Hemantkumar P Bulsara
Sardar Vallabhbhai National Institute of Technology, India
E-mail: hemantbulsara@gmail.com
Manita Matharu
Amity school of Business; Amity University, Ukraine
E-mail:
manita.mktg@gmail.com
Krystyna Tarasova
Odesa National Economic University, Ukraine
E-mail: ckvett@gmail.com
Olha Rulinska
Odesa National Economic University, Ukraine
E-mail:
rulinskaya86@gmail.com
Inna Gogol
State Agrarian and Engineering University in Podilya, Ukraine
E-mail:
gogol-inna@meta.ua
Submission: 8/25/2021
Revision: 9/29/2021
Accept: 9/30/2021
ABSTRACT
One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like "Green Marketing" and "Environmental marketing" appear frequently in the popular press. Many governments around the world have also become so concerned about green marketing activities. Attention was drawn to the subject in late1970’s when the American Marketing Association organized a workshop on Ecological Marketing in 1975. Green Marketing has been an important academic research topic since its inception. But at the same time one of the biggest problems with the green marketing area is that there has been little attempt to academically examine environmental or green marketing. Although environmental issues influence all human activities, few academic disciplines have integrated green issues into their literature.
The aim of the study was to explore research and real-life examples of green marketing that may help in future empirical research. This paper attempts to examine the concept and evolution of green marketing, identify what makes marketing green. An attempt has also been made to discuss some examples of green marketing practices in Indian context and ascertain the ways to improve consumer appeal for environmentally preferable products through different marketing strategies.
Keywords: Environmental marketing; Green
marketing; Brand; India
1.
INTRODUCTION
Terms
like "Green Marketing" and "Environmental Marketing" appear
frequently in the popular press. Many governments around the world have become
so concerned about green marketing activities that they have attempted to
regulate them (Polonsky 1994a).
Environmental
marketing has been defined 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 profitable and sustainable way’ (Peattie, 1999).
Investopedia
explains 'Green Marketing' as; Green marketing companies seek to go above and
beyond traditional marketing by promoting environmental core values in the
hope that consumers will associate these values with their company or brand.
Engaging in these sustainable activities can lead to creating a new product
line that caters to a new target market.
Also
known as sustainable marketing, environmental marketing or ecological
marketing, refers to an organizations effort at designing, promoting, pricing
and distributing products that will not harm the environment (Pride &
Ferrell, 1993).
Green
marketing has been defined as 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 occurs, with minimal detrimental
impact on the natural environment (Polonsky, 1994).
Although
an agreed upon definition of “Green” does not exist, a focus on “GREEN” is
generally considered as a holistic effort to reduce the impact of resource use
while making products or delivering services that won’t harm people or the
planet.
According
to Kangis (1992), green marketing must be more than either a green way of
marketing, or the marketing of so-called green products. Green marketing that
has been previously and primarily focused on the ecological context has been shifted
to more sustainability issues in the marketing efforts and main focus now is in
socio-economic and environmental context.
Whereas,
green market is identified as a part of market segments based on the greenness’
of the consumer (Simintiras et al., 1994).
The
term green marketing refers to the strategies to promote products by employing
environmental claims either about their attributes or about the systems,
policies and processes of the firms that manufacture or sell them (Prakash,
2002).
Clearly,
green marketing is part and parcel of the overall corporate strategy (Menon
& Menon, 1997). Along with manipulating the traditional marketing mix
(product, price, place and promotion), it requires an understanding of public
policy processes. Green marketing also ties closely with issues of industrial
ecology and environmental sustainability such as extended producers, resource
flows and eco-efficiency (Prakash, 2002).
One
of the main barriers to the development of green marketing is the lack of
proper promotion of the national environmental label, and even the products
labeled with it in general. The consumer is often simply unaware of its
benefits. Therefore, the support of the state in this matter is extremely
necessary, at least at the initial stage of development of this direction in
marketing.
One
of the biggest problems with the green marketing area is that there has been
little attempt to academically examine environmental or green marketing.
The
aim of the study
was to explore research and real-life examples of green marketing that may help
in future empirical research.
2.
REVIEW OF LITERATURE
The
concept of green marketing has been around at least since the first Earth Day
in 1970. But the idea did not catch on until the 1980s, when rising public
interest in the environment led to a demand for more green products and
services. Manufacturers responded to public interest by labeling hundreds of
new products "environmentally friendly"—making claims that products
were biodegradable, compostable, energy efficient, or the like. The term green
marketing came into prominence in the late 1980s and early 1990s. The American
Marketing Association (AMA) held the first workshop on "Ecological
Marketing" in 1975.
The
proceedings of this workshop resulted in one of the first books on green
marketing entitled "Ecological Marketing". Unfortunately, a majority
of people believe that green marketing refers solely to the promotion or
advertising of products with environmental characteristics. Terms like phosphate
free, recyclable, refillable, ozone friendly and environmentally friendly are
some of the terms consumers most often associate with green marketing. While
these terms are green marketing claims, in general green marketing is a much
broader concept.
In
1992, the Federal Trade Commission (FTC) stepped in to prevent further
deception. The FTC created guidelines for the use of environmental marketing
claims such as "recyclable," "biodegradable,"
"compostable," and the like. The FTC and the U.S. Environmental Protection
Agency defined "environmentally preferable products" as products and
services that have a lesser or reduced effect on human health and the
environment when compared to other products and services that serve the same
purpose. The label "environmentally preferable" considers how raw
materials are acquired, produced, manufactured, packaged, distributed, reused,
operated, maintained, or how the product or service is disposed.
Examples
of environmentally-beneficial products and services:
· Paper containing post-consumer wastepaper;
· Cereals sold without excess packaging;
· Cleaning supplies that do not harm humans or
environment;
· Wood harvested from sustainable forests;
·
Energy-efficient light bulbs;
·
Energy-efficient cars;
· Energy from renewable sources of energy such as
windmills and solar power.
Today,
special labels help the public identify legitimate environmentally preferable
products and services. Several environmental groups evaluate and certify
products and services that meet FTC standards—or their own tougher standards.
One popular product that has received certification is shade-grown coffee, an
alternative to coffee beans that are grown on deforested land in the tropics.
Green marketing is a way to use the environmental benefits of a product or
service to promote sales. Many consumers will choose products that do not
damage the environment over less environmentally friendly products, even if
they cost more. With green marketing, advertisers focus on environmental benefits
to sell products such as biodegradable diapers, energy-efficient light bulbs,
and environmentally safe detergents (Ottoman et al., 1999).
Though
green marketing has in recent years received considerable attention from both
marketing practitioners and academicians, it has existed for decades and has
been practiced by business firms without having been formally termed and
recognized as such (Kuhre, 1997).
The
products those are manufactured through green technology and that caused no environmental
hazards are called green products. Promotion of green technology and green
products is necessary for conservation of natural resources and sustainable
development. The green products can be classification through
following measures:
·
Originally grown products;
·
Recycled and reusable;
· Products without non-toxic chemical;
· Products that do not harm or pollute the environment;
· Products that have eco-friendly packaging (Mishra et
al, 2010).
The
green awareness began in between of the 1960s and early 1970s with increasing
concern about the negative impact of consumption pattern, impact of economic
and population growth on the environment (Cohen, 2001). It is found that only
5% of the marketing messages from “Green” campaigns are entirely true and there
is a lack of standardization to authenticate these claims. The concept of green
marketing is the business practice that considers consumers concerns with
regards to preservation and conservation of the natural environment
(Coddington, 1993).
Green
marketing practices generally promoted as the genuine concern for the nature of
inputs as well as outputs waste reduction and the impact of these upon the
environment and society as a whole both in present and future conditions
(Walker and Hanson, 1998). It is difficult to find an industry that does not
harm the environment 100%. But there are some products that can be called
"environment friendly", if these products aim at limiting the
environmental negative effects (Hindleetal, Pujari & Wright, 1993, 1996).
Gura˘u
and Ranchhod (2005) compared between six British companies and six Romanian
companies with regard to presentation of environment friendly products. They
found that the Romanian companies concentrate in presenting their products on
asking for help of foreign mediators, in the contrast British companies which
their trademarks and concentrate on distribution of their products. This study
is concentrated on four green marketing elements (product, pricing,
distribution and promotion).
A
study by Teisl, Roe and Hick (2002) provided market-based evidence that
consumers can respond positively to eco-labels and consequently contributed to
the increased market share of the product concerned.
Figure 1: Green Consumer Values Factors
Source: Concerns about Green
Marketing
Figure
1 defines the green consumer values which are integrated with the combined
approaches of symbol and status, health and safety, convenience and efficiency
and cost. These values are most important in the marketing perspective as the
consumer or the industry as the brand of any product will mark the symbol and
the status of an individual or the organization. So, it becomes very important
to segment the different organization and consumers in terms of the different
value that they possess.
3.
RESULTS
3.1.
Segmentation
in Green Marketing
It
has been identified that the segmentation for companies and for consumers. According to Ginsberg and Bloom (2004),
companies can be classified on the basis of utilization of these elements companies
can classify in four categories:
a) Lean Green - These companies adopt the green practices but they do
not focus to publicize these initiatives. They implement the environment
friendly practices just for the cost reduction & improve the efficiency.
b) Defensive Green - This kind of marketer use green marketing as a
precaution to avoid the crisis situation or to counter the competition. They
use green marketing to create the positive brand image. Environment initiatives
may be sincere but temporary just to differentiate from the competitors.
c) Shaded Green - The companies those adopt shaded green strategy
invest in long-term, environmentally friendly processes that require a
significant financial and nonfinancial dedication. They differentiate their
product on the basis of greenness.
d) Extreme Green - Extreme green adopt green marketing mix in the
holistic manner. They integrate environmental concern in overall marketing
strategy. The greenness is the main driving force for the companies. Concept of
life cycle assessment, total environmental quality management, waste reduction,
and environment friendly promotion deeply embedded in the company
philosophy. They serve the niche segment
of the market.
According to a study by Roper (2002), 58% of U.S. consumers try to save electricity at home, 46% recycle newspapers, 45% return bottles or cans and 23% buy products made from, or packaged in, recycled materials. So it is clear that some consumers already demonstrate sporadic green sentiments in their habits and purchasing behavior. Understanding the target consumer will help marketers to know whether "greenness" is an appropriate selling attribute and how it should be incorporated into the marketing mix. To respond to consumers' varying degrees of environmental concern, marketers can segment the market into different shades of green. The Roper survey divides consumers into the following groups:
a) True Blue Greens (9%): True Blues have strong environmental values and take
it upon themselves to try to effect positive change. They are over four times
more likely to avoid products made by companies that are not environmentally
conscious.
b) Greenback Greens (6%): Greenbacks differ from True Blues in that they do not
take the time to be politically active. But they are more willing than the
average consumer to purchase environmentally friendly products.
c) Sprouts (31%): Sprouts believe in environmental causes in theory but
not in practice. Sprouts will rarely buy a green product if it means spending
more, but they are capable of going either way and can be persuaded to buy
green if appealed to appropriately.
d) Grousers (19%): Grousers tend to be uneducated about environmental
issues and cynical about their ability to effect change. They believe that
green products cost too much and do not perform as well as the competition.
e)
Basic
Browns (33%):
Basic Browns are caught up with day-to- day concerns and do not are about
environmental and social issues. (Roper, 2002)
According
to Al-Bakry (2007), the elements identified of the green marketing mix
are:
a) The green products: Green products are products that respond to
environment needs and requirements. As the customer's needs are necessary to
improve and develop products, the customer needs in an environment safer and
healthier are also important and should be considered.
b) The green pricing: The green pricing refers to the price specified in
the light of company's policies with regard to environmental consideration
imposed by rules and company instructions or its initiatives in this regard.
c) The green distribution: This is related to distribution gates use that deal
with green products, which are appropriate for consumers, in terms of
facilitating their delivery, and to secure cycling procedures conducting within
environmental conditions and requirements.
d) The green promotion: This refers to providing real information about the
products in a way that does not hurt the materialistic and moral consumers'
interests. Therefore, it has been analyzed that Green Marketing takes a special
effort and a different approach as how to Appeal to Green Consumers. Since
1989, Jacquelyn Ottman, a green marketing pioneer, adviser to the Fortune 500
and acknowledged guru of all things green, has been tracking the transition of
the green consumer from fringe to now mainstream. In her new book, which is
sure to become the go-to resource guide on the topic, Ottman (2008), reveals
what it takes to succeed in this new green marketplace, providing insight into
the specific needs of today’s mainstream consumers, and how companies large and
small have responded with fresh green marketing strategies.
3.2.
Green
Marketing rules:
a) Know your customer: If you want to sell a greener product to consumers,
you first need to make sure that the consumer is aware of and concerned about
the issues that your product attempts to address. Whirlpool is the only company
even after winning a $30 million "golden Carrot" prize for being
first to market with chlorofluorocarbons (CFC) -free
fridge, they discovered that consumers wouldn't pay the premium because they
didn't know what CFCs were - and there were no other value-added benefits.
b) Empower consumers: Make sure that consumers feel, by themselves or in
concert with all the other users of your product, that they can make a
difference. This is called "empowerment" and it's the main reason why
consumers buy greener products. This powerful principle underlies so many
campaigns laden with tips.
c) Transparent: Consumers must believe in the legitimacy of your
product and the specific claims you are making. Caution: There's a lot of
skepticism out there that is fueled by the raft of spurious claims made in the
"go-go" era of green marketing that occurred during the late
80s-early90s - one brand of household cleaner claimed to have been
"environmentally friendly since 1884"
d) Reassure the buyer: Consumers need to believe that your product performs
the job it's supposed to do. They won't forego product quality in the name of
the environment. (Besides, products that don't work well will likely wind up in
the trash bin, and that's not very kind to the environment).
e) Consider your pricing: If you're charging more for your product - and many
environmentally preferable products cost more due to economies of scale and use
of higher-quality ingredients - make sure that consumers can afford the premium
and feel it's worth it. Many consumers, of course, cannot afford premiums for
any type of product these days, much less greener ones, so keep this in mind as
you develop your target audience and product specifications (Ottman, 2008).
3.3.
Green Brands and Companies across
India
The global green brands study which
reveals current consumers’ attitudes and perceptions towards green issues. According to the 2011 Green Brands
survey, findings emphasize that brands must not only develop environmental strategies
to address their environmental impact, but they must also connect with
consumers in a compelling and relevant way on a market-by-market basis. Today,
being only eco-friendly is not enough—brands should be both green and
consumer-friendly, and only this can help them win big. Amul, Dabur, Infosys,
Taj Hotels, Britannia, Suzlon, Hindustan Uniliver, Wipro, Maruti, Godrej
Consumer Products are the top Green Brands and Companies in India.
Table 1: Top 10 Green
Companies in India
Green
Companies |
Green Initiatives |
Suzlon Energy |
The world’s fourth largest wind-turbine
maker is among the greenest and best Indian companies in India. Tulsi Tanti,
the visionary behind Suzlon, convinced the world that wind is the energy of
the future and built his factory in Pondicherry to run entirely on wind
power. Suzlon’s corporate building is the most energy-efficient building ever
built in India. |
ITC Limited |
ITC strengthened their commitment to green
technologies by introducing ‘ozone-treated elemental chlorine free’ bleaching
technology for the first time in India. The result is an entire new range of
top green products and solutions: the environmentally friendly multi-purpose
paper that is less polluting than its traditional counterpart. |
Tata Metaliks Limited (TML) |
Every day is Environment Day at TML, one of
the top green firms in India. A practical example that made everyone sit up
and take notice is the company’s policy to discourage working on Saturdays at
the corporate office. Lights are also switched off during the day with the
entire office depending on sunlight. |
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. |
Wipro Technologies |
Wipro which climbed to the top five brand
league in Greenpeace's 'Guide to Greener Electronics' ranking. Despite the
global financial crisis, Wipro held fast to its commitment towards energy
efficiency and was lauded for launching energy star compliant products in the
market. |
HCL Technologies |
-
This IT major may be considered as the icon of Indian green initiatives,
thanks to the “go green” steps taken in solving the problem of toxics and
e-waste in the electronics industry. HCL is committed to phasing out the
hazardous vinyl plastic and Brominated Flame Retardants from its products and
has called for a Restriction on Hazardous Substances (RoHS) legislation in
India. |
Oil
and Natural Gas Company (ONGC) |
- India’s largest oil producer, ONGC, is all
set to lead the list of top 10 green Indian companies with energy-efficient,
green crematoriums that will soon replace the traditional wooden pyre across
the country. ONGC’s Mokshada Green Cremation initiative will save 60 to 70%
of wood and a fourth of the burning time per cremation. |
IndusInd Bank |
Green banking has been catching up as among
the top Indian green initiatives ever since IndusInd opened the country’s
first solar-powered ATM and pioneered an eco-savvy change in the Indian banking
sector. The bank is planning for more such initiatives in addressing the
challenges of climate change. |
IDEA Cellular |
One of the best Indian companies, IDEA,
paints India green with its national ‘Use Mobile, Save Paper’ campaign. The
company had organized Green Pledge campaigns at Indian cities where thousands
came forward and pledged to save paper and trees. IDEA has also set up bus
shelters with potted plants and tendril climbers to convey the green message. |
Hero Honda Motors |
Hero Honda is one of the largest two-wheeler
manufacturers in India and an equally responsible top green firm in India.
The company’s philosophy of continuous innovation in green products and
solutions has played a key role in striking the right balance between
business, mankind and nature. |
Table
2: There are some more interesting cases related to Green Marketing in India:
India's First Eco-Friendly Green Stadium |
Thyagaraj
Stadium, constructed for the Commonwealth Games in New Delhi has been tagged
as India’s first ever energy-efficient stadium. This majestic structure
stands in the heart of the very quiet residential colony behind the famous
INA market of Delhi. It has been built using the latest green building
technology and energy-efficient construction material such as fly-ash bricks.
|
India’s First Green Railway station |
Railways have inaugurated
India's first green station at Manwal on the Jammu-Udhampur rail route. With
the tiny station facing frequent power cuts, it has been a provided a supply
of solar power. The lighting and fans are working on solar power. The state electric
supply is a standby source, which can be used in case of any failure of solar
system. |
Eco-friendly Buildings |
The Indian Green Building Council (IGBC),
one of the only two organizations that certify buildings on green quotient
defines it as “one which uses less water, optimizes energy efficiency,
conserves natural resources, generates less waste and provides healthier
spaces for occupants, as compared to a conventional building.” The Green Rating for Integrated Habitat
Assessment (GRIHA) of The Energy and Resource Institute (TERI), the second of
the two organizations, that gives green certification has certified seven
buildings in Gurgaon. |
Indian Oil's Green Agenda |
As an active partner of the
Global Compact Programme of the United Nations, Indian Oil is fully Focused
on “sustainable development.” As a dominant player, the Corporation
recognizes protection of environment as a core commitment of its business. As
part of this commitment, all operating units and installations of Indian Oil
have a comprehensive safety, health & environment management system in
place. The facilities are periodically reviewed and upgraded from time to
time for better performance. |
Green Fuel alternatives |
In the country's pursuit of
alternative sources of energy, Indian Oil is focusing on CNG (compressed
natural gas), Auto gas (LPG), ethanol blended petrol, bio-diesel, and
Hydrogen energy. |
Agartala To be Northeast India’s First Solar city |
Tripura has planned to make
all public and private vehicles in Agartala run on compressed natural gas
(CNG) by 2013, thus making the capital "India's first green city".
Tripura Natural Gas Co (TNGCL) — a joint venture of the Gas Authority of India
Ltd (GAIL) and the Tripura and Assam governments—has undertaken a project to
supply CNG to all private and government vehicles. CNG will also be available
to those now using electricity, petrol and diesel to run various machineries. |
Green rickshaws |
Power distribution company
BYPL has agreed to set up ports for charging eco-friendly rickshaws that will
be powered by batteries and will soon be introduced in East and Central
Delhi. The company signed an agreement
with the HBL Soleckshaw Pedi Cab, makers of the ecofriendly-rickshaws,
offering to set up infrastructure that will be needed for charging the
batteries of these rickshaws. According to a BYPL spokesperson, the Pedi Cabs
can play at the maximum speed of 30 km per hour, are run on battery, do not
emit any smoke or cause noise pollution. These rickshaws have been designed
and promoted by Council of Scientific and Industrial Research (CSIR) through
one of its national research and development laboratory, the Central
Mechanical Engineering Research Institute (CMERI). |
4.
CONCLUSIONS
Green Marketers needs to promote
“added value” as green products have begun to rival their “brown” counterparts
in quality and ubiquity, savvy marketers have moved beyond targeting “deep
green” consumers with a “save the planet” pitch.
Today’s newly mainstream consumers
by promoting the added value their products provide: better health, superior
performance, good taste, cost- effectiveness—and even status (Menone, 2011).
The
present study opens a lot of scope for future research in the area of green
marketing as to how much practice of the concept of ‘green’ is in Indian
companies and whether is it incorporating in their corporate social
responsibility programs.
The
study of consumers’ perception towards such practices would also be
enlightening. Good reliability and validity are achieved, but with their
limitations, especially in the case of the emotional dimension (Hartmann et al,
2005).
The
structured strategy of green marketing can be seen as a solution to the present
economy as well as to future growth (Ioannis et al).
This
paper would give broad idea in the field of green marketing to the consumers as
well as the industry to improve their marketing strategies and also reduce the
cost for the effective marketing. It would also develop an effective
environmentally friendly approach for the marketing of their products and
services through green marketing channel and value-added services.
Through
green marketing the organizations can improve the production cycle by
implementing the green supply chain management for effective end to end
consumer and supplier management.
To
develop a green branding concept in the process of supply chain for effective
product utilization, recycle, renewable products category to help the
environment to utilize the natural resources to the fullest through green
marketing. This study opens the scope of research how companies can create
competitive edge through the effective use of the green marketing concepts.
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