Green and Sustainable Marketing

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    Green and sustainable marketing

    Group 1

    Section B

    Definition:

    An organizations efforts at designing,

    promoting, pricing and distributing products

    that will not harm the environment

    (Pride and Ferrell 1993).

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    Evolution of Green marketing

    CORPORATEENVIRONMENTALISM

    Shrewd business firms today view green developments more as marketopportunities rather than simply as compulsions to comply with.

    GREEN CONSUMERISM

    Consumerism has become more broad based. Growing concern amongconsumers for the environment has come to be known as green consumerism

    ENVIRONMENTALISM

    Firms started practising green marketing by way of redesigning their productsand packaging, and publicising the same

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    Survey results estabilish high environmental

    consciousnes among Indian Customers

    Behavior pattern score

    I look for environmental information when I buy everyday

    items.

    3.82

    I minimize purchase of products using scarce/short supply

    resources.

    4.25

    I purchased products causing less pollution. 4.31

    I do not buy products of ecologically irresponsible

    companies.

    3.47

    I buy products which can be recycled. 3.89

    I buy energy efficient household appliances. 4.41

    I buy toilet paper/napkins made from recycled paper. 3.73

    I have switched brand due to ecological reasons. 3.27

    I have switched products for ecological reasons. 3.4

    Green Marketing: An Attitudinal and Behavioural Analysis of Indian

    Consumers; Sanjay K. Jain and Gurmeet Kaur

    Survey Stats Conducted among 219 residents of NCRregion, 40% Males, 60% Females Questionaire on Likert scale ranging from 1(Strongly disagree) to 5 (strongly agree)

    Key Findings In India true green consumerism is

    still in a nascent stage.

    Respondents are willing to buy eco-

    products but they feel constrained in

    their efforts due to a dearth of suchproducts in the market.

    Respondents do not believe that the

    response shown by business

    organizations to environmental

    concerns is just a sales gimmick.

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    Potential and checklist for

    environmental marketing in India GreenFactor, a global survey, conducted amongst enterprise IT decision makers

    released in June, 2009 showed India as the leader in green IT potential.

    A higher percentage ofIndian respondents said they would pay at least a five per

    cent premium on green IT or definitely would increase their preference for

    green IT with proven ROI (return on investment) or both. 22.3 per cent of the survey respondents who said they would opt for green

    computing products were from India, with the US following second with 14.9 per

    cent. Price 38%

    Internal Disagreement/ Political 25%

    Efficiency will not offset costs 22%

    Brands not convincing of ROI 18%

    Brands not promoting importance of green products 18%

    Green Products not available 16%

    No Impact on environment 12%

    Barriersto

    adoptinggreen

    products

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    Dettol

    -Awarded Best Green Brand of India 2009

    -Dettol antiseptic was first sold in glassbottles until 1973 after which theyswitched to PVC packaging.

    -Now available in polypropylene plastic (PP)bottles:- Enviro-friendly to use and dispose

    -In line with RBs global environmentprogramme: Carbon 20

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    Infosys

    -Ambitious target of being a carbon neutralcompany by 2012

    -Design all new buildings as green buildings,more energy efficient

    -Enabling maximum usage of natural light ,usage of luminous light instead of artificial

    -Deploying sensors to automatically turn offlights, monitors, and IP phones (saves 30%)

    -Optimized power management configuration-desktops enter sleep mode after one hour (20%saving)

    -Smart Data Center' initiative that minimizes theuse of A.C. Units

    Carpooling system through personalizedinformation and alerts.-

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    ITC Green Initiative

    -Carbon Positive' for 4 consecutive years, WaterPositive' for 7 years

    -ITC Sonar in Kolkata is the first hotel in the worldto earn carbon credits: use energy-efficientcompact fluorescent lamps

    -ITC Green Centre: LEED Certified

    -Has earned 57,000 carbon credits for 3,000hectares of plantations, a CDM-registered project

    -R&D for clonal propagation started in 1993:mobilising tribals to plant trees

    -Its green initiative extends to rainwater harvesting,recycling of waste and effluents

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    Maruti Udyog

    -Facilitating implementation of EnvironmentManagement System (EMS) at its suppliers'end

    -Regular training programs are conducted forall the suppliers on EMS

    -Three-coat-one-bake painting system: lowerenergy consumption & green co-efficient

    better

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    Wipro & HCL

    -Try to make every PC Deep Green

    -Supports Earth Hour

    -Some Initiatives: Energy and WaterConservation, Efficient Waste Disposal, Useof Eco-friendly manufacturing fuels,substitution of hazardous components,Recycling and Eco-friendly facilities

    -HCLs Eco-friendly ME series-manufactured with BFR components makingit 100% recyclable.

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    Philips Green Campaign

    -Recycling programs for its electronicsproducts

    -Initiative to make 30 percent of its revenuefrom "green" products by 2012.

    -Producer pays Model: The consumer pays afixed recycling fee.

    -In return, retailers must offer to take back oneold product for each new one sold

    Nokia and Sony Ericsson MobileCommunications following the same path.

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    Philips

    TheW

    ay ahead

    In 2009 Phillips evaluated its sustainability strategy andresolved to fully leverage sustainability as an integral part oftheir overall strategy and an additional driver of growth, asreflected in the Philips Management Agenda 2010.

    Care Energy efficiency Material

    Bringing CARE to more than 500 million peopleTarget: 500 million lives touched by 2015

    Improving ENERGYEFFICIENCYof Philips productsTarget: 50% improvement by 2015 (for the average total

    product portfolio) compared to 2009Closing the MATERIAL loopTarget: Double global collection, recycling amounts andrecycled materials in products by 2015 compared to 2009.

    EcoVision5

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    Philips

    Future OpportunitiesSMILE (Sustainable model in lighting everywhere) & SESA(sustainable energy solutions for Africa)

    -Need to find innovative lighting solutions for 1.6 billion people wholive in areas with no access to electricity.

    -Pilot in 2006, for four Indian states (SMILE)-Uday, Kiran

    Asimpleswitch.com Philips

    -Information about simple processes the producers and consumers can change

    -Knowledge sharing

    -spread awareness , make people sensitive towards the environment

    StEP (solving the E-waste Problem)-A UN supported public-private initiative

    -Signed an MOU with the government of Thailand, to develop nationalWEEE(Waste Electrical and Electronic Equipment)solutions

    - Cardboard packaging material contains 90% recycled content.

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    Framework for Green Marketing

    Strategy

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    Pantaloon Retail India Ltd

    Some stats 120 Big Bazaar and 170 Food Bazaar stores

    1000 stores across 73 cities

    Total retail area 16million sq. feet

    240million customers

    LOGISTICS

    Logistics handled by Future LogisticsSolutions limited

    Over 4000 vendors across the country

    50 warehouses with a total warehousingspace of over 3.5mn sq. feet

    Over 39,000 kilolitres of High speed dieselused in FY2009

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    Pantaloon Green Marketing Strategy

    PLANNING

    Carry out an energy audit to understand the true carbon footprint

    of Pantaloon. E.g. Walmart released its CO2 emissions data last

    year (20 mn tons)

    Set targets for emission reduction in various logistics and front-endoperations

    Transport fuel consumption

    Reduction of plastic/paper consumption in front-end activities

    Energy requirement of the stores

    Other auxiliary activities

    Future expansion strategy should take into account the energy

    footprint

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    Pantaloon Green Marketing Strategy

    PROCESSES

    Reduce use of plastic bags

    Tesla gives GreenClub points on purchase of reusablebags. Has reduced plastic bag usage by 2 million

    Reduce electricity consumption in its stores

    Walmart wants to reduce electricity consumption at its7000 stores by 30%

    Reduce wastage from outlets

    Carrefour ofFrance is opening its green stores whichwill have zero wastage policy in select areas

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    Pantaloon Green Marketing Strategy

    PRODUCTSTailor Pantaloon product strategy according to customer environment

    consciousness

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    Pantaloon Green Marketing Strategy

    PROMOTION Direct green efforts from the top and get buy-in

    from key stakeholders.

    Lee Scott, Walmart CEO has become the publicface of the commitment to cut greenhouse-gasemissions at its stores by 20 %, double the fuelefficiency of trucks, reduce solid wastes by 25%.

    Walmart has announced that it will do energyaudit of its suppliers and using its buying power tomake them adhere to green norms

    Be consistent in order to be credible Goals, actions, and messages must have a

    common underlying vision.

    General Electric sends out messages about itsecomagination efforts through TV and printads, conferences and trade shows etc

    It also measures the effectiveness of eachmedium

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    Adamya Chandra (016/46)

    Aditya Ganguli (018/46) Aditya Rahul Singh(021/46)

    Gautam Adukia (022/46)

    Ajay Bansal (023/46)

    Amit Chawla (031/46)