Green Marketing NTCC Project
Green Marketing NTCC Project
NTCC Report
ON
Green Marketing
Submitted by
C LALMALSAWMI
BBA – 3A
Code : MSTP100
Session : 2019-2022
Name of the faculty guide:
Ribhu Ray
This is to certify that the Project work entitled “Green Marketing” is a record of
bona fide work carried out by Ms. C Lalmalsawmi, under my supervision towards
partial fulfillment of the Bachelor of Business Administration of the Amity
University Kolkata.
Date: _________________
DECLARATION
The findings and interpretations in the report are based on both primary and
secondary data collection. This project is not copied from any source or other
project submitted for similar purpose.
C LALMALSAWMI
BBA 2A
Enrol. No.A90606419061
ACKNOWLEDGEMENT
In pursuing and completion of my BBA and other commitments, I undertook the task of
I am thankful to Mr. Ribhu Ray, Faculty Guide, Amity University Kolkata, for his valuable
guidance and support at all time.
Last but not the least my special thanks go to all those who have given all the secretarial support-
despite all other commitments.
C LALMALSAWMI
BBA 2A
Enrol. No. A
TABLE OF CONTENT
PAGE NO.
12.) Conclusion 33
13.) Bibliography 34
Introduction
Over the last few decades, society has become more and more affected with
sustainable development delivery, due to the extension in world-wide population
and the demands for goods and services. Nowadays “Green” is getting popularized
among different age groups. Man is more concerned about the Earth. According to
Newton’s third law “For every action, there is an equal and opposite reaction”, the
extent to which we exploit the Earth’s resources; it will have an opposite reaction
in the form of natural disasters. Damage involves the destruction of ozone layer,
climate change, increase of population and other negative effects that have an
either direct or indirect impact upon population, business, and governmental
institutions. Organizations fall into an ambiguous situation: they not only
experience the impact but also determine the damage as every citizen, business
entity or public institutions have impact upon the environment, they produce
carbon footprint. Therefore, private and public organizations face the demand of
adopting cleaner or “Green” practices.
Studies show that there is a drastic extends in the problem toward the environment.
This resulted in the formation of the concept of “Green Marketing”. The idea of
green marketing has received a giant role in researchers; however, the subject of
the evolution, conceptualization, and achievable advantages of green marketing
stays a new and large subject of administration studies. As a response, businesses
worldwide have modified their conduct to higher tackle the new challenges,
incorporating specific factors of sustainability into their activities.
Green marketing is the marketing of merchandise that are presumed to be
environmentally safe. Green marketing contains of two words: Green and
Marketing; it is an eco-friendly idea to the want for quality, performance, cheap
pricing, and comfort without having a hazardous impact on the environment. Green
marketing contains a large vary of things to do beginning from product
modification and packing, it refers to promoting merchandise and offerings based
totally on environmental benefits; such a product may also be environmentally
friendly in itself or produced this way.
Global economic fluctuations, adjustments in the organization’s social duty are
pushing the organization to construct sustainability in the overall performance of
advertising and marketing and products. Traditional advertising and marketing no
longer suffices modern-day market issues. Cohesive marketing activities and
initiatives to strategic, tactical, and operational activities have a quintessential
affect of green marketing in organizational, environmental, and social contexts
additionally leads to commercial enterprise development, enhancement of the
natural ecosystem, and improved quality of life.
The desire of business companies to make rapid income led them to use false green
marketing claims; this resulted in deep distrust amongst the buyers which led them
to the loss in long-term loyalty of consumers. The efforts of the researchers
required in making a strong coverage to win back the self assurance and have
confidence of the buyers and reverse the hassle of backlash in green marketing.
Regarding this problem, Crane (2000) had proposed 4 strategies:
1. Passive Greening: Trying to handle the trouble in the environment due to the
strain from the customers, corporate, pressure group, or the media.
2. Muted Greening: Making enhancements in the merchandise to make it greener.
3. Niche Greening: Targeting the environmentally mindful individual clients and
position the merchandise as environmentally friendly alternatives.
4. Collaborative Greening: Having an experiment through becoming a member of
efforts wit6h others to handle environmental problems.
Ottman et al. (2006) had additionally advised that the entrepreneurs need to
additionally focus on communication as well as the transport of customer wishes in
the market for the success of green products supplied in the market. These policies
helped the entrepreneurs to recover their place in the market. The latest research
exhibit that the buyers who are environmentally worried individuals have not fallen
even though the observed error in claims of the green marketers. This indicates that
even even though these issues are in the market individuals are honestly concerned
about the environment. More emphasis desires to be placed on sustainability,
environmental responsibility, and company social responsibility, proving
marketing’s dedication to social change, and offering the framework for
transformational marketing, a effective device for altering people’s attitudes and
value systems with the goal of decreasing harmful environmental and social
impacts. Further researches are nonetheless going on regarding eco-friendly
products even to this day.
Concept of Green Marketing
The evolution of green marketing resulted in several definitions of green
marketing. Defining the meaning of green marketing a bit complicated because the
particular meaning contradict and intersect each other.
2. Holistic thinking (Mishra, Sharma, 2014; Papadas et al., 2017): This means that
green marketing can be treated as various elements, which includes consumption,
production, disposal and other activities of strategic, tactical or internal types.
3. S. Thapa, S. Verma (2014): The process of selling products based upon their
environmental benefits.
8. R.K. Ranjan, R.K. Kushwaha: All marketing activities that are taken by
companies in a way that has a positive effect upon environment.
1. Organic: The only products that can accurately claim to be organic are
agricultural products. This term is regulated by the United States Department
Of Agriculture (USDA) and all the organic products are required to meet the
specific guidelines to seek USDA Organic certification.
2. Ozone Friendly or safe: this term is usually used to describe a product or
packaging that does not harm the upper ozone layer, such as aerosol cans
which do not emit Chloro Fluoro Carbons (CFCs).
3. Recyclable: Products or package which can be collected separated or
otherwise recovered from the solid waste through an established recycling
program called as recyclable product.
4. Recycled: A product or package that is produced from recycled content. This
recycled content has been recovered or diverted from the solid waste, either
during the manufacturing process or after consumer use.
5. Refillable: A product or package with a system in place to provide collection
and return of the packaging for refill by consumers called as refillable.
6. Sustainable: This refers to the methods of farming, construction,
manufacturing and generating electricity in ways that don’t depend on
exhaustible resources, like coal or oil, and can be used infinitely.
7. Greenhouse Gases: A measurement of the effect of a process or action has
on climate in terms of terms of the amount of greenhouse gases it produce.
Greenhouse gasses are methane, water vapour, nitrous oxide and
fluorocarbons, are considered by many to directly contribute to global
climate change.
8. Carbon footprint: It is defined as “The amount of carbon dioxide or other
carbon compounds emitted into the atmosphere by the activities of an
individual, company, country, etc”.
9. Carbon Neutral: It is reducing energy and compensating the amount of
carbon dioxide a business or corporation generates through either obtaining
energy from renewable sources or off setting through measures like tree
planting or investing in wind farms, solar energy, etc.
10. Compostable: A product or packaging advertised as compostable must break
down into usable compost in a safe and timely manner in a composting
facility or in a home compost pile or device.
11. Degradable: A product or package that completely breaks down and it
returns to nature in a reasonably short period of time after consumer disposal
called as degradable product.
12. Normal: A standout amongst the most equivocal of all the green terms,
‘characteristic’ items doesn’t really have any ecological effect yet rather are
thought to be made of common materials or fixings instead of those that are
artificial. While an item showcased as ‘normal’ may sound better to the
customer. Consider: poison ivy, Bacillus anthracic and fuel are in fact
‘regular’, yet that doesn’t mean they are better for you or the nature.
Consumers tend to show how they choose to acquire green products as per societal
forces, peer pressure, not only that they are required to know about them in order
to associate and represent the society they prefer. This happens as consumers wish
to avoid negative out comes from the society not being aware of the green concept,
which has become so prominent in the society they live. Moreover, consumers are
pursuing more information sources on green products to make the society happy.
Furthermore, in a competitive market context where consumers are more rational,
Lane and Scott (2007) mentioned that consumers connect societal identification
with individual society member’s social knowledge structure. They further
proposed that identification and someone’s knowledge of being part of a group are
relatively making the society and individual become more tighten to each other.
Concerning knowledge of different brand like green products, Keller (2003)
mentioned that it is important to get an aggregate conception of different
dimensions of brand which consumers may be impacted.
Green Consumers
For consumer packaged goods purchases, women are usually the primary target
audience as they still do the bulk of today’s household shopping. Consumers are
conscious of environmental packing choices progressively and are shaping their
behavior as a consequence. A well-known example of this is with water bottles.
Many consumers have made the switch from buying single-use plastic water
bottles to using refillable water containers. The intensely slow decomposition rate
of plastic bottles leaves them to remain in litter oceans for years. As a consequence
of increased consumer awareness and consumer demand, sales of reusable water
bottles from environmentally friendly producers such as Sigg and Kleen Kanteen
have come onto the market. Consumers even demand hygienic, filtered water, and
firms, such as Brita and PŪR, producers of water filters, have seen a 22.2 percent
and 15.2 percent increase in sales during 2009, accordingly.
According to studies environment is the number one global concern for the
consumers, and urgency is growing. Consumers are therefore making more
informed choices over packaging and products; they are looking for environmental
information in labeling and are purchasing environmentally-sound products even if
they cost more. Food and beverage is a key catalyst here. The number one change
ambition for both health and environmental reasons is greater consumption of
environmentally-sound food and beverage products. Consumers now
overwhelmingly see themselves as being the most responsible for both the
environment and their own health, with little difference between the two (71% and
74% respectively), followed by government and politicians, while brands and
retailers feature much lower down.
To support brands with navigating this journey, the Tetra Pak Index 2019 reveals
six new segments of consumers, each with their own attitudes around both health
and the environment. Each group presents clear opportunities for targeted products
and messaging for F&B brands, in embracing the convergence of these topics:
Active ambassadors: they have high engagement in all aspects of health
and environment, they are willing to take action, and they challenge the
boundaries and influence others. They look to fact-based sources such as
scientists and academics, as well as NGOs for advice on the environment.
Planet friends: these individuals are willing to take action about the
environment with high engagement on most aspects of health, but they are
less inclined to challenge boundaries. Engaged and willing to take action
about the environment. High engagement also on most aspects of health,
especially for their peace of mind.
Health conscious: they are aware and engaged about the environment, but
prioritize health over the planet. Prepared to pay more and sacrifice
convenience for healthy products. Depend heavily on social media and other
online sources.
Laggards: their lack of knowledge and interest in all aspects of health and
the environment. Skeptical about technology and change. Look to their own
personal, real world networks, particularly towards friends and family.
Reduce packaging – Bring your own bags and avoid overly packaged
products. Also try buying in bulk to reduce the frequency of travel to save
fuels and gas. Reusable bags or reusing plastics bags helps in reducing
plastic wastes.
Choose cloth over paper – Instead of using lots of paper towels for
cleaning, use a rip up an old shirt or towel to clean also helps and it works
the same. Also, swap over to food wraps like beeswax; they are reusable and
reduce waste.
Use sustainably-sourced food – Choose organic food and certified foods,
plus use processed foods from companies that use certified sustainable palm
oil or none at all.
Cut down on household energy – Unplug all the appliances that aren’t in
use, wash all possible clothes on cold, and use a drying rack or clothesline to
air them out. You can also switch your light bulbs to energy saving ones.
Using energy saving light bulbs reduce the energy footprint.
Use zero-waste refill stores – Find your local refill store and take advantage
of all the goods it has to offer. Grab jars and pots and fill up on items such as
pasta, pulses, nuts, cereals, spices, hair and cleaning products, etc.
Eco-label products are the symbol that encourages the consumer to make the
purchasing decision to buy the eco label products and know about it (Rex and
Baumann, 2007); the environmental friendly products are being identified through
eco-label products in the market (D’Souza et al, 2006). There is a need to fill the
gap between the consumer and the seller about the eco-label products that can urge
them to use the eco-label products that will provide satisfaction and meet their
desires adequately along with this it will be effective to contribute towards the
environmental safety measures. The research study that eco-label is having direct
relation and influence on the information of green marketing and consumers
behavior towards purchasing (Nik Abdul Rashid’s, 2009). There are different
studies are being done in order to develop the association between the
environmental labeling and behavior of the consumers to purchase the eco-friendly
products (D’Souza, 2005; Nik Abdul Rashid, 2009). It is evident there is a small
information that impact upon the label information that consumers have to make
the purchasing decision about the environmental friendly product (D’Souza, 2005).
It is suggested by the researcher that eco labels are the tool that can increase the
awareness about the environmental friendly products and help in making the
decision or purchase. In the market; there is a little potion of the eco-label products
for the customers to make purchases and safe the environment (Nik Abdul Rashid,
2009). It is rather important prior to the decision making of the individual to urge
eco products which they should be aware about it. There is a need for the
consumers to use different platform of communication to educate the consumers
and make every effort that they should focus upon the eco-label products while
making any purchasing decision.
Brands are the main source that can bring the change in the behaviour in the green
consumption (Pickett-Baker and Ozaki, 2008). It is argued that efficient marketing
can bring different in the mind of individual towards the green products but the
concern of the consumers are that they have to pay a certain cost which is higher
than the other products and consume in a different pattern (Ottman, 1998). Green
marketing is associated with the welfare of the environment and attached with the
emotional benefits of the consumers (Hartmann et al, 2005). It is argued that brand
characteristics are required to be communicated in order to provide the sustainable
environment along with the product that are not effective for the business purpose
(Pickett et al, 1995). Green product positioning is the highly effective feature to
make is successful and their marketing strategies as well (Coddington, 1993). If it
is considered as an example; that an environmental friendly car is being introduced
it will be having competitive edge if the carbon emission is lower than the other
rivals. It is suggested from the study that consumer has positive response towards
the green product that are eco-label (Rahbar and Wahid, 2011). The study of USA
and Germany suggested that consumers have positive response towards the green
label products like body shop and green energy.
Consumers use their cognitive ability to rationalize the green label products and its
features (Wustenhagen and Bilharz, 2006) it is suggested that in USA and
Germany consumers are having highly positive response towards the green
products that are shown from the Body shop and Green Energy stores
(Wustenhagen and Bilharz, 2006). There is certain functional positioning strategies
drawback such as; it can be evidently copied, the rationale consumers are having
difficulty to adopt the different brand rather than the green label products (Aaker,
1996). It is also suggested that consumers have negative perception about the green
products and they do not consider their performance is adequate as compare to
other brands of the market (Fuller, 1999). There is a need to encourage the
consumers to change their purchasing behaviour towards the green products and
get the maximum benefit from it (Hartmann et al, 2005).
In addition, firms may provide training for their employees about green issues;
hence, this will help the employees to understand the green issues and provides the
rights green advertisements. Past studies indicated that the training effect positively
on the performance of employees (Obaid & Eneizan, 2016a, 2016b ;Sharif et al,
2018; Alsakarneh et al, 2018a, 2018b)
Perception of Green Premium Price: Green Premium is the gap between the
classic and ecofriendly products that are having high profitability for the retailers,
it is suggested that about 77% of the consumers are ready to pay the premium to
the retailers (European Commission, 2013). The market share of the green products
constitutes about 4% of the market in the food sector (Chkanikova et al, 2013). The
majority of the consumers are not considering the green product and they perceives
as inadequate (Luchs et al, 2010); environmental features (Gershoff and Frels,
2015); price should be effective that can reflect the sustainability (Meise et al,
2014). Many of the consumers do not undertake the environmental perspectives
that are associated with the products are based on truth. Price premium suggested
that price of the environmental friendly is having high price than the other
products. Price is considered as the marketing tool that is based upon the financial
features and suggests the quality of the products. It is a general perception that
consumers thinks those products are having high prices are having high quality
which is associated with the quality with the price value (Chekima et al, 2016). It is
also suggested that premium products are having good quality because they are
having high prices. Once the price premium are mixed with the consumer’s
purchase intention and attitude it associated with the consumer’s desire to pay
against their desired products and get satisfaction (Zhang and Kim, 2013).
Discussion
The research of this paper aims to study how the concept of green marketing and
green product development and how it influences the purchasing approach of
consumers. This research paper is important because the earth is now faced with
environmental devastation and pollution levels are getting worse day by day,
which will eventually lead to the continued deterioration of human life. Green
marketing is a strategy that addresses the concern of promoting and preserving the
natural environment which can benefit the firms, consumers and environment
while the green product is developed. Most firms have started to practice the
concept of green marketing and green product development in the day to day
business operations to produce eco-friendly products in order to satisfy the
consumers’ wants and needs. Beyond this, there is a shift in consumers’ behavior
towards a greener lifestyle; it is known as the “green consumer”. While the firm
fulfills the demand of consumers, it caused the production of the firm to increase.
The eco-centric image of the firm makes a profound impression of in consumers’
cognition; hence the firm can get the great satisfaction and trust from consumers
easily. In results, the firm which behaves in an environmentally responsible
manner is likely to achieve long-term profitability and environmental
sustainability.
As the environmental issues have worsened, most international firms have started
to use the marketing mix concept in green marketing which can achieve the firm’s
mission and vision in short periods. The firms have to identify the customers’
environmental needs and develop green products which exceed the quality
expectations of customers. Moreover, firms have to ensure that the value of the
green product on the aspect of performance, design, and visual appeal must exceed
the price of the green product. Most firms used green advertisement as a
promotional strategy which can educate consumers about the way of protecting the
environment and it also can establish the eco-centric image of the firm.
Additionally, the location of the stores must be convenient for the consumers to
access. The firms have to reduce the environmental impacts while distributing and
transporting the raw materials or finished goods. Eco-labels has been a particularly
important issue within green product development, it often provides customers
with a reliable indication of a product’s social and ecological credentials. The more
consumers willing to pay for a green product, the more firms are able to observe
the changes in demands and behavior of the consumers.
However, there are firms that implement green marketing and green product
developments inappropriately and it leads to the occurrence of problems that may
burden the firm in the future. For example, the low perceived credibility of
ecological claims in green advertisement may cause the consumers to have
negative attitude towards the firm when they go to purchase a similar product in
the future – if they are not deterred completely in the first instance. Therefore, the
marketers should structure their green marketing strategy with great care and
precision before they implement the product in to their firm. The goal of strategic
planning can keep consumers retention; as well as minimizing environmental
impacts in order to achieve long term profitability and growth.
Conclusion
In conclusion as the environmental issues continue to rise and affect the human
activities and society we now regard them with much more concern. Most firms
and organizations have started using different sustainable development framework
which is known as green marketing and most of the organizations have
acknowledged green marketing and green products which are environmentally
friendly. It can also be used to gain profits in the market by the marketing
managers. Green marketing can also be used to preserve the environment while
satisfying the needs of the customers. As a result many companies and
organization used green marketing to increase their profits and to increase their
overall competitive advantage as many people are presently very concerned about
the environmental issues. But as the sales and profit increase there are many fake
products that claimed to be environmentally friendly but in truth used the labels to
make profits from it and still in the process of harming the environment.
Consumers want to recognize themselves with companies that claimed to be green
and are willing to pay more for a greener lifestyle. Companies that carry out green
marketing in the right place and on the right people may support the company to
achieve their competitive advantage.
BIBLIOGRAPHY
www.wikipedia.com
www.googlescholar.com
www.globaljournals.org
www.journalofbusiness.org