of these products is rather recent. Encouraged by the growing environmental consciousness on the part of citizens and a growing market for cosmetics and toiletries, several global and local companies have entered Thailand. An international company, The Body Shop, and a local company, Oriental Princess, have employed green marketing strategies to build their customer base in the Thai market. Using case research method and questionnairebased surveys, an attempt has been made in this paper to analyze the green marketing strategies of these companies and their impact on consumer attitudes and brand loyalty. The research shows that that the two companies have made honest attempts to adopt green marketing strategies. However, Thai customers consider non-green attributes more important in making their purchase decisions. The two case companies have been able to create favorable attitudes and enjoy a high degree of brand loyalty

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PROBLEMS OF GREEN MARKETING Many organizations want to turn green, as an increasing number of consumers' ant to associate themselves with environmental-friendly products. Alongside, one also witnesses confusion among the consumers regarding the products. In particular, one often finds distrust regarding the credibility of green products. Therefore, to ensure consumer confidence, marketers of green products need to be much more transparent, and refrain from breaching any law or standards relating to products or business practices No matter why a firm uses green marketing there are a number of potential problems that they must overcome. One of the main problems is that firms using green marketing must ensure that their activities are not misleading to consumers or industry, and do not breach any of the regulations or laws dealing with environmental marketing. For example marketers in the US must ensure their green marketing claims can meet the following set of criteria, in order to comply with the FTC's guidelines. Green marketing claims must;

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*Clearly state environmental benefits; * Explain environmental characteristics; * Explain how benefits are achieved; * Ensure comparative differences are justified; * Ensure negative factors are taken into consideration; and * only use meaningful terms and pictures. Another problem firms face is that those who modify their products due to increased consumer concern must contend with the fact that consumers' perceptions are sometimes not correct. Take for example the McDonald's case where it has replaced its clam shells with plastic coated paper. There is ongoing scientific debate which is more environmentally friendly. Some scientific evidence suggests that when taking a cradle-to-grave approach, polystyrene is less environmentally harmful. If this is the case McDonald's bowed to consumer pressure, yet has chosen the more environmentally harmful option.

When firms attempt to become socially responsible, they may face the risk that the environmentally responsible action of today will be found to be harmful in the future. Take for example the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs (hydro fluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME (dimethyl ether) as an aerosol propellant, which may also harm the ozone layer .Given the limited scientific knowledge at any point in time, it may be impossible for a firm to be certain they have made the correct environmental decision. This may explain why some firms, like Coca-Cola and Walt Disney World, are becoming socially responsible without publicizing the point. They may be protecting themselves from potential future negative backlash; if it is determined they made the wrong decision in the past. While governmental regulation is designed to give consumers the opportunity to make better decisions or to motivate them to be more environmentally responsible, there is difficulty in establishing policies that will address all environmental issues. For example, guidelines developed to control environmental marketing address only a very narrow set of 52

issues, i.e., the truthfulness of environmental marketing claims. If governments want to modify consumer behavior they need to establish a different set of regulations. Thus governmental attempts to protect the environment may result in a proliferation of regulations and guidelines, with no one central controlling body. Reacting to competitive pressures can cause all "followers" to make the same mistake as the "leader." A costly example of this was the Mobil Corporation who followed the competition and introduced "biodegradable" plastic garbage bags. While technically these bags were biodegradable, the conditions under which they were disposed did not allow biodegradation to occur. Mobil was sued by several US states for using misleading advertising claims. Thus blindly following the competition can have costly ramifications. The push to reduce costs or increase profits may not force firms to address the important issue of environmental degradation. End-of-pipe solutions may not actually reduce the waste but rather shift it around. While this may be beneficial, it does not necessarily address the larger environmental problem, though it may minimize its short term affects. Ultimately most waste produced will enter the waste stream, therefore to be environmentally responsible organizations should attempt to minimize their waste, rather than find "appropriate" uses for it. Challenges Ahead 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. Majority of the people are not aware of green products and their uses. Majority of the consumers are not willing to pay a premium for green products. CHALLENGES IN GREEN MARKETING Need for Standardization It is found that only 5% of the marketing messages from Green campaigns are entirely true and there is a lack of standardization to authenticate these claims. There is no standardization to authenticate these claims. There is no standardization currently in place to certify a product as organic. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. A standard quality control board needs to be in place for such labeling and licensing.New 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.

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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.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.

Popularity and effectiveness Ongoing debate: The popularity of such marketing approach and its effectiveness is hotly debated. Supporters claim that environmental appeals are actually growing in numberthe Energy Star label, for example, now appears on 11,000 different companies models in 38 product categories, from washing machines and light bulbs to skyscrapers and homes.

However, despite the growth in the number of green products, green marketing is on the decline as the primary sales pitch for products. (NEEDS CITATION) On the other hand, Ropers Green Gauge shows that a high percentage of consumers (42%)feel that environmental products dont work as well as conventional ones. This is an unfortunate legacy from the 1970s when shower heads sputtered and natural detergents left clothes dingy. Given the choice, all but the greenest of customers will reach for synthetic detergents over the premium-priced, proverbial "Happy Planet" any day, including Earth Day. New reports, however show a growing trend towards green products. Confusion: One challenge green marketers -- old and new -- are likely to face as green products and messages become more common is confusion in the marketplace. "Consumers do not really understand a lot about these issues, and there's a lot of confusion out there," says Jacquelyn Ottman(founder of J. Ottman Consulting and author of "Green Marketing: Opportunity for Innovation.") Marketers sometimes take advantage of this confusion, and

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purposely make false or exaggerated "green" claims. Critics refer to this practice as "green washing". Greenwashing

Corporations are increasingly recognizing the benefits of green marketing, although there is often a thin line between doing so for its own benefit and for social responsibility reasons. The term greenwashing refers to all industries that adopt outwardly green acts with an underlying purpose to increase profits. The primary objective of greenwashing is to provide consumers with the feeling that the organization is taking the necessary steps to responsibly manage its ecological footprint. In reality, the company may be doing very little that is environmentally beneficial The term greenwashing was first used by environmentalist Jay Westerveld when objecting to hotelier's practice of placing notices in hotel rooms which asked their quests to reuse towels to save the environment. Westerveld noted that there was little else to suggest that the hoteliers were interested in reducing their environmental impacts, and that their interest in washing fewer towels seemed to be motivated by a concern to save costs rather than the environment. Since then greenwashing has become a central feature of debates about marketing communications and sustainability, with awards for greenwashing established and numerous campaigns, law and advices developed in an attempt to reduce or curb it.

Green washing can be a somewhat nebulous concept until you start to see the results for yourself. To help paint a picture of some of the bigger greenwashing campaigns of recent history, here are some real world examples of greenwashing youll enjoy: Huggies Pure & Natural diapers: This greenwash campaign by Huggies attempts to convince its customers that the Pure & Natural are better for the environment because theyre made with things like aloe, vitamin E, and organic cotton. While these attributes are definitely greener, disposable diapers in general are thought to be fairly environmentally wasteful by most treehuggers.

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Boeings Airbus380: Here Boeing is attempting to sell their aircraft as eco-friendly (A better environment inside and out) though air travel is generally agreed to be one of the most polluting forms of transportation on the planet. NSW Minerals Council: In Australia, the NSW Minerals Council is selling their industry as one that employs more environmentalists than the entire environment movement, suggesting that their activities must be eco-friendly. Far from it, coal mining is highly destructive, and burning the resultant coal for energy is one of the dirtiest ways to power our society.

Here are some other examples of greenwashing: 1. BP BP Global, have spent millions of dollars in claiming themselves as a green technology leader when in fact, they are responsible for one of the most destructive oil spill in the history of the world. 2. IBM IBM runs advertisements which claim that replacing computers and other computing devices often is a go green practice. Unfortunately these claims are deceiving as discarded computers and other devices have become a serious issue to deal with when it comes to waste management.

3. Sara Lee Sara Lee ran an advertisement for one of their bread products claiming that their new eco grain is sustainable than the normally used organic grain. An organic industry audit agency called them out and asked them to take back their words as the claim was completely unjustified. 4. Southern Company Southern Company is a coal company based in southeastern United States. It ran advertisements in 2010 promoting clean coal. Unfortunately, the concept of clean coal is false. Also Southern Company is known for high carbon dioxide emissions which harm the environment and is one of the reasons of global warming. 5. Shell Shell ran an advertising campaign Lets Go through which they aimed to reposition themselves as an energy company instead of an oil company. These ads implied Shells investment in green technology when in fact; their contribution towards a better

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environment has been devastating. They continue to drill oil at an increasing pace, which is reducing environmental resources every day across the planet. 6. Lexus The car company claimed that its new Hybrid cars have the lowest carbon dioxide emissions in their class. Although the step of Hybrid cars is in the right direction, but Lexus hybrid cars have the worst fuel economy compared to other hybrid cars and even non-hybrids.

Benefit Corporations: In January of 2012, Patagonia became the first brand to register for "Benefit Corporation" status. A benefit corporation is an alternative to its standard counterpart as it operates under the legal premise of 1) creating a positive impact socially and environmentally in its materials, 2) uphold Corporate Social Responsibility in terms of considering its workers, its community, and the environment as well as challenge its current boundaries in those areas, and 3) report its activity as a company as well as its achievements in social and environmental areas publicly using a non-partisan third party source.

Statistics: According to market researcher Mintel, about 12% of the U.S. population can be identified as True Greens, consumers who seek out and regularly buy so-called green products. Another 68% can be classified as Light Greens, consumers who buy green sometimes. "What chief marketing officers are always looking for is touch points with consumers, and this is just a big, big, big touch point that's not being served," says Mintel Research Director David Lockwood. "All the corporate executives that we talk to are extremely convinced that

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being able to make some sort of strong case about the environment is going to work down to their bottom line."

Avoiding Green Myopia The first rule of green marketing is focusing on customer benefits i.e. the primary reason why consumers buy certain products in the first place. Do this right, and motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the green products are priced very high then again it will lose its market acceptability

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GROWING GREEN The Path for developing a sustainable product

Why This Is the Right Time to Go Green? The green movement may be at risk of slowing down, especially within the business community. Many business people hold on to an outdated view of green: the misconception that environmental practices always cost a lot of money. So logically, in this economy they're asking, "Is this really the time for green? Can we really afford it now?" At same time, most of the global discussion about getting the economy on track focuses on the macro picture large stimulus packages at the national and industry level. But how can the economy as a whole get on its feet if individual companies don't as well? I believe that these two questions can we still go green and how do we revive the economy are heavily intertwined. In this time of austerity, sustainability is perhaps even more relevant and will provide a path out of this mess. One of the core pillars of going green

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is doing more with less saving physical and financial resources. So while the instinct may be to pull back from green initiatives in hard times, that would be shortsighted and a huge mistake. Not only companies should put their green efforts on hold, they should accelerate them in targeted ways to save money quickly and prepare for the future. Those who navigate these tricky waters, the best will emerge from the downturn in better shape than their competitors. The reality is that most of the forces driving companies to go green have not gone away in fact, many of these factors have increased despite, or even because of, the economic situation. Environmental crises such as climate change and water shortages continue to evolve. Mega forces such as technology-driven transparency and the long-term mismatch between supply and demand of oil and most critical resources (billions of new consumers and not a lot more stuff in the ground) continue to advance. Closer to home, key stakeholders still demand more of companies than ever, especially corporate customers greening their supply chains (they want to save money right now, and it's pretty easy to demand that your suppliers reduce waste, energy use, and cost). Even your employees, both of whom are under extreme financial pressure, still want a measure of environmental performance and social responsibility in the companies they work for and buy from. In fact, employees may want more green programs as they look for meaning (beyond money) in tough times. Luckily for business, the solutions to both economic and environmental problems overlap heavily. The same strategies and tactics that address long-term environmental challenges will help you survive today's economic conditions. Getting lean, particularly on energy and resources, will save money and reduce carbon impacts (as well as making you more competitive when energy prices inevitably rise again). Thinking through your value chain and getting creative about how you can help your customers manage their environmental impacts and lower their costs will help you grab market share in tough times. And it will likely do much more to address environmental challenges than focusing only on your own environmental impacts. Getting your people engaged around a dual mission save the company money and preserve our collective bounty and assets will help boost morale in tough times and keep your company going strong. In many ways, the economic and environmental challenges are the same. We overleveraged financial resources and overextended ourselves. Isn't that exactly what we're doing with natural resources? Isn't now the right time to cut back where it makes sense, but also to innovate and grow in better, smarter ways?

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Your company's, and our economy's, recovery may depend on how we all handle these multiple challenges at once. We can't afford to tackle them one at a time. Landscape before choosing the green path: Before choosing a strategy to accomplish that, youll have to make assessments in two areas, one external and one internal. The former involves reviewing existing sustainability standards in your industry, the issues surrounding them, the forums in which t heyre discussed, and the roles of key stakeholdersincluding competitorsin driving the debate. Your aim is to determine how much standardization exists in your industry and what opportunities you have to engage in or even reshape the sustainability discussion. For the internal assessment, evaluate your organizations green capabilities, including technical competencies; its ability to generate superior green innovations in products and operations; its credibility as a green company; and current or potential partnerships. The central question you need to answer is Do we have the right resources and competencies to set the sustainability pace for our industry? Four Strategies to Choose From Once you understand both the situation in your industry and your c ompanys capabilities, you can determine which strategy is best: (1) adopt the existing standards; (2) co-opt and modify them to suit your capabilities and processes; (3) define standards for your industry; or (4) break away from existing ones and craft your own PATH TO DEVELOP SUSTAINABLE PRODUCTS PATH 1: ACCENTUATE EXISTING GREEN

Accentuate is a relatively simple strategy when companies have products which emphasis or gives prominence to green standards. This pathway involves finding those green dimensions already in existence throughout the company and then highlighting those in its green portfolio. This path is the easiest and most straightforward, according to Unruh and Ettenson.

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Some companies find it easy to accentuate. For example, Church & Dwights Arm & Hammer baking soda has attributes that were just waiting to be purchased, writes Unruh and Ettenson. The company emphasized the product as the #1 environmentally sensible alternative cleaning and deodorizing product. And, that it has been committed to keeping the environment safe since 1846.It must be carefully gauge how the rest of their portfolio will look by comparison with the accentuated product. Promoting the green attributes of one of companys products can easily raise questions about the rest of its offering. There are, still, some aspects executives have to be careful about. Companies that decide to pursue an accentuate strategy must follow its lead entirely. Activists and environmental experts will not hesitate to correct any green washing or other undesirable corporate behavior when they see it. The broader your brand portfolio, the more exposed you may be to criticism. Most companies are lacking green heritage because most of their products were developed well before sustainability was a concept.

BEST PRACTICES: WHO ACCENTUATES WELL? SUPPLY CHAIN

Nike requires that its leather suppliers not source from clear cut Amazon forests. MANUFACTURING

Frito lays installed solar panel on its sun chips factory.

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PRODUCT

CSX markets rail as the most environmentally friendly option for moving feright. PACKAGING

SARA LEES modified packaging for Hillshire farm has resulted in 900 fewer truck trips a year.

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To evaluate the fit of a given green product strategy , ask the following questions: ACCENTUATE: FIRST STEP YOUR PORTFOLIO Whats our strategic goal? >to leverage latent assets? How will this initiative affect the positioning of and resources for our existing brands? YOUR CUSTOMERS Which consumers in the category are looking for greener products? YOUR COMPETITORS Are our competitors greening their existing product? Do we have environmental skeletons in our current portfolio or business model? RED FLAG

>revitalize existing brands? Does your candidate >broaden appeal to green customers? brand have permission to enter the green space? >gain green credibility? Should our Are there potential green brands in our portfolio? green brand be a stand alone or a strategic brand that puts a green Do we have the resources and capabilities halo on the business as a whole? Can we enhance the value of green in the category? How can we capture a share of voice in the category? How can we exploit our competitors green weaknesses? Can we differentiate our brand?

Will our green claims be credible or are we vulnerable to accusations of green washing?

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needed for this initiative?

PATH 2: ACQUIRE GREEN PRODUCTS If finding existing green attributes is not paying off, the alternative is to acquire or purchase green products or brands. Many high-profile green acquisitions have been made since 2000, including The Body Shop by LOreal, Ben & Jerry by Unilever, and Toms of Maine by Colgate Palmolive. It is usually about a mutual joint venture where the buyer brings the extended channel and distribution capabilities which substantially broaden the green brands customer base of the seller. The issues companies have to be careful about in an acquisition process are the culture clash and strategic fit. When cultures collide any merger or acquisition can stumble. Scrutiny by the green community may undermine the benefits of the acquisition. Even if product sales go well, questions about the new parents green credential may arise. When managers dont pay attention to strategic details integrating the new products into the current portfolio, the acquirer can easily be accused of deliberately destroying a green competitor. Usually successful green brands are attractive targets because they have loyal customer bases and they come with specialized knowledge about eco-friendly innovation and manufacturing, sustainable supply chain management and green market development. BEST PRACTICES: Who acquires well? NEGOTIATIONS

Colgate approached Toms of maine with trust and respect, view the deal as a partnership rather than a takeover. 65

COMPANY INDEPENDENCE

Unilever agreed to keep Ben & Jerrys separate from its U.S. ice-cream business ,with an independent board of directors. INTERNAL COMMUNICATIONS

Toms of Maine assured employees that the acquisition would help Colgate innovate around sustainability principles. EXTERNAL COMMUNICATION

A joint press release from Danone and Stonyfield highlighted the benefits to both companies of two way knowledge and talent transfer. To evaluate the fit of a given green product strategy , ask the following questions: ACQUIRE: FIRST STEP -Whats our strategic goal? >to capture consumers? >bring in new green capabilities? >broaden appeal to main-stream customers? >gain green

YOUR PORTFOLIO How will this initiative affect the positioning of and resources for our existing brands? Should our green brand be a stand alone or a strategic brand that puts a green

YOUR CUSTOMERS

YOUR COMPETITORS Is this the prototypical brand Can we sell the in the green niche? green brand to our current customers?

RED FLAG

Will acquired customers view us as a credible steward of the

Do we have environmenta l skeletons in our current portfolio or business How can we exploit model? our competitors green weaknesses? Will our green claims be credible or How can we prevent are we

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credibility? -Which companies would make attractive green acquisitions?Do we have the resources and capabilities needed for this initiative

halo on the brand? business as a whole? Will the initiative provide new abilities that can be applied to other brands?

competitors from vulnerable to poaching our newly accusations of acquired green customers? washing? Can we add green attributes to the new brand or emphasize existing attributes to increase competitiveness?

PATH 3: ARCHITECTING GREEN PRODUCTS For companies that have a successful past with creating innovative new products, architecting or building new green offerings is a distinct possibility and a better strategy than the other two pathways. Toyota is one of the leaders in this area.

The Toyota Prius quickly became one of the most well known hybrid-cars on the market. Though it was not the first hybrid introduced in the U.S. market (Honda Insight was), Prius shortly became the leader of the fast-growing market for more-fuel-efficient cars. Additionally, they could transfer the green technology to other models, including the luxury ones like Lexus. That transfer offered them a clear advantage over other competitors like Mercedes-Benz and BMW who just recently introduced hybrid models to meet growing consumer demand.

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With an understanding of the three paths to green growth, managers can begin to craft a strategy that suits their objectives and their business context. They should begin by evaluating each option: Is it feasible? Is it desirable? How would it be implemented?

BEST PRACTICES: WHO ARCHITECTS WELL? NEW PRODUCT DEVELOPMENT

Toyota directed its engineers to develop a new fuel efficient and friendly vehicle within three years. NEW PRODUCT METHOD

Patagonia created a line of products using a closed loop production system it called eco-circle. SKUNKWORKS

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Clorox provided the resources for a separate green business unit. To evaluate the fit of a given green product strategy , ask the following questions: ARCHITECT: FIRST STEP -Whats our strategic goal? >to create new green solutions? >develop unique competencies ? >respond to new market need? >gain green credibility?

works

YOUR PORTFOLIO How will this initiative affect the positioning of and resources for our existing brands? What will be relationship between parent and new line? the the the

YOUR CUSTOMERS What innovations are consumers looking for in a greener alternative?

YOUR RED FLAG COMPETITORS Are we creating new Do we have green categories? environmenta l skeletons in our current portfolio or business Does our parent Can we differentiate model? brand have our brand? permission to enter the green space?

Will the initiative provide new abilities that can be applied to -Will an other brands? independent business unit be required? -Do we have the resources and capabilities needed for this initiative?

Will this initiative How can we exploit require us to our competitors develop a new green weaknesses? brand? Does the category Will we need to already have educate & entrenched develop the Competitors? market & bring new customer into the categories?

Will our green claims be credible or are we vulnerable to accusations of greenwashing?

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GREEN GROWTH IS AT TOP OF MANY LEADERS AGENDAS,BUT THE WAY FORWARD IS RARELY CLEAR .HERE ARE THREE BROAD PRODUCT STRATEGIES THAT CAN ALIGN YOUR GREEN GOALS WITH YOUR CAPABLITIES.

ACCENTUATE

ANY OF THE THREE

ACQUIRE

ARCHITECT

LOW

GREEN DEVELOPMENT CAPABILITIES

HIGH

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MAKING GREEN GROWTH HAPPENS:

Within an understanding of the three paths to green growth, managers can begin to craft a strategy that suits their objectives and their business context. They should begin by evaluating each option: Is it feasible? Is it desirable? How would it be implemented?

DESIRABILITY

FEASIBILITY

IMPLEMENTATION

MAKING GREEN GROWTH

FEASIBILITY: In this step companies take stocks of their assets along two dimensions: greenable attributes of their existing products and brands, and organizational green product and brand development capabilities. The first requires a careful review of opportunities to promote brands green benefits. Of course, each product will have its own category specific attributes, ranging from recyclability to energy efficiency to reduce toxicity.

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The second dimension involves appraisal the companys green resources and capabilities. This may include a broad view of the processes and new product development, supply chain management, the coordination of and collaboration among distributors, and even partnership with environmental organizations.

DESIRABILITY: In this step, manager assess the strategic fit of each option with the companys objectives and the resources they can bring to bear on the green initiatives. They need to consider speed to market and the investments, reputation, and competencies that the initiative will require For example: an acquire strategy will deliver high speed to market for a company setting out with low green credentials and low to medium green capabilities.

IMPLEMENTATION: This third step involves acting on all the factors than after successful execution. As outlined in exhibit Analyzing growth option, companies must align their green strategy with their existing product portfolio and devote or develop the resources and capabilities needed to achieve their strategic goals. they must ensure that the strategy satisfies cust omers expectations and, when possible, take advantage of competitors green weaknesses. Finally, they must address red flag issue that could undermine implementation .

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GREEN MARKETING: A CORPORATE INITIATIVE It is important in todays world because mankind has limited resources on the earth and if we want long term sustainability of human life on this earths surface, then companies has to learn to conserve these scarce natural resources and create products that have less environmental damage. Otherwise the very existence of humankind will be under question mark .Corporate are going green from the grassroots level to sustain and win the customers expectations. The environment is becoming increasingly important part of the corporate reputations and they are actively participating in greening the corporate strategy. Companies have converted almost all the products to make them eco-friendly products. Following are there cent environment friendly initiatives taken by the companies. Sony: Green ODO Digital Camera Sony has recently launched developed and launched a range of innovative products named as ODO line products also called as Eco-chic. These products do not require AC adapter as they were powered by kinetic or solar energy. Sony has used simplified packaging and recycled plastic in the manufacturing of ODO products as a Sustainable Product initiative. The ODO line products comprise of five products

Spin N Snap : The spin and snap is a digital camera. It has two holes which are used as View finder and chargers. On spinning the camera on ones fingers generates kinetic energy and charges the device. Push Power Play : Push power play is a display device with a roller on the base. The rollers are used to charge the device by the friction of the device with hard surface. Crank N Capture : Crank and Capture is a digital video camera with a crank used to operate and generate power.4. Pull and Play: The pull and play is a stereo headphone with a cord to simply pull and use.5. Juice Box: The juice box is a credit card sized object used to recharge the other ODO products. Sony has also added a new Twirl N Take hand powered digital camera to the ODO line series. Twirl N take digital camera has a sleek stem circle design. It is recharged by rolling the round wheel on the hard surface. Sonys ODO line product series are the most innovative eco-friendly products which are very safe and handy. Even children can also use these products.

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Cipla: CFC-free Inhaler Cipla-Indias second largest drug company by market share has planned and started replacing allits CFC contained drugs to meet the international standard and Montreal Protocol ban deadline.The CFC depletes the ozone layer and also is a major cause of global warming. Cipla has updated the necessary technology to avoid the CFC and has also done its clinical trial in India and overseas. The Rota haler and the Asthalin inhaler are environment friendly inhalers, used by asthma and bronchitis patients. These inhalers are using HFA (Hydro Fluro Alkaline)technology. The Rotahaler is a powder based inhaler, different from regular inhaler which contains propellants. Bharat Petroleum Bharat Petroleum launched a campaign to position itself as a responsible corporate green entity.Foraying into renewable energy-solar and wind power-it installed solar panels on its servicestations. It also ran a program to cut production of greenhouse gases by 10% across its unitsworldwide and achieved it much ahead of schedule. Cleaner fuels such as Greener Diesel (ultralow sulphur content) and BP Auotgas were developed. Almost all of its plants are ISO 14001certified. Currently it is running a program to contain its net emissions at current levels for ten years. Hindustan 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 evensome precious metals. HP will take back any brand of equipment; its own machines are 100 percent recyclable. Nokia: The Take-Back Campaign The Take-Back campaign is running successfully in 85 countries. It was recently launched in India, specifically in Bangalore, Delhi, Gurgaon and Ludhiana, with over 1,300 recycling bins distributed just in the first months.

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Other companies: LG has insisted mainly on power management, While Nokia has centered its attention on the use of recyclable materials. Samsung has produced marketing-friendly green devices like its Restore and Reclaim and has mainlyfocused on producing phones with reduced toxins, by removing BFRs (bromide flame retardants) last year. It also plans to remove most other toxins by the end of 2013. Sony Ericsson, with its Green Heart line, concentrates mainly on packaging Videocon-

The company has changed its logo, appeal and also its corporate strategy in order to adjust to the recent global environment and stay in the race. Videocon changed it logo from the traditional giant solid silver V to a more fluid lava type V. With this new logo, it is visible that the company is trying to portray itself as an ecofriendly company with a fresh outlook and to give a feel that the Videocon always on the move. Using the color of nature, i.e. green, Videocon has give a feel that it product are environmentally aware and with respect to world environmental standards. IDEA Ad Campaigning- SAVE PAPER. SAVE TREES. SAVE THE WORLD IDEA Cellular, the 3rd largest GSM mobile service operator in India, has its own way to promote the brand. IDEA has launched an ad: Use Mobile, Save Paper. This ad also featuresIDEAs brand ambassador Abhishek Bachchan, but as a tree! This new ad is sixth in the series.The preceding campaigns were

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Championing a world without caste, Championing a world in which no one suffers from the disability to communicate; Education for All, Participative Governance and the last Walk When You Talk AIRCEL-Save our Tigers campaign is collaborative effort from Aircel and WWF India to savethe wildlife especially tigers worldwide. Amitabh Bachaan has joined the initiative as the campaign ambassador Dhoni who roars for our Tigers in Aircel Save our Tiger Ad Kiran Bedi, Suresh Raina and Baichung Bhutia follow the same.

DELLFor the past three months, Dell has been working towards bringing a path-breaking initiative for our consumers in India - the Dell Go Green Challenge. It is designed to promote a green approach towards technology adoption for consumers in India, by asking them to share their ideas and stories about how they aim to change the way technology is being used in our homes and offices.

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As our economy is growing and technology penetration is increasing, e-waste is one of the biggest challenges we as a nation are facing, and recycling is still not an option that most consumers are either aware of, or interested in taking up. As one of the worlds leading providers of technology, they recognize our responsibility to ensure that technology is recycled at the end of its usable life. Dell was in fact the first computer company to offer consumer free recycling worldwide and both these initiatives are designed to create awareness among consumers on recycling of PCs in India. Dell has launched the Dell Go Green Challenge in an effort to raise awareness and community involvement in green initiatives in India. The challenge invites consumers to hare photographs, videos and other innovative depictions of key issues, concerns or thoughts on green technology at www.dellgogreen.com The contest has provided a platform to build a Dell Go Green community of green technology and lifestyle enthusiasts, to connect with each other online, and share ideas, thoughts and visions on the issue of e-waste and sustainable technology. We havegot over over 600 ideas over the last three months. These ideas have been voted on by thecommunity and we look forward to the winners being announced shortly

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.

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.

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

Green Agenda by ITC Recently tobacco-to-clothing-to-hotels corporate house ITC has taken an initiative to minimize the environmental footprint. Company strategy is to delink the company's growth from (increased) GHG (Green House Gas) emissions. ITC's Social and Farm Forestry Programme is one such initiative where around 1.14 lakh Hectares of barren land was transformed into a green tract. The company says that for the planet, this meant having 4011kilotonnes of less carbon dioxide (CO2) to deal with between 2010 and 2011.Similarly ITC has created with the greenest luxury chain of hotels in the world - an identity that helped the company position differently in the market. All its hotel properties are LEED Platinum certified. Leadership in Energy and Environmental Design (LEED) is a rating system developed by Green Building Environment council in the US that sets standards tor sustainable buildings. In 2010-11 alone, 1,381 hectares of land harvested by the company supplied 30,281 tones of pulpwood to ITC paper business. About 66 percent of the total fiber of their Paperboards and Speciality Papers Division also comes through this programme.

Respecting Green Initiative by Pepsi The beverage major PepsiCos one of their major initiatives is the water stewardship programmers to save water, a commodity that it consumes a lot. It embarked on an intensive process to map water consumption in every business area possible. It set up a

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pilot-project in 2003 at its Panipat plant in Haryana that included recycling and reusing water. Since then, these measures have been adopted in other plants as well. According to Pepsi in 2010, the company says, it was able to replenish more water than it used up which, according to company estimates, is nearly 4.3 billion liters and enough to fill up over 1,720 Olympic-sized swimming pools. While the majority of this has come through agricultural interventions and community programmes, it is also focusing on reducing the water which is used to make its soft drinks. The amount of water used by PepsiCo in a liter of its colored beverages has come down to around 2.2 liters for a liter from around seven liters in 2003. Initiative of Green Telecom by Vodafone Vodafone is taking an aggressive approach where it experimented with hybrid technology where a diesel generator and a battery working in an alternate mode. This turned out to be a huge cost saver. Of the 2,200 sites International Conference on Technology and Business Management March 26-28. 2012 492the solution was deployed at, a total of 2,628,548 liters of fuel was saved. At roughly Rs 40 per liter of diesel, the probable savings work out to about Rs 10.5 crore. Once again planet earth benefitted: it cut back around seven million kilos of CO2. There are also other steps to reduce power consumption like turning oft towers when usages is minimum and making use of cooling boxes that shut off the air conditioning when temperature reaches 26 degrees Celsius. Green Initiatives of Hindustan Unilever Limited The fast moving consumer goods (FMCG) major Hindustan Unilever has already reduced CO2 emissions by 30 per cent, waste generation by 35 percent and as a result, 75 per cent of its factories have no toxic waste. As a part of the Unilever Sustainable Living Plan, the company has committed to halve its GHG, waste and water usage within 10 years. One aspect that they are focusing on is soap manufacturing, a process that company claims consumes the most energy. Company is doing it by introducing ploughshare technology at all eight soap manufacturing plants in India.

Sense of Green by Mahindra & Mahindra M&M has joined the GRI (Global Reporting Initiative, an organization which promotes economic sustainability), where one of its plants at Nashik, company try to improve its packaging by replacing wood with more eco-friendly options, Re-usable packing material was developed to replace wooden boxes for vendors to supply auto components. The success story lies in the result: reduction in wooden waste by 62 per cent and of cardboard box waste by 40 per cent. This is equivalent to saving 3,750 trees, claims company

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SOME OTHER EXAMPLES: EXAMPLE 1 : Best Green IT Project: State Bank of India: Green IT@SBI By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set the right example for others to follow.SBI is also entered into green service known as Green Channel Counter. SBI is providing many services like; paper less banking, no deposit slip, no withdrawal form, no checks, no money transactions form all these transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce emissions: The State Bank of India became the first Indian bank to harness wind energy through a 15-megawatt wind farm developed by Suzlon Energy. The wind farm located in Coimbatore uses 10 Suzlon windturbines, each with a capacity of 1.5 MW. The wind farm is spread across three states Tamil Nadu, with 4.5 MW of wind capacity; Maharashtra, with 9 MW; and Gujarat, with 1.5 MW. The wind project is the first step in the State Bank of India's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients. EXAMPLE 2 : Lead Free Paints from Kansai Nerolac Kansai Nerolac Paints Ltd. has always been committed to the welfare of society and environment and as a responsible corporate has always taken initiatives in the areas of health, education, community development and environment preservation .Kansai Nerolac has worked on removing hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can have adverse effects on humans. Lead in paints especially poses danger to human health where it can cause damage to Central Nervous System, kidney and reproductive system. Children are more prone to lead poisoning leading to lower intelligence levels and memory loss. EXAMPLE 3 :Indian Oil's Green Agenda Green Initiatives Indian Oil is fully geared to meet the target of reaching EURO-III compliant fuels to all parts of the country by the year 2010; major cities will upgrade to Euro-IV compliant fuels by that time. Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries; ongoing projects account for a further Rs. 5,000 crore.

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Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units are coming up at three more refineries. Diesel quality improvement facilities in place at all seven Indian Oil refineries, several more green fuel projects are under implementation or on the anvil. The R&D Centre of Indian Oil is engaged in the formulations of eco-friendly biodegradable lube formulations. The Centre has been certified under ISO-14000:1996 for environment management systems. GREEN FUEL ALTERNATIVES In the country's pursuit of alternative sources of energy, Indian Oil is focusing on CNG (compressed natural gas), Auto gas (LPG), ethanol blended petrol, bio-diesel, and Hydrogen energy. EXAMPLE 4 :India's 1st Green Stadium The Thyagaraja Stadium stands tall in the quiet residential colony behind the Capital's famous INA Market. It was jointly dedicated by Union Sports Minister MS Gill and Chief Minister Sheila Dikshit on Friday .Dikshit said that the stadium is going to be the first green stadium in India, which has taken a series of steps to ensure energy conservation and this stadium has been constructed as per the green building concept with eco-friendly materials. EXAMPLE 5:Eco-friendly Rickshaws before CWG Chief minister Shiela Dikshit launched on Tuesday a battery operated rickshaw, E-rick, sponsored by a cellular services provider, to promote eco-friendly transportation in the city ahead of the Commonwealth Games. EXAMPLE 6 : Wipro Green It. Wipro can do for you in your quest for a sustainable tomorrow - reduce costs, reduce your carbon footprints and become more efficient - all while saving the environment. Wipro's Green Machines (In India Only)Wipro Infotech was India's first company to launch environment friendly computer peripherals. For the Indian market, Wipro has launched a new range of desktops and laptops called Wipro Greenware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the environment.

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EXAMPLE 7 : Agartala to be India's first Green City Tripura Sunday announced plans to make all public and private vehicles in Agartala run on compressed natural gas (CNG) by 2013, thus making the capital India's first green city. Tripura Natural Gas Co Ltd (TNGCL), a joint venture of the Gas Authority of India Ltd (GAIL) and the Tripura and Assam governments, has undertaken a project to supply CNG to all private and government vehicles.CNG will also be available to those now using electricity, petrol and diesel to run various machineries. TNGCL chairman Pabitra Kar told reporters. He said: The company will soon provide PNG connections to 10,000 new domestic consumers in the city and outskirts. Agartala will be the first city in India within the next three years to become a green city. EXAMPLE 8 : Going Green: Tata's new mantra The ideal global benchmark though is 1.5. Tata Motors is setting up an eco-friendly showroom using natural building material for its flooring and energy efficient lights. Tata Motors said the project is at a preliminary stage. The Indian Hotels Company, which runs the Taj chain, is in the process of creating eco rooms which will have energy efficient mini bars, organic bed linen and napkins made from recycled paper. But there won't be any carpets since chemicals are used to clean those. And when it comes to illumination, the rooms will have CFLs or LEDs. About 5% of the total rooms at a Taj hotel would sport a chic eco-room design. One of the most interesting innovations has come in the form of a biogas-based power plant at Taj Green Cove in Kovalam, which uses the waste generated at the hotel to meet its cooking requirements. Another eco-friendly consumer product that is in the works is Indica EV, an electric car that will run on polymer lithium ion batteries. Tata Motors plans to introduce the Indica EV in select European markets this year.

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Top 10 green Indian companies Judging by the number of large, small and mid-size Indian companies that are setting the trend with green initiatives, India is serious about building environmental sustainability into her business practices. The following companies who made it to the list of top 10 green Indian companies prove the statistics right! Suzlon Energy The worlds fourth largest wind-turbine maker is among the greenest and best Indian companies in India. Tulsi Tanti, the visionary behind Suzlon, convinced the world that wind is the energy of the future and built his factory in Pondicherry to run entirely on wind power. Suzlons corporate building is the most energy-efficient building ever built in India. Suzlon One Earth Global Headquarters in Pune - Indias greenest building

ITC Papekrafts premium range 84

ITC Limited of eco-friendly business paper ITC strengthened their commitment to green technologies by introducing ozone-treated elemental chlorine free bleaching technology for the first time in India. The result is an entire new range of top green products and solutions: the environmentally friendly multi-purpose paper that is less polluting than its traditional counterpart.

Tata Metaliks Limited (TML)

Every day is Environment Day at TML, one of the top green firms in India. A practical example that made everyone sit up and take notice is the companys policy to discourage working on Saturdays at the corporate office. Lights are also switched off during the day with the entire office depending on sunlight. Everybody is motivated to do something about reducing carbon footprints, says Harsh Jha, Managing Director TML

Tamil Nadu Newsprint and Papers Limited (TNPL)

Adjudged the best performer in the 2009-2010 Aerial view of TNPL Green Business Survey, TNPL was awarded the Green Business Leadership Award in the Pulp and Paper Sector. The initiatives undertaken by this top green firm in India includes two Clean Development Mechanism projects and a wind farm project that helped generate 2,30,323 Carbon Emission Reductions earning Rs. 17.40 Crore.

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Wipro Technologies

The list of top 10 green Indian companies is never complete without Wipro which climbed to the top five brand league in Greenpeace's 'Guide to Greener Electronics' ranking. Despite the global financial crisis, Wipro held fast to its commitment towards energy efficiency and was lauded for launching energy star compliant products in the market. Wipro broadens its green IT initiatives through its participation in "The Green Grid"

HCL Technologies

This IT major may be considered as the icon ofIndian green initiatives, thanks to the go green steps taken in solving the problem of toxics and e-waste in the electronics industry. HCL is committed to phasing out the hazardous vinyl plastic and Brominated Flame Retardants from its products and has called for a Restriction on Hazardous Substances (RoHS) legislation in India. The HCL Green Bag campaign that aimed at tackling e-waste

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Oil and Natural Gas Company (ONGC)

Indias largest oil producer, ONGC, is all set to lead the list of top 10 green Indian companies with energy-efficient, green crematoriums that will soon replace the traditional wooden pyre across the country. ONGCs Mokshada Green Cremation initiative will save 60 to 70% of wood and a fourth of the burning time per cremation. ONGCs green projects contribute to increased environmental awareness among local communinities

IndusInd BankGreen banking has been catching up as among the top Indian green initiatives ever since IndusInd opened the countrys first solar-powered ATM and pioneered an ecosavvy change in the Indian banking sector. The bank is planning for more such initiatives in addressing the challenges of climate change. IndusInds solar-powered ATM expects to save around 1,980 Kw of energy annually

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IDEA CellularOne of the best Indian companies, IDEA, paints India green with its national Use Mobile, Save Paper campaign. The company had organized Green Pledge campaigns at Indian cities where thousands came forward and pledged to save paper and trees. IDEA has also set up bus shelters with potted plants and tendril climbers to convey the green message.

IDEAs green bus shelter in Mumbai

Hero Honda MotorsHero Honda is one of the largest two-wheeler manufacturers in India and an equally responsible top green firm in India. The companys philosophy of continuous innovation in green products and solutions has played a key role in striking the right balance between business, mankind and nature. Hero Honda Green Ambassadors: winners of the international interschool environment quiz competition

PRESENT TRENDS IN GREEN MARKETING IN INDIA Organizations are Perceive Environmental marketing as an Opportunity to achieve its objectives. Firms have realized that consumers prefer products that do not harm the natural environment as also the human health. Firms marketing such green products are preferred over the others not doing so and thus develop a competitive advantage, simultaneously meeting their business objectives. Organizations believe they have a moral obligation to be more socially responsible. This is in keeping with the philosophy of CSR which has been successfully adopted by many business houses to improve their corporate image. Firms in this situation can take two approaches:

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Use the fact that they are environmentally responsible as a marketing tool. Become responsible without prompting this fact. Governmental Bodies are forcing Firms to Become More Responsible. In most cases the government forces the firm to adopt policy which protects the interests of the consumers. It does so in following ways: Reduce production of harmful goods or by products Modify consumer and industry's use and /or consumption of harmful goods; or Ensure that all types of consumers have the ability to evaluate the environmen tal composition of goods. Competitors' Environmental Activities Pressure Firms to change their Environmental Marketing Activities. In order to get even with competitors claim to being environmentally friendly, firms change over to green marketing. Result is green marketing percolates entire industry. Cost Factors Associated With Waste Disposal or Reductions in Material Usage Forces Firms to Modify their Behavior. 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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Green consumer

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UNDERSTANDING CONSUMER PERCEPTION AND PRIORITIES TO MAXIMIZE BUSINESS Carbon labels show consumers the Carbon Content of an individual product. An items content is the total amount of carbon dioxide emitted from very stage of its production and distribution, from source to store. This is also known as embedded carbon, or a carbon footprint. Todays consumer is more ethically and environmentally aware than ever before, and increasingly so with regard to the consumption of food and drink. In the media, on the shelves, the focus on reducing our carbon footprint is constantly present, and the push to understand where our food is from increasing .Carbon labeling is a really recent development. The focus on reducing carbon footprint is constantly present, and the push to understand what they are purchasing and consuming. But to make it a success, the understanding regarding :a) What they are purchasing? b) How are they prioritizingbetween organic, fair trade, carbon friendly and so on ?c) Whether the consumers are getting what they want to purchase? Study Findings on the Basis of Literature Regarding Consumer Behavior Consumers show different attitudes to issues like :a) Food quality is shoppers most important concern. Price is also very important for those on lower incomes. b) Whether health, environmental and social issues are very important in relation to the food they buy. c) Concerns for health, environmental and social issues vary with household income or not. d) Concern for health, environmental and social issues increase with age or not. e) Women do most of the shopping, and they are more concerned about health, environmental and social issues than men. f) Attitudes vary regionally, and there is particularly strong concern in the South West. Familiarity with labels for different consumers is different How familiar are you with each of the following types of information on product packets on the basis of: a) Most people are at least somewhat familiar with most forms of product information. b) Familiarity with the product information is much higher among people who think the issues are very important.

Use of labels had different perceptions for different consumers : Use of the following types of information when making decisions about what consumers buy is different for every consumer on the basis of :a) Product information is used by many consumers. b) There is a clear link between concern about health, environmental and social issues and use of relevant product information .c) The gap between attitudes and behavior is wider in relation to environmental and social issues that in it is with the mainstream health .d) There is little variation with income, except organic labels are used more by people with higher incomes .e) Product labeling is generally used more by older people .f) Women use nutrition information more, but broadly similar numbers of men and women use organic and Fair trade information. g) Different patterns of use in different regions.

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Barriers to greater integration into shopping behavior on the basis of changing patterns of consumption mean that increasingly consumers are considering the social, environmental and health issues associated with production and consumption.

Targeting Green Consumers Knowing your audience is certainly a necessity if you want to have an effective environmental marketing campaign. In general, there will be at least three levels of green consumers in any industry. Deep green consumers are serious about their choices and will be looking for hard proof of the eco-friendliness of your claims. This group requires verifiable proof that youre providing products and services that will truly benefit the environment. The second group includes people genuinely interested in helping the planet, but not as current on the biggest environmental issues. This group may also be less willing to pay a premium for your green offerings. The third group includes people who are either apathetic or antagonistic toward green marketing efforts. Regardless of your target market, an eco marketing campaign should have several important factors in order to ensure long-term sustainability in the green space: Your green claims should be genuine and verifiable. Above all, be transparent and explicit about any environmental claims you make. Informed consumers are loyal consumers, so educate your consumers about the benefits of your product or service for the environment. Make it possible for your customers to give back to the environment by choosing your service or product. How to Appeal to Green Consumers Thankfully, organizations such as the Federal Trade Commission (FTC) regulate some of the more popular green marketing claims in order to provide some way for consumers to compare apples to apples when considering one product against another. The FTC exists to prevent greenwashing and will ensure that claims of environmental benefits are not overstated or misrepresented. In addition to the FTC regulations, there are numerous third-party organizations and government bodies that serve to test and structure green marketing claims, including such things as the US National Organic Program, the Canadian EcoLogo certification program, and the certified Vegan standard.

GREEN CONSUMER BEHAVIOR Environmentally Conscious Consumer Behavior 92

Environmentally Conscious Behavior (ECCB) is consumer behavior based on some awarenessof the environmental impacts associated with a product or service, and a desire to reduce those impacts. Many researchers in the field of consumers psychology and market research have demonstrated a substantial grow thin ECCB across a range of markets. It has been demonstrated through case studies that how product developers and marketers have capitalized on this positive attitude and effectively differentiated their product in terms of their environmentally friendly character. The term environmental consciousness does not have a standardized definition in the body of academic literature; the reason can be due to arousal of the term out of political andeveryday language. Environmental consciousness is the desire to protect flora and fauna,willingness scrutinize the consequences of economic activity and a willingness to combine long. Term plans Green Buyers and Green Consumers Research about the identity and nature of green consumer has been the central character in thedevelopment of green marketing, as business attempt to understand and respond to external pressures to improve their environmental performance. Marketing practitioners and academicsare attempting to identify and understand green consumers and their needs, and to developmarket offerings that meet these needs.SEGMENTATION OF GREEN CONSUMERS T rue-BlueG reens - The most environmentally active segment of the society. G reenback G reens - Those most willing to pay the highest premium for green products. S pouts -Fence-sitters who have embraced environmentalism more slowly. Grousers - Uninvolved or disinterested in environmental issues, who feel the issues are too bigfor them to solve. A pathetic - The least engaged group who believe that the environmental indifference is mainstream. Apart from this, Natural Marketing Institute (NMI) divides the market into following categories: Lohas - Very progressive on environment and society, looking for ways to do more; not too concerned about price. N aturalites - Primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment. Conventional - Practical, like to see the results of what they do; interested in green products that make sense in the long run. Drifters - Not too concerned about the environment, figuring weve got time to fix the environmental problems; dont necessarily buy a lot of green products. Unconcerned

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-Have other priorities, not really sure what green products are available and probably wouldnt be interested anyway; they buy products strictly on price, value, quality and convenience.

Consumer Information and Education If managers believe that consumers view greenness as a motivating variable, they should investin conveying information through advertising, direct mailing, brand labels, in-store displays and pamphlets. The important points to be noted here are a. Firms willing to provide clear, comprehensive and credible information must ensure that consumers have low cost to access it. b. Governmental policies and stakeholder initiatives can be important in reducing consumers search, information or transaction costs. c.Regulators can publish and disseminate it to the media by press releases and post it on theinternet. d.Stakeholders can use the media as well as use their organization-specific vehicles such as newsletters. a) Products too expensive is the number one barrier. b) Takes too much time is the second biggest barrier to choosing healthy food.c) I dont know enough about it is the second biggest barrier to choosing environmentallyfriendly and socially responsible food.d) Other barriers are significant or not, like: Unavailability of products (either altogether, or of sufficient quality). Lack of understanding about the issues in general. Difficulty in understanding the product information. Concerns about the reliability of the product information.

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ATTRIBUTES OF GREEN CONSUMERS Attributes.of.Environmentally Implication for Green Marketers Conscious Consumers Will most likely be well educated, Use the influence of children to young adult women who have more encourage parents to try green products. The money to spend? green consumers of the future are generally knowledgeable about environmental issues. They should be offered samples and increments to try products

Will expect green products to function as non green products and wont pay much extra or sacrifice quality for greener products Will not buy green products on the basis of environmental benefits alone.Products choice is still based on whether it meets their basic want or need. Environmental features aread ded selling points. Will be more likely to respond to produ ct attribute that will personally benefit them

.Effectively communicate assurance of quality for example quality of performances, look, feel, fit, comfort,durability Like environmental attributes such as energy efficiency or toxic substance reduction with other benefits such as lower price, convenience, or quality of life improvements.

.Emphasize personal benefits by usingterms such as safe, non-toxic, cost effective rather than more generalized green messages such as biodegradable or ozone FRIENDLY Will tolerate only minimalinconvenienc .Making the use of product simple- e.g . minimize e in using green products and dont or eliminate refilling bottles. Select mainstream want to go out of their way to buy distributors wherever possible. Offer one-stop them shopping and eye appealing displays

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Will be analytical, eager to learn, andcan be cynical about corporate claimsf o r g r e e n p r o d u c t u n l e s s t h e y h a v e independent verification.

Reinforce product benefits withevidence of corpor ate performanceand improvements. Educateducat e.consumers about environmentalissues and your efforts through a variety of means. Provide credible environmental endorsements. Use labels in compliance with government labeling.guidelines,to.convey.precise,detailed info rmation about your product and its packaging.

Will notexpect companies to have perf ect green credentials, but willlook for a commitment to improveand evidence backed by facts.

Communicate your steps towardssustainability an d commitments toimprovement. Seek feedback an d promote your efforts to respond tocustomer concerns

Research methodology

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1. 2. 3. 4. 5.

RESEARCH OBJECTIVES To understand the concepts and importance of Green marketing. To understand the level of awareness regarding green marketing among consumers. To understand the buying behavior of consumers related to green marketing. To understand how green marketing helps company to build its image/ To understand the success of green marketing as a corporate social responsibility. RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem.It may be understood as a science of studying how research is donescientifi cally. When we talk of research methodology we not only talk of the re search methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a p a r t i c u l a r method or technique and why we are not using others .The major steps involved in research process are: Formulating the Research Problem Choice of Research Design Sources of Data Processing and analyzing the data Formulating the Research Problem: The problem well defined is half solved. The formulation of a g e n e r a l topic into a specific research problem constitutes the first step of specific enquiry. Unit of analysis: Consumers between age group of 25 to 40 yrs. Characteristics of Interest: Awareness of Green Marketing. Choice of Research Design:

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Every project requires an action plan and method for conducting a study. This project is more prone to single cross-sectional descriptive research design SOURCE OF DATA

Primary Data Collection The data has been collected from the respondents through personal interviews and a detailed questionnaire was designed for that purpose. The questionnaire was designed according to the research objectives; the questions fulfill the aim of determining the impact on consumers towards green marketing.

Secondary data collection Secondary data is very important to complete a project report. The purpose of this data was to supplement the primary data. The secondary sources of collecting data was Internet. Magazines Size of sample : This refers to the numbers of items to be selected from universe to constitute a sample. An optimum sample is one which fulfills the requirements of efficiencies ,representativeness , reliabilality ,and flexibility. Sample size-50 consumers

LIMITATIONS OF THE PROJECT DEMOGRAPHIC CONSTRAINTS Will be a main issue of concern. This is due to the reason that the data collection restricted to the jaipur only. 2. DATA RELIABILITY

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As the data will be collected from various sources the accuracy of the data collected would be an area of concern. It would be an uphill task to validate the data consistency of the collection of that data. 3. UNAWARENESS People are unaware of Green marketing. So it is a very challenging task for me.

CONSUMER AWARENESS SURVEY ANALYSIS & INTERPRETATION

1.Are you aware of the term green marketing? a. Yes-40% b. No-60%

40 60
yes no

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2.Have you heard of any campaign related to Green Marketing? a. Yes -19 b. No-32

35 30 25 20 15 10 5 0 yes 19

32

Series 1 Series 2

no

From this bar chart we can say that most of the respondents are not aware of any campaign related to green marketing.

3. Have you been part of any such campaign? a.Yes -3 b. No -47 47


50 40 30 20 10 0 yes no

We can see here that out of 50 respondents only 3 has been part of such type of campaign

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4. Do you consider the environmental aspects of the products before buying them? a. Yes-24 % b. No -28 % c. Sometimes-48

24 48
yes no some times

28

The above chart indicates that only 48% i .e. the majority of respondents consider the Environmental aspect some times. And, only 24% consider the environmental aspect of the product while buying it

5. Do you think that Green Marketing activities are good at addressing environmental issues? a.Yes -94% b. No-6%

yes no

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From this pie chart, it indicates that 94% respondents think that green marketing and advertising are good sources of information about green products and services

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6. Do you think that Green Marketing activities are good at addressing environmental issues? a. Yes -45 b. No-5

50 40 30 20 10 0

45

5
Column1 Series 2 yes no Series 1

Series 1 Series 2

We can see most of the respondents feel that Green marketing activities are good at addressingenvironmental issues 7. Do you think Green Marketing activities results in better products? a. Yes -82% b. No-18%

82% yes

18% no

We can see most of the respondents feel that Green marketing activities are good at addressing environmental issues.

8.Do you think that Green Marketing strengthen company is image in the mind of consumers? a. Yes -37 b. No-13

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40 35 30 25 20 15 10 5 0 yes no

37 13

The above chart indicates, majority of the respondents, i.e. 37 respondents feel that it strengthen companys image in the mind of consume.

9.Do you think that companies that focus on environmental concerns persuade consumers to buy products? a.Yes -58% b. No -42%

42% 58%
yes no

Most of the respondents feel that it helps to persuade consumers to buy products.

10.Do you think that by implementing green marketing strategy the companies are able to gain competitive advantage over others? a. Strongly agree-34% b. agree-20% c. disagree- 40% d. strongly disagree-6%

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strongly agree

agree

disagree

strongly dis agree

6% 20% 34%

40%

Most of them agree that by implementing green marketing strategy the companies are able to gain competitive advantage over others 11.Do you think sometimes companies are trying to cheat customers in the name of green products? a. Yes b. No

35 30 25 20 15 10 5 0 yes no

33 17

Here, we can say that most of the respondents have negative opinion. They feel that sometimes companies are trying to cheat the customers in the name of green products

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Green Strategy Formulation As in formulation of green strategy, a firm may evolve it from a SWOT analysis or Environmental Audit. SWOT ANALYSIS STRENGTHS : 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. WEAKNESS : 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 .E.g. products cannot be recycled, and hazardous wastes) of a company. OPPORTUNITIES : 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. EXTERNAL 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.

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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).

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RESEARCH FINDINGS In my research work through the survey of questionnaire I find the following points1.Maximum numbers of respondents are not familiar with the term Green Marketing 2.Most of the respondents are not aware of any campaign related to green marketing 3.Maximum numbers of respondents sometimes consider the environmental aspects of the products while purchasing. 4.Significant numbers of respondents feel that green marketing and advertising are good sources of information about green products and services. 5.Most of the respondents feel that this marketing strategy helps to persuade consumers to buy products. 6.Also this type of strategy helps a company to get the competitive advantage over others. 7.Many respondents feel that sometimes companies are trying to cheat the customers in the name of green products.

Conclusion & Future aspects

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CONCLUSION 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. 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 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. 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. 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. Now this is the right time to select Green Marketing globally. It will come with drastic change in the world of business if all nations will make strict roles because green marketing is essential to save world from pollution. From the business point of view because a clever marketer is one who not only convinces the consumer, but also involves the consumer in marketing his product. Green marketing should not be considered as just one more approach to marketing, but has to be pursued with much greater vigor, as it has an environmental and social dimension to it. With the threat of global warming looming large,

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it is extremely important that green marketing becomes the norm rather than an exception or just a fad. Recycling of paper, metals, plastics, etc., in a safe and environmentally harmless manner should become much more systematized and universal. It has to become the general norm to use energy-efficient lamps and other electrical goods. Marketers also have the responsibility to make the consumers understand the need for and benefits of green products as compared to non-green ones. In green marketing, consumers are willing to pay more to maintain a cleaner and greener environment. Finally, consumers, industrial buyers and suppliers need to pressurize effects on minimize the negative effects on the environment-friendly. Green marketing assumes even more importance and relevance in developing countries like India.

RECOMMENDATION Finite resources such as oil, metal, and even fresh water will become scarcer and more expensive. If businesses do not become more efficient in using these resources it will have a huge impact on the bottom line. Investing in Green Products thus changes from beyond doing good to ultimately good business sense. Thus they should:

Invest in research and create clean and environment friendly products. Recycle at every level. Educate masses about the environment issues because they are going to be the bulk consumers. Socially responsible investing in environment driven projects. Plant more trees.

The corporations must rethink: Their raw material and procurement strategies. They should develop new products They should redesign existing products and service. They should realize that pollution prevention can be a cost saving activity. They should steer their product and packaging designs to use less material

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THE FUTURE OF GREEN MARKETING There are many lessons 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 three important principles: CONSUMER VALUE POSITIONING Design environmental products to perform as well as (or better than) alternatives. Promote and deliver the consumer desired value of environmental products and target relevant consumer market segments. Broaden mainstream appeal by bundling consumer desired value into environmental products.

CALIBRATION OF CONSUMER KNOWLEDGE Educate consumers with marketing messages that connect environmental attributes with desired consumer value. Frame environmental product attributes as solutions for consumer needs. Create engaging and educational internet sites about environmental products desired consumer value.

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CREDIBILITY OF PRODUCT CLAIM 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.

QUESTIONNAIRE GREEN MARKETING & ITS IMPACT ON CONSUMERS 113

NAME.. ADDRESS 1. Are you aware of the term green marketing? a. Yes b. No 2. Have you heard of any campaign related to Green Marketing? a. Yes b. No 3. Have you been part of any such campaign? a.Yes b. No 4.Do you consider the environmental aspects of the products before buying them? a. Yes b. No c. Sometimes 5. Do you think that Green Marketing activities are good at addressing environmental issues? a.Yes b. No 6. Do you think that Green Marketing activities are good at addressing environmental issues? a. Yes b. No 7. Do you think Green Marketing activities results in better products? a. Yes b. No 8.Do you think that Green Marketing strengthen company image in the mind of consumers? a. Yes b. No

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9.Do you think that companies that focus on environmental concerns persuade consumers to buy products? a.Yes b. No

10.Do you think that by implementing green marketing strategy the companies are able to gain competitive advantage over others? a. Strongly agree b. agree c. disagree d. strongly disagree 11.Do you think sometimes companies are trying to cheat customers in the name of green products? a. Yes b. No

WEBLIOGRAPHY www.greenmarketing.net/stratergic.html www.epa.qld.gov.au/sustainable_ industries www.wmin.ac.uk/marketingresearch/marketing/greenmix.html www.indianmba.com/knowledgezone. www.coolavenues.com/knowledgezone/marketing/greenmarketing:oppurtunities and challenges. www.ecomall.com www.greenmarketingcorner.coM www.greenpeace.org www.greenmarketing.com BIBLIOGRAPHY Philip Kotler & G. Armstrong. Principles of marketing. New Delhi, Prentice Hall.2 Richa Agrawal, Green Marketing: An Emerging Trend (PMR, Vol.5,April 2000)

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Unruh, G; Ettenson, R; Harvard Business Review; Journal article reprint; Harvard Business Publishing

Jacquelyn A. Ottman, Green marketing ,Green leaf publishing limited. Donald A. Fuller ,sustainable marketing Frank Rottgers, Going green together Paola Sassi, Strategies or sustainable architecture

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