Journal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319-5614
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Green Marketing Strategies for Sustainable Business
Growth
Dr. S.M. Das, Associate Professor, DRIEMS, Cuttack, Odisha, India
Mr. B.M. Dash, Assistant Professor, DRIEMS, Cuttack, Odisha, India
Mr. P.C. Padhy, Assistant Professor, DRIEMS, Cuttack, Odisha, India
ABSTRACT
Environment friendly, so called green marketing has become a discussed subject and companies are constantly
trying to find the best ways to reach the customers with their green message. Customers are becoming more
demanding and they have started to pay more attention to the environment. What is important with brands is
how customers perceive them, what the image of the brand is? The aim of this study is to find out how strategic
issues in green marketing are addressed by Companies. Green marketing incorporates a variety of activities,
including modifications to products, changes to the production and distribution processes, packaging, and
modifications to marketing communications. In this paper, the authors have tried to explain the need and
importance of Green Marketing and strategies for Green Marketing. They have also tried to explain some
strategies to avoid Green Marketing Myopia. At last some Green Marketing practices have been shared to
convince the readers that, Green Marketing is not only possible but also it is sustainable as well as profitable
from various quarters.
Key Words: Green Marketing, green message, organic, Environmentally Friendly, Myopia
Introduction
Green marketing is the marketing of products that
are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of
activities, including product modification, changes
to the production process, packaging changes, as
well as modifying advertising. Yet defining green
marketing is not a simple task where several
meanings intersect and contradict each other; an
example of this will be the existence of varying
social, environmental and retail definitions attached
to this term. Other similar terms used are
Environmental Marketing and Ecological
Marketing. So, in this scenario of global concern,
corporate houses have taken green marketing as a
visible part of their strategic planning to promote
products by employing environmental claims either
about their attributes or about their systems,
policies and processes of the firm that manufacture
or sell them. Clearly Green marketing is a part and
parcel of overall corporate strategy; along with
manipulating the traditional marketing mix (4 Ps),
it requires an understanding of public policy
process. So, we can say green marketing covers a
broad range of activities.
"Green or Environmental Marketing consists of all
activities designed to generate and facilitate any
exchanges intended to satisfy human needs or
wants, such that the satisfaction of these needs and
wants occurred with minimal detrimental impact on
the natural environment." (Mr. J Polonkey)
Green marketing involves developing and
promoting products and services that satisfy
customers wants and desires for Quality,
Performance, Affordable Pricing and Convenience
without having a detrimental input on the
environment.
Evolution of Green Marketing
Green Marketing concept has been evolved over a
period of time. According to Peattie (2001), the
evolution of green marketing has three phases.
First phase: "Ecological" green
marketing and during this period all marketing
activities were concerned to address environment
problems and provide remedies for environmental
problems.
Second phase: "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: "Sustainable" green
marketing. It came into prominence in the late
1990s and early 2000.
Why Green Marketing?
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Resources are Limited and Human Wants are
Unlimited, it is important for the marketers to
utilize the resources efficiently without any
wastage as well as to achieve the organization's
objective. There is growing interest among the
consumers all over the world regarding protection
of environment. Worldwide evidence indicates
people are concerned about the environment and
are changing their behavior. As a result of this,
green marketing has emerged which speaks for
growing market for sustainable and socially
responsible products and services. Since early
1990s, a major concern on ecological impact of
industrial house on environment has been surfaced
on marketplace. Not only the relation between
human organization and natural environment being
redefined, but the implication thereof are being
interpreted, because of these new perceptions are
being formed or revaluated on issues like
environmental friendly products, recycle- ability,
waste reduction, the cost associated with pollution
and price value relationship of environmentalism.
Pressure from various stakeholders, government,
environmentalist, NGOs, consumers in placed on
business, which in turn keeps them under constant
and relentless watch in their daily operations. A
direct result can be seen in developed and
developing countries where government become
more strict in imposing regulations to protect
environment; at the same time the customers of
these countries are being more and more outspoken
regarding their needs for environmentally friendly
products, even though questions remain on their
willingness to pay a higher premium for such
products.
So, in this era where consumers determine the fate
of a company, green marketing imparts a proactive
strategy for these companies to cater the market by
imparting nature friendly products/ services which
otherwise reduce or minimize any detrimental
impact on environment.
Reasons for Adoption of Green Marketing
Opportunities or Competitive
Advantage
Corporate Social Responsibilities
(CSR)
Government Pressure
Competitive Pressure
Cost or Profit Issues
Increased Customer
Consciousness
Deterioration of Climatic
Conditions
Organisations those develop new and improved
products and services with environment inputs in
mind give themselves access to new markets,
increase their profit sustainability, and enjoy a
competitive advantage over the companies which
are not concerned for the environment.
Green Marketing MIX (Innovative
Strategy for Corporate)
Every Organisation has its own favorite marketing
mix. Some have 4 Ps and some have 7 Ps of
Marketing Mix. The 4 Ps of green marketing are
that of a conventional marketing but the challenge
before marketers is to use 4 Ps in an innovative
manner.
Product
The ecological objectives in planning products are
to reduce resource consumption and pollution and
to increase conservation of scarce resources (Keller
man, 1978). 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. Green chemistry forms the
growing focus of product development. The
marketer's role in product management includes
providing product designers with market-driven
trends and customer requests for green product
attributes such as energy saving, organic, green
chemicals, local sourcing, etc., For example, 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.
Price
Price is a critical and important factor of green
marketing mix. Most consumers will only be
prepared to pay additional value if there is a
perception of extra product value. This value may
be improved performance, function, design, visual
appeal, or taste. Green marketing should take all
these facts into consideration while charging a
premium 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 ensures efficient productivity.
Value can be added to it by changing its
appearance, functionality and through
customization, etc. Wal Mart unveiled its first
recyclable cloth shopping bag. IKEA started
charging consumers when they opted for plastic
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bags and encouraged people to shop using its "Big
Blue Bag".
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. British petroleum (BP) displays gas
station which its sunflower motif and boasts of
putting money into solar power. Indian Tobacco
Company 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. The center
piece of this portfolio is the IBM SurePOS 700, a
point-of-sale system that, according to IBM,
reduces power consumption by 36% or more. We
even see the names of retail outlets like "Reliance
Fresh", Fresh[at]Namdhari Fresh and Desi, which
while selling fresh vegetables and fruits, transmit
an innate communication of green marketing.
Green marketer can attract customers on the basis
of performance, money savings, health and
convenience, or just plain environmental
friendliness, so as to target a wide range of green
consumers. 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 saving
compact fluorescent lamps, the battery powered
Reva car, etc.
Place
The choice of where and when to make a product
available will have significant impact on the
customers. Very few customers will go out of their
way to buy green products. 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.
Green Marketing and Customer
Satisfaction:
Three ways to keep the customers satisfied as
before or even more while adopting Green
Marketing Strategies. In other words lets have
look at the strategies for avoiding Green
Marketing Myopia.
1. Consumer value positioning
To design environmental friendly products
to perform.
To promote and deliver the consumer
desired value of environmental products and target
relevant consumer market segments (such as
market health benefits among health- conscious
consumers).
To broaden mainstream appeal by
bundling (or adding) consumer desired value into
environmental products (such as fixed pricing for
subscribers of renewable energy).
2. Calibration of consumer Knowledge
Educating consumers with marketing
messages that connect environmental products
attributes with desired consumers value (e.g.
pesticide free product is healthier, energy-
efficiency saves money, or solar power is
convenient).
To frame environmental product attributes
as solutions for consumer needs (e.g.
rechargeable batteries offer longer performance).
Creating educational internet sites about
environmental products desired consumer value
(e.g. Tide coldwaters interactive website allows
visitors to calculate their likely annual money
savings based on their laundry habits, utility source
[gas or electricity], and zip code location).
3. Credibility of product claims
Employing environmental product and
consumer benefit claims that are specific,
meaningful, unpretentious, and qualified (i.e.
compared with comparable alternatives or likely
usage scenarios).
To procure product endorsements or eco-
certifications from trustworthy third parties, and
educate consumers about the meaning behind those
endorsements and eco-certifications.
Encouraging consumer evangelism via
consumers social and internet communication
networks with compelling, interesting, and/or
entertaining information about environmental
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products (e.g. Tides coldwater challenge website
includes a map of the United States so visitors
could track and watch their personal influence
spread when their friends request a free sample).
Consumer Environmental Segments
True blue greens (30%): True Blues are
the environmental leaders and activists. They are
characterized by a strong knowledge of
environmental issues. They are more likely than
the average consumer to engage in
environmentally conscious behavior, such as
recycling.
Greenback Greens (10%): Greenbacks
do not have 5he time or inclination to behave
entirely green. However, they are more likely to
purchase green.
Sprouts (26%): Sprouts are
environmental fence sitters. They feel some
environmental issues are worth supporting, but not
others. They will purchase an environmentally
conscious product, but only if it meets their needs.
Grousers (15%): Grousers believe that
their individual behavior cannot improve
environmental conditions. They are generally
uninvolved and disinterested in environmental
issues.
Apathetics (18%): Apathetics are not
concerned enough about the environment to do
anything about it. They also believe that
environmental indifference is mainstream.
Challenges Ahead
Green products require renewable and
recyclable material, which is costly.
Requires a technology, which requires
huge investment in R & D.
Water treatment technology, which is too
costly.
Majority of the people are not aware of
green products and their uses.
Majority of the consumers are not willing
to pay a premium for green products.
Some Cases of Successful Green Marketing
strategies:
L&T:
The cabins of all the executives are with
sensor electricity facility i.e. if someone walks out
of the corridor of the cabin then the lights are off
automatically and vice versa.
It has already discontinued the use of
ozone depleting substances.
The company saves over more than
350,000 liters of water a day through zero
discharge approach which basically involves
water treatment and recycling for no potable
purposes like gardening, horticulture etc.
New product development is entirely
focused on innovation from an environment
perspective.
It has adapted the top-down as well as
bottom- up approach where an employee even in a
lower position can suggest for environment
protection.
OMFED:
OMFED (Orissa State Cooperative Milk
Producers Federation) launched packets of milk
with a message on energy conservation.
Since, the milk producers cooperative
body sells about 8lakh packets per day, the
initiative will convey a great message to the people
including the children.
CNG IN DELHI:
The need to be eco friendly is across the
entire spectrum of activities. This need is greatly
influenced by consumer forums and judiciary. To
take an example when Honble Supreme Court of
India ordered the Delhi Government to examine
ways and means to reduce pollution in Delhi,
Honble Court asked the Government to introduce
clean fuel like CNG in public transport system.
This put pressure on petroleum companies for
launching clean fuels with low sulphur content and
leads free petrol. Also the only CNG supply
company INDRAPRASTHA GAS LTD had to
increase its supply. The vehicles had to be made
with required alterations. This led to Delhi
Transport Corporation becoming the largest CNG
powered transport system in the country.
This growing concern for the environment
leads to the development in oil and gas exploration,
refining and marketing. It also spurred
development in the automobile sector which
manufactured vehicles that could run on CNG
fuels. Also the vehicles have to confirm to
pollution control norms as laid down by the
government like Bharat III, Ero-II.
Surf Excel
Some kids in Mumbais Bainganwadi
slums are grateful to Surf Excel, the Rs 485Cr
brand which introduces a feel good marketing
campaign-The Surf Excel 10/10 drive.
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It is found that, the Surf Excel buyers in
the four cities of Mumbai, Delhi, Bangalore and
Kolkata SMSing an amount to HLL (now HUL).
The company in turn donates that amount to an
NGO that was involved in educating under
privileged children.
Ponds Cold Cream
The Rs.355Cr brand Ponds of HLL, tied
up with United Nations Development fund for
women. For every flap of ponds cold cream mailed
by the consumers, the company would contribute
Rs 2 to the fund to fight domestic violence. Even
though the proportion ad spends from its Rs
1000Cr advertising and promotion budget have
been minimal, HLL says most of its brands will
look for long term strategic linkage with social
causes.
ITC
Here another difference to note, Corporate
Social Responsibility (CSR) is being used to build
individual brands rather than the corporate brand.
A case in point is the Rs 16,000 Cr ITC, that ran
their CSR campaigns, about putting India first for
its e-choupal initiative two years back. Cut to the
present the company has linked the Sunfeast
brand to its social forestry campaign, where the
company chips in with 25paise for every pack of
Sun feast biscuit and Pasta sold and consumers to
buy the Atta brand, Aashirvaad, contributed
towards ITCs rain harvesting campaign.
Divisional Chief Executive of ITC Mr.Ravi
Naware says consumers like to connect with the
brand, if the brand is seen socially responsible
brand then consumer get an emotional connect that
far beyond just usage of the brand and consuming
it. It is this higher level of connect that we are
attempting to create through this campaign.
TATA Salt
Very recently Tata has launched a
campaign through T.V. advertising that if one will
purchase Tata salt, a significant percent of profit
per pack would be contributed towards the
education of unprivileged children of the slams.
McDonald
McDonald's restaurant's napkins, bags are
made of recycled paper.
COCACOLA
Coca-Cola pumped syrup directly from
tank instead of plastic which saved 68 million
pound/year.
NTPC
Badarpur Thermal Power Station of NTPC
in Delhi is devising ways to utilize coal-ash that
has been a major source of air and water pollution.
Indian Oil Corporation
Barauni refinery of IOC has taken steps
for restricting air and water pollutants.
PHILIPS
PHILIPS developed Compact Fluorescent
Light (CFL) that consume less electricity and
radiate less heat as well.
Maruti
Maruti has reduced its electricity
consumption per vehicle by 20 per cent in the last 9
years, water consumption by 46 per cent, and land
fill waste by 67 per cent.
Conclusion
Green marketing should not neglect the economic
aspect of marketing. Marketers need to understand
the implications of green marketing. If marketers
think customers are not concerned about
environmental issues or will not pay a premium for
products that are more eco-responsible, then they
should think again. Marketers must find an
opportunity to enhance their products. Although,
Green Marketing Myopia is another challenge
before the marketers, it is the fundamental
responsibility of the Marketers to innovate and
adopt new marketing strategies those would
safeguard our eco system as well as satisfy the
customers.
References
Marketing Management, Keller, Koshy,
J ha, 13
th
Edition, Kotler, Pearson Prentice Hall
Publication.
Marketing Management, Analysis, Kotler
Philip, 9
th
Edition, Prentice Hall India Publication.
The Business Standard, Dt. 30.11.09,
CSR makes good business case.
The Business Standard, Dt. 16.12.09,
Omfed packets to harp on energy conservation
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Volume 1, No.1, October 2012
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The Business Standard, Dt.08.12.09,
Small Car maker, but big energy saver
The Business Standard, Dt.07.12.09,
L&T sensors climate change
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