neeraj.docx

7/30/2019 NEERAJ.docx

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Project Report

ON

GREEN MARKETING

Submitted in requirement of fulfillment of MBA degree of

GGSIPU, New Delhi

Submitted By

Name : Neeraj sharma

Enrolment No : 12915603911

Semester/Batch: IV sem / 2011-2013

Northern India Engineering College(Affiliated to GGSIPU)

FC-26, Shastri Park, New Delhi-110053


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DECLARATION

I, NEERAJ SHARMA enrol.no. 012915603911 do hereby certify that the Research Project

entitled HR OUTSOURCING submitted in requirement of fulfillment of MBA degree is an

authentic record of my own work, under the guidance of Mrs. KAMAYINI SHUKLA of

Northern India Engineering College, Fc-26, Shastri Park, New Delhi.

This is to further certify that I have not submitted this Project Report to any other Institute for the

award of any other degree.

(Signature)NAME: NEERAJ SHARMAEnrol.No.: 12915603911Batch: 2011-2013

Date:


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ACKNOWLEDGEMENT

Every endeavor in itself is an impression of the efforts of not only those who pursue it but of

those as well who provide guidance and motivation towards its successful completion. Likewise,

this project bears an imprint of all those who helped me at various stages and it would be unfair

on my part not to thank them.

I would also like to thank HOD mam MRS. DIVYA GANGWAR and all the my faculty

members at NIEC, for enlightening my way whenever any kind of support was required in

completion of the project.

The successful completion of this project could not have been possible without the co-operation

and encouragement ofMRS. KAMAYINI SHUKLA, my project guide, who provided me with

her unending support from the very beginning of the project, which helped in timely completion

of the project.

Id also express my gratitude towards my family and friends who continued to have an impact on

my thinking which helped me to complete this project.

THANKS & REGARDS,

NEERAJ SHARMA


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EXECUTIVE SUMMARY

Although environmental issues influence all human activities, few academic disciplines have

integrated green issues into their literature. This is especially true of marketing. As society

becomes more concerned with the natural environment, businesses have begun to modify their

behavior in an attempt to address society's "new" concerns. Some businesses have been quick to

accept concepts like environmental management systems and waste minimization, and have

integrated environmental issues into all organizational activities. Some evidence of this is the

development of journals such as "Business Strategy and the Environment" and "Greener

Management International," which are specifically designed to disseminate research relating to

business' environmental behavior.

One business area where environmental issues have received a great deal of discussion in

the popular and professional press is marketing. Terms like "Green Marketing" and

"Environmental Marketing" appear frequently in the popular press. Many governments around

the world have become so concerned about green marketing activities that they have attempted to

regulate them. For example, in the United States (US) the Federal Trade Commission and the

National Association of Attorneys-General have developed extensive documents examining

green marketing issues. One of the biggest problems with the green marketing area is that there

has been little attempt to academically examine environmental or green marketing. While someliterature does exist, it comes from divergent perspectives.

This report will attempt to:

Introduce the terms and concepts of green marketing; Briefly discuss why going green is important; Examine some of the reason that organizations are adopting a green marketing

philosophy; and

Mention some of the problems with green marketing. Find out ways to improve consumer appeal for environmentally preferable products

through different marketing strategies.


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INDEX

S.NO DESCRIPTION PAGE

NO

1 OBJECTIVES

2 INTRODUCTION TO GREEN MARKETING

3 LITERATURE REVIEW

4 RESEARCH METHODOLOGY

5 LIMITATIONS

6 DATA COLLECTION

WHY GREEN MARKETING IS IMPORTANT REASONS OF WHY COMPANIES USING GREEEN MARKETING? PROBLEMS WITH GREEN MARKETING STRATEGIES FOR SUCCESSFUL GREEN MARKETING

7 DATA ANALYSIS (CASE STUDY)

8 FINDINGS

9 CONCLUSION

10 SUGGESTIONS

11. REFERENCES AND BIBLIOGRAPHY


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OBJECTIVES OF THE STUDY

Primary objective

To analyse how green marketing is used as a competitive advantageSecondary objectives

To Introduce the terms and concepts of green marketing; To Briefly discuss why going green is important; To Examine some of the reason why organizations are adopting a green marketing

philosophy;

To Mention some of the problems with green marketing. To study the straties and advantages of green marketing


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INTRODUCTION

The term Green Marketing came into prominence in the late 1980s and early 1990s. The

American Marketing Association (AMA) held the first workshop on "Ecological Marketing" in

1975. The proceedings of this workshop resulted in one of the first books on green marketing

entitled "Ecological Marketing".

The first wave of Green Marketing occurred in the 1980s. Corporate Social Responsibility (CSR)

Reports started with the ice cream seller Ben & Jerry's where the financial report wassupplemented by a greater view on the company's environmental impact. In 1987 a document

prepared by the World Commission on Environment and Development defined sustainable

development as meeting the needs of the present without compromising the ability of future

generations to meet their own need, this became known as the Brundtland Report and was

another step towards widespread thinking on sustainability in everyday activity. Two tangible

milestones for wave 1 of green marketing came in the form of published books, both of which

were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by

Jacquelyn Ottman (1993) in the United States of America.

In the years after 2000 a second wave of Green marketing emerged. By now CSR and the Triple

Bottom Line (TBL) were widespread. Such publications as a 2005 United Nations Report, then

in 2006 a book by Al Gore and the UK Stern Report brought scientific-environmental arguments

to a wide public in an easy to understand way. This knowledge assessed the implications of

moving to a low-carbon global economy and the potential of different approaches. This new

wave of Green Marketing differed from the first wave in many respects. It is curious to note that

Green Marketing Wave 1 followed an economic recession, whereas Green Marketing Wave 2

came before the global recessions that come to be known as the Credit Crunch. This difference

may be significant in that it may suggest that Green Marketing is here to stay. The green

marketing concept dictates, amongst other things, less use, recycling and avoiding waste, just


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some of the ways society reacts at times of recession. (see Bradley 2003 for 6 green marketing

strategies).

According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for Innovation) from

an organizational standpoint, environmental considerations should be integrated into all aspects

of marketing new product development and communications and all points in between. The

holistic nature of green also suggests that besides suppliers and retailers new stakeholders be

enlisted, including educators, members of the community, regulators, and NGOs. Environmental

issues should be balanced with primary customer needs

The past decade has shown that harnessing consumer power to effect positive environmental

change is far easier said than done. The so-called "green consumer" movements in the U.S. and

other countries have struggled to reach critical mass and to remain in the forefront of shoppers'

minds. While public opinion polls taken since the late 1980s have shown consistently that a

significant percentage of consumers in the U.S. and elsewhere profess a strong willingness to

favor environmentally conscious products and companies, 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 consensus about what constitutes "green," according to Joel Makower, a writer on green

marketing. In essence, there is no definition of "how good is good enough" when it comes to a

product or company making green marketing claims. This lack of consensus -- by consumers,

marketers, activists, regulators, and influential people -- has slowed the growth of green

products, says Makower, because companies are often reluctant to promote their green attributes,

and consumers are often skeptical about claims.

Despite these challenges, green marketing has continued to gain adherents, particularly in light

of growing global concern about climate change. This concern has led more companies to

advertise their commitment to reduce their climate impacts, and the effect this is having on their

products and services


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LITERATURE REVIEW

WHAT IS GREEN MARKETING?

Green marketing refers solely to the promotion or advertising of products with

environmental characteristics. Terms like Phosphate Free, Recyclable, Refillable, Ozone

Friendly, and Environmentally Friendly are some of the things consumers most often associate

with green marketing. While these terms are green marketing claims, in general green marketingis a much broader concept, one that can be applied to consumer goods, industrial goods and even

services. For example, around the world there are resorts that are beginning to promote

themselves as "ecotourist" facilities, i.e., facilities that "specialize" in experiencing nature or

operating in a fashion that minimizes their environmental impact.

Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as modifying

advertising. Yet defining green marketing is not a simple task. Indeed the terminology used in

this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological

Marketing. While green marketing came into prominence in the late 1980s and early 1990s, it

was first discussed much earlier. The American Marketing Association (AMA) held the first

workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in one

of the first books on green marketing entitled "Ecological Marketing". Since that time a number

of other books on the topic have been published.

The AMA workshop attempted to bring together academics, practitioners, and public

policy makers to examine marketing's impact on the natural environment. At this workshop

GREEN MARKETING was defined as:


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The study of the positive and negative aspects of marketing activities on pollution, energy

depletion and non-energy resource depletion.

This early definition has three key components

1) It is a subset of the overall marketing activity;

2) It examines both the positive and negative activities; and

3) A narrow range of environmental issues are examined.

While this definition is a useful starting point, to be comprehensive green marketing

needs to be more broadly defined. Before providing an alternative definition it should be noted

that no one definition or terminology has been universally accepted. This lack of consistency is a

large part of the problem, for how can any issue be evaluated if all researchers have a different

perception of what they are researching. The following definition is much broader than those of

other researchers and it encompasses all major components of other definitions. The definition is

Green or Environmental Marketing consists of all activities designed to generate

and facilitate any exchanges intended to satisfy human needs or wants, such that the

satisfaction of these needs and wants occurs, with minimal detrimental impact on the

natural environment.

This definition incorporates much of the traditional components of the marketing

definition that is "All activities designed to generate and facilitate any exchanges intended to

satisfy human needs or wants". Therefore it ensures that the interests of the organization and all

its consumers are protected, as voluntary exchange will not take place unless both the buyer and

seller mutually benefit. The above definition also includes the protection of the natural

environment, by attempting to minimize the detrimental impact this exchange has on the

environment. This second point is important, for human consumption by its very nature is

destructive to the natural environment. (To be accurate products making green claims should

state they are "less environmentally harmful" rather than "Environmentally Friendly.")

Thus green marketing should look at minimizing environmental harm, not necessarily

eliminating it.


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Benefits of Green Marketing

Companies that develop new and improved products and services with environment inputs in

mind give themselves access to new markets, increase their profit sustainability, and enjoy a

competitive advantage over the companies which are not concerned for the environment.

Adoption of Green Marketing

There are basically five reasons for which a marketer should go for the adoption of green

marketing. They are -

* Opportunities or competitive advantage

* Corporate social responsibilities (CSR)

* Government pressure

* Competitive pressure

* Cost or profit issues

Green Marketing Mix

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of

marketing mix. The 4 P's of green marketing are that of a conventional marketing but the

challenge before marketers is to use 4 P's in an innovative manner.

Product

The ecological objectives in planning products are to reduce resource consumption and pollution

and to increase conservation of scarce resources (Keller man, 1978).

Price

Price is a critical and important factor of green marketing mix. Most consumers will only be

prepared to pay additional value if there is a perception of extra product value. This value may be


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improved performance, function, design, visual appeal, or taste. Green marketing should take all

these facts into consideration while charging a premium price.

Promotion

There are three types of green advertising: -

* Ads that address a relationship between a product/service and the biophysical environment

* Those that promote a green lifestyle by highlighting a product or service

* Ads that present a corporate image of environmental responsibility

Place

The choice of where and when to make a product available will have significant impact on the

customers. Very few customers will go out of their way to buy green products.

Challenges Ahead

* Green products require renewable and recyclable material, which is costly

* Requires a technology, which requires huge investment in R & D

* Water treatment technology, which is too costly

* Majority of the people are not aware of green products and their uses

* Majority of the consumers are not willing to pay a premium for green products

Green marketing of MNCs

* Philips Light's CFL

Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was

Earth Light, at $15 each versus 75 cents for incandescent bulbs.[17] The product had difficulty

climbing out of its deep green niche.[17]The company re-launched the product as "Marathon,"

underscoring its new "super long life" positioning and promise of saving $26 in energy costs

over its five-year lifetime.[18] Finally, with the U.S. EPA's Energy Star label to add credibility


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as well as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent

in an otherwise flat market.[18]

* Electronics sector

The consumer electronics sector provides room for using green marketing to attract new

customers. One example of this is HP's promise to cut its global energy use 20 percent by the

year 2010.[21] To accomplish this reduction below 2005 levels, The Hewlett-Packard Company

announced plans to deliver energy-efficient products and services and institute energy-efficient

operating practices in its facilities worldwide.

* Introduction of CNG in Delhi

New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India

forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in

all public transport systems to curb pollution

* ITC

* 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).

* Maruthi:Greening of 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


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as the prime reason that helped to excel in this direction.

The green co-efficient of this system is much better than the conventional system

* HCL's Environment Management Policy under HCL ecoSafe

In building a system to identify, develop and sustain the maintenance of an environment

management system at corporate level we have formulated a program that we proudly refer as

HCL's ecosafe.

The aim is to encapsulate knowledge, awareness, and key developments on all environmental

issues faced by today's world and to incorporate these in HCL's operations assuring ourcommitment in delivering quality products, solutions and services

Some more Examples:

* McDonald's restaurant's napkins, bags are made of recycled paper.

* Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million

pound/year.

* Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that

has been a major source of air and water pollution.

* Barauni refinery of IOC is taken steps for restricting air and water pollutants.


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RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research problem. Research,

incommon terms refers to a search for knowledge. Research methodology consists of different

steps that are generally adopted by a researcher to study the research problem along with the

logic behind them.

Data Collection: There are mainly two types of data

1. Primary data: data used for the first time.it can be collected through interviews andquestionnaires

2. Secondary data: secondary data is the data which have already being taken inresearches

For my research I have used Secondary data which have been collected from different websites.

Research design :

Qualitative

Research approach :

NORMATIVE in which secondary data was collected from the websites , journals etc

Tools used : MS office


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LIMITATIONS OF THE STUDY

The limitations of our research are:

Time limitations. Our limited experience was another constraint on the quality of the research. Information given on websites probably can not be correct.. Every care has been taken to eliminate the biases, but considering the human factors the

possibility of small bias having come up cannot be ruled altogether.


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DATA

COLLECTION(INCLUDE COLLECTION OF INFORMATION REQUIRED TO

ACHIEVE THE OBJECTIVES OF THE STUDY)


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WHY IS GREEN MARKETING IMPORTANT?

The question of why green marketing has increased in importance is quite simple and

relies on the basic definition of Economics:

Economics is the study of how people use their limited resources to try to satisfy

unlimited wants.

Thus mankind has limited resources on the earth, with which she/he must attempt to

provide for the worlds' unlimited wants. In market societies where there is "freedom of choice",

it has generally been accepted that individuals and organizations have the right to attempt to have

their wants satisfied. As firms face limited natural resources, they must develop new or

alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how

marketing activities utilize these limited resources, while satisfying consumers wants, both of

individuals and industry, as well as achieving the selling organization's objectives.

THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS

REDUCE WASTE HEALTHIER SAVES TIME SAVES MONEY GOOD FOR THE ENVIRONMENT


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WHY ARE FIRMS USING GREEN MARKETING?

. Five possible reasons for why firms are using green Marketing are:

1. Organizations perceive environmental marketing to be an opportunity that can be used toachieve its objectives;

2. Organizations believe they have a moral obligation to be more socially responsible;3. Governmental bodies are forcing firms to become more responsible;4. Competitors' environmental activities pressure firms to change their environmental

marketing activities; and

5. Cost factors associated with waste disposal, or reductions in material usage forces firms tomodify their behavior

1. OPPORTUNITIEit can be assumed that firms marketing goods with environmental characteristics will

have a competitive advantage over firms marketing non-environmentally responsible

alternatives.

There are numerous example of firms who have strived to become more

environmentally responsible, in an attempt to better satisfy their consumer needs.

McDonald's replaced its clam shell packaging with waxed paper because of increasedconsumer concern relating to polystyrene production and Ozone depletion.

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

Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy thedemands of firms for less environmentally harmful products.

This is not to imply that all firms who have undertaken environmental marketing activities

actually improve their behavior. In some cases firms have misled consumers in an attempt to

gain market share. In other cases firms have jumped on the green bandwagon without

considering the accuracy of their behavior, their claims, or the effectiveness of their products.


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2. SOCIAL RESPONSIBILITYMany 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. Firms in this

situation can take two perspectives;

1) They can use the fact that they are environmentally responsible as a marketing tool; or

2) They can become responsible without promoting this fact.

There are examples of firms adopting both strategies. Organizations like the Body Shop

heavily promote the fact that they are environmentally responsible. While this behavior is a

competitive advantage, the firm was established specifically to offer consumers environmentally

responsible alternatives to conventional cosmetic products. This philosophy is directly tied to the

overall corporate culture, rather than simply being a competitive tool.

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. While being concerned about

the environment, Coke has not used this concern as a marketing tool. Thus many consumers maynot realize that Coke is a very environmentally committed organization.

Another firm who is very environmentally responsible but does not promote this fact, at

least outside the organization, is Walt Disney World (WDW). WDW has an extensive waste

management program and infrastructure in place, yet these facilities are not highlighted in their

general tourist promotional activities.

SOME COMPANIES THAT USE GREEN MARKETING AS SOCIAL RESPONSIBILITY.


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3. GOVERNMENTAL PRESSUREAs 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,

1) Reduce production of harmful goods or by-products;

2) Modify consumer and industry's use and/or consumption of harmful goods; or

3) 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. Many by-products of production are controlled through the issuing of various

environmental licenses, thus modifying organizational behavior. In some cases governments try

to "induce" final consumers to become more responsible. For example, some governments have

introduced voluntary curb-side recycling programs, making it easier for consumers to act

responsibly. In other cases governments tax individuals who act in an irresponsible fashion. For

example in Australia there is a higher gas tax associated with leaded petrol.

Thus governmental attempts to protect consumers from false or misleading claims should

theoretically provide consumers with the ability to make more informed decisions. In Australiawhere regulations have affected many companies, one unintended casualty was an advertisement

for the Federal Government's environmental labeling program "Environmental Choice." This ad

was deemed to breach the TPC's guidelines, as it implied that only products with the logo were

environmentally responsible.

4. COMPETITIVE PRESSUREAnother major force in the environmental marketing area has been firms' desire to

maintain their competitive position. In many cases firms observe competitors promoting their

environmental behaviors and attempt to emulate this behavior. In some instances this

competitive pressure has caused an entire industry to modify and thus reduce its detrimental

environmental behavior. For example, it could be argued that Xerox's "Revive 100% Recycled


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paper" was introduced a few years ago in an attempt to address the introduction of recycled

photocopier paper by other manufacturers. In another example when one tuna manufacture

stopped using driftnets the others followed suit.

5. COST OR PROFIT ISSUESFirms may also use green marketing in an attempt to address cost or profit related issues.

Disposing of environmentally harmful by-products, such as polychlorinated biphenyl (PCB)

contaminated oil are becoming increasingly costly and in some cases difficult. Therefore firms

that can reduce harmful wastes may incur substantial cost savings. When attempting to minimize

waste, firms are often forced to re-examine their production processes. In these cases they often

develop more effective production processes that not only reduce waste, but reduce the need for

some raw materials. This serves as a double cost savings, since both waste and raw material are

reduced.

In other cases firms attempt to find end-of-pipe solutions, instead of minimizing waste. In

these situations firms try to find markets or uses for their waste materials, where one firm's waste

becomes another firm's input of production. One Australian example of this is a firm who

produces acidic waste water as a by-product of production and sells it to a firm involved in

neutralizing base materials.

The last way in which cost or profit issues may affect firms' environmental marketing

activities is that new industries may be developed. This can occur in two ways:

1) A firm develops a technology for reducing waste and sells it to other firms; or

2) A waste recycling or removal industry develops.


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SOME PROBLEMS WITH GOING GREEN

No matter why a firm uses green marketing there are a number of potential problems that

they must overcome.

1. One of the main problems is that firms using green marketing must ensure that their

activities are not misleading to consumers or industry, and do not breach any of the

regulations or laws dealing with environmental marketing. For example marketers in the US

must ensure their green marketing claims can meet the following set of criteria, in order to

comply with the FTC's guidelines. Green marketing claims must;

Clearly state environmental benefits; Explain environmental characteristics; Explain how benefits are achieved; Ensure comparative differences are justified; Ensure negative factors are taken into consideration; and Only use meaningful terms and pictures

2. Those who modify their products due to increased consumer concern must contend withthe fact that consumers' perceptions are sometimes not correct. Take for example the

McDonald's case where it has replaced its clam shells with plastic coated paper. There is ongoing

scientific debate which is more environmentally friendly. Some scientific evidence suggests that

when taking a cradle-to-grave approach, polystyrene is less environmentally harmful. If this is

the case McDonald's bowed to consumer pressure, yet has chosen the more environmentally

harmful option.

When firms attempt to become socially responsible, they may face the risk that the

environmentally responsible action of today will be found to be harmful in the future. Take for

example the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs

(hydrofluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME

(dimethyl ether) as an aerosol propellant, which may also harm the ozone layer. Given the


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limited scientific knowledge at any point in time, it may be impossible for a firm to be certain

they have made the correct environmental decision. This may explain why some firms, like

Coca-Cola and Walt Disney World, are becoming socially responsible without publicizing the

point. They may be protecting themselves from potential future negative backlash; if it is

determined they made the wrong decision in the past.

While governmental regulation is designed to give consumers the opportunity to make

better decisions or to motivate them to be more environmentally responsible, there is difficulty in

establishing policies that will address all environmental issues. For example, guidelines

developed to control environmental marketing address only a very narrow set of issues, i.e., the

truthfulness of environmental marketing claims. If governments want to modify consumer

behavior they need to establish a different set of regulations. Thus governmental attempts toprotect the environment may result in a proliferation of regulations and guidelines, with no one

central controlling body.

3. Reacting to competitive pressures can cause all "followers" to make the same mistake as

the "leader." A costly example of this was the Mobil Corporation who followed the competition

and introduced "biodegradable" plastic garbage bags. While technically these bags were

biodegradable, the conditions under which they were disposed did not allow biodegradation to

occur. Mobil was sued by several US states for using misleading advertising claims. Thus blindly

following the competition can have costly ramifications.

The push to reduce costs or increase profits may not force firms to address the important

issue of environmental degradation. End-of-pipe solutions may not actually reduce the waste but

rather shift it around. While this may be beneficial, it does not necessarily address the larger

environmental problem, though it may minimize its short term affects. Ultimately most waste

produced will enter the waste stream, therefore to be environmentally responsible organizations

should attempt to minimize their waste, rather than find "appropriate" uses for it.


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STRATEGIES FOR SUCCESSFUL GREEN MARKETING

Many marketers now grow their businesses by addressing specific environmental issues

that are most relevant to their consumers. In the process, they save money and enhance corporate

and brand imagery while ensuring future sales for their products. Use the following strategies to

create profitable new or improved products and packages that balance consumers needs with

environmental considerations.

1. Minimize Direct Environmental Impact

2. Use Sustainable Sources of Raw Material

The prospect of rapidly depleting stocks of natural resources and the resulting reality of

price increases create opportunities for alternative technologies and new efficiency with product

design. For example, paper doesnt have to come from trees; in fact, alternative sources m ay be

preferable. Promising new sources include kenaf, a fast-growing bamboo grown in the southern

US, and hemp, which is naturally pest resistant, can be bleached with peroxide instead of

chlorine, and produces a fiber more versatile than fiber from trees.

3. Source-Reduce Products and Packaging

In the Pollution Prevention Act of 1990, the United States Congress declared "that

pollution should be prevented or reduced at its source whenever feasible." Since the cost

savings associated with source reduction are roughly parallel to the amount of packaging

eliminated, the tenets of this law are not only good for the environment, they are good for

business. Less packaging also means less energy required for manufacturing and transportation

and less pollution from the production of packaging itself.

To source-reduce, consider light weighting products and packages. For example, S.C.

Johnsons steel aerosol cans use 35 percent less tin than the cans of the late 1980s. Concentrate

products. Super concentrated laundry detergents, including Lever Brothers Wisk Power Scoop,

now account for half of the $2.1-billion powder laundry cleaners sold in America.


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Package in bulk for refilling. Refills used by all-purpose cleaners, to use less packaging

per product and save consumers money. Multi-purpose products such as shampoo-and-

conditioner-in-one also help to cut down on duplication.

4. Conserve Natural Resources, Habitats, and Endangered Species

5. Use Recycled Content

According to the Environmental Defense Fund, recycling:

cuts pollution and conserves natural resources conserves energy

can be cost-competitive with land-filling and incineration if sensibly designed andimplemented

creates jobs and reduces costs in manufacturing sectors that are an important part of oureconomy.

With the help of innovative technologies, the use of recycled content in consumer

products has skyrocketed in the last decade. Products that formerly boasted 10 percent recycled

content may now incorporate as much as 100 percent post-consumer content. Where even as

recently as five years ago, recycled content was limited mostly to paper, glass, metals, and some

plastic laundry bottles, now an entire array of high quality products including clothing, garden

furniture, paint, and motor oil are closing the loop.

6. Make Products Energy Efficient

Individuals directly consume about 40 percent of the energy used in the U.S. for such

things as powering cars, lighting, heating and cooling homes, and running appliances. In the

process, they contribute about 40,000 pounds of carbon dioxide emissions a year. However,

many thousands of pounds can be eliminated by simple actions. In fact, the California Energy

Commission estimates that cost-effective investments could reduce total U.S. electricity demand

by 40 percent to 75 percent.

7. Maximize Consumer and Environmental Safety


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Scientific data and empirical evidence continue to link various illnesses with consumer

products made from synthetic chemicals. According to the EPA, formaldehyde in wood paneling

causes wheezing, organic gases in carpeting cause liver damage, perchloroethylene used to dry-

clean clothing causes headaches, and VOCs (volatile organic compounds) in cleaning products

cause nausea. Many illnesses can be traced to indoor pollution, which has been proven to be ten

times more toxic than its outdoor counterpart.

Consumers concerns about product safety translate into opportunities for alternative

home construction and cleaning products.

8. Make Products More Durable

As demonstrated by historical sales pitches for Maytag Washers and Volvo Cars,

consumers value durable appliances and automobiles. Thanks to environmental concerns, long

product life will increasingly become a source of added value and an indicator of quality and

convenience in many other industries as well.

9. Make Products and Packaging Reusable or Refillable

The throwaway convenience culture is making way for reuse and refilling as alternatives

to land-filling, incineration, and even recycling.

10. Design Products for Remanufacturing, Recycling, and Repair

Landfill disposal bans are in force across the nation for such highly toxic items as lead-acid

batteries, tires, used motor oil, paints, and refrigerators. Due to such legislative pressures as well

as extended producer responsibility laws in Europe, a growing number of manufacturers now

design their products for remanufacture, recycling, and repair, and help set up the infrastructures

for doing so. Smart marketers are turning these imperatives into opportunities to save money,

enhance quality and get closer to their customer.

11. Make Products Safe for Disposal

12. Make Products and Packaging Compostable


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In nature, everything is recycled. Waste for one organism becomes food for another.

According to EPA, 40 percent of our solid wastes are biodegradable materials that can be

effectively composted into humus, an organic matter that can enrich gardens and agricultural

soils. This has important implications for businesses, and a number of innovative designers are

developing products with this idea in mind.


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(CASE STUDY

ANALYSIS)


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CASE STUDY OF COCA COLA

For several years its facility in Brampton, Ontario, one of its largest in North America, has

been transforming its manufacturing and distribution to save energy, reduce carbon footprint,

water usage, and material usage. In this case study we look at the goals, implementation, and

progress of the programs put in place by this $20 billion food and beverage giant.

Coca-Colas 600,000 square foot facility in Brampton houses the plant, management team, and

warehouse. It has three plastic bottling lines, including a Dasani line; one bag-in-box line

producing syrup for national accounts; one pre-mix line for the restaurant business, and one

canning line. There are 650 plant operators, sales and equipment service representatives, truck

drivers, warehouse employees, management and staff.

Located within the eco-business zone around Toronto Pearson International Airport, Coca-

Cola in Brampton joins the local community of businesses to collaborate on green projects.

Under the stewardship ofPartners in Project Green, businesses participate in programs to

reduce energy and resource costs, uncover new business opportunities, and address everyday

operational challenges in a green and cost-effective manner. Other companies in this program

include Xerox, Unilever, FedEx, Hewlett-Packard, Walmart, Kraft, and LoyaltyOne.

Social and environmental risks are now one of seven business risk categories and are formally

embedded into Coca-Colas enterprise risk management process. This in turn guides the

business processes, including annual planning, three-year business planning, and internal audit

planning. As a result, sustainability decisions are becoming an integral part of the business

decision making, commercialization and capital management processes, the three-year

business planning process, and customer and supplier relationships. Highlighted here are some

of their goals, implementation, and progress.\

Energy Conservation and Climate Change

The goal is to reduce the overall carbon footprint of our business operations by 15 percent by

2020, as compared to the 2007 baseline.
http://www.thecoca-colacompany.com/ourcompany/index.htmlhttp://www.thecoca-colacompany.com/ourcompany/index.htmlhttp://www.partnersinprojectgreen.com/http://www.carbon49.com/2011/04/unilever%e2%80%99s-triple-win-sustainability-strategy/http://www.carbon49.com/2011/02/how-hp-canada-profits-from-environmental-commitment/http://www.carbon49.com/2010/06/walmart-sustainability-report-%e2%80%94-canadian-operation-details/http://www.carbon49.com/2010/06/canada%e2%80%99s-largest-solar-rooftop-case-study-part-one/http://www.thecoca-colacompany.com/citizenship/http://www.thecoca-colacompany.com/citizenship/http://www.thecoca-colacompany.com/citizenship/http://www.carbon49.com/2010/03/ontario-launches-mandatory-greenhouse-gas-reporting/http://www.carbon49.com/2010/03/ontario-launches-mandatory-greenhouse-gas-reporting/http://www.thecoca-colacompany.com/citizenship/http://www.carbon49.com/2010/06/canada%e2%80%99s-largest-solar-rooftop-case-study-part-one/http://www.carbon49.com/2010/06/walmart-sustainability-report-%e2%80%94-canadian-operation-details/http://www.carbon49.com/2011/02/how-hp-canada-profits-from-environmental-commitment/http://www.carbon49.com/2011/04/unilever%e2%80%99s-triple-win-sustainability-strategy/http://www.partnersinprojectgreen.com/http://www.thecoca-colacompany.com/ourcompany/index.html


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The Brampton operation converted to an energy efficient lighting system that uses 50% less

energy and provides 50% more light. These new fixtures also operate on motion sensors for

even greater savings.

In the distribution channels, the company has installed 2000 EMS-55 energy managementdevices in vending machines. These devices activate lights and adjust cooling based on use,

leading to improved energy efficiency by up to 35 percent.

In addition, the company installed 1,400 climate-friendly coolers at the 2010 Olympic Games

to reduce greenhouse gas emissions by approximately 5,600 metric tons, the equivalent of

taking about 1,200 cars off the road for an entire year.

Finally, 37 heavy-duty hybrid delivery trucks and tractors were introduced to the Canadian

fleet in 2008 and 2009. These vehicles improve fuel consumption and reduce emissions by

about one third and create less noise and emissions when stopped in traffic.

Water Usage

The goal is to establish a water-sustainable operation to minimize water use and have a water-

neutral impact on the local communities by safely returning the amount of water used in the

beverages to the local communities and environment.

A 20% reduction in water use, accompanied by an efficiency ratio of 1.62 litres was achieved

between 2005 and 2007. Plant teams focused on: 1) reducing the water use ratio; and 2)

recycling the water used in operations (wastewater treatment).

To help reach its water usage goals the company developed and used a water conservation

toolkit to identify actions that would conserve water. It implemented recycle and reclaim water

loops through the plants membrane water treatment system. And it installed a new osmotic

water recovery system designed to reclaim nearly 11 million litres of water for production. In

addition water based container rinsers were replaced with ionized air rinsers and the lubrication

system on all production lines was retrofitted to discontinue water use, saving approximately

28 million litres of water annually.

Sustainable Packaging and Recycling
http://en.wikipedia.org/wiki/Reverse_osmosis#Water_and_wastewater_purificationhttp://en.wikipedia.org/wiki/Reverse_osmosis#Water_and_wastewater_purificationhttp://en.wikipedia.org/wiki/Reverse_osmosis#Water_and_wastewater_purificationhttp://en.wikipedia.org/wiki/Reverse_osmosis#Water_and_wastewater_purification


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The goals are to: (1) avoid the use of 100,000 metric tons of packaging materials between 2007

and 2010, (2) recycle or recover more than 90% of waste materials at production facilities by

2010, (3) increase recycled content in plastic (PET) bottles to an average of 10% by 2010.

For goal (1), Dasani PET bottle weight was reduced by 30%, saving 493 metric tons of PET.Plastic twist-off closures were designed 24% lighter, saving 235 metric tons of resin. Also,

lighter fibreboard was developed for Minute Maid products saving 124 metric tons of

fiberboard annually. The company also launched the PlantBottle, a 100% recyclable packaging

made with up to 30% plant-based waste materials.

Goal (2) was achieved in 2009, ahead of schedule. The team also implemented a centralized

recycling initiative that captures broken, damaged or expired product packaging from satellite

facilities to be baled and sold to an industrial recycler.

Investments were made to achieve green innovations in recycling technologies, renewable

packaging materials, vending and cooling equipment controls and design, and hybrid trucks.

Among the tools used was a proprietary packaging database to identify opportunities for future

packaging material reductions and to benchmark performance against the global Coca-Cola

system. See here for more on sustainable packaging.

The Coca-Cola operation in Brampton has shown that there are advantages to thinking outside

the box. By respecting the finite nature of the earths water and resources the operation is

implementing innovative business practices and contributing to the sustainability of

communities while meeting the expectations of its stakeholders
http://www.carbon49.com/2010/05/sustainability-a-top-supply-chain-challenge-capgemini/http://www.carbon49.com/2010/05/sustainability-a-top-supply-chain-challenge-capgemini/


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SWOT ANALYSIS OF COCA COLA

Strengths

Worlds leading brand.Large scale of operations.

Robust revenue growth in three segment

Strong international branding

Diverse range of products (eg: Diet Coke, Vanilla Coke, Cherry Coke, Coke Zero etc)

Weaknesses

Negative publicity

Sluggish performance in North America

Decline in cash from operating activities

Not aggressive product development and diversification

Pepsi issued a challenge to coke, known as the Pepsi challenge. As part of the challenge,

participants were blindfolded and given the chance to taste both coke and Pepsi. The

average participant chose Coke most of the time. Therefore this is more of a strenth

Opportunities

Acquisitions Intense competition

Growing bottled water market

Growing Hispanic population in US

Diversify into new lines of products

ThreatsIntense competition

Dependence on bottling partners

Sluggish growth of carbonated beverages

New and fierce competition may arise


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GREEN MARKETING STRATEGIES IMPLEMENTED BY COCA COLA

Energy Conservation and Climate Change

The goal is to reduce the overall carbon footprint of our business operations by 15 percent by

2020, as compared to the 2007 baseline.

The Brampton operation converted to an energy efficient lighting system that uses 50% less

energy and provides 50% more light. These new fixtures also operate on motion sensors for

even greater savings..

In addition, the company installed 1,400 climate-friendly coolers at the 2010 Olympic Games

to reduce greenhouse gas emissions by approximately 5,600 metric tons, the equivalent of

taking about 1,200 cars off the road for an entire year.

Finally, 37 heavy-duty hybrid delivery trucks and tractors were introduced to the Canadian

fleet in 2008 and 2009. These vehicles improve fuel consumption and reduce emissions by

about one third and create less noise and emissions when stopped in traffic.

Water Usage

The goal is to establish a water-sustainable operation to minimize water use and have a water-

neutral impact on the local communities by safely returning the amount of water used in the

beverages to the local communities and environment.

To help reach its water usage goals the company developed and used a water conservation

toolkit to identify actions that would conserve water. It implemented recycle and reclaim water

loops through the plants membrane water treatment system.

Sustainable Packaging and Recycling

The goals are to: (1) avoid the use of 100,000 metric tons of packaging materials between 2007

and 2010, (2) recycle or recover more than 90% of waste materials at production facilities by

2010, (3) increase recycled content in plastic (PET) bottles to an average of 10% by 2010.
http://www.carbon49.com/2010/03/ontario-launches-mandatory-greenhouse-gas-reporting/http://www.carbon49.com/2010/03/ontario-launches-mandatory-greenhouse-gas-reporting/


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. The team also implemented a centralized recycling initiative that captures broken, damaged

or expired product packaging from satellite facilities to be baled and sold to an industrial

recycler.

Investments are made to achieve green innovations in recycling technologies, renewablepackaging materials, vending and cooling equipment controls and design, and hybrid trucks.

Among the tools used was a proprietary packaging database to identify opportunities for future

packaging material reductions and to benchmark performance against the global Coca-Cola

system.


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CONCLUSION OF THE RESEARCH

1. Organizations used green marketing as a competitive advantage throughdifferentiation of products by using green branding,green labeling and bysorting, Recycling and recovering of waste products.

2. Green marketing is important as implementing green marketing in organizations -REDUCE WASTE, HEALTHIER , SAVES TIME & MONEY and GOOD FOR THE

ENVIRONMENT

3. Reasons for which companies are using green marketing strategies werefound to be-

Organization perceive environmental marketing to be an opportunity that can beused to achieve its objectives.

Organizations believe they have a moral obligation to be more sociallyresponsible.

Governmental bodies are forcing firms to become more responsible. Competitors' environmental activities pressure firms to change their

environmental marketing activities.

Cost factors associated with waste disposal, or reductions in material usage forcesfirms to modify their behavior.

4. Strategies for successful green marketing can be- Minimize Direct Environmental Impact Use Sustainable Sources of Raw Material Use Recycled Content Make Products Energy Efficient Maximize Consumer and Environmental Safety Make Products More Durable Make Products and Packaging Reusable or Refillable Make Products Safe for Disposal Make Products and Packaging Compostable


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SUGGESTIONS

There is a long list of easy steps business can take to be a better environmental steward, increase

your profile among potential and existing customers, and in many cases, save money. Here are a

few examples:

1. Use less, pay less

. Turn the lights off in offices and conference rooms, monitors and projectors when not in use;

consider undergoing facilities retrofits, including installing water-saving faucets and toilets, light

sensors, and energy monitors.

2. Print less or print in more environmentally sound ways

Internally, minimize what you print and use FSC-certified paper and recyclable toner when you

must. I

3. Hold remote meetings instead of traveling

Whether you have multiple office locations or collaborate with partners in different locations,

using web-conferencing tools like Skype instead of traveling by airplane or car can save you big.

And it can dramatically reduce your carbon footprint!

4. Use greener modes of transport

If you must travel, use public transport, procure energy-efficient company vehicles (especially

with rising fuel prices), and carpool.

5. Buy greener office supplies

Better options for office supplies are available at competitive prices.

6. Buy carbon offsets or invest in renewable energy credits


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If you are not able to meet you goals for reducing your carbon footprint, consider purchasing

carbon offsets or renewable energy credits. These strategies allow you to mitigate your

environment impact while also providing a good opportunity to communicate your values to

your customers.

Advertising

1. Use email and social media instead of paper newsletters and direct mail

Clearly, we have an opinion on this one, but we feel it is justified! And as an iContact customer,

you are already a step ahead. Email marketing has a higher return on investment, gives you data

to help you improve your marketing, and is much better for the environment (a 98 percent

reduction in carbon footprint compared with direct mail!).

2. Print all marketing materials on recycled paper

Some business still pair email marketing with traditional print mailings. If you are in this camp,

make sure to use recycled paper and vegetable inks. Avoid those high-sheen glossy prints that

smell like a chemical factory! And make sure to indicate on the mailing that you used recycled

paper and sustainable inks.The customers who dont care wont take much notice, but those who

do care will remember.

3. List your product/website in a variety of green directories

. Advertising in green directories can help you attract green-conscious customers and advance

your search engine optimization efforts.

Transparency

As stated above, consumers want solutions to their problems that are environmentally sound, not

just green products. And some customers are skeptical of green marketing because they are wary

of greenwashing.


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REFERENCES

Journals:

1. Amine, L.S. (2003), "An integrated micro- and macro-level discussion of global greenissues: it isn't easy being green", Journal of International Management, Vol. 9 No.4,pp.373-94

2. Crane, A. (2000), "Facing the backlash: green marketing and strategic reorientation in the1990s",Journal of Strategic Marketing, Vol. 8 No.3, pp.277-96.

3. Johri, L.M., Sahasakmontri, K. (1998), "Green marketing of cosmetics and toiletries inThailand",Journal of Consumer Marketing, Vol. 15 No.3, pp.265-81

4. McDaniel, S.W., Rylander, D.H. (1993), "Strategic green marketing", Journal ofConsumer Marketing, Vol. 10 No.3, pp.4-10.

5. Martin, B., Simitiras, A.C. (1995), "The impact of green product lines on theenvironment",Marketing Intelligence & Planning, Vol. 13 No.4, pp.16-23.

6. Simms, C. (1992), "Green issues and strategic management in the grocery retail sector",International Journal of Retail & Distribution Management, Vol. 20 No.1, pp.32-42.


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Websites:

1. http://www.greenmarketing.com/green_marketing_book2. http://egj.lib.uidaho.edu/egj02/polon01.html3. http://www.awea.org/policy/greenprins.html4. http://www.sustainablemarketing.com/5. http://www.onpoint-marketing.com/green-marketing.htm6. http://www.ecomall.com/greenshopping/greencorner.htm7. http://www.tompaine.com/articles/2006/11/03/bright_green_marketing_challenge.php8. http://www.plentymag.com/features/2006/11/green_marketing_machine.php9. http://blog.futurelab.net/2007/02/green_marketing_leverages_soci.html10.http://www.kidsfirst.org/kidsfirst/html/info/greenm.htm11.http://marketinggreen.wordpress.com/2007/01/23/green-marketing-through-behavioral-

targeting/

12.http://www.americanchronicle.com/articles/viewArticle.asp?articleID=21141

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