TABLE OF CONTENT

Serial No. Topic Page No.

1 Acknowledgement 1

2 1.Chapter 1: Introduction 2

3 Brief Description 3

4 Need of the Project 4-9

5 Literature Review 10-12

6 Objective of Study 13

7 Research Methodology 14

8 2.Chapter 2: National and International

scenario

15-16

9 3.Chapter 3: Presentation, Analysis and

Findings

17-19

10 4.Chapter 4: Conclusion and

recommendation

20-21

11 Bibliography 22

12 Annexure 23-24

ACKNOWLEDGEMENT

We are immensely overjoyed to acknowledge our

sincere thanks to my faculty guide Prof. Bipin

Choudhury, for providing necessary guidance during

our project.

We would also like to thank him for his invaluable

advice and inputs throughout the duration of the

project. He ensured that we were always at ease with

what we were doing and constantly provided me with

the macro perspective to any issues that we faced so

that we was able to move in the right direction.

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1. CHAPTER 1: INTRODUCTION

In today's business world environmental issues

plays an important role in marketing. All most all

the governments around the world have concerned

about green marketing activities that they have

attempted to regulate them. There has been little

attempt to academically examine environmental or

green marketing. It introduces the terms and

concepts of green marketing, briefly discuss why

going green is important and also examine some of

the reason that organizations are adopting a green

marketing philosophy.

It also focuses some of the problems with green

marketing. It also discusses the keys to green

marketing and how firma are using green marketing.

This report also stresses upon the effect of green

marketing on the consumers. Green marketing isn't

just a catchphrase; it's a marketing strategy that can

help you get more customers and make more money.

But only if you do it right.

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BRIEF DESCRIPTION

According to the American Marketing Association,

Green Marketing is the marketing of products that

are presumed to be environmentally safe. Thus

green marketing incorporates broad range of

activities, including

• Product modification,

• Changes to the production process,

• Packaging changes, as well as

• Modifying advertising.

Green Marketing refers to the process of selling

products and/or services based on their

environmental benefits. Such a product or service

may be environmentally friendly in it or produced

and/or packaged in an environmentally friendly way.

Green Marketing involves developing and promoting

products and services that satisfy customers want

and need for Quality, Performance, Affordable

Pricing and Convenience without having a

detrimental input on the environment.

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NEED OF GREEN MARKETING

Most of the companies are venturing into green

marketing because of the following reasons:

Issues like Global warming and depletion of ozone

umbrella are important for the healthy survival.

Every person rich or poor would be interested in

quality life with full of health and vigour and so

would the corporate class. 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 marketing

by the business class is still in the selfish

anthological perspective of long term sustainable

business and to please the consumer and obtain the

sanction license by the governing body. With the

proliferation of environmental stories in the press

and broadcast media, individuals (whether as a

consumer or acting for a company), are more aware

of their personal responsibility to try to make a

difference. Appealing to this need can increase

response rates to marketing executions and build

brand loyalty.

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Green marketing is very low on the agenda of most

businesses and therefore its still an under-leveraged

USP (Unique Selling Proposition). Effective green

marketing targeted at the right audience will make a

difference. There are basically five reasons for which

a marketer should go for the adoption of green

marketing.

They are:

1. Opportunities or competitive advantage

As demands change, many firms see these changes

as an opportunity to be exploited and have a

competitive advantage over firms marketing non-

environmentally responsible alternatives. Some

examples of firms who have strived to come 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.

• The Surf Excel detergent which saves water

(advertised with the message—"do bucket paani roz

bachana).

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• The energy-saving LG consumer„s durables are

examples of green marketing.

• Xerox introduced a "high quality" recycled

photocopier paper in an attempt to satisfy the

demands of firms for less environmentally harmful

products.

2. Corporate 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 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.

**Organizations like the Body Shop heavily promote

the fact that they are environmentally responsible.

**Fund managers and corporate developers too, are

taking into account the environmental viability of the

company they invest in Venture Capitalists are

investing in green business because they believe it's

a growth opportunity.

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Britain based HSBC became the world's first bank to

go carbon neutral late last year and is now turning

its 11000 buildings in 76 countries worldwide into

models of energy efficiency.

**An example of a firm that does not promote its

environmental initiatives is Coca-Cola. They have

invested large sums of money in various recycling

activities, as well as having modified their packaging

to minimize its environmental impact.

**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.

3. Government Pressure

As with all marketing related activities, governments

want to "protect" consumers and society; this

protection has significant green marketing

implications. Governmental regulations relating to

environmental marketing are designed to protect

consumers in several ways.

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They want to reduce production of harmful goods or

by-products , modify consumer and industry's use

and/or consumption of harmful goods, ensure that

all types of consumers have the ability to evaluate

the environmental composition of goods.

Governments establish regulations designed to

control the amount of hazardous wastes produced

by firms. For example:

• The ban of plastic bags in Mumbai, prohibition of

smoking in public areas, etc.

• Directive to completely adopt CNG in all public

transport systems to curb pollution in New Delhi.

4. Competitive Pressure

Another major force in the environmental marketing

area has been firms' desire to maintain their

competitive position. For example, it could be argued

that Xerox's "Revive 100% Recycled paper" was

introduced a few years ago in an attempt to address

the introduction of recycled photocopier paper by

other manufacturers.

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5. Cost Or Profit Issues

Reduction of harmful waste may lead to substantial

cost savings. Sometimes, many firms develop

symbiotic relationship whereby the waste generated

by one company is used by another as a cost-

effective raw material.

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LITERATURE REVIEW

The concept of green marketing has evolved over the

years. There are basically three stages in which it

has evolved.

1. The decade of the late 1980s marked the first

stage of green marketing, when the concept of “green

marketing” was newly introduced and discussed in

industry (Peattie and Crane, 2005).

Owing to the upsurge of this new concept many

marketer tried to involve in green marketing in order

to generate positive consumer response which would

be converted into goodwill, market share and sales.

However in spite of reports stating that the

environmental problems constituted one of the

uppermost public concerns, market growth of these

products fell short of expectations.

2. The second stage started off as a consumer

backlash. Many organizations “green washed” the

consumers. In order to improve their sales, thus

creating cynical attitude of the consumers towards

the green concept.

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Some of the marketing practices which lead to the

failure of green marketing during this period are

(Peattie and Crane 2005):

a.Green spinning -> Taking a reactive stance of

“green”, if accused of malpractice

b.Green Selling -> taking an opportunistic approach

by adding some green claims to existing products

with an intention to boosts profits.

c.Green harvesting -> Becoming enthusiastic about

the environment only when greening would result in

cost savings.

d.Entrepreneur marketing -> Developing innovative

green products without actually considering

consumer needs.

e.Compliance marketing -> Just following the

environmental standards as an opportunity to

promote the company‟s green credentials rather than

actually being involved

3. The evolution of the third stage is just a response

to the anomalies occurring in the second stage.

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With the implementation of advanced technology,

stricter state enforcement on deceptive claims, govt.

regulations and incentives and closer scrutiny from

various environmental organizations and media

many green products have regained confidence in

the 2000‟s (Gurau and Ranchhod, 2005; Ottoman,

2007). With green and sustainable development as

the theme of 21st century development, two trends

have been predicted as inevitable in the near future

of green marketing. They are:

a)First the concept of an eco friendly approach of

doing business will be pushed into

mainstream(Hanas 2007)

b)Second, corporations from developed countries will

initiate international green marketing in order to

expand their market, increase their sales and take

advantage of the positive image of their green brands

established in their domestic markets (Gura˘u and

Ranchhod, 2005; Johri and Sahasakmontri, 1998;

Pugh and Fletcher, 2002).

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OBJECTIVE OF STUDY

• Eliminate the concept of waste

• Reinvent the concept of product

• Make prices reflect actual and environmental costs

• Make environmentalism profitable

• Bringing out product modifications

• Changing in production processes

• Packaging changes

• Modifying advertising.

>>Explore the various factors which influence the

green purchasing behavior of the Indian consumer.

>>Will advertising attitude and ad usage of a person

predict his green purchasing behavior?

>>Will his attitude towards private brands influence

his green purchasing behavior?

>>To give a segmented opinion of the green

purchasing behavior attitude based on their gender,

family type, education level etc.

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RESEARCH METHODOLOGY

I being the sole researcher of this project visited

college libraries, many book stores to collect and

gather required information‟s. I also took some

references from various sites in the internet. I did an

brief interview with an educated person to grant his

approach towards green marketing. My professors in

college also helped me with many information‟s that

I couldn‟t have gathered on my own.

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2. CHAPTER 2:

NATIONAL AND INTERNATIONAL SCENARIO

In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more for ecologically compatible products. By 1991, environmentally conscious individuals were willing to pay between 15-20 percent more for green products. Today, more than one-third of Americans say they would pay a

little extra for green products.

An important challenge facing marketers is to identify which consumers are willing to pay more for environmentally friendly products. It is apparent that an enhanced knowledge of the profile of this segment of consumers would be extremely useful.

Everett Rogers, communication scholar and author of “Diffusion of Innovations”, claims that the following five factors can help determine whether a new idea will be adopted or not, including the idealism of the shift towards “green”:

1. Relative advantage: is the degree to which the

new behavior is believed to accrue more beneficial outcomes than current practice.

2. Observability: is how easy it is to witness the outcomes of the new behavior.

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3. Trial ability: is the ease with which the new

behavior can be tested by an individual without making a full commitment.

4. Compatibility: is the degree to which the new behavior is consistent with current practice.

5. Complexity: is how difficult the new behavior is to implement.

GPNI is an evolving network of professionals

interested and active in the general area of sustainable consumption and production- more specifically: Green Purchasing and Public Procurement. It is currently a loose informal network of professionals primarily operating as an internet based electronic forum.

The objectives of the GPNI are:

1. To create awareness amongst Indian industry

and other stakeholders about Green Purchasing and Procurement (GPP).

2. To encourage and facilitate implementation of

GPP and Greening Supply Chains (GSC) projects to enhance the competitiveness of the Indian industries.

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3. CHAPTER 3:

PRESENTATION, ANALYSIS AND FINDINGS

GREEN MARKETING INITIATIVES

ITC: Green Campaign

• ITC has been 'Carbon Positive' three years in a row

(sequestering/storing twice the amount of CO2 than

the Company emits).

• Water Positive' six years in a row (creating three

times more Rainwater Harvesting potential than

ITC's net consumption).

• Close to 100% solid waste recycling.

• All Environment, Health and Safety Management

Systems in ITC conform to the best international

standards.

• ITC's businesses generate livelihoods for over 5

million people.

• ITC's globally recognized e-Choupal initiative is the

world's largest rural digital infrastructure benefiting

over 4 million farming families.

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• ITC's Social and Farm Forestry initiative has

greened over 80,000 hectares creating an estimated

35 million person days of employment among the

disadvantaged.

• ITC's Watershed Development Initiative brings

precious water to nearly 35,000 hectares of dry

lands and moisture-stressed areas.

• ITC's Sustainable Community Development

initiatives include women empowerment,

supplementary education, integrated animal

husbandry programmes. Maruti: Greening The

Supply Chain

• The company has remained ahead of regulatory

requirements in pursuit of environment protection

and energy conservation at its manufacturing

facilities, and in development of products that use

fewer natural resources and are environment

friendly.

• The company credited the 'Just-in-Time'

philosophy adopted and internalized by the

employees as the prime reason that helped to excel

in this direction.

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• The company has been promoting 3R since its

inception. As a result the company has not only

been able to recycle 100% of treated waste water but

also reduced fresh water consumption. The company

has implemented rain water harvesting to recharge

the aquifers. Also, recyclable packing for bought out

components is being actively promoted.

• The company has been facilitating implementation

of Environment Management System (EMS) at its

suppliers' end. Regular training programs are

conducted for all the suppliers on EMS. Surveys are

conducted to assess the vendors who need more

guidance. The systems and the environmental

performance of suppliers are audited.

• The green co-efficient of this system is much better

than the conventional system.

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4.CHAPTER 4:

CONCLUSION AND RECOMMENDATION

Many organizations want to turn green, as an

increasing number of consumers' want to associate

themselves with environmental-friendly products.

Alongside, one also witnesses confusion among the

consumers regarding the products. In particular,

one often finds distrust regarding the credibility of

green products. There are numerous challenges in

the field of green marketing. Some of the major

hurdles are as following:

1. Need For Standardization:

It is found that very less percentage 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

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2. 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 them asses and that will take a lot of

time and effort.

3. 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 this new green movement. It will

require a lot of patience and no immediate results.

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BIBLIOGRAPHY

The further information‟s stated in this project are

taken from some books, reports and some of the

websites named below :

(*)”Green Marketing: Challenges & Opportunities for

the New Marketing Age”

(*)The Real News About Green Consuming-

Jacquelyn Ottman.

(*)Green Sales Pitch Isn‟t Moving Many Products-

The Wall Street Journal

(*)Ecological Marketing-

Karl.E.Henion,Thomas.C.Kinnear.

(*)Green Trade & Development-Green Markets

International, Inc.

(*)http://adage.com/greenmarketing08/article?articl

e_id=127538

(*)http://marketinggreen.wordpress.com/

(*)http://www.climatechangecorp.com/content.asp?

ContentID=4867

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ANNEXURE

Choose Your Gender Male Female

Share Your Age

Marital Status Married Unmarried

Graduate Yes No

(1) Least

Important

(2)Somewhat

Important

(3)Moderately

Important

(4)Highly Important

Rate the parameters on the magnitude on which it affects your green purchasing

behavior

(1) (2) (3) (4)

My awareness of the environment affects my green

purchasing behavior

My education influences my green purchasing behavior

Current social trends affects my green purchasing behavior

How is cost involved in my green purchasing behavior

Somewhere I believe it‟s the fear of being out-dated that

affects me in green purchasing behavior

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I am not concerned about my green purchasing behavior

I think it‟s the responsible part of me that involves me in green

purchasing behavior

I usually purchase brand name products

Most advertising provides consumers with essential information

Most advertising makes false claims

Most advertising is intended to deceive rather than to inform

consumers

I often gather information from advertisements about products

before I buy

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