Project Green Market Ting

8/2/2019 Project Green Market Ting

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RESEARCH PROPOSAL

1.0 Proposed Title: Green marketing on corporate strategic A comparative study of two

Indian companies

2.0 Background of the problem:

Green marketing is relatively new focus in business endeavors and came into prominence only

in the late eighties (Ottman 1998). Since the mid-nineties, environmental legislation has

increased, leading to a higher level of awareness of environmental issues in the business

domain and many corporations being required to consider the issues in their strategic planning

in order to meet stricter environmental standards. The past decade has shown that harnessing

consumer power to effect stricter environmental change is far easier said than done. The so-

called "green-consumer" movement in the United States has struggled to keep afloat by not

quite being able to reach critical mass not being at the very fore-front of shopper's minds.

Ken Peattie (1999) defined environmental marketing in terms of customer satisfaction in a

sustainable fashion which refers as the holistic management process responsible for

identifying, anticipating, and satisfying the requirements of the consumers and society, in aprofitable and sustainable way. However, the definition provided by the Charter (1992) adds a

strategic dimension to the concept other than customer satisfaction and stressed the

importance of a long term perspective and the role played by stakeholders. According to

Charter (1992), green marketing is defined as greener marketing is a holistic and responsible

strategic management process that identified, anticipates, satisfies and fulfil stakeholder needs,

for reasonable reward, that does not adversely affect human or natural environmental well

being.

In India, there is an increased awareness and interest on green marketing strategies asevident from the sharp increase in number of ISO1400 companies. The first indication of

consumer interest in green products came through the study conducted by Peattie (1999) which

indicated that in India for environmental protection almost 56 percent of the people are willing to

pay. In another survey conducted by Gallup, revealed that Indians want their country to address


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issues related to environmental. Traditionally, the market strategy of the company was to

increase the profit (Peattie 1999, p.57) but early nineties there is a change in the firms strategy

where the company must consider the effect of its action on all stakeholders including animals

and nature (Klonoski, 1991). Green-marketing, as a concept is pretty nascent, and as a

consequence, it has not been extensively explored/researched to the extent it should have,

particularly in India. Thus, this made the researcher to study the marketing strategies adopted

by the Indian companies

2.3. Aim: To examine the green marketing strategies adopted by companies

2.3.1. Objectives:

1. To understand how the green marketing strategies are developed by the two companies

2. To analyze the benefits of having green marketing strategies

2.3.2. Research questions

In order to fulfill the objectives, the study had following research questions

1. How two companies segment their market based on the consumer tendencies towards

green marketing?

2. How green market strategy is chosen for the companies?3. How marketing mix is influenced by the choice of green marketing strategy?

4. What are the advantages that companies obtain by the adoptions of green marketing

strategy?

In order to fulfill the research questions I have chosen two leading companies engaged in India,

both of which are reputed brand names in consumer goods and initiated the green marketing

concept in relatively same time frame.

3.0 Literature Review

The review of literature provided scientific theories and cites various literatures that was done

elsewhere in related green marketing strategies adopted by the companies which will in turn

help to provide foundation for analysis and discussion


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According to Ginsberg & Bloom (2004), the first step is to gain rich understanding on consumer

preferences towards green marketing i.e., whether the development of product that has green

attributes is better selling point to target consumers. Various studies have showed that to know

the target green market segment better, there is need for appropriate individual consumer

tendencies towards green marketing (Fuller, 1999, p330-331; Coddington, 1993, p.83). There is

no one single strategy that will work for all companies, it all depends on the own individual

objectives, target market, resources etc (Polonsky & Rosenberger, 2001).

The development of green marketing strategy to a company is complex. Studies have showed

that green marketing as a creating opportunity to innovate in ways that make a difference and

at the same time achieve business success (Grant,2007 p.10). Various authors has proposed

different models to develop strategy that includes the green marketing grid (Grant, 2007, p.10,

59) and the green marketing strategy matrix (Ginsbgerg & Bloom, 2004). Further, holistic and

integrated approach is necessary to implement green marketing strategies in all areas of the

marketing mix was emphasized by Polonsky & Rosenberger (2001).

Companies can able translate those concerns into action through marketing mix only if they are

truly committed to environmental concerns. There is an argument exists in implementation ofstrategy that are considered to be environmentally superior that creates competitive advantage

by stimulating innovation and tapping into concerns of consumer (Porter & Van der Linde, 1995;

Elkington, 1994). According to Fuller (1999, p.39), companies that do not implement innovative

green marketing strategy will struggle to tough emerging global market and moreover viewed as

uncompetitive and unresponsive. Study by Jacquelyn Ottman (1993) reveled that practicing

green marketing helps the companies to increase their market share and also gain more profit.

In addition, the author further states that the companies will offer some personal rewards

indirectly to people like integration of their own value into work place. Further several benefitsare offered due to implementation of green marketing strategies such as reduction of trade

barriers, few health and safety impacts; improve community and employee relation,

environmental improvement and accurate information (Kuhre, WL, 1995)


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In order to understand the repose of UK and German companies to environmentalism, a study

was conducted by Pujari and Wright (1996). The results showed that the importance of

organization structure in implementing market strategy and companies also vary by their

environmentally conscious product design dimensions and this made the authors from that

study to recommend the importance of supportive structure in place for effective

implementation. Further Walley and Whitehead (1994) argued that greening strategy is difficult

to do in practice. In order to be optimizing the economic return on their investment, companies

must develop their strategies that transform environmental investment into sources of

competitive advantage (Orsato, 2006). Given that there is urgent need for development of

marketing strategies that can earn sustainable advantage in terms of profit to the firms and

minimal impact on the environment. Thus, the study will attempt to provide an overall

understanding of the marketing strategies both in terms of consumer and organization

perspectives

4.0 Methodology

4.1. Research approach:

The researcher adopted case study approach for the present thesis in order to gain deeper

insights into events such as how green marketing strategies can be developed and reasons for

companies to adopt green marketing. When focusing on one or few research units with purpose

of achieving in depth information, the preferable approach is case study (Denscombe, 2000,

p43). As stated by Yin, when researcher has little control over events and when the focus in on

a current phenomenon in a real life context and further to answering how or why questions,

case study is the preferred approach (referred by Ghuari & Grinhaung 2005, p115).

The researcher decided to conduct a comparative study of two Indian companies due todescriptive nature of the thesis. Hence, the research approach adopted was qualitative one. As

stated by Holme and Solvang (1997), a qualitative method makes the researcher to understand

and interpret the qualitative nature of the data that stands in the centre. The first step of the

qualitative portion of the research will involve an in-depth study and review of the extant


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literature and techniques applicable to the specific research problem, including

operationalisation of environmental issues within the marketing mix and strategies developed by

the companies. The objective is to fully understand how the companies develop marketing

strategies to sustain in competitive market.

4.2. Case selection

Based on the observations as made in the earlier studies as mentioned in our literary review we

selected two leading companies engaged in consumer products marketing in India. The

researcher used convenient sampling method to select two companies engaged inconsumer

products in India and who have green marketing strategy already in place. These are i) Blue

Star and ii) Philips India

Blue Star is the largest single source of air-conditioning equipments in India. They completely

phased out their CFC using Centrifugal chillers They are using HCFC instead which have to be

much less ODP (Ozone Depletion Potential)

Philips India has been using a corporate wide eco-vision program since 1998.The program

require each business group under its purview should design or redesign one flagship product

every year. A few energy efficient products that has been designed as a result are KALA and

DECT telephones, a 32 inch TV set, and a video cassette recorder among them

4.3. Sample size

Although Walker (1985) suggested 20-40 in-depth interview are required for the qualitative

research. Due to limitation of time frame allocated for the present study and the cost involved,

the research will conduct interview from 10 managers / executive managers and 5 from each

companies. The size of the sample for the qualitative study was determined when saturation

was reached for theory and information, and anything new being added.

4.4. Data collection

Primary data:

In order to gather the necessary data and also provide profound insight into the topic of

strategic green marketing, the researcher considered interviews to be the most suitable way


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(Denscombe, 2000, p.132). The interview method was chosen for the present study reason

being permit face to face contact with respondents (Bryman & Bell 2007); to obtain new

insights, yield richest data, explore the topic in depth, flexibility to the interviewer in

administering interview to particular individual, help in clarification of questions and cognitive

aspects of the response. However there are disadvantages with reference to the interview

method like selective perceptions, recall error, inconsistencies due to flexibility, information

collected would be too large to construct the theme, transcription would be difficult (Yin

2003;Crescwell 2007;Newman 2003)

To collect data from the interviewees author proposed to use semi-structured interview guide as

the very fact that interview questions were expected to vary due to the act that the cases had

very different strategies. According to Walshman (1995) interviews allow the best access to the

interpretations that the participants have regarding the actions and events, which have or are

taking place and the views and aspirations of themselves and other participants. In qualitative

method there is an added advantage, as it allows the researcher to go back and evaluate the

interpretations provided by the interviewee or the respondent in some detail where other

methods in general do not allow. Interviewee will be conducted among managers of the

companies who are mere responsible for the development of green marketing strategies.

Interviews were noted down by the researcher by taking extensive notes and alsosimultaneously recorded.

Tentative questions (Semi-structured)

1. What is your core business? can you explain it briefly?

2. When you have started to implement environmental standards to your business?

3. How your existing products different from green products?

4. Who are your customers?

Secondary data collection

Secondary data was collected from different website, annual reports, books, journals andarticles, websites, newspapers, magazines, case studies. The aim of this data collection is to

find out the related data regarding strategies adopted by the Trident solutions. The data thus

obtained will be an essential part of the dissertation topic.


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4.5. Pilot study:

A pilot study was conducted among interviewees to make sure that the terminologies used are

correct and appropriate. Interview will be conducted in person using face to face method, as

this will help the interviewer to ask as many questions which were not in t he interview guide

depending on the respondents answers (Denscombe, 2000, p.135).

4.6. Data analysis

The data was analyzed using content analysis. After the interview completion, data reduction

was undertaken in order to identify the patterns and themes in order to gain insight and

understanding. Data was coded, examined, compared and categorized based on the research

questions (Ghauri & Gronhaug, pp. 2005). If further data are required or new question arose,

then further data collection will be undertaken. Throughout the analyzing process, comparison

was done to find differences, similarities and meaning (Ibid, p.209).

References

Ackerstein, Daniel S. and Lemon, Katherine A. (1999), Greening the Brand: Environmental

Marketing Strategies and the American Consumer, in Charter, M. and

Bryman, E. & Bell, A (2007), Business Research methods. Oxford University Press Inc., New

York.

Creswell, JW (2003) Research Design: Qualitative, Quantitative and Mixed Method

Approaches. California: Sage Publications.

Ottman, Jacquelyn (1998), Green Marketing: Opportunity for Innovation, 2nd Ed., Lincolnwood,

IL: NTC Business Books.

Peattie, Ken (1999), Trappings versus substance in the greening of marketing planning,

Journal of Strategic Marketing, 7, 131-148.


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Polonsky, M.J., eds., Greener Marketing: A Global Perspective on Greening Marketing Practice,

Sheffield, U.K.: Greenleaf Publishing.

Klonski RJ (1991). Foudnational considertional in the corporate social resposnility debate.

Business Horizons, 34 (4), 9-18

Ginsburg JM & Bloom, O. (2004). Choosing the right marketing strategy. MIT sloan

Management Review, 46(1), 79-84

Fuller, Donald A. (1999), Sustainable Marketing: Managerial-Ecological Issues, London, Sage

Publications

Coddington, W.(1993). Envroeonmtal marketing:psoitve strategies for reaching the green

consumer. New York, NY:MCGraw-Hill, Inc

Grant, J. (2007) The green marketing manifesto. Cornwall:TJ International Ltd.

Pujari, Devashish and Wright, Gillian (1999), Integrating Environmental Issues into

Product Development: Understanding the Dimensions of Perceived Driving Forces and

Stakeholders, Journal of Euromarketing, 7,4,43-63

Kuhre WL. (1995). ISO 14020s Environmental LabellingMarketing. Prentice-Hall: Englewood

Cliffs, NJ.

Walley, N. & Whitehead, B. (1994). Its not easy being green. Harvard Business Review, 72 (3),

46-51

Orsato, R. (2006). Competive environemtal strategies: When does it pay to be green?

Californina Management Review, 48(2), 127-143


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Ghuari, O., Gronhaug, K. (2005). Research methods in Business studies: A practical guide Thist

Edition. Harlow: Financial Times/Prentice Hall.

Dean, T, Brown, RL & Bamford, CE 1998, Differences in Large and Small Firm Responses to

Environmental Context: Strategic Implications from a Comparative Analysis of Business

Formations, Strategic Management Journal, vol.19, no. 8, pp. 709723.

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