arihant green marketing

8/6/2019 Arihant Green Marketing

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The term Green Marketing came into prominence in the late 1980s and early 1990s.TheAmerican Marketing Association (AMA) held the first workshop on"EcologicalMarketing" in 1975. The proceedings of this workshop resulted in one of the first

bookson green marketing entitled "Ecological Marketing".The first wave of GreenMarketing occurred in the 1980s. Corporate SocialResponsibility (CSR) Reports

started with the ice cream seller Ben & Jerry's where thefinancial report wassupplemented by a greater view on the company's environmentalimpact. In 1987a document prepared by the World Commission on EnvironmentandDeve lopment de f ined sus ta inab le deve lopment a s mee t ing the needsof th e pr es en twithout compromising the ability of future generations to meettheir own need, thisbeca me know n a s t he Brun dt la nd Repo r t and wasano th er ste p tow ard s wid es pre ad thinking on sustainabili ty in everydayactivity. Two tangible milestones for wave 1 of green marketing came in theform of published books, both of which were called GreenMarketing. They were

by Ken Peattie (1992) in the United Kingdom and by Jac quelynOttman (1993) inthe United States of America.In the years after 2000 a second wave of Green marketing

emerged. By now CSR and theTriple Bottom Line (TBL) were widespread. Such publicationsas a 2005 United NationsRe po rt , th en in 20 06 a bo ok by Al Go re an d th e UKS t e r n Re p o r t b ro u g h t sc ie n t i f i c - environmental arguments to a wide public in aneasy to understand way. This knowledgeassessed the implications of moving to a low-carbonglobal economy and the potential of different approaches. This new wave of Green Marketingdiffered from the first wave inmany respects. It is curious to note that Green Marketing Wave1 followed an economicrecession, whereas Green Marketing Wave 2 came before the globalrecessions that cometo be known as the Credit Crunch. This difference may bes igni ficant in that it maysugges t tha t Gree n Mark et in g i s here to s tay . Theg r e e n m a r k e t i n g c o n c e p t d i c t a t e s , a m o n g s t o t h e r t h i n g s , l e s s u s e ,re cy cl in g an d av oi di ng wa st e, ju st so me of th e wa ys society reacts at times ofrecession. (see Bradley 2003 for 6 green marketing strategies).8

According to Jacquelyn Ottman, (author of Green Marketing: Opportunityfor Innovation) from an organizational standpoint, environmental considerations

should beintegrated into all aspects of marketing new productdeve lopment andcommunications and all points in between. The holistic nature of green

also suggests thatbesides suppliers and retailers new stakeholders be enlisted, includingeducators,members of the community , regulators, and NGOs.

E n vi ro n me nt a l i s s u es s h o u ld b e balanced with primary customer needsThe pastdecade has shown that harnessing consumer power to effect positiveenvironmental

c h a n g e i s f a r e a s i e r s a i d t h a n d o n e . T h e s o - c a l l e d " g r e e nco ns um er "movements in the U.S. and other countries have struggled to reachcr it ical mass and toremain in the forefront of shoppers' minds. While public opinion pollstaken since the late1980s have shown consistently that a significant percentage of consumersin the U.S. andelsewhere profess a strong willingness to favor environmentally conscious

products andcompanies, consumers' efforts to do so in real life have remained sketchy at best.One of green marketing's challenges is the lack of standards or public consensusabout whatconstitutes "green," according to Joel Makower, a writer on green marketing. Inessence,ther e i s no d ef in i t io n of "how goo d is g ood enou gh" w hen i tc o m e s t o a p r o d u c t o r c o m p a n y m a k i n g g r e e n m a r k e t i n g c l a i m s . T h i sl a c k o f co n s e n s us - - b y co n s u mer s ,marketers, activists, regulators, and influential

people -- has slowed the growth of greenproducts, says Makower, beca use companiesare often r elucta nt to promote their greenattributes, and consumers are often skeptical


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about claims.Despite these challenges, green marketing has continued to gain adherents, part icularlyin l ight of growing global concern about cl imate change. Thisc on c er n h as l ed mo re companies to advertise their commitment to reduce their climateimpacts, and the effectthis is having on their products and services9

A GREEN MARKET IN NEWCASTLEA GREEN MARKET IN NEWYORK10

A GREEN MARKET IN NEWCASTLEA GREEN MARKET IN NEWYORK10

WHAT IS GREEN MARKETING?

Unfortunately, a majority of people believe that green marketing refers solely tothepromotion or advertising of products with environmental characteristics. TermslikePhosphate Free, Recyclable, Refillable, Ozone Friendly, and EnvironmentallyFr iendlyare some of the things consumers most often associate with green marketing. Whiletheseterms are green marketing claims, in general green marketing is a much broaderconcept ,one that can be appl ied to consumer goods , indust r ia l goods ande ve n s e r v ic es . Fo r example, around the world there are resorts that are beginning to

promote themselves as"ecotourist" facilities, i.e., facilities that "specialize" in experiencingnature or operatingin a fashion that minimizes their environmental impact.Thus greenmarketing incorporates a broad range of activities, including productmodification, changesto the production process, packaging changes, as well asmodifying advertising. Yet

defining green marketing is not a simple task. Indeed theterminology used in thisarea has varied, it includes: Green Marketing, EnvironmentalMarketing andEcological Marketing. While green marketing came into prominence inth e la te1 9 8 0 s a n d e a r l y 1 9 9 0 s , i t w a s f i r s t d i s c u s s e d m u c h e a r l i e r . T h eAm er ic an Marketing Association (AMA) held the first workshop on "EcologicalMarke ting" in1975 . T he p roceed i ngs o f th i s wo rkshop resu l t ed in on e o f th e fi rs t bo ok s on gr ee nmarketing entitled "Ecological Marketing". Since thattime a number of othe r books onthe topic have been published.The AMA workshopattempted to bring together academics, practitioners, andpublic policy makers toexamine marketing's impact on the natural environment. At thisworkshop ecologicalmarketing was defined as:Th e st ud y of th e po si ti ve an d ne ga ti ve as pe ct s of

mar k e t in g ac t i v i t i e s o npollution, energy depletion and non-energy resourcedepletion.11

This early definition has three key components 1) It is a subset of the overall marketingactivity;2) It examines both the positive and negative activities; and3) A narrow range ofenvironmental issues are examined.While this definition is a useful starting

po in t , t o be co mp r eh e n s iv e g r ee n marketing needs to be more broadly defined.Before providing an alternative definition itshould be noted that no one definition orterminology has been universally accepted. Thislack of consisten cy is a large part ofthe problem, for how can any issue be evaluated if all researchers have adifferent perception of what they are researching. The followingdefinition ismuch broader than those of other researchers and it encompasses allmajor components of other definitions. The definition is Green or Environmental


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Marketing consists of all activities designed to generateand faci li ta te any exchangesintended to satisfy human needs or wants, such that thesatisfaction of these needsand wants occurs, with minimal detrimental impact on thenatural environment.Thisdefinition incorporates much of the traditional components of the marketingdef in i t io nt h a t i s " A l l a c t i v i t i e s d e s i g n e d t o g e n e r a t e a n d f a c i l i t a t e a n y

ex ch an ge sintended to satisfy human needs or wants". Therefore it ensures thatthe interests of theorganization and all its consumers are protected, as voluntaryexchange wil l not takeplac e unle ss both the buye r a nd se l l er mutu al ly

b e n e f i t . T h e a b o v e d e f i n i t i o n a l s o i n c l u d e s t h e p r o t e c t i o n o f t h e n a t u r a len vi ro nm en t, by at te mp ti ng to mi ni mi ze th edetrimental impact this exchangehas on the environment. This second point is important,for human consumption by its verynature is destructive to the natural environment. (Tobe accurate products making greenclaims should statethey are"less environmentallyharmful"rather than

"Environmentally Friendly.") Thus green marketing should look at minimizing environmental harm, not necessarilyeliminating it.12

WHAT ARE GREEN PRODUCTS OR ENVIRONMENTAL PRODUCTSAlthough no consumer product has a zero impact on the environment, in business,the te rmsgreen product and environmental product are used commonly todescribethose that strive to protect or enhance the natural environment byconserving energyand/or resources and reducing or eliminating use of toxic agents,

pollution, and waste.Greener, more sustainable products need to dramatically increase the productivityof natural resources, follow biological/ cyclical production models,

encouragedemater ia l iza t ion, and re inves t in and contr ibute to the p lanet sn at ur al ca pi ta l. Escalating energy prices, concerns over foreign oildependency, and calls for energyconservation are creating business op portunitiesfor energ y-e fficien t products, clean energy, and other environmentally sensitiveinnovations and products.ONE OF THE MOST COMMONLY USED GREEN PRODUCTS THE PHILIPS CFL13

WHY IS GREEN MARKETING IMPORTANT?The question of why green marketing has increased in importance is quite simpleand relies onthe basic definition of Economics:Economics is the study of how people use their limitedresources to try to satisfyunlimited wants.Thus mankind has limited resources on the earth,with which she/he must attemptto provide for the worlds' unlimited wants. In market societieswhere there is"freedomof choice", it has generally been accepted that individuals and organizations have theright to

attempt to have their wants satisfied. As firms face limited natural resources, theymustdevelop new or alternative ways of satisfying these unlimited wants.


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Ultimatelygreen marketing looks at how marketing activities utilize these limitedresources, whilesatisfying consumers wants, both of individuals and industry, aswell as achieving theselling organization's objectives.THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS14

WHY IS GREEN MARKETING IMPORTANT?The question of why green marketing has increased in importance is quite simpleand relies onthe basic definition of Economics:Economics is the study of how people use their limitedresources to try to satisfyunlimited wants.Thus mankind has limited resources on the earth,with which she/he must attemptto provide for the worlds' unlimited wants. In market societieswhere there is

"freedomof choice", it has generally been accepted that individuals and organizations have theright toattempt to have their wants satisfied. As firms face limited natural resources, theymustdevelop new or alternative ways of satisfying these unlimited wants.Ultimatelygreen marketing looks at how marketing activities utilize these limitedresources, whilesatisfying consumers wants, both of individuals and industry, aswell as achieving theselling organization's objectives.THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS14

BENEFITS OF GREEN MARKETING15

WHY ARE FIRMS USING GREEN MARKETING?When looking through the literature there are several suggested reasons for firmsincreaseduse of Green Marketing. Five possible reasons cited are:1. Organizations perceiveenvironmenta l mar keting to be an opportunity that can beused to achieve its

objectives;2. Organizations believe they have a moral obligation to be moresociallyresponsible;3. Governmental bodies are forcing firms to become more responsible;4.

Competitors' environmental activities pressure firms to changethei r environmental marketing activities; and5. Cost factors associated with waste disposal,

or reductions in material usage forcesfirms to modify their behavior.DELHIS FAMOUS CNG AUTORICKSHAWOPPORTUNITIESIt appears that all types of consumers, both individual and industrial are becomingm o r ec o n c e r n e d a n d a w a r e a b o u t t h e n a t u r a l e n v i r o n m e n t . I n a 1 9 9 2s t u d y o f 1 6 countries, more than 50% of consumers in each country, other thanSingapore, indicatedthey were concerned about the environment. A 1994 study in Australia

found that 84.6%


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of the sample believed all individuals had a responsibility to care for the environment.Afurther 80% of this sample indicated that they h ad modified their behavior,includingtheir purchasing behavior, due to environmental reason s. As demandschange, manyfirms see these changes as an opportunity to be exploited.Given thesefigures, it can be assumed that firms marketing goods withenvironmental

characteristics will have a competitive advantage over firms marketingnon-environmentally responsible alternatives. There are numerous example of firms whohavestrived to become more environmentally responsible, in an attempt to better satisfytheirconsumer needs.M c D o n a l d ' s r e p l a c e d i t s c l a m s h e l l p a c k a g i n g w i t h w a x e d p a p e r

because of increased consumer concern relating to polystyrene production andOzonedepletion.

Tuna manufacturers modified their fishing techniques because of theincreasedconcern over driftnet fishing, and the resulting death of dolphins.

Xerox introduced a "high quality" recycled photocopier paper in an a ttempttosatisfy the demands of firms for less environmentally harmful products.Th i s i s n o t toi m p l y t h a t a l l f i r m s w h o h a v e u n d e r t a k e n e n v i r o n m e n t a lmar k e t in g activities actually improve their behavior. In some cases firms have misledconsumers ina n a t t e m p t t o g a i n m a r k e t s h a r e . I n o t h e r c a s e s f i r m sh a v e j u m p e d o n t h e g r e e n b a n d wa g on wi t ho u t c o ns i de r in g t h eaccu racy of the i r be havi or , the i r c la im s, or t heeffect iveness of the ir

products. This lack of consideration of the true "greenness" of activities may resultin firms making false or misleading green marketing claims.SOCIAL RESPONSIBILITYM a n y f i r m s a r e b e g i n n i n g t o r e a l i z e t h a t t h e y a r e m e m b e r s o f t h e w i d e r community and therefore must behave in an environmentallyresponsible fashion. Thistranslates into firms that believe they must achieveenvironmental objectives as well asprofit related objectives. This results inenvironmental issues being integrated into thefirm's corporate culture. Firms in thissituation can take two perspectives;17

1) They can use the fact that they are environmentally responsible as a marketingtool; or 2)They can become responsible without promoting this fact.There are examples of firmsadopting both strategies. Organizations like the BodyShop heavily promote the fact that

they are environmentally responsible. While thisbe ha vi or is a co mp et it iv eadvan tag e , the f i rm was e s t ab l i she d spec i f i ca l ly to o f fe r consumersenvironmentally responsible alternatives to conventional cosmetic products.This

philosophy is directly tied to the overall corporate culture, rather than simply beingacompetitive tool.An example of a firm that does not promote its environmental initiatives isCoca-Cola. They have invested large sums of money in various recycling activities, as wellashaving modified their packaging to minimize its en vironmental impact. While

beingconcerned about the environment, Coke has not used this concern as amarketing tool.Thus many consumers may not realize that Coke is a veryenvironmenta lly committedorganization.Another firm who is very environmentallyresponsible but does not promote thisfact, at least outside the organization, is

Wa lt D is n ey Wo r ld ( WD W) . WD W h a s a nextensive waste management program


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and infrastructure in place, yet these facilities arenot highlighted in their general touristpromotional activities.SOME COMPANIES THAT USE GREEN MARKETING AS SOCIALRESPONSIBILITY.

GOVERNMENTAL PRESSUREAs with all marketing related activities, governments want to "protect" consumersand society;this protection has significant green marketing implications. Governmentalregulationsrelating to environmental marketing are designed to protect consumers inseveralways,1) Reduce production of harmful goods or by-products;2) Modify consumer andindustry's use and/or consumption of harmful goods; or 3) Ensure that all types ofconsumers have the ability to evaluate theenvironmental composition of

goods.Governments establish regulations des igned to control the amount ofhazardouswastes produced by firms. Many by-products of production are

controlled through theissuing of various environmental licenses, thus modifyingorganizational behavior. Insome cases governments try to "induce" finalconsumers to become more responsible.For example, some governments haveintroduced voluntary curb-side recyclingprograms, making it easier for consumers to act

responsibly. In other cases governmentstax individuals who act in an irresponsiblefashion. For example in Australia there is ahigher gas tax associated with leaded

pet rol .One of the more recent publ ic ized environmenta l regula t ionsu n d e r t a k e n b y g o v e r n m e n t s h a s b e e n t h e e s t a b l i s h m e n t o f g u i d e l i n e sd es i g n ed to " co n t r o l " g r e en marketing claims. These regulations include theAustralian Trade Practices Commission's(T PC) "E n vi ro n me nt a l C l a i ms i nMark et in g - A Gu idel ine , the US Fe dera l Tr ade Commiss ion' s (FTC)

"Guides for the Use of Environmental Marketing Claims" and theregulationssuggested by the National Association of Attorneys-General. Theseregulations are all

designed to ensure consumers have the appropriate information whichwo u ld en a b let h e m t o e v a l u a t e f i r m ' s e n v i r o n m e n t a l c l a i m s . I n a d d i t i o n t oth e s e guidelines many States in the US have introduced legislation to controlvar ious environmental marketing activities. In most cases these State laws are more stringentthanthe FTC's guidelines. To date the majority of prosecutions of firms usingmisleadinggreen marketing has occurred in State rather than Federal courts.19

Thus governmental attempts to protect consumers from false or misleading claimsshouldtheoretically provide consumers with the ability to make more informed decisions.InAustralia where regulations have affected many companies, one unintendedcasualtywas an advertisement for the Federal Government's environmentallabel ing program"Enviro nmen ta l Choi ce . " This ad wa s dee med to br eachth e TP C ' s g u id e l in e s , a s i t implied that only products with the logo wereenvironmentally responsible.COMPETITIVE PRESSUREAnother major force in the environmental marketing area has been firms' desire tomaintaintheir competitive position. In many cases firms observe competitors promotingthei renvironmental behaviors and attempt to emulate this behavior. In some

instancesthis competitive pressure has caused an entire indus try to modify andthus r educe i tsde t r imenta l env i ronmen ta l behav ior . For example , i t cou ld


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be argued that Xerox's"Revive 100% Recycled paper" was introduced a few years agoin an attempt to addressth e in tr od uc ti on of re cy cl ed ph ot oc op ie r pa pe r byo th e r ma n uf a c t u r e r s . I n an o t he r example when one tuna manufacture stopped usingdriftnets the others followed suit.COST OR PROFIT ISSUES

Firms may also use green marketing in an attempt to address cost or profit relatedissues.D i s p o s i n g o f e n v i r o n m e n t a l l y h a r m f u l b y - p r o d u c t s , s u c h a s

po ly ch lo ri na te dbiphenyl (PCB) contaminated oil are becoming increasinglycostly and in some casesdi f f ic ul t . Ther efor e f i rms that can redu ce harm fulwa s te s may i nc u r s ub s t an t i a l co s t savings. When attempting to minimize waste,firms are often forced to re-examine their p r od u c ti o n p r oc e s s es . I n th e s e ca s esthey of te n deve lop more ef fe c t iv e pro duct ionprocesses tha t not only reducewaste, but reduce the need for some raw materials. Thisserves as a double costsavings, since both waste and raw material are reduced.In other cases firms attempt to findend-of-pipe solutions, instead of minimizingwaste. In these situations firms try to findmarkets or uses for their waste materials, where20

one firm's waste becomes another firm's input of production. One Australian example of thisis a firm who produces acidic waste water as a by-product of production and sells itto a firminvolved in neutralizing base materials.The last way in which cost or profitis s u e s ma y a f fe ct f i rm s' e n v ir o nm e n t al marketing activities is that new industriesmay be developed. This can occur in two ways:1) A firm develops a technology for reducingwaste and sells it to other firms; or 2) A waste recycling or removal industry develops.Forexample, firms that clean the oil in large industrial condensers increase thelife ofthose condensers, removing the need for replacing the oil, as well as the needtodispose of the waste oil. This reduces operating costs for those owning thecondensersand generates revenue for those firms cleaning the oil.21

SOME PROBLEMS WITH GOING GREEN

No mat t e r why a f i rm uses g reen marke t ing the re a re a number o f po te nt ia lproblems that they must overcome. One of the main problems is that

fi rms us ing greenmarketing must ensure that their activities are not misleading toconsumers or industry,and do not breach any of the regulations or laws dealing withenvironmental marketing.For example marketers in the US must ensure their green marketingclaims can meet thefollowing set of criteria, in order to comply with the FTC's guidelines.Green marketingclaims must;Clearly state environmental benefits;Explain environmental characteristics;Explain how benefits are achieved;

Ensure comparative differences are justified;


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Ensure negative factors are taken into consideration; andOnly use meaningful terms and pictures.Another problem firms face is thattho se who mod if y t hei r pro du cts du e t oincreased consumer concern must

contend with the fact that consumers' perceptions aresometimes not correct. Takefor example the McDonald's case where it has replaced itsclam shells with

plastic coated paper. There is ongoing scientific debate which ismoreenvironmentally friendly. Some scientific evidence suggests that when taking a cradle-to-grave approach, polystyrene is less environmentally harmful. If this is thecaseMcDona ld ' s bowed to consumer p ressur e , ye t has chosen the more

e nv i ro n me n t a ll y harmful option.When firms attempt to become sociallyresponsible, the y may face the risk that the environmentally responsible action of todaywill be found to be harmful in the future.Take for example the aerosol industrywhich has switched from CFCs(chlorofluorocarbons) to HFCs

(hydrofluorocarbons) only to be told HFCs are also agreenhouse gas. Some firms

now use DME (dimethyl ether) as an aerosol propellant,which may also harm theozone layer. Given the limited scientific knowledge at any point22

i n t i m e , i t m a y b e i m p o s s i b l e f o r a f i r m t o b e c e r t a i n t h e y h a v em a d e t h e c o r r e c t environmental decision. This may explain why some firms,like Coca-Cola and WaltDisney World, are becoming socially responsiblewithout publicizing the point. Theymay be protecting themselves from potential futurenegative backlash; if it is determinedthey made the wrong decision in the past.Whilegovernmental regulation is designed to give consumers the opportunity tomake betterdecisions or to motivate them to be more environmentally responsible, therei s d i f f i cu l t yi n e s t a b l i s h i n g p o l i c i e s t h a t w i l l a d d r e s s a l l e n v i r o n m e n t a l i s s u e s .For example, guidelines developed to control environmental marketing addressonly a verynarrow set of issues, i.e., the truthfulness of environmentalmarket ing claims. If governments want to modify consumer behavior they need to

establish a different set of re gu la ti on s. Th us go ve rn me nt al at te mp ts to pr ot ec tth e en v i r o n men t ma y r e s u l t i n a proliferation of regulations and guidelines, with noone central controlling body.Reac ting to comp etit ive pressures can caus e all"fol lowers" to make the samemistake as the " leader." A cost ly example of thi s was the Mob il Cor po rat ion who followed the competi t ion and introduced"biodegradable" plastic garbage bags. Whiletec hn ic al ly th es e ba gs we re

bi od eg ra da bl e, th e co nd it io ns un de r wh ic h th ey we re disposed did not allow

biodegradation to occur. Mobil was sued by several US states for using misleadingadvertising claims. Thus blindly following the competition can havecostlyramifications.The push to reduce costs or inc rease profi ts may not force firms toaddress theimportant issue of environmental degradation. End-of-pipe solutionsmay not actuallyredu ce t he wa ste b ut r a the r sh i f t i t a ro und . Whi le th ismay be beneficial, i t does notnecessarily address the larger environmental

problem, though it may minimize its shortterm affects. Ultimately most wasteproduced will enter the waste stream, therefore to beenvironmentally responsibleorganizations should attempt to minimize their waste, rather than find "appropriate" uses forit.23

GREEN HOUSE GASES AND THEIR SOURCES24


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AN EXAMPLE OF GREEN MARKETING MYOPIAIn 1994, Philips launched the EarthLight, a super energy-efficientcompact fluorescent light (CFL) bulb designed to be an environmentally preferable substitutefor the traditional energy-intensive incandescent bulb. The CFLs clumsy shape,

however,was incompatible with most conventional lamps, and sales languished.After studyingconsumer response, Philips reintroduced the product in 2000 under the nameMarathon,to emphasize the bu lbs f ive year life. New desig ns offered the lookand versa ti li ty of con vent iona l in cand esce nt l i ght bulb s an d the prom iseo f mo r e t h an $ 2 0 in en e r gysavings over the products life span compared toincandescent bulbs.PHILIPS MARATHON BULBSThe new bulbs were also certified by the U.S. Environmental Protection Agencys(E PA)E n e r g y S t a r l a b e l . R e p o s i t i o n i n g C F L b u l b s f e a t u r e s i n t o a d v a n t a g e sth a t resonated with consumer valuesconvenience, ease-of-use, and credible cost

savings ultimately sparked an annual sales growth of 12 percent in a mature product

market .Phi l ips exper ience provides a valuable lesson on how to avoidth e co mm on pitfall of green marketing myopia. Philips called its originalentry Ear thLigh t tocommunicate the CFL bulbs environmental advantage. While noble,the benefit appealedto only the deepest green niche of consumers. The vast majority ofconsumers, however,will ask, If I use green products, whats in it for me? In practice,green appeals are notlikely to attract mainstream consumers unless they also offer a desirable

benefit, such asco st- sav ing s or imp ro ved pro du ct per for man ce. To av oidgreen marke t ing myopia ,26

m a r k e t e r s m u s t f u l f i l l c o n s u m e r n e e d s a n d i n t e r e s t s b e y o n dw h a t i s g o o d f o r t h e environment.Thus we see how green marketing myopiawas faced by the Phi lips while tryingto bring into market the environment friendly light

bulbs.27

WHAT IS GREEN MARKETING MYOPIAGreen marketing must satisfy two objectives: improved environmental quality andcustomersatisfaction. Misjudging either or overemphasizing the former at the expense of t h e l a t t e rc a n b e t e r m e dgreen marketing myopia. I n 1 9 6 0 , H a r v ar d b u s i n e s s professor Theodore Levi tt i nt roduced theconcept ofmarketing myopiai n a n o w - famous and influential article in theHarvard Business Review. In it, he characterized thecommon pitfall of companies tunnel vision, which focused onmanaging products (thatis, product features, functions, and efficient production) instead ofmeeting customersneeds (that is, adapting to consumer expectations and anticipation offuture desires).Levitt warned that a corpor ate p reoccupation on p roduc ts ra therthan consumer needs was doomed to failure because consumers select products and newinnovations thatoff er ben efi ts th ey des ire . R es ear ch ind ica tes tha t m an y

g r e e n p r o d u c t s h a v e f a i l e d b e c a u s e o f g r e e n m a r k e t i n gmyopiama rk et er s my op ic fo cu s on th ei r pr od uc ts greenness over the


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broader expectations of consumers or other market players (such asregulators oract ivists) .For example, part ial ly in response to the 1987 MontrealProtocol, in whichsignatory countries (including the United States) agreed to

phase out ozone depleting28

chlorofluorocarbons (CFCs) by 2000, Whirlpool (in 1994) launched the EnergyWiserefrigerator, the first CFC free cooler and one that was 30 percent more efficient thantheU.S. Department of Energys highest standard. For its innovation, Whirlpoolwon the Golden Car ro t , a $30 mi l l ion aw ard pack age o f consumer r eb a te s f r o m th e Su p e r - Efficient Refrigerator Program, sponsored by the NaturalResources Defense Council andfunded by elec tric uti liti es. Unfo rtunately, Ener gyWises sales languished because theCFC- fre e be nef i t an d ene rgy -s avi ngsdid not of fs e t i t s $10 0 t o $ 150 pr ic e p remi um,part icular ly in markets

outside the rebate program, and the refrige rators did not offer additional features ornew styles that consumers desired.General Motors (GM) and Ford encountered similarproblems when theylaunched their highly publicized EV-1 and Think Mobility electricvehicles, respectively,in the late 1990s to early 2000s in response to the 1990 zeroemission vehicle (ZEV)regulations adopted in California. Both automakers

believed their novel two-seater carswould be market successes (GM offered theEV-1 in a lease program, and Ford offeredThink Mobility vehicles as rentals via theHertz car-rental chain). Consumers, however,found elect ric vehicles need for constan trecharging with few recharging locations tooin co nv en ie nt . Cr it ic s ch ar ge dth at th e au to ma ke rs ma de on ly to ke n ef fo rt s to ma ke electric cars a success,

but a GM spokesperson recently explained, We spent more than$1 bi ll ion to produce and

market the vehicle, [but] fewer than 800 were leased. Mostdrivers were notwilling to drastically change their driving habits and expectations toaccommodateelectric cars, and the products ultimately were taken off the market.Aside from offeringenvironmental benefits that do not meet consumer preferences,

green mark eting myopia can also occur when green products fai l toprovide credible,substantive environmental benefits.29

Example MOBILS HEFTY PHOTODEGRADABLE PLASTICTRASH BAGSMobils Hefty photodegradable plastic trash bag is a case in point. Introduced in1989, Hefty

packages prominently displayed the term degradable with the explanationthat a sp ecia lingredient promoted its decomposition into harmless particles inlandf il ls ac t iva ted by exposure to the e l ement s such as sun , w in d , andr a i n . B e c a u s e m o s t g a r b a g e i s b u r i e d i n l a n d f i l l s t h a t a l l o w l i m i t e de xp o s u r e t o t h e e l e men t s , ma k in g degradation virtually impossible, the claimenraged environmentalists. Ultimately, sevenstate attorneys general sued Mobil oncharges of deceptive advert ising and consumer fraud. Mobil removed the claim fromits packaging and vowed to use extreme caution inmaking environmental claims in thefuture.It has been found that thetop reasons consumers do not buy green productsincluded beliefsthat they require sacrificesinconvenience, higher costs and lower performance

without significant environmental benefits. Ironically, despite whatconsumers think, aplethora of green products available in the marketplace are in factdesirable


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because they deliver convenience, lower operating costs, and/or better performance.Often these are not marketed along with their green benefits, so consumersdo n o ti m m e d i a t e l y r e c o g n i z e t h e m a s g r e e n a n d f o r m m i s p e r c e p t i o n s a b o u tt h e i r b e n e f i t s . W h e n c o n s u m e r s a r e c o n v i n c e d o f t h e d e s i r a b l e n o n -g r ee n b en e f i t s o f environmental products, they are more inclined to adopt them.Other

environmental products have also scored market successes by either servingprofitable nichemarkets or offering mainstream appeal.30

Example TOYOTA PRIUSConsider the Toyota Prius, the gas-electric hybrid vehicle that achieves about 44miles pe rgallon of gasoline. In recent years, Toyotas production has hardly kept pacewiththe growing demand, with buyers enduring long waits and paying thousands abovethe carssticker price. Consequently, other carmakers have scrambled to launch their ownhybrids.However, despite higher gas prices, analysts assert that it can take 5 to 20 yearsfor lower gasexpenses to offset many hybrid cars higher prices. Thus, economics alonecannot explaintheir growing popularity.Analys ts o ffer several reas ons for the Prius market

d eman d. Initially, the buzzo v e r t h e P r i u s g o t a b o o s t a t t h e 2 0 0 3A c a d e m y A w a r d s w h e n c e l e b r i t i e s s u c h a s Cameron Diaz, HarrisonFord, Susan Sarandon, an d Robin Wi lliams abando ned stretch limousines andoversized sport utility vehicles, arriving in Priuses to symbolize supportfor reducingAmericas dependence on foreign oil. Since then, the quirky-looking Priusbadge ofconspicuous conservation has satisfied many drivers desires to turn headsandmake a statement about their social responsibility, among them GooglefoundersL ar ry Pag e and Sergey Br in , co lu mnis t A r ianna Huf f ing ton ,c omi c B i l l M ah e r , a n dCharles, Prince of Wales. The Prius ultimately was namedMotor Trends Car of the Year in 2004. The trendy appeal of the Prius illustrates that some green productscan leverageconsumer des ires fo r being distinc tive. O thers say the P rius is just funto drivethedazzling digital dashboard that offers continuous feedback on fuel

efficiency and other car operations provides an en tertaining driving experience.More recent ly , however, thePrius has garnered fans for more practical reasons. A 2006Maritz Poll finds that ownerspurchased hybrids because of the convenience of fewer fill-ups,

better performance, andthe enjoyment of driving the latest technology. In some states, thePrius and other high-mileage hybrid vehicles, such as Hondas Insigh t, are grantedfree pa rking and solo-occupancy access to high occupancy vehicle (HOV) lanes. In sum,hybrid vehicles offer consumers several desirable benefits that are not necessarily green

benefits.31

TOYOTA PRIUSMany environmental products have become so common and widelydistributed that manyconsumers may no longer recognize them as green becausethey buy them for non-greenreasons.Green household products, for instance, arewidely available at supermarkets anddiscount retailers, ranging from energy-saving TideColdwater laundry deter gent to non-toxic Method and Simple Green cleaning products.Use of recycled or biodegradable

paper products (such as plates, towels, napkins, coffeefilters, computer paper,and othergoods) is also widespread. Organic and rainfores t-protective shade grown coffeesare available at Starbucks and other specialty stores andsupermarkets. Organic baby food

is expected to command 12 percent market share in20 06 as pa re nt s st ri ve top ro tec t the i r ch i ld ren s menta l and phys ica l deve lopmen t . Indeed , the


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organic food market segment has increased 20 percent annually since 1990,fivetimes faster than the conventional food market, spurring the growth ofspecialtyretailers such as Whole Foods Market and Wild Oats. Wal-Mart, too,has joined thisextensive distribution of organic products. Indeed, Wal-Mart has recentlydeclared that inNorth American stores , its non-fa rm-rais ed fresh fish will be

certi fied by the Marin eStewardship Council as sustainably harvested.Super energy-efficient appliances and fixtu res are also becoming popular. Chic, front-loadingwashing machines, for example, accounted for 25 percent of the market in32

2004, up from 9 percent in 2001. EPAs Energy Star label, which certifies that

productsconsume up to 30 percent less energy than comparable alternatives, is found on

productsranging from major appliances to light fixtures to entire buildings (minimumefficiencystandards vary from product to product). The construction industry isbecomingincreasingly green as government and industry demand office buildingsthat are highperformance (for example, super energy- and resource-efficient and costeffective) andhealthy fo r occu pants (for example, well-ventilat ed; constructedwith mater ia ls withlow or no v ola t i le org anic comp oun ds [VOC] ) . Th eU.S. Green Building CouncilsLeadership in Energy and EnvironmentalDesign (LEED) provides a rigorous ratingsystem and green building checklist thatare rapidly becoming the standard for environmentally sensitive construction.Home

buyers are recognizing the practical long-term cost savings and comfort of natural lighting,passive solar heat ing, and heat -reflec tive w indows , and a 2006 s tudysponsored by

home improvement retailer Lowes found nine out of ten builders surveyedare incorporatingenergy-saving features into new homes. Additionally, a proliferation of green buildingmaterials to serve the growing demand has emerged. Lowes competitor The Home Depot istesting an EcoOptions product line featuring natural fertilizers andmold resistant drywall inits Canadian stores that may filter into the U.S. market. In short,energy efficiency and greenconstruction has become main stream.The dive rsity and ava ilab ili ty of green productsindicate that consumers are notindifferent to the value offered by environmental benefits.Consumers are buying greenbut not necessarily for environmental reasons.

The market growth of organic foodsand energyeff icient appliances is becauseconsumers des ire the ir perceived safety andmoney savings, respectively.Thus, the apparent paradox between what consumerssay and their purchases may be

explained, in part, by green marketing myopiaanarrow focus on the greenness of productsthat blinds companies from consideringthe broader consumer and societal desires.A fixation on products environmentalmeri ts has res ul ted fr equ ent ly inin fe ri or gr ee n pr od uc ts (f or ex am pl e, th e or ig in al EarthLight and GMs EV-1electric car) and unsatisfying consumer experiences.33

34CHAPTER - 3HOW TO DO GREEN MARKETING


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THE 3 Cs OF MATKETING GREEN PRODUCTSThe analysis of past research and marketing strategies finds that successful greenproductshave avoided green marketing myopia by following three important principles:The Three Cs of consumer value positioning, calibration of consumer knowledge,and

credibility of product claims.1. Consumer Value Positioning The marketing of successfully established green products showcases non-greenconsumer value, and there are at least five desirable b enefits commonlyassociated withgreen products:1.1.Efficiency and cost effectiveness;1.2.Health and safety;1.3.Performance;1.4.Symbolism and status and1.5.Convenience

.Additionally, when these five consumer value propositions are not inherent in thegreenproduct, successful green marketing programs bundle (that is, add to thep roductdes ign o r mark e t o f fe r ing) des i r ab le c onsumer va lue to b road enth e g r e en p r o du c t s appeal. In practice, the implication is that product designers andmarketers need to alignenvironmental products consumer value (such as moneysavings) to relevan t consumer market segments (for example, cost consciousconsumers).1.1 Efficiency and Cost EffectivenessThe common inherent benefit of many green products is their potential energy andresourcee f f i c i e n c y . G i v e n s k y - r o c k e t i n g e n e r g y p r i c e s a n d t a x i n c e n t i v e s f o r fuel -35

efficient cars and energy saving home improvements and appliances, long-termsavingshave convinced cost-conscious consumers to buy green.Recently, the homeappliance industry made great strides in developing energyefficient productst o a c h i e v e E P A s E n e r g y S t a r r a t i n g . F o r e x a m p l e , E n e r g yS t a r refrigerators use at least 15 percent less energy and dishwashers use at least percentlessenergy than do traditional models. Consequently, an Energy Star productoftencommands a price premium. Whirlpools popular Duet frontloading washer and dryer,

for example, cost more than $2,000, abo ut double the price of conventional units;however, the washers can save up to 12 ,00 0 ga l lon s o f wa te r and $110 on

e le c t r i c i t y a n nu a l l ycompared to standard models (Energy Star does not ratedryers).Laundry detergents are also touting energy savings. Procter & Gambles(P&G)newest market entry, Tide Coldwater, is designed to clean clotheseffectively in coldwater. About 80 to 85 percent of the energy used to washclothes comes from heatingwater. Working with utility companies, P&G found thatconsumers could save an averageof $63 per year by using cold rath er than warmwater. Adopting Tide Coldwater givesadded confidence to consumers alreadywashing in cold water. As energy and resourceprices continue to soar,oppor tunitie s for produc ts o ffering efficiency and savings a redestined for marketgrowth.1.2 Health and Safety

C o n c e r n s o v e r e x p o s u r e t o t o x i c c h e m i c a l s , h o r m o n e s , o r d r u g s i neverydayproducts have made health and safety important choice considerations, especially


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amongvulnerable consumers, such as pregnant women, children, and the elderly. Becausemostenvironmental products are grown or designed to minimize or eliminate the use oftoxicagents and adulterating processes, market positioning on consumer safety and healthcanachieve broad appeal among health-conscious consumers. Sales of organicfoods, for example, have grown considerably in the wake of public fear over

mad cow disease;antibiotic- laced meats, mercury in fish, and geneticallymodified foods. Mainstream36

appeal of organics is not derived from marketers promoting the advantages of free-rangean imal r anch ing and pe s t i c ide f r ee so i l . Ra th e r , marke t pos i t ion ingof or ga ni cs as flavorful, healthy alternatives to factory-farm foods hasconvinced consumers to p ay apremium for them.A study conduc ted by th e All iancefor Environmental Innovation and householdpro du ct s- ma ke r S. C. Jo hn so nfound tha t consumers a re mo s t l ik e ly to ac t o n g re enmessages thatstrongly connect to their personal environments. Specifically, findingssuggestthat the majority of consumers prefer such environmental household

productbenefits as safe to use around children, no toxic ingredients, no chemicalresidues,and no strong fumes over such benefits as packaging can berecycled or not testedon animals.Seventh Generation, a brand of non-toxic and environmentally- safehousehold products,derived its name from the Iroquois belief that, In our everyd e l ib e ra t io n , we mu s tconsider the impact of our decisions on the next sevengenerations.Accordingly, its products promote the family-oriented value of making theworld a safer placefor the next seven generations.I n d o o r a i r q u a l i t y i s a l s o a g r o w i n gc o n c e r n . F u m e s f r o m p a i n t s , c a r p e t s , f u r ni tu re , a nd ot he r d c or in

p o o r l y v e n t i l a t e d s i c k b u i l d i n g s h a v e b e e n l i n k e d t o h e a d a c h e s , e y e ,n o s e , a n d t h r o a t i r r i t a t i o n , d i z z i n e s s , a n d f a t i g u e a m o n goc cu pa nt s. Consequently, many manufacturers have launched green products toreduce indoor air pollution. Sherwin Williams, for example, offers Harmony, a line ofinterior paints thatis low-odor, zero- VOC, and silica-free. Aside from energy efficiency,health and safetyhave been key motivators driving the green building movement.1.3 PerformanceTheconventional wisdom is that green products dont work as well as non-green ones. T h i s i s a l e g a c y f r o m t h e f i r s t g e n e r a t i o n o f e n v i r o n m e n t a l l ys e n s i t i v e p r o d u c t s t h a t c l e a r l y w e r e i n f e r i o r . C o n s u m e r p e r c e p t i o n o f g r ee n c le an i n g a g en t s introduced in health food stores in the 1960s and 1970s, for

example, was that they cost37

-

t w i c e a s m u c h t o r e m o v e h a l f t h e g r i m e . T o d a y , h o w e v er , m a n y g r e e npr od uc ts ar edesigned to performbetter

than conventional ones and can command a price premium.For example, in additionto energy efficiency, front-loading washers clean better and aregentler on clothes


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compared to conventional top-loading machines because they spinclothes in amotion similar to clothes driers and use centrifugal force to pull dirt andwateraway from clothes. By contrast, most top-loading washers use agitators to

pul lc lo thes th rough t ank s o f wa te r , r edu c ing c lean ing and inc re as ingw e a r o n c l o t h e s . C o n s e q u e n t l y , t h e e f f i c i e n c y a n d h i g h p e r f o r m a n c e

b en e f it s o f to p -l o ad i ng wa s h er s justify their premium prices.Homeownerscommonly build decks with cedar, redwood, or pressure-treatedpine (whichhistorically was treated with toxic agents such as arsenic). Wood requiresstaino r p a i n t a n d p e r i o d i c a p p l i c a t i o n s o f c h e m i c a l p r e s e r v a t i v e s f o r ma i n te n a n ce . Increasingly, however, composite deck material made from recycled milk

jugs and woodfib er , s uch as Wey erh aeu se rs Cho ice Dek , is mar ket ed as thes m a r t e r a l t e r n a t i v e . C o mp o s i t e s a r e a t t r a c t i v e , d u r a b l e , a n d l o wmaintenance. They do not contain toxicchemicals and never need staining orchemical preservatives. Accordingly, theycommand a price premium as much as two to

three times the cost of pressure-treatedpine and 15 percent more than cedar or redwood.In sum, high performance positioning can broaden green product appeal.1.4 Symbolism and Status

A s m e n t i o n e d e a r l i e r , t h e P r i u s , T o y o t a s g a s - e l e c t r i c h y b r i d , h a s c o m eto epitomize green chic. According to many automobile analysts, the cool-kid cachetthatcomes with being an early adopter of the quirky-looking hybrid vehicle trend continuestopartly motivate sales. Establishing a green chic appeal, however, isnt easy. Accordingtopopular culture experts,green marketing must appear grass-roots driven andhumorous without sounding preachy. Toappeal to young people, conservation andgreen consumption need the unsolicitedendorsement of high-profile celebrities and38

connection to cool technology.Prius has capitalized on its evangelical following andhigh-tech image with somesatirical ads, including a television commercial comparing thehybrid with NeilArmstrongs moon landing (Thats one small step on the accelerator,one giantleap for mankind) and product placements in po pular Hollywood filmsandsitcoms (such asCurb Your Enthusiasm). More automobile analysts, the cool-kid cachetthat comes with being an earlyad op te r of th e qu ir ky -l oo ki ng hy br id ve hi cl e tr en dcontinues to partly motivatesales.THE GREEN CHIC SYMBOL

In business, where office furniture symbolizes the cachet of corporate image andstatus, theergonomically designed Think chair is marketed as the chair with a brainand aconscience. Produced by Steelcase, the worlds largest office furnituremanufacturer,

the Think chair embodies the latest in cradle to cradle (C2C) design andmanufacturing.C2C, which descr ibes products tha t can be ul t imate ly re turned to technicalor biological nutrients, encourages industrial designers to create products free of harmfula g e n t s a n d p r o c e s s e s t h a t c a n b e r e c y c l e d e a s i l y i n t o n e w p r o d u c t s( s u ch a s metals and plastics) or safely returned to the earth (such as plant-based materials).Madewithout any known carcinogens, the Think chair is 99 percent recyclable; itdisassembleswith basic hand tool s in about f ive minu tes, and parts are stampedwith icons showingrecycling options. Leveraging its award-winning design and

sleek comfor t, the Think chair is positioned as symbolizing the smart, sociallyresponsible office.


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In sum, greenproducts can be positioned as status symbols.39

1.5 ConvenienceMany energy-efficient products offer inherent convenience benefits that can

beshowcased for competitive advantage. CFL bulbs, for example, needinfrequentreplacement and gas-electric hybrid cars require fewer refueling stopsbenefits

that arehighlighted in their marketing communications. Another efficient alternativetoincandescent bulbs are light emitting diodes (LEDs): They are even more

ef fi cien t andlonger-lasting than CFL bulbs; emit a clearer, brighter light; and are virtuallyunbreakablee v e n i n c o l d a n d h o t w e a t h e r . L E D s a r e u s e d i n t r a f f i cl i g h t s d u e t o t h e i r h i g h - performance convenience.To encourage hybridvehicle adoption, some states and cities are granting their dr iv er s th e

c o n v e n i e n c e o f f r e e p a r k i n g a n d s o l o - o c c u p a n t a c c e s s t o H O V l a n e s .AToyota spokesperson recently told theLos Angeles Times, Many customers are telling usth e ca rp oo l la ne is th e ma in re as on fo r bu yi ngn o w. To yo ta h ig h l i gh t s t h e c a r p o o l benefit on its Prius Web site, and conveniencehas become an incentive to drive efficienthybrid cars in traffic- congested states likeCalifornia and Virginia. Critics have charged,however, tha t such incentives clogcarpool lanes and reinforce a one car, one personlifestyle over alternativetransportatio n. In response, the Virginia legisla ture has morerecently enacted curbson hybrid drivers use of HOV lanes during peak hours, requiringthree or more people pervehicle, except for those that have been grandfathered in.Solar power was once usedonly for supplying elec tricity in remote a reas ( for example, while camping in thewilderness or boating or in homes situated off the power grid). That convenience, however,is being exploited for other applications. Inlandscaping, for example, self-

co nt ai ne d s ol ar -p ow er ed ou td oo r e ve ni ng li gh ts th at recharge automaticallyduring the day eliminate the need for electrical hookups and offer flexibility forreconfiguration. With societys increasing mobility and reliance onelectronics, solar

powers convenience i s also manifes t in solar- powered calcula tors,wrist watches,and other gadgets, eliminating worries over dying batteries.40

1.6 BundlingSome green products do not offer any of the inherent five consumer desiredbenefits

noted above.This was the case when energy-efficient and CFC-freerefrigerators were introduced inChina in the 1990s. While Chinese consumers preferreda nd wer e w i l l in g to p ayabout 15 percent more for ref r igera tors tha t were energyeff ic ient , theydid not connect the environmental advantage of CFC-free with either energyefficiency or savings. Consequently, the CFC-free feature had little impact onpurchased e c i s i o n s . T o e n c o u r a g e d e m a n d , t h e C F C - f r e e f e a t u r e w a s b u n d l e dwithattributes desired by Chinese consumers, which included energy efficiency,savings,brand/quality, and outstanding after-sales service. Given consumer demandfor convenience, incorporating time-saving or ease-of- use features into green

products canfurther expand their mainstream acceptance. Fords hybrid Escape

SUV comes with anoptional 110-volt AC power outlet suitable for work, tailgating, orcamping. Convenienceh a s a l s o e n h a n c e d t h e a p p e a l o f I n t e r f a c e s


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r e c y c l a b l e F L O R c a r p e t i n g , w h i c h i s marketed as practical, goof-proof, andversatile. FLOR comes in modular square tileswith four peel-and-stic k dots on the

back for easy installation (and pull up f or altering,recycling, or washing withwater in the sink). Modularity offers versatility to assembletiles for a customlook. Interface promotes the idea that its carpet tiles can be changedand

reconfigured in minutes to dress up a room for any occasion. The tiles come in pizza-styleboxes for storage, and ease of use is FLORs primary consumer appeal.Aust in (Texas )Energys Green Choice program has led the US in renewableenergy sales forthe past three years. In 2006, demand for wind energy outpaced supplyso that theutility resorted to selecting new Green Choice subscribers by lottery. Whilemo s tu t i l i t i e s f i n d i t c h a l l e n g i n g t o s e l l g r e e n e l e c t r i c i t y a t a p r e m i u m p r i c eo n i t s environmental merit,Austin Energys success comes from bundling three benefitsthat appeal to commercial powerusers:First

, Green Choice customers are recognizedin b ro a d ca s t me d i a f o r t h ei r c o rp o r at er e s p o n s i b i l i t y ;second, t h e g r e e n p o w e r i s marketed as home grown, appealing to Texan loyalties; andthird, the program offers afixed price that is locked in for 10 years. Because wind powers cost isderived primarily41

from the construction of wind farms and is not subject to volatile fossil fuel costs,AustinE nergy passes i t s inheren t p r i ce s t ab i l i ty on to i t s Green Choicecustomers. Thus,companies participating in Green Choice enjoy the

predictabil ity of their fu ture energycosts in an otherwise volatile energy market.Theanalysis suggests that successful green marketing programs have broadenedthe consumerappeal of green products by convincing consumers of t heir non-greenconsumervalue. Thelesson for crafting effective green marketing strategies is thatplanners need to identify theinherent consumer value of green product attributes(for example, energy efficiencys inherent long-term money savings)or bundle desiredconsumer value into green products( s u c h a s f i x e d p r i c i n g o f w i n d p o w e r )and todraw marketing attention to this consumer value.

2. Calibration of Consumer KnowledgeMany of the successful green products in the analysis described hereemploycompelling, educational marketing messages and slogans that connect green productattributes withdesired consumer value.That is, the marketing programs successfullycalibrated consumer knowledge torecognize the green products consumer benefits. Inmany instances, theenvironmental benefit was positioned as secondary, if mentioned atal l. Ch an ge sm a d e i n E P A s E n e r g y S t a r l o g o p r o v i d e a n e x a m p l e , i l l u s t r a t i n gt h e p r o g r a m s i m p r o v e d m e s s a g e c a l i b r a t i o n o v e r t h e y e a r s . O n e o f E n er g y S t a r s ea r ly marketing messages, EPA Pollution Preventer, was not onlyambiguous but myopicallyfocused on pollution rather than a more mainstream consumer

benefit. A later promotional message, Saving The Earth. Saving Your Money. betterassociated energyeffici ency with consumer value, and one of its more recent


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slogans, Money Isnt AllYoure Saving, touts economic savings as the chiefbenefit. This newest slogan alsoencourages consumers to think implicitly about whatelse they are savingthe logosillustration of the Earth suggests the answer, educating

consumers that saving the Earthcan also meet consumer self-interest.42

The connection between environmental benefit and consumer value is evidentinEarthbound Farm Organics slogan, Delicious produce is our business, but health isour bottom line, which communicates that pesticide-free produce is f lavorful andhealthy.Likewise, Tide Coldwaters Deep Clean. Save Green. slogan not onlyassuresconsumers of the detergents cleaning performance, but the term green offers a

doublemeaning, connecting Tides cost saving with its environmental benefit.Citizens solar-powered Eco-Drive watchs slogan, Unstoppable Caliber, communicatesthe productsconvenience and performance (that is, the battery will not die) as well as

prestige.Some compelling marketing communications educate consumers torecognizegreen p rodu c t s a s so lu t ions fo r the i r pe r sona l needsand

the environment. Whenintroducing its Renewal brand, Rayovac positioned thereusable alkaline batteries as asolution for heavy battery users and the environment withconcurrent ads touting How tosave $150 on a CD player that costs $100 and How to save147 batteries from going tola nd fi ll s. Co mp le me nt in g th e mo ne y sa vi ng s an dlan dfi l l an gle s, ano the r ad in the campaign featured sports star MichaelJordan proclaiming, More Power. More Music.And More Game Time. toconnect Renewal batteries performance to convenience. Inpractice, the analysisconducted here suggests that advertising that draws attention to howt he e nv i ro n me nt a l

product benef i t can del iver des i red personal value can broadenconsumer acceptance of green products.3. Credibility of Product ClaimsCredibility is the foundation of effective green marketing. Green productsmust meet orexceed consumer expectations by delivering their promised consumervalue and providingsubstantive environmental benefits.Often, consumers dont havethe experti se or abi lity to ver ify green produc tsenvironmental and consumer values,creating misperceptions and skepticism. Asexemp lif ied in the case of Mobils Hef typhotodegradable plastic trash bag describedearlier, green marketing that touts a productsor a companys environmen tal credentialscan spark the s crutiny of advocacy groups or 43

regulators. For example, although it was approved by the U.S. Food andDrugAdministration, sugar substitute Splendas Made from sugar, so it tastes

like sugarslogan and claim of being natural have b een challenged by theSugar Associa tion andGene rat i on Gree n, a h eal t h advo cacy grou p, asmi s l ea d in g g i ve n th a t it s p ro c es s i n g results in a product that is unrecognizable assugar .We can der ive f rom pas t research that green c la ims should bes p ec i f i c an d meaningful. Toyota recognizes the ambiguity of the term green anddiscourages its usein it s m ar ke ti ng of it s g as -e le ct ri c h yb ri d c ar s. On e

proposed slogan, Drive green,breathe blue was dismissed in favor ofspecific claims about fuel efficiency, such asLess gas in. Less gasses out. Further,


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environmental claims must be humble and notover-promise.When Ford Motor Company publicized in

National Geographicand other magazines its new eco-designed Rouge River Plant that incorporated the worldslargestliving roof of plants, critics questioned the authenticity of Fords

environmentalcommitment given the poor fu el eco nomy of the automakers best-selling SUVs. Eventhe Prius has garnered some criticism for achieving considerablyless mileage(approximately 26 percent less accordin g to

Consumer Reports) t ha n i ts g ov er nm en ts t i c k e r r a t i n g c l a i m s , a l t h o u g h t h e a c t u a lr e d u c e d m i l e a g e d o e s n o t a p p e a r t o b e hampering sales. Nonetheless, green

product attributes need to be communicated honestlyand qualifi ed for believabili ty (inother words, consumer benefits and environmentaleffectiveness claims need to becompared with comparable alternatives or likely usagescenarios). For example,Toyota includes an actual mileage may vary disclaimer inPrius advertising.When Fords hybrid Escape SUV owners complained that they wereno t

a c h i e v i n g e x p e c t e d m i l e a g e r a t i n g s , F o r d l a u n c h e d t h e F u e l - E c o n o m ySc ho ol campaign to educate drivers about ways to maximize fuel efficiency.Further, EPA isreconsidering how it estimates hybrid mileage ratings to betterreflect real is tic dr iv ingconditions (such as heavy acceleration and air conditionerusage).44

3.1. Third Party Endorsements and Eco-CertificationsExpert third parties with respected standards for environmental testing (suchasindependent laboratories, government agencies, private consultants, ornonprofitadvo cacy orga niza t ion s) can pro vide gre en prod uct

end or sem en ts and / or se als of approval to help clarify and bolster thebelievability of product claims. The EnergyStar label, discussed earlier, is acommon certi fication that dis ting uishes certa inelectronic products as consumingup to 30 percent less energy than comparablea l t e r n a t i v es . T h e U. S .

Dep art men t of Agric ul tur e s US DA Orga nic cert if i es the production andhandling of organic produce and dairy products.SOME ECO-LABELS AND CERTIFICATIONSGreen Seal and Scientific Certification Systems emblems certify a broad spectrumof green

products. Green Seal sets sp ecific criteria for various categories ofproducts,ranging from paints to cleaning agents to h otel properties, and for a fee,companies canhave their products evaluated and monitored a nnually for

certification. Green Seal has45

certified the Hyatt Regency in Washington, DC, for the hotels comprehensiveenergyand water conservation, recycling programs, and environmental practices.By contrast,Scientific Certification Systems (SCS) certifies specific productclaims or prov ides adetailed eco-profile for a products environmental impact fordisplay on product labelsfor a broad array of products, from agricultural products to fisheriesto construction.Although eco-cer tificat ions differentiate products and aid inconsumer decis ionmaki ng, t hey a re no t wi t hout cont rove rsy . The s c ien ce

be hi nd ec o- se al s ca n ap pe ar subjective and/or complex, and critics may takeissue with certification criteria. For example, GreenOrder, a New York-based


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environmental consulting firm, has devised ascorecard to evaluate clean-tech products marketed in General ElectricsEcomagination initiative, whichrange from fuel-efficient aircraft engines to windturbines to water treatmenttechnologies. Only those passing GreenOrders criteria arema rk et ed asE c o m a g i n a t i o n p r o d u c t s , b u t c r i t i c s h a v e q u e s t i o n e d G E s i n c l u s i o n

o f cleaner coal (that is, coal gasification for cleaner burning and sequestrationof carbondioxide emissions) as an Ecomagination product.Consequently, when seekingendorsements and eco-certifications, marketersshould consider the environmental

tradeoffs and complexity of thei r products and thethird parties behind endorsementsand/or certifications: Is the third party respected? Areits certification methodologiesaccepted by leading environmentalists, industry experts,go ve rn me ntr e g u l a t o r s , a n d o t h e r k e y s t a k e h o l d e r s ? M a r k e t e r s s h o u l d e d u c a t et h e i r c u s t o m e r s a b o u t t h e m e a n i n g b e h i n d a n e n d o r s e m e n t o r a n e c o -s ea l s c ri te ri a. GEr e c o g n i z e s t h a t i t s c l e a n e r c o a l t e c h n o l o g y i scontroversial but hopes that robustmarketing and educational outreach wil lconvince society about cleaner coalsenvironmental benefits. On its Web site,

GE ref ere nce s U.S . Ene rgy Inf or mat io nAdministrations statist ics that coalaccounts for about 24 percent of the worlds totalenergy consumption, arguingthat coal will continue to be a dominant source of energydue to its abundance andthe increasing electrification of populous nations such as Chinaand India.46

3.2. Word-of-Mouth Evangelism and the InternetI n c r e a s i n g l y , c o n s u m e r s h a v e g r o w n s k e p t i c a l o f c o m m e r c i a l m e s s a g e s ,andtheyre turning to the collective wisdom and experience of their friends and

pee rs aboutproduc t s . Word-of -mo uth o r buzz i s pe rce ived to be v e rycr ed ib le , es pe ci al ly as consumers consider and try to comprehend complex

product innovations. The Internet, thro ug h e-m ail and i ts vas t , acc ess ibl ereposi tory of information, Web si tes, searchengines, blogs, product rat ingssites, podcasts, and other digital platforms, has openedsignificant oppo rtunities

for tapping consumers social and c ommunica tion networks to diffuse credibleword-of-mouth (buzz facilitated by the Internet) about green products.I n 2 0 05 , P ro c to r& Gamble pa r tne red w i th the non-pro f i t o rgan iza t i on , theAll iance to SaveEnergy (ASE), in a viral marketing campaign to spread news aboutthe money-saving benefits of laundering clothes in cold water with specially formulatedTideColdwater. ASE provided credibility for the detergent by auditing and

back ingP&Gs claims that consumers could save an average of $63 a year if they switchedfromwarm to cold water washes. ASE sent e-mail promotions encouraging consumers tovisitTide.com, an interactive Web site and take the Coldwater Challenge byregistering toreceive a free sample. Visitors could calculate how much moneythey would save byusing the detergent, learn other energy-saving laundry tips, and refer

email addresses of the ir fr i end s to tak e the ch all eng e as wel l . Tid e.c omof fe re d an en ga gi ng ma p of th eUnited States where, over time, visitors could


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track and watch their personal networksgrow across the country when their friendslogged onto the site to request a free sample.Given the immediacy of e-mail and the Internet,word-of-mouth is fast becomingan important vehicle for spread ing cred ible newsabout new products. According to thePew Internet & American Life Project, 44 percentof online U.S. adults (about 50 millionAmericans) are content creators, meaning that they

contribute to the Internet via blogs,product recommendations, and reviews. Tofacil itate buzz, however , marketers need toc r e a t e c r e d i b l e m e s s a g e s ,s t o r i e s , a n d W e b s i t e s a b o u t t h e i r p r o d u c t s t h a t a r e s o c o m p e l l i n g ,interesting, and/or entertaining that consumers will seek the information out47

and forward it to their friends and family. The fact that P&G was able to achieve this for alow-involvement product is quite remarkable.International onlin e marketing consultantHitwise reported that ASEs e-mailcampaign increased traffic at the TideColdwater Web site by 900 percent in the firstwee k, an d th en tr ip le d th atleve l in week two. With in a f ew mo nths , mor e tha n on emil lion Americansaccepted the Coldwater Challenge, and word-of-mouth cascadedthrough ten

degrees of separation across all 50 states and more than 33,000 zip codes. InOctober 2005,Hitwise reported that Tide.com ranked as the twelfth most popular site bymarket share ofvisits in the LifestyleHouse and Garden category. No other laundrydetergent brands Web

site has gained a significant Web presence in terms of the number of visits.P&Gs savvy implementation of The Three Csconsumer valuepositioning on money

savings, calibration of consumer knowledge about cold washeffectiveness via an engaging Website, and credible product messages dispatched bya respected non-profit group and consumersInternet networksset the stage forTide Coldwaters successful launch.48

INTERVIEWST h e r e s e a r c h c o n d u c t e d f o r t h i s r e p o r t w a s d o n e p u r e l y w i t h t h e h e l p o f interviewsconducted with top officials of five companies. Every company has itsownenvironmental strategy and thus the efforts made by each company can not be

measuredon a common scale. Thus the research is totally based on the interviews conductedwhichhave been mentioned below. These officials helped me with the research bydiscussingtheir environmental policies and the strategies related to them as tohow they reach outwith these strategies to their consumers. This often createsgoodwill among theconsumers about the products from these companies . The

excerpts from the in terviewshave been given below. The companies and the officials who

helped in this research wereal l fr om di ff er en t fi el ds ra ng in g fr om In fo rm at io nT ec h n ol o g y t o T e le co mm a n d Manufacturing to FMCG. The list of the companiesand officials is given below:Suzuki Motorcycles Mr. Abhishek Sinha, Manager - Human Resource.Bharti Airtel Mr. Gaurav Tyagi, Manager Marketing.IBM India Mr. Shantanu Varma, Country Manager.PepsiCo India Ms. Anupama Priyadarshini General Manager.


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Kapoor Light Life Style Mr. P. Rajasekhar Vice PresidentThe in terviews focusedmainly on one thing i.e. how the consumer has become awareab ou t th e va ri ou sh a z a r d s i n t h e e n v i r o n m e n t . T h e c o n s u m e r t o d a y c a r e s a b o u tth e environment and likes to go for environment healthy products. Also the companieshaveto focus on a greener environment within their infrastructure for the well

being of their own employees.Th e in te rv ie ws we re th en an al yz ed an d on th eb as i s o f th is a na ly s i s th is re p o rt w as structured. The excerpts from theseinterviews are given below.50

Mr. Abhishek Sinha, Manager (HR), Suzuki Motorcycles:On plant area and production capacity:SMIPL manufacturing plant installed in Gurgaon (Haryana) having the annual

p lantcapac i ty o f 1 ,75 ,0 00 un i t s . We have go t to t a l l an d a rea o f 37 ac resan d ou t of wh ic hpresently our plant is constructed in 6.5 acres of land andremaining area is left for theland development and future expansion.On the priority given to the cleanliness of the environment at Suzuki Motorcycles:

A t S u z u k i , t h e p h i l o s o p h y o f k e e p i n g e n v i r o n m e n t f i r s t i s p r o p e r l ype rc ol at ed downwards. To comply with all applicable legislations and settings tandards thereof rema ins only a be ginn ing . We thr i ve to d isco ver andin v e n t mec h an i s ms f o r b e t t e r environment management systems and its acontinuous process which is managed by aseparate wing of experts and specialist in thefield.On any new environmental measures adopted by Suzuki:The biggest testimony of Suzukis commitments towards environment first is seen inthenew plant of Suzuki two wheelers at Gurgaon which is built to be a Zerodischargeplant.On the Lighting and material used by Suzuki:51

We have embraced Natural light optimization system and water harvestingsystemsbesides several other measures to create better and cleaner environmentaround us. Allpackaging material used by Suzuki is re-cycleable. A constant flow of

in ternalcommunicat ion on environment re la ted i ssues not only createsa war e n es s a mo ng s t employees but also helps in inculcating an environment friendlyvalue system.On environmental measures taken for the benefit of the employees:To take care of the health of all our employees, we maintain all international parametersandstandards for drinking water, treated water, ambient air shop floor, office andtheoutside. We keep updating all these standards of health and welfare of employeesthrougha team of well qualified personnel in the R & D laboratory.52

Mr. Shantanu Varma, Country Manager, IBM India:O n C h a l l e n g e s , p r o d u c t s a n d s o f t w a r e s d e v e l o p e d b y I B M f o r a dd r e s s in g th e environmental issues:


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Around the world, there is an increasing awareness that human activity maythreatendelicate ecological systems. From evidence of global warming toconcerns about water and soi l toxi c i ty , indi vidu als and grou ps are aski ngwhat they can do to reduce their environmental impact. We at IBM providesolutions for different organizations facingecological problems. The challenges have

become clear: the need for clean water and air;affordable and reliable delivery of energy; thedwindling supply of fossil fuels; the realityof climate disruption and its implications forfuture generations.On the approach adopted by IBM towards a cleaner and greener environment:At IBM, our approach is twofold: we are working to make our existing productsandprocesses more efficient for both the environment and for business, while alsodevelopingnew innovations that can accelerate the adoption of products and services thathave lesser environmental impact.On any particular agenda or priority list followed by IBM towardsaddressingenvironmental issues:53

Today's energy- and climate-related issues are at the top of our strategic agenda.Werecognise that information technology plays an extremely important role in helpingsolvethe myriad of ecological challenges faced by the global societysuch as conserving

our scarce resources even as glob al demand skyrockets, reducing pollution,min imizing theenv i ronmenta l impac t o f our ac t iv i t i e s , and enab l ing sa fean d re ne wa bl e al te rn at iv e sources of energy.On any new ecological services that IBM offers:We have focused a lot on water related issues becauseIBMs Institute for Business

Valueconducted a su rvey of more than 100 p ublic and private sector executives.About 77percent of respondents said they consider water management extremelyimportant totheir organizations, and 71 percent expect, over the next five years,for water to createmore business cost and complexity. Thus we came up withsome services that wouldaddress the problems related to water.

Natural Water Resources- Provides sensor data integration, analysis andvisualization to enable themeasurement , modeling and management of wate r levels, usage and quality in naturalwater resources.Water Utilities- Enables water providers to make rapid decisions regardingbusiness processes andoperational efficiency to maximize their return oninvestments as well as foresee and

quickly res pond to co ntamina tion issues andemergencies.Water Infrastructure- Provides sensing systems for managing wate r infrastructure, such as leveeoversight management and flood control.Water Metering

- Improves management of water supply and demand byin te gr at in g da tabet wee n the doz ens of sta keh ol der s i nv olv ed. Pro vid es al l stakeholders with


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consistent, real-time information to help them work together tomake critical decisions aboutwater supply in a geographic region.Green Sigma for Water- A business consulting service that identifies wherewater is being used, measures and

monitors usage, and creates process54

improvements to reduce water use. IBM pilots have achieved reductions in water usage of 30

percent.On initiatives taken by IBM for a greener environment:As part of IBM's Big Green 2.0 initiative, we are continually looking at ways toassistbusiness in running their IT operations with greater efficiency andsustainability. Theproject Big Green tackles the problem of the Global EnergyCris is . Here we address theproblem of energy conservation with the efficient use of IT.

We have developed variousso ft wa re so lu ti on s wh ic h he lp th e or ga ni za ti on s inrunning their systems by usingminimal energy resources.55

Ms. Anupama Priyadarshini, General Manager, PepsiCo, India:On policies adopted by PepsiCo:P e p s i C o I n d i a i s s t r i d i n g a h e a d r a p i d l y t o w a r d s e n a b l i n g t h e g l o b a lvision to be theworld's premier consumer products company focused onconvenience foods andbeverages. PepsiCo India seeks to produce healthy financial

rewards for investors as itprovide opportunities for growth and enrichment to itsemployees, business partners andthe communities in which it operates.On Step taken towards replenishing water as they are more into beverages:PepsiCo is committed to minimising the impact of its business on theenvironment andrecognises that corporations can play a k ey role in using scarceresources such as water with care and responsibility.While agr icul ture u tili ses the

bulk of fresh water in India (83%) , industry uses 6% of which the beverage industryuses but a mere 0.04%. But every drop counts, and PepsiCoIndia' s pr imary focus in its

beverage and snacks plants has been on conser ving water ateach stage of themanufacturing process.In 20 03 , Pe ps iC o In di a em ba rk ed on it s qu es t toa c h i e v e

positive water balance by2009

.That means PepsiCo India will conserve, recharge, and thus replenish more water in its plantsand in its communities, than the total water it uses to manufacture beverageproducts.56

PEPSICOS WATER BALANCEOn initiatives taken by PepsiCo for waste management:PepsiCo India continues to strengthen its Solid Waste Management initiativesinpartnership with Exnora, an environmental NGO. This award winning, income

generatingpartnership currently impacts more than 1,00,000 people in Tamil Nadu, Andhra

Pradeshand Haryana will reach out to more than 2,00,000 people in 2008.Despite the creationof a detailed policy on Solid Waste Management and Handling rulesin 2000, very few


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municipalities in the country were able to completely comply withthese rules.PepsiCo India and EXNORA effectively implemented a model projectinP a m m a l d i s t r i c t i n T a m i l N a d u t h a t a d h e r e d t o t h e G o v e r n m e n t

p o l i c y o n w a s t e management. The project created a visible difference in thelocal envi ronment of theregion.PepsiCo Indias foods division, Frito Lay, also generates

biofuels from waste in its plantsthus reducin g methane emission and 875 MT of CO2emission annually, in addit ion toach iev ing 14% red uct ion in ene rgy use .Ne w c a pa c it y ex p a n s io n in p la n ts h as be e ndesigned to impact further reductionsin water, power and fuel.On PepsiCos partnership with farmers:PepsiCo's involvement in Indian agriculture stems from its vision of creating acos t -e f fec t ive , loca l i sed agr i -base in Ind ia by l everag ing fa rmers a c c e s s t o w o r l d c l a s s 57

agricultural practices. PepsiCo India worked with farmers and State Governmentstoimprove agri sustainability, crop diversification and raise f armer incomes.

Peps iCohelped transform the lives of thousands of farmers by helping them refine theirfarmingtechniques and raise farm produc tivity, and customized solutions tosui t specificgeographies and locations.The most ambit ious project is a joint

programme, launched in 1989, between Peps iCoIndia, the Punjab AgricultureUniversity (PAU) in Ludhiana and Punjab Agro IndustriesCorporat ion (PAIC) inChandig arh. The progra mme focuses on e volving agriculturalpractices to helpPunjab farmers produce internationally competitive products. Over thelast five years,PepsiCo has also collaborated with the Thapar Institute of Technology todevelop a high

quality potato seed programme.On partnership with TERI(The Energy and Resources Institute):TERI was established in 1974 with the purpose of tackling and dealing with the immenseandacute problems that mankind is likely to be faced with in the years ahead on accountof thegradual depletion of the earths finite energy resources which a re largely non-renewable and on account of the existing methods o f their use which are

polluting.Over the years the Institute has developed a wider interpretation of thiscore purpose and i tsappl ic a t io n an d h as c reat ed an e nvi r onme nt t ha t i se na b l i ng f o r t h e d ev e lo p men t o f solutions to global problems in the fields ofenergy, environment and current patterns of development, which are largely unsustainable.The Institute has grown substantially over the years, particularly, since it launched its ownresearch activities and established a basein New Delhi, its registered headquarters. Thecentral element of TERIs philosophy hasb e en it s re li an c e o n en t re p re n eu r ia lskills to create benefits for society through thedevelopment and disseminationof intellectual property. The strength of the Institute liesin not on ly identi fying andarticulating intellectual challenges straddling a number of di sc ip li ne s ofk n o w l e d g e b u t a l s o i n m o u n t i n g r e s e a r c h , t r a i n i n g a n dde mo ns tr at io n projects leading to development of specific problem-basedadvanced technologies that58

h e l p c a r r y b e n e f i t s t o s o c i e t y a t l a r g e . T h i s a s s o c i a t i o n h e l p s u s i n

a dd r e s s in g th e conservation of energy issue.Mr. Gaurav Tyagi, Manager (Marketing), Bharti Airtel:


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On Airtels infrastructure and expansion:The company is a part of Bharti Enterprises, and is India's leading providerof telecommunications services. The businesses at Bharti Airtel have been

st ructured in tothree individual s t ra tegic business uni ts (SBUs) - mobi lese rv ic es , br oa db an d &telephone services (B&T) & enterprise services. The

mobile services group providesGSM mobile services across India in 23 telecomcircles , while the B&T business groupprovides broadband & telephone services in 90cities. The Enterprise services group hastwo sub-units - carr ier s (long distanceservices) and services to corporates . All thes eservices are provided under the Airtel

brand.On initiatives taken towards building a better and greener environment:

We generate e-bills which support the cause Save Paper. If a customer doesntmind not receiving bills on paper we send him E-bills on his mail. We try and address asmanycustomers as possi ble and try and make them understand that it would be

better if theyreceived e-bills as it would reach them quicker and more importantly savepaper and helpthe environment. Up till now we have had a great response from the

consumers whichshow how environment conscious they are.On any more initiatives taken up by Airtel:We are a telecom company and so we do not have a lot o f initiatives as we dontneedthem but the Bharti Group has a 50:50 Joint Venture with DE Rothscheld. In additionto59

b e i n g t h e w o r l d s s e c o n d l a r g e s t p r o d u c e r o f f r e s h f r u i t s & v e g e t a b l e s ,I n d i a i s a l s o a m o n g s t t h e l o w e s t c o s t p r o d u c e r o f f a r m p r o d u c t s . T oc ap i t a l i ze on s u c h in h er e n t advantages, FieldFresh Foods plans to employ the worlds

best practices and technologyto work towards converting India into a preferredWorld Food Basket.As part of itscommitment to the green field project, the company plans to set upa world-class AgriResearch Center

and a Model Farm in Punjab in the first phase. The state of the artagriresearch center will primarily carry out research on hybrid seeds and agrofarmingtechniques. The research center will work towards the identification andadoption of conventional and emerging technologies and promote their OnField usage to further enhance agricultural productivity in an environmentallysustainable manner.60

Mr. P. Rajasekhar, Vice President, Kapoor Light Life Style:On plant area and production capacity:We dont have a manufacturing unit. All our products are imported and then assembledinour assembling unit. The products that we make are outsourced in v arious partsto di f f e r e n t v e n d o r s w h o a f t e r m a k i n g t h o s e p a r t s s e n d t h e m b a c k t o u s .


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Af te r th i s o u r assembling unit takes over and assembles the product as a whole. Wehave a work forceof 70 people in our assembling unit in Okhla, New Delhi.On the priority given to the cleanliness of the environment at Kapoor LightLifeStyle:We use dies and colours which are non toxic. Also the materials used are all recyclable.We

also have proper waste disposal facility in our assembly unit and we take it asour endeavour to keep the environment clean and green.On the materials used by Kapoor Light Life Style:We are the oldest and most trusted lighting company in India. We understandthat our customer expects us to use the best material and at the same time he is welleducated andthus unde rs ta nds the need of a c lean envi ronm ent . We thusus e re cy cl ab le an d bi odegradable materials only in our products. Our productmainly consist of fabric, metal,non toxic dies and glass. We DO NOT use plasticin our products. The crystals that weuse are electro statically charged and thus do notallow dust to settle on them.On the packing material used:

61

We make it a point to use recyclable packing material for our products. These materialsdonot harm the environment in any way and are completely environment friendly.62CHAPTER - 5STRATEGIES AND ADVANTAGES OF GREENMARKETING

STRATEGIES FOR SUCCESSMany marketers now grow their businesses by addressing specific environmentalissues thatare most relevant to their consumers. In the process, they save money andenhancecorporate and brand imagery while ensuring future sales for their products. Usethe followingstrategies to create profitable new or improved products and packages thatbalanceconsumers needs with environmental considerations.1. Minimize Direct Environmental Impact2. Use Sustainable Sources of Raw MaterialThe prospect of rapidly depleting stocks of natural resources and theresul tingrea l i ty o f p r i c e inc rea ses c re a te opp or tun i t i e s fo r a l t e r na t ivete ch no lo gi es an d ne wefficiency with product design. For example, paperdoesn t have to come from trees ; infact, alternative sources may be preferable.Promising new sources include kenaf, a fast-growing bamboo grown in the southern US, andhemp, which is naturally pest resistant,can be ble ached with peroxide instead ofchlorine, and produces a fiber more versati

arihant green marketing

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