Green marketing with example champagne

1. GREEN MARKETING

2. WHAT IS GREEN MARKETING?
Greenmarketing is the
marketing of products
that are presumed to be
environmentally safe.

3. A SIMPLE DEFINTION
In simple terms it refers to the process of selling products
and/or services based on their environmental benefits.
Such a product may be environmentally friendly
in itself or produced and/ or packaged in this
way.

4. THE AMERICAN MARKETING
ASSOCIATION (AMA) DEFINITION
A 3 WAY DEFINTION:
 (retailing definition) The marketing of products
 that are presumed to be environmentally safe.
 (social marketing definition) The development and
 marketing of products designed to minimize
 negative effects on the physical environment or to
 improve its quality.
 (environment definition) The efforts by
 organizations to produce, promote, package, and
 reclaim products in a manner that is sensitive or
 responsive to ecological concerns

5. ADVANTAGES
 Mutual benefit
 A competitive edge
Rising green demands of customers
Higher profit margin

6. Popularity and effectiveness
Ongoing debate
The popularity of such marketing approach and its
effectiveness is hotly debated. Supporters claim that
environmental appeals are actually growing in number–
the Energy Star label, for example, now appears on 11,000
different companies models in 38 product categories,
from washing machines and light bulbs to skyscrapers and
homes. However, despite the growth in the number of green
products, green marketing is on the decline as the primary
sales pitch for products

7. Confusion

One challenge green marketers – old and new – are likely to face
products and messages become more common is confusion in the
marketplace. "Consumers do not really understand a lot about these
and there's a lot of confusion out there," says Jacquelyn Ottman ( founder
of J.Ottman Consulting and author of "Green Marketing: Opportunity for
Innovation.") Marketers sometimes take advantage of this confusion, and
purposely make false or exaggerated "green" claims. Critics refer to this
practice as "green washing".

8. Life-cycle assessment
 During the late 1980s, new instruments such as life-cycle assessment (LCA) were
invented which allowed ecological considerations to be introduced into marketing
decisions.
 The life cycle assessment model seeks to identify the main types of environmental
impact throughout the life cycle of a product. LCA was developed according to
ISO 14040. The main goal of the LCA is to define the energy and environmental
profile of the finished products. The reasons to use LCA arose from the need to
have a precise process accounting and to highlight potential improvements that
could be used in order to increase the environmental, energy and economic
efficiency and overall effectiveness of the processes. In addition, the purpose was
to quantify the environmental advantages deriving from the use of recycled raw
material.

9. Example for LCA
 CA is used for example in the building sector. Buildings today
account for the 40% of the world’s energy use. The resulting
carbon emissions are substantially higher than those of the
transportation sector. New buildings using more energy than
necessary are being built every day, and millions of today's
inefficient buildings will remain standing until at least 2050. It’s
therefore necessary to start reducing energy use in new and
existing buildings in order to reduce the planet's energy-related
carbon footprint. Growing interest, space, and attention in the
architecture sector are directed to environmental issues
according to the principles of green building. Mineral, vegetable,
or animal materials such as perlite, vermiculite, rock wool, glass
wool, cork, plant fibers (cotton, flax, hemp, coconut), wood fiber,
cellulose, and sheep's wool can be used for the production of
insulation panels

10. Cases
Phillips's "Marathon" CFL lightbulb
Philips Lighting's first shot at marketing a standalone compact
fluorescent light (CFL) bulb was Earth Light, at $15 each versus
75 cents for incandescent bulbs. The product had difficulty
climbing out of its deep green niche. The company re-launched
the product as "Marathon," underscoring its new "super long
life" positioning and promise of saving $26 in energy costs over
its five-year lifetime. Finally, with the U.S. EPA's Energy Star label
to add credibility as well as new sensitivity to rising utility costs
and electricity shortages, sales climbed 12 percent in an
otherwise flat market

11.  Car sharing services
 Car-sharing services address the longer-term solutions to consumer needs for
and fewer traffic tie-ups and parking nightmares, to complement the environmental benefit of
more open space and reduction of greenhouse gases . They may be thought of as a "time-
sharing" system for cars. Consumers who drive less than 7,500 miles a year and do not need a
car for work can save thousands of dollars annually by joining one of the many services
springing up, including Zipcar (East Coast), I-GO Car (Chicago), and Hour Car (Twin Cities)
 Electronics sector
 The consumer electronics sector provides room for using green marketing to attract new
customers. One example of this is HP's promise to cut its global energy use 20 percent by the
year 2010. To accomplish this reduction below 2005 levels, The Hewlett-Packard
Company announced plans to deliver energy-efficient products and services and institute
energy-efficient operating practices in its facilities worldwide.

12.  Products and services
 Now companies are offering more eco-friendly alternatives for their customers. Recycled products
example, are one of the most popular alternatives that can benefit the environment. These benefits
include sustainable forestry, clean air, energy efficiency, water conservation, and a healthy office.
example, is the E-commerce business and office supply company Shoplet which offers a web tool
allows you to replace similar items in your shopping cart with greener products
 Introduction of CNG in Delhi
 New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of
a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public
transport systems to curb pollution.

13.  Macdonald’s have stopped
packaging their hamburgers etc in
polystyrene containers and now
use cardboards which comes from
a renewable resource and is
biodegradable or recyclable

14. Tata Consultancy Services
 TCS has a globally recognized
Sustainability practice and has
already topped the Newsweek’s
top World’s Greenest Company
title. It also has a global green
score of 80.4% and this has
mainly happened due their
initiative of creating technology
for agricultural and community
benefits.

15. Bank of America
 Bank of America is proving that eco-friendly
operations can coexist with business
growth. According to their corporate website,
the company reduced paper use by 32% from
2000-2005, despite a 24% growth in their
customer base! Bank of America also runs an
internal recycling program that recycles 30,000
tons of paper each year, good for saving roughly
200,000 trees for each year of the program’s
operation. As if that weren’t enough, the
company also offers employees a $3,000 cash
back reward for buying hybrid vehicles.

16. Starbucks
 Starbucks has green advocates smiling about
its “bean-to-cup” approach, which stresses top
efficiency at each link of its global supply
chain. By all measures the program appears to
be a great success, with the company’s
decision to use coffee cup sleeves made of
recycled paper saving roughly 78,000 trees
per year since 2006. Starbucks has
also partnered up with many environmental
organizations, from Conservation International
to the Earthwatch Institute, in efforts to do
right by the communities it operates in.

17. Wal-Mart
 Possibly the most hated name in the entire
green movement, Wal-Mart is now
positioned to make all but the most
dogmatic of its detractors eat their words.
According to Sustainablog , Wal-Mart has
launched an ambitious long-term plan to
eventually power each and every one its
stores using 100% renewable energy
sources. According to the company’s
executives, Wal-Mart is committed to using
its waste-eliminating corporate philosophy
to make its own operations more eco-
friendly than ever.

18. Coca-Cola
 Coca-Cola Goes Green with Environmentally
Friendly Bottles
 They’re only available in Argentina at the
moment, but any success will surely spread the
concept of Green Coke to the global marketplace.
Marketed as Coca-Cola Life, the plastic bottles are
made from 30 percent plant-based plastic and
they are fully recyclable. With its 108 calories per
600 ml bottle, the drink itself sits somewhere
between Diet Coke (0 calories) and classic Coke
(250 calories) thanks to its partial use of the
sweetener stevia alongside sugar.

19. What an Idea Sirji!
 IDEA Cellular’s new ad campaign for Green
planet IDEA Brand Ambassador Abhishek
Bachchan , playing the role of an agonized
‘Tree’ this time, strikes the idea of using
mobile phone to save paper, and therefore,
the greenery around him
 IDEA’s new campaign will be extensively
seen across TV, Print, Digital and Outdoor
media space during the next few months.
IDEA plans to launch a range of Value
Added Services which will help customers
access more information and utility services
on their mobile phones, thus reducing
dependency on paper usage.


20. Benefits of Green Marketing
 Companies that develop new and improved products and services with
environment inputs in mind give themselves access to new markets, increase
their profit sustainability, and enjoy a competitive advantage over the
companies which are not concerned for the environment.
STRATEGIES
• Marketing Audit (including internal and
external situation analysis).
• Develop a marketing plan outlining strategies
with regard to 4 P's.
• Implement marketing strategies.
• Plan results evaluation.

21. CHALLENGES AHEAD
 • Green products require renewable and recyclable material,
which is costly
 • Requires a technology, which requires huge investment in R
& D
 • Water treatment technology, which is too costly
 • Majority of the people are not aware of green products and
their uses.
 • Majority of the consumers are not willing to pay a premium
for green products.

22. CONCLUSION
 • Green marketing should not neglect the economic aspect of marketing.
 • Green marketing is still in its infancy and a lot of research is to be done on
green marketing to fully explore its potential.
SUGGESTIONS
 • Improve awareness about green products and there effectiveness.
 • Green products should be priced according to it’s quality.
 • There should not be more price difference between standard product and
green product.
 • Green product’s quality should be better than standard products.

23. DANKE