Opportunities and Challenges of Green Marketing:: A Study of Small & Medium Scale Manufacturer Units in Ludhiana

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OPPORTUNITIES AND CHALLENGES OF GREEN MARKETING:

A STUDY OF SMALL & MEDIUM SCALE MANUFACTURER UNITS IN LUDHIANA
Submitted to: Mrs. Harleen Mahajan Faculty (PCTE)
Submitted by: Rohit Thakur 104972249458 MBA-2C
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Chapter 1
Introduction
Marketers play an important role in using and diverting the resources in a manner to give maximum satisfaction to the consumers with minimum efforts and cost. Another important aspect which a marketer needs to deal with is to anticipate the changes which can take place in future and accordingly frame the marketing strategies. The marketers today face a challenge from the environment point of view. Due to global warming, green house gas emissions, pollution, and energy crisis, world is facing a severe threat of being a very difficult place to live in. Therefore, the marketers need to include a green approach in framing the marketing programs strategies. With regards to this the marketers now have to go green. It means that due care must be taken while framing the marketing plans, strategies and policies so as to prevent the environment and nature from any harm caused due to its operations not only today but also in future. According to The American Marketing Association, 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 occurs with minimal detrimental impact on the natural environment. From the above definitions we can say that Green Marketing involves: Manufacturing and providing products to the consumers which are of good quality and at the same time not harmful to them even in long run. Use the resources for development in such a manner which will enable the future generations to avail the resources to meet their needs leading to Sustainable Development. Framing and implementing policies which will not have any detrimental effect on the environment i.e. at present as well in future. Thus according to the American Marketing Association, Green marketing is the marketing of products that are presumed to be environmentally safe. 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. Other similar terms used are Environmental Marketing and Ecological Marketing. Green Marketing has gained momentum in the context of global warming and climate change and this, in turn, has forced many companies to incorporate the principals of Green Marketing. Recently, Green Marketing has drawn the attention of
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government and this has forced them to introduce environment-friendly policies. As resources are limited and human needs and wants are unlimited, resources have to be utilized economically and in an environment friendly way. Green Marketing will play an important role in sustainable development. Every firm needs to adopt innovative methods to sustain itself in the competitive environment, thus Green marketing becomes an important aspect which every firm will have to implement in near future, so why not start practicing it immediately. The Government in near future is going to adopt stringent policies to enable sustainable development. The marketers should realize this and head on towards Green Marketing. Indian Government has already introduced Environment Protection Act in1986 and Environment. Audit in 1992, the marketers have to realize that with increasing amount of global warming and environmental harm caused due to industrialization and economic development, the Government is going to apply stringent policies to save environment and is going to be even more strict with regards to the development which will cause a severe threat to the environment. The environmental harm which is mainly due to green house gas emissions has caused a severe threat to the climatic conditions and the result of which can be seen in the form of droughts, scarcity of drinking water, floods ruining the agricultural produce etc. The Indian Government has ratified the Kyoto Protocol in August 2002 and will compel companies to account for the environmental damage caused due to business operations, and take stringent action against those organizations which cause harm to the environment. The G20 leaders are trying to curb the emissions to protect the earth and achieve development which is sustainable in nature.
Carbon emissions
The following figure shows carbon dioxide emissions, in million metric tons of carbon, of various nations. From the above figure we can see that though India has less emission as compared to other developed nations but the increased industrialization and development will lead to increased rate of green house gas emissions. However, the U.S. and other Western nations assert that India, will account for most of the emissions in the coming decades, owing to rapid industrialization and economic growth. The most important thing a company should consider is to be green, i.e. to reduce the amount of toxic or other dangerous substances in their products, and to manufacture/trade in environment friendly products and practice green business strategies. Thus the marketer should go on for Green Marketing Techniques.
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Green Marketing refers to holistic marketing concept wherein the production, marketing, consumption and disposal of products and services happen in a manner that is less detrimental to the environment. It is not only caveat emptor where the consumer should be made aware of all the necessary things about the product but now it is caveat vendor whereby the marketer should know all the aspects affecting the consumption of the product and also its impact on the environment. It is high time now for the marketers to be aware of the environmental effects of their marketing activities and also be prepared for various alternatives in case of scarce resources. Role of marketing in development will be appreciated only through sustainable marketing; i.e. it meets the needs of the present without compromising the ability of future generations to meet their own needs. This means that it might have to shed its present profligacy that encourages an unsustainable development path.
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Why Green Marketing?

It is really scary to read these pieces of information as reported in the Times recently: "Air pollution damage to people, crops and wildlife in US. Total tens of billions of dollars each year". "More than 12 other studies in the US, Brazil Europe, Mexico, South Korea and Taiwan have established links between air pollutants and low birth weight premature birth still birth and infant death". As resources are limited and human wants are unlimited, it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization's objective. So green marketing is inevitable. 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. Thus the growing awareness among the consumers all over the world regarding protection of the environment in which they live, People do want to bequeath a clean earth to their offspring. Various studies by environmentalists indicate that people are concerned about the environment and are changing their behavior pattern so as to be less hostile towards it. Now we see that most of the consumers, both individual and industrial, are becoming more concerned about environmentfriendly products. Green marketing was given prominence in the late 1980s and 1990s after the proceedings of the first workshop on Ecological marketing held in Austin, Texas (US), in 1975. Several books on green marketing began to be published thereafter. According to the Joel makeover (a writer, speaker and strategist on clean technology and green marketing), green marketing faces a lot of challenges because of lack of standards and public consensus to what constitutes "Green". The green marketing has evolved over a period of time. According to Peattie (2001), the evolution of green marketing has three phases. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase was "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 was "Sustainable" green marketing. It came into prominence in the late 1990s and early 2000.
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Green Products and Its Characteristics

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. We can define green products by following measures: Products those are originally grown, Products those are recyclable, reusable and biodegradable, Products with natural ingredients, Products containing recycled contents, non-toxic chemical, Products contents under approved chemical, Products that do not harm or pollute the environment, Products that will not be tested on animals, Products that have eco-friendly packaging i.e. reusable, refillable containers etc.
Need Of Green Marketing: An Anthropological View

Issues like Global warming and depletion of ozone umbrella are the main for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigor and so would the corporate class. Financial gain and economic profit is the main aim of any corporate business. But harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green
Challenges of Green Marketing

Implementing Green marketing is not going to be an easy job. The firm has to face many problems while treading the way of Green marketing. Challenges which have to be faced are listed as under: Green marketing encourages green products/services, green technology, green power/energy; a lot of money has to be spent on R&D programmes. Thus practicing green marketing initially will be a costly affair. The customers may not believe in the firms strategy of Green marketing, the firm therefore should ensure that they convince the customer about their green
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product, this can be done by implementing Eco-labeling schemes. Ecolabeling schemes offer its approval to environmentally less harmless products have been very popular in Japan and Europe. In fact the first ecolabel programme was initiated by Germany in 1978. Initially the profits will be very low since renewable and recyclable products and green technologies are more expensive. Green marketing will be successful only in long run. Many customers may not be willing to pay a higher price for green products which may affect the sales of the company. The firm may give up on Green marketing concept or be forced to practice unfair means to cut cost to sustain in the competition and thus the entire idea of going green will be a farce. The firms practicing Green marketing have to strive hard in convincing the stakeholders and many a times there may be some who simply may not believe and co-operate.
Need for Standardization 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. There is no standardization to authenticate these claims. There is no standardization currently in place to certify a product as organic. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. A standard quality control board needs to be in place for such labeling and licensing. New Concept Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach the masses and that will take a lot of time and effort. By India's ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In those aspects the consumer is already aware and will be inclined to accept the green products. Patience and Perseverance The investors and corporate need to view the environment as a major long-term investment opportunity, the marketers need to look at the long-term benefits from
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this new green movement. It will require a lot of patience and no immediate results. Since it is a new concept and idea, it will have its own acceptance period. Avoiding Green Myopia The first rule of green marketing is focusing on customer benefits i.e. the primary reason why consumers buy certain products in the first place. Do this right, and motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the green products are priced very high then again it will lose its market acceptability.
Green Marketing Practices in India

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. Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 88 years pioneering a wide spectrum of quality paints. Kansai Nerolac has worked on removing hazardous heavy metals from their paints among this lead being the most prominent metal. Kansai Nerolac does not add any lead or other such heavy metals in its manufacturing process. Dell has been one of the vendors who focus on producing green IT products. They have a strategy called "Go green with Dell" to sell these products in the market. It also comes in an ecofriendly packaging with a system recycling kit bundled along. Talking about the green commitments of the company, Sameer Garde, Country GM, Dell India, says, "Dell is also actively pursuing green innovations that will be of value in 2009 from data-center efficiency to the use of eco-friendly materials for everything from chassis design to product packaging. Eco Hotels (Ecotels) is a certification system promoted by Hospitality Valuation Services (HVS) International. This system is based on 5 main criteria: environmental commitment, solid waste management, energy efficiency, water conservation, and employee education/community involvement. In India we have Eco-hotels like Orchid, Rodas, Raintree etc. believing and practicing green marketing. According to Harish Tiwari of Infinity Infomatic Pvt Ltd, a well known distributor, who says, "We don't find any difficulty in selling green products because the knowledge for these products has increased in us as well in customer. They are ready to pay higher for these products once they convinced." In May 2007, IBM launched Project Big Green to help clients around the world improve the
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efficiency of IT and better optimize their data center resources. IBM has software and services technologies to help businesses reduce data center energy consumption and cut energy costs by more than 40 percent. Introduction of CNG in Delhi New Delhi, the Capital of India, was being polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution. Gas Tech Electronic Products (Pvt) Ltd. has invented LPG Kit for motorcycles/scooters (4 stroke and 2 stroke).Can be fitted in 50 cc to 375 cc air cooled , single cylinder 2 stroke as well 4 stroke vehicles with cent % fuel efficiency, with clean exhaust and zero pollution. The following figure shows the amount of pollution caused by different types of vehicles in Delhi, of which maximum pollution is caused by two wheelers. 38% of particulate matter and 61% of hydrocarbons are released by two wheelers alone. Thus the use of LPG kit for motorcycles/scooters will reduce pollution to a great extent.
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GOLDEN RULES OF GREEN MARKETING

1. Know you're Customer : Make sure that the consumer is aware of and concerned about the issues that your product attempts to address, (Whirlpool learned the hard way that consumers wouldn't pay a premium for a CFC-free refrigerator because consumers dint know what CFCs were). 2. Educating your customers: Isn't just a matter of letting people know you're doing whatever you're doing to protect the environment, but also a matter of letting them know why it matters. Otherwise, for a significant portion of your target market, it's a case of "So what?" and your green marketing campaign goes nowhere. 3. Being Genuine & Transparent: It means that a) you are actually doing what you claim to be doing in your green marketing campaign. b) the rest of your business policies are consistent with whatever you are doing that's environmentally friendly. Both these conditions have to be met for your business to establish the kind of environmental credentials that will allow a green marketing campaign to succeed. 4. Reassure the Buyer: Consumers must be made to believe that the product performs the job it's supposed to do-they won't forego product quality in the name of the environment. 5. Consider Your Pricing: If you're charging a premium for your product-and many environmentally preferable products cost more due to economies of scale and use of higher-quality ingredients-make sure those consumers can afford the premium and feel it's worth it. 6. Giving your customers an opportunity to participate: It means personalizing the benefits of your environmentally friendly actions, normally through letting the customer take part in positive environmental action. 7. Thus leading brands should recognize that consumer expectations have changed: It is not enough for a company to green its products; consumers expect the products that they purchase pocket friendly and also to help reduce the environmental impact in their own lives too.
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GREEN MARKETING ADOPTS BY THE FARMS

Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption: 1. Opportunities - As demand changes, many firms see these changes as an opportunity to exploit and have a competitive advantage over firms marketing nonenvironmentally responsible alternatives. Some examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs are: McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. Tuna manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins. Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. 2. Government Pressure - As with all marketing related activities, governments want to "protect" consumer and society; this protection has significant green marketing implications. Government regulations relating to environmental marketing are designed to protect consumers in several ways: a. Reduce production of harmful goods or by-products Modify consumer and industry's use and/or consumption of harmful goods b. Ensure that all types of consumers have the ability to evaluate the environmental composition of goods.Government establish regulations designed to control the amount of hazardous wastes produced by firms. 3. Competitive Pressure - Another major force in the environmental marketing area has been firms' desire to maintain their competitive position. In many cases firms observe competitors promoting their environmental behaviors and attempt to emulate this behavior. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior. For example when one tuna manufacture stopped using driftnets the others followed suit. 4. Social Responsibility - Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. This translates into firms that believe they must achieve
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environmental objectives as well as profit related objectives. This results in environmental issues being integrated into the firm's corporate culture. There are examples of firms adopting both strategies. An example of a firm that does not promote its environmental initiative is CocaCola. They have invested large sums of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact. While being concerned about the environment, Coke has not used this concern as a marketing tool. Thus many consumers may not realize that Coke is a very environmentally committed organization. Another firm who is very environmentally responsible but does not promote this fact, at least outside the organization, is Walt Disney World (WDW). WDW has an extensive waste management program and infrastructure in place, yet these facilities are not highlighted in their general tourist promotional activities. 5. Cost of Profit Issues - Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of environmentally harmful byproducts, such as polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases difficult. Therefore firms that can reduce harmful wastes may incur substantial cost savings. When attempting to minimize waste, firms are often forced to re-examine their production processes. In these cases they often develop more effective production processes that not only reduce waste, but reduce the need for some raw materials. This serves as a double cost savings, since both waste and raw material are reduced. In other cases firms attempt to find end - of - pipe solutions, instead of minimizing waste. In these situations firms try to find markets or uses for their waste materials, where one firm's waste becomes another firm's input of production. One Australian example of this is a firm who produces acidic waste water as a by-product of production and sells it to a firm involved in neutralizing base materials.
SOME CASES
Interestingly, green marketing continues to be an issue of 5 global interest. In fact, Google Trends reports that, on a relative basis, more searches for green marketing originated from India than from any other country.
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[Type the document title] Rank Country 1. India 2. UK 3. US 4. Thailand 5. Australia 6. Canada 7. China Many companies are adopting green for capturing market opportunity of green marketing some cases:
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EXAMPLE 1 : Best Green IT Project: State Bank of India: Green IT@SBI By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set the right example for others to follow. SBI is also entered into green service known as Green Channel Counter. SBI is providing many services like; paper less banking, no deposit slip, no withdrawal form, no checks, no money transactions form all these transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce emissions: The State Bank of India became the first Indian bank to harness wind energy through a 15-megawatt wind farm developed by Suzlon Energy. The wind farm located in Coimbatore uses 10 Suzlon wind turbines, each with a capacity of 1.5 MW. The wind farm is spread across three states Tamil Nadu, with 4.5 MW of wind capacity; Maharashtra, with 9 MW; and Gujarat, with 1.5 MW. The wind project is the first step in the State Bank of India's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients. EXAMPLE 2 : Lead Free Paints from Kansai Nerolac Kansai Nerolac Paints Ltd. has always been committed to the welfare of society and environment and as a responsible corporate has always taken initiatives in the areas of health, education, community development and environment preservation. Kansai Nerolac has worked on removing hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can have adverse effects on humans. Lead in paints especially poses danger to human health where it can cause damage to Central Nervous System, kidney and reproductive system. Children are more prone to lead poisoning leading to lower intelligence levels and memory loss.
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EXAMPLE 3 : Indian Oil's Green Agenda Green Initiatives Indian Oil is fully geared to meet the target of reaching EURO-III compliant fuels to all parts of the country by the year 2010; major cities will upgrade to Euro-IV compliant fuels by that time. Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries; ongoing projects account for a further Rs. 5,000 crore. Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units are coming up at three more refineries. Diesel quality improvement facilities in place at all seven Indian Oil refineries, several more green fuel projects are under implementation or on the anvil. The R&D Centre of Indian Oil is engaged in the formulations of eco-friendly biodegradable lube formulations. The Centre has been certified under ISO-14000:1996 for environment management systems.
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.
EXAMPLE 4 : India's 1st Green Stadium The Thyagaraja Stadium stands tall in the quiet residential colony behind the Capital's famous INA Market. It was jointly dedicated by Union Sports Minister MS Gill and Chief Minister Sheila Dikshit on Friday. Dikshit said that the stadium is going to be the first green stadium in India, which has taken a series of steps to ensure energy conservation and this stadium has been constructed as per the green building concept with eco-friendly materials. EXAMPLE 5: Eco-friendly Rickshaws before CWG Chief minister Shiela Dikshit launched on Tuesday a battery operated rickshaw, Erick, sponsored by a cellular services provider, to promote eco-friendly transportation in the city ahead of the Commonwealth Games.
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EXAMPLE 6 : Wipro Green It. Wipro can do for you in your quest for a sustainable tomorrow - reduce costs, reduce your carbon footprints and become more efficient - all while saving the environment. Wipro's Green Machines (In India Only)Wipro Infotech was India's first company to launchenvironment friendly computer peripherals. For the Indian market, Wipro has launched a new range of desktops and laptops called Wipro Greenware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing ewaste in the environment. EXAMPLE 7 : Agartala to be India's first Green City Tripura Sunday announced plans 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 Ltd (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. TNGCL chairman Pabitra Kar told reporters. He said: The company will soon provide PNG connections to 10,000 new domestic consumers in the city and outskirts. Agartala will be the first city in India within the next three years to become a green city. EXAMPLE 8 : Going Green: Tata's new mantra The ideal global benchmark though is 1.5. Tata Motors is setting up an eco-friendly showroom using natural building material for its flooring and energy efficient lights. Tata Motors said the project is at a preliminary stage. The Indian Hotels Company, which runs the Taj chain, is in the process of creating eco rooms which will have energyefficient mini bars, organic bed linen and napkins made from recycled paper. But there won't be any carpets since chemicals are used to clean those. And when it comes to illumination, the rooms will have CFLs or LEDs. About 5% of the total rooms at a Taj hotel would sport a chic eco-room design. One of the most interesting innovations has come in the form of a biogas-based power plant at Taj Green Cove in Kovalam, which uses the waste generated at the hotel to meet its cooking requirements. Another eco-friendly consumer product that is in the works is Indica EV, an electric car that will run on polymer lithium ion batteries. Tata Motors plans to introduce the Indica EV in select European markets this year.
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Present Trends in Green Marketing in India

Organizations are Perceive Environmental marketing as an Opportunity to achieve its objectives. Firms have realized that consumers prefer products that do not harm the natural environment as also the human health. Firms marketing such green products are preferred over the others not doing so and thus develop a competitive advantage, simultaneously meeting their business objectives.Organizations believe they have a moral obligation to be more socially responsible. This is in keeping with the philosophy of CSR which has been successfully adopted by many business houses to improve their corporate image. Firms in this situation can take two approaches: Use the fact that they are environmentally responsible as a marketing tool. Become responsible without prompting this fact. Governmental Bodies are forcing Firms to Become More Responsible. In most cases the government forces the firm to adopt policy which protects the interests of the consumers. It does so in following ways: Reduce production of harmful goods or by products Modify consumer and industry's use and /or consumption of harmful goods; or Ensure that all types of consumers have the ability to evaluate the environmental composition of goods. Competitors' Environmental Activities Pressure Firms to change their Environmental Marketing Activities. In order to get even with competitors claim to being environmentally friendly, firms change over to green marketing. Result is green marketing percolates entire industry. Cost Factors Associated With Waste Disposal or Reductions in Material Usage Forces Firms to Modify their Behavior. With cost cutting becoming part of the strategy of the firms it adopts green marketing in relation to these activities. It may pursue these as follows: A Firm develops a technology for reducing waste and sells it to other firms. A waste recycling or removal industry develops.
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The Future of Green Marketing

There are many lessons to be learned to be learned to avoid green marketing myopia, the short version of all this is that effective green marketing requires applying good marketing principles to make green products desirable for consumers. The question that remains, however, is, what is green marketing's future? Business scholars have viewed it as a fringe topic, given that environmentalism's acceptance of limits and conservation does not mesh well with marketing's traditional axioms of give customer what they want and sell as much as you can.Evidence indicates that successful green products have avoided green marketing myopia by Following three important principles: CONSUMER VALUE POSITIONING Design environmental products to perform as well as (or better than) alternatives. Promote and deliver the consumer desired value of environmental products and target relevant consumer market segments. Broaden mainstream appeal by bundling consumer desired value into environmental products. CALIBRATION OF CONSUMER KNOWLEDGE Educate consumers with marketing messages that connect environmental attributes with desired consumer value. Frame environmental product attributes as solutions for consumer needs. Create engaging and educational internet sites about environmental products desired consumer value. CREDIBILITY OF PRODUCT CLAIM Employ environmental product and consumer benefit claims that are specific and meaningful. Procure product endorsements or eco-certifications from trustworthy third parties and educate consumers about the meaning behind those endorsements and ecocertifications.
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Chapter 2
Review of literature
Unruh, G. And Ettenson, R. (2010) Three smart paths to developing sustainable products.Published in Havard Business Review, is for executives who believe that developing green products make sense for their organisation and need to determine the best path forward. These strategies emerged from 10 in depth case studies of consumer product and industrial companies that were moving into green space; the authors discussed with dozens of senior and midlevel sustainability executives. The framework now plays a central role in the core executive MBA course offerings in sustainable business strategy and in the executive education programs at Thunderbird School of Management. Thus from the above review of literature one can say that Green Marketing is gaining momentum very rapidly. Dutta, B. (2009, January) The New Imperative published in Marketing Mastermind states that Green Marketing involves developing good quality products which can meet consumer needs and wants by focusing on the quality, performance, pricing and convenience in an environment-friendly way. It has gained momentum in the context of global warming and climate change and this, in turn, has forced many companies to incorporate the principals of Green Marketing. Firms need to explore every opportunity to enhance their products/services in terms of quality, performance, social responsibility and environment-friendliness. Barkar is of the view that, Companies need to believe first that Green Marketing can work and make diligent efforts to make necessary product improvements, which deliver performance, and are marketable and profitable. Brahma, M. & Dande, R. (2008), The Economic Times Green Ventures India is a subsidiary of New York based asset management firm Green Ventures International. The latter recently announced a $300 million India focused fund aimed at renewable energy products and supporting trading in carbon credits. Founder & CEO of Emergent Ventures India (EVI) Vinod Kala says he realised in 2004 that there is huge business potential in environment. He further adds that financial investors are increasingly looking at Green Technology as profit opportunity than only a morally right thing to do, but there are dozens of
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entrepreneurs who have found that the capital expenditure involved in such projects are overwhelming and funds too hesitant to invest in them. The US and the EU have asked both India and China to reduce their baseline emissions, which should get implemented by 2020. Mr. Bharathwaj says that once that happens and the Government adopts more stringent policies for curbing carbon emissions, Clean Technology ventures would assume greater importance in the country and as a result there would be more investment interest within the sector. Polonsky and Alma (2008) The role of marketing in improving our environment. The book states that role of Marketing in the development process is well recognized (Kinsley 1982; Riley et al. 1983; Dholakia 1984; Carter 1986; Kotler 1986). Much of the economic activity is triggered by the marketing process that offers and stimulates consumption opportunities to satisfy human needs and wants. However, critical role of marketing in development will be appreciated only through sustainable marketing; it meets the needs of the present without compromising the ability of future generations to meet their own needs. This means that it might have to shed its present profligacy that encourages an unsustainable development path. A marketing approach that aims at serving the material wants of consumers through an ever increasing volume of goods without any attempt to maximize life quality (Kotler 1988), draws too heavily, and too quickly, on already overdrawn environmental resources and is likely to mortgage the future. Life quality represents not only the quantity and quality of consumption goods and services but also the quality of the environment. Clearly, marketing has to assume a more responsible role for sustainable development. It further states that the concept of a socio- ecological product has to extend our understanding that environmental consequences (the products aggregate impact on everyone affected by its use) are more important determinants of its acceptability than either user satisfaction or corporate profitability (Cracco and Rostenne1971). The true socio-ecological product is one that becomes a consumers first choice, since it meets his/her consumption need for a healthy and sustainable physical environment. Sustainable development can be achieved only by proactive corporate marketing and active government intervention. Chaudhary, R., And Bhattacharya, V. (2007) Strategy for Sustainability and Economic Growth published in Indian Journal for Environmental Protection, state that, The Clean Development Mechanism (CDM), a co-operative mechanism established under the Kyoto protocol, has the potential to assist developing countries in achieving sustainable development by
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promoting environment friendly investment from industrialised country governments and businesses. The funding channeled through the CDM should assist developing countries in reaching some of their economic, social, environmental, and sustainable development objectives, such as cleaner air and water, improved land use, accompanied by social benefits, such as rural development, employment, and poverty alleviation and in many cases, reduced dependence on imported fossil fuels. Thus environment friendly strategies become the key factors for CDM projects. Uberoi, (2007) The Government at the centre and at the State level and their agencies should become proactive vis--vis environment. The environmental problems cannot be tackled without a sound proactive policy by the Government. Intervention of the Government is required on continuing basis and not on one-time legislation and its implementation. Corporate behavior can be regulated or altered through statepolicies. The policies of Government can shape the role of companies and that of the managers for the larger interest of society. The corporate world in India, under new economic order of liberalization and globalization has to increase its share of world trade and in this effort one major impact of rising trades would be on environment and resources. The business world internationally has begun to acknowledge that environment is playing an important role in all facets of business. A survey by Mckinsey and company revealed that: (1) 92% of CEOs believe that environment should be top management priority; (2) 35% CEOs believe that their companies have adopted strategies to anticipate impacts of environment on business. Ginsberg, J.M. & Bloom, P.N. (2004) Green marketing has not lived up to the hopes and dreams of many managers and activists. Although public opinion polls consistently show that consumers would prefer to choose a green product over one that is less friendly to the environment when all other things are equal, those "other things" are rarely equal in the minds of consumers. How then, should companies handle the dilemmas associated with green marketing? They must always keep in mind that consumers are unlikely to compromise on traditional product attributes, such as convenience, availability, price, quality and performance. Its even more important to realize, however, that there is no single green-marketing strategy that is right for every company. It is suggested that companies should follow one of four strategies, depending on market and competitive conditions, from the relatively passive and silent "lean green" approach to the more aggressive and visible "extreme green" approach - with "defensive green" and "shaded green" in between. Managers who understand these
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strategies and the underlying reasoning behind them will be better prepared to help their companies benefit from an environmentally friendly approach to marketing. Oyewole, P. (2001) Social Costs of Environmental Justice Associated with the Practice of Green Marketing. This paper presents a conceptual link among green marketing, environmental justice, and industrial ecology. It argues for greater awareness of environmental justice in the practice for green marketing. In contrast with the type of costs commonly discussed in the literature, the paper identified another type of costs, termed 'costs with positive results,' that may be associated with the presence of environmental justice in green marketing. A research agenda is finally suggested to determine consumers' awareness of environmental justice, and their willingness to bear the costs associated with it. Merilnen, S., Moisander, J. & Personen, S. (2000) Environmental management systems and green marketing programmes have gained increasing popularity in western market economies. They are viewed as costefficient, effective and just means of tackling problems associated with the impact of economic activity on the environment. It is argued in this article, however, that these optimistic views are based on a number of ideas, images and metaphors that retain many androcentric and inadequate assumptions about self, society and nature that may be incompatible with long-term environmental protection goals. Prothero, A. & Fitchett, J.A. (2000) In this paper, the authors argue that greater ecological enlightenment can be secured through capitalism by using the characteristics of commodity culture to further progress environmental goals. The authors reject both naive ecological romanticism and revolutionary idealism on the grounds that they fail to offer any pragmatic basis by which greater environmental responsibility can be achieved. Drawing on the now well-established theoretical tradition of post-Marxist cultural criticism, the authors offer a conceptual justification for the development and implementation of a green commodity discourse. For this to be achieved and implemented, prevailing paradigms regarding the structure, nature, and characteristics of capitalism must be revised. Marketing not only has the potential to contribute to the establishment of more sustainable forms of society but, as a principle agent in the operation and proliferation of commodity discourse, also has a considerable responsibility to do so.
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Crane, A. (2000) This paper discusses green marketing strategies in the context faced by businesses in the middle to late 1990s. The literature suggests that this context has been characterized by a consumer backlash against green marketing, which has been created by perceived problems in the areas of green product performance and green claims in the late 1980s and early 1990s. Evidence is reported from a qualitative study which investigated corporate perceptions of this context and revealed the strategic orientations which have subsequently been employed by green marketers. The findings suggest that managers do indeed perceive the backlash to have occurred and to have been caused by the factors posited. It is argued that these understandings have assumed the role of myths in shaping organizational perceptions of the green marketing context. Four subsequent strategic routes are identified in the paper, namely passive greening, muted greening, niche greening and collaborative greening. These are described in some detail and managers justifications for them are presented. It is shown that each of these strategies might be appropriate for particular situations in the context of the backlash and some of the limitations of the green marketing literature in this respect are highlighted. Finally, some discussion is provided regarding the appropriateness of these strategies in the future and potential avenues for further research are identified. Prothero, A. (1998) The author introduces several papers discussed in the July 1998 issue of 'Journal of Marketing Management' focusing on green marketing. This includes; a citation of the need to review existing literature on green marketing, an empirical study of United States and Australian marketing managers, a description of what a green alliance look like in practice in Great Britain, ecotourism and definitions of green marketing. Kilbourne, W.E. & Beckman, S.C. (1998) This paper provides a review and categorization of the environmentally related research published in the major English language marketing journals over the period from 1971 to 1997. It traces the development from the early research which focused predominantly on the characterization of the "green" consumer, conceptualization of environmental consciousness, environmentally related behaviours such as recycling, and attitudes towards environmental problems such as pollution. This was followed by a period in which energy conservation, legislation, and public policy issues were added to the agenda which remained predominantly managerialist in perspective. While the same issues were studied within the 1990s, the research agenda was expanded again to include broader issues such as environmental values and
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institutions. Most recently, the macro issues of sustainable marketing and its relationship to the dominant social paradigm have been introduced into the literature. The paper concludes by arguing that the examination of the macro issues from an interdisciplinary perspective is necessary for further development of marketing thought in this area, and that a synthesis of the macro and micro perspectives is necessary for effective and enduring public policy regarding the marketing/environmental relationship. Walker, R.H. & Hanson, D.J. (1998) This paper highlights and discusses green/environmental implications and imperatives associated with destination marketing as distinct from those related to product and services marketing. A comparative taxonomy has been developed to illustrate these, and to provide a framework for discussing their relevance, with reference to the particular case of Tasmania as a tourism destination. Kilbourne, W.E. (1998) The author discusses the failure of green marketing to move beyond the limitations of the prevailing paradigm. While there are nascent macro developments in marketing thought that might lead to a truly green marketing considering sustainability, holistic thought, and the limitations of the prevailing paradigm, they remain thus far on the periphery of the discipline. This will remain so until a broader, multi-disciplinary approach incorporating the multiple dimensions of the DSP is developed. The author identifies areas that must be examined for their effect in the marketing/environment relationship, namely economic, political and technological dimensions of the cultural frame of reference.
Fisk, G. (1998) The effectiveness of "reward and reinforcement" strategy used in marketing activity is compared to a strategy of "mutual coercion mutually agreed upon" as a means for accelerating acceptance of environmentally appropriate production and consumption technologies. The risk and reward consequences of green marketing tactics are traced to identify their implications in pursuing globally sustainable development. Together, reward and reinforcement strategies and coercive regulatory activities are more promising for attaining sustainable development than either one alone.
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Grove, S.J. & Fisk, R.P. (1996) The authors attempted to bring attention to the general and pervasive exclusion of service industries from discussions of green marketing practices. They explore why circumstance may exist, and provided arguments to support the adoption of environmental practices by services providers. Also in trying to identify how the service sector can contribute to the preservation of the environment, a greening of services matrix was presented. This matrix was designed to demonstrate through hypothetical examples the many ways that service industries can reduce, reuse or recycle resources, either collectively or individually, and thereby embrace the green initiative. Finally, the authors submitted a total quality/ benchmarking approach as a means by which services organizations may adopt environmental practices.
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Chapter 3
Objectives of the Study
To investigate whether eco-labeling gives a competitive edge to the manufacturers. To find out whether the small and medium scale manufacturers are aware of green marketing and eco-labels. To identify the reasons for obstructing the practice of green marketing in case of small and large scale manufacturers. To suggest the measures to enhance the practice of green marketing.
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Chapter 4
Research Methodology
RESEARCH DESIGN In my project I will use various tools of Descriptive Research. This research will be done to gain background information of the problem. An initial research will be conducted to clarify and define the nature of the problem. The various tools used are experience surveys, in depth interviews, secondary data analysis. Descriptive research was done where questionnaires were given to small and medium manufacturers to find out the feasibility of Green Marketing.
Data Source Primary data sources- Questionnaires Secondary data sources- Research papers, News papers and Magazine articles, Journals , Taped Interviews, reference books , Online Web pages Study area Sample size Ludhiana 50 Small scale manufacturers; 50 Medium scale manufacturers. Sampling method Research instrument Random sampling Questionnaire
SAMPLING METHODOLOGY Sample size The numbers small and medium manufacturers decided on the basis of different types of manufacturing. Sample size of 100 was taken for the research. There was also some limitation to take such small sample size. Lake of time is the main limitation to tale such small sample size.
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Chapter 5
Questionnaire
Sir/Madam, I am student at PCTE, Baddowal. I am conducting a study on Opportunities and Challenges of Green Marketing in Small and Medium Manufactures. This questionnaire is part of this study, therefore we hereby request you to contribute your valuable opinion. This is only for academic purpose and your information will be kept confidential.
1. 2. 3.
Name of Firm/Company - _________________________ Name of Person - ________________________________ Total investment on fixed assets
25 lakhs- 1 crore 5 crores- 10 crores 1 crore- 5 crores 10 crores- 25 crores
4.
a) b) c) d) e) f) g)
Which category of product you manufacture? Garments Plastics products Stationary and Cards Cosmetics Electronics Food products If other, please mention Which type of product you manufacture? Standard Branded Do you believe in adopting eco-friendly practices? Strongly Agree Agree Neutral disagree Strongly disagree ____________________
5.
a) b)
6.
7.
a) b)
Do you manufacture green product? Yes No
(NOTE: If yes then go to Q. No. 8 and if No then go to Q. No. 10) [Type text] Page 27

8.
a) b) c) d) e) f) How do you think would you help the environment by following green product? Using pollution preventive equipments Harmless raw material Using green ingredients Recycle the product Eco-friendly packaging If other, please mention _____________________________
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9.
a) b) c) d) e)
In your opinion how is green marketing more effective than regular marketing? Minimum impact on natural environment Result in superior quality Earns consumer trust Longer impact on consumer memory If other, please mention _________________
10.
If your products are not eco-friendly then are you planning to go for green product? Yes May be Neutral May not be No
11.
a) b) c)
Are you aware of Eco-labeling? Yes No Cant say
12.
Are you planning to get Eco-labeling? Yes May be Neutral May not be No
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13.
a) Do you believe Eco-labeling will give you competitive edge? Yes b) No
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If yes then why? Earns consumer trust Superior quality Promotion of the brand If any other, please
If no then why? Costly Less suppliers Selective consumers If any other, please
mention_____________________
mention_____________
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Chapter 5
Analysis & data Interpretation
3. Total investment on fixed assets
Figure 1.1
26%
36%
25 lakh- 1 crore 1 crore- 5 crores 5 crores- 10 crores
24%
14%
10 crores- 25 crores
Interpretation36% manufactures were between 25 lakh- 1 crore 14% manufactures were between 1 crore- 5 crores 24% manufactures were between 5 crores- 10 crores 26% manufactures were between 10 crores- 25 crores
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4. Categories of product
Figure 1.2
18 16 No. of respondents 14 12 10 8 6 4 2 0 Products Garments Plastics products Stationary and Cards Cosmetics Electronics Food products Others
Interpretation36% manufactures were from Garments 6% manufactures were Plastics Products 10% manufactures were Stationary and Cards 8%manufactures were Cosmetics 16% manufactures were Electronics 20% manufactures were Food Products 4% manufactures were Others.
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5. Type of product-
Figure 1.3
36% Standard 64% Branded
Interpretation36% manufactures` products were Standard 64% manufactures` products were Branded
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6. Believe in adopting eco-friendly practices-
Figure 1.4
0% 12% 36% 24% Strongly agreed Agree Neutral Disagree 28% Strongly Disagree
Interpretation36% manufactures strongly agreed in adopting eco-friendly practices 28% manufactures agreed in adopting eco-friendly practices 24% manufactures in adopting eco-friendly practices 12% manufactures disagree in adopting eco-friendly practices 0% manufactures strongly disagree in adopting eco-friendly practices
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7. Green Product Manufacturers Figure 1.5
36% Yes 64% No
Interpretation64% manufacturers had green product. 36% manufacturers had green product.
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8. Help the environment by
Figure 1.6
3% 3% 0% 9% 13% Using pollution preventive equipments Harmless raw material Using green ingredients Recycle the product Eco-friendly packaging 72% others
Interpretation13% manufacturers are using pollution preventive equipments 72% manufacturers are using harmless raw material 9% manufacturers are using green ingredients 3% manufacturers are recycling the product 3% manufacturers are using eco-friendly packaging 0% manufacturers are in others.
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9. More effective than regular marketing Figure 1.7

3% 0% 10% 6% Minimum impact on natural environment Result in superior quality Earns consumer trust Longer impact on consumer memory 81% Others
Interpretation81% manufactures believed that green marketing minimum impact on natural environment 6% manufactures believed that green marketing increases the quality 10% manufactures believed that green marketing earns consumer trust 3% manufactures believed that green marketing has loger impact on consumer 0% manufactures were in others
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10. Planning to go for green product Figure 1.8

11% 11% 34% Yes May be Neutral Maynot be 33% No 11%
Interpretation34% manufactures were planning for green product 11% manufactures were confused for green product 33% manufactures gave neutral reaction for green product 11% manufactures were not planning for green product 11% manufactures definitely were not planning for green product
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11. Aware about Eco-labeling Figure 1.9
26% 42% Yes No Can`t say
32%
Interpretation42% manufacturers had aware about eco-labeling 32% manufacturers had aware about eco-labeling 26% manufacturers had not say anything about eco-labeling
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12. Planning to get eco-labeling Figure 1.10

7% 14% 41% Yes May be Neutral 21% Maynot be No 17%
Interpretation41% manufacturers were planning to get eco-labeling 17% manufacturers might be plan to get eco-labeling 21% manufacturers were neutral to get eco-labeling 14% manufacturers might not be plan to get eco-labeling 7% manufacturers were not planning to get eco-labeling
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13 Eco-labeling gives competitive edge

-Yes
Figure 1.11
9%
Earns consumer trust 27% 55% Superior quality Promotion of the Brand Others 9%
Reference
Books
Allaby, M. (1990). Green Facts: The Greenhouse Effects & Other Key Issues. London: Reed International Books Ltd. International Energy Agency. (2006). World Energy Outlook. Paris: OCED. Pandey, N.G. (2007). Environmental Management. New Delhi: Vikas Publishing House Pvt Ltd. Panneerselvam, R. (2006). Research Methodology. New Delhi: Prentice Hall India Publishing. Polonsky, Jay. Michael, and T, Alma. (Eds). (2008). Ecological Imperatives and the Role of Marketing by Sheth, N. Jagdish., Parvatiyar, Atul. Environmental Marketing. New York: Haworth Press. Uberio, K. N. (2007) Environmental management. New Delhi: Excel Books.
Journals
Chaudhary, R. And Bhattacharya, V. (2006, November), Clean Development Mechanism:
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Strategy for Sustainability and Economic Growth. Indian Journal for Environmental Protection. Vol. 27(10). Pg 919-922. Lyytimaki, J. And Tapoi, P. (2009, December), Climate change as reported in the press of Finland: From screaming headlines to penetrating background noise. International Journal of Environmental Studies. Vol. 66(6). Pg 723-735. Rana, Z. (2010, February). Challenge to Business Changes in Indias Marketing Environment. Indian Journal of Marketing, Vol.40 (2). New Delhi. Sharma, A., & Joshi, G. (2006, March). Environmental Issues of India. Indian Journal of Environment Protection. Vol 26(3). Pg 263-267. Shah, Praneti. (2010, February). Awareness & Preference towards Carbon Credits An Initiative to go for Green .Prabandhan: Indian Journal of Management, Vol. 3(2). New Delhi.
Research Papers
Murari, K. (2010, April). Coping with Climate Change. Yojana, Publications Division. New Delhi. Shahu, K. (2010, March). Emotional Marketing Capturing the Customers Heart. Marketing Mastermind. IUP Publications. Hyderabad. Unruh, G. And Ettenson, R. (2010, June). Growing Green; Three smart paths to developing sustainable products. Harvard Business Review. Vol. 5(6). Boston.
Websites
http://www.skirec.com www.greenmarketing.net/stratergic.html
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