green: the new colour of marketing in india

ASCI Journal of Management 42 (2): 52–72Copyright © 2013 Administrative Staff College of India

GEETIKA SINGH*

Green: The New Colour of Marketing in India

Introduction

Enormous economic and population growth worldwide in the second half ofthe twentieth century have threatened the health of the planet—ozone depletion,climate change, depletion of forest cover, fouling of natural resources, andextensive loss of biodiversity and natural habitats. There are many aspects ofthe natural environment that are impacted by the production of goods andrendering of services. The green and sustainability trend has emerged due tothe pressure on companies from consumers, shareholders, employees, partnersand governments (regulations) to embrace more sustainable and green practices.A sustainable business ought to meet customer needs without harming theenvironment. Sustainable business, or green business, is an enterprise that hasminimal negative impact on the global or local environment, community, societyor economy. Sustainable development within a business can create value forcustomers, investors and the environment. Sustainability is a three-legged stoolof people, planet and profit.

In 1987, Our Common Future, a report prepared by the UN World Commissionon Environment and Development defined sustainable development as meeting“the needs of the present without compromising the ability of future generationsto meet their own need.” This became known as the Brundtland Report andwas a major step towards widespread thinking on sustainability in everydayactivity.

Several international agreements have been reached that require nations toadhere to specified environmental standards. For example, the original MontrealProtocol agreement of 1987, and the subsequent amendments to it right up to2007, have been designed to protect the stratospheric ozone layer by controllingthe release of, and eventually phasing out, ozone-depleting substances, such as

* Academic Officer (Management), J&K Board of School Education (e-mail:[email protected]).

Singh Green: The New Colour of Marketing 53

chlorofluorocarbons (CFCs), halons, carbon tetrachloride,hydrochlorofluorocarbons (HCFCs), methyle chloroform and methyl bromide,by the developed as well as developing countries.

The Basel Convention on the Control of Trans-boundary Movements ofHazardous Wastes and their Disposal was adopted on 22 March 1989 in Basel,Switzerland, in response to a public outcry following the discovery, in the 1980s,in Africa and other parts of the developing world of deposits of toxic wastesimported from abroad. Growing environmental awareness in the industrializedworld during the 1970s and 1980s had led to increasing public resistance to thedisposal of hazardous wastes; and the corresponding tightening of environmentalregulations in these countries meant an escalation of disposal costs. Thisimpelled some operators to seek cheap disposal options for hazardous wastesin Eastern Europe and the developing world, where environmental awarenesswas far less developed and regulations and enforcement mechanisms werelacking.

The overarching objective of the Basel Convention is to protect human healthand the environment against the adverse effects of trade in hazardous wastesby observing the fundamental principles of environmentally sound wastemanagement. The cornerstone of the Convention is a regulatory system basedthe concept of prior informed consent and cooperation between the exportingand importing parties.

The Kyoto Protocol, which follows the United Nations Framework Conventionon Climate Change, is one of the chief instruments for tackling climate change.It contains the undertakings entered into by the industrialized countries to reducetheir emissions of certain greenhouse gases which are responsible for globalwarming. The total emissions of the developed countries are to be reduced byat least 5 per cent over the period 2008–12 compared with the 1990 levels.

In the past, the standard approaches to environmental problems generated bybusiness and industry have been regulatory-driven, ‘end-of-the-pipe’remediation efforts. In the 1990s, concerted efforts were made by governments,NGOs, corporations and investors to generate awareness and formulate plansfor investment in business sustainability. Twenty years later, many citizensaround the world have attempted to redesign their lifestyles and adopt greenpractices that are in harmony with our environment. This is becoming a bigtrend that is fast spreading all across the globe.

54 ASCI Journal of Management 42 (2) March 2013

Green Marketing: Definition

Green, environmental and eco-marketing are part of the new marketingapproaches which do not just re-focus, adjust or enhance existing marketingthinking and practice, but seek to challenge those approaches and provide asubstantially different perspective. Green, environmental and eco-marketingbelong to the group of approaches that seek to address the lack of fit betweenmarketing as it is currently practised and the ecological and social realities ofthe wider marketing environment. The term ‘green marketing’ came intoprominence in the late 1980s and early 1990s. It began in Europe when specificproducts were identified as being harmful to the earth’s atmosphere. As a result,new “green” products were introduced that were less damaging to theenvironment. The first wave of green marketing occurred in the 1980s.

The American Marketing Association (AMA) held the first Workshop onEcological Marketing in 1975. Two tangible milestones for the first wave ofgreen marketing came in the form of published books, both of which werecalled Green Marketing. On was by Ken Peattie (1992) in the United Kingdomand the other by Jacquelyn Ottman (1993) in the United States of America.

Green marketing refers to the process of selling products and/or services basedon their environmental benefits. Such a product or service may be environment-friendly in itself or produced and/or packaged in an environment-friendly way.The definition has been refined and segmented into three main brackets:Retailing Definition: The marketing of products that are presumed to beenvironmentally safe. Social Marketing Definition: The development andmarketing of products designed to minimize the negative effects on the physicalenvironment or to improve its quality. Environmental Definition: The effortsby organizations to produce, promote, package and reclaim products in a mannerthat is sensitive or responsive to ecological concerns. All the three definitionsspeak to the fact that green marketing involves informing consumers aboutinitiatives undertaken by the organization that will benefit the environment,with the overall goal of improving sales or reducing costs. According to theAmerican Marketing Association, green marketing is the marketing of productsthat are presumed to be environmentally safe. Thus, green marketingincorporates a broad range of activities, including product modification, changesto the production process, packaging changes, as well as modifying advertising.According to Polonsky (1994a: 2): “All activities designed to generate andfacilitate any exchange intended to satisfy human needs or wants such that


satisfying … these needs and wants occur with minimal detrimental input onthe national environment.”

Divergent aspects of green marketing include ecologically safer products,recyclable and biodegradable packaging, energy-efficient operations, and betterpollution controls. Advances in green marketing include packaging made fromrecycled paper, phosphate-free detergents, refillable containers for cleaningproducts, and bottles that use less plastic. As consumers increasingly becomemore conscious of the natural environment, businesses are beginning to adapttheir own models and strategies in an attempt to address the concerns of theconsumers. Green marketing is becoming more important to businesses becauseof the consumer’s genuine concerns about the limited resources of the earth.By implementing green marketing measures to save the earth’s resources inproduction, packaging and operations, businesses are conveying to consumersthat they too share the same concerns, thereby boosting their credibility.

The basic definition of green marketing has been misunderstood by the vastmajority. Green marketing is not merely restricted to the promotion oradvertising of products with environment-friendly characteristics. It involvesdeveloping and promoting products and services that satisfy customers wantsand their need for quality, performance, affordable pricing and conveniencewithout having a detrimental impact on the environment. Successful greenproducts have included: energy star-rated appliances, energy-efficientelectronics, environment-friendly household products, energy-efficient windowsand alternative transportation. Also included are organic foods, fair trade coffee,organic cotton and hemp apparel, natural personal care and skin care products,handmade paper, and natural fibre clothes.

Why Are Businesses Going Green?

Green marketing has been widely adopted by firms worldwide. The literatureon the subject suggests several reasons for the increased use of green marketing.

Opportunity to cash in on: As consumer demands and preferences change,many firms see green marketing as an opportunity to exploit and gain acompetitive advantage over rival firms that market non-environmentallyresponsible alternatives. One example of firms that have striven to becomemore environmentally responsible, in an attempt to better satisfy their consumerneeds, is McDonald’s. It replaced its clam-shell packaging with waxed paperbecause of increased consumer concern relating to polystyrene production and


ozone depletion. Being genuine and transparent means that: (a) a firm actuallydoes what it claims to be doing in its green marketing campaign; and (b) therest of its business policies are consistent with whatever it is doing that isenvironmentally friendly. Both these conditions have to be met for a businessto establish the kind of environmental credentials that will allow a greenmarketing campaign to succeed.

Government pressure: In all marketing-related activities, governments striveto ‘protect’ consumer and society. Government regulations relating toenvironmental marketing are designed to protect consumers in several ways:limit and control the amount of hazardous wastes produced by firms; reducethe production of harmful goods or by-products; modify consumer and industry’suse and/or consumption of harmful goods; and ensure that all types of consumershave the ability to evaluate the environmental composition of goods.

Competition: Another major force in environmental marketing has been thefirms’ desire to maintain their competitive position. In many cases, firms observecompetitors engaging in environmentally benign practices and attempt toemulate them. In some instances, this competitive pressure has led the entireindustry to modify their business practices and thus reduce the damage to theenvironment. For example, when one tuna manufacturer stopped using driftnets, others followed suit.

Social responsibility: Many firms are beginning to realize that they are membersof the wider community and therefore must conduct their business in anenvironmentally responsible manner. This translates into firms that believethey must achieve their environmental objectives as well as their profit-relatedgoals. This results in environmental issues being integrated into the firm’scorporate culture. Firms may also use green marketing in an attempt to addresscost- or profit-related issues. When attempting to minimize waste, firms areoften forced to re-examine their production processes. As a result, they oftendevelop more effective production processes that not only reduce waste, butalso use less raw materials. Thus, they achieve dual cost savings, since bothwaste and raw material are reduced. In other cases, firms attempt to find end-of-pipe solutions, instead of minimizing waste. They try to find markets oruses for their waste material, where one firm’s waste becomes another firm’sinput of production.

Growing number of green consumers: Understanding the demographics ofgreen consumerism can help entrepreneurs explore the environmental market


and home in on likely prospects. Research has shown that green consumerswho are sincere in their intentions, with a growing commitment to greenerlifestyles, almost always judge their own environmental practices as inadequate.However, they do not expect companies to be perfect in order to be considered‘green’. Rather, they look for companies that have taken substantive steps andhave made a commitment to align their business practices with environmentalconcerns.

Technology: Technological break-throughs are helping to produce and/orpromote products with components that keep the environment safe and promotesustainable development. Cutting-edge research on fuel cells (electrochemicaldevices that convert the chemical energy of a fuel source into electricity,generating water as a by-product), with the potential to replace fossil fuelswith pollution-free fuel (for example, the use of fuel cells in electric vehiclesto reduce air pollution), and the use of super-conductivity technology inmagnetic levitation (mag-lev) trains are examples of the strides being made ingreen technology. Mag-lev trains can be made to ‘float’ on strongsuperconducting magnets, virtually eliminating friction between the train andthe tracks. Conventional electromagnets waste as heat much of the electricalenergy generated. Superconductor materials have no electrical resistance, andcarry large amounts of electrical current for long periods of time without losingenergy as heat.

Green Marketing Mix

The 4 Ps of green marketing are similar to those of conventional marketing;however, the challenge before green marketers is to use the 4 Ps in an innovativemanner.

Product: Identify customers’ environmental needs and develop products toaddress these needs. Develop environmentally responsible products that haveless adverse impact on the environment compared to the products offered bycompetitors. For example, McDonald’s changed their packaging frompolystyrene to paper. Nike is the first among shoe companies to market itselfas green. The company has significantly reduced the usage of harmful gluesand adhesives in its Air Jordan shoes, which are being marketed as environment-friendly. Nike has designed this model of shoes to emphasize that it has reducedwastage and used environment-friendly materials.

Price: Most customers will only be prepared to pay a premium if there is aperception of additional product value. Environmental benefits are usually an


added bonus but will often be the deciding factor between products of equalvalue and quality. For example, Nilkamal introduced inexpensive plastic andmoulded furniture. Walmart unveiled its first recyclable cloth shopping bag.

Promotion: This includes paid advertising, public relations, sales promotions,direct marketing and on-site promotions. Green marketers will be able toreinforce environmental credibility by using sustainable marketing andcommunications tools and practices. For example, many companies in thebanking sector, like ICICI Bank, are providing electronic statements by e-mail.

Place: Few interested customers will go out of their way to buy green productsmerely for the sake of it. In most cases, green products need to be broadlypositioned in the marketplace so they have a wider appeal and do not cater toonly a niche segment. In-store promotions and visually appealing displays orusing recycled materials can be used to emphasise the environmental and otherbenefits of the products.

In their book on Sustainability Marketing, Belz and Peattie go one step furtherin terms of not just marketing but operating “green”. They transformed the 4Ps into the 4 Cs. The four Cs—customer solutions, customer cost,communication and convenience—take the point of view of the customer (notthe producer). Customer solutions: These solutions go beyond selling physicalproducts and present solutions to the customer’s problems. Customer cost: Itincludes not only the financial price a buyer has to pay for a product or aservice, but also considers the psychological, social and environmental costsof obtaining, using and disposing of the product. Communication: “Green”communication goes beyond promotion, which is a form of persuasion and aone-way communication from seller to buyer. Convenience: Customers preferto use products and services that meet their needs and that are easy andconvenient to access and use.

Eco-marks/Eco-labels: “Eco-labeling” is a voluntary approach toenvironmental performance certification that is practised around the world. Aneco-label identifies a product that meets specified performance criteria orstandards. In contrast to “green” symbols or claim statements made bymanufacturers and service providers, an eco-label is awarded by a third-partyorganization for products or services that are determined to meet specificenvironmental criteria. It is a government-run seal of approval programme forenvironment-friendly consumer products. To increase consumer awareness,the Government of India launched the eco-labelling scheme known as Ecomark


in 1991 for easy identification of environment-friendly products. The criteriafollow a cradle-to-grave approach, i.e., from raw material extraction, tomanufacturing to disposal.

Review of Literature

Studies have shown that in order to know the target green market segmentbetter, there is need for appropriate individual consumer tendencies towardsgreen marketing (Fuller, 1999: 330–31; Coddington, 1993: 83). There is noone single strategy that will work for all companies. What strategy should beadopted depends on the individual company’s objectives, its resources the targetmarket, etc. (Polonsky and Rosenberger, 2001). The development of a greenmarketing strategy by a company is a complex process. Green marketing isviewed as “creating [an] opportunity to innovate in ways that make a differenceand at the same time achieve business success (Grant, 2007: 25).” Variousauthors have proposed different models to develop the marketing strategy, whichinclude the green marketing grid (ibid.: 10, 59) and the green marketing strategymatrix (Ginsbgerg and Bloom, 2004).

Further, a holistic and integrated approach is necessary to implement greenmarketing strategies in all areas of the marketing mix, as emphasized byPolonsky and Rosenberger (2001). Green marketing strategies are consideredto be environmentally superior as they create competitive advantage bystimulating innovation and tapping into the concerns of consumer (Porter andvan der Linde, 1995). The study by Jacquelyn Ottman (1993) revealed thatpractising green marketing helps companies to increase their market share andalso become more profitable. Green marketing is viewed as a means to achievethe organization’s objectives (Keller, 1987; Shearer, 1990). Studies indicatethat consumers and the general public are concerned about the environment(Van Liere and Dunlop, 1981; McCarty and Shrum, 1994). Studies also suggestthat concern for the environment is being reflected in changes in consumption-related perceptions and behaviour.

However, Walley and Whitehead (1994) have argued that a greening strategyis difficult to implement in practice. A study conducted by Pujari, Peattie andWright (2004: 657–71) pointed to the importance of organization structure inimplementing a green marketing strategy, and that companies vary by their“environmentally conscious product design dimensions.” Based on this finding,the authors recommended the importance of putting supportive structures inplace for effective implementation. In order to optimize the economic return


on their investment, companies must develop strategies that transformenvironmental investment into sources of competitive advantage (Orsato, 2006).

Closer home, in a comprehensive attitudinal and behavioral analysis of Indianconsumers with regard to green marketing, Jain and Kaur (2004) found thatthe consumers surveyed reported a high level of concern for the environmentand engagement with environmental issues. On a personal level, respondentspositively affirmed that they had been influenced by green communicationcampaigns. They exhibit a willingness to take environment-friendly actions,seek environment-related information, and pursue activities that help conservethe environment and prevent pollution (ibid.). Innovating for sustainabilitybrings with it exciting opportunities for businesses to grow their top-line salesand even evolve and transform their business models. To stay competitive andmeet the challenges of sustainable development, forward-thinking businesseswill need to combine innovation with ecology, through the power of “eco-innovation.” That is a key message of Jacquelyn Ottman’s book, The NewRules of Green Marketing: Strategies, Tools and Inspiration for SustainableBranding (2011).

Research Methodology

The paper employs a case study approach in order to gain deeper insights intohow green marketing strategies can be developed and to understand the rationalefor the adoption of green marketing by various companies. Moreover, whenthe researcher has little control over events, the focus in on a currentphenomenon in a real life context, and the study attempts to answer ‘how’ or‘why’ questions, case study is the preferred approach (Yin, 2003). Holme andSolvang (1997) delineate two different methodological approaches that areused in the study of social science: the qualitative and the quantitative approach.There are no absolute differences between the two approaches. The twoapproaches are not mutually exclusive; often, researchers combine the twowithin a research project. The choice between qualitative and quantitativemethods should be guided by the formulation of the research problem.

Green Brands

A green future with greener surroundings and a green bank balance is on mostpeople’s list irrespective of which side of the globe they are on. But is greenonly a healthy colour that consumers like to see in their shopping carts? Ordoes it become a decisive point while making purchases? As countries globally


step on the pedal for greener policies, and organizations increasingly adopt the‘organic’ growth path, is the consumer’s desire for going green translating intoaction when she/he makes key decisions during crowded, crazy shopping hours?And if so, what is driving the consumer’s choice for green brands? Capturingthe perspective of over 9,000 consumers across eight countries, the 2011ImagePower® Green Brands Survey (Available online at: http://www.rankingthebrands.com/PDF/The%202011%20Image%20Power%20Green%20Brands.pdf) revealed that an increasing number of consumers exhibita desire to go green and are willing to pay relatively more to buy a greenproduct. The Green Brands Survey, which is amongst the largest surveys onconsumer perceptions of green brands and corporate environmentalresponsibility, shows that concern about the environment is translating into awillingness by the consumers to pay a premium for green products. Givenbelow are some of the key findings from the 2011 ImagePower® Green BrandsSurvey:

Consumers do care: There is a heartening trend among consumers in India,China and Brazil towards choosing green products. A sizeable 64 per cent ofIndian consumers plan to spend more on green products in 2012. Furthermore,consistent with the trend in other emerging countries, 28 per cent of the Indianconsumers in the survey expressed the intent to purchase green automobiles in2012, as against the 16 per cent that purchased green automobiles in the previousyear (p. 12).

Packaging right: Packaging and publicity both figure as important parametersamong the consumer’s criteria for choosing green products. Absence of properlabelling was cited as one of the critical reasons for consumers not choosinggreen products. Nearly 56 per cent of the consumers in China and 33 per centin India reported that the green labelling or product information was confusing,which impacted their decision (p. 3).

Cost considerations: Price is yet another important consideration in consumers’decision on whether or not to buy green products. The relative inaccessibilityand higher prices of green products make consumers view them as a luxurypurchase rather than a sensible and sustainable one.

Advertise your green power: The 2011 ImagePower® Green Brands Surveyrevealed that consumers in emerging countries are more trusting of advertisingcompared to their counterparts in developed countries. In the case of India, 86per cent of those surveyed reported that advertisements of green products helped


them to make environment-friendly choices and nearly 57 per cent said theywere influenced by TV advertisements to buy green (p. 7).

Regulate green responsibility: In keeping with the global trend, a vast majorityof Indian consumers surveyed would like the government to support greeninnovation and regulation. With regard to household goods, consumers wantthe government to mandate producer responsibility and greater label clarity.Currently, India does not have consistent standards on packaging and labelling,which leaves consumers in the dark and unable to make informed decisionsand choices.

India and Green Marketing

According to a 2009 survey conducted by BT-AC Nielsen ORG-MARG, theoil and petroleum sector is considered to be the greenest sector in India. Oiland Natural Gas Corporation (ONGC) is viewed as the greenest company,followed by Reliance Industries. India is a world leader in green IT potential.The National Geographic Society’s complete 2012 Greendex, which tracksglobal attitudes towards consumption and the environment, ranks Indianconsumers first (58.9) and Chinese second (57.8) overall on the Greendex.Yet, 45 per cent of Indian consumers and 42 per cent of Chinese consumersfeel guilty about the impact they have on the environment—first and secondamong those surveyed and two times higher than Americans. Further, 53 percent of Chinese consumers do not believe individuals have the ability to protectthe environment, the second highest among all surveyed; Indian consumersrank fourth at 42 per cent. Taken together, those with the lightest environmentalfootprint are also most likely to feel both guilty and dis-empowered (availableonline at: http://images.nationalgeographic.com/wpf/media-content/file/Greendex_2012_Press_Release_final_7-12_-cb1342044548.pdf).

According to a March 2012 report on Attributes of the Socially-Conscious IndianConsumer, by Nielsen, a leading global provider of information and insightsinto what consumers watch and buy, seven in ten online consumers in Indiaprefer to conduct business with companies that have implemented sociallyresponsible programmes. Socially conscious consumers have been defined asthose consumers who are willing to pay more for products and services fromsocially responsible companies, and not based on their cause interests (availableonline at: http://www.nielsen.com/in/en/news-insights/press-room/2012/nielsen-identifies-attributes-of-the-socially-conscious-indian-c.print.html).


The desire to be eco-friendly covers the entire spectrum of economic goods,activities and services. This trend has been greatly influenced by consumerforums and judiciary. For example, when the Supreme Court ordered the Delhigovernment to examine ways and means to reduce air pollution in Delhi, itasked the government to introduce clean fuels like CNG in the public transportsystem. This put pressure on the petroleum companies to launch clean fuelswith low sulphur content and lead-free petrol. The only CNG supply companyin India, Indraprastha Gas Ltd., had to increase its supply of compressed naturalgas (CNG). Appropriate changes had to be made in the fuel technology usedby buses. This led to Delhi Transport Corporation (DTC) becoming the largestCNG-powered transport system in the country. As of 2011, Indraprastha Gashas 278 filling stations covering over 6,50,000 vehicles in the National CapitalRegion (NCR)–Delhi (available online at: http://www.iglonline.net)

Given below are examples of other companies in India that have made greenproducts a part of their socially and environmentally responsible businessstrategy.

Taj Hotels Resorts and Palaces: Taj Hotels Resorts and Palaces have launchedEARTH (Environment Awareness and Renewal at Taj Hotels), a movementthat works to minimize the impact of its businesses on the environment. Theinitiatives under this umbrella include environmental training for all employees,energy audits every three years, and a phased reduction of freshwaterconsumption.

Vivanta by Taj, like all Taj properties, will adopt the green best practicesmonitored by Green Globe, a leading worldwide certifier for the travel andtourism industry. At Lake Palace, Udaipur, which stands in the middle of thefamous Pichola Lake, the Taj takes care to avoid spoiling the lake water andharming its marine life. The hotel uses battery-operated boats instead of thosepowered by gasoline, and wastewater is recycled and used for irrigation. TheTaj Garden Retreat at Kumarakom in Kerala is located near the VembanadLake and the Kumarakom Bird Sanctuary, which is a favourite haunt of severalspecies of migratory birds. The hotel uses special lighting to reduce the glareso as not to disturb animal life, and wastewater is treated before beingdischarged. Located in a sensitive ecological zone, the Taj Exotica, Maldives,focuses on waste management. The use of plastic bags is restricted, andhazardous substances such as lead acid batteries are sent to Thilafushi Island, alandfill area allocated for refuse. The Taj Coral Reef Resort, located on a tropicalatoll, takes great care to protect the delicate ecosystem of the coral reefs. Trees


are planted near the beach, and extraction of sand from the beach is notpermitted. Organic wastes are processed and converted into fish food. Taj hotelsuse CFL lights, which consume 78 per cent less energy. Taj Coromandel,Chennai, generates energy from windmills; solar water heating systems at theTaj West End, Bangalore, have saved over 51,000 litres of fuel over the lastthree years; and a biogas plant at Rambagh Palace, Jaipur, a Taj hotel, helps inreducing energy costs.

Indian Oil: In the country’s pursuit of alternative sources of energy, Indian Oilis focusing on CNG (compressed natural gas), LPG for vehicles (the fuel ismarketed by Indian Oil under the brand name AutoGas), ethanol-blended petrol,bio-diesel and hydrogen energy. CNG is being marketed from select Indian Oiloutlets in Mumbai and Delhi as franchisees of Mahanagar Gas Ltd., Mumbai,and Indraprastha Gas. Ltd., Delhi, respectively. As of 2012, Indian Oil has setup 350 auto LPG dispensing stations (ALDS) covering 192 cities across India(available online at: http://www.iocl.com/Products/AutoGas.aspx.) In 2003, anew eco-friendly fuel, popularly called “gasohol”, was launched. This fuelcombines petrol with 5 per cent ethanol obtained from sugarcane molassesavailable throughout the country. Bio-diesel is another alternative fuel.Exhibiting diesel-like properties, it is synthesized by a simple chemical reactionbetween alcohols and vegetable oils. It is commonly made from edible oilslike soyabean, rapeseed and palm oil in several countries. However, non-edibletree-borne oil seeds of jatropha and karanjia are materials of choice in India.These species are energy-fixing, fast growing and yield appreciable quantitiesof seeds. Hydrogen has the potential to provide a clean and reliable source ofenergy that can be used in a wide range of applications, including the transportsector. Besides ensuring energy security to the nation, the environmental benefitsof using hydrogen in a fuel cell vehicle could be significant. Indian Oil’s R&DCentre, Faridabad, is the nodal agency of the hydrocarbon sector for usheringin hydrogen energy use in the country. As a part of its roadmap for a hydrogen-fuelled economy, Indian Oil recently commissioned India’s first hydrogen-CNG fuel dispensing station at its R&D Centre.

Oil and Natural Gas Corporation (ONGC): As part of its corporate socialresponsibility initiative, India’s largest oil producer, ONGC, has launchedenergy-efficient green crematoriums that will be available across the countryover the next few years. According to the company, its Mokshada GreenCremation initiative will save 60 to 70 per cent of wood and require one-fourthof the burning time per cremation compared to the traditional wooden pyre.Initially, 30 crematoriums are being established in eight cities in collaboration


with NGO Mokshda Paryavaran Evam Van Suraksha Samiti (MPEVSS) andlocal municipalities

Consumer Electronics and Durables

HCL: A leading global technology and IT enterprise company headquarteredin India, HCL launched its range of eco-friendly notebooks, HCL ME 40 in2010. The company claims that it is India’s first PVC-free and eco-friendlynotebook. It is completely free from polyvinyl chloride (PVC) material andother harmful chemicals. Further, the Bureau of Energy Efficiency has givenHCL eco-friendly products a five-star rating. They also meet REACH (EuropeanUnion regulation on chemicals and their safe use) standards and are 100 percent recyclable and toxins-free.

LG Electronics: The South Korean multinational consumer electronics andhome appliances company recently introduced the LG LED E60 and E90 seriesof monitors in the Indian market. Both the series are packed with eco-friendlyfeatures and consume 40 per cent less energy than the traditional LCD monitors.Also, the use of hazardous materials such as halogen and mercury has beenkept to a minimum. Globally, LG has launched a range of eco-friendly products,Eco-Chic, such as the platinum-coated two-door refrigerator and washingmachines with steam technology.

Haier Group: The Chinese multinational consumer electronics and homeappliances company has launched its green initiative with the Eco-Life series,as a part of its global rebranding exercise. The initiative is aimed at designingsmart products that not only meet customer needs but also adhere toenvironmental norms. The company’s eco-friendly offerings includerefrigerators, semi- and fully automatic washing machines, split and windowsair conditioners, a wide range of LED and LCD TVs, and the Spa range ofwater heaters.

Samsung Electronics: The South Korean multinational electronics company,and a leading brand in display products, is continuing to evolve its LED monitortechnology. Its latest offerings include the environment-friendly 30 and 50 seriesof LED monitors. These monitors have a backlight that contains negligibleenvironmentally hazardous substances such as mercury or lead. Additionally,the monitors consume about 40 per cent less energy. Moreover, Samsung’sTouch of Color (ToC) technology does not use paints, sprays or glues, ensuringthat the monitors contain no volatile organic compounds (VOCs) and making


recycling simpler and safer. Another eco-friendly feature is that users canadjust the monitor’s brightness based on different energy consumption levels,with four pre-set energy-saving options to choose from. Samsung has alsolaunched its advanced range of split ACs, which claim to save up to 60 per centenergy.

Voltas: Among India’s leading air-conditioning, refrigeration and engineeringservices companies, Voltas launched its ‘Green’ range of air-conditioners in2007. Subsequently, the Indian government made it mandatory for homeappliances to have energy star ratings. Energy star is an international standardfor energy-efficient consumer products that originated in the United States.Devices carrying the star logo, such as computer products and peripherals,kitchen appliances and other consumer products, use about 20–30 per cent lessenergy than the set standards.

Panasonic: The Japanese multinational electronics major company hasintroduced ECONAVI (eco-navigation) functionality across a range of its homeappliances, including air conditioners, refrigerators and washing machines, toproduce energy-saving consumer durables. Using a combination of sensortechnology and programme control software, ECONAVI automatically monitorsthe surrounding living environment and adjusts the appliance’s response, basedon a family’s lifestyle, thereby minimizing energy consumption. For instance,four sensors—door-opening, light, room temperature and internal temperature—allow the ECONAVI refrigerator to analyze the time periods when the familytypically does not use the appliance—when they are sleeping or away fromhome—and go into the Night Eco Mode, which automatically reduces thecooling power and optimizes energy use. Globally, Panasonic is aiming tobecome a top green innovation company in the electronics industry by 2018and is laying a lot of emphasis on eco-friendly products.

Nokia: The Finnish multinational communications and information technologycorporation has taken several eco-friendly initiatives. It won the top GreenpeaceGreener Electronics Award for 2010 for phasing out the use of hazardousmaterials such as PVC plastic and brominated flame retardants (BFRs) fromits products and manufacturing processes. Nokia India has launched a campaignto recycle electronic waste. Consumers are encouraged to dump old mobilephones and accessories, irrespective of brand, at any of the 1,300 green recyclingbins at Nokia Priority dealers and Nokia care centres.

Wipro: Among the leading Indian IT consulting and outsourcing companies,Wipro has launched a wide range of eco-friendly desktops. Introduced under


the Wipro GreenWare initiative, these products aim to reduce the generation ofe-waste. The systems launched are toxin-free and operate under a total recyclingpolicy. With the removal of the toxins, recycling of electronic products shouldbe safer. Wipro has set up 17 e-waste collection centres in India where productsare collected and recycled. Also, 12 Wipro campuses in the country have beencertified as green buildings.

MRF Tyres: Indian tyre manufacturer MRF recently launched the premiumeco-friendly tubeless tyres MRF ZSLK series, which are made from uniquesilica-based rubber compounds. According to a company statement, the tyreshave been tested extensively on Indian road conditions, with an emphasis onendurance, wet and dry braking, and fuel efficiency. The ZSLK series areavailable for a range of passenger cars, including Honda City/Civic, Ford Fiesta,Hyundai Santro, Maruti SX4, Wagon R, Skoda Octavia, Tata Indica and NissanMicra.

ACC Ltd.: India’s leading cement manufacturer, ACC recently launched itsnew brand of cement, Concrete+. According to the company, this technologicallyadvanced cement has been specially formulated for concreting to ensure highdurability and resistance of structures under extreme climate. It is made byinter-grinding high strength cement clinker with high-quality processed flyash (a hazardous industrial waste), resulting in an environment-friendly product.

Fevicol: A leading brand of adhesives in India, Fevicol has introduced anenvironment-friendly synthetic resin adhesive. Claiming to be India’s first eco-friendly adhesive, Fevicol AC Duct King Eco Fresh boasts of being an all-in-one adhesive. This water-based adhesive is meant to have exceptional bondingstrength and spreads smoothly at room temperature without emitting any toxicfumes. According to the company, it is an ideal adhesive for AC duct insulationfor all residential and industrial projects.

Kansai Nerolac: The second largest coating company in India and the marketleader in automotive and powder coating, Kansai Nerolac Paints Ltd. has takeninitiatives in the areas of health, education, community development andenvironment preservation. Kansai Nerolac has worked on removing hazardousheavy metals, like lead, mercury, chromium, arsenic and antimony, from itspaints—both for passenger cars and its decorative range for households. Heavymetals can have adverse effects on humans. Lead in paints especially posedangers to human health, causing damage to the central nervous system, kidneysand the reproductive system.


Philips: Among the world’s leading lighting company, Philips has beendemonstrating its long-standing commitment to provide lighting solutions thatimprove people’s lives and are environmentally sound. In recent years, it hasbeen driving the lighting industry’s transition toward energy-efficient lighting,particularly LED lighting. The company aims to improve the energy efficiencyby 50 per cent of all the products it brings to the market by 2015. Energy-efficient lighting is one of the fastest and most cost-effective ways to abategreenhouse gas emissions and thereby combat climate change. Apart fromfocusing on the key contributor to climate change, greenhouse gas emissions,Philips Lighting’s Green Manufacturing 2015 programme also addresses usageof water, manufacturing waste and waste recycling, and usage of chemicalsubstances at its various production facilities.

IndusInd Bank: Among the fast growing new generation private sector banksin India, IndusInd Bank inaugurated, in December 2009, the country’s firstsolar-powered ATM as part of its Green Office Project campaign Hum aurHariyali, pioneering eco-savvy changes in the Indian banking sector. Accordingto a press release put out by the company, IndusInd’s new Solar ATM replacesthe use of conventional energy for eight hours per day with environment-friendlyand renewable solar energy. The energy saved will be 1,980 kwhr every yearand will be accompanied by a simultaneous reduction in carbon dioxideemissions by 1,942 kg. The uniqueness of this solar ATM is the ability to storeand transmit power on demand (in case of power failure) or according to need(time basis). (Available online at: http://www.indusind.com/indusind/wcms/en/home/top-links/media-room/press-releases/09-10_1st_solar ATM.avsFiles/PDF/IndusInd%20Bank%20inaugurates%20its%20first%20solar-powered%20ATM%20in%20Mumbai.%20Green%20Office%20Manual%20unveiled%20as%20.pdf).

Asserting its commitment to green banking, the management believes thatcorporate success is intrinsically linked to sustainable development. Some ofthe other initiatives being undertaken by IndusInd to reduce its carbon footprintand address the challenges of climate change are: thin computing, e-archiving,e-learning, e-waste management, paperless fax, energy conservation, andsupporting finance programmes with built-in incentives to go green.

Future of Green Marketing

Sustainability has become a global buzzword. The future of green marketingseems to be very effulgent. Earlier it was believed that companies resort to


green marketing because of government pressure and legislations. But withcitizens across the globe increasingly becoming concerned about theenvironment, they are appreciating and promoting the green initiatives takenby businesses and corporations. People prefer environment-friendly productsand are often able to use such products at lower prices. This trend is visible inautomobiles, hotels, manufacturing and other sectors, which drives companiesto promote activities, products and services that helps reduce their impact onthe environment.

The shift from conventional marketing to green marketing poses a challenge toseveral companies. This challenge can be turned into an opportunity by themanagements. Some of the challenges to be kept in mind while planning greenmarketing strategies are:

• Lack of credibility or trust on the part of consumers and end users

• Customer confusion regarding green or sustainable product claims

• Risk to a company’s reputation from ‘misleading claims’

• Liability risk from ‘greenwashing’ under Federal Trade Commission(FTC) Green Guides, which are designed to help marketers avoid makingenvironmental claims that mislead consumers. Greenwashing consistsof:

1. Suggesting a product is green on an unreasonably narrow set ofattributes

2. Lacking substantiation for the green claim

3. Defining the claim so broadly or vaguely so as to bemisunderstood

4. Making an environmental claim that is irrelevant or unimportant

5. Making a false claim

6. Providing fake labels of green certification

(Available online at: http://verdantlaw.com/index.php/download_file/-/view/131/.)

In order to face these challenges, companies must:

• Pick with great care the products or services that are being promoted asgreen


• Be careful in their choice of words (focus on specifics rather than thebroad picture)

• Be explicit about what part of their product or packaging is green

• Substantiate, substantiate, substantiate—always back up their claims

Green marketing has the potential to not only provide huge businessopportunities across the globe, but countries can also utilize such marketingactivity to engender peace, friendship and inclusive growth. However, thereshould be global consensus on the implementation of green initiatives andenvironmental standards and norms so that the developed/industrialized nationsdo not seriously undermine the development agenda of the faster growingdeveloping countries/emerging market economies. In the absence of suchsensitivity to the development concerns of the industrializing countries, therecould be a backlash and a setback to the entire concept of green marketing.

References

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Websites

green.in.msn.com/greenliving/article.aspx?cp-documentid=5221136.

http://environment.nationalgeographic.co.in/environment/greendex/.

http://images.nationalgeographic.com/wpf/media-content/file/Greendex_2012_Press_Release_final_7-12_-cb1342044548.pdf.

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www.wmin.ac.uk/marketing research/marketing/greenmix.html.

www.wpp.com › Press Centre › Press releases.

green: the new colour of marketing in india

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