Green Marketing Important

7/27/2019 Green Marketing Important

1/23

UNIVERSITY OF MUMBAI

PROJECT REPORT ON

GREEN MARKETING

PROJECT GUIDE

PROF. NITHYA VARGHESE

SUBMITTED BY: Mustafa Lokhandwala

Roll No: 4246

MAHATAMA EDUCATION SOCIETYS

PILLAIS COLLEGE OF ARTS, COMMERCE & SCIENCE

NEW PANVEL

1


2/23


3/23

DECLARATION

I hereby declare that this Project entitled Green Marketing has been

carried out by me, Mustafa Faiyaz Lokhandwala, student ofT.Y.B.com

(B) in Pillais College of Arts Science and Commerce, Mumbai

University, Roll no-4246. The research confirms to course regulations

I declare that no material contained within this assignment has been used in

any other submission, by the author, for an academic award.

I further declare that the information presented in this project is true and

original to the best of my knowledge.

3


4/23

ACKNOWLEDGEMENTS

The contribution of my Faculty at Pillais College of Arts Science and

Commerce (Affiliated to Mumbai University) has made this project

possible.

I am thankful Prof. A.N. Kutty (Vice Principal) of our College for this

opportunity of Project

I am also grateful to Mrs. Seema Somani, the Faculty Coordinator of my

project, for providing encouragement and for the valuable interactions I

have had with her. Her valuable and appropriate inputs helped me to

complete my paper successfully.

I am also thankful to Idea Cellular, H.M motors, IndusInd Bank and

TNPL for their continuous support and cooperation.

Finally, I would like to thank our Faculty Coordinators. Their support and

coordination in providing study material has helped tremendously to make

the project informative and comprehensive.

4


5/23

INDEX

S.No CONTENTS PAGE NO.

1. GREEN MARKETING 5

2. WHY GREEN MARKETING? 6

3. ADVANTAGES OF GREEN MARKETING 7

4. MARKET MIX OF GREEN MARKETING 9

5. EXAMPLES OF INDIAN COMPANIES 11

6.INDIAN COMPANIES INTO GREEN

MARKETING15

7.MOST ENVIRONMENTLY FRIENDLY

COUNTRIES16

8. SOME GREEN MARKETING PRINT ADS 20

9. CONCLUSION 2110. BIBLIOGRAHY 22

5


6/23

1. GREEN MARKETING

According to the American Marketing Association, Green marketing is

the marketing of products that are presumed to be environmentally safe.

Thus green marketing incorporates a broad range of activities, including

product modification, changes to the production process, packaging

changes, as well as modifying advertising.

Green Marketing can also be defined as Promotional activities aimed at

taking advantage of the changing consumerattitudes toward abrand. Thesechanges are increasingly being influenced by a firm'spolicies andpractices

that affect the quality of the environment, and reflect the level of its

concern for the community.

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.

Thus "Green Marketing" refers to holistic marketing concept wherein the

production, marketing consumption an disposal of products and services

happen in a manner that is less detrimental to the environment with

growing awareness about the implications of global warming, non-

biodegradable solid waste, harmful impact of pollutants etc., both marketers

and consumers are becoming increasingly sensitive to the need for switch

in to green products and services.While the shift to "green" may appear to be expensive in the short term, it

will definitely prove to be indispensable and advantageous, cost-wise too,

in the long run. We define Green Marketing as an art of creating

awareness among consumers about carefully planned and developed eco

compliant products and services using competitive pricing, promotion and

6
http://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/advantage.htmlhttp://www.businessdictionary.com/definition/consumer.htmlhttp://www.businessdictionary.com/definition/attitude.htmlhttp://www.businessdictionary.com/definition/brand.htmlhttp://www.businessdictionary.com/definition/changes.htmlhttp://www.investorwords.com/1967/firm.htmlhttp://www.businessdictionary.com/definition/policy.htmlhttp://www.businessdictionary.com/definition/practice.htmlhttp://www.businessdictionary.com/definition/quality.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.businessdictionary.com/definition/advantage.htmlhttp://www.businessdictionary.com/definition/consumer.htmlhttp://www.businessdictionary.com/definition/attitude.htmlhttp://www.businessdictionary.com/definition/brand.htmlhttp://www.businessdictionary.com/definition/changes.htmlhttp://www.investorwords.com/1967/firm.htmlhttp://www.businessdictionary.com/definition/policy.htmlhttp://www.businessdictionary.com/definition/practice.htmlhttp://www.businessdictionary.com/definition/quality.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.businessdictionary.com/definition/activity.html


7/23


8/23

pose a threat to such industries. Many global players in diverse businesses

are now successfully implementing green marketing practices.

3. ADVANTAGES OF GREEN MARKETING

Advantages ofGreen Marketing are:-

Opportunity

Social Responsibility

Government Interferences

Competitive Pressure

Cost Cutoff

1. Opportunity:- In India, around 25% of the consumers preferenvironmental-friendly products, and around 28% may be considered

healthy conscious. Therefore, green marketers have diverse and fairly

sizeable segments to cater to.Some examples are:-

1.The Surf Excel detergent which saves water (was advertised with

the message"do bucket paani roz bachana")

2. The energy-saving LG consumers durables are examples ofgreen

marketing. We also have green buildings which are efficient in theiruse 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.

3. 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. They are generally concerned with collecting goods

directly from the manufacturing concern and they sell it to various

wholesalers in different areas.

2.Social Responsibility :- Many companies have started realizing that they

must behave in an environment-friendly fashion. They believe both in

8


9/23

achieving environmental objectives as well as profit related objectives.

Some of examples are :-

HSBC Bankbecame the world's first bank to go carbon-neutral.

Coca-Cola, which has invested in various recycling activities.

3. Government Pressure:- 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

Examples are;-

Theban of plastic bags in Mumbai.

Prohibition of smoking in public areas, etc.

4. Competitive Pressure:- Many companies take up green marketing to

maintain their competitive edge

5. Cost Reduction:- Reduction of harmful waste may lead to substantialcost savings. Sometimes, many firms develop symbiotic relationship

whereby the waste generated by one company is used by another as a cost-

effective raw material. Examples are:-

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.

9


10/23

4. MARKET MIX OF GREEN MARKETING

When companies come up with new innovations like eco friendly products,

they can access new markets, enhance their market shares, and increase

profits. Just as we have 4Ps product prices, place and promotion in

marketing, we have 4ps in green marketing too, but they are a bit different.

They are added by three additional Ps, namely people, planet and profits.

A. PRODUCT:

The products have to be developed depending on the needs of the

customers who prefer environment friendly products. Products can be made

from recycled materials or from used goods. Efficient products not only

save water, energy and money, but also reduce harmful effects on the

environment. The marketer's role in product management includes

providing product designers with market-driven trends and customerrequests forgreen product attributes such as energy saving, organic, green

chemicals, local sourcing, etc. Examples are

Nike is the first among the shoe companies to market itself as green.

It is marketing its Air Jordan shoes as environment-friendly, as it

has significantly reduced the usage of harmful glue adhesives. It has

designed this variety of shoes to emphasize that it has reduced

wastage and used environment-friendly materials.

B. PRICE:

Green pricing takes into consideration the people, planet and profit in a

way that takes care of the health of employees and communities and

10


11/23

ensures efficient productivity. Value can be added to it by changing its

appearance, functionality and through customization. Examples are:-

Wal Mart unveiled its first recyclable cloth shopping bag.

IKEA started charging consumers when they opted for plastic bagsand encouraged people to shop using its "Big Blue Bag".

C. PLACE:

Green place is about managing logistics to cut down on transportation

emissions, thereby in effect aiming at reducing the carbon footprint. For

example, instead of marketing an imported mango juice in India it can be

licensed for local production. This avoids shipping of the product from far

away, thus reducing shipping cost and more importantly, the consequent

carbon emission by the ships and other modes of transport.

D. PROMOTION:

Green promotion involves configuring the tools of promotion, such as

advertising, marketing materials, signage, white papers, web sites, videos

and presentations by keeping people, planet and profits in mind. Examples

are:-

British petroleum (BP) displays gas station which its sunflower

motif and boasts of putting money into solar power.

Indian Tobacco Company (ITC) has introduced environmental-

friendly papers and boards, which are free of elemental chlorine.

Toyota is trying to push gas/electric hybrid technology into much of

its product line. It is also making the single largest R&D investment

in the every-elusive hydrogen car and promoting itself as the first eco-friendly car company.

International business machines Corporation (IBM) has revealed a

portfolio of green retail store technologies and services to help

retailers improve energy efficiency in their IT operations.

11


12/23

Consumer awareness can be created by spreading the message among

consumers about the benefits of environmental-friendly products. Positing

of profiles related to green marketing on social networks creates awareness

within and across online peer groups. Marketing can also directly target the

consumers through advertisements for product such as energy savingcompact fluorescent lamps, thebattery powered Reva car, etc.

5.EXAMPLES OF INDIAN GREEN PARTICIPANTS:

1. Hero-Honda Motors Ltd

Hero Honda Motors Ltd. is the world's largest manufacturer of two

wheelers, based in India.

The company is a joint venture between India's Hero Group and Honda

Motor Company, Japan that began in 1984.

In 2001, the company achieved the coveted position of being the largest

two-wheeler manufacturing company in India and the World No.1 two-

wheeler company in terms of unit volume sales in a calendar year by asingle company. Hero Honda has retained that coveted position till date.

Today, every second motorcycle sold in the country is a Hero Honda bike.

Every 30 seconds, someone in India buys Hero Honda's top-selling

motorcycle Splendor.

Vision

The Hero Honda story began with a simple vision the vision of a mobileand an empowered India, powered by Hero Honda. This vision was driven

by Hero Hondas commitment to customer, quality and excellence, and

while doing so, maintaining the highest standards of ethics and societal

responsibilities. Hero Honda believes that the fastest way to turn that dream

into a reality is by remaining focused on that vision.

12


13/23

Strategy

Hero Hondas key strategy has been driven by innovation in every sphere

of activity building a robust product portfolio across categories, exploring

new markets, aggressively expanding the network and continuing to investin brand building activities.

Manufacturing

Hero Honda bikes are manufactured across three globally benchmarked

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera

which are located in the state of Haryana in northern India. The third and

the latest manufacturing plant are based at Haridwar, in the hill state of

Uttrakhand.

Technology

In the 1980s Hero Honda pioneered the introduction of fuel-efficient,

environment friendly four-stroke motorcycles in the country. Today, Hero

Honda continues to be technology pioneer. It became the first company to

launch the Fuel Injection (FI) technology in Indian motorcycles, with the

launch of the Glamour FI in June 2006.

Products

Hero Honda's product range includes variety of motorcycles that have set

the industry standards across all the market segments. The company also

started manufacturing scooter in 2006. Hero Honda offers large no. of

products and caters to wide variety of requirements across all the segments.

Distribution

The Companys growth in the two wheeler market in India is the result of

an intrinsic ability to increase reach in new geographies and growth

markets. Hero Honda's extensive sales and service network now spans close

to 4500 customer touch points. These comprise a mix of authorized

dealerships, Service & Spare Parts outlets, and dealer-appointed outlets

across the country.

13


14/23

Brand

The Company has been continuously investing in brand building utilizing

not only the new product launch and new campaign launch opportunities

but also through innovative marketing initiatives revolving around cricket,

entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey,

cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH

Hockey World Cup that was played in Delhi during Feb-March 2010. Hero

Honda also partners the Commonwealth Games Delhi 2010.

Hero Honda is also known as A Green Company

Which include new work process which systematically eliminatesdangerous wastes

Manufactures products as per RTO specification of CO2 emission

Limit through Bharat 1, Bharat 2, Bharat 3, Bharat 4.(Bharat 1,2,3,4

means CO2 emission Level limits)

2. Idea Cellular Ltd

Developed by IDEAs creative agency, Lowe, this new ad campaign

promotes the idea of mobile VAS usage for vast number of day to day

activities, to save paper and save Earth. This is IDEA Cellular's latest

campaign, after a successful series of What an Idea, Sirji! Campaigns with

Brand Ambassador, Abhishek Bachchan that now goes on air.

Speaking about the campaign, Mr. Pradeep Shrivastava, Gallery In-charge,

IDEA Cellular said, "Environment as a subject touches all, but gets

attention only at strategic forums. The common man gets to contribute little

towards the cause, due to lack of direction and ideas. Hence, IDEA Cellularhas taken up the responsibility of educating the 500 million mobile phone

users in the country. If they start using the mobile phone more judiciously,

together we can make a significant contribution of saving paper, and

therefore, the green cover necessary for the health of the planet."

14


15/23

The latest IDEA environment campaign will now be extensively seen

across TV, Print, Digital and Outdoor media space in coming days. The

company further plans to launch range of Value Added Services to help

consumers stay informed through utility services on their mobile phones,

thus reducing dependency on paper usage.

As per the press release, "World over, millions of tonnes of trees get cut

everyday to produce paper, leading to alarming rates of deforestation. The

new IDEA TVC showcases how the mobile phone can be used as an

efficient tool to read daily newspapers, generate e-bills, make payments and

transactions, issue e-tickets and boarding passes; thereby saving tonnes of

paper everyday."

Abhishek Bachchan can be seen portraying the role of an agonized Tree

this time. He advocates the idea of using mobile phone to save paper, and

therefore, the greenery around him through this campaign

3. IndusInd Bank:

IndusInd Bank, a new generation private sector bank, inaugurated

Mumbais first solar-powered automated teller machine (ATM) as part of

its Green Office Project campaign Hum aur Hariyali. It also unveiled aGreen Office Manual - A Guide to Sustainable Practices, prepared in

association with the Centre for Environmental Research and Education

(CARE).

IndusInd Bank has a comprehensive plan to reduce its carbon footprint.

Some of the initiatives being undertaken under this plan are solar powered

ATMs, thin computing, e-archiving, e-learning, e-waste management,

paperless fax, energy conservation, CNG cars and also supporting finance

programs with incentives to go green

15


16/23

6. INDIAN COMPANIES INTO GREEN MARKETING

ORCHID-Indias only Ecotel

The Orchid - An Ecotel Hotel in Mumbai is Asia's first certified eco-

friendly five-star hotel and world's only Ecotel to be certified as ISO

14001. This 245 - room hotels strategically located adjacent to the domestic

airport making it a convenient place for the business traveler to stay. The

exclusivity of The Orchid is experienced as soon as one enters the atrium

that is serenaded by a 70-foot indoor waterfall. Around the waterfall, on the

first level is the Boulevard, the 24-hour coffee shop. The beautiful Orchids

growing there give you a feel of the truly Orchid experience. Besides, TheBoulevard provides a unique guaranteed time-bound service aptly called

the "Lightening Menu" or the "10 Minute Menu". If the service is even a

minute late, the meal is on the house!

The 69 international awards reiterate the efforts of The Orchid of being a

pioneer amongst environment friendly hotels.

Tamil Nadu Newsprint and Papers Limited (TNPL)Adjudged the best performer in the 2009-2010 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

16
http://www.orchidhotel.com/mumbai_hotels/hotels_rooms.htmhttp://www.orchidhotel.com/mumbai_hotels/boulevard_coffeeshop.htmhttp://www.orchidhotel.com/mumbai_hotels/awards.htmhttp://www.orchidhotel.com/mumbai_hotels/hotels_rooms.htmhttp://www.orchidhotel.com/mumbai_hotels/boulevard_coffeeshop.htmhttp://www.orchidhotel.com/mumbai_hotels/awards.htm


17/23

project that helped generate 2,30,323 Carbon Emission Reductions earning

Rs. 17.40 Crore.

Oil and Natural Gas Company (ONGC)

Indias largest oil producer, ONGC, is all set to lead the list of top greenIndian 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.

7. THE MOST ENVIRONMENT FRIENDLY COUNTRIES

India has been voted the most environment friendly & green country in the

world by none other than National Geographic. The Annual SurveyGreendex carried out by Nat Geo and Globescan shows that out of 17

main economies surveyed India does least to harm the our environment.

Greendex has derived these results based on peoples transportation

patterns, household energy and resource use, consumption of food and

everyday consumer goods, and what consumers do to minimize the impact

these activities have on the environment.

17
http://environment.nationalgeographic.com/environment/greendex/http://environment.nationalgeographic.com/environment/greendex/http://www.globescan.com/http://environment.nationalgeographic.com/environment/greendex/http://www.globescan.com/


18/23

Key Indian Highlights on Greendex Report

18


19/23

India has ranked 1st on Greendex for2nd time in a row and have also

showed greatest increase in the score from last year (3.2 points).

Indians are less likely to have home heating and hot running water (42

percent for both), and many who do commonly use on-demandelectrical water heaters (44 percent versus the 17-country average

of 13 percent).

Ranks top on transportation Sub Index as Indians tend not to have

large vehicles who typically are gas guzzlers (49 percent neither own,

rent, nor lease cars or trucks); furthermore, those who do seldom drive

alone (13 percentversus the average of 38 percentdown from 19percent in 2009).

Indians prefer motorcycles or scooters (67 percent) or use public

transportation (81 percent do so at least once a month). After the

Chinese, Indians are the 2nd most likely to choose to live close to

their destinations (59%), and they are among the most likely to prefer

to walk or cycle to their usual destinations (63 %).

35% Indians eat self grown food several times a week or daily, more

than any other country in the world. Also, Consumers in India rarely

consume meat, including chicken (24%), fish & seafood (21%) and

beef (13%).

When it comes Goods Sub-index, India again ranks at top as Indian

consumers prefer to buy used rather than new (42%) and to repair

rather than to replace (68%). They also increasingly buy products that

are environmentally friendly (60%).

Indians are also becoming increasingly concerned about

environmental problems in general (76%). More Indians feel guilty

19
http://trak.in/tags/business/2008/05/08/indians-brazilians-most-environment-friendly/http://trak.in/tags/business/2008/05/08/indians-brazilians-most-environment-friendly/


20/23

about their impact on the environment (58%). In particular, they are

more likely than most to worry about climate change or global

warming (83%), fresh water shortage (85%), and loss of species and

habitat (70%)

20


21/23

8. SOME GREEN MARKETING PRINT ADS

21


22/23

9. CONCLUSION

Now a days many consumers are environment concern. And many of the

Firms are conscious about environment. By this consciousness firms started

to produce Eco Friendly product for the protection of the environment. Thegrowing awareness among the consumers all over the world regarding

protection of the environment in which they live, People do want to a clean

earth for future generation. So people around the world also started to use

Eco Friendly products to save the Earth. With the help ofGreen Marketing

Companies like Hero Honda Limited, Idea Cellular Limited and many more

deals with Eco Friendly product as well as they launched Environment

Protection Campaigns like Say no to plastics, less use of papers, Go Green

concepts. Green Marketing and Eco Friendly products are moving forwardtowards success among the Consumers. Even I Suggest people to GO

GREEN

22


23/23

10. BIBLOGRAPHY

1.www.google.com

2. www.greenindia.com3. www.orchidhotel.com

4. Idea Gallery (Panvel)

5. Hero Honda Showroom (New Panvel)

6. IndusInd Bank (New Panvel)

7.TNPL

23

Green Marketing Important

Documents

Transcript of Green Marketing Important