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A Project Report submitted in partial fulfillment of the requirements for the award of the degree of

Masters of business administration SESSION: 20102012 To

Under the guidance of




Certified that this project report titled Opportunities & Challenges for Green Marketing with special reference to gurgaon is the bonafide

work of Mr. Ravinder Khatri student of MBA Marketing 4th semester who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported here in does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Date: Place:

Mrs. Sheetal Mittal Faculty

I hereby declare that the project report conducted on


Under the guidance of


Submitted in the partial fulfillment of the requirements for the award of the degree of



Is my original work and the same has not been submitted for the award of any other Degree /Diploma /fellowship or other similar titles or prizes.

Place Date


If words are considered as a symbol of approval and tokens of appreciation then let the words play the heralding role of expressing my gratitude. It is a moment of pleasure for me to acknowledge the help and support for those people who made me able to present this dissertation report for evaluation as the partial fulfillment of Master Of Business Administration. I take this opportunity to thank and show gratefulness to my guide Mrs.Sheetal, ITM university, Gurgaon for her precious guidance and mentoring but for which my training here would not been so rewarding and fruitful.

At last it is my pious duty to record my heartiest gratitude to my parents and my family who taught first lessons of life and inspired me to face the hardships of life. At last, I would like to thank all my friends for their love, faith and support.

Ravinder Khatri

ABSTRACT In today's business world environmental issues plays an important role in marketing. All most all the governments around the world have concerned about green marketing activities that they have attempted to regulate them. There has been little attempt to academically examine environmental or green marketing. It introduces the terms and concepts of green marketing, briefly discuss why going green is important and also examine some of the reason that organizations are adopting a green marketing philosophy. It also focuses some of the problems with green marketing. It identifies the key to successful green marketing: Credibility Publicize stories of the companys and employees green initiatives. Enter environmental awards programs to profile environmental credentials to customers and stakeholders. Never overstate environmental claims or establish unrealistic expectations. It also tells about Why Are Firms Using Green Marketing: Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives Organizations believe they have a moral obligation to be more socially responsible Governmental bodies are forcing firms to become more responsible Competitors' environmental activities pressure firms to change their environmental marketing activities Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior This report also stresses upon the effect of green marketing on the consumers. Green marketing isn't just a catchphrase; it's a marketing strategy that can help you get more customers and make more money. But only if you do it right.

S.NO a. b. c. d. e. f. g. h. i. j. k. Certificate Declaration Acknowledgement Abstract Introduction Research Methodology Data Analysis & Interpretation Conclusion Suggestions Bibliography Annexure TOPIC Page 1 3 4 5 10 36 39 53 55 59 60

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. Green Marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and/or packaged in an environmentally friendly way. As per Mr. J. Polonsky, Green Marketing can be defined as, "All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment." Green Marketing involves developing and promoting products and services that satisfy customer's want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental input on the environment. Goals of Green Marketing: Eliminate the concept of waste Reinvent the concept of product Make prices reflect actual and environmental costs Make environmentalism profitable Bringing out product modifications Changing in production processes Packaging changes Modifying advertising.

Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on environmental marketing claims. So, in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced and/or packaged in an environmentally friendly way. The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. Green marketers though argue that it is a way to use the environmental benefits of a product or service to promote sales. Many consumers will choose products that do not damage the environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. People buy billions of dollars worth of goods and services every yearmany which harm the environment in how they are harvested, made, or used. Environmentalists support green marketing to encourage people to use environmentally preferable alternatives, and to offer incentives to manufacturers that develop more environmentally beneficial products.



The concept of green marketing has been around at least since the first Earth Day in 1970. But the idea did not catch on until the 1980s, when rising public interest in the environment led to a demand for more green products and services. Manufacturers responded to public interest by labelling hundreds of new products "environmentally friendly"making claims that products were biodegradable, compostable, energy efficient, or the like. The term Green Marketing came into prominence in the late 1980s and early 1990s. The 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 first wave of Green Marketing occurred in the 1980s. 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. 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



WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS? Most of the companies are venturing into green marketing because of the following reasons: Issues like Global warming and depletion of ozone umbrella are important for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigour and so would the corporate class. Financial gain and economic profit is the main aim of any corporate business. But harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. Industries in Asian countries are catching the need of green marketing from the developed countries but still there is a wide gap between their understanding and implementation. Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption. There are basically five reasons for which a marketer should go for the adoption of green marketing. They are: Opportunities or competitive advantage Corporate social responsibilities (CSR) Government pressure Competitive pressure Cost or profit issues


1) OPPORTUNITIES - As demands change, many firms see these changes

as an opportunity to be exploited and have a competitive advantage over firms marketing non- environmentally responsible alternatives. Some examples of firms who have strived to come more environmentally responsible, in an attempt to better satisfy their consumer needs are:

McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone depletion. The Surf Excel detergent which saves water (advertised with the message"do bucket paani roz bachana"). The energy-saving 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. Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products.


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 behaviour 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. 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.

3)GOVERNMENT PRESSURE As with all marketing related activities,

governments want to "protect" consumers and society; this protection has significant green marketing implications. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways. They are: Reduce production of harmful goods or by-products The ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc. Governments establish regulations designed to control the amount of hazardous wastes produced by firms. For example: 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. 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 behaviours and attempt to emulate this behaviour. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behaviour. For example, it could be argued that Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an

attempt to address the introduction of recycled photocopier paper by other manufacturers. In another example when one tuna manufacture stopped using driftnets the others followed suit. 5)COST OR PROFIT ISSUES Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms develop symbiotic relationship whereby the waste generated by one company is used by another as a costeffective raw material. For example, the fly ash generated by thermal power plants, which would otherwise contributed to a gigantic quantum of solid waste, is used to manufacture fly ash bricks for construction purposes.


Green Marketing mix consists of following: Product Mix Price Mix Place Mix & Promotion Mix 1) PRODUCT MIX: Entrepreneurs wanting to exploit emerging green markets either: Identify customers environmental needs and develop products to address these needs or will develop environmentally responsible products to have less impact than competitors. The increasingly wide variety of products on the market that support sustainable developments are: Products made from recycled goods, such as Quick N Tuff housing materials made from recycled broccoli boxes. Products that can be recycled or reused. Efficient products, which save water, energy or gasoline, save money and reduce Environmental impact. Products with environmentally responsible packaging, McDonalds, for example,

changed their packaging from polystyrene clamshells to paper. Products with green labels, as long as they offer substantiation. Certified products, which meet or exceed environmentally responsible criteria. Organic products-many customers are prepared to pay a premium for Organic products, which offer promise of quality. Organic butchers, for example, promote the added qualities such as taste and tenderness. Whatever the product or service, it is vital to ensure that products meet or exceed the quality expectation of customers and is thoroughly tested. 2) PRICE MIX: Pricing is the critical element of the marketing mix. Most customers will only be prepared to pay a premium if there is a perception of additional product value. This value may be improved performance, function, design, visual appeal or taste. Environmental benefits will often be the deciding factor between products of equal value or quality. Environmentally responsible products, however are often less expensive when product life cycle coast are taken into consideration, for example fuel-efficient vehicles, water efficient printing and non-hazardous products. 3) PLACE MIX: The choice of where and when to make products available will have significant impact on the customers you attract. Very few customers go out of their way to buy green products merely for the sake of it. Marketers looking to successfully introduce new green products should position them broadly in the market place so they are not just appealing to a small green niche market. The location must also be consistent with the image you want to project and allow you to project your own image rather than being dominated or compromised by the image of venue. The location must differentiate you from the competitors. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits. 4) PROMOTION MIX:


Promoting products and services to target markets include paid advertising, public relations, sales promotions, direct marketing and on-site promotions. Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and communication tools and practices. For example, many companies in the financial industry are providing electronic statements by email; e-marketing is rapidly replacing more traditional marketing methods and printed materials can be produced using recycled materials and efficient processes such as waterless printing.


The era of green marketing has begun. It has already been granted wide acceptance by all stakeholders. However, there is a need to lay down the standards and practices, in order to bring in objectivity in the judgment of various national and international agencies. This will not only encourage the activities of green marketing but shall also provide the much needed level playing fields to all. DEVELOPMENT OF ISO 14000 SERIES OF STANDARDS: ISO has been developed to help any company in any country to meet the goal of sustainable development and environmental friendliness. The ISO 14000 family of standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were published as an official document in 1996. The ISO series aims to provide guidance for developing a comprehensive approach to environmental management and for standardizing some key environmental tools of analysis such as labeling and life cycle assessment. ECO-LABELING INITIATIVES: Eco label provide information regarding the environmental performance of products. The objective of eco-labeling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers. In India the government has introduced the eco-mark scheme since 1981. The objectives of the scheme are: -To provide incentives to manufacturers and importers to reduce the adverse environmental impact of products.


-To reward genuine initiatives by companies to reduce adverse impact of environmental impact of products. ECO-LABELLING SCHEMES IN INDIA: The Ministry of environment and forest of government of India has prescribed the following criteria for products: -That they cause substantially less pollution than comparable products in production, usage and disposal, -That they are recycled and/or recyclable whereas comparable products are not. -That they contribute to a reduction on adverse environmental health consequences. ECO-MARK IN INDIA: Under the concept, products which are less harmful to the environment or have benign impact on environment through the various stages of developmentmanufacture, packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the logo for EcoMark scheme in India. The familiar earthen pot has renewable resource like earth, does not produce hazardous waste and consume little energy in making. As a symbol it puts across its environmental message. Its image has the ability to reach people and help to promote a greater awareness of the need to be kind to the environment. The logo Eco-Mark scheme signifies that the product which carries it does least damage to the environment. STAKEHOLDERS IN GREEN MARKETING: These are all the people or groups whose lives or environment are affected by the project, but who receive no direct benefit from it. These can include the teams families, people made redundant by the changes introduced, people who buy the product and the local community.


Many organizations want to turn green, as an increasing number of consumers' want 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. There are numerous challenges in the field of green marketing. Some of the major hurdles are as following: Need For Standardization: It is found that very less percentage 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 labelling 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 Indias ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In those aspects the consumer is already aware and will be inclined to accept the green products.

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. 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 loose its market acceptability.

Some Other Challenges Ahead In Green Marketing Are: * 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. Green Washing In spite of its growing popularity, the green marketing movement faced serious setbacks in the late 1980s because many industries made false claims about their products and services. For instance, the environmental organization Corp Watch , which issues annually a list of the top ten "green washing" companies, included BP Amoco for advertising its "Plug in the Sun" program, in which the company installed solar panels in two hundred gas stations, while continuing to aggressively lobby to drill for oil in the Arctic National Welfare Refuge. Green marketing can be a very powerful marketing strategy though when it's done right. In a similar kind of case Chads green marketing campaign bombed because he made the mistake of packaging his environmentally friendly product in Styrofoam, emitting CFCs. .

The Green Dilemma

The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. The so-called "green consumer" movements in the country have struggled to reach critical mass and to remain in the forefront of shoppers' minds. One of green marketing's


challenges is the lack of standards or public consensus about what constitutes "green". This lack of consensus -- by consumers, marketers, activists, regulators, and influential people -- has slowed the growth of green products, says Makeover, because companies are often reluctant to promote their green attributes, and consumers are often skeptical about claims. 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.


Todays 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, though initially the cost is more. It helps the companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying the competitive advantage. Most of the employees also feel proud and responsible to be working for an environmentally responsible company. Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets, It also increase their profit sustainability, and Enjoy a competitive advantage over the companies which are not concerned for the environment. With the proliferation of environmental stories in the press and broadcast media, individuals (whether as a consumer or acting for a company), are more aware of

their personal responsibility to try to make a difference. Appealing to this need can increase response rates to marketing executions and build brand loyalty. Green marketing is very low on the agenda of most businesses and therefore its still an under-leveraged USP (Unique Selling Proposition). Effective green marketing targeted at the right audience will make a difference. As resources are limited and human wants are unlimited, it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization's objective. So green marketing is inevitable. There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behaviour. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. Man has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives. When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: a) Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives b) Organizations believe they have a moral obligation to be more socially responsible c) Governmental bodies are forcing firms to become more responsible d) Competitors' environmental activities pressure firms to change their environmental marketing activities

e) Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior.


As in formulation of green strategy, a firm may evolve it from a SWOT analysis Environmental Audit. 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 ecoresponsible. 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.

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.

1. Uncertainty as to the environmental impact of present activities, including that is perceived to be less environmentally harmful. 2. Uncertainty as to which green marketing activities are acceptable from a government perspective. 3. The possibility of a backlash from consumers or government based on existing green marketing claims, threat one and two above may cause backlash to arise. E.g. competitors gain market shares with green products and increased environmental regulations).

It is a management tool which can be used to assess the environmental performance of the company and its units and to identify the weak points. Environmental Audit is comprised of a systematic, documented, periodic and objective environmental performance evaluation and facilities. GREEN PRODUCTS: ITS CHARACTERISTICS These products that are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development. We can define green products by following measures: Products those are recyclable, reusable and biodegradable Products with natural ingredients Products containing recycled contents, non-toxic chemical Products contents under approved chemical Products that do not harm or pollute the environment Products that will not be tested on animals

Products that have eco-friendly packaging i.e. reusable, refillable containers etc.


ITC has been 'Carbon Positive' three years in a row (sequestering/storing twice the amount of CO2 than the Company emits). 'Water Positive' six years in a row (creating three times more Rainwater Harvesting potential than ITC's net consumption). Close to 100% solid waste recycling. All Environment, Health and Safety Management Systems in ITC conform to the best international standards. ITC's businesses generate livelihoods for over 5 million people. ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families.

ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of drylands and moisture-stressed areas.


The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly. The company credited the 'Just-in-Time' philosophy adopted and internalized by the employees as the prime reason that helped to excel in this direction. The company has been promoting 3R since its inception. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption. The company has implemented rain water harvesting to recharge the aquifers. Also, recyclable packing for bought out components is being actively promoted. The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. Regular training programs are


conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more guidance. The systems and the environmental performance of suppliers are audited. The green co-efficient of this system is much better than the conventional system. 3.HCLS: ENVIRONMENT MANAGEMENT & ECOSAFE POLICY In building a system to identify, develop and sustain the maintenance of an environment management system at corporate level we have formulated a program that we proudly refer as HCL's ecosafe. The aim is to encapsulate knowledge, awareness, and key developments on all environmental issues faced by today's world and to incorporate these in HCL's operations assuring our commitment in delivering quality products, solutions and services. The key objective under HCL ecoSafe is targeted at integrating environmental management procedures into its business processes thereby protecting the environment, health, and safety of all its stakeholders. HCL commits to manufacture products that areenvironment friendly in all respects and are free from hazardous chemicals. HCL ecoSafe focuses on product lifecycle management to ensure that our products right from when they are manufactured, bought by customers, recovered at their end- of-life and recycled after useful life are done in an environmentally responsible manner.


PHILIPS LIGHT'S CFL: Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficulty climbing out of its deep green niche. The company re-launched the product as 17 "Marathon," underscoring its new "super long life" positioning and promise of saving $26 in energy costs over its five-year lifetime Finally, with the U.S. EPA's Energy Star label to add credibility as well as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent in an otherwise flat market. CAR SHARING SERVICES: Car-sharing services address the longer-term solutions to consumer needs for better fuel savings and fewer traffic tie-ups and parking nightmares, to

complement the environmental benefit of more open space and reduction of greenhouse gases. They may be thought of as a "time-sharing" system for cars. Consumers who drive less than 7,500 miles a year and do not need a car for work can save thousands of dollars annually by joining one of the many services springing up, including ZipCar (East Coast), Flex Car (Washington State), and Hour Car (Twin Cities). ELECTRONIC SECTOR: The consumer electronics sector provides room for using green marketing to attract new customers. One example of this is HP's promise to cut its global energy use 20 percent by the year 2010. To accomplish this reduction below 2005 levels, The Hewlett-Packard Company announced plans to deliver energyefficient products and services and institute energy-efficient operating practices in its facilities worldwide.


New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution.

Hindustan petroleum owns a massive e-waste recycling plants, where enormous shredders and granulators reduce four million pounds of computer detritus each month to bite-sized chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and even some precious metals. HP will take back any brand of equipment; its own machines are 100 percent recyclable. It has promised to cut energy consumption by 20 percent by 2010.


Laundry detergents are also touting energy savings. Proctor & Gambles (P&G) newest market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About 80 to 85 percent of the energy used to wash clothes from heating water. Working with utility companies, P and G found that consumers


could save energy and resources by using cold rather than warm water. As energy and resource prices continue to soar, opportunities for products offering efficiency and savings are destined for market growth.

PRESENT TREND:GREEN MARKETING IN INDIA Organizations Perceive Environmental Marketing To Be An Opportunity That Can Be Used 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: 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 industrys use and /or consumption of harmful goods; Ensure that all types of consumers have the ability to evaluate the environmental 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 Behaviour: 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.


There are many lessons to be learned to be learned to avoid green marketing myopia, the short version of all this is that effective green marketing requires applying good marketing principles to make green products desirable for consumers. The question that remains, however, is, what is green marketings future? Business scholars have viewed it as a fringe topic, given that environmentalisms acceptance of limits and conservation does not mesh well with marketings traditional axioms of give customer what they want and sell as much as you can. Evidence indicates that successful green products have avoided green marketing myopia by following three important principles: 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.


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. STRATEGIES FOR GREEN COMMUNICATION: Make environmental messages consistent with the companys existing voice in the market place. Empower consumers to get involved to make a difference. Enlist cultural icons to tell the story. Be ready to experiment publicly, even if it doesnt always lead to success. Price environmentally preferable products comparable to conventional ones. Link environmental innovations to other benefits, like quality and durability. Thanks customers for making good, green choices, and tell them how they are making a difference. Seek recognition from peers and activists groups and challenge competitors to join in. Green products shouldnt be any different from regular ones in branding, price, use or performance.



Organizations are putting continuous efforts to differentiate their products and services using green marketing practice. In a wide range of markets including retailing etc companies have used eco performance to differentiate and to compete. Products with poor eco performance can become targets for new substitution, as a result of this many organizations are coming up with greener ideas to differentiate their products from competitors. CONSUMER VALUE POSITIONINGorganizations can design environmental products to perform as well as provide alternatives. In addition to this promoting and delivering the consumer desired value of environmental products and target relevant consumer market segments can help the organization to differentiate. CALIBERATION OF CONSUMER KNOWLEDGE-Educates customers with marketing messages that connect environmental product attributes with desired consumer value.


II. DESIGNING BIO-DEGRADABLE PACKAGING It is seen that promotion of green products strongly influences the consumers buying decisions. It is one of the most important factors of product attractiveness. Thus it has been indicated that bio-degradable packaging will affect in a strong and moderate way respectively on their buying decisions. As a marketing strategy the companies should modify the product packaging by using only the recycle as well as handmade paper in packaging. Instead of being more mechanized the companies must find creative ways reusing the waste products which are harmful to the environment. Manufacturing companies which are using plastic for packaging should meet certain standardization. For example Bisleri plastic bottles or the water bottles can last only for 15 days and after that it generates certain chemicals which are harmful and there is no reusability of this kind of plastic. Companies should modify these kinds of packaging styles and find out some innovative ways to recycle it.


In this strategy marketers can identify customers environmental needs and develop products to address this issue, produce more environmentally responsible packages and insure that products meet or exceed the quality expectation of customers. In addition to that marketer can charge higher price with highlighting eco-friendliness of the products. IV. DISTRIBUTION STRATEGY In case of this strategy obtaining dealer support to green marketing practice is essential. The location must differentiate from competitors and it can be achieved by in-store promotions and displays by using recycle materials to emphasize the environmental and other benefits. Even though distribution has no big involvement in green marketing, few consumers are willing to get the services from places and distribution channels which are not cause to environmental pollution. V. LIFE-CYCLE ANALYSIS Brands which aspire to be sustainable must get their house in order before they start planning any green marketing initiatives. The best brands are performing life cycle analysis- complex assessments which provide critical data


on social, environmental and economic impact of products through the supply chain production process and after the purchase. Life cycle analysis tells a brand just how far it needs to go before it claims to be sustainable. VI. INCENTIVES AND STRUCTURAL FACTORS Commercialization programs and incentives help get new technologies introduced examples include fleet programs to cultivate strategic niche markets and by providing financial incentives such as the advanced vehicle tax credit proposal in case of green vehicle purchase. Consumers can be motivated by incentives and awards to: Curtail Reduce the impact on the environment by modifying extant living patterns. Maintain Keep equipment in good working order. Be efficient Undertake structural changes such as buying environmental friendly equipment.



The aim of this study is to investigate immense opportunities and associated challenges in Green Marketing. Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its potential. Marketing Green means having a vision and a plan and taking (cautious) action. As more companies look to promote their environmentally savvy practices, it's a good idea to pause for a moment and consider what companies are marketing when promoting organization as green or sustainable. RESEARCH OBJECTIVE: Primary Objectives: 1.To know the benefits and opportunities of green marketing strategy 2.To study the challenges in green marketing. Secondary Objectives: 1.To check the awareness about eco-friendly products of the peoples and make them aware. 2.To know the strategy being a green is either helpful or not. RESEARCH HYPOTHESIS: A tentative insight into the natural world, a concept that is not yet verified but that if true would explain certain facts or phenomena. The hypothesis to be tested in this study is: There are sufficient opportunities for green marketing and green products in gurgaon.

Descriptive research design is used in this research. It includes survey and fact finding inquiries of different kinds. The major purpose of descriptive research is description of the state of the affairs, as it exists at present. DATA COLLECTION: There are two sources through which data is collected. Primary Data:Primary data has been collected mainly through structured questionnaire. The questions were designed in an easily understandable manner that the respondents may not have any difficulty in answering them. Secondary Data:Secondary data has been obtained through websites, books, and online magazines and journals.


a. b. c.

Sampling technique Sample size Sampling area

Simple Random Sampling 100 Gurgaon


1)As the topic of research is wide so time is the main constraint in the research. 2) Target audience is also another limitation as the people had less awareness about green marketing. 3)Some respondents were not interested in giving answer and they appeared to be busy and bored at the very sound question. 4)The research is confined to a certain parts only and does not necessarily show a pattern applicable to all of Country. 5)In a rapidly changing environment, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. 6)Time and money are one of the major constraints of any research activity and this is also attributed with research.





: :

58 42

Hence from the above graph we come to know that 58% of respondents are aware about some or other green marketing campaign carried by companies. On the other hand 42% respondents do not know by any means. It needs a larger attention from the marketers perspective.



Television Newspapers Friends/family magazines Internet

: : : : :

6 19 7 12 14

While responding people agreed that newspaper is the major source of information about green campaign.About 33% said they came to know about green campaign from newspapers,24% from internet,21% from magazines, 12% from family and friends and surprisingly only 10% from the television.


When people were asked whether they have been part of any green campaign,55% said yes whereas 45% denied.


CONSIDER ENVIRONMENTAL ASPECT OF PRODUCT WHILE BUYING Very often Often Sometimes Rarely Never : : : : : 9 10 16 14 7

Here from the above graph we see that majority 29% people sometimes give consideration to the environmental aspects of products while buying,25% people gives consideration rarely,18% often and 12% most often give consideration to the environmental aspect while buying product. The weighted mean score after calculation is +2.90 which means that in overall people sometimes give consideration to environmental aspect while buying product.

GREEN MARKETING AND ITS ADVERTISING IS GOOD SOURCE OF INFORMATIONA BOUT GREEN PRODUCTS/SERVICES Highly agree Partially agree Neutral Partially disagree Highly disagree 10 11 15 13 9


From the above graph 26% people neither agree nor disagree that green marketing and its advertising are good source of information about green products and services.22% people partially disagrees from this whereas 16 % highly disagree and 19% are partially agreed.

GREEN MARKETING ACTIVITIES ARE GOOD AT ADRESSING ENVIRONMENTAL ISSUES Highly agree Partially agree Neutral Partially disagree Strongly disagree : : : : : 11 19 9 9 10

Here we come to know that 33% people partially agree that green marketing activities are good at addressing environmental issues; 15% people are neutral, 17% people highly disagree.


GREEN MARKETING ACTIVITIES RESULT IN BETTER PRODUCT Highly agree Agree Neutral Disagree highly disagree : : : : : 34 16 5 3 0

59% of people strongly agree that the green marketing activities result in better products whereas 9% are neutral on this and 5% disagree and 27% agrees.

COMPANIES OPT FOR THIS STRATEGY Government pressure Competitive pressure As a part of CSR immense opportunity : : : : 8 16 15 19

Hence from the above graph it can be seen that 14% of people think that companies opt green strategy because of the government pressure, 27% due to have a competetive edge over others.26% believe that it is a part of CSR and 33% immense opportunity.


GREEN MARKETING STRENGTHEN COMPANYS IMAGE IN THE MIND OF CONSUMERS Highly agree : 25 Agree : 28 Neutral : 3 Disagree : 2 Highly disagree : 0

Hence 48% people highly agreed that green marketing strengthen the companys image, 43% also agreed.5% people were neutral whereas 4% disagree

COMPANIES THAT FOCUS ENVIRONMENT CONCERNS PERSUADE CONSUMER TO BUY THE PRODUCT Highly agree : 21 Agree : 17 Neutral : 11 Disagree : 5 Highly disagree : 4


36% highly agrees that they are easily persuaded by companys with green marketing initiatives,29% people agree and 14% are neutral.


46% people believe that the green strategy can help the environment grow in a healthier manner whereas 12% does not believe.



Hupothesis: There are sufficient for green marketing and green products in gurgaon. Variable observed expected (O-E) (O-E)2 (O-E)2/E Ques 1 58 45 +13 169 3.76 Ques 3 32 45 -13 169 3.76 Ques 12 46 45 +1 1 0.02

Hence the calculated value of 2= 7.54
Since dergree of freedom in given problem is

(N-1)=(3-1)=2 The table value of 2 for 2 degree of freedom at 28% level of significance is 7.834

Comparing calculated and tabulated value of2, we find that calculated value is less than the table value. The result, thus, supports the hypothesis and it can be concluded that there are sufficient opportunities for green marketing and green products in gurgaon.


DEMOGRAPHIC PROFILE OF RESPONDENTS AGE UNDER 18 19-35 36-50 50 ABOVE : : : : 21 39 28 12 74 26 24 19 27 30


ANNUAL INCOME (IN RUPEES) LESS THAN 1.5 LAKH : 32 1.5 TO 3 LAKH : 37 3 TO 5 LAKH : 21 5 & ABOVE : 10



Conclusion: Green marketing should not neglect the economic aspect of marketing. Marketers need to understand the implications of green marketing. Green marketing to some extent strengthen companys image in the mind of respondents that is very much clear from trustworthiness of green claims and


certainly it do have positive image of the organization in the minds of the respondents. It was observed that the respondents who were more proactive with the environmental behaviour have positive attitude towards green advertisements. It is evident that green marketing have positive impact on only those who are already practicing it. Rest of the respondents who were passive had very less impact on their buying behaviour. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, the responsibility should not be theirs alone. Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. We need to come out through green myopia. Having said this, it must not be forgotten that the industrial buyer also has the ability to pressure suppliers to modify their activities. Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally responsible fashion. Final consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities.

Thus green marketing should look at minimizing environmental harm, not necessarily eliminating it. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, ultimately it is consumers who demand goods, and thus create environmental problems. One example of this is where McDonald's is often blamed for polluting the environment because much of their packaging finishes

up as roadside waste. It must be remembered that it is the uncaring consumer who chooses to disposes of their waste in an inappropriate fashion. While firms can have a great impact on the natural environment, the responsibility should not be theirs alone. It appears that consumers are not overly committed to improving their environment and may be looking to lay too much responsibility on industry and government. Thus, we can say that there are sufficient opportunities for green marketing in gurgaon but it may also face lot of challenges as considerable percentage of population are not aware and also willing to know the affairs of green marketing initiatives. We need to educate them through proper campaigns. Green marketer must find an opportunity to enhance you product's performance and strengthen your customer's loyalty.




Suggestions: Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its potential. There are some suggestion that an organizations should implement for catering challenges of green marketing and successful exploitation of green marketing. Those are: Consumer needs to be made more aware about the merits of Green products. It is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. It should be made sure that the consumer is aware of and concerned about the issues that your product attempts to address. Green Marketing campaign and green advertising is good step toward it. Consumers must be motivated to switch brands or even pay a premium for the greener alternative. Make sure that consumer feel that they can make a difference. Make sure that consumer feel that they can make a difference. This

is called empowerment and due to this main reason consumers will buy greener products. Further steps should be taken to control false promise and claim by the marketer to maintain legitimacy and trustworthiness of green products. Consumers must be made to believe that the product performs the job its supposed to do-they wont forego product quality in the name of the environment. For effective and efficient implementation of this concept of Green Marketing the factor that plays a major role is the Government. Unless the government creates specific and stringent laws and utilizes its authority to implement them the concept cannot be conceptualized. If the Consumer, the Organization and the Government work in unison towards the common goal of minimizing the detrimental environmental impact of their activities, then they can surely save this environment and make this world a better place to live in. Thus leading brands should recognize that consumer expectations have changed. It is not enough for a company to green its products; consumers expect the products that they purchase pocket friendly and also to help reduce the environmental impact in their own lives too. Todays consumers are becoming more and more conscious about the environment and are also becoming socially responsible. Therefore, more companies should become responsible to consumers aspirations. Many companies want to have an early mover advantage as they have to eventually move towards becoming green. Green marketing is very low on the agenda of most businesses and therefore its still an under-leveraged USP (Unique Selling Proposition). Therefore, effective green marketing targeted at the right audience will make a difference




I. Kothari C.R. (2004), Research Methodology Methods and Techniques, N. Delhi, New Age International Publication ii. Green, Paul, Tull (2002) Research for Marketing Decisions, N. Delhi, Prentice-Hall of India iii. Sharma D.D. (2008), Marketing Research: Principle Application & Cases N. Delhi, Sultan Chand & Sons iv. Kotler P. (1999), Marketing Management, N. Delhi, Prentice-Hall of India. v. Rajagpalan R. (2003), Environment Studies, N. Delhi, Himalayan Publishing House. vi. Certo, S.C. (1997), Modern Management, Englewood Cliffs, Prentice-Hall

a. b. c. d. e.




Hello sir/madam, I Ravinder Khatri, here to conduct a research on the topic oppurtunities & challenges for green marketing for corporates . Please give your honest opinion and this information collected will be purely confidential and will not be shared for any purpose other than research.
1. a) b)

Have you heard of any campaign related to Green Marketing?

Yes No

2.If yes from which source of media? a) television b) newspaper c) friends/family d) magazines e) internet 3.Have you been part of any such campaign? a) yes b) no 4. Do you consider the environmental aspect of product before buying them? a) very often b) often c) sometimes d) rarely e) never 5. Do you think green marketing and its advertising are good sources of information about green products and services? a) highly agree b) agree c) neutral d) disagree e) highly disagree 6.Do you agree that green marketing activities are good at addressing environmental issues?

a) highly agree b) agree c) neutral d) disagree e) highly disagree 7. Do you think green marketing activities result in better products? a) highly agree b) agree c) neutral d) disagree e) highly disagree 8.Why do companies opt for this strategy? a) govt. Pressure b) comp. Pressure c) as a part of CSR d) immense opportunity 9. Do you think that green marketing strengthen companys image in the mind of consumers? a) highly agree b) agree c) neutral d) disagree e) highly disagree 10. Do you think that companies that focus on environmental concerns persuade consumers to buy products? a) highly agree b) agree c) neutral d) disagree e) highly disagree 11. Do you think this strategy will help to grow healthy environment? a) yes b) no PERSONL PROFILE NAME: AGE: OCCUPATION: POSTAL ADDRESS:


Thank you!!!!!