INTRODUCTION:
My
interest is the future because I am going to spend the rest of my life there.
Charles F. Kettering
Every social and global
issue is a business opportunity just waiting for the right kind of inventive
entrepreneurship, the right kind of investment, the right kind of collective
action.
Peter
Drucker
In
present scenario, environment conservation becomes big challenges all over the
world. The production processes of industries and consumption pattern of
consumers influence the ecological balance of the earth. Over the last few decades,
we are facing a major environmental problem in the all over the world. The
majority of consumers realized that their consumption pattern had a direct
impact on the environment and now they had started to take action for the conservation
of the environment. Now consumers have changed their consumption behaviour and they
prefer to buy those products that are environmentally healthy products. The
shift in consumer purchase behaviour towards eco-friendly products opened a new
world of opportunities for businesses. At this time, every business firm
started to apply sustainability at every level of organization activities. One
of the business areas, where environmental issues are widely discussed and a
lot of activities are taken, is Marketing. Nowadays, new Concepts such as Green
Marketing, Environmental Marketing, Ecological Marketing, and Sustainable
Marketing are taking place in today business shelf.
Green marketing has evolved as a new phenomenon,
during late 1980 to early 1990. According to American Marketing Association, Green
marketing is the marketing of products that are presumed to be environmentally
safe. Green marketing refers to the process of selling the products and services
based on their environmental benefits. Such a product or service may be
environmentally friendly or produced and packaged in an environmentally
friendly way. But it is not solely to marketing or selling of products that
have environment characteristics. Firms have changed a whole range of
activities from procuring raw material, changes in the manufacturing process,
modification in product and its composition, changes in its packaging and
finally its advertising and marketing. Hence, green marketing refers to
holistic marketing concept wherein the production, marketing, consumption, and
disposal of products and services happen in a such a way that it has a less detrimental
impact on the environment. So Green marketing involves the production of all
those products and services which satisfy the customers wants and needs for
good quality, high Performance at Affordable Pricing without having a
detrimental effect on the environment.
Evolution
of Green Marketing:
The
origins of the environmental movement can be traced back to late 80’s and early
90’s. American Marketing Association conducted the first workshop on Ecological
Marketing in Texas U.S.A. in 1975. The first time Green marketing term was
discussed in that workshop. Green marketing was given importance after the
proceeding of the workshop. The proceedings of the workshop published in the form
of a book entitled ecological marketing. The first wave of green marketing
occurred in the 1980s and divided into three phases.
According
to Peattie (2001), the evolution of green marketing has three phases.
|
PHASE 1
|
Ecological green marketing
|
|
PHASE 2
|
Environmental green
marketing
|
|
PHASE 3
|
Sustainable green marketing
|
The Evolution of Green
Marketing:
First phase:
It
was termed as "Ecological" green marketing. In this phase main
focused was given to identifying the activities that have a negative impact on
the environment and all marketing activities were performed to help the
environmental problems and provide remedies for environmental troubles. So the first
phase focuses on Frontlines industries and also changes their way of working.
This phased emphasis on the increasing amount of environmental regulation
within a legal environment.
Second
phase:
It
was termed as "Environmental" green marketing and the focus shifted
on clean technology. The focused given on designing of innovative products or
new production system, which reduce pollution and waste issues. So during this
phase firms mainly focused on the development of products that are good for the
environment. The new concepts green consumers are evolving and resulted in
recycling products and packaged products. During this phase socio-environmental
performance becomes the basis of competitive advantage.
Third phase:
It
was known as "Sustainable"
green marketing. It came to prominence in the late 1990s and early 2000
concerned with developing good quality products which can meet consumers need
by focusing on the quality, performance, pricing, and convenience in an environment-friendly
way. It’s just not focused on the production of good quality products, but also
include sustainability. Sustainability means to fulfill needs of the present generation
without compromising the needs of the future generation. New types of the term
used like futurity equality etc.
Green
Marketing Mix:
By
knowing the target consumer, it will help marketers to know whether granary or
greenness is an appropriate selling attribute and how it should be applied to
the marketing mix. The green marketing mix is important. Green marketing mix
strategies include developing green based products, green promotion, green
logistics, green pricing and green consumers.
Green
Product:
The
products that are produced by green
technology and has no harmful impact on the environment. These are environment-friendly
products. This product is made from recycled, reused and biodegradable material
or non-toxic. These products have natural ingredients and not only, save water,
energy, and money, but also reduce harmful impact on the environment. The major
attributes of green products are saving energy, organic products. Nike is the
first among the shoe companies to market itself as green. It sold its Air
Jordan shoes as environment-friendly.
Green
Pricing:
Green
pricing takes into consideration the people, planet, profit in such a way that
it ensure the wellness of employees and the organization. Consumers can pay
high if the products have additional value. It also increases the productivity
of firms. The value can be enhanced by changing its functions, appearance,
design, performance and customization. The retail shops like Big Bazaar, Lifestyle,
Reliance trends started charging consumers when they opted for plastic bags and
encouraged people to shop using its Eco-friendly bag.
Green
Place:
It
focused on managing logistics locally by cutting down the transportation
emission thereby in aiming at reducing carbon footprint. Instead of importing
goods we can produce locally. It will reduce shipping cost as well as mitigate
pollution generated by different transport modes.
Green
Promotion:
Green promotion helps to aware consumers towards the environmental
hazard. it configuring promotion tool by keeping in mind people planet etc.
green promotion is a tool through firms can educate consumers towards environment
issues and empowers consumers with a solution that how green products helps
consumers improve health and protect the environment for future generation. It
will also help to make a firm image as environmentally responsible firms. 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.
Analysis
of Traditional Marketing Mix And Green Marketing Mix:
The
traditional sub-mixes of the marketing mix like 4P’s i.e. Product, Price, Promotion,
and Place need to be analyzed with environmental contents.
REVIEW
OF LITERATURE:
A
Muthukumaran (2015) Conducted research on
Green marketing strategies in India. Under this paper, it concluded that
green marketing was a vital component of marketing. This phenomenon began due
to increasing the pressure on firms to produce a green product and showed eco-friendly
behavior. Green marketing covered the overall brand of marketing activities
undertaken by companies in such a manner that they promoted products which had
a positive impact on the environment or alternatively reduce the negative
impact on the environment. The growth in green marketing over the years had
been promoted by the adoption of product packaging and presenting to the
public. This paper examined the present trends of green marketing in India,
described the reason why companies were adopting it, the future of green
marketing and concluded that green marketing was something that will
continuously grow both in practice and demand.
Sivakami
R. And Kumar S. (2015) did research on Consumer
behavior toward green products. The study revealed that a large
number of firms used green marketing and it had an impact on consumer buying behavior
towards green products. The finding revealed that consumers were aware of the green
product and irrespective of their age, they preferred to buy green products
because these products were eco-friendly. It also showed that most food items
were purchased on the basis of green followed by health products.
Sharma
M. and Singh M (2015) concluded that the
green marketing becomes vital components of marketing strategies because people
around the world were becoming more conscious about environment issues.
Consumers’ attention towards environment effects purchased behavior. So to cope
with consumers, demands firms focused on green marketing and it developed a new
type of green business and green consumers.
Saleena
T.A. (2014) conducted the research on Banking
with green marketing perspectives. In the present scenario, there was a need
for banks to adopt green strategies into their operations, buildings,
investments and financing strategies. Green banking means combining operational
improvements, technology and changing client habits in the banking business.
This study had made an attempt to highlight the strategic aspects of Green
Banking, opportunities andchallenges faced by the green bank in India. The
paper was to study the major Green Banking initiatives taken at the national and
the international level. The finding of the study showed that SBI had taken
more green banking initiatives as compared to ICICI Bank.
Singh
G. (2013) concluded that the green
marketing had the potential to not only provide huge business opportunities
across the globe, but also countries had utilized such marketing activity to generate
peace, friendship, and inclusive growth. However, there should be a global
consensus on the implementation of green initiatives and environmental
standards and norms so that the developed/industrialized nations do not
seriously undermine the development agenda of the fastest growing developing
countries/emerging market economies. In the absence of such sensitivity to the
development concerns of the industrializing countries, there could be a
backlash and a setback to the entire concept of green marketing.
NEED
OF STUDY:
The
concern for an environment has increased substantially. Going green has become a
significant strategic orientation to participate in sustainable development and
creating a customer perceived values. Environmental regulation has changed competitive
roles of firms. In present scenario, a strong integration between green based marketing
and commitment to conserves the resources showed by different business firms.
Every business firm, claim they are environmentally concerned and they
practicing green business strategies. There are very few studies that carried
out in India to study initiative taken by different firms. Most of these types
of studies carried out in foreign countries. Under this study, we will study
initiative taken by different industries to see their concern for the environment.
The purpose of paper to elucidate the role of the firm’s environmental
commitment in influencing green marketing to create customer perceived value.
OBJECTIVES:
1.
To study the reasons why green
marketing adoption is important to business firms.
2.
Discuss the initiative taken by
the business firm towards Green marketing in India.
3.
To explore the challenges in
Green marketing faced by business firms.
METHODOLOGY:
The
study was based upon secondary data through literature review and analysis. The
literature reviewed includes marketing journals, paper of research scholars and
other research material that are available on the internet.
Analysis:
1.Reasons
For Adopting Green Marketing
By
reviewing the literature, there are following important reasons for firms using
green marketing.
Opportunity:
In
India, a large portion of consumers prefers eco-friendly products while purchasing
because they are considered to be healthy as well as environmentally conscious.
Therefore, Organization perceives a green marketing as an opportunity to cater environment-conscious
consumers. Nowadays firms offer goods with environmental features get a competitive
advantage over firm offering non-environmental products.
For
example, McDonald's replaced its clam
shell packaging with waxed paper because of increased consumer concern relating
to polystyrene production and Ozone depletion.
Corporate
Social Responsibility:
In
the present scenario, many firms have
begun to realize that they are part of society and they have a responsibility
to serve society. Now firms believe that they must achieve environmental
objectives along with another objective like growth in sales and an increase in
profit. This results in environmental issues being integrated into the firm's
corporate culture. Firms can use the fact that they are environmentally
responsible as a marketing tool.
For
example, Walt Disney World has an
extensive waste management program and infrastructure in place, yet these
facilities are not highlighted in their general tourist promotional activities.
Governmental
Pressure:
The
government frames the various laws to protect and preserve the environment.
Various regulations are framed by the government to protect consumers and the
society at large. The Indian government has also developed a framework of
legislations to reduce the production and consumption of harmful goods.
For
example the ban on plastic bags,
prohibition of smoking in public areas, etc.
Competitive-Pressure:
Another
major reason to adopt green marketing is a firm’ desire to maintain their Competitive
position. Environmental activities pressure firms to change their environmental
marketing activities.
For
example, Xerox's "Revive 100%
Recycled paper" was introduced a few years ago in an attempt to address
the introduction of the recycled photocopier.
Cost
and Profit issues:
Nowadays
firms use green marketing to address cost/profit related issues. Disposing of
environmentally harmful by-products becomes very costly as well as difficult.
Firms forced to develop a more effective production process that not only minimizes
waste but also reduces the quantity of raw material. This serves as a cost
saving method.
2.
Green Initiative In India:
a.
Green Initiative Taken By Electronic Firms:
Philips
Eco Vision: Philips Electronics
launched “EcoVision4″ program. The company has 91 new Green Products in
the market. Philips Green logo shows that the products have a significantly
better environmental performance. Panasonic provides appliances by using
sensors and has a series of products like a refrigerator, washing machine,
cooker that are made from recycled material.
LG’s
Greenovation:
LG's
launched a "Green Program Plus" which promotes shared growth with its
suppliers and green businesses to create a future growth and program Green 2020
showed commitment and its capabilities for sustainable development.
Videocon
Green Initiative:
The
Green color used in the logo is a symbol of company ecology dream. Videocon
Group has upgraded their RandD centers to "green" technology to save
energy and emit less harmful substance.
Sony
Eco-Innovation:
Sony
has become the latest major manufacturer to join O2’s campaign to rid the
market of unnecessary mobile phone chargers. Sony has joined manufacturers HTC
and Nokia which has already signed up to the O2 initiative, called 'Charger out
of the box'. The campaign aims to take all chargers out of new phone boxes by
2015, as they are a gigantic environmental waste issue for the industry.
b.
Green Initiatives By Telecommunication Companies:
Idea
Cellular:
‘Use
Mobile Save Paper’ is the national campaign implemented by idea cellular. It organized
Green pledge campaign and decorated buses with plants to convey the message of greenery
so that everybody can contribute to saving paper and trees.
Apple:
It also has taken steps to take back old apple products, by
giving a discount on next purchase.
Samsung:
Samsung
was the first company to offer a mobile phone that is made of renewable
material. These mobile handsets –W510 and F268 are environment-friendly
products.
Nokia:
Nokia’s
has taken the initiative to manage the e-waste material. It starts to take back
scheme and establish a collection center to recover useful materials and
dispose of waste.
IBM:
It
establishes green data centers that
consumed less energy.
HCL:
It
is moving towards phasing out hazardous vinyl plastic and brominates flame
retardants from its products.
Wipro Infotech:
It
was the first company in India to launch environment-friendly computer. Wipro
has launched a new version of desktops and laptops called Wipro Greenware.
These products are RoHS. RoHS stands for Restriction of Hazardous Substances.
These products are helping in reducing e-waste.
HP:
In
2010 HP promised to cut its energy
use 20 percent by the year 2010 globally.
Green
Initiative By AutoMobile Companies
Hero Honda Motor:
It
has a continuous focus on innovation in green products and makes a balance
between business and nature.
Honda:
Honda
introduced its civic Hybrid car in India.
Maruti:
It has launched a WagonR
based upon LPG. It frames policy based upon 3R Reduce, Reuse, Recycle.
Hyundai:
It has offered a Santro car based on CNG.
Mahindra Group:
This group has launched
project Mahindra Hariyali in which million of trees will be planted by all
stakeholders in India.
Tata
Group:
Tata's
new mantra is Going Green. It has built up a showroom using the natural
material in their design.It shows natural atmosphere. Tata group also launched
a purifier that is made from natural material.
C.
Green Initiatives By Bank:
State
Bank of India:
SBI
is entered into green service known as “Green Channel Counter” in 2010. SBI is offering
many services like; paperless banking, no deposit slip, no withdrawal form, no
checks, no money transactions. State Bank of India used wind energy in place of
thermal energy with collaboration with Suzlon Energy Ltd. to reduce emissions.
SBI launched carbon disclosure project.
Induslnd
bank:
IndusInd
Bank had opened the first solar-powered ATM.
Punjab
National Bank:
Bank
has started energy efficient appliances and also launched green audit sheet to
access the impact of the various green initiatives taken by banks. The bank also
provides a loan to a business unit producing renewable energy.
Bank
of Baroda:
Bank
had added new delivery channel like Internet banking, Mobile banking, ATM to reduce
the use of paper in banking.
Canara
Bank:
The
bank has collaboration with UNEP for the solar project under development
project initiatives in the year 2003. The bank is also providing solar power
biometric ATM in a rural area. The banking is providing loans for implementing
solar lighting system.
ICICI
Bank:
The
bank is working with Green Business Centre having a focus on promoting green
building, energy efficiency, reverse logistics and recycling. It Provides 50%
loan for purchasing selective car models that use an alternate mode of energy
like Liquefied petroleum Gas and Compressed Natural gas.
HDFC
Bank:
Reduction
in paper usage by issuing e-transaction advice to corporate customers and
encouraging statements among retail customers. The bank also used conventional
light options by CFLs and establishing green data centers.
Axis
Bank Limited:
Under
the Green Banking Initiatives the bank uses the theme of Reduce, Recycle, and
Reuse.Various green initiatives such as the distribution of tree saplings and
creating awareness among society have been taken by the bank.
Kotak
Mahindra Bank:
This bank start “Think Green” initiatives to encourage the
consumers to sign for e-statement and for every e-statement signed Trees.com
plants a tree on behalf of the bank.
d.
Green Initiative By FMCG Companies:
Proctor
and Gamble:
This
company has introduced refills for its Handwash cleaners and Detergent packs
that can throw away after using.
Coca-Cola:
Coca-cola
pumped syrup directly from the tank instead of plastic.
New
Surf Exel:
It
is very effective because it reduces water consumption.
ITC:
It
has introduced Papercraft a premium range of eco-friendly business paper. This
company also takes farm forestry initiative in an arid land.
Kirloskar
Copeland Limited:
This
company introduced the eco-friendly R404A gas compressor recently.
Kansai
Nerolac:
Kansai
Nerolac has worked on removing hazardous metals from their paints. The
hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can
have adverse effects on humans health.
e.
AnotherGreen Initiative Takes Place In India:
Green
City:
First
green city in India is Agartala. Tripura govt announced that all public and
private vehicles run on compressed natural gas in Agartala.
Bhardwara power station:
This station of NTPC in Delhi used coal ash in a different
way to reduce pollution.
Tamilnadu
Newsprint and Paper limited:
It
recognized two clean projects that generating biogas.
Reva
India:
It
is a Bangalore based company first in the world that generate an electronic
Car.
E-Rickshaw:
A battery
operated rickshaw e-rick sponsored by cellular service providers, promote eco-friendly
transportation in Delhi.
Taj
hotel Group:
This
group runs the Taj chain, is establish creating Eco rooms which will have
energy efficient mini bars, organic bed linen, and napkins made from recycled
paper.
Thyagaraja
Stadium:
It
stands tall in a residential colony behind the INA Market in Delhi. This
stadium has been constructed as per the green building concept with
eco-friendly materials.
Tata
Metalikes Ltd:
It
has initiated the use of sunlight during in its offices
Suzlon
Energy manufactures:
It
provides an alternative source of energy based on wind power. This green
initiative taken by the company is important for reducing the carbon footprint.
E-tickets
by Indian Railways:
Indian
railways have allowed its customers to carry PNR no. Of their e-tickets on
their laptop and cell phone and there is no need to carry a printed version of
tickets anymore.
McDonald's
restaurant:
Its napkins and bags are made of recycled paper.
Steel
Companies Group:
Tata
Steel, Jindal Vijaynagar Steel, Essar Power and Gujarat Fluorochemicals Ltd.
etc have got clearance to undertake specifically designed projects in order to
gain benefits from carbon trading.
Oil
and Natural Gas Corporation Ltd.:
India‘s
largest oil company, has introduced energy efficient Mokshada Green
Crematorium, which saves 60% to 70% of wood.
KFC’s
new green restaurant:
The latest store was built using elements that follow the
Leadership in Energy and Environmental Design.
Challenges
of Green Marketing
New
Concept:
Indian
consumers are aware of green products and their merits, but large segment still
unaware. There is a need to aware consumers about products.
More
expensive:
Green
products require renewable and recyclable material. Green products also require
a new technology which is costly.
Green
Washing:
Problems
of deceptive advertising and false claims. Sometimes companies claim that their
products are green or organic, but actual these products are not green.
Consumer
behavior:
Nowadays
the majority of consumers are environmentally
conscious but they are not willing to pay a premium price for green products.
Social
Auditing of Green claims:
The
claims of the market and non-market forces of going green must be done through
proper auditing procedure but there is no legal authority to verify such
claims. Thus, we see that the social auditing of the green claim is not
properly adopted.
Information
Disclosures:
The
biggest challenge in front of the firms is first, all information regarding
greenness must be adequate and reliable, and secondly these should not be false
claims.
CONCLUSIONS:
The
environmental problem is growing very fast in India. Every stakeholder wants to
play some important role to conserves our environment. Green marketing is a recent
phenomenon and helps to create awareness among consumers and business firms to
reduce the detrimental impact on the environment. It is very important to
implement green practices in business. Every business is entering the green
marketplace at high speed to keep pace with customer and societal demands to
reduce their environmental impacts. Green marketing makes a drastic change in
the world. Now consumer prefers eco-friendly products. This paper helps us to
study the reasons and challenges faced by firms. This paper helps us to study
various green practices adopted by different firms like Electronic firms,
Banking sector, FMCG firms, and another initiative simultaneously in India.
LIMITATION
AND FUTURE RESEARCH:
This
paper is a conceptual paper mainly focus on secondary data. Under this paper,
there are very few industries that are studied, but there is the immense scope
of further research on green marketing in emerging economies like India. As
people are more aware of green product so we can study consumer awareness and
their buying behavior towards green products. An in-depth study, particularly
for rural Indian Consumers, can be performed to know their awareness and behavior
toward green marketing. Intensive research can be done in Indian Automobile
Industry, Indian Telecommunication Industry with respect to Green marketing
issues. Research also can be done on Indian Power Sector with respect to GREEN
POWER. Research can be done in Indian Housing Sector with reference to GREENHOUSES
or GREEN BUILDINGS and on Indian Tourism Industry with respect to GREEN
Tourism.
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