GREEN MARKETING IN INDIA CHALLENGES AND ISSUES

R.RAVIMOHAN. B.Com., P.G.D.C.A.,P.G.D.C.S., M.B.A.,M.C.P.,P.G.D.B.I.,(Ph.D)

Ph.D Research Scholar at Bharathiar University, Coimbatore.
Associate Professor, Veltech Business-School, Veltech University, Avadi, Chennai.
ABSTRACT

In the modern era of globalization, it has become a challenge to keep the customers as
well as consumers in fold and even keep our natural environment safe and that is the
biggest need of the time. Environmental pollution is a buzz word in today’s business
environment. Consumers are also aware of the environmental issues like; global
warming and the impact of environmental pollution. Green marketing is a phenomenon
which has developed particular important in the modern market and has emerged as an
important concept in India as in other parts of the developing and developed world, and
is seen as an important strategy of facilitating sustainable development. In this research
paper, main emphasis has been made of concept, need and importance of green
marketing. Data has to be collected from multiple sources of evidence to understand the
importance of green and sustainability management, in addition to books, journals,
websites, and news papers. The Paper aims at finding out what actually Green
Marketing is all about and how can a business firm be more competitive by using green
marketing strategies to gain a competitive edge over others. It explores the main issues
in adoption of green marketing practices. The paper describes the current Scenario of
Indian market and explores the challenges and opportunities businesses have with
green marketing. Why companies are adopting it and future of green marketing and
concludes that green marketing is something that will continuously grow in both practice
and demand.

KEYWORDS

Green Marketing, Need for Green Marketing in India,4 Ps of Green Marketing

INTRODUCTION

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‖. Thus we can say that Green Marketing involves: - Manufacturing
and providing products to the consumers which are of good quality and at the same
time not harmful to them even in long run. - Use the resources for development in such
a manner which will enable the future generations to avail the resources to meet their
needs leading to Sustainable Development. - Framing and implementing policies which
will not have any detrimental effect on the environment i.e. at present as well in future. 1

GROWTH OF GREEN MARKETING

Thus "Green Marketing" refers to holistic marketing concept wherein the production,
marketing consumption an disposal of products and services happen in a manner that is
less detrimental to the environment with growing awareness about the implications of
global warming, non-biodegradable solid waste, harmful impact of pollutants etc. Both
marketers and consumers are becoming increasingly sensitive to the need for switch in
to green products and services. While the shift to "green" may appear to be expensive
in the short term, it will definitely prove to be indispensable and advantageous, cost-
wise too, in the long run. The first wave of Green Marketing occurred in the 1980s. 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 Ottoman. 2

LITERATURE REVIEW

Peattie and Crane (2005) claims that despite the early development, it was only in the
late 1980‘s that the idea of Green Marketing actually made an appearance because of
the consumers growing interest in green products. 3 Green marketing was given
prominence in the late 1980s and 1990s after the proceedings of the first workshop on
Ecological marketing held in Austin, Texas (US), in 1975. 4 Several books on green
marketing began to be published thereafter. The green marketing has evolved over a
period of time. According to Peattie (2001), the evolution of green marketing has three
phases.5 First phase was termed as Ecological" green marketing, and during this period
all marketing activities were concerned to help environment problems and provide
remedies for environmental problems.6 Second phase was "Environmental" green
marketing and the focus shifted on clean technology that involved designing of
innovative new products, which take care of pollution and waste issues. 7 Third phase
was "Sustainable" green marketing. It came into prominence in the late 1990s and early
2000.8 During 1990s, the concern for environment increased and resulted in to
increasing challenges for the companies (Johri and Sahasakmontri, 1998). Dutta, B.
(2009, January) in his article on Green Marketing titled Sustainable Green Marketing
The New Imperative published in Marketing Mastermind states that Green Marketing
involves developing good quality products which can meet consumer needs and wants
by focusing on the performance, pricing and convenience in an environment-friendly
way.Barkar is of the view that, Companies need to believe first that Green Marketing
„can work‟ and make diligent efforts to make necessary product improvements, which
deliver performance, and are marketable and profitable. Unruh, G. And Ettenson, R.
(2010) in their research article titled, Growing Green: Three smart paths to developing
sustainable products. Published in Harvard Business Review, is for executives who
believe that developing green products make sense for their organization and need to
determine the best path forward.9

NEED FOR GREEN MARKETING

In the present scenario, challenge is to keep the customers as well as consumers in fold
and even keep our natural environment safe – which is the biggest need of the time.
Companies may loose many loyal and profitable customers and consumers due to
absence of green management.10 In today‘s innovative business world of high
technology due to growing community and consumer interests in green and socially
responsible products, increased community pressure on companies to internalize
externalities, such as health issues, neighborhood amenity, climate change;
environmental and governmental legalizations and initiatives; innovative technologies
and approaches of dealing with pollution, improved resource and energy efficiency, and
to retain old (loyal and profitable) customers and consumers, it is very much urgent to
implement green marketing.11 Further green management produces new environment
friendly customers which lead to increase in sales and profits of an organization that
leads to growth and development of business; it also leads to good public image of the
organization. In the present times when the government regulations around the globe
are very strict and the whole world is talking about global warming ,climate change and
environment protection the companies would be left with no option but to adopt green
marketing otherwise it might be too late to survive in the greener world. 12 The
consumers world over in general and India in particular are increasingly buying energy
efficient products. In a nutshell most of the companies are venturing into green
marketing because of the following reasons: In India, around 25% of the consumers
prefer environmental-friendly products, and around 28% may be considered healthy
conscious. Therefore, green marketers have diverse and fairly sizeable segments to
cater to. Many companies have started realizing that they must behave in an
environment-friendly fashion and believe both in achieving environmental objectives as
well as profit related objectives. 13

Various regulations recently framed by the government to protect consumers and the
society at large led to the adoption of Green marketing as a compulsion rather than a
choice. For example, the ban of plastic bags in many parts of the country, and
prohibition of smoking in public areas, etc. Many companies take up green marketing to
maintain their competitive edge.14

GREEN MARKETING –GETTING SUCCESS

To be successful green marketing companies there are a few fundamental rules that will
go a long way in shaping the future of the business in the coming years. The
fundamental strategy is to use the Four P's suitably modified to meet the needs of
Green Marketing, but there are a few points that are needed to be stressed on before
embarking on Strategy.15 They are:
1. Knowing thy Customer: Means making sure that the consumer is aware of and
concerned about the issues that your product attempts to address, without which
success in green marketing will be difficult to achieve. 16
2. Educating thy customer: Means educating the people the reasons as to whatever
you're doing is not only to protect the environment, but also matters of letting them know
why it matters. Otherwise, for a significant portion of your target market, it's a case of
"So what?", ―Does it matter to me?” and your green marketing campaign goes
nowhere.17
3. Genuineness & Transparency to thy customer: It shows that a) In reality you are
actually practicing, what you claim to be doing in your green marketing campaign and b)
your business policies are in lieu with whatever you are doing that's eco friendly. Both
these conditions have to be met for your business to establish the kind of environmental
credentials that will allow a green marketing campaign to succeed.

4. Reassuring thy Buyer: Means that the customers must be made to believe that the
product being offered shall fulfill the objective or purpose for which it has been purchase
i.e.-no compromise in product quality in the name of the environment. 18

5. Pricing for thy customer: Means making sure that consumers can afford the
premium and feel it's worth it, which is being charged for your product, as many
environmentally preferable products cost more due to economies of scale and use of
higher-quality ingredients.19

6. Giving thy customers an opportunity to participate : Means personalizing the

benefits of your environmentally friendly actions, normally through letting the customer
take part in positive environmental action, at same time keep in view the changed
expectations of the customers.20
THE FOUR PS OF GREEN MARKETING

Like conventional marketers, green marketers must address the Four Ps‘ in new
perspective in view of changed scenario: 21

Product

 Marketers wanting to exploit emerging green market either: Identify customers‘

environmental needs and develop products to address these needs; 22or
 Develop environmentally responsible products to have less impact than
competitors. The increasingly wide variety of products on the market that support
sustainable development and are good for the triple bottom line include: 23
 Products made from recycled goods.
 Products that can be recycled or reused.24
 Efficient products, which save water, energy or gasoline, save money and reduce
environmental impact.
 Products with environmentally responsible packaging. 25
 Products with green labels, as long as they offer substantiation.
 Organic products — many consumers are prepared to pay a premium for organic
products, which offer promise of quality. 26
 A service that rents or loans products – such as toy libraries.
 Certified products, which meet or exceed environmentally responsible criteria. 27

Price
Pricing is a critical element of the marketing mix. Most customers are prepared to pay a
premium if there is a perception of additional product value. This value may be
improved performance, function, design, visual appeal or taste. Environmental benefits
are usually an added bonus but will often be the deciding factor between products of
equal value and quality. Environmentally responsible products, however, are often less
expensive when product life cycle costs are taken into consideration. 28
Place
The choice of where and when to make a product available has a significant impact on
the customers being attracted. Very few customers go out of their way to buy green
products merely for the sake of it. Marketers looking to successfully introduce new
green products should, in most cases, position them broadly in the market place so they
are not just appealing to a small green niche market. The location must also be
consistent with the image which a company wants to project. The location must
differentiate a company from its competitors. This can be achieved by in-store
promotions and visually appealing displays or using recycled materials to emphasize
the environmental and other benefits.

Promotion
Promoting products and services to target markets includes paid advertising, public
relations, sales promotions, direct marketing and on-site promotions.
Smart green marketers will be able to reinforce environmental credibility by using
sustainable marketing and communications tools and practices. For example, many
companies in the financial industry are providing electronic statements by email, e-
marketing is rapidly replacing more traditional marketing methods, and printed materials
can be produced using recycled materials and efficient processes, such as waterless
printing.
Retailers, for example, are recognizing the value of alliances with other companies,
environmental groups and research organizations when promoting their environmental
commitment. To reduce the use of plastic bags and promote their green commitment,
some retailers sell shopping bags, under the banner of the Go Green Environment
Fund.
The key to successful green marketing is credibility. Never overstate environmental
claims or establish unrealistic expectations, and communicate simply and through
sources that people trust. 29
Promote your green credentials and achievements. Publicize stories of the company‘s
and employees‘ green initiatives. Enter environmental awards programs to profile
Environmental credentials to customers and stakeholders. 30

Consumers - As per research, India is the only country to choose deforestation and air
pollution as the most important green issue. India is the only country in which more
consumers say it should be developing countries that should focus on green innovation
versus developed countries. The results of the recently released 2011 edition of the
Global Image Power green Brands Survey show that concern about the environment by
the consumers, is translating into a willingness to pay for a premium for green
products.31 64% of Indian consumers indicate that they plan to spend more on green
products next year. Furthermore consistent with emerging countries, Indians are willing
to pay a green premium price, with 48% of Indians willing to spend 10% more on a
product simply because it is green. Consumers in India are trusting of green advertising
compared to other countries, with 86% of Indian consumers reporting that advertising
about green products help them in making choices. In India 28% of consumers intend to
purchase auto in the next year as compared to purchase of 16% in last year. 32
Producers – AMUL has been rated as the Top Indian Green Brand by Global Green
Brands survey. The International Dairy federation has also awarded AMUL Green
movement as the best Environment Initiative in the ―Sustainability Category in 2010.It
also has been awarded Srishti’s good green Governance award for four consecutive
years since 2011.33
The results of the recently released 2011 edition of the Global Image Power green
Brands Survey show that concern about the environment by the consumers, is
translating into a willingness to pay for a premium for green products. 64% of Indian
consumers indicate that they plan to spend more on green products next year. 34
Furthermore consistent with emerging countries, producers – AMUL has been rated as
the Top Indian Green Brand by Global Green Brands survey. The International Dairy
federation has also awarded AMUL Green movement as the best Environment Initiative
in the ―Sustainability Category in 2010.It also has been awarded Srishti’s good green
Governance award for four consecutive years since 2011. 35

The 2011, top 10 Green Brands in India are:

1. AMUL

2. Dabur India ltd.

3. Infosys

4. Taj Hotels

5. Britannia Industries ltd.

6. Suzlon India

7. Hindustan Unilever Ltd.

8. Wipro technologies ltd.

9. Maruti Udyog ltd.

10. Godrej Consumer Products.36

Government- The Indian government has also done its mite in promoting green
marketing and eco friendliness by way of banning plastic bags from daily use, helping
its automotive industry to develop greener vehicles by supporting hybrid and electric
vehicles (EVs), by investing in greener cars the Government of India is capitalizing on
an underutilized segment and building an infrastructure that will generate economic
growth and reduce emissions. The government took the initiative of promoting green
buildings construction, usage of alternate sources of energy by companies. 37
Governmental bodies are forcing firms to become more responsible. In most cases the
government forces the firm to adopt policy which protects the interests of the consumers
by reducing production of harmful goods or by products, Modify consumer and
industry's use and /or consumption of harmful goods; or, Ensure that all types of
consumers have the ability to evaluate the environmental composition of goods. 38
GREEN MARKETING- CHALLENGES Although a large number of firms are practicing
green marketing, it is not an easy job as there are a number of problems which need to
be addressed while Implementing Green marketing. The major challenges to Green
marketing which have to be faced are: 39
New Concept-Indian literate and urban consumer is getting more aware about the
merits of Green products. But it is still a new concept for the masses. The consumer
needs to be educated and made aware of the environmental threats. The new green
movements need to reach the masses and that will take a lot of time and effort 40
Cost Factor- Green marketing involves marketing of green products/services, green
technology, green power/energy for which a lot of money has to be spent on R&D
programmes for their development and subsequent promotional programs which
ultimately may lead to increased costs. 41

Convincing customers-The customers may not believe in the firm’s strategy of Green
marketing, the firm therefore should ensure that they undertake all possible measures to
convince the customer about their green product, the best possible option is by
implementing Eco-labeling schemes. Eco-labeling schemes offer its approval to
environmentally less harmless products. In fact the first eco-label program was initiated
by Germany in 1978. Sometimes the customers may also not be willing to pay the extra
price for the products.42

Sustainability- Initially the profits are very low since renewable and recyclable products
and green technologies are more expensive. Green marketing will be successful only in
long run. Hence the business needs to plan for long term rather than short term strategy
and prepare for the same, at the same time it should avoid falling into lure of unethical
practices to make profits in short term.

Non-Cooperation- The firms practicing Green marketing have to strive hard in

convincing the stakeholders and many a times it may fail to convince them about the
long term benefits of Green marketing as compared to short term expenses. 43
Avoiding Green Myopia- Green marketing must satisfy two objectives: improved
environmental quality and customer satisfaction. Misjudging either or overemphasizing
the former at the expense of the latter can be termed ―green marketing myopia. 44
In short firms using green marketing must ensure that their activities are not misleading
to the consumers or the industry, and do not breach any of the regulations or laws
dealing with environmental marketing. The green marketing claims of a firm must do the
following in order to overcome the challenges :

1. Clearly state environmental benefits;

2. Explain environmental characteristics;
3. Explain how benefits are achieved;
4. Ensure comparative differences are justified;
5. Ensure negative factors are taken into consideration; and
6. Only use meaningful terms and pictures. 45
CONCLUSION

Green marketing is not going to be an easy concept. The firm has to plan and then carry
out research to find out how feasible it is going to be. Green marketing has to evolve
since it is still at its infancy stage. Adoption of Green marketing may not be easy in the
short run, but in the long run it will definitely have a positive impact on the firm. Green
Marketing is still in the stage of childhood in the Indian companies. The lots of
opportunities are available in Indian market. Customers too are ready to pay premium
price for green products. This transformation in consumer‘s behavior is compelling
corporate to think about the harmful impact of their activities on the natural environment
of the world. The rapid increase for the environment concern in last two decades is
stressing companies to prove the change to ensure the sustainable growth of the
society. Green marketing should not be considered as just one more approach to
marketing, instead should be pursued with greater vigor as it has societal and
environmental dimensions. Marketers also have the responsibility to make the
stakeholders aware about the need and the advantages of green products.
Organizations are now aware with the fact that without adopting green in the core of
their strategy they cannot survive in the present competitive era. Indian FMCG
companies are also adopting green to retain their image in the market.The companies
are involved in various activities to show their concern for environment as well as
society, but at the same time it is necessary for the companies to understand that Green
marketing should not overlook the economic aspect of marketing. Green marketing
helps in the effective outcomes like cost cutting, employee satisfaction, waste
minimization, society welfare for the companies as well for society also. Only thing
required is the determination and commitment from the all the stakeholders of the
companies. Marketers also have the responsibility to make the consumers understand
the need for and benefits of green products as compared to non-green ones and the
benefits they can reap in the future. The green marketers can expect full support of the
Government, and the consumers also will not mind paying more for a cleaner and
greener environment. Finally, consumers, industrial buyers and suppliers need to
promote the positive effects of Green marketing on the environment. Green marketing
assumes even more importance and relevance in developing countries in the world like
India which should be path breakers and trendsetters for all others to follow. 46
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