Green Marketing in India –Way ahead to sustainability

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Transcript Green Marketing in India –Way ahead to sustainability

Green Marketing in India –
Way ahead to sustainability
Shifali Mandhania
05/05/2012
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Objectives of the study
 1) To introduce the terms and concepts of green
marketing;
 2) To discuss why going green is important;
 3) To know why the manufacturers and marketers launch
eco-friendly products and are adopting a green
marketing philosophy;
 4)To mention some of the problems with green
marketing.
 5)Find out ways to improve consumer appeal for
environmentally preferable products through different
marketing strategies
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Green Marketing
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
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Green Products
• Products those are recyclable, reusable and biodegradable,
• Products with natural ingredients,
• Products containing recycled contents, non-toxic
chemical,
• Products contents under approved chemical,
• Products that do not harm or pollute the environment,
• Products that will not be tested on animals,
• Products that have eco-friendly packaging i.e. reusable,
refillable containers etc.
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Green Marketing – adopts by the
firms
Opportunities ( Surf Excel and LG)
Government Pressure (Plastic ban)
Competitive Pressure (Xerox's "Revive 100%
Recycled paper“)
Social Responsibility (HSBC, Walt Disney,
Coca Cola)
Cost or Profit Issues
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Ginsberg and Bloom :Companies can
be classified
1.Lean Green- These companies adopt the green practices but
they do not focus to publicise these initiatives.
2. Defensive Green-This kind of marketer use green marketing
as a precaution to avoid the crisis situation or to counter the
competition..
3. Shaded Green- The companies those adopt shaded green
strategy invest in long-term, environmentally friendly processes
that require a significant financial and nonfinancial dedication.
4. Extreme Green- Extreme green adopt green marketing mix in
the holistic manner.
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Global Trends
•Pressure on governments to lead green regulation
• Increased desire to buy green
• Transparency and choice driving buyer behaviour
• Consumers receptive to green advertising
• Interest in big-ticket green products
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Challenges in green marketing
Need for Standardization
New Concept
Green Myopia
Costly technology
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Possible requirements Government could
put in place
■ Most Important ■ 2nd most important
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Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland
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Plan to spend more, less, or the same
amount on “green” products and
services?
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Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland
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How much more, in percentage terms,
are you willing to spend on a product
because it is green?
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Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland
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What do you think are the biggest challenges to
purchasing green products or services?
■ Biggest Challenge ■ Second Biggest Challenge
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Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland
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Which of the following has the greatest impact on
likelihood ?
■ Second Biggest Challenge ■ Biggest Challenge
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Source : GLOBAL DATA: 2011 –survey conducted by by Landor Associates and Penn Schoen Berland
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Key findings
 Consumers are increasingly concerned about environmental issues,
particularly energy use
 Consumers want to buy from green companies and plan to spend
more on green products
 Packaging influences green purchasing
 Consumers are less likely to cite hurdles to buying green compared to
last year; but price and lack of choice remain challenges
 Consumers are more likely to purchase green products in the
household, grocery, personal care, and packaged food and beverage
industries. Auto and tech are poised for green growth
 Consumers are looking for public leadership on green innovation
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Untapped potential
 A dismal 16% of businesses in India in the food
and beverage sector and 18% in the clothing
and footwear industry produce or trade Green
products.
 The home electronics segment, however, clocks
a more impressive 60%. In addition, the vast
majority (76%) either do not have a policy or
guideline to minimize their impact on the
environment in place or are failing to clearly
communicate they have one.
(Source :TÜV SÜD Asia Pacific)
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Green Products in India
I
Wipro Infotech (Green It) was India's first company to launch environment
friendly computer peripherals.
Samsung, was the first to launch ecofriendly mobile handsets (made of
renewable materials) – W510 and F268- in India.
Oil and Natural Gas Corporation Ltd (ONGC), India’s largest oil company,
has introduced energy-efficient Mokshada Green Crematorium, which saves
60 to 70% of wood and a fourth of the burning time per cremation.
Reva, India’s very-own Bangalore-based company was the first in the world
to commercially release an electric car.
Honda India introduced its Civic Hybrid car
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Green Products in India
ITC has introduced Paperkraft, a premium range of ecofriendly business paper.
.
IndusInd Bank installed the country’s first solar-powered
ATM and thus brought about an eco-savvy change in the
Indian banking sector.
Suzlon Energy manufactures and markets wind
turbines, which provide an alternative source of energy
based on wind power. This green initiative taken by the
company is extremely important for reducing the carbon
footprint.
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Various Strategies taken by Several
Companies across
Nokia Corporation
BSNL
Indian Toy Industry
OORJA
Green Shirt by Several Indian Companies
Tamilnadu Newsprint and Papers Limited (TNPL)
was
awarded the Green Business Leadership Award in the pulp and paper sector for the year 2009-10,
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These are some of the success stories but if you look at it from Indian
consumers (or consumption pattern) perspective-
 There is very less uptake of solar batteries and
equipments (cooker etc).
 Recently launched Samsung solar mobile Guru
is not finding foot in market due to
inconvenience in solar charging.
 Battery operated LG TV failed in Indian market
to due to sound quality
 Very less consumption of CFL bulbs due to high
cost.
 Consumption of plastic bags is very high in both
rural and urban sector etc.
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Factors differentiating the Indian consumers from
consumers of developed countries India is a cost driven market
 Low level of awareness
 Degree of New product acceptance
 Less developed means of communication, Language
barriers
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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINK
AMONG PLAYERS

CONSUMER
PRODUCER
GREEN ENVIRONMRNT
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STATE
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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-
Producer role
Companies must remove these five barriers—namely,
 Lack of awareness, negative perceptions, distrust, high
prices, and low availability.
 Increase consumers’ awareness of green products,
improve consumers’ perceptions of eco-products’ quality,
strengthen consumers’ trust, lower the prices of green
products, and increase these products’ availability.
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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-
Consumer Role
 Conscious effort to educate themselves on the green advantages
and make an informed choice. Should look at the Bigger picture and
not be guided purely by price and personal gains.
 Consumers should actively participate in green initiatives launched
by Corporates, government and NGOs.
 Consumers should shed inhibitions and preconceived notions about
not using eco-friendly products. They should understand that every
positive step contributes to the cause and shed the mentality that
they alone cannot bring about the change.
 Abide by the green regulations and not be guided by personal short
term gains.
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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT-
Government Role

There has to be a stimulus provided by the Government to encourage and support
the manufacturers who are manufacturing green products by providing subsidies.
 Financial assistance should be given in the form of easy loan facility to equip for
manufacturing green products.

Tax incentives or Tax holidays will also help the small and medium scale
manufacturers as green marketing is costly.

Awards and recognition should be given to those who successfully practice green
marketing which becomes a motivating factor for others to implement it.

Social advertising to be carried out on a large scale through various medias to
promote environment friendly practices, to promote the consumption of green
products.
 Promotion of Eco-mark or Eco-labeling has to be done to create awareness not only
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amongst manufacturers but also consumers
Conclusion
 Green marketing helps in the effective outcomes like cost cutting,
employee satisfaction, waste minimisation, society welfare for the
companies as well for society also.
 Green products and services not only help tackle pertinent
environment issues but make genuine business sense. Over the
next five years, this is only going to intensify. With a comparably
limited number of Green products and services currently on the
market, firms that act quickly to capitalise on this growing trend will
reap significant rewards
 Only thing required is the determination and commitment from the all
the stakeholders of the companies. It is the right time to adopt the
concept of sustainable development in the marketing mix of the
companies and integrate them to save the planet from the upcoming
risk.
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THANK YOU
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