Assignment : Prepare a summary of Project outlining objective,
methodology, literature review and major findings in 5 pages. Hand-written, Individual, 20 marks.
GREEN MARKETING IN CONTEXT TO FASHION INDUSTRY
What is green -fashion? Eco-fashion is about making clothes that take into account the environment, the health of consumers and the working conditions of people in the fashion industry.
Eco-fashion clothes: are made using organic raw materials, such as cotton grown without pesticides and silk made by worms fed on organic trees dont involve the use of harmful chemicals and bleaches to colour fabrics Are often made from recycled and reused textiles. High-quality garments can be made from second-hand clothes and even recycled plastic bottles are made to last, so that people keep them for longer Come from fair trade - the people who make them are paid a fair price and have decent working conditions. With the eco-fashion industry still in its infancy, the main responsibility at the moment lies with clothes manufacturers and fashion designers, who need to start using sustainable materials and processes.
Is green-fashion sustainable? Eco-clothes are made from organic raw materials that are grown without pesticides. This reduces damage to the environment, animals and peoples health. Other eco-clothes are made using recycled textiles or plastics, saving on waste, landfill space and the amount of raw materials used. 2
No harmful chemicals and bleaches - which can cause long-term damage to peoples health and the environment - are used in the production of eco-clothes. Eco-clothes are fair traded. Eco-clothes are high quality and last a long time. Because of this people need fewer clothes, less raw materials and energy are used, and there is less waste. To guarantee standards in the future, a system of eco-labelling is being established to show that clothes have been made from organic materials and manufactured in an environmentally-friendly way. Many famous fashion designers have started to use organic materials - and make money.
Companies Setting up Earth A'Wear Earth AWear was the first shop in Copenhagen, Denmark, to stock only eco-fashion clothing. Nick Paxevanos, the man behind the company, explains the story behind the store. Earth A'Wear products Earth AWear wanted to challenge the idea that green clothing has to be dull and old-fashioned. The clothes and accessories it sells are as fashionable as any other designer label. All of the clothes sold in the shop are either made from environmentally- friendly raw materials or from recycled materials. For example, there are: skirts made from pineapple fibres jumpers made from peat fleeces made from 70% organic cotton and 30% recycled plastic bottles shirts made from organic silk Belts made from bicycle tyres.
The company has been tremendously successful in getting its message across, raising the profile of eco-clothing and the environmental aspects 3
of the textile industry in Denmark. As a result of media coverage, other retailers now stock products from the range. Financially it has not been easy, but Earth AWear has survived and is developing an internet business. Nick Paxevanos now runs his own consultancy to develop green commerce.
Ecozuzu - Recycled Eco-friendly Womens: Apparel
Ecozuzu illustrations and graphics are created by a local artist in Santa Barbara, CA. The graphics are also printed by a local printer (silkscreened and embroidered). Hand-crafted. No sweatshops. This designer t-shirt is made out of recycled materials such as disposable food containers, soft drinks and water bottles! Our eco-apparel is made from all low impact dyes. Our high quality fabrics are super soft and comfortable. All of our tags are printed on recycled paper with eco- friendly soy inks. Even our packaging is made from recycled materials from local shop "Art from Scrap." From the big picture to the small details, we run our entire business as environmentally conscious as possible. Together we can make a difference!
The Body Shop
Against animal testing Support community trade Active self esteem Demand human rights Natural ingredients from all four corners of the globe, Protect our planet
The fair indigo
The USA-based brand Fair Indigo is famous for producing stylish clothes that are produced using the concept of fair trade. The clothes are produced from completely organic material. Their catalogues are made from recycled paper. The shop floors and hangers are made from bamboo. Recycled metal and glass are used in the store. 4
Levis
Levi's, which already retails organic jeans in the US market, has an organic line for male and female denims called Levis-Eco. While the cotton used by the company for making jeans is organic, the button on the waistband is made of coconut shell. There are no metal rivets, the dye is from natural compounds including indigo, and the label is from recycled cardboard. Dhillon gives the big picture as he sums up: Being eco-friendly is in not only about a T-shirt or a shoe, the reduced resource consumption and overall impact of the brand in leaving a green footprint is the whole big picture.
DESIGNERS
Indian designer Anita Ahuja presented her collection Conserve at Paris in September 2007. Conserve is a collection of accessories made from natural and eco-friendly products. It includes handbags made from recycled waste plastic. Anita dongre The concept of organic clothing in india gained popularity with the launch of designer Anita Dongre's label Grassroot, in 2007. In Dongres own words Grassroot believes machines cannot substitute the skills, especially those that require human touch, and they need to be encouraged in order to sustain and continue. It is our endeavor to revive these crafts and present them in a way that appeals to every fashion conscious consumer. It uses cellulosic or other organic fibers like viscose, modal, bamboo jersey fabrics that are recyclable and do not 5
cause any harm to the environment. It also stresses on the use of use of natural and vegetable dyes which do not cause any industrial effluence, and the waste products are re-used in the form of manure.
Questionnaire Company 1. Does your company follows social-marketing concepts yes a. Yes b. no 2. As part of socio marketing concepts, what activity does your company undertake? Educating the people not to drink alcohol and drugs , not to take taboacco , avoid use of Polybags , probihit and discourage female foeticide ,use organic farming
3. Do you practice green marketing concepts in your organization? Yes a. Yes b. No 4. Does your company promote green marketing through different socio or business platform. Yes 5. What are the means and methods you undertake to promote grren marketing concepts. Sharing of vehicles ,Not to waste electicity , start using biodegradable packing material 6. Does your company attempt to promote and encourage green marketing concepts and activities at the back end and front end level. Yes 7. What do you look at green marketing as : A business generates activity A necessity ---- yes Something for company believes in An emerging trend 8. Does your company face any problems while implementing green marketing concepts : Cost Acceptance by consumers Awareness--- yes 6
Other 9. How does your company define green marketing? 10. Your company takes up green marketing as a short term / temporary concept long term / permanent concept.long term Service sector According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. 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 where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. Green, environmental and eco-marketing are part of the new marketing approaches which do not just refocus, adjust or enhance existing marketing thinking and practice, but seek to challenge those approaches and provide a substantially different perspective. In more detail green, environmental and eco-marketing belong to the group of approaches which seek to address the lack of fit between marketing as it is currently practiced and the ecological and social realities of the wider marketing environment.
2.)http://www.eweek.com/c/a/Green-IT/Green-IT-Service-Market-to- Grow-to-48-Billion-in-2013-Forrester-587606/ Driven by corporate desires to save money and improve efficiencies, Forrester Research is predicting the green IT services market will grow 60 percent per year into 2013, when it will peak at $4.8 billion before leveling off. More enterprises are investigating hiring IT services firms to help plan and implement green IT initiatives, and while the global recession is putting a squeeze on IT spending, it also is persuading corporations to optimize their existing IT assets rather than buy new ones, and is fueling the federal governments drive to fund green projects. 7
The market for green IT services, fueled by the push by businesses to save money and improve efficiencies, could grow by as much as 60 percent a year over the next four years, according to a report from Forrester Research. The market could grow from about $450 million in 2008 to $4.8 billion in 2013 before leveling off in 2014, Forrester analyst Chris Mines said in his report, issued April 24. In the context of a $500 billion global market for IT services in 2008, the $5 billion market for green IT services [in 2013] may look like small potatoes to vendor strategists, Mines said in the report. However, we expect that the visibility and strategic importance of green IT projects will put them near the top of many corporations consulting agendas. Essentially, enterprises are going green and want to find vendors that can help them, from data center giants such as Cisco Systems, Dell, Hewlett-Packard, IBM and Sun Microsystems to service providers such as Accenture, Capgemini, Deloitte and Infosys. Driving the growth of green IT services is a combination of enterprise desires to save money and to do good, Mines said in his report. Businesses are deploying sustainability metrics around such criteria as water and power use, and are also starting to track their corporate carbon footprint. At the same time, there is a greater enterprise push in capital-intensive projects to optimize the current IT assets already on hand rather than going out and buying new ones. In addition, while green IT projects are still primarily targeted at the data center, they also are growing into other areas, such as corporate desktop environments. Forrester saw a jump between its survey in October 2007 and a second one in October 2008 in corporate interest in retaining a professional services provider to help plan and implement a green IT initiative. In the 2007 survey, 70 percent of respondents said they had no plans; that percentage dropped to 54 percent a year later. Eighteen percent in 2007 said they werent currently using an IT services provider, but that they were considering the idea. In 2008, that number jumped to 30 percent. Mines report found that emerging markets showed the most interest, as did the utilities and telecommunications markets. 8
However, there were some positive and negative factors that went into calculating the latest projections. The global recession will cause worldwide IT spending to shrink by 3 percent this year over 2008with IT services and outsourcing spending falling along the same lines. In addition, the recessions negative impact on corporate capital spending convinced Mine to reduce the average spend on a green IT projects implementation phase from about $1 million to $800,000, reflecting the interest by businesses to optimize existing IT assets rather than buy new ones. However, Mine said, there is increasing corporate interest in green IT Forrester increased the percentage of green IT interest in North American enterprises from 75 percent to 80 percent, and from 60 percent to 75 percent in Asian enterprises. The percentage of European enterprises remained at 90 percent. In addition, a key response from the Obama administration to the recession has been to focus some stimulus money on green projects, many of which will have significant numbers of IT components involved. 3.) http://www.enn.com/business/article/30576
This week, GreenBiz.com launched its inaugural report, "State of Green Business 2008." In it, you will find a wealth of information on green business trends with a cross-sectoral approach. Over the next week, we will bring to you a synopsis of some of those trends. To start off, here's a list of the "Top Green Business Stories of 2007." 1. Corporate Climate Commitments - Major companies are making public commitments about their strategies to address climate change in record numbers. 2. Automotive Industry Finally Gets It - Major carmakers are bringing us more fuel-efficient and hybrid vehicles, with plans to launch plug-in hybrids soon.
3. Planes, Trains, Trucks, and Ships are Going Green Too - Other players in the transportation sector are also implementing eco-efficient tech to reduce their environmental impact. 4. Green Marketing/Greenwashing - Just as companies are increasingly catering to the "green consumer," mainstream consumers are increasingly skeptical of such claims. 9
5. Toxic Product Reduction - Manufacturers and retailers faced a public backlash this year concerning toxic materials in their products. As such, they are making amends to reduce or eliminate them in future production. 6. E-waste - The computing industry got serious this year about energy use and disposal problems associated with technology. 7. Big Companies Get Real about Sustainability - More Fortune 500 businesses announced plans to incorporate company-wide initiatives to engender smarter resource use. 8. Green Buildings Skyrocket - Green buildings become the norm in major urban centers across the nation. 9. Banks Pull Out of "Dirty Investments" - Shareholder activism pressure large banks to invest in clean energy production instead. 10. "Zero" is Where It's At - "Zero-waste," "zero-carbon," and "zero- emissions," are the rallying cries from the new initiatives emerging from the corporate sector. This ambitious effort to analyze green business trends provides a much- needed perspective on the field. The overall results? Major businesses have made commendable strides towards streamlining their business strategies with an environmentally sustainable focus over the last year. However, it remains to be seen whether, in fact, these approaches are making a difference to the environment. Insufficient data exists as of yet to make conclusive claims about the efficacy of these programs in the aggregate. This leads to a mixed verdict, "Companies are getting cleaner and more efficient, but only incrementally, and many of the gains are offset by the ever-growing economy." As we look at more sector- specific trends over the next week, we will shed light on some of the factors hindering further "conscious capitalism" evolution.
4.)http://www.chillibreeze.com/articles_various/top-10-indian-green- companies-green-business-practices.asp Judging by the number of large, small and mid-size Indian companies that are setting the trend with green initiatives, India is serious about building environmental sustainability into her business practices. The following companies who made it to the list of top 10 green Indian companies prove the statistics right! 10
Suzlon Energy The worlds fourth largest wind-turbine maker is among the greenest and best Indian companies in India. Tulsi Tanti, the visionary behind Suzlon, convinced the world that wind is the energy of the future and built his factory in Pondicherry to run entirely on wind power. Suzlons corporate building is the most energy-efficient building ever built in India.
ITC Limited ITC strengthened their commitment to green technologies by introducing ozone-treated elemental chlorine free bleaching technology for the first time in India. The result is an entire new range of top green products and solutions: the environmentally friendly multi-purpose paper that is less polluting than its traditional counterpart.
Tata Metaliks Limited (TML) Every day is Environment Day at TML, one of the top green firms in India. A practical example that made everyone sit up and take notice is the companys policy to discourage working on Saturdays at the corporate office. Lights are also switched off during the day with the entire office depending on sunlight.
Tamil Nadu Newsprint and Papers Limited (TNPL) Adjudged the best performer in the 2009-2010 Green Business Survey, TNPL was awarded the Green Business Leadership Award in the Pulp and Paper Sector. The initiatives undertaken by this top green firm in India includes two Clean Development Mechanism projects and a wind farm project that helped generate 2,30,323 Carbon Emission Reductions earning Rs. 17.40 Crore.
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Wipro Technologies The list of top 10 green Indian companies is never complete without Wipro which climbed to the top five brand league in Greenpeace's 'Guide to Greener Electronics' ranking. Despite the global financial crisis, Wipro held fast to its commitment towards energy efficiency and was lauded for launching energy star compliant products in the market.
HCL Technologies This IT major may be considered as the icon of Indian green initiatives, thanks to the go green steps taken in solving the problem of toxics and e-waste in the electronics industry. HCL is committed to phasing out the hazardous vinyl plastic and Brominated Flame Retardants from its products and has called for a Restriction on Hazardous Substances (RoHS) legislation in India.
Oil and Natural Gas Company (ONGC) Indias largest oil producer, ONGC, is all set to lead the list of top 10 green Indian companies with energy-efficient, green crematoriums that will soon replace the traditional wooden pyre across the country. ONGCs Mokshada Green Cremation initiative will save 60 to 70% of wood and a fourth of the burning time per cremation.
IndusInd Bank Green banking has been catching up as among the top Indian green initiatives ever since IndusInd opened the countrys first solar-powered ATM and pioneered an eco-savvy change in the Indian banking sector. The bank is planning for more such initiatives in addressing the challenges of climate change.
IDEA Cellular One of the best Indian companies, IDEA, paints India green with its national Use Mobile, Save Paper campaign. The company had organized Green Pledge campaigns at Indian cities where thousands 12
came forward and pledged to save paper and trees. IDEA has also set up bus shelters with potted plants and tendril climbers to convey the green message.
Hero Honda Motors Hero Honda is one of the largest two-wheeler manufacturers in India and an equally responsible top green firm in India. The companys philosophy of continuous innovation in green products and solutions has played a key role in striking the right balance between business, mankind and nature.
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Questionnaire Company 11. Does your company follows social-marketing concepts a. Yes b. no 12. As part of socio marketing concepts, what activity does your company undertake?
13. Do you practice green marketing concepts in your organization? b. Yes b. No 14. Does your company promote green marketing through different socio or business platform. 15. What are the means and methods you undertake to promote grren marketing concepts. 16. Does your company attempt to promote and encourage green marketing concepts and activities at the back end and front end level. 17. What do you look at green marketing as : A business generates activity A necessity Something for company believes in An emerging trend 18. Does your company face any problems while implementing green marketing concepts : Cost Acceptance by consumers Awareness Other 19. How does your company define green marketing? 20. Your company takes up green marketing as a short term / temporary concept 14
long term / permanent concept.
1. Yes 2. Facebook linkedin 3. Yes 4. Business platform 5. Negligible use of paper,online work preference;car pooling;using of cfl in office 6. Both at front end and at back end 7. Something for which a compny believes in 8. Cost 9. Green marketing can be described as sustainable devlopement of planet 10. Long term/permanent concept
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Green IT Technology & Applications- What is Green marketing? Green marketing, promotion or advertising of products exclusively to refer to environmental features. Words such as phosphate-free, recyclable and compatible with the ozone layer are the things that most consumers know they are associated with green marketing. While these words are only signs of green marketing. Green marketing is generally much wider concept that the consumer goods, industrial or service to be applied. According to Polanski, idea improved pricing and green marketing, promotion and distribution of products that can be applied without prejudice to the environment. Stuart Salmon has defined green marketing as: Follow a marketing strategy that can be identified through the environmental benefits, based on what the customer expects it will protect the environment. Green marketing is defined by Polanski idea as Green or Environmental Marketing, which includes all activities to create and facilitate exchanges in order to satisfy human needs and desires; it is designed; that satisfy the needs and desires with the least harmful and destructive to the environment. Organizations and companies should try to be more responsive to the environment more must act in order to better meet the needs of consumers. How to promote Green Marketing If your business uses a retail modelyou have a storefront or office where your customers and clients come to yougeographically based partnerships make a lot of sense. It is in everyones interest to draw people into the area where your businesses are located. And that area can be as small as a single office building, a strip mall, a city blockor as big as an entire state or country. This is why Chambers of Commerce and neighborhood business associations get organized and why economic development offices and tourism departments promote their region as a place to locate or visit. But thats only the beginning. Some other ways to cross-promote: 16
Organize and promote a special event that draws traffic. It could be as simple as a group promotion with 20 percent off any one item, or as complex as a street fair with live concerts, childrens activities, dignitaries, and so forth. Market the neighborhood or region as a destination. In Minneapolis, the many restaurant owners along Nicollet Avenue banded together and dubbed it Eat Street; they even posted permanent banners proclaiming this to all who pass byand even people who live in distant suburbs recognize the destination. Seek partnerships with complementary businesses in the neighborhood. Cooperative Life Leader magazine reports that a food co- op in Durham, New Hampshire, invited the weekly farmers market to set up shop outside the store. The existing storefront provided a natural base for the farm stands, and customers seeking fresh produce were drawn into the store to buy other natural foods. As weve already discussed, customers want to do business with companies who share their valuesand these days, those values include strong awareness of climate change and other environmental issues. We live in a powerful time: Finally, the environment has penetrated our collective consciousness deeply enough to move a whole lot of people toward Green lifestyle changes. At the same time, technology (especially the Internet) has made it possible to run a global business with little or no staff or resources, and without a big infrastructure. This opens up all sorts of opportunities for the Green Marketing. HOW YOU BENEFIT BY MARKETING GREEN When you look at all the advantages of running a Green company, its hard to understand why every company in the world hasnt shifted. Green goods and services are much easier to market. They often command a premium price, and thus are more profitable. 17
Green goods and services are better for the environment: They use fewer resources, less energy, and more organic and natural materials and thus create less pollution, have a smaller carbon footprint (which means they dont add to the global warming problem), and are easier to dispose of. Against conventional wisdom, they can actually be cheaper to produce, if properly designed Electronics Devices Recycling Power and computer cases are part of the components that are recyclable. But recycling is that its not like that kind of world. For example, components such as power, only power from aluminum and aluminum -pound buyers and these lesions can be sold. The same applies to the case of iron plates in the case was removed and the pound are sold. It is said that the market is now buying and selling second-hand. The main reason for this difference is a second hand new low price. Accordingly, many of the pieces were purchased in the past; users no longer have second-hand equipment in the market place today. Screw, coated wire, plastic part of case and keyboard parts that are easily recovered. Amidst the many wires and cables that depreciate parts thrown into the trash they are composed of copper. On the other hand part of the motherboard components and precious metals like gold, is composed of cup.
Economic development around the world has led to increased pollution from high levels of industrialisation, with concerns about environmental impacts. The EU, for example, has passed legislation to ban six hazardous materials (Restriction of Hazardous Substances Directive1) in the manufacture of electrical and electronic products for sale in the EU, with implications for manufacturers around the world. According to Greenpeace, the electronics industry is getting greener. Renee Blanchard, Greenpeace International Toxics Campaigner said, our survey shows that electronics manufacturers have made 18
demonstrable progress over the past few years by producing products that are free of the worst toxic chemicals, more energy efficient and more easily taken back for reuse or recycling. Major brands are responding to consumer demand for greener gadgets, and we expect them to continue to innovate and make all their products, and not just a niche few, with these higher green standards." We have tested the greenest models submitted by 14 companies and presented their findings in their product survey. This report evaluated the greenest desktop computers, computer monitors, notebook computers, netbook computers, smartphones, mobile phones and televisions. Here are the best green electronics in each category. 1. Energy-efficient AMD processors with Cool'n'Quiet Technology enable smaller, sleeker, more energy-efficient PC's. In March 2005, the U.S. Environmental Protection Agency (EPA) awarded Cool'n'Quiet Technology special recognition for the advancement of energy-efficient computer technologies. AMD expects that systems built using energy-efficient AMD desktop processors can meet, and in many instances, exceed the new system requirements from the EPA's ENERGY STAR Version 4 computer specification, effective July 20, 2007. With the next generation of award-winning power saving technology, Cool'n'Quiet 2.0 Technology reduces heat and noise so you can experience amazing performance without distraction. 2. In seven categories of electronics, Asus led with two products at the top of the heap, as well as the highest-scoring product surveyed, the Asus VW-247H-HF monitor. Among the other categories, Asus also led with the greenest notebook computer, while HP can boast the greenest desktop and Acer landed the greenest netbook computer. 3. Samsung and LG are both planning to unveil prototype solar-powered cell phones in 2009. The Samsung model, dubbed "Blue Earth", has a touchscreen with solar cells covering the its back side. The phone is made entirely from recycled plastic and is free of hazardous chemicals 19
-- including beryllium, phthalates, and brominated flame retardants (BFR) -- commonly found in electronics. 4. Sony Ericsson unveiled goals for reducing CO emissions across the whole company by 20% by 2015 in absolute terms. At the same time the company committed to reducing the total greenhouse gas emissions by 15% from the full life cycle of its products i.e. from the mining, production, through the use by consumers to the end of life management by 2015. A key pillar of these commitments is the introduction of Sony Ericssons new GreenHeart pioneer products which launched with two flagship phones the C901 GreenHeart and Naite- and the MH300 headset, one of the greenest on the market. Green innovations showcased in the new GreenHeart pioneer phones will migrate into the wider portfolio enabling the company to continually reduce the environmental impact of its entire portfolio, to become a benchmark for the industry. Both the C901 GreenHeart and Naite build on Sony Ericssons industry leading green core, the result of a long standing commitment to eliminate the use of hazardous chemicals from its phones. Additional green features include an e-manual that reduces paper usage by over 90%, smaller packaging that decreases transport related CO emissions by over 80%, recycled plastics and a low-power charger. Thanks to these innovations, the overall CO footprint of the GreenHeart products is reduced by 15%.
5. Philips EnduraLED bulb is far more efficient than traditional light bulbs and it is even more efficient than compact florescent light bulbs. This LED produces the same amount of light as a 60-watt incandescent using just 12 watts. The EnduraLEDs produce a warm, white glow. The bulb lasts approximately 25 times as long as an incandescent and energy savings cover the cost in about four years. Its efficiency is similar to compact fluorescent lights, but without the mercury. It retails for about $40. Because LEDs lose less energy than incandescents as waste heat, the bulb produces the same amount of light as a 60-watt incandescent using just 12 watts. The EnduraLEDs yellow 20
phosphor coating filters the LEDs bluish wavelengths to produce a consistently warm, white glow. The bulb lasts approximately 25 times as long as an incandescent, while its energy savings covers the hefty price tag in about four years. And its efficiency is similar to compact fluorescent lights, but without the mercury. 6. Apple and the Environment - Apple believes that improving the environmental performance of our business starts with our products. The careful environmental management of our products throughout their life cycles includes controlling the quantity and type of materials used in their manufacture, improving their energy efficiency, and designing them for better recyclability. The information below details the environmental performance of the 15- inch MacBook Proas it relates to climate change, energy efficiency, material efficiency, and restricted substances. 7. In the wake of the Apples iPad, Sharp announced today four LED backlit panels. These four models are the LC-52SE1 (52-inch), the LC-46SE1 (46-inch), the LC-40SE1 (40 inch), and the LC-32SC1 (32-inch). They all have LED backlights, and are full HD, except for the LC- 32SC1 which has 1,366 x 768 resolution. They have a contrast ratio of 2 million to 1, web connectivity, three HDMI ports, and 2 x 10W speakers. They also have a move sensor that will allow the TV to turn itself off when the user leaves the room, and on again when they enter. Green Marketing Strategies by Apple for MacBook Pro (Notebook Computer) 1. Product Apple believes that improving the environmental performance of their business starts with their products. The careful environmental management of their products throughout their life cycles includes controlling the quantity and type of materials used in their manufacture, improving their energy efficiency, and designing them for better recyclability. The information below details the environmental performance of the 15-inch MacBook Pro as it relates to climate change, energy efficiency, material efficiency, and restricted substances. 21
Climate Change Greenhouse gas emissions have an impact on the planets balance of land, ocean, and air temperature. Most of Apples corporate greenhouse gas emissions come from the production, transport, use, and recycling of its products. Apple seeks to minimize greenhouse gas emissions by setting stringent design-related goals for material and energy efficiency. The chart below provides the estimated greenhouse gas emissions for the 15-inch MacBook Pro over its life cycle. Greenhouse Gas Emissions for 15-inch MacBook Pro
Energy Efficiency Because one of the largest portions of product-related greenhouse gas emissions results from its use, energy efficiency is a key part of each products design. Apple products use power efficient components and software that intelligently powers them down during periods of inactivity. The result is that the MacBook Pro is energy efficient right out of the box. Material Efficiency Apples ultracompact product and packaging designs lead the industry in material efficiency. Reducing the material footprint of a product helps maximize shipping efficiency. It also helps reduce energy consumed 22
during production and material waste generated at the end of the products life. Waste is further minimized through the use of batteries that last up to three times longer than typical notebook batteries. The 15- inch MacBook Pro is made of aluminum and other materials highly desired by recyclers. The chart below details the materials used in this model.
Packaging The packaging for the 15-inch MacBook Pro uses corrugated cardboard made from a minimum of 25 percent post-consumer recycled content and molded fiber made entirely from post-consumer recycled content. In addition, the packaging is extremely material efficient, consuming 37 percent less volume than the original 15-inch MacBook Pro. The following table details the materials used in its packaging. 23
Recycling Through ultra-efficient design and use of highly recyclable materials, Apple has minimized material waste at the products end of life. In addition, Apple offers and participates in various product take-back and recycling programs in 95 percent of the regions where Apple products are sold. All products are processed in the country or region in which they are collected. 2. Price Apple has priced this product starting at $1199 while customers were expecting such product at $100. Right away, some observers said that Apple didnit cut prices enough and that the higher than expected prices would would test customer loyalty in the downturn. Exploring how Apple operates and their understanding of their customers goes a long way towards explaining that $400 gulf between expectation and reality in Apples pricing. First, any lowering of the MacBook price in a dramatic fashion would have to be based on an expectation of drastically reduced notebook sales. However, for example, Barclay Capitalis Ben Reitzes updated his published projections for Apple desktop and notebook sales for the next year. 24
The chart shows that only the typical seasonal adjustments for Mac sales are in effect and that Apple can expect to sell nearly 2 million notebooks alone in the June 2009 quarter and maintain double digit year over year growth in the process. These are not numbers which would cause a company to panic and suddenly chop prices in a recessionary fervor. In addition, itis well known that Apple sells to the upper quintile of notebook purchasers. These are customers who have the money to buy the best. There arenit many of them, but there are enough, about a third of notebook purchases (by revenue) who have over a thousand dollars to spend on a notebook, that Apple can expect to continue to appeal to that market. Apple understands its customer base and income profile well. All of the fuss and angst on Tuesday was based on the idea that the entire cross- section of U.S. income profiles needs to be addressed with fire sale, brand damaging prices. Apple never has addressed the low end, price sensitive market and doesnit appear to be ready to do so in the near future.
3. Place The Macbook Pro will most likely be sold in place where other Apple products are sold. There several retail outlets that carry various Apple products so purchasing this product should not be difficult. There are multiple Apple stores across the World, 284 of them, in which these 25
products will be sold. Customers can also order the product online in Apple's website. Best Buy, one of Apple's partners, also sells Apple products and also has a large retail footprint in the United States. Amazon, one of the largest online retailers, also carries Apple products. The iPad won't be out for another two months, initial availability might be low depending on consumer demand like the shortage of iPhones during its initial release. Apple should gauge consumer demand and produce enough in order to satisfy the market. 4. Promotion
Apple held a press conference to debut the product. Several of the major techblogs and websites (zdnet, gizmodo, engadget) also covered the event. Given Apple's track record of heavy promotion and advertisement of its marquee products, the MacBook has a high probability of getting the same advertising treatment. The MacBook is already highlighted on the front page of Apple website and the hour long keynote by Late Steve Jobs regarding the MacBook is also available on the website. There hasn't been a TV ad for the MacBook as it was just introduced in November 2011 and has yet to be released to the market, I anticipate heavy promotion within the upcoming months as the MacBook is due to be released around March 2012. Top 10 Predictions for Sustainable Business and the Green Economy in 2011 1. Business will be getting a lot more sustainable driven by a growing awareness that the green revolution is here to stay.
2. In the absence of legislation and driven by the overwhelming logic of sustainable business, private enterprise will grow the green economy. 3. Public green companies will benefit from an influx of investment capital. Sustainable stock will continue to grow in value as an increasing number of investors realize that the world is in transition to a low carbon economy. 26
4. Sustainability will drive innovation that will lead to novel technologies and business models. 5. The acknowledgement that supplies of natural resources are finite and in many cases increasingly scarce will lead to new efficiency initiatives. 6. Small and medium businesses will increase their adoption of social channels to reach their customers. This will include participation in social media like Facebook, Twitter and company blogs. 7. Mobile and web technologies will increase e-commerce, customer relations management (CRM), and cloud computing. 8. Supply chain pressure will evolve and get more sophisticated. Companies will examine their impacts up and down the value chain. 9. Biomimicry (the design principle that looks to nature for great ideas), will be integrated into new technologies. 10. Businesses will be closely examining their water usage as the issues surrounding water will become increasingly important.
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Green marketing in FMCG - The growing social and regulatory concerns for the environment lead an increasing number of companies to consider green issues as a major source of strategic change. FMCG sector is a considerably large sector in the economy which has to open their eyes to eco friendliness. As the society becomes more complex with the environmental pollution and unethical business practices, both consumers and business organizations are concerned with the natural environment. So businesses have begun to modify their behaviour in an attempt to address this society's "new" concerns. Consumers are willing to prefer and pay more for products that are certified to be environmentally friendly. Going Green Often green strategies are designed not only for environmental benefits but also for the benefit of the organization. Green Marketing in FMCG incorporates a broad range of activities including product modification, changes to the production process, packaging changes as well as modifying advertising.
Marketing mix as Green marketing for FMCG products:
Product: The product aspects of marketing deal with the specifications of the actual goods or services the most important being the product performance, and how these relate to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Consumer research, product innovation and their development by producers and the listing of these innovative products by retailers are core elements. For durable products such as white goods (washing machine, refrigerators..) after sale services (repair, spare parts, etc.) are also of key relevance to consumers. If a product when bought provides a self satisfaction to the consumer as he is buying a product which is good for the environment.
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Price: The price, including discounts, of a product is generally alongside performance the main criteria for purchasing decisions. This applies particularly for FMCG. In the case of consumer durables, such as electrical appliances consumers are sometimes willing to pay more if they see a good price/benefit correlation over the lifetime of a product/service. Key to promoting green buying is the affordability of environmentally friendlier products. Even if a majority of consumers claim in polls that they are willing to pay more for environmentally friendlier products, the higher price is an obstacle for buying green. Even for green consumers there is a limit to what they are willing to pay. To promote green buying clear information to consumers about the costs involved during the lifetime of products is also key. In this sense, retailers can contribute to overcome the burden of price with good communication. For instance, information about the lower electricity costs of energy efficient white goods over the life-time of a product.
Placement: The placement refers to the channel by which a product or service is sold (e.g. online vs. retail), in which geographic region, to which consumer segment (young adults, families, business people), etc. The awareness and willingness of consumers to buy green differs from country to country. According to ITC they imply green marketing in organic farming products as their source of green marketing. Concerning the product placement on the shelves, there are two general trends: off- shelf display (green corners) or category groups (e.g. organic pasta next to whole pasta). For green conscious consumers, green corners might be the better option as they are actively looking for green products. For the average consumer, category groups might be preferable, as they are looking for food products, if presented with the option, decide to buy the organic alternative. In periods of economic crisis such as today, these instruments, more specifically the price, take on even more importance as competition between retailers increases. New competition elements can also emerge. For instance, environmentally-based competition has penetrated the white goods market (energy label). This might also prove to be the case for environmental characteristics of products. 29
Promotion: Promotion includes advertising and sales promotion as well as promotional education and personal selling. Purchasing decisions are motivated by emotional factors like trust and good experience with a specific product or brand in the past. For some consumers, scientifically reliable, consistent, understandable and non-misleading product information, shapes purchasing decisions. The goal of promotion is to make consumers aware of a product and its characteristics. Consumers get product information through brand names, packaging information, like product labels or additional information on flyers, websites, etc. The producer (brand or retailer brand) is responsible for this information. There is a basket of in-store-information retailers can use to promote green buying. A core element is the dialogue with the sales person. In addition, there is signage, POS (point of sale) display systems, etc. Also important is the opportunity to try new products (especially food products) in the store. Branded goods companies or retailers may inform consumers through newsletters or advertising on TV or in newspapers. Some retailers (especially consumer co-operatives) use their member sessions to inform the public about green consumption. The promotion of environmentally friendlier products could be assisted through customer loyalty programmes. Consumer awareness may also be enhanced through national or local public campaigns. With a lot of media response and public awareness raising of some issues, the number of obstacles to buying green can be reduced. The challenge for brand owners and retailers is to ensure that environmentally friendlier products bring continuous satisfaction to consumers including the delivery of expected performance, so as to make them do a reiterated 'green' choice.
Examples of Green Marketing:
ITC Sunfeast :
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Green marketing is being used to build individual brands rather than the corporate brand. A case in point is the Rs16000Cr ITC, that ran their CSR campaign, about putting India first for its e-choupal initiative two years back. Cut to the present, the company has linked the Sun feast brand to its social forestry campaign, where the company chips in with 25 paise for every pack of Sun feast biscuit and pasta sold and consumers who buy the Atta brand Aashirvaad, contribute towards ITCs rain harvesting campaign. Divisional chief executive, ITC, Ravi Naware says, consumers like to connect with brand, if the brand is seen as a socially responsible brand, then consumers get an emotional connect that far beyond just usage of the brand and consuming it. It is this higher level of connect that were attempting to create through this campaign.
Navneet Eco buddy:
Navneet Publications (India) Ltd. have been consistently taking up genuine efforts to increase the green cover and also to overcome the problem of shortage of raw materials by introducing new eco friendly alternatives in its product portfolio which ensures no damage to the environment.
We all know that paper is made from wood pulp. However, Navneet uses an eco-friendly paper which is made from bagasse i.e. Dry sugarcane pulp remained after extracting juice is chemically treated to make paper and fuel. Navneet Publications (India) Ltd. has resorted to a unique, novel project that will make significant contribution to protect trees by using eco-friendly paper to manufacture Navneet's entire range of products.
Paving the way for an eco-friendly product -the basis of sustainable development and taking up constant efforts towards environmental management, Navneet Publications (India) Ltd. has also launched a complete range of premium stationery products under the brand name FfUuNn across India. The range comprises of eco friendly and non- toxic pencils, erasers, sharpeners, colour pencils, oil pastels, etc. and uses state-of-the-art technology based on international standards. 31
FfUuNn range products are something that cannot be dreamt of in conventional stationery segment.
Serving the Indian teacher-student community, Navneet Publications (India) limited has been a dominant player in the field of providing syllabus and non-syllabus based education material to students since 1959.
P&G in green marketing: P&G Professional's Green Guarantee ensures the environmental safety of its products, packaging and operations. All P&G Professional Green Guarantee products provide outstanding performance while meeting high standards for human and environmental safety. The focus on "being green" in the commercial market has expanded over the past several years and is a decision factor for many companies when it comes to cleaning products. We invite you to explore this site to understand P&G Professional's environmental philosophy and why we choose not to use the green explosion as a marketing technique, but as our everyday way of doing business. Products like Daily Cleaners. A number of P&G Professional Daily Cleaners meet or exceed the criteria of EPA's EPP guidelines and GS- 37 standards. The ingredients in these formulations have excellent safety profiles with regard to all forms of toxicity, including cancer or reproductive toxicity. Mr. Clean Toilet Bowl Cleaner/Restroom Disinfectant, Pro Line Tide Detergent, Comet Disinfecting Bathroom Cleaner, etc.
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FMCG- Questionnaire Company 21. Does your company follows social-marketing concepts a. Yes 22. As part of socio marketing concepts, what activity does your company undertake? The activities include make sure our production line has very minimal carbon footprint. Product designed to reduce the energy consumption during its life cycle. Generating awareness about the wastage and encouraging use of recyclable material.
23. Do you practice green marketing concepts in your organization? c. Yes 24. Does your company promote green marketing through different socio or business platform. a. Yes 25. What are the means and methods you undertake to promote grren marketing concepts. a. Its incorporated in all we do, from recycling office stationary to designing product with less energy consumption during its life cycle. From reducing ongoing carbon footprint of our manufacturing line to designing new green field project which completely runs on renewable energy 26. Does your company attempt to promote and encourage green marketing concepts and activities at the back end and front end level. a. Yes 27. What do you look at green marketing as : Something for company believes in 28. Does your company face any problems while implementing green marketing concepts : Acceptance by consumers 33
29. How does your company define green marketing? a. Design, manufacturing, marketing and distribution of products which are environmentally safe 30. Your company takes up green marketing as a long term / permanent concept.
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Problems in the area of Green Marketing and Solutions to the Green Marketing-
Green marketing is an advertising approach that promotes environmental sensitivity to would be buyer. In the 1990s survey have suggested that many shoppers would chose products labelled environmentally friendly over those that are not. In a 1992 gallop poll, 65 percent of the people polled in the United States said they would be willing to pay higher prices so that industry could better protect the environment. According to a 1990 survey conducted for gerstman and Meyers, a New York packaging design company, approximately 45 percent were willing to pay 15 percent more. Faced with this trend, manufactures of both consumer products and package designers are attempting to improve their image with people concerned about the environment. Green products are being introduced at twenty times the rate of regular products according to one ad agency. In the 1990s cheerios are packaged in recycled paperboard, McDonalds uses global releaf bags diapers are biodegradable and US sprint offers environmental dollars. Common green labels include environmentally friendly safe for the environment ozone friendly recycled, recyclable degradable and compostable. Recently concerns have been raised about the use of green labelling. Some environmental group and state attorneys general are concerned that a growing number of companies , in their attempt tp take advantage of consumer interest in the environment , are making claims that do not stand up to examination. They argue that too many environmental claims are trival, confusing, and often misleading .the public , too , has become sceptical of green claims . According to a recent poll taken in Princeton , new jersey , 47 percent of consumers have come to dismiss green labels as gimmicks. There are three ways a company can connect itself to the environment. The first involves promoting a products environmental advantages. The second is proactive environmental image advertising unrelated to the 35
companys essential activities. Examples of this are the commercials money for wetland preservation. The third approach involves the companys claims of environmental responsibility in manufacturing. For example, they point out how they have been able to cut factory effluent by 70 percent. All three types need monitoring for accuracy and relevance, but slightly exaggerated claims are better than ignoring the environmental impact of production altogether. A group of ten state attorneys general has offered recommendations for what it calls responsible environmental advertising. This report, issued in 1990 and called The Green Report, evaluates ecological assertions. Statements such as environmentally friendly and safe for the environment have been criticized by The Green Report as too broad and vague. In many cases, The Green Report concludes that such assertions represent value judgements, and as such, fail to reflect the pros and cons of what is most important for the environment. That is, important ecological questions are left unanswered: whether ease of disposal is more important than toxic pollution generated during manufacturing, or whether cutting down trees to make paper is worse than oil spills associated with the production of plastics. The Green Report advises manufacturers to make environmental claims as specific as possible and to provide accompanying justifications. For example, the vague claim better for the environment can be better justified by the addition of the phrase less packaging to throw away. In 1992, the Federal Trade Commission (FTC) issued its own guidelines for environmental marketing. They are entitled Summary FTC Environmental Marketing Guidelines. Other problems have arisen in the use of green labelling. Often a manufacturer labels a product environmentally Friendly when one ingredient has been removed from it. This has been the case with aerosol cans. The removal of hydro fluorocarbons from aerosol cans has led some manufacturers to label the product contains other ozone- threatening ingredients, such as methyl chloroform, the claim can be misleading. It should be noted, however, that methyl chloroform is a lot less damaging to the ozone layer than are CFCs. 36
Furthermore, some companies, in an attempt to eliminate environmentally damaging ingredients, substitute new ingredients that are harmful in another way. They simply shift the nature of the problem, not eliminate it. For example, in aerosols, volatile organic compounds (VOCs) have been substituted for chlorofluorocarbons. Some scientists believe that VOCs contribute to the formation of harmful low-level smog and could add to the danger of global warming. Other scientists are less certain of the role of VOCs in causing ground-level ozone. Another problem can arise when the public is environmentally ill- informed. The question then becomes whether or not companies pander to public perception of what is environmentally sound and thus market products based on that perception? Problems often need to be attacked from more than one perspective. The Mobil Trash bag is a good example. People demanded a biodegradable plastic bag. Mobil knew that very little degrades in a well-designed sanitary landfill and that one does not necessarily want things to degrade in a sanitary landfill since doing so may then give off effluent that can cause smells and leaching into the groundwater. Ideal garbage is inert, that is, the opposite of biodegradable. Mobil also believed that the environmentally best way to handle a used plastic bag is probably to incinerate it and capture the energy. However, incineration and sitting of a plastics-to-energy incinerator is very problematic for the public. Mobil had a choice to either attempt to convince the public otherwise or pander to public demand. Mobil chose to follow consumer demand. Unlike McDonalds which quietly switched from polystyrene to cardboard in its packaging, Mobil chose to boast about its choice a decision that, with hindsight, proved foolish when its claims were proven environmentally irrelevant. The problem is that green marketing is typically aimed at the publics environmental concerns. If these concerns are oversimplified and vulnerable to charges of misleading the public. Misfollowing the public might be a more accurate charge. It should be noted, however, that some environmentalists have argued that efforts to promote legitimately benign products as environmentally safe is acceptable, so long as it gets companies to think green. 37
Some companies have always had environmentally friendly products. But only since then, 1990s has it made any sense to promote them as such. Others do not want to rush into green marketing. Promoting environmental claims that are subsequently questioned can hurt business, as was illustrated in the case of Mobils trash bags. Several commonly used terms are problematic. Recycled is a common green label used in packaging. By itself, it provides no information on what percentage of a product or package is made of recycled material, and currently there is no standard. There also is no standard definition of the term. Some consumers assume it refers to the re-use of materials used by consumers, reducing the drain on natural resources. However, for some manufacturers, it refers to the re-use of scraps from their own manufacturing process. While this is a good thing to do, it has been done by companies for years, and, therefore, does not solve any current environmental problems. Recycling post-consumer waste is newer and harder to do, not intrinsically better. Recyclable is a hotly contested term. Almost anything can be recycled with enough effort and money. What makes something truly recyclable is whether it is economically worth recycling. Manufacturers claim that use of the term raises the consumers consciousness. Environmentalists, however, argue that use of the term is misleading, particularly in areas where there are no convenient recycling plants. Here all products, whether they are or are not recyclable, end up in a landfill or incinerator. It is also debatable whether reusing something in a degraded form is recycling. The purest sort of recycling uses a glass bottle as a bottle again. Grinding it up into glasphalt is better than throwing it away, but it is not pure recycling. The American public puts more emphasis on recycling than a complete life-cycle analysis might suggest. Cans and bottles are easily recyclable (and often recycled), whereas the individual- serving little juice boxes, for example, are more difficult to recycle. But these little juice boxes use much less material in the first place (a juice box crumples down to about as much waste as the cap from the bottle, which is not recycled). In addition, juice boxes so not need refrigerated trucks on the highway. Calculating which is ultimately better for the environment a 6-ounce juice box or a 6-ounce bottle is very difficult. 38
But calculating which is better in the minds of a society concerned with recycling is easy many primary schools forbid kids to bring juice boxes to school. The benefits from products that are degradable and biodegradable is another controversial area. Environmental groups argue that there is no evidence that degradability offers any advantage if a product is disposed in a landfill, where all waste decays very slowly. Several states have brought legal action against companies that made degradability claims for plastic trash bags and disposable diapers. In fact, degradable garbage can be more harmful than inert garbage. If the landfill leaks, it is the degraded garbage that presents a problem. The claim of compostable is problematic as well. Composting refers to the biological decay of organic materials. The problem arises from the fact that even though many products can be composted, there are very few plants available in the United States that engage in composting municipal solid waste. It is true that green marketing can distort, mislead and trivialize environmental issues. It has even been referred to as ecopornography. However, an important point, too often ignored, is that green marketing is, at the same time, a very good sign. Producers and advertisers develop products geared toward what it is they people care about. The increasing frequency of green marketing serves as a barometer of public concern for the environment. A society in which companies are jockeying for environmental product loyalty is better served than one in which companies are ignoring the issue unless, of course, green marketing produces such public complacency that it prohibits the development of more far reaching, long- term solutions to environmental crises. Correcting the Problem There are several possible ways of correcting the problem. One approach focuses on educating the buying public. Another aims at greater regulation of claims. Because green labelling is perceived as a marketing issue, the Federal Trade Commission has been asked by both manufacturers and the packaging industry to issue a nationwide rule regulating environmental claims. The FTC has formed a task force to deal with environmental claims. 39
In an attempt to educate the public, several countries, including Germany, Canada, Japan, the European Communities and the Nordic Council have developed a program of green seals. This label can only be applies to products meeting certain criteria (e.g., emphasis on recycling, reducing pollution) in defined product categories. The U.S Environmental Protection Agency considered proposed legislation to set up a quasi-governmental reviewing board that could issue a seal of approval. However, based on problems other countries were having, the EPA dropped the idea. In the absence of leadership at the federal level, several states and regional groups have developed their own state green labels. There are also private national environment certification (green seal) programs. Some industries have developed an ethical code that forbids environmental/health/safety appeals. Pesticide manufacturers, for example, consider themselves ethically obliged not to market their products as less environmentally risky than competition. However, this diminishes the incentive to develop an environmentally better product, and it prohibits consumers from finding out when such a product has been developed.
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CONSUMER ANALYSIS WITH RESPECT TO GREEN MARKETING
The last decade has witnessed a dramatic increase in environmental consciousness worldwide. The increase in environmental consciousness had a profound effect on consumer behaviour, with the green product market expanding at a remarkable rate. With this, the work of marketers becomes more complex as they need to target the greener segments differently. The study is undertaken to find relevant insights about an ecologically conscious Indian consumer. An attempt has been made to understand the buying motives in purchase of green products. Being green is not enough, consumers expect companies to have green products that are superior or at least at par with conventional products. Companies green initiatives do influence consumer purchasing behaviour. Hence it is important to build the trust.
RESEARCH METHODOLOGY Research design: descriptive Sampling technique: convenient and random sampling Sample size: 55 Area: new delhi Time Period: October to dec 2011 Data collection method: 1) personally administered survey 2) personal direct interviews of consumers 3) secondary research
Perceptions about green products Consumers think of green products as those that minimize negative impact on the environment. 41
Eg: energy-efficient, recyclable, natural or organic
LIMITATIONS
A convenience sample was used for the data collection which makes the results not readily generalizable. Although great effort was put into get a sample which includes people from different demographics. This study was conducted in delhi, so it is difficult to determine whether it can be extended to a larger population outside this region. This study is not product specific. This study was conducted only to understand the perceptions of consumers of about green products as a whole. Personal bias of respondents while answering the questions may have skewed the results slightly. However, an effort has been made to verify the results through all sorts of qualitative and quantitative data.
LEARNING
The study helped me think pro-actively on a topic of interest. Talking to people and understanding their perceptions was an enriching experience The purchasing pattern of Indian consumers is aligned with that of their global counterparts, thus I have been able to map this phenomena in the global context.
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CONSUMERS ARE NOW AWARE An important rule in marketing green products is to minimize the sacrifices that consumers must make in order to buy and use 'green' products. Improvements must be substantive, and if possible backed by hard facts. Different environmental attributes are important in different product categories. Nevertheless, consumers generally feel that the more attributes there are, the better. A good strategy is to offer environmental improvements in several categories at the same time, such as water pollution, solid waste, and manufacturing processes. When consumers are faced with a trade-off between product attributes, the environment almost always loses. Many products that require consumers to make such trade-offs have failed to establish themselves in the marketplace.
To succeed, eco-entrepreneurs must not neglect the traditional values of price, quality, convenience and availability. Price: No matter what consumers say, few will pay extra for greener products. Premiums of more than around 2% can be charged only if the consumer perceives additional product value. Quality: Many people think 'green' products will be less effective than existing brands, and are even less likely to sacrifice quality than they are price. Assurances of quality are absolutely essential, and must be communicated convincingly. Quality is judged on many features, including performance, look, feel, fit, comfort, and durability. Convenience: Only minimal inconvenience is tolerated by consumers of green products. Availability: Very few consumers will go out of their way to buy green products. In a 1990 poll, 58% of respondents cited poor product availability as a reason for not purchasing more green products. If you decide to target this market, 43
Your products must be significantly better, in environmental terms, than the competition, or else you will be viewed as a hypocrite as well as losing the sale; You must provide clear, persuasive and comprehensive information on what sets your product apart environmentally; You should monitor competitors to see whether they are developing products almost as green as yours, but without the price and quality trade-offs. You can keep ahead of the green development curve by minimising the sacrifices required to purchase or use your product. Both traditional and 'green' companies are beginning to offer consumers environmental improvements that do not involve a price premium or a loss of quality.
WHO ARE GREEN CONSUMERS ? A Global Perspective
Understanding the demographics of green consumerism can help entrepreneurs explore the environmental market, and home in on likely prospects. Research has shown that green consumers: are sincere in their intentions, with a growing commitment to greener lifestyles; almost always judge their environmental practices as inadequate; do not expect companies to be perfect in order to be considered 'green'. Rather, they look for companies that are taking substantive steps and have made a commitment to improve. However, they also: tend to overstate their green behaviour, including the number of green products they actually use; want environmental protection to be easy, and not to entail major sacrifices; 44
tend to distrust companies' environmental claims, unless they have been independently verified; lack knowledge about environmental issues, and tend not to trust themselves to evaluate scientific information about environmental impacts. However, at the same time they are eager to learn, and this means that consumer education is one of the most effective strategies that entrepreneurs can use. The most responsive age group tends to be young adults, many of whom are influenced by their children. In addition, women are a key target for greener products, and often make purchases on behalf of men. The best 'green' customers are people with more money to spend. As a result, the most promising products for 'greening' tend to be at the higher end of the market. The most promising outlets for green products are retail stores frequented by better-off shoppers. In general, green consumers have the education and intellectual orientation to appreciate value; they will understand evidence that is presented in support of environmental claims. Globally, children and teens are generally more concerned than adults about the environment, and are more knowledgeable about green alternatives. Increasingly, they influence their parents' purchasing decisions. Equally importantly, millions of them will reach adulthood in the next decade, and gain purchasing power of their own.
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CONSUMER SURVEY Questionnaire Dear respondent, I am a student of Masters of Fashion Management, NIFT MUMBAI; conducting a survey on ' Green Marketing'. This survey 46
focuses on a consumer's awareness, flexibility to, expectations from and impact of green marketing on them. You are kindly requested to fill the following questionnaire carefully giving your views and observations which will be used only for academic purposes and will be kept confidential. Thank you for your valuable time and knowledge.
1) WHICH INDUSTRY DO YOU THINK IS IN NEED OF GREEN MARKETING THE MOST IN ORDER TO CONTRIBUTE EFFECTIVELY TO THE ENVIRONMENT? Automobiles 24 44% Electronics 3 5% Textile/Fasion 4 7% Leather manufacturing 5 9% paper and furniture manufacturing 18 33% FMCG 1 2%
Test Statistics
VAR00 001 VAR00 002 Chi- Square .000 a .000 a
Df 5 5 Asymp. Sig. 1.000 1.000
SINCE THE LEVEL OF SICNIFICANCE IS GREATER THAN 0.05, NULL HYPOTHESIS WILL BE ACCEPTED.
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2) DO YOU THINK CONSUMERS HAVE AN EQUALLY IMPORTANT ROLE TO PLAY IN GREEN MARKETING?
Ho: THERE IS NO SIGNIFICANT RELATION SHIP BETWEEN CONSUMER PARTICIPATION AND EFFECTIVE GREEN MARKETING
H1: THERE IS SIGNIFICANT RELATIONSHIP BETWEEN CONSUMER PARTICIPATION AND EFFECTIVEGREEN MARKETING
yes 51 93% no 3 5% cant say 1 2%
VAR00003 VAR00004 Chi- Square .000 a .000 a
Df 2 2 Asymp. Sig. 0.043 0.043 SINCE THE LEVEL OF SIGNIFICANCE IS LESS THAN 0.05 THEREFORE THE ALTERNATE HYPOTHESIS WILL BE ACCEPTATED.
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Ho : NEED FOR GREEN MARKETING IS INDEPENDENT OF AMOUNT OF CONSUMPTION H1: NEED FOR GREEN MARKETING IS DEPENDENT ON AMOUNT OF CONSUMPTION
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Ho: There is no significant relationship between purchase of eco-friendly products and brand loyalty
H1: there is significant relationship between purchase of eco-friendly products and brand loyalty
Test Statistics
VAR00 009 VAR00 010 Chi- Square .000 a .667 b
Df 5 4 Asymp. Sig. 1.000 .955
SINCE THE LEVEL OF SICNIFICANCE IS GREATER THAN 0.05, NULL HYPOTHESIS WILL BE ACCEPTED.
.
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Ho: Purchase of non-green products is insignificant of effective green marketing H1: Purchase of non-green products is significant of effective green marketing
Test Statistics
VAR00 009 VAR00 010 Chi- Square .000 a .000 a
Df 3 3 Asymp. Sig. 1.000 1.000
SINCE THE LEVEL OF SICNIFICANCE IS GREATER THAN 0.05, NULL HYPOTHESIS WILL BE ACCEPTED.
51
1) WHICH INDUSTRY DO YOU THINK IS IN NEED OF GREEN MARKETING THE MOST IN ORDER TO CONTRIBUTE EFFECTIVELY TO THE ENVIRONMENT? Automobiles 24 44% Electronics 3 5% Textile/Fasion 4 7% Leather manufacturing 5 9% paper and furniture manufacturing 18 33% FMCG 1 2%
Test Statistics
VAR00 001 VAR00 002 Chi- Square .000 a .000 a
Df 5 5 Asymp. Sig. 1.000 1.000
SINCE THE LEVEL OF SICNIFICANCE IS GREATER THAN 0.05, NULL HYPOTHESIS WILL BE ACCEPTED.
52
2) DO YOU THINK CONSUMERS HAVE AN EQUALLY IMPORTANT ROLE TO PLAY IN GREEN MARKETING?
Ho: THERE IS NO SIGNIFICANT RELATION SHIP BETWEEN CONSUMER PARTICIPATION AND EFFECTIVE GREEN MARKETING
H1: THERE IS SIGNIFICANT RELATIONSHIP BETWEEN CONSUMER PARTICIPATION AND EFFECTIVEGREEN MARKETING
yes 51 93% no 3 5% cant say 1 2%
VAR00003 VAR00004 Chi- Square .000 a .000 a
Df 2 2 Asymp. Sig. 0.043 0.043 SINCE THE LEVEL OF SIGNIFICANCE IS LESS THAN 0.05 THEREFORE THE ALTERNATE HYPOTHESIS WILL BE ACCEPTATED.
Ho : NEED FOR GREEN MARKETING IS INDEPENDENT OF AMOUNT OF CONSUMPTION H1: NEED FOR GREEN MARKETING IS DEPENDENT ON AMOUNT OF CONSUMPTION
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Ho: There is no significant relationship between purchase of eco-friendly products and brand loyalty
H1: there is significant relationship between purchase of eco-friendly products and brand loyalty
Test Statistics
VAR00 009 VAR00 010 Chi- Square .000 a .667 b
Df 5 4 Asymp. Sig. 1.000 .955
SINCE THE LEVEL OF SICNIFICANCE IS GREATER THAN 0.05, NULL HYPOTHESIS WILL BE ACCEPTED.
.
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Ho: Purchase of non-green products is insignificant of effective green marketing H1: Purchase of non-green products is significant of effective green marketing
Test Statistics
VAR00 009 VAR00 010 Chi- Square .000 a .000 a
Df 3 3 Asymp. Sig. 1.000 1.000
SINCE THE LEVEL OF SICNIFICANCE IS GREATER THAN 0.05, NULL HYPOTHESIS WILL BE ACCEPTED.
56
LIMITATIONS A convenience sample was used for the data collection which makes the results not readily generalizeable. Although great effort was put into get a sample which includes people from different demographics. This study was conducted in Delhi, so it is difficult to determine whether it can be extended to a larger population outside this region. This study is not product specific. This study was conducted only to understand the perceptions of consumers of about green products as a whole. Personal bias of respondents while answering the questions may have skewed the results slightly. However, an effort has been made to verify the results through all sorts of qualitative and quantitative data.
LEARNING- The study helped me think pro-actively on a topic of interest. Talking to people and understanding their perceptions was an enriching experience The purchasing pattern of Indian consumers aligned with that of their global counterparts thus I have been able to map this phenomena in the global context.
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The future prospects of GREEN MARKETING:- As manufacturers and marketers launch eco-friendly products in India, green will be the new marketing mantra, as predicted by many marketing gurus. But the big question is: Can Indian consumers be influenced by eco appeal? Is it a big enough differentiator to impact a purchase decision? Will consumers be willing to pay a premium on eco-friendly products? The answers, at the moment, appear conflicting. But marketing pundits are quick to observe that behind the conflict is a clear direction green will be the new marketing mantra. Going by Wipros launch last year of its GreenWare range of computers that were RoHS compliant (all electrical and electronic products post July 1, 2006, must pass RoHS compliance), one cannot imagine that green marketing could have an impact. Few seemed to have heard of the range, and the fact that it did not carry a premium price tag did not matter either. But heres the surprise: the results of GreenFactor, a global survey, conducted by US-based Strategic Oxygen, GCI Group and Cohn & Wolfe, amongst enterprise IT decision makers released in June, showed India as the leader in green IT potential. According to the survey, The 2011 ImagePower Green Brands Survey - the largest such study to date, capturing the perspectives of more than 9,000 consumers in eight countries. Saw a split between responses in the emerging countries (India, China and Brazil) and those in the developed countries (Australia, France, Germany, the United Kingdom, and the United States), and the details proved enlightening. They uncovered several trends affecting consumer behaviour: 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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Overall, consumers are less likely to cite hurdles to buying green compared to last year. A majority of respondents in India, say they intend to spend more on green products in the next year. Consumers are putting a higher value on green products with 48% of Indian consumers, willing to spend over 10% more on a product simply because it is green. Respondents indicated they are most likely to purchase green products in the household, grocery, personal care, and packaged food and beverage categories. This is in line with the on-going interest worldwide in purchasing green for products that are in me and on me, but the categories poised for growth paint a new picture. Consumers in all markets intend to go green on more big-ticket items during the next year. India, China and Brazil show the biggest potential for increased sales of environmental friendly automobiles. In India, 28% of consumers say they intend to purchase green auto this year which is significantly higher than the 16% that purchased green auto last year. Consumers in the UK, US and France say they plan to buy more green technology brands this year. As consumers become more sophisticated on buying green, demand for green big-ticket products will grow. Companies will have to adapt their marketing strategies to show not only the environmental impact and related greenness of their products, but also the larger end benefits in order to meet their customers changing needs. Respondents of the survey indicated they are most likely to purchase green products in the household, grocery, personal care, and packaged food and beverage categories. This is in line with the on-going interest worldwide in purchasing green for products that are in me and on me, but the categories poised for growth paint a new picture. Consumers in all markets intend to go green on more big-ticket items during the next year. India, China and Brazil show the biggest potential for increased sales of environmental friendly automobiles. In India, 28% of consumers say they intend to purchase green auto this year which is significantly higher than the 16% that purchased green auto last year. Consumers in the UK, US and France say they plan to buy more green technology brands this year. As consumers become more sophisticated on buying green, demand for green big-ticket products will grow. Companies will have to adapt their marketing strategies to show not only the environmental impact and related greenness of their products, but 59
also the larger end benefits in order to meet their customers changing needs. The 2011 ImagePower Green Brands Survey tells us that greenness remains a major issue for consumers around the world, and that they expect green practices from the companies they do business with. There are huge opportunities in the Indian market for companies that establish their green credentials early.
The results of the survey can be summarized as such:-
Awareness in terms of GREEN MARKETING on global level:
global DATA: 20092011 In the next year, do you plan to spend more, less, or the same amount on green products and services? 60
global DATA: 2011 How much more, in percentage terms, are you willing to spend on a product because it is green?
61
INDIA DATA: 20092011
Do you think the state of the environment in this country is headed in the right direction, or is it on the wrong track? 57%