The emergence of Green Marketing has struck India as in other parts of the
developing and developed countries. It started as a new revolution in India in
the late 1990s. Since then, a radical change in consumer preferences and
lifestyles in the past few decades due to it. Consumers’ behaviour and thought
process towards a green lifestyle has changed a lot. To tap in more consumers,
more and more companies are taking up green marketing.
The transition from
Traditional marketing to Green marketing has brought upon newer challenges on
the companies. Nevertheless, green marketing has brought a change in consumer
attitudes and the desire of the companies and organizations to gain an edge in
the competitive market through the exploitation of the green market industry.
Initiatives taken up by few selected companies towards green marketing in India
are discussed in this study.
Though their initiatives are different, the goals
are similar and the initiatives have resulted in a competitive advantage for
these organizations. The study gives an overview of the green marketing concept,
discusses its advantages and the problems associated with it and discusses its
practices in India.
What is Green Marketing?
Promotional activities aimed at taking advantage of changing consumer attitudes
towards a brand. These changes are increasingly being influenced by firms’
policies and practices that affect the quality of the environment and reflect
the level of its concern for the community.[1] Mr. J. Polonsky defined green
marketing as - "All activities designed to generate and facilitate any exchange
intended to satisfy human needs or wants such that satisfying of their needs and
wants occur with minimal detrimental input on the national environment."[2]
In simpler words the process of manufacturing selling products or services that
are eco-friendly is called green marketing. Those products or services can
either be environmentally friendly or produced in some environment-friendly way,
including:
Products produced or services provided in a sustainable fashion
Products that don’t contain any toxic materials
Products that are made from renewable or eco-friendly materials (for instance
bamboo, coconut bark, cotton, etc.)
Products whose manufacturing doesn’t exploit or harm the environmental resources
- Products that have eco-friendly packaging
- Products that are not tested on animals
- Products made from chemicals that have been approved
- Products that are reusable and bio-degradable
History and Evolution of Green Marketing
. The first wave of green marketing came in the 1980s. The substantial point of
reference for the principal wave of green marketing came in the form of books
which were called Green Marketing. They were by authored by Ken Pattie (1992) in
England and by Jacquelyn Ottman (1993) in the United States of America.
As indicated Ken by Pattie (2001), the development of green marketing had three
stages.
- To start with, the first stage was called the "Ecological" green
marketing, and all the marketing activities amid this period dealt with
helping to solve environmental problems and give remedies for these
environmental problems.
- The stage that was called the stage of "Environmental" green marketing
was the second stage. Clean technology, involving designing of new and
innovative products that could take care of contamination and wastage
problems were the areas that were emphasized upon.
- The stage that was called the stage of "Sustainable" green marketing,
was the third stage. In the late 1990s and early 2000, it became a force to
be reckoned. It dealt with developing great quality items that could meet
the consumers’ demands by concentrating on the quality, performance, cost
price, ease of availability and convenience in an eco-friendly way.
Literature Review:
- Madhumita, G.& Sara. (2014) gave a brief outlook of green marketing, how it
works and its avenue in India.
- Prothero, A. (1998) introduced several papers that were discussed in the July
1998 issue of 'Journal of Marketing Management' which focused on green
marketing.
- Jain, S.K. & Kaur, G. (2004) discussed that business firms too have risen to the
occasion and have started responding to environmental challenges by practicing
green marketing strategies.
- Chauhan, H.P.S. (2015) talked about sustainable development as per the “Report
of the World Commission on Environment and Development†by UNO. He talked about
the keys of success in green marketing, its advantages and problems associated
with it.
- Tiwari, J.(2014) talked about green marketing being a tool for protecting the
environment for future generation.
Methodology
Green marketing is the need of the hour. For mankind to survive, sustainable
development has to be carried out and green marketing is one of the most
important features of sustainable development. The study is exploratory in
nature to provide clear guidance. The doctrinal methodology of research has been
followed. Books, research journals, government reports and websites were used as
sources of data.
Analysis
Why Organizations Are Taking Up Green Marketing?
- Opportunity - About 25% of the consumers in India, prefer eco-friendly
products over non-eco friendly ones & about 28% might be considered
health-conscious. Many companies and organizations see this as an
opportunity to use and have an upper hand over the companies and
organizations that haven’t taken up green marketing. For instance,
Clamshell packaging was replaced by waxed paper due to increasing customer
concern relating to polystyrene production and Ozone by McDonald’s.
- Corporate Social Responsibility - Organizations have started realizing
that they too are members of the society and need to act in an
environmentally responsible manner and many are seeing this as an
opportunity to cash in more customers. Organizations in these kinds of
situation have two options- (i)
Making use of the fact that they are environmentally responsible as a marketing
tool or (ii) Becoming responsible without the promotion of these facts for the
betterment of the environment and society.
For instance,
Body Shop 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.
- Competitive Pressure- Another significant power in the green marketing
region is the desire of the companies and organizations wanting to keep up
their competitive position. Companies watch their contenders advancing their
environmental behaviour and practices and endeavour to imitate this conduct
in a plethora of cases. This aggressive pressure has caused complete
industries to alter and consequently lessen its adverse ecological conduct
in a few cases. For instance, Revive 100% Recycled paper was introduced some
years ago which was an attempt to introduce recycled photocopier paper by
Xerox which made other manufacturers make them too.
- Issues regarding cost and profit- Companies and organizations can use
green marketing as a tool for addressing cost and profit related issues.
Companies and organizations that can lessen their harmful wastes can save a
substantial amount of money.
- Pressure from Governments- Governments want to look after the consumers
and society with all the activities related to marketing. Regulations given
by the government relating to green marketing are designed to save customers
in a lot of manners.
Problems with Green Marketing
- Green Spinning- Some business companies and organizations often try to
respond to environmental challenges and issues through presentation of their
own version of facts by means of their public relation efforts instead of
environmentally improving the product. These kinds of practices and
activities end up adding to the stock of confusion that already exists in
the market and lowers down the integrity of genuine claims made by other
companies and organizations.
- Green Selling- Organizations keep on producing for all intents and
purposes a similar item, however, they include some "new" environmental
advantages in their advancement battles to exploit the increasing customer
base in the environment. Green marketing endeavours with respect to the organizations
stay concerned just with promotional activity, without any effort to create
items which are genuinely green when it is practised in this form.
- Green Harvesting: Green marketing can lead to a decrease in the
production cost of a product. Numerous organizations and companies get
tempted by and opt to take up green marketing and harvest the market. They
sell their products at higher prices even when their production cost is low
to earn more profit and when these organizations and companies really have
to take a step towards the sustainable development, they retreat and become
hesitant as it would result in the depreciation in the levels of their
profit.
- Compliance Marketing- Organizations and companies following this
strategy are the ones who take up only those environmental initiatives that
are the ones imposed on them through regulations by the government. The
compliance of these companies and organizations with environmental laws is
just to make their products more famous in the market. They don’t care about
green issues.
- Green Washing- Greenwashing is the overstating of the environmentally or
socially conscious attributes of a firm’s offering and the understating of the
negative attributes for the firm’s benefit.[3] This is taken up as an
opportunity for earning short-term profits rather than as a market opportunity
by a plethora of companies. This is how companies and organizations create
consumer distrust in green marketing efforts when they adopt or make false or
misleading environmental claims.
Traditional Marketing Vs Green Marketing
Traditional Marketing |
Green Marketing |
Goals
1. Customer satisfaction
2. Organizational goals |
Goals
1. Customer satisfaction
2. Organizational goals
3. Ecosystem compatibility |
Decision-making Frame of Reference
1. Fragmented thinking
2. Non-boundary spanning
3. Short term orientation |
Decision-making Frame of Reference
1. Integrated thinking
2. Boundary spanning
3. Long term orientation |
Philosophical basis
1. Anthropocentric
2. Ecosystem an open sink |
Philosophical basis
1. Biocentric
2. Ecosystem a physical limiting factor, eco cost must be paid |
General tools/approaches
1. Use planning to minimize cost of local waste disposal
2. Reactive approach to waste management
3. Focus on industrial functions
4. Total quality management |
General tools/approaches
1. Use life cycle assessment and environmental audits to minimize and
redirect waste management
2. Proactive approach to waste management
3. Focus on industrial processes
4. Total quality environmental management |
Ecological Accountability/Responsibility
1. Limited product risk
2. Local/Regional/National
3. No/underpaid ecological costs |
Ecological Accountability/Responsibility
1. Product risk
2. Global/International
3. Full accounting of ecological costs |
Source: Donald A. Fuller,
Sustainable Marketing: Managerial-Ecological
Green Initiatives In India
- HCL Technologies
HCL Technologies has come up with a plan known as HCL’s Ecosafe to identify,
develop and sustain the maintenance of an environmental management system at the
corporate level. Encapsulation of knowledge, awareness and key advancements on
all environmental issues confronted by the present world and to fusing these in
HCL's operations guaranteeing their dedication in delivering quality products,
solutions and services is the ultimate goal of this objective. Integrating
environmental management procedures into its business processes and in this
manner ensuring the earth, wellbeing and security of every one of its partners
is the main objected under HCL Ecosafe. HCL resolves to make items that are
environment-friendly in all regards and free from dangerous chemicals.
Successfully carrying out product lifecycle management to ensure that the
products, from when they are produced, purchased by consumers, recovered at
their end-of-life and recycled after useful life are done in a responsible
manner is the key objective on which HCL EcoSafe concentrates on. Hence, HCL
Technologies can be considered as the icon of India’s green initiatives.
- Lead Free Paints from Kansai Nerolac
Activities for Removal of hazardous and dangerous heavy metals from their paints
have been carried out by Kensai Nerolac. These hazardous heavy metals can have
adverse effects on humans. Some of these heavy metals are lead, mercury,
chromium, arsenic and antimony. Paints containing lead pose danger to human
health as the Central Nervous System, kidney and reproductive system can be
severely damaged by it. Kids are very vulnerable to lead poisoning which can
lead to lower intelligence levels in kids and even memory loss in some cases.
Nerolac Impressions Eco Clean has been introduced by Kansai Nerolac. This is an
eco-friendly paint. has low Volatile Organic Compounds (VOC). Volatile Organic
Compounds in paint affect the water, soil and outdoor as well as the indoor air.
They pollute it. This can cause respiratory problems and irritation and redness
in the eyes. Nerolac has taken a rational step and led the industry by
introducing low VOC paint and creating awareness about Lead-free goods in India.
- Oil and Natural Gas Company (ONGC)
Oil and Natural Gas Company, the largest producer of oil in India, is good to go
to lead the rundown of best 10 Indian organizations that have taken up green
marketing with energy-efficient, green crematoriums that will soon supplant the
conventional wooden fire across the nation. ONGC‟s 60 to 70% of wood and a
fourth of the consuming time per incineration will be saved by following
Mokshada Green Cremation activity brought to light by ONGC.
- ITC
One of India’s biggest conglomerate ITC has been strengthening its commitment
to green technologies through introducing ‘ozone-treated elemental
chlorine-free’ bleaching technologies for the first time in India. Additionally,
ITC has also been very active in green marketing in the past decades. ITC has
been ‘green positive’ for three years in a row. ITC is recycling nearly 100
percent of the solid waste it is producing. And it has been declared to be
‘water positive’ i.e., ITC has been into harvesting rainwater harvesting thereby
creating three times more water than the net water it is consuming. ITC also
conforms to all international environmental, health standards. ITC’s business
creates 5 million employment opportunities. ITC has set up e-choupal initiative
which is considered to be the world’s largest rural digital infrastructure
through which 4 million farming families are benefiting. ITC’s watershed
development initiative brings water to nearly 35000 hectares of dry lands and
moist stressed areas.
ITC’s social and farm forestry initiative has led to the
development of over 80000 hectares of green lands and thereby creating an
estimated 35 million person-days of employment among the disadvantaged. ITC also
follows sustainable community development initiatives which include women
empowerment, supplementary education, integrated animal husbandry programmes.
ITC has introduced papercraft, a premium range of eco-friendly business paper.
ITC takes up to social forestry for its paper and packaging business as a part
of its green initiative. The result of the green initiative of ITC has led to a
new range of top green products and solutions which are the environment-friendly
multipurpose papers that is less polluting than its traditional counterpart.
- Suzlon Energy
Suzlon energy is the world’s fourth-largest wind-turbine maker is among the
greenest and the best Indian companies in India the visionary behind Suzlon is
tulsi tanti has convinced the world that wind is the energy of the future and
established his factory in Puducherry to run entirely on wind power. It makes up
to thirty percent of the renewable energy in India thereby making it one of the
biggest companies that reduce the carbon footprint in the world. Suzlon’s
corporate building is the most energy-efficient building ever built in India.
- Wipro
Wipro is an Indian information technology service corporation which also
demerged its businesses into separate companies. It is the first Indian company
to launch environment friendly peripherals. Wipro has launched a new range of
laptops and desktops called Wipro greenware which are ROHS[restriction of
hazardous substances] thereby reducing e-waste in the environment. It was the
first company in India who developed eco-sustainability in the form of energy,
water efficiency and waste management. It is actively seeking to be a green
company. Its main initiatives to be a green company is being achieved through
achieving its objectives of becoming carbon neutral, water positive and energy
saving in the business organization. It designs products to minimize hazardous
waste. Wipro has reduced its per capita electricity consumption and procured
renewable energy. Wipro buildings conform to various international green
standards.
- Godrej
Godrej is one of the biggest Indian conglomerate which caters to the needs of
various groups of people in India. Godrej set up Godrej green centre which
claims to be energy, water and construction material-efficient thereby reducing
the impact on human health and the environment through better design,
construction, operation, maintenance and waste disposal. Godrej green buildings
created the momentum for the change in the Indian construction industry.
Conclusion
Today, consumers are much more concerned about climatic changes. There is a
radical change in consumer preferences and lifestyles. Due to this shift from
traditional marketing to green marketing, now companies are facing many new
challenges. So, if today's successful marketing is about appealing to personal
values and delivering consumer empowerment, then surely the time is right to
inject sustainable development into the marketing mix to help address some of
the gritty issues currently facing our planet.
Green marketing methods produce
highly effective results. Agencies need to apply all of the steps to cut costs,
raise response rates and increase growth in their marketing policies. Green
marketing should not neglect the economic aspect of marketing. Marketers need to
understand the implications of green marketing.
References
- Madhumita, G.& Sara. (2014). Green Marketing – Companies Urging Towards
Green Revolution. Asia Pacific Journal of Research, Vol: I, Issue XIII.
- Prasad, V.V.S.K Green Marketing Initiatives by Indian Corporate Sector -
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- Srivastava, M.(2013) Green Marketing: The innovative mantra of
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- Chauhan, H.P.S. (2015). Green Marketing Initiatives In India: An
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- Polonsky, M. J.(1994)
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