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

TheAmerican Marketing Association (AMA) held the first workshop on

"EcologicalMarketing" in 1975. The proceedings of this workshop resulted in one of the first
bookson green marketing entitled "Ecological Marketing".The first wave of Green
Marketing occurred in the 1980s. Corporate SocialResponsibility (CSR) Reports
started with the ice cream seller Ben & Jerry's where thefinancial report was
supplemented by a greater view on the company's environmentalimpact. In 1987
a document prepared by the World Commission on Environment
andD e v e l o p m e n t d e f i n e d s u s t a i n a b l e d e v e l o p m e n t a s m e e t i n g “ t h e n e e d s
o f t h e p r e s e n t without compromising the ability of future generations to meet
their own need”, thisb e c a m e k n o w n a s t h e B r u n d t l a n d R e p o r t a n d w a s
a n o t h e r s t e p t o w a r d s w i d e s p r e a d thinking on sustainability in everyday
activity. Two tangible milestones for wave 1 of green marketing came in the
form of published books, both of which were called GreenMarketing. They were
by Ken Peattie (1992) in the United Kingdom and by JacquelynOttman (1993) in
the United States of America.In the years after 2000 a second wave of Green marketing
emerged. By now CSR and theTriple Bottom Line (TBL) were widespread. Such publications
as a 2005 United NationsR e p o r t , t h e n i n 2 0 0 6 a b o o k b y A l G o r e a n d t h e U K
S t e r n R e p o r t b r o u g h t s c i e n t i f i c - environmental arguments to a wide public in an
easy to understand way. This knowledgeassessed the implications of moving to a low-carbon
global economy and the potential of different approaches. This new wave of Green Marketing
differed from the first wave inmany respects. It is curious to note that Green Marketing Wave
1 followed an economicrecession, whereas Green Marketing Wave 2 came before the global
recessions that cometo be known as the “Credit Crunch”. This difference may be
significant in that it mays u g g e s t t h a t G r e e n M a r k e t i n g i s h e r e t o s t a y . T h e
green marketing concept dictates,amongst other things, less use,
r e c y c l i n g a n d a v o i d i n g w a s t e , j u s t s o m e o f t h e w a y s society reacts at times of
recession. (see Bradley 2003 for 6 green marketing strategies).8

According to Jacquelyn Ottman, (author of Green Marketing: Opportunity

for Innovation) from an organizational standpoint, environmental considerations
should beintegrated into all aspects of marketing  new product
development andcommunications and all points in between. The holistic nature of green
also suggests thatbesides suppliers and retailers new stakeholders be enlisted, including
educators,m e m b e r s o f t h e c o m m u n i t y , r e g u l a t o r s , a n d N G O s .
E n v i r o n m e n t a l i s s u e s s h o u l d b e balanced with primary customer needsThe past
decade has shown that harnessing consumer power to effect positivee n v i r o n m e n t a l
change is far easier said than done. The so-called "green
c o n s u m e r " movements in the U.S. and other countries have struggled to reach
critical mass and toremain in the forefront of shoppers' minds. While public opinion polls
taken since the late1980s have shown consistently that a significant percentage of consumers
in the U.S. andelsewhere profess a strong willingness to favor environmentally conscious
products andcompanies, consumers' efforts to do so in real life have remained sketchy at best.
One of green marketing's challenges is the lack of standards or public consensus
about whatconstitutes "green," according to Joel Makower, a writer on green marketing. In
essence,t h e r e i s n o d e f i n i t i o n o f " h o w g o o d i s g o o d e n o u g h " w h e n i t
comes to a product or company making green marketing claims. This
l a c k o f c o n s e n s u s - - b y c o n s u m e r s , marketers, activists, regulators, and influential
people -- has slowed the growth of greenproducts, says Makower, because companies
are often reluctant to promote their greenattributes, and consumers are often skeptical
about claims.Despite these challenges, green marketing has continued to gain adherents,
particularlyi n l i g h t o f g r o w i n g g l o b a l c o n c e r n a b o u t c l i m a t e c h a n g e . T h i s
c o n c e r n h a s l e d m o r e companies to advertise their commitment to reduce their climate
impacts, and the effectthis is having on their products and services9

A GREEN MARKET IN NEWCASTLEA GREEN MARKET IN NEWYORK

10

A GREEN MARKET IN NEWCASTLEA GREEN MARKET IN NEWYORK

10

WHAT IS GREEN MARKETING?

Unfortunately, a majority of people believe that green marketing refers solely tothe
promotion or advertising of products with environmental characteristics. Terms
likePhosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally
Friendlyare some of the things consumers most often associate with green marketing. While
theseterms are green marketing claims, in general green marketing is a much broader
concept,o n e t h a t c a n b e a p p l i e d t o c o n s u m e r g o o d s , i n d u s t r i a l g o o d s a n d
e v e n s e r v i c e s . F o r example, around the world there are resorts that are beginning to
promote themselves as"ecotourist" facilities, i.e., facilities that "specialize" in experiencing
nature or operatingin a fashion that minimizes their environmental impact.Thus green
marketing incorporates a broad range of activities, including productmodification, changes
to the production process, packaging changes, as well asmodifying advertising. Yet
defining green marketing is not a simple task. Indeed theterminology used in this
area has varied, it includes: Green Marketing, EnvironmentalMarketing and
Ecological Marketing. While green marketing came into prominence int h e l a t e
1980s and early 1990s, it was first discussed much earlier. The
A m e r i c a n Marketing Association (AMA) held the first workshop on "Ecological
Marketing" in1 9 7 5 . T h e p r o c e e d i n g s o f t h i s w o r k s h o p r e s u l t e d i n o n e o f
t h e f i r s t b o o k s o n g r e e n marketing entitled "Ecological Marketing". Since that
time a number of other books onthe topic have been published.The AMA workshop
attempted to bring together academics, practitioners, andpublic policy makers to
examine marketing's impact on the natural environment. At thisworkshop ecological
marketing was defined as:“ T h e s t u d y o f t h e p o s i t i v e a n d n e g a t i v e a s p e c t s o f
m a r k e t i n g a c t i v i t i e s o n pollution, energy depletion and non-energy resource
depletion.”11

This early definition has three key components – 1) It is a subset of the overall marketing
activity;2) It examines both the positive and negative activities; and3) A narrow range of
environmental issues are examined.W h i l e t h i s d e f i n i t i o n i s a u s e f u l s t a r t i n g
p o i n t , t o b e c o m p r e h e n s i v e g r e e n marketing needs to be more broadly defined.
Before providing an alternative definition itshould be noted that no one definition or
terminology has been universally accepted. Thislack of consistency is a large part of
the problem, for how can any issue be evaluated if all researchers have a
different perception of what they are researching. The followingdefinition is
much broader than those of other researchers and it encompasses all
major components of other definitions. The definition is – “Green or Environmental
Marketing consists of all activities designed to generateand facilitate any exchanges
intended to satisfy human needs or wants, such that thesatisfaction of these needs
and wants occurs, with minimal detrimental impact on thenatural environment.”This
definition incorporates much of the traditional components of the marketingd e f i n i t i o n
that is "All activities designed to generate and facilitate any
e x c h a n g e s intended to satisfy human needs or wants". Therefore it ensures that
the interests of theorganization and all its consumers are protected, as voluntary
exchange will not takep l a c e u n l e s s b o t h t h e b u y e r a n d s e l l e r m u t u a l l y
benefit. The above definition alsoincludes the protection of the natural
e n v i r o n m e n t , b y a t t e m p t i n g t o m i n i m i z e t h e detrimental impact this exchange
has on the environment. This second point is important,for human consumption by its very
nature is destructive to the natural environment. (Tobe accurate products making green
claims should state
they are
"less environmentallyharmful"
rather than
"Environmentally Friendly."
) Thus green marketing should look at minimizing environmental harm, not necessarily
eliminating it.12

WHAT ARE “GREEN PRODUCTS” OR “ENVIRONMENTAL PRODUCTS”

Although no consumer product has a zero impact on the environment, in business,the terms
“green product” and “environmental product” are used commonly to
describethose that strive to protect or enhance the natural environment by
conserving energyand/or resources and reducing or eliminating use of toxic agents,
pollution, and waste.Greener, more sustainable products need to dramatically increase the
productivityof natural resources, follow biological/ cyclical production models,
encouraged e m a t e r i a l i z a t i o n , a n d r e i n v e s t i n a n d c o n t r i b u t e t o t h e p l a n e t ’ s
“ n a t u r a l ” c a p i t a l . Escalating energy prices, concerns over foreign oil
dependency, and calls for energyconservation are creating business opportunities
for energy-efficient products, cleanenergy, and other environmentally sensitive
innovations and products.
ONE OF THE MOST COMMONLY USED GREEN PRODUCTS – THE PHILIPS CFL
13

WHY IS GREEN MARKETING IMPORTANT?

The question of why green marketing has increased in importance is quite simpleand relies on
the basic definition of Economics:“Economics is the study of how people use their limited
resources to try to satisfyunlimited wants.”Thus mankind has limited resources on the earth,
with which she/he must attemptto provide for the worlds' unlimited wants. In market societies
where there is
"freedomof choice"
, it has generally been accepted that individuals and organizations have theright to
attempt to have their wants satisfied. As firms face limited natural resources, theymust
develop new or alternative ways of satisfying these unlimited wants.
Ultimatelygreen marketing looks at how marketing activities utilize these limited
resources, whilesatisfying consumers wants, both of individuals and industry, as
well as achieving theselling organization's objectives.
THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS
14

WHY IS GREEN MARKETING IMPORTANT?

The question of why green marketing has increased in importance is quite simpleand relies on
the basic definition of Economics:“Economics is the study of how people use their limited
resources to try to satisfyunlimited wants.”Thus mankind has limited resources on the earth,
with which she/he must attemptto provide for the worlds' unlimited wants. In market societies
where there is
"freedomof choice"
, it has generally been accepted that individuals and organizations have theright to
attempt to have their wants satisfied. As firms face limited natural resources, theymust
develop new or alternative ways of satisfying these unlimited wants.
Ultimatelygreen marketing looks at how marketing activities utilize these limited
resources, whilesatisfying consumers wants, both of individuals and industry, as
well as achieving theselling organization's objectives.
THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS
14

BENEFITS OF GREEN MARKETING

15

WHY ARE FIRMS USING GREEN MARKETING?

When looking through the literature there are several suggested reasons for firmsincreased
use of Green Marketing. Five possible reasons cited are:1. Organizations perceive
environmental marketing to be an opportunity that can beused to achieve its
objectives;2. Organizations believe they have a moral obligation to be more
sociallyresponsible;3. Governmental bodies are forcing firms to become more responsible;4.
Competitors' environmental activities pressure firms to change
their environmental marketing activities; and5. Cost factors associated with waste disposal,
or reductions in material usage forcesfirms to modify their behavior.
DELHI’S FAMOUS CNG AUTORICKSHAW
OPPORTUNITIES
It appears that all types of consumers, both individual and industrial are becomingm o r e
concerned and aware about the natural environment. In a 1992
s t u d y o f 1 6 countries, more than 50% of consumers in each country, other than
Singapore, indicatedthey were concerned about the environment. A 1994 study in Australia
found that 84.6%
of the sample believed all individuals had a responsibility to care for the environment.
Afurther 80% of this sample indicated that they had modified their behavior,
includingtheir purchasing behavior, due to environmental reasons. As demands
change, manyfirms see these changes as an opportunity to be exploited.Given these
figures, it can be assumed that firms marketing goods withenvironmental
characteristics will have a competitive advantage over firms marketingnon-
environmentally responsible alternatives. There are numerous example of firms whohave
strived to become more environmentally responsible, in an attempt to better satisfytheir
consumer needs.
•
McDonald's replaced its clam shell packaging with waxed paper
b e c a u s e o f increased consumer concern relating to polystyrene production and
Ozonedepletion.
•
Tuna manufacturers modified their fishing techniques because of the
increasedconcern over driftnet fishing, and the resulting death of dolphins.
•
Xerox introduced a "high quality" recycled photocopier paper in an attempt
tosatisfy the demands of firms for less environmentally harmful products.T h i s i s n o t t o
imply that all firms who have undertaken environmental
m a r k e t i n g activities actually improve their behavior. In some cases firms have misled
consumers ina n a t t e m p t t o g a i n m a r k e t s h a r e . I n o t h e r c a s e s f i r m s
h a v e j u m p e d o n t h e g r e e n bandwagon without considering the
a c c u r a c y o f t h e i r b e h a v i o r , t h e i r c l a i m s , o r t h e effectiveness of their
products. This lack of consideration of the true "greenness" of activities may result
in firms making false or misleading green marketing claims.
SOCIAL RESPONSIBILITY
Many firms are beginning to realize that they are members of
t h e w i d e r community and therefore must behave in an environmentally
responsible fashion. Thistranslates into firms that believe they must achieve
environmental objectives as well asprofit related objectives. This results in
environmental issues being integrated into thefirm's corporate culture. Firms in this
situation can take two perspectives;17

1) They can use the fact that they are environmentally responsible as a marketingtool; or 2)
They can become responsible without promoting this fact.There are examples of firms
adopting both strategies. Organizations like the BodyShop heavily promote the fact that
they are environmentally responsible. While thisb e h a v i o r i s a c o m p e t i t i v e
a d v a n t a g e , t h e f i r m w a s e s t a b l i s h e d s p e c i f i c a l l y t o o f f e r consumers
environmentally responsible alternatives to conventional cosmetic products.This
philosophy is directly tied to the overall corporate culture, rather than simply being
acompetitive tool.An example of a firm that does not promote its environmental initiatives is
Coca-Cola. They have invested large sums of money in various recycling activities, as well
ashaving modified their packaging to minimize its environmental impact. While
beingconcerned about the environment, Coke has not used this concern as a
marketing tool.Thus many consumers may not realize that Coke is a very
environmentally committedorganization.Another firm who is very environmentally
responsible but does not promote thisf a c t , a t l e a s t o u t s i d e t h e o r g a n i z a t i o n , i s
W a l t D i s n e y W o r l d ( W D W ) . W D W h a s a n extensive waste management program
and infrastructure in place, yet these facilities arenot highlighted in their general tourist
promotional activities.
SOME COMPANIES THAT USE GREEN MARKETING AS SOCIALRESPONSIBILITY.

GOVERNMENTAL PRESSURE
As with all marketing related activities, governments want to "protect" consumersand society;
this protection has significant green marketing implications. Governmentalregulations
relating to environmental marketing are designed to protect consumers inseveral
ways,1) Reduce production of harmful goods or by-products;2) Modify consumer and
industry's use and/or consumption of harmful goods; or 3) Ensure that all types of
consumers have the ability to evaluate theenvironmental composition of
goods.Governments establish regulations designed to control the amount of
hazardouswastes produced by firms. Many by-products of production are
controlled through theissuing of various environmental licenses, thus modifying
organizational behavior. Insome cases governments try to "induce" final
consumers to become more responsible.For example, some governments have
introduced voluntary curb-side recyclingprograms, making it easier for consumers to act
responsibly. In other cases governmentstax individuals who act in an irresponsible
fashion. For example in Australia there is ahigher gas tax associated with leaded
petrol.O n e o f t h e m o r e r e c e n t p u b l i c i z e d e n v i r o n m e n t a l r e g u l a t i o n s
undertaken bygovernments has been the establishment of guidelines
d e s i g n e d t o " c o n t r o l " g r e e n marketing claims. These regulations include the
Australian Trade Practices Commission's( T P C ) " E n v i r o n m e n t a l C l a i m s i n
M a r k e t i n g - A G u i d e l i n e , t h e U S F e d e r a l T r a d e Commission's (FTC)
"Guides for the Use of Environmental Marketing Claims" and theregulations
suggested by the National Association of Attorneys-General. Theseregulations are all
designed to ensure consumers have the appropriate information whichw o u l d e n a b l e
them to evaluate firm's environmental claims. In addition to
t h e s e guidelines many States in the US have introduced legislation to control
variousenvironmental marketing activities. In most cases these State laws are more stringent
thanthe FTC's guidelines. To date the majority of prosecutions of firms using
misleadinggreen marketing has occurred in State rather than Federal courts.19

Thus governmental attempts to protect consumers from false or misleading claimsshould

theoretically provide consumers with the ability to make more informed decisions.In
Australia where regulations have affected many companies, one unintended
casualtywas an advertisement for the Federal Government's environmental
labeling program" E n v i r o n m e n t a l C h o i c e . " T h i s a d w a s d e e m e d t o b r e a c h
t h e T P C ' s g u i d e l i n e s , a s i t implied that only products with the logo were
environmentally responsible.
COMPETITIVE PRESSURE
Another major force in the environmental marketing area has been firms' desire tomaintain
their competitive position. In many cases firms observe competitors promotingtheir
environmental behaviors and attempt to emulate this behavior. In some
instancesthis competitive pressure has caused an entire industry to modify and
thus reduce itsd e t r i m e n t a l e n v i r o n m e n t a l b e h a v i o r . F o r e x a m p l e , i t c o u l d
b e a r g u e d t h a t X e r o x ' s "Revive 100% Recycled paper" was introduced a few years ago
in an attempt to addresst h e i n t r o d u c t i o n o f r e c y c l e d p h o t o c o p i e r p a p e r b y
o t h e r m a n u f a c t u r e r s . I n a n o t h e r example when one tuna manufacture stopped using
driftnets the others followed suit.
COST OR PROFIT ISSUES
Firms may also use green marketing in an attempt to address cost or profit relatedi s s u e s .
Disposing of environmentally harmful by-products, such as
p o l y c h l o r i n a t e d biphenyl (PCB) contaminated oil are becoming increasingly
costly and in some casesd i f f i c u l t . T h e r e f o r e f i r m s t h a t c a n r e d u c e h a r m f u l
w a s t e s m a y i n c u r s u b s t a n t i a l c o s t savings. When attempting to minimize waste,
firms are often forced to re-examine their p r o d u c t i o n p r o c e s s e s . I n t h e s e c a s e s
t h e y o f t e n d e v e l o p m o r e e f f e c t i v e p r o d u c t i o n processes that not only reduce
waste, but reduce the need for some raw materials. Thisserves as a double cost
savings, since both waste and raw material are reduced.In other cases firms attempt to find
end-of-pipe solutions, instead of minimizingwaste. In these situations firms try to find
markets or uses for their waste materials, where20

one firm's waste becomes another firm's input of production. One Australian example of this
is a firm who produces acidic waste water as a by-product of production and sells itto a firm
involved in neutralizing base materials.T h e l a s t w a y i n w h i c h c o s t o r p r o f i t
i s s u e s m a y a f f e c t f i r m s ' e n v i r o n m e n t a l marketing activities is that new industries
may be developed. This can occur in two ways:1) A firm develops a technology for reducing
waste and sells it to other firms; or 2) A waste recycling or removal industry develops.For
example, firms that clean the oil in large industrial condensers increase thelife of
those condensers, removing the need for replacing the oil, as well as the need
todispose of the waste oil. This reduces operating costs for those owning the
condensersand generates revenue for those firms cleaning the oil.21

SOME PROBLEMS WITH GOING GREEN

No matter why a firm uses green marketing there are a number of
p o t e n t i a l problems that they must overcome. One of the main problems is that
firms using greenmarketing must ensure that their activities are not misleading to
consumers or industry,and do not breach any of the regulations or laws dealing with
environmental marketing.For example marketers in the US must ensure their green marketing
claims can meet thefollowing set of criteria, in order to comply with the FTC's guidelines.
Green marketingclaims must;
•
Clearly state environmental benefits;
•
Explain environmental characteristics;
•
Explain how benefits are achieved;
•
Ensure comparative differences are justified;
•
Ensure negative factors are taken into consideration; and
•
Only use meaningful terms and pictures.A n o t h e r p r o b l e m f i r m ’ s f a c e i s t h a t
t h o s e w h o m o d i f y t h e i r p r o d u c t s d u e t o increased consumer concern must
contend with the fact that consumers' perceptions aresometimes not correct. Take
for example the McDonald's case where it has replaced itsclam shells with
plastic coated paper. There is ongoing scientific debate which is
moreenvironmentally friendly. Some scientific evidence suggests that when taking a cradle-
to-grave approach, polystyrene is less environmentally harmful. If this is the
caseM c D o n a l d ' s b o w e d t o c o n s u m e r p r e s s u r e , y e t h a s c h o s e n t h e m o r e
e n v i r o n m e n t a l l y harmful option.When firms attempt to become socially
responsible, they may face the risk thatthe environmentally responsible action of today
will be found to be harmful in the future.Take for example the aerosol industry
which has switched from CFCs(chlorofluorocarbons) to HFCs
(hydrofluorocarbons) only to be told HFCs are also agreenhouse gas. Some firms
now use DME (dimethyl ether) as an aerosol propellant,which may also harm the
ozone layer. Given the limited scientific knowledge at any point22

in time, it may be impossible for a firm to be certain they have

m a d e t h e c o r r e c t environmental decision. This may explain why some firms,
like Coca-Cola and WaltDisney World, are becoming socially responsible
without publicizing the point. Theymay be protecting themselves from potential future
negative backlash; if it is determinedthey made the wrong decision in the past.While
governmental regulation is designed to give consumers the opportunity tomake better
decisions or to motivate them to be more environmentally responsible, therei s d i f f i c u l t y
in establishing policies that will address all environmental issues.
F o r example, guidelines developed to control environmental marketing address
only a verynarrow set of issues, i.e., the truthfulness of environmental
marketing claims. If governments want to modify consumer behavior they need to
establish a different set of r e g u l a t i o n s . T h u s g o v e r n m e n t a l a t t e m p t s t o p r o t e c t
t h e e n v i r o n m e n t m a y r e s u l t i n a proliferation of regulations and guidelines, with no
one central controlling body.Reacting to competitive pressures can cause all
"followers" to make the samem i s t a k e a s t h e " l e a d e r . " A c o s t l y e x a m p l e o f
t h i s w a s t h e M o b i l C o r p o r a t i o n w h o followed the competition and introduced
"biodegradable" plastic garbage bags. Whilet e c h n i c a l l y t h e s e b a g s w e r e
b i o d e g r a d a b l e , t h e c o n d i t i o n s u n d e r w h i c h t h e y w e r e disposed did not allow
biodegradation to occur. Mobil was sued by several US states for using misleading
advertising claims. Thus blindly following the competition can havecostly
ramifications.The push to reduce costs or increase profits may not force firms to
address theimportant issue of environmental degradation. End-of-pipe solutions
may not actuallyr e d u c e t h e w a s t e b u t r a t h e r s h i f t i t a r o u n d . W h i l e t h i s
m a y b e b e n e f i c i a l , i t d o e s n o t necessarily address the larger environmental
problem, though it may minimize its shortterm affects. Ultimately most waste
produced will enter the waste stream, therefore to beenvironmentally responsible
organizations should attempt to minimize their waste, rather than find "appropriate" uses for
it.23

GREEN HOUSE GASES AND THEIR SOURCES

24
AN EXAMPLE OF GREEN MARKETING MYOPIA
In 1994, Philips launched the “EarthLight,” a super energy-efficient
compactfluorescent light (CFL) bulb designed to be an environmentally preferable substitute
for the traditional energy-intensive incandescent bulb. The CFL’s clumsy shape,
however,was incompatible with most conventional lamps, and sales languished.
After studyingconsumer response, Philips reintroduced the product in 2000 under the name
“Marathon,”to emphasize the bulb’s five year life. New designs offered the look
and versatility of c o n v e n t i o n a l i n c a n d e s c e n t l i g h t b u l b s a n d t h e p r o m i s e
o f m o r e t h a n $ 2 0 i n e n e r g y savings over the product’s life span compared to
incandescent bulbs.
PHILIPS MARATHON BULBS
The new bulbs were also certified by the U.S. Environmental Protection Agency’s( E P A )
Energy Star label. Repositioning CFL bulbs’ features into advantages
t h a t resonated with consumer valuesconvenience, ease-of-use, and credible cost
savings ultimately sparked an annual sales growth of 12 percent in a mature product
market.P h i l i p s ’ e x p e r i e n c e p r o v i d e s a v a l u a b l e l e s s o n o n h o w t o a v o i d
t h e c o m m o n pitfall of “green marketing myopia.” Philips called its original
entry “EarthLight” tocommunicate the CFL bulbs’ environmental advantage. While noble,
the benefit appealedto only the deepest green niche of consumers. The vast majority of
consumers, however,will ask, “If I use ‘green’ products, what’s in it for me?” In practice,
green appeals are notlikely to attract mainstream consumers unless they also offer a desirable
benefit, such asc o s t - s a v i n g s o r i m p r o v e d p r o d u c t p e r f o r m a n c e . T o a v o i d
g r e e n m a r k e t i n g m y o p i a , 26

marketers must fulfill consumer needs and interests beyond

w h a t i s g o o d f o r t h e environment.Thus we see how green marketing myopia
was faced by the Philips while tryingto bring into market the environment friendly light
bulbs.27

WHAT IS GREEN MARKETING MYOPIA

Green marketing must satisfy two objectives: improved environmental quality andcustomer
satisfaction. Misjudging either or overemphasizing the former at the expense of t h e l a t t e r
can be termed
“green marketing myopia”
. I n 1 9 6 0 , H a r v a r d b u s i n e s s professor Theodore Levitt introduced the
concept of
“marketing myopia”
i n a n o w - famous and influential article in the
Harvard Business Review
. In it, he characterized thecommon pitfall of companies’ tunnel vision, which focused on
“managing products” (thatis, product features, functions, and efficient production) instead of
“meeting customers’needs” (that is, adapting to consumer expectations and anticipation of
future desires).Levitt warned that a corporate preoccupation on products rather
than consumer needs was doomed to failure because consumers select products and new
innovations thato f f e r b e n e f i t s t h e y d e s i r e . R e s e a r c h i n d i c a t e s t h a t m a n y
green products have failedbecause of green marketing
m y o p i a  m a r k e t e r s ’ m y o p i c f o c u s o n t h e i r p r o d u c t s ’ “greenness” over the
broader expectations of consumers or other market players (such asregulators or
activists).F o r e x a m p l e , p a r t i a l l y i n r e s p o n s e t o t h e 1 9 8 7 M o n t r e a l
P r o t o c o l , i n w h i c h signatory countries (including the United States) agreed to
phase out ozone depleting28

chlorofluorocarbons (CFCs) by 2000, Whirlpool (in 1994) launched the “Energy

Wise”refrigerator, the first CFC free cooler and one that was 30 percent more efficient than
theU.S. Department of Energy’s highest standard. For its innovation, Whirlpool
won the“ G o l d e n C a r r o t , ” a $ 3 0 m i l l i o n a w a r d p a c k a g e o f c o n s u m e r
r e b a t e s f r o m t h e S u p e r - Efficient Refrigerator Program, sponsored by the Natural
Resources Defense Council andfunded by electric utilities. Unfortunately, Energy
Wise’s sales languished because theC F C - f r e e b e n e f i t a n d e n e r g y - s a v i n g s
d i d n o t o f f s e t i t s $ 1 0 0 t o $ 1 5 0 p r i c e p r e m i u m , particularly in markets
outside the rebate program, and the refrigerators did not offer additional features or
new styles that consumers desired.General Motors (GM) and Ford encountered similar
problems when theylaunched their highly publicized EV-1 and Think Mobility electric
vehicles, respectively,in the late 1990s to early 2000s in response to the 1990 zero
emission vehicle (ZEV)regulations adopted in California. Both automakers
believed their novel two-seater carswould be market successes (GM offered the
EV-1 in a lease program, and Ford offeredThink Mobility vehicles as rentals via the
Hertz car-rental chain). Consumers, however,found electric vehicles’ need for constant
recharging with few recharging locations tooi n c o n v e n i e n t . C r i t i c s c h a r g e d
t h a t t h e a u t o m a k e r s m a d e o n l y t o k e n e f f o r t s t o m a k e electric cars a success,
but a GM spokesperson recently explained, “We spent more than$1 billion to produce and
market the vehicle, [but] fewer than 800 were leased.” Mostdrivers were not
willing to drastically change their driving habits and expectations toaccommodate
electric cars, and the products ultimately were taken off the market.Aside from offering
environmental benefits that do not meet consumer preferences,
green marketing myopia can also occur when green products fail toprovide credible,
substantive environmental benefits
.29

Example – MOBIL’S HEFTY PHOTODEGRADABLE PLASTICTRASH BAGS

Mobil’s Hefty photodegradable plastic trash bag is a case in point. Introduced in1989, Hefty
packages prominently displayed the term “degradable” with the explanationthat a special
ingredient promoted its decomposition into harmless particles in
landfills“ a c t i v a t e d b y e x p o s u r e t o t h e e l e m e n t s ” s u c h a s s u n , w i n d , a n d
rain. Because mostgarbage is buried in landfills that allow limited
e x p o s u r e t o t h e e l e m e n t s , m a k i n g degradation virtually impossible, the claim
enraged environmentalists. Ultimately, sevenstate attorneys general sued Mobil on
charges of deceptive advertising and consumer fraud. Mobil removed the claim from
its packaging and vowed to use extreme caution inmaking environmental claims in the
future.It has been found that the
top reasons consumers do not buy green productsincluded beliefs
that they require sacrificesinconvenience, higher costs and lower performance
without significant environmental benefits. Ironically, despite whatconsumers think, a
plethora of green products available in the marketplace are in factdesirable
 because they deliver convenience, lower operating costs, and/or better performance.
Often these are not marketed along with their green benefits, so consumersd o n o t
immediately recognize them as green and form misperceptions about
their benefits. When consumers are convinced of the desirable “non-
g r e e n ” b e n e f i t s o f environmental products, they are more inclined to adopt them.Other
environmental products have also scored market successes by either servingprofitable niche
markets or offering mainstream appeal.30

Example – TOYOTA PRIUS

Consider the Toyota Prius, the gas-electric hybrid vehicle that achieves about 44miles per
gallon of gasoline. In recent years, Toyota’s production has hardly kept pacewith
the growing demand, with buyers enduring long waits and paying thousands abovethe car’s
sticker price. Consequently, other carmakers have scrambled to launch their ownhybrids.
However, despite higher gas prices, analysts assert that it can take 5 to 20 yearsfor lower gas
expenses to offset many hybrid cars’ higher prices. Thus, economics alonecannot explain
their growing popularity.Analysts offer several reasons for the Prius’ market
demand. Initially, the buzzo v e r t h e P r i u s g o t a b o o s t a t t h e 2 0 0 3
A c a d e m y A w a r d s w h e n c e l e b r i t i e s s u c h a s Cameron Diaz, Harrison
Ford, Susan Sarandon, and Robin Williams abandoned stretchlimousines and
oversized sport utility vehicles, arriving in Priuses to symbolize supportfor reducing
America’s dependence on foreign oil. Since then, the quirky-looking Prius’badge of
“conspicuous conservation” has satisfied many drivers’ desires to turn headsand
make a statement about their social responsibility, among them Google
foundersL a r r y P a g e a n d S e r g e y B r i n , c o l u m n i s t A r i a n n a H u f f i n g t o n ,
c o m i c B i l l M a h e r , a n d Charles, Prince of Wales. The Prius ultimately was named
Motor Trend
’s Car of the Year in 2004. The trendy appeal of the Prius illustrates that some green products
can leverageconsumer desires for being distinctive. Others say the Prius is just fun
to drivethedazzling digital dashboard that offers continuous feedback on fuel
efficiency and other car operations provides an entertaining driving experience.
More recently, however, thePrius has garnered fans for more practical reasons. A 2006
Maritz Poll finds that ownerspurchased hybrids because of the convenience of fewer fill-ups,
better performance, andthe enjoyment of driving the latest technology. In some states, the
Prius and other high-mileage hybrid vehicles, such as Honda’s Insight, are granted
free parking and solo-occupancy access to high occupancy vehicle (HOV) lanes. In sum,
hybrid vehicles offer consumers several desirable benefits that are not necessarily “green”
benefits.31

TOYOTA PRIUS
Many environmental products have become so common and widelydistributed that many
consumers may no longer recognize them as green becausethey buy them for non-green
reasons.
Green household products, for instance, arewidely available at supermarkets and
discount retailers, ranging from energy-saving TideColdwater laundry detergent to non-
toxic Method and Simple Green cleaning products.Use of recycled or biodegradable
paper products (such as plates, towels, napkins, coffeefilters, computer paper,and other
goods) is also widespread. Organic and rainforest-protective “shade grown” coffees
are available at Starbucks and other specialty stores andsupermarkets. Organic baby food
is expected to command 12 percent market share in2 0 0 6 a s p a r e n t s s t r i v e t o
p r o t e c t t h e i r c h i l d r e n ’ s m e n t a l a n d p h y s i c a l d e v e l o p m e n t . Indeed, the
organic food market segment has increased 20 percent annually since 1990,five
times faster than the conventional food market, spurring the growth of
specialtyretailers such as Whole Foods Market and Wild Oats. Wal-Mart, too,
has joined thisextensive distribution of organic products. Indeed, Wal-Mart has recently
declared that inNorth American stores, its non-farm-raised fresh fish will be
certified by the MarineStewardship Council as sustainably harvested.Super energy-
efficient appliances and fixtures are also becoming popular. Chic,front-loading
washing machines, for example, accounted for 25 percent of the market in32

2004, up from 9 percent in 2001. EPA’s Energy Star label, which certifies that
productsconsume up to 30 percent less energy than comparable alternatives, is found on
productsranging from major appliances to light fixtures to entire buildings (minimum
efficiencystandards vary from product to product). The construction industry is
becomingincreasingly green as government and industry demand office buildings
that are “highperformance” (for example, super energy- and resource-efficient and cost
effective) and“healthy” for occupants (for example, well-ventilated; constructed
with materials withl o w o r n o v o l a t i l e o r g a n i c c o m p o u n d s [ V O C ] ) . T h e
U . S . G r e e n B u i l d i n g C o u n c i l ’ s “Leadership in Energy and Environmental
Design” (LEED) provides a rigorous ratingsystem and green building checklist that
are rapidly becoming the standard for environmentally sensitive construction.Home
buyers are recognizing the practical long-term cost savings and comfort of natural lighting,
passive solar heating, and heat-reflective windows, and a 2006 studysponsored by
home improvement retailer Lowe’s found nine out of ten builders surveyedare incorporating
energy-saving features into new homes. Additionally, a proliferation of “green” building
materials to serve the growing demand has emerged. Lowe’s competitor The Home Depot is
testing an ‘EcoOptions’ product line featuring natural fertilizers andmold resistant drywall in
its Canadian stores that may filter into the U.S. market. In short,energy efficiency and green
construction has become main stream.The diversity and availability of green products
indicate that consumers are notindifferent to the value offered by environmental benefits.
Consumers are buying greenbut not necessarily for environmental reasons.
The market growth of organic foodsand energy-efficient appliances is because
consumers desire their perceived safety andmoney savings, respectively.
Thus, the apparent paradox between what consumerssay and their purchases may be
explained, in part, by green marketing myopiaanarrow focus on the greenness of products
that blinds companies from consideringthe broader consumer and societal desires.
A fixation on products’ environmentalm e r i t s h a s r e s u l t e d f r e q u e n t l y i n
i n f e r i o r g r e e n p r o d u c t s ( f o r e x a m p l e , t h e o r i g i n a l EarthLight and GM’s EV-1
electric car) and unsatisfying consumer experiences.33

34

CHAPTER - 3HOW TO DO GREEN MARKETING

THE 3 Cs OF MATKETING GREEN PRODUCTS
The analysis of past research and marketing strategies finds that successful greenproducts
have avoided green marketing myopia by following three important principles:
“The Three Cs” of consumer value positioning, calibration of consumer knowledge,
and
credibility of product claims
.
1. Consumer Value Positioning –
The marketing of successfully established green products showcases non-
greenconsumer value, and there are at least five desirable benefits commonly
associated withgreen products:
1.1.Efficiency and cost effectiveness
;1.2.Health and safety
;1.3.Performance
;1.4.Symbolism and status and
1.5.Convenience
.Additionally, when these five consumer value propositions are not inherent in thegreen
product, successful green marketing programs bundle (that is, add to the
productd e s i g n o r m a r k e t o f f e r i n g ) d e s i r a b l e c o n s u m e r v a l u e t o b r o a d e n
t h e g r e e n p r o d u c t ’ s appeal. In practice, the implication is that product designers and
marketers need to alignenvironmental products’ consumer value (such as money
savings) to relevant consumer market segments (for example, cost conscious
consumers).
1.1 Efficiency and Cost Effectiveness
The common inherent benefit of many green products is their potential energy andr e s o u r c e
efficiency. Given sky-rocketing energy prices and tax incentives for
f u e l - 35

efficient cars and energy saving home improvements and appliances, long-term
savingshave convinced cost-conscious consumers to buy green.Recently, the home
appliance industry made great strides in developing energye f f i c i e n t p r o d u c t s
to achieve EPA’s Energy Star rating. For example, Energy
S t a r refrigerators use at least 15 percent less energy and dishwashers use at least percent
lessenergy than do traditional models. Consequently, an Energy Star product
oftencommands a price premium. Whirlpool’s popular Duet frontloading washer and dryer,
for example, cost more than $2,000, about double the price of conventional units;
however,t h e w a s h e r s c a n s a v e u p t o 1 2 , 0 0 0 g a l l o n s o f w a t e r a n d $ 1 1 0 o n
e l e c t r i c i t y a n n u a l l y compared to standard models (Energy Star does not rate
dryers).Laundry detergents are also touting energy savings. Procter & Gamble’s
(P&G)newest market entry, Tide Coldwater, is designed to clean clothes
effectively in coldwater. About 80 to 85 percent of the energy used to wash
clothes comes from heatingwater. Working with utility companies, P&G found that
consumers could save an averageof $63 per year by using cold rather than warm
water. Adopting Tide Coldwater givesadded confidence to consumers already
washing in cold water. As energy and resourceprices continue to soar,
opportunities for products offering efficiency and savings aredestined for market
growth.
1.2 Health and Safety
Concerns over exposure to toxic chemicals, hormones, or drugs in
e v e r y d a y products have made health and safety important choice considerations, especially
amongvulnerable consumers, such as pregnant women, children, and the elderly. Because
mostenvironmental products are grown or designed to minimize or eliminate the use of
toxicagents and adulterating processes, market positioning on consumer safety and health
canachieve broad appeal among health-conscious consumers. Sales of organic
foods, for example, have grown considerably in the wake of public fear over
“mad cow” disease;antibiotic- laced meats, mercury in fish, and genetically
modified foods. Mainstream36

appeal of organics is not derived from marketers promoting the advantages of free-
rangea n i m a l r a n c h i n g a n d p e s t i c i d e f r e e s o i l . R a t h e r , m a r k e t p o s i t i o n i n g
o f o r g a n i c s a s flavorful, healthy alternatives to factory-farm foods has
convinced consumers to pay apremium for them.A study conducted by the Alliance
for Environmental Innovation and householdp r o d u c t s - m a k e r S . C . J o h n s o n
f o u n d t h a t c o n s u m e r s a r e m o s t l i k e l y t o a c t o n g r e e n messages that
strongly connect to their personal environments. Specifically, findingssuggest
that the majority of consumers prefer such environmental household
productbenefits as “safe to use around children,” “no toxic ingredients,” “no chemical
residues,”and “no strong fumes” over such benefits as “packaging can be
recycled” or “not testedon animals.”
Seventh Generation, a brand of non-toxic and environmentally- safehousehold products,
derived its name from the Iroquois belief that, “In our everyd e l i b e r a t i o n , w e m u s t
c o n s i d e r t h e i m p a c t o f o u r d e c i s i o n s o n t h e n e x t s e v e n generations.”
Accordingly, its products promote the family-oriented value of making theworld a safer place
for the next seven generations.I n d o o r a i r q u a l i t y i s a l s o a g r o w i n g
c o n c e r n . F u m e s f r o m p a i n t s , c a r p e t s , furniture, and other décor in
poorly ventilated “sick buildings” have been linked toheadaches, eye,
nose, and throat irritation, dizziness, and fatigue among
o c c u p a n t s . Consequently, many manufacturers have launched green products to
reduce indoor air pollution. Sherwin Williams, for example, offers “Harmony,” a line of
interior paints thatis low-odor, zero- VOC, and silica-free. Aside from energy efficiency,
health and safetyhave been key motivators driving the green building movement.
1.3 Performance
The
conventional wisdom is that green products don’t work as well as “non-green” ones
. This is a legacy from the first generation of environmentally
sensitiveproducts that clearly were inferior. Consumer perception of
g r e e n c l e a n i n g a g e n t s introduced in health food stores in the 1960s and 1970s, for
example, was that “they cost37

twice as much to remove half the grime.” Today, however, many green
p r o d u c t s a r e designed to perform
better
than conventional ones and can command a price premium.For example, in addition
to energy efficiency, front-loading washers clean better and aregentler on clothes
compared to conventional top-loading machines because they spinclothes in a
motion similar to clothes driers and use centrifugal force to pull dirt andwater
away from clothes. By contrast, most top-loading washers use agitators to
pullc l o t h e s t h r o u g h t a n k s o f w a t e r , r e d u c i n g c l e a n i n g a n d i n c r e a s i n g
wear on clothes.Consequently, the efficiency and high performance
b e n e f i t s o f t o p - l o a d i n g w a s h e r s justify their premium prices.Homeowners
commonly build decks with cedar, redwood, or pressure-treatedpine (which
historically was treated with toxic agents such as arsenic). Wood requiress t a i n
or paint and periodic applications of chemical preservatives for
m a i n t e n a n c e . Increasingly, however, composite deck material made from recycled milk
jugs and woodf i b e r , s u c h a s W e y e r h a e u s e r ’ s C h o i c e D e k , i s m a r k e t e d a s t h e
smarter alternative.Composites are attractive, durable, and low
m a i n t e n a n c e . T h e y d o n o t c o n t a i n t o x i c chemicals and never need staining or
chemical preservatives. Accordingly, theycommand a price premium  as much as two to
three times the cost of pressure-treatedpine and 15 percent more than cedar or redwood.
In sum, “high performance” positioning can broaden green product appeal.1.4 Symbolism and Status
As mentioned earlier, the Prius, Toyota’s gas-electric hybrid, has come
t o epitomize “green chic.” According to many automobile analysts, the cool-kid cachet
thatcomes with being an early adopter of the quirky-looking hybrid vehicle trend continues
topartly motivate sales. Establishing a green chic appeal, however, isn’t easy. According
topopular culture experts,
green marketing must appear grass-roots driven andhumorous without sounding preachy. To
appeal to young people, conservation andgreen consumption need the unsolicited
endorsement of high-profile celebrities and
38

connection to cool technology.

Prius has capitalized on its evangelical following andhigh-tech image with some
satirical ads, including a television commercial comparing thehybrid with Neil
Armstrong’s moon landing (“That’s one small step on the accelerator,one giant
leap for mankind”) and product placements in popular Hollywood films
andsitcoms (such as
Curb Your Enthusiasm
). More automobile analysts, the cool-kid cachett h a t c o m e s w i t h b e i n g a n e a r l y
a d o p t e r o f t h e q u i r k y - l o o k i n g h y b r i d v e h i c l e t r e n d continues to partly motivate
sales.
THE GREEN CHIC SYMBOL
In business, where office furniture symbolizes the cachet of corporate image andstatus, the
ergonomically designed “Think” chair is marketed as the chair “with a brainand a
conscience.” Produced by Steelcase, the world’s largest office furnituremanufacturer,
the Think chair embodies the latest in “cradle to cradle” (C2C) design andm a n u f a c t u r i n g .
C 2 C , w h i c h d e s c r i b e s p r o d u c t s t h a t c a n b e u l t i m a t e l y r e t u r n e d t o technical
or biological nutrients, encourages industrial designers to create products free of h a r m f u l
agents and processes that can be recycled easily into new products
( s u c h a s metals and plastics) or safely returned to the earth (such as plant-based materials).
Madewithout any known carcinogens, the Think chair is 99 percent recyclable; it
disassembleswith basic hand tools in about five minutes, and parts are stamped
with icons showingrecycling options. Leveraging its award-winning design and
sleek comfort, the Think chair is positioned as symbolizing the smart, socially
responsible office.
In sum, greenproducts can be positioned as status symbols.
39

1.5 Convenience
Many energy-efficient products offer inherent convenience benefits that can
beshowcased for competitive advantage. CFL bulbs, for example, need
infrequentreplacement and gas-electric hybrid cars require fewer refueling stopsbenefits
that arehighlighted in their marketing communications. Another efficient alternative
toincandescent bulbs are light emitting diodes (LEDs): They are even more
efficient andlonger-lasting than CFL bulbs; emit a clearer, brighter light; and are virtually
unbreakablee v e n i n c o l d a n d h o t w e a t h e r . L E D s a r e u s e d i n t r a f f i c
l i g h t s d u e t o t h e i r h i g h - performance convenience.To encourage hybrid
vehicle adoption, some states and cities are granting their d r i v e r s t h e
convenience of free parking and solo-occupant access to HOV lanes.
A Toyota spokesperson recently told the
Los Angeles Times
, “Many customers are telling ust h e c a r p o o l l a n e i s t h e m a i n r e a s o n f o r b u y i n g
n o w . ” T o y o t a h i g h l i g h t s t h e c a r p o o l benefit on its Prius Web site, and convenience
has become an incentive to drive efficienthybrid cars in traffic- congested states like
California and Virginia. Critics have charged,however, that such incentives clog
carpool lanes and reinforce a “one car, one person”lifestyle over alternative
transportation. In response, the Virginia legislature has morerecently enacted curbs
on hybrid drivers use of HOV lanes during peak hours, requiringthree or more people per
vehicle, except for those that have been grandfathered in.Solar power was once used
only for supplying electricity in remote areas (for example, while camping in the
wilderness or boating or in homes situated off the power grid). That convenience, however,
is being exploited for other applications. Inl a n d s c a p i n g , f o r e x a m p l e , s e l f -
c o n t a i n e d s o l a r - p o w e r e d o u t d o o r e v e n i n g l i g h t s t h a t recharge automatically
during the day eliminate the need for electrical hookups and offer flexibility for
reconfiguration. With society’s increasing mobility and reliance onelectronics, solar
power’s convenience is also manifest in solar-powered calculators,wrist watches,
and other gadgets, eliminating worries over dying batteries.40

1.6 BundlingSome green products do not offer any of the inherent five consumer desiredbenefits
noted above.
This was the case when energy-efficient and CFC-freerefrigerators were introduced in
China in the 1990s. While Chinese consumers preferreda n d w e r e w i l l i n g t o p a y
a b o u t 1 5 p e r c e n t m o r e f o r r e f r i g e r a t o r s t h a t w e r e “ e n e r g y efficient,” they
did not connect the environmental advantage of “CFC-free” with either energy
efficiency or savings. Consequently, the “CFC-free” feature had little impact onp u r c h a s e
decisions. To encourage demand, the CFC-free feature was bundled
w i t h attributes desired by Chinese consumers, which included energy efficiency,
savings,brand/quality, and outstanding after-sales service. Given consumer demand
for convenience, incorporating time-saving or ease-of- use features into green
products canfurther expand their mainstream acceptance. Ford’s hybrid Escape
SUV comes with anoptional 110-volt AC power outlet suitable for work, tailgating, or
camping. Convenienceh a s a l s o e n h a n c e d t h e a p p e a l o f I n t e r f a c e ’ s
r e c y c l a b l e F L O R c a r p e t i n g , w h i c h i s marketed as “practical, goof-proof, and
versatile.” FLOR comes in modular square tileswith four peel-and-stick dots on the
back for easy installation (and pull up for altering,recycling, or washing with
water in the sink). Modularity offers versatility to assembletiles for a custom
look. Interface promotes the idea that its carpet tiles can be changedand
reconfigured in minutes to dress up a room for any occasion. The tiles come in pizza-style
boxes for storage, and ease of use is FLOR’s primary consumer appeal.Austin (Texas)
Energy’s “Green Choice” program has led the US in renewableenergy sales for
the past three years. In 2006, demand for wind energy outpaced supplyso that the
utility resorted to selecting new “Green Choice” subscribers by lottery. Whilem o s t
utilities find it challenging to sell green electricity at a premium price
o n i t s environmental merit,
Austin Energy’s success comes from bundling three benefitsthat appeal to commercial power
users:

First
, Green Choice customers are recognizedi n b r o a d c a s t m e d i a f o r t h e i r c o r p o r a t e
responsibility;
second
, t h e g r e e n p o w e r i s marketed as “home grown,” appealing to Texan loyalties; and
third
, the program offers afixed price that is locked in for 10 years. Because wind power’s cost is
derived primarily41

from the construction of wind farms and is not subject to volatile fossil fuel costs,
AustinE n e r g y p a s s e s i t s i n h e r e n t p r i c e s t a b i l i t y o n t o i t s G r e e n C h o i c e
c u s t o m e r s . T h u s , companies participating in Green Choice enjoy the
predictability of their future energycosts in an otherwise volatile energy market.The
analysis suggests that successful green marketing programs have broadenedthe consumer
appeal of green products by convincing consumers of their “non-green”consumer
value. The
lesson for crafting effective green marketing strategies is thatplanners need to identify the
inherent consumer value of green product attributes
(for example, energy efficiency’s inherent long-term money savings)
or bundle desiredconsumer value into green products
(such as fixed pricing of wind power)
and todraw marketing attention to this consumer value.
2. Calibration of Consumer Knowledge
Many of the successful green products in the analysis described here
employcompelling, educational marketing messages and slogans that connect green productattributes with
desired consumer value.
That is, the marketing programs successfullycalibrated consumer knowledge to
recognize the green product’s consumer benefits. Inmany instances, the
environmental benefit was positioned as secondary, if mentioned ata l l . C h a n g e s
made in EPA’s Energy Star logo provide an example, illustrating
theprogram’s improved message calibration over the years. One of
E n e r g y S t a r ’ s e a r l y marketing messages, “EPA Pollution Preventer,” was not only
ambiguous but myopicallyfocused on pollution rather than a more mainstream consumer
benefit. A later promotional message, “Saving The Earth. Saving Your Money.” better
associated energyefficiency with consumer value, and one of its more recent
slogans, “Money Isn’t AllYou’re Saving,” touts economic savings as the chief
benefit. This newest slogan alsoencourages consumers to think implicitly about what
else they are “saving”the logo’sillustration of the Earth suggests the answer, educating
consumers that “saving the Earth”can also meet consumer self-interest.42

The connection between environmental benefit and consumer value is evident

inEarthbound Farm Organic’s slogan, “Delicious produce is our business, but health is
our bottom line,” which communicates that pesticide-free produce is flavorful and
healthy.Likewise, Tide Coldwater’s “Deep Clean. Save Green.” slogan not only
assuresconsumers of the detergent’s cleaning performance, but the term “green” offers a
doublemeaning, connecting Tide’s cost saving with its environmental benefit.
Citizen’s solar-powered Eco-Drive watch’s slogan, “Unstoppable Caliber,” communicates
the product’sconvenience and performance (that is, the battery will not die) as well as
prestige.Some compelling marketing communications educate consumers to
recognizeg r e e n p r o d u c t s a s “ s o l u t i o n s ” f o r t h e i r p e r s o n a l n e e d s
and
the environment. Whenintroducing its Renewal brand, Rayovac positioned the
reusable alkaline batteries as asolution for heavy battery users and the environment with
concurrent ads touting “How tosave $150 on a CD player that costs $100” and “How to save
147 batteries from going tol a n d f i l l s . ” C o m p l e m e n t i n g t h e m o n e y s a v i n g s a n d
l a n d f i l l a n g l e s , a n o t h e r a d i n t h e campaign featured sports star Michael
Jordan proclaiming, “More Power. More Music.And More Game Time.” to
connect Renewal batteries’ performance to convenience. Inpractice, the analysis
conducted here suggests that advertising that draws attention to howt h e e n v i r o n m e n t a l
p r o d u c t b e n e f i t c a n d e l i v e r d e s i r e d p e r s o n a l v a l u e c a n b r o a d e n consumer
acceptance of green products.
3. Credibility of Product Claims
Credibility is the foundation of effective green marketing. Green productsmust meet or
exceed consumer expectations by delivering their promised consumervalue and providing
substantive environmental benefits.
Often, consumers don’t havethe expertise or ability to verify green products’
environmental and consumer values,creating misperceptions and skepticism. As
exemplified in the case of Mobil’s Heftyphotodegradable plastic trash bag described
earlier, green marketing that touts a product’sor a company’s environmental credentials
can spark the scrutiny of advocacy groups or 43

regulators. For example, although it was approved by the U.S. Food and
DrugAdministration, sugar substitute Splenda’s “Made from sugar, so it tastes
like sugar”slogan and claim of being “natural” have been challenged by the
Sugar Association andG e n e r a t i o n G r e e n , a h e a l t h a d v o c a c y g r o u p , a s
m i s l e a d i n g g i v e n t h a t i t s p r o c e s s i n g results in a product that is “unrecognizable as
sugar.”W e c a n d e r i v e f r o m p a s t r e s e a r c h t h a t g r e e n c l a i m s s h o u l d b e
s p e c i f i c a n d meaningful. Toyota recognizes the ambiguity of the term “green” and
discourages its usei n i t s m a r k e t i n g o f i t s g a s - e l e c t r i c h y b r i d c a r s . O n e
p r o p o s e d s l o g a n , “ D r i v e g r e e n , breathe blue” was dismissed in favor of
specific claims about fuel efficiency, such as“Less gas in. Less gasses out.” Further,
environmental claims must be humble and notover-promise.
When Ford Motor Company publicized in
National Geographic
and other magazines its new eco-designed Rouge River Plant that incorporated the world’s
largestliving roof of plants, critics questioned the authenticity of Ford’s
environmentalcommitment given the poor fuel economy of the automaker’s best-
selling SUVs. Eventhe Prius has garnered some criticism for achieving considerably
less mileage(approximately 26 percent less according to
Consumer Reports
) than its governments t i c k e r r a t i n g c l a i m s , a l t h o u g h t h e a c t u a l
r e d u c e d m i l e a g e d o e s n o t a p p e a r t o b e hampering sales. Nonetheless, green
product attributes need to be communicated honestlyand qualified for believability (in
other words, consumer benefits and environmentaleffectiveness claims need to be
compared with comparable alternatives or likely usagescenarios). For example,
Toyota includes an “actual mileage may vary” disclaimer inPrius advertising.
When Ford’s hybrid Escape SUV owners complained that they weren o t
achieving expected mileage ratings, Ford launched the “Fuel-Economy
S c h o o l ” campaign to educate drivers about ways to maximize fuel efficiency.
Further, EPA isreconsidering how it estimates hybrid mileage ratings to better
reflect realistic drivingconditions (such as heavy acceleration and air conditioner
usage).44

3.1. Third Party Endorsements and Eco-Certifications

Expert third parties with respected standards for environmental testing (such
asindependent laboratories, government agencies, private consultants, or
nonprofita d v o c a c y o r g a n i z a t i o n s ) c a n p r o v i d e g r e e n p r o d u c t
e n d o r s e m e n t s a n d / o r “ s e a l s o f approval” to help clarify and bolster the
believability of product claims. The “EnergyStar” label, discussed earlier, is a
common certification that distinguishes certainelectronic products as consuming
up to 30 percent less energy than comparablea l t e r n a t i v e s . T h e U . S .
D e p a r t m e n t o f A g r i c u l t u r e ’ s “ U S D A O r g a n i c ” c e r t i f i e s t h e production and
handling of organic produce and dairy products.
SOME ECO-LABELS AND CERTIFICATIONS
Green Seal and Scientific Certification Systems emblems certify a broad spectrumof green
products. Green Seal sets specific criteria for various categories of
products,ranging from paints to cleaning agents to hotel properties, and for a fee,
companies canhave their products evaluated and monitored annually for
certification. Green Seal has45

certified the Hyatt Regency in Washington, DC, for the hotel’s comprehensive
energyand water conservation, recycling programs, and environmental practices.
By contrast,Scientific Certification Systems (SCS) certifies specific product
claims or provides adetailed “eco-profile” for a product’s environmental impact for
display on product labelsfor a broad array of products, from agricultural products to fisheries
to construction.Although eco-certifications differentiate products and aid in
consumer decisionm a k i n g , t h e y a r e n o t w i t h o u t c o n t r o v e r s y . T h e s c i e n c e
b e h i n d e c o - s e a l s c a n a p p e a r subjective and/or complex, and critics may take
issue with certification criteria. For example, GreenOrder, a New York-based
environmental consulting firm, has devised ascorecard to evaluate clean-tech
products marketed in General Electric’s“Ecomagination” initiative, which
range from fuel-efficient aircraft engines to windturbines to water treatment
technologies. Only those passing GreenOrder’s criteria arem a r k e t e d a s
Ecomagination products, but critics have questioned GE’s inclusion
o f “cleaner coal” (that is, coal gasification for cleaner burning and sequestration
of carbondioxide emissions) as an “Ecomagination” product.Consequently, when seeking
endorsements and eco-certifications, marketersshould consider the environmental
tradeoffs and complexity of their products and thethird parties behind endorsements
and/or certifications: Is the third party respected? Areits certification methodologies
accepted by leading environmentalists, industry experts,g o v e r n m e n t
regulators, and other key stakeholders? Marketers should educate
their customers about the meaning behind an endorsement or an eco-
seal’s criteria. GEr e c o g n i z e s t h a t i t s c l e a n e r c o a l t e c h n o l o g y i s
c o n t r o v e r s i a l b u t h o p e s t h a t r o b u s t marketing and educational outreach will
convince society about cleaner coal’se n v i r o n m e n t a l b e n e f i t s . O n i t s W e b s i t e ,
G E r e f e r e n c e s U . S . E n e r g y I n f o r m a t i o n Administration’s statistics that coal
accounts for about 24 percent of the world’s totalenergy consumption, arguing
that coal will continue to be a dominant source of energydue to its abundance and
the increasing electrification of populous nations such as Chinaand India.46

3.2. Word-of-Mouth Evangelism and the Internet

Increasingly, consumers have grown skeptical of commercial messages,
a n d they’re turning to the collective wisdom and experience of their friends and
peers aboutp r o d u c t s . W o r d - o f - m o u t h o r “ b u z z ” i s p e r c e i v e d t o b e v e r y
c r e d i b l e , e s p e c i a l l y a s consumers consider and try to comprehend complex
product innovations. The Internet,t h r o u g h e - m a i l a n d i t s v a s t , a c c e s s i b l e
r e p o s i t o r y o f i n f o r m a t i o n , W e b s i t e s , s e a r c h engines, blogs, product ratings
sites, podcasts, and other digital platforms, has openedsignificant opportunities
for tapping consumers’ social and communication networks todiffuse credible
“word-of-mouth” (buzz facilitated by the Internet) about green products.I n 2 0 0 5 , P r o c t o r
& G a m b l e p a r t n e r e d w i t h t h e n o n - p r o f i t o r g a n i z a t i o n , t h e Alliance to Save
Energy (ASE), in a “viral marketing” campaign to spread news aboutthe money-
saving benefits of laundering clothes in cold water with specially formulatedTide
Coldwater. ASE provided credibility for the detergent by auditing and
backingP&G’s claims that consumers could save an average of $63 a year if they switched
fromwarm to cold water washes. ASE sent e-mail promotions encouraging consumers to
visitTide.com, an interactive Web site and take the “Coldwater Challenge” by
registering toreceive a free sample. Visitors could calculate how much money
they would save byusing the detergent, learn other energy-saving laundry tips, and refer
email addresses of t h e i r f r i e n d s t o t a k e t h e c h a l l e n g e a s w e l l . T i d e . c o m
o f f e r e d a n e n g a g i n g m a p o f t h e United States where, over time, visitors could
track and watch their personal networksgrow across the country when their friends
logged onto the site to request a free sample.Given the immediacy of e-mail and the Internet,
word-of-mouth is fast becomingan important vehicle for spreading credible news
about new products. According to thePew Internet & American Life Project, 44 percent
of online U.S. adults (about 50 millionAmericans) are “content creators,” meaning that they
contribute to the Internet via blogs,product recommendations, and reviews. To
facilitate buzz, however, marketers need toc r e a t e c r e d i b l e m e s s a g e s ,
s t o r i e s , a n d W e b s i t e s a b o u t t h e i r p r o d u c t s t h a t a r e s o compelling,
interesting, and/or entertaining that consumers will seek the information out47

and forward it to their friends and family. The fact that P&G was able to achieve this for a
low-involvement product is quite remarkable.International online marketing consultant
Hitwise reported that ASE’s e-mailcampaign increased traffic at the Tide
Coldwater Web site by 900 percent in the firstw e e k , a n d t h e n t r i p l e d t h a t
l e v e l i n w e e k t w o . W i t h i n a f e w m o n t h s , m o r e t h a n o n e million Americans
accepted the “Coldwater Challenge,” and word-of-mouth cascadedthrough ten
degrees of separation across all 50 states and more than 33,000 zip codes. InOctober 2005,
Hitwise reported that Tide.com ranked as the twelfth most popular site bymarket share of
visits in the “LifestyleHouse and Garden” category. No other laundrydetergent brand’s Web
site has gained a significant Web presence in terms of the number of visits.
P&G’s savvy implementation of “The Three Cs”consumer valuepositioning on money
savings, calibration of consumer knowledge about cold washeffectiveness via an engaging Web
site, and credible product messages dispatched bya respected non-profit group and consumers’
Internet networksset the stage forTide Coldwater’s successful launch.
48

INTERVIEWS
The research conducted for this report was done purely with the help of
i n t e r v i e w s conducted with top officials of five companies. Every company has its
ownenvironmental strategy and thus the efforts made by each company can not be
measuredon a common scale. Thus the research is totally based on the interviews conducted
whichhave been mentioned below. These officials helped me with the research by
discussingtheir environmental policies and the strategies related to them as to
how they reach outwith these strategies to their consumers. This often creates
goodwill among theconsumers about the products from these companies. The
excerpts from the interviewshave been given below. The companies and the officials who
helped in this research werea l l f r o m d i f f e r e n t f i e l d s r a n g i n g f r o m I n f o r m a t i o n
T e c h n o l o g y t o T e l e c o m m a n d Manufacturing to FMCG. The list of the companies
and officials is given below:
•
Suzuki Motorcycles – Mr. Abhishek Sinha, Manager - Human Resource.
•
Bharti Airtel – Mr. Gaurav Tyagi, Manager – Marketing.
•
IBM India – Mr. Shantanu Varma, Country Manager.
•
PepsiCo India – Ms. Anupama Priyadarshini – General Manager.
•
Kapoor Light Life Style – Mr. P. Rajasekhar – Vice PresidentThe interviews focused
mainly on one thing i.e. how the consumer has become awarea b o u t t h e v a r i o u s
hazards in the environment. The consumer today cares about
t h e environment and likes to go for environment healthy products. Also the companies
haveto focus on a greener environment within their infrastructure for the well
being of their own employees.T h e i n t e r v i e w s w e r e t h e n a n a l y z e d a n d o n t h e
b a s i s o f t h i s a n a l y s i s t h i s r e p o r t w a s structured. The excerpts from these
interviews are given below.50

Mr. Abhishek Sinha, Manager (HR), Suzuki Motorcycles:

On plant area and production capacity:
“SMIPL manufacturing plant installed in Gurgaon (Haryana) having the annual
plantc a p a c i t y o f 1 , 7 5 , 0 0 0 u n i t s . W e h a v e g o t t o t a l l a n d a r e a o f 3 7 a c r e s
a n d o u t o f w h i c h presently our plant is constructed in 6.5 acres of land and
remaining area is left for theland development and future expansion.”
On the priority given to the cleanliness of the environment at Suzuki Motorcycles:
“At Suzuki, the philosophy of keeping “environment first” is properly
p e r c o l a t e d downwards. To comply with all applicable legislations and setting
standards thereof r e m a i n s o n l y a b e g i n n i n g . W e t h r i v e t o d i s c o v e r a n d
i n v e n t m e c h a n i s m s f o r b e t t e r environment management systems and it’s a
continuous process which is managed by aseparate wing of experts and specialist in the
field.”
On any new environmental measures adopted by Suzuki:
“The biggest testimony of Suzuki’s commitments towards “environment first” is seen inthe
new plant of Suzuki two wheelers at Gurgaon which is built to be a Zero
dischargeplant.”
On the Lighting and material used by Suzuki:
51

“We have embraced Natural light optimization system and water harvesting
systemsbesides several other measures to create better and cleaner environment
around us. Allpackaging material used by Suzuki is re-cycleable. A constant flow of
internalc o m m u n i c a t i o n o n e n v i r o n m e n t r e l a t e d i s s u e s n o t o n l y c r e a t e s
a w a r e n e s s a m o n g s t employees but also helps in inculcating ‘an environment friendly’
value system.”
On environmental measures taken for the benefit of the employees:
“To take care of the health of all our employees, we maintain all international parametersand
standards for drinking water, treated water, ambient air shop floor, office and
theoutside. We keep updating all these standards of health and welfare of employees
througha team of well qualified personnel in the R & D laboratory.”52

Mr. Shantanu Varma, Country Manager, IBM India:

On Challenges, products and softwares developed by IBM for
a d d r e s s i n g t h e environmental issues:
Around the world, there is an increasing awareness that human activity may
threatendelicate ecological systems. From evidence of global warming to
concerns about water a n d s o i l t o x i c i t y , i n d i v i d u a l s a n d g r o u p s a r e a s k i n g
w h a t t h e y c a n d o t o r e d u c e t h e i r environmental impact. We at IBM provide
solutions for different organizations facingecological problems. The challenges have
become clear: the need for clean water and air;affordable and reliable delivery of energy; the
dwindling supply of fossil fuels; the realityof climate disruption and its implications for
future generations.
On the approach adopted by IBM towards a cleaner and greener environment:
At IBM, our approach is twofold: we are working to make our existing products
andprocesses more efficient for both the environment and for business, while also
developingnew innovations that can accelerate the adoption of products and services that
have lesser environmental impact.
On any particular agenda or priority list followed by IBM towards
addressingenvironmental issues:
53

Today's energy- and climate-related issues are at the top of our strategic agenda.
Werecognise that information technology plays an extremely important role in helping
solvethe myriad of ecological challenges faced by the global societysuch as conserving
our scarce resources even as global demand skyrockets, reducing pollution,
minimizing thee n v i r o n m e n t a l i m p a c t o f o u r a c t i v i t i e s , a n d e n a b l i n g s a f e
a n d r e n e w a b l e a l t e r n a t i v e sources of energy.
On any new ecological services that IBM offers:
We have focused a lot on water related issues becauseIBM’s Institute for Business
Valueconducted a survey of more than 100 public and private sector executives.
About 77percent of respondents said they consider water management “extremely
important” totheir organizations, and 71 percent expect, over the next five years,
for water to createmore business cost and complexity. Thus we came up with
some services that wouldaddress the problems related to water.
•
Natural Water Resources
- Provides sensor data integration, analysis andvisualization to enable the
measurement, modeling and management of water levels, usage and quality in natural
water resources.
•
Water Utilities
- Enables water providers to make rapid decisions regardingbusiness processes and
operational efficiency to maximize their return oninvestments as well as foresee and
quickly respond to contamination issues andemergencies.
•
Water Infrastructure
- Provides sensing systems for managing water infrastructure, such as levee
oversight management and flood control.
•
Water Metering
- Improves management of water supply and demand byi n t e g r a t i n g d a t a
b e t w e e n t h e d o z e n s o f s t a k e h o l d e r s i n v o l v e d . P r o v i d e s a l l stakeholders with
consistent, real-time information to help them work together tomake critical decisions about
water supply in a geographic region.
•
Green Sigma for Water
- A business consulting service that identifies wherewater is being used, measures and
monitors usage, and creates process54

improvements to reduce water use. IBM pilots have achieved reductions in water usage of 30
percent.
On initiatives taken by IBM for a greener environment:
As part of IBM's Big Green 2.0 initiative, we are continually looking at ways to
assistbusiness in running their IT operations with greater efficiency and
sustainability. Theproject Big Green tackles the problem of the Global Energy
Crisis. Here we address theproblem of energy conservation with the efficient use of IT.
We have developed variouss o f t w a r e s o l u t i o n s w h i c h h e l p t h e o r g a n i z a t i o n s i n
r u n n i n g t h e i r s y s t e m s b y u s i n g minimal energy resources.
55

Ms. Anupama Priyadarshini, General Manager, PepsiCo, India:

On policies adopted by PepsiCo:
PepsiCo India is striding ahead rapidly towards enabling the global
v i s i o n t o b e t h e world's premier consumer products company focused on
convenience foods andbeverages. PepsiCo India seeks to produce healthy financial
rewards for investors as itprovide opportunities for growth and enrichment to its
employees, business partners andthe communities in which it operates.
On Step taken towards replenishing water as they are more into beverages:
PepsiCo is committed to minimising the impact of its business on the
environment andrecognises that corporations can play a key role in using scarce
resources such as water with care and responsibility.While agriculture utilises the
bulk of fresh water in India (83%), industry uses 6% of which the beverage industry
uses but a mere 0.04%. But every drop counts, and PepsiCoIndia's primary focus in its
beverage and snacks plants has been on conserving water ateach stage of the
manufacturing process.I n 2 0 0 3 , P e p s i C o I n d i a e m b a r k e d o n i t s q u e s t t o
achieve
positive water balance by2009
.
That means PepsiCo India will conserve, recharge, and thus replenish more water in its plants
and in its communities, than the total water it uses to manufacture beverageproducts.56

PEPSICO’S WATER BALANCE

On initiatives taken by PepsiCo for waste management:
PepsiCo India continues to strengthen its Solid Waste Management initiatives
inpartnership with Exnora, an environmental NGO. This award winning, income
generatingpartnership currently impacts more than 1,00,000 people in Tamil Nadu, Andhra
Pradeshand Haryana will reach out to more than 2,00,000 people in 2008.Despite the creation
of a detailed policy on Solid Waste Management and Handling rulesin 2000, very few
municipalities in the country were able to completely comply withthese rules.
PepsiCo India and EXNORA effectively implemented a model project
inP a m m a l d i s t r i c t i n T a m i l N a d u t h a t a d h e r e d t o t h e G o v e r n m e n t
p o l i c y o n w a s t e management. The project created a visible difference in the
local environment of theregion.PepsiCo India’s foods division, Frito Lay, also generates
biofuels from waste in its plantsthus reducing methane emission and 875 MT of CO2
emission annually, in addition toa c h i e v i n g 1 4 % r e d u c t i o n i n e n e r g y u s e .
N e w c a p a c i t y e x p a n s i o n i n p l a n t s h a s b e e n designed to impact further reductions
in water, power and fuel.
On PepsiCo’s partnership with farmers:
PepsiCo's involvement in Indian agriculture stems from its vision of creating a
cost-e f f e c t i v e , l o c a l i s e d a g r i - b a s e i n I n d i a b y l e v e r a g i n g f a r m e r s ’
a c c e s s t o w o r l d c l a s s 57

agricultural practices. PepsiCo India worked with farmers and State Governments

toimprove agri sustainability, crop diversification and raise farmer incomes.

PepsiCohelped transform the lives of thousands of farmers by helping them refine their
farmingtechniques and raise farm productivity, and customized solutions to
suit specificgeographies and locations.The most ambitious project is a joint
programme, launched in 1989, between PepsiCoIndia, the Punjab Agriculture
University (PAU) in Ludhiana and Punjab Agro IndustriesCorporation (PAIC) in
Chandigarh. The programme focuses on evolving agriculturalpractices to help
Punjab farmers produce internationally competitive products. Over thelast five years,
PepsiCo has also collaborated with the Thapar Institute of Technology todevelop a high
quality potato seed programme.
On partnership with TERI(The Energy and Resources Institute):
TERI was established in 1974 with the purpose of tackling and dealing with the immenseand
acute problems that mankind is likely to be faced with in the years ahead on accountof the
gradual depletion of the earth’s finite energy resources which are largely non-
renewable and on account of the existing methods of their use which are
polluting.Over the years the Institute has developed a wider interpretation of this
core purpose and itsa p p l i c a t i o n a n d h a s c r e a t e d a n e n v i r o n m e n t t h a t i s
e n a b l i n g f o r t h e d e v e l o p m e n t o f solutions to global problems in the fields of
energy, environment and current patterns of development, which are largely unsustainable.
The Institute has grown substantially over the years, particularly, since it launched its own
research activities and established a basein New Delhi, its registered headquarters. The
central element of TERI’s philosophy hasb e e n i t s r e l i a n c e o n e n t r e p r e n e u r i a l
s k i l l s t o c r e a t e b e n e f i t s f o r s o c i e t y t h r o u g h t h e development and dissemination
of intellectual property. The strength of the Institute liesin not only identifying and
articulating intellectual challenges straddling a number of d i s c i p l i n e s o f
knowledge but also in mounting research, training and
d e m o n s t r a t i o n projects leading to development of specific problem-based
advanced technologies that58

help carry benefits to society at large. This association helps us in

a d d r e s s i n g t h e conservation of energy issue.
Mr. Gaurav Tyagi, Manager (Marketing), Bharti Airtel:
On Airtel’s infrastructure and expansion:
The company is a part of Bharti Enterprises, and is India's leading provider
of telecommunications services. The businesses at Bharti Airtel have been
structured intot h r e e i n d i v i d u a l s t r a t e g i c b u s i n e s s u n i t s ( S B U ’ s ) - m o b i l e
s e r v i c e s , b r o a d b a n d & telephone services (B&T) & enterprise services. The
mobile services group providesGSM mobile services across India in 23 telecom
circles, while the B&T business groupprovides broadband & telephone services in 90
cities. The Enterprise services group hastwo sub-units - carriers (long distance
services) and services to corporates. All theseservices are provided under the Airtel
brand.
On initiatives taken towards building a better and greener environment:
We generate e-bills which support the cause “Save Paper”. If a customer doesn’t
mindnot receiving bills on paper we send him E-bills on his mail. We try and address as
manycustomers as possible and try and make them understand that it would be
better if theyreceived e-bills as it would reach them quicker and more importantly save
paper and helpthe environment. Up till now we have had a great response from the
consumers whichshow how environment conscious they are.
On any more initiatives taken up by Airtel:
We are a telecom company and so we do not have a lot of initiatives as we don’t
needthem but the Bharti Group has a 50:50 Joint Venture with DE Rothscheld. In addition
to59

being the world’s second largest producer of fresh fruits & vegetables,
India is alsoamongst the lowest cost producer of farm products. To
c a p i t a l i z e o n s u c h i n h e r e n t advantages, FieldFresh Foods plans to employ the world’s
best practices and technologyto work towards converting India into a preferred
“World Food Basket”.
As part of itscommitment to the green field project, the company plans to set up
a world-class “
AgriResearch Center
” and a “Model Farm” in Punjab in the first phase. The state of the artagri
research center will primarily carry out research on hybrid seeds and agro
farmingtechniques. The research center will work towards the identification and
adoption of conventional and emerging technologies and promote their “On
Field” usage to further enhance agricultural productivity in an environmentally
sustainable manner.60

Mr. P. Rajasekhar, Vice President, Kapoor Light Life Style:

On plant area and production capacity:
“We don’t have a manufacturing unit. All our products are imported and then assembledin
our assembling unit. The products that we make are outsourced in various parts
tod i f f e r e n t v e n d o r s w h o a f t e r m a k i n g t h o s e p a r t s s e n d t h e m b a c k t o u s .
A f t e r t h i s o u r assembling unit takes over and assembles the product as a whole.” We
have a work forceof 70 people in our assembling unit in Okhla, New Delhi.”
On the priority given to the cleanliness of the environment at Kapoor Light
LifeStyle:
“We use dies and colours which are non toxic. Also the materials used are all recyclable.We
also have proper waste disposal facility in our assembly unit and we take it as
our endeavour to keep the environment clean and green.”
On the materials used by Kapoor Light Life Style:
“We are the oldest and most trusted lighting company in India. We understand
that our customer expects us to use the best material and at the same time he is well
educated andt h u s u n d e r s t a n d s t h e n e e d o f a c l e a n e n v i r o n m e n t . W e t h u s
u s e r e c y c l a b l e a n d b i o degradable materials only in our products. Our product
mainly consist of fabric, metal,non toxic dies and glass. We DO NOT use plastic
in our products. The crystals that weuse are electro statically charged and thus do not
allow dust to settle on them.”
On the packing material used:
61

“We make it a point to use recyclable packing material for our products. These materialsdo
not harm the environment in any way and are completely environment friendly.”62

CHAPTER - 5STRATEGIES AND ADVANTAGES OF GREENMARKETING

STRATEGIES FOR SUCCESS

Many marketers now grow their businesses by addressing specific environmentalissues that
are most relevant to their consumers. In the process, they save money andenhance
corporate and brand imagery while ensuring future sales for their products. Usethe following
strategies to create profitable new or improved products and packages thatbalance
consumers’ needs with environmental considerations.
1. Minimize Direct Environmental Impact2. Use Sustainable Sources of Raw Material
The prospect of rapidly depleting stocks of natural resources and the
resultingr e a l i t y o f p r i c e i n c r e a s e s c r e a t e o p p o r t u n i t i e s f o r a l t e r n a t i v e
t e c h n o l o g i e s a n d n e w efficiency with product design. For example, paper
doesn’t have to come from trees; infact, alternative sources may be preferable.
Promising new sources include kenaf, a fast-growing bamboo grown in the southern US, and
hemp, which is naturally pest resistant,can be bleached with peroxide instead of
chlorine, and produces a fiber more versatilethan fiber from trees.
3. Source-Reduce Products and Packaging
In the Pollution Prevention Act of 1990, the United States Congress declared
"that pollution should be prevented or reduced at its source whenever feasible."
Since the cost savings associated with source reduction are roughly parallel to the amountof
packaging eliminated, the tenets of this law are not only good for the
environment,t h e y a r e g o o d f o r b u s i n e s s . L e s s p a c k a g i n g a l s o
m e a n s l e s s e n e r g y r e q u i r e d f o r manufacturing and transportation and
less pollution from the production of packagingitself.63

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

Johnson’s steel aerosol cans use 35 percent less tin than the cans of the late
1980s.Concentrate products. Super concentrated laundry detergents, including Lever
Brothers’Wisk Power Scoop, now account for half of the $2.1-billion powder laundry
cleaners soldin America.Package in bulk for refilling. Refills used by all-purpose
cleaners, to use lessp a c k a g i n g p e r p r o d u c t a n d s a v e c o n s u m e r s m o n e y .
M u l t i - p u r p o s e p r o d u c t s s u c h a s shampoo-and-conditioner-in-one also help to cut
down on duplication.
4. Conserve Natural Resources, Habitats, and Endangered Species5. Use Recycled Content

According to the Environmental Defense Fund, recycling:

•
cuts pollution and conserves natural resources
•
conserves energy
•
can be cost-competitive with land-filling and incineration if sensibly designed
andimplemented
•
creates jobs and reduces costs in manufacturing sectors that are an important partof our
economy.With the help of innovative technologies, the use of recycled content in
consumer products has skyrocketed in the last decade. Products that formerly
boasted 10 percentrecycled content may now incorporate as much as 100 percent
post-consumer content.Where even as recently as five years ago, recycled
content was limited mostly to paper,g l a s s , m e t a l s , a n d s o m e p l a s t i c l a u n d r y
b o t t l e s , n o w a n e n t i r e a r r a y o f h i g h q u a l i t y products including clothing, garden
furniture, paint, and motor oil are closing the loop.
6. Make Products Energy Efficient
64

Individuals directly consume about 40 percent of the energy used in the U.S.
for such things as powering cars, lighting, heating and cooling homes, and
runninga p p l i a n c e s . I n t h e p r o c e s s , t h e y c o n t r i b u t e a b o u t 4 0 , 0 0 0 p o u n d s
of carbon dioxideemissions a year. However, many thousands of pounds
c a n b e e l i m i n a t e d b y s i m p l e actions. In fact, the California Energy Commission
estimates that cost-effectiveinvestments could reduce total U.S. electricity demand by 40
percent to 75 percent.
7. Maximize Consumer and Environmental Safety
Scientific data and empirical evidence continue to link various illnesses
withconsumer products made from synthetic chemicals. According to the EPA,
formaldehydei n w o o d p a n e l i n g c a u s e s w h e e z i n g , o r g a n i c g a s e s i n
carpeting cause liver damage,perchloroethylene used to dry-clean
c l o t h i n g c a u s e s h e a d a c h e s , a n d V O C s ( v o l a t i l e organic compounds) in
cleaning products cause nausea. Many illnesses can be traced toi n d o o r
pollution, which has been proven to be ten times more toxic than its
o u t d o o r counterpart.Consumers’ concerns about product safety translate into
opportunities for alternative home construction and cleaning products.
8. Make Products More Durable
As demonstrated by historical sales pitches for Maytag Washers and Volvo Cars,consumers
value durable appliances and automobiles. Thanks to environmental concerns,long product
life will increasingly become a source of added value and an indicator of quality
and convenience in many other industries as well.
9. Make Products and Packaging Reusable or Refillable
The throwaway convenience culture is making way for reuse and
r e f i l l i n g a s alternatives to land-filling, incineration, and even recycling.
10. Design Products for Remanufacturing, Recycling, and Repair
65

Landfill disposal bans are in force across the nation for such highly toxic items
as lead-acid batteries, tires, used motor oil, paints, and refrigerators. Due to such
legislativepressures as well as extended producer responsibility laws in Europe, a growing
number of manufacturers now design their products for remanufacture, recycling, and repair,
andhelp set up the infrastructures for doing so. Smart marketers are turning these
imperativesinto opportunities to save money, enhance quality and get closer to their
customer.
11. Make Products Safe for Disposal12. Make Products and Packaging Compostable
In nature, everything is recycled. Waste for one organism becomes food
f o r another. According to EPA, 40 percent of our solid wastes are biodegradable
materialsthat can be effectively composted into humus, an organic matter that can enrich
gardensand agricultural soils. This has important implications for businesses, and
a number of innovative designers are developing products with this idea in mind.66

RESULTS OF A SURVEY CONDUCTED IN THE USA

67

THE SEVEN STRATEGIES OF GREEN MARKETINGSUCCESS

The currency of the green business world is innovation, flexibility, change
andheart. New rules have emerged from the cloud of green marketing dust kicked
up in thel a t e 1 9 8 0 s a n d e a r l y 1 9 9 0 s . W e k n o w b e t t e r w h a t w o r k s - a n d
w h a t d o e s n o t . S e v e n strategies that work are listed in
Exhibit 1.
68

OTTMAN CONSULTING’S SEVEN STRATEGIES

GREEN MARKETING OPPORTUNITIES
Equipped with a better grasp of ecological issues, enlightened
businesspeoplevoluntarily adopt environmentally responsible business practices. A
growing number of CEOs now appreciate the link between environmental responsibility and
more efficient -and profitable - business practices. And more and more business
communicators knowhow to use green marketing strategies to take advantage of
opportunities to boost their corporate environmental images.69
MORE PROFITS –
Many companies, and especially those in such highly polluting
i n d u s t r i e s a s chemicals, oil, and electrical power generation, now have management
systems in placeto make sure corporate environmental profiles and products exceed
consumers’expectations. Today, major U.S. corporations conduct environmental
audits and recycletheir waste. Countless others upgrade their facilities with energy-
efficient technologies.Such steps reduce operating costs and liability while boosting
profits.Producing eco-efficient products creates less waste, uses fewer raw materials
andsaves energy, too. Thanks to innovative manufacturing processes suggested by
highlymotivated and environmentally trained employees, Interface, the world's largest
producer of commercial carpeting, projects a savings of more than $35 million by the end of
1997.The changes required for making and marketing environmentally
sensitiveproducts enhances employee morale and productivity with a payoff in improved
customer relations and overall returns on investment. Enhanced corporate imagery ensues,
and thiscan help attract investors and top talent.
COMPETITIVE ADVANTAGE –
Many marketers now know that being the first to the shelf with an
environmentali n n o v a t i o n b r i n g s c o m p e t i t i v e a d v a n t a g e . S i n c e 1 9 9 3 ,
R a y o v a c i n t r o d u c e d R e n e w a l brand reusable alkaline batteries and redefined
the market for re-chargeable. With 50p e r c e n t o f t h e p r o d u c t i o n c a p a c i t y f o r
p h o s p h a t e d e t e r g e n t s , G e r m a n - b a s e d H e n k e l pioneered the market for
zeolites and claimed market leadership when their consumersshifted to
phosphate-free detergents. Philips Lighting, inventors of compact
fluorescentl i g h t i n g t e c h n o l o g y , s t o o d r e a d y w h e n b u s i n e s s e s a n d e l e c t r i c
p o w e r u t i l i t i e s c a m e calling for replacements for energy-guzzling incandescent.
Wellman, Inc., has expandedi t s b u s i n e s s d e f i n i t i o n f r o m p l a s t i c s r e c y c l e r t o
p i o n e e r s i n t h e m a r k e t f o r b r a n d e d polyester fiber made from used Coke
bottles.Many of these leaders have been showered with any number of eco-
accoladesnow offered by industry, media, government or environmental groups.
One example isthe Special Edison Award for Environmental Achievement
bestowed by the AmericanMarketing Association. It has been won by Fortune 1000 firms
including 3M and Procter 70

and Gamble as well as by a raft of up-and-coming firms with a deep-green

orientationlike Natural Cotton Colours, Patagonia, and Tom’s of Maine.Young,
aggressive competitors adept at capturing the imaginations and winningthe hearts
of highly desirable environmentally and socially conscious customers
arei n t r o d u c i n g s o m e o f t h e m o s t e x c i t i n g g r e e n p r o d u c t s . T h e s u c c e s s
o f P a t a g o n i a outerwear, Stonyfield Farm Yogurt, and Tom’s of Maine
toothpaste suggest thatconsumers now have higher expectations for the products they buy
and that quality is animage that no longer stands apart from environmental impact.L o o k i n g
to cash in on the potential for future green-oriented sales, well-
established mass marketers now shop for green companies with promising green
brands;recent acquisitions include Earth’s Best Baby Foods (by Heinz), Murphy’s
Oil Soap(Colgate- Palmolive), EarthRite Cleaning Products (Reckitt & Colman). After
nearly twodecades of compromising on quality –and languishing on once-dusty
health food storeshelves as a result–today’s crop of green products finally
embody all that consumersdemand: an opportunity to clean up the mess without
having to give up price or quality.W i t h t h e d e e p e n e d c o n s u m e r c o n f i d e n c e
i n g r e e n p r o d u c t s t h a t r e s u l t s , t h e m a r k e t becomes legitimized.
INCREASED MARKET SHARE –
Times are tough for marketers of branded products. Brand loyalty is near all timelows, and
the percentage of Americans who feel that some brands are worth paying morefor is
declining. In this tough, competitive climate, environmental compatibility
breaksties at the shelf. Pragmatic consumers skew purchases to those products
and packagesthat must be recycled or otherwise safely disposed of in their communities.
All else beingequal, many consumers look to do their bit by happily switching brands, or
"boycotting"those companies and products deemed environmentally sound and boycotting
the brandsof companies with disappointing environmental track records.Theses growth
opportunities have not been lost on such market leaders as Procter & Gamble,
McDonald's, and Compaq. They offer the greenest of mainstream productsand
take pains to project environmentally appropriate corporate images. Pick up a bottleof Tide
laundry detergent and learn how it is "phosphate-free," contains
"biodegradable71

cleaning agents," and is packaged in a "recycled-content" bottle. Check out the

basicbrown paper carry-out bags and speckled (recycled) napkins at McDonald's (they are
nowtesting "Earth Shell" compostable food wraps), and buy a Compaq PC
emblazoned withthe Energy Star energy-saving designation.Many executives would be
shocked to discover just how many consumers areaware of - and act upon - their
knowledge of corporations’ track records for environmental, and also social,
responsibility. In one poll conducted by the Porter Novellipublic relations firm, for example,
consumers were five times more apt to believe that ac o m p a n y ’ s r e c o r d o n t h e
e n v i r o n m e n t w a s a n " i m p o r t a n t " f a c t o r i n t h e i r p u r c h a s i n g decisions than
corporate executives believed.
BETTER PRODUCTS
–
While much brand switching is conducted in the name of altruism, what
attractsmany consumers to greener products is quite simply the prospect of higher quality:
water-saving showerheads slash energy bills, concentrated laundry detergents are easier to
carryand store, and nontoxic garden products are safer for children. Except these
enhancedp r i m a r y b e n e f i t s – o f p e r f o r m a n c e , c o n v e n i e n c e , p r i c e , a n d
s a f e t y , f o r e x a m p l e – t h a t accompany environmental improvements to continue to
propel the market for environmentally preferable products in the years and decades ahead.
PERSONAL REWARDS –
Green marketing offers a rare opportunity to integrate one’s values into
t h e workplace. Creating products that are more in sync with nature allows one to
personallyc o n t r i b u t e t o e n v i r o n m e n t a l c l e a n u p a n d h e l p e n s u r e a m o r e
s e c u r e f u t u r e f o r o u r children.A mind once expanded never goes back to where
it was. No longer content topromise consumers that their clothes will become
"whiter than white" or breath that is"fresher than fresh", green marketers–like their
bosses who manage for a double bottomline–cultivate higher levels of satisfaction and
reward. They offer their consumers theprospect of healthier, more fulfilled lives, and
the power to make the world a better place.72

73
CHAPTER - 6CONCLUSION

CONCLUSION
There are many lessons to be learned to avoid green marketing myopia
theshort version of all this is that effective green marketing requires
a p p l y i n g g o o d marketing principles to make green products desirable for consumers. The
question thatremains, however, is, what is green marketing’s future? Historically,
green marketinghas been a misunderstood concept. Business scholars have viewed it as a
“fringe” topic,given that environmentalism’s acceptance of limits and conservation does not
mesh wellwith marketing’s traditional axioms of “give customers what they want”
and “sell asmuch as you can.” In practice, green marketing myopia has led to
ineffective products74

and consumer reluctance. Sustainability, however, is destined to dominate

twenty-firstcentury commerce. Rising energy prices, growing pollution and resource
consumption inAsia, and political pressures to address climate change are driving
innovation towardhealthier, more-efficient, high-performance products. In short, all
marketing willincorporate elements of green marketing.A more sustainable business model
requires “product dematerialization” that is,commerce will shift from the “sale of
goods” to the “sale of services” (for example,providing illumination rather than selling
light bulbs). Innovations that transform material goods into efficient streams of services
couldproliferate if consumers see them as desirable. To avoid green marketing
myopia, thefuture success of product dematerialization and more sustainable services will
depend oncredibly communicating and delivering consumer-desired value in the marketplace.
Onlythen will product dematerialization steer business onto a more sustainable
path.Successful green marketing entails much more than simply tweaking the size of
ap a c k a g e , u s i n g r e c y c l e d m a t e r i a l s i n p l a c e o f v i r g i n o n e s , o r
s u b s t i t u t i n g n a t u r a l ingredients for synthetic. While positive and necessary, such
changes are just a small partof a much, much bigger picture. When we look at the businesses
that are at the forefrontof the green trend, we see a deeper characteristic than just greened-up
products or ads thatm a k e s t h e m a t o n c e e n v i r o n m e n t a l a n d s o c i e t a l l e a d e r s
as well as profitable: greenleaders are driven by more than short-term
f i n a n c i a l g o a l s . T h e y a r e m o t i v a t e d b y a double bottom line, a bottom line
that recognizes the potential for business to affectsocietal change as well as create
economic wealth. A business that at the end of the day ismeasured by profits as much as
its contribution to human potential and the harmony of the company's objectives
with other living beings.Green leaders are not afraid to project the values

that underlie their organization'smission and purpose. To their customers, the products they
sell are not just consumablessold at a profit but mirrors of their corporate
commitment to environmental care andsocial responsibility. Such products
appeal to consumers with a finely honed sense of 75

idealism, integrity, and the belief that businesses can and should achieve social
goals asw e l l a s f i n a n c i a l o n e s . B e c a u s e g r e e n l e a d e r s a r e n o t a f r a i d t o
take a stand on their beliefs, their consumers stand ready to believe
t h e i r p r o d u c t c l a i m s a n d r e g a r d t h e individuals running the company as
sincere.The most successful green companies operate holistically. Unlike
conventionalmarketers who most often react to consumers' immediate needs, the
most successfulgreen companies lead their customers and other stakeholders, rather than
accept being ledby them. They anticipate emerging environmental issues and address them
before beingforced to do so. As such they are able to set their own agenda with
regulators and theydon't risk disappointing their customers or shaking their
confidence.Rather than simply employ resources at hand, the deep-seated
convictions of thefounders and CEOs of the most environmentally responsible
companies challenge their e m p l o y e e s t o s t r e t c h b e y o n d t h e i r i m m e d i a t e
h o r i z o n s , t e a m i n g u p w i t h c o r p o r a t e environmental stakeholders to create
optimal solutions to pressing environmentalproblems.These leaders are not afraid to
question assumptions

or

break the rules. Theyderive competitive advantage while accomplishing the

most good for society byembracing unconventional and often radical solutions.
They enhance profitability andquality by innovating more and more efficient
ways to design and market products andconduct their businesses overall.The greenest
companies are not afraid to listen – to understand the issues from allsides, to pick up clues
from individuals and groups on the fringes who can lead them tonew
opportunities, and to simply demonstrate to employees, customers, suppliers
andothers that they care. At the same time, they are not afraid to trust
.
T h e y a r e o p e n t o entrees from government regulators offering technical
assistance or to anenvironmentalist with a seemingly off-beat idea. Most importantly,
they trust their owninstincts, their insights into the causes and probable solutions to society's
environmentalills, and their own deeply held beliefs. Green leaders focus–on the
stakeholders most76

important to their business and on the product attributes that represent

t h e g r e a t e s t environmental impact and are most important to their customers.Finally,
green leaders are patient. They are committed to the long term, and
toc o n t i n u o u s i m p r o v e m e n t . T h e y a r e e a g e r t o l e a r n f r o m t h e i r o w n
m i s t a k e s a n d t h e y engage in forums that allow them to learn from the mistakes
of others. And, like SallyFox, who took 10 years to cultivate a naturally colored cotton
seed capable of yielding afiber long enough to be spun into marketable yarn, green leaders
persevere.A green future is now being created by visionaries with a competitive
spirit intheir bellies and social activism in their hearts. While many businessmen and
women maystill be content to tweak products or manage cash cows in the quest for
next quarter'searnings, green leaders are right now readying new products and
services to market,creating new industries and more inclusive work and management
styles that didn't existfive or ten years ago. Theirs will be the standards for the
future.With ever increasingscientific understanding of how the Earth works, a general
movement toward safer, lesspolluting and more environmentally sustainable
practices is inevitable. Marketers thattake the time now to court the deepest green
consumers with truly innovative solutions toenvironmental concerns will be the ones who
reap the biggest future opportunities.