Pro Forma for Approval of Project Synopsis 2011-2012 Semester-IVth NAME ROLL NO PROJECT TITLE SUBJECT AREA : PALLAVI

RAJAIN : 10001532035 : Green Marketing: The Road Ahead : MARKETING

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CONTENTS

Rationale for the study Review of Literature Objectives of the study Research Methodology Hypothesis Sampling Design References

RATIONALE FOR THE STUDY

The concern for the environment has increased significantly during the past decades and at the same time peoples values and attitudes towards nature have changed substantially. The society as a whole is more ready and willing than before to respond to appeals based on green issues. Emerging markets for environmental products, services and technologies provide promising opportunities for green marketing. However, as compared to the Western works the studies conducted on green marketing in India are relatively low. Therefore in order to fill the gaps it is proposed to study the opportunities as well as the challenges both from the customers viewpoint as well as from the point of view of the companies promoting green products. The study will analyse the green marketing strategies as well as green marketing mix using the secondary data from various companies. This study will help to provide an insight about the consumer awareness regarding ecofriendly products. Overall, such a study is important to understand the behaviour of consumers and its implications for creating opportunities for green marketing.

CONCEPTUALISATION Green (environmental) marketing A majority of people believe that green (ecological) marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. While these terms are green marketing claims, in general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. Thus, green marketing incorporates a broad range of activities, including product modification, changes of the production process, packaging changes, as well as modifying advertising. Green marketing came into prominence in the late 1980s and early 1990s. The American Marketing Association (short: AMA) held the first workshop on Ecological Marketing in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled Ecological Marketing. According to Dainora Grundey and Rodica Milena Zaharia, Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal harmful impact on the natural environment.

DEFINITIONS Pride and Ferrell (1993) Green marketing, also alternatively known as environmental marketing and sustainable marketing, refers to an organizations efforts at designing, promoting, pricing and distributing products that will not harm the environment. Polonsky (1994) defines green marketing as all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. GREEN CODE G eneralise with care, Consumer behavior will not necessarily be consistent across different product types, and particular market segments may respond to certain issues on the green agenda but not others. R emember, the validity of a piece of market research is not related to the degree to which it supports your preferred option. E xplore the context from which market research data comes, be clear on the nature of the sample used, the questions asked, the way in which responses were recorded and the time and place from which the responses come. E nsure that where market research is crossing international borderlines, that the terminology and interpretation remains consistent. Terms like environment, green and conservation do not always translate precisely between languages. N eutrality is important. Ensure that when you pose questions to consumers, that they can make any response without being made to feel guilty or uncomfortable, and ensure that your own preconceptions about the green agenda (such as an assumption that green products will cost extra) are not encoded within the questions. The Green Marketing Mix A model of a green marketing-mix should, of course, contain all 4Ps: Product: A producer should offer ecological products which not only must not contaminate the environment but should protect it and even liquidate existing environmental damages. Price: Prices for such products may be a little higher than conventional alternatives. Place: A distribution logistics is of crucial importance; main focus is on ecological packaging. Marketing local and seasonal products e.g. vegetables from regional farms is easier to be marketed green than products imported.

Promotion: A communication with the market should put stress on environmental aspects, for example that the company is ISO 14000 certified. This may be publicized to improve a firms image. Furthermore, the fact that a company spends expenditures on environmental protection should be advertised. Third, sponsoring the natural environment is also very important. And last but not least, ecological products will probably require special sales promotions.

Some examples of companies using green marketing include Suzlon Energy, ITC Limited, Tata Metaliks Limited (TML), Tamil Nadu Newsprint and Papers Limited (TNPL) and Wipro Technologies. In their book of Sustainability Marketing Belz and Peattie go one step further in terms of not just marketing but operating green? They transformed the 4 P's into the 4 C's. The four C's customer solutions, customer cost, communication and convenience are taking the point of view of the customer (not the producer).

Customer solutions: These solutions go beyond selling physical products and present solutions to customer's problems. They imply knowing customers and their needs well and offering products and services that satisfy customer needs and that take into account social as well as environmental aspects. Customer Cost: Customer Cost does not only include the financial price a buyer has to pay for a product or a service, it also considers the psychological, social and environmental costs of obtaining, using and disposing of a product. Communication: Green communication goes beyond promotion, which is a form of persuasion and a one-way communication from seller to buyer. Communication is a process of interactive dialogue within which it is essential to build trust and credibility. Convenience: Means that customer wants to use products and services that meet their needs and that are easy and convenient to access and use.

Eco Labels An individual's belief that an environmental claim lacks honesty can have a negative effect on attitude toward a brand. If, on the other side, the consumer grants credibility to the claim, the individual will behave more respectfully toward the environment. The problem in extending that credibility to a brand is that consumers interested in ecological products generally are sceptical of commercial advertisements. This scepticism is due to various factors such as lack of language, the absence of scientific knowledge necessary to interpret advertising meaning, and, in particular, the falsehoods and exaggeration of some advertising techniques. To resolve this problem, independent organizations may choose to guarantee messages on the environmental benefits of brands with environmental labelling systems sponsored by independent organizations. This practice tries to diminish perceived biases in environmental information by promoting standardization of the information with the aim of improving confidence in the evaluation of environmental benefits of productsall of which should positively affect the purchase intention.

REVIEW OF LITERATURE
Xu, Susanna Xin, Walker, Helen, Nairn, Agnes and Johnsen, Thomas (2007) in their paper A Network Approach to Understanding Green Buying: A Literature Review produce new insights by taking a network view of two interlinked questions. On the one hand, what are the drivers that make people buy green and the barriers which deter them? And on the other, what are the factors which help businesses deliver greener goods and services and what are the pressures which hinder them from doing so? The paper hopes to make three specific contributions. First, to provide a meta-analysis of current academic debate around buying green through a systematic literature review. Second to present a combined analysis of the consumer behaviour and strategy literatures: an approach that the authors have not identified in previous research on environmental issues. Third, to add a new element to understanding buying green by viewing the issues through a network-change lens. The paper is structured as follows. First it explains why a network view of the buying green issue may be fruitful. In the next section it describes the methodology. After presenting an analysis of the data a network picture is established. In the end the authors suggest ways in which this network approach may help governments and businesses alike understand the dynamics and deterrents of green purchase and supply behaviour. Lee, Kaman (2008), in his paper Opportunities for Green Marketing: Young Consumers tries to identify important factors that affect Hong Kong adolescent consumers green purchasing behaviour. A total of 6,010 (2,975 males and 3,035 females) adolescents in Hong Kong were recruited through multi-staged random sampling. They were surveyed on their green purchasing behaviour, environmental attitude, and environmental concern, perceived seriousness of environmental problems, perceived environmental responsibility, perceived effectiveness of environmental behaviour, social influence and concern for self-image in environmental protection. Multiple regression analysis showed that social influence was the top predictor of Hong Kong adolescents green purchasing behaviour, followed by environmental concern as the second, concern for self-image in environmental protection as the third, and perceived environmental responsibility as the fourth top predictor. Thus this paper serves as a pioneer study to identify important factors in affecting young consumers green purchasing behaviour in the Hong Kong context. It offers practical guidelines to international green marketers planning to target the Asian markets. Singh, Surinder Pal (2008) in his paper The Green Revolution In Marketing Is It Worth? attempts 1) to introduce the terms and concepts of green marketing; 2) briefly discuss why going green is important; 3) examine some of the reason that organizations are adopting a green marketing philosophy; and 4) mention some of the problems with green marketing. Also, in this paper the author gives the following viewpoints in a nutshell: Green product development is more than just creating products that are environmentally friendly; it is about systemic change in society that includes consumers, producers and the general commercial structure within which they negotiate. By widening & deepening the meaning of green, relevant actors will have an economic incentive to pursue green product development. Harnessing the market forces that favour green product development will lead to mainstream green.

Mishra, Pavan and Sharma, Payal (2010), in their paper Green Marketing in India: Emerging Opportunities and Challenges, discuss various aspects of green marketing like its opportunities, challenges, present trends and future prospects. The growing awareness among the consumers all over the world regarding protection of the environment has created new vistas of opportunity for green marketing and products. Various firms are adopting green marketing for reasons like government pressure, competitive pressure and social responsibility. But contrary to these opportunities green marketing also poses certain challenges such as need for standardisation, patience and perseverance. Next the paper discusses certain cases related to the topic i.e. green fuel alternatives, green stadium, green machines and green city. Lastly, the paper presents certain principles to be followed in future particularly those relating to consumer value positioning and consumer knowledge. The paper concludes that this is the right time to implement green marketing globally and also to minimize the negative effects on the environment. Zaman, Atiq Uz, Miliutenko, Sofiia and Nagapetan, Veranika (2010) in their paper Green Marketing or Green Wash? A Comparative Study of Consumers Behaviour on Selected Eco and Fair Trade Labelling in Sweden aimed to compare the efficiency of different label initiatives based on a survey among consumers of eco-products. The methodology used in the study was literature review and a case study of selected eco-labels used in the Swedish market. Different label initiatives are available in the present business market as a provider of white goods, however, the basic principles of the label initiative are ignored in most of the business practices. The study compared eight selected eco-brands which were used on the Swedish market. Comparison was based on environmental justice and ecosystem services perspectives. The study showed that most of the eco brands do not comply with environmental justice and ecosystem services in their label policy initiatives. Moreover, there is a gap between policy and practices. Questionnaire survey showed that environment is an important criterion for consumers while purchasing consumer products. Eco-label is an important tool; however, this tool is not communicating to consumers to its expected role. Papadopoulos, Ioannis, Karagouni, Glykeria, Trigkas, Marios and Platogianni, Evanthia (2010) in their paper Green Marketing: The Case Of Greece In Certified And Sustainable Managed Timber Products study the possibility of promoting certified timber coming from sustainable managed forests, in order to support Greek enterprises and the institutions of the Greek timber sector involved to apply effective green marketing methods and policies. Based on a prototype questionnaire, specifically structured for the aim of the research, 55 responses were collected from Greek timber enterprises on April 2009. The questionnaires were processed and analysed with the statistical program SPSS of ver17.0, using descriptive statistics and correlation analysis. The main purpose was the investigation of knowledge, use and promotion of certified timber that emanates from forests under sustainable management, planning thus the green marketing. The Greek enterprises of the timber sector expressed a great interest in the protection of forests all over the world, ranging from illegal loggings to their rational management. At the same time, in their overwhelming majority, they strongly support the certification of the sustainable management of Greek forests in order to buy certified timber products. Finally, the paper discusses reflections and forecasts on the growth of this new market of timber.

Vermillion, Leslie J. and Peart, Justin (2010) in their paper Green Marketing: Making Sense of the Situation review some of the literature on green marketing. The paper presents information on various strands of the green marketing arena. It discusses reports on some of the many unresolved issues that seem to make the marketing of green products less successful despite the contention that the world is becoming more concerned about the environment and man's impact on it. This paper reviews some of the literature that generally addresses market place success and will describe marketing alternatives that may enhance firms' ability to both protect the environment and enhance profitability. Further, the paper discusses four interrelated issues of importance to the green marketing arena, expense of green products, a concern about the perceived quality level of many green products, perceived benefits and deceptive green advertising. The paper develops a set of propositions on benefit segmentation and persuasive communication which will guide the future research in this area. Polonsky, Michael Jay (2011) in his paper Transformative Green Marketing: Impediments And Opportunities discusses why consumers, firms and governments have had difficulties in embracing environmental issues, thus impeding real transformative green marketing from occurring. To address the difficulties three proposed actions need to be undertaken: (1) Marketers need to look for new ways of calculating and communicating value that integrates environmental value, thereby moving away from financial measures which have no real environmental meaning. (2) Change the discourse regarding the environment, highlighting the importance of action and inaction, which needs to be based on increased education about the humanenvironment interface. (3) Marketing needs to refocus its emphasis on want satisfaction, shifting away from the acquisition of goods, thereby enhancing how marketers create value. Making these changes will allow marketers to operationalize transformative green marketing so the human condition and the natural system that humans operate within are both improved and bring about transformative green marketing. Unfortunately, understanding consumers' and marketers' roles in the system and responding by changing consumption patterns is not something that consumers, firms or even governments are presently doing. Rahbar, Ehlam and Wahid, Abdul Nabsiah (2011) in their paper Investigation of Green Marketing Tools Effect on Consumers Purchase Behaviour hypothesized that: H1. A significant and positive relationship exists between green marketing tools and customers actual purchase behavior.H1a. A significant and positive relationship exists between ecolabel and customers actual purchase behaviour H1b. A significant and positive relationship exists between eco-brand and customers actual purchase behaviour. The survey was distributed in some main shopping centres in Penang where people purchase their daily necessities from. A total 250 individuals in Penang participated in the present study. Factor analysis was utilized on four study variables to provide information included in several variables into a small number of factors. Thus, the basic structure of the domain could be discovered and facilitated the interpretation of underlying domains. In this study, the relationship between trust in eco-label, eco-brand and purchase behaviour are found to be significant. This means that the respondents trust in eco-label and eco-brand has a positive effect on consumers actual purchase behaviour. Without consumers confidence and trust of eco-label and eco-brand, it is very difficult to convince them to make purchase decisions.

Fan, Haofu and Zeng, Lin (2011) in their paper Implementation of Green Marketing Strategy in China A Study of the Green Food Industry explore factors which influence Chinese consumers behaviour, analyse marketing strategies of company we interviewed according to four Ps of conventional marketing mix, and finally put forward their own opinions about how green food companies use four Ps of conventional marketing mix to implement green marketing strategy in green food industry in China. This paper studies green marketing of green food industry in China from two aspects, consumers and company. Quantitative and qualitative data are simultaneously from consumers and company though questionnaires and interviews survey respectively. Based on the analysis on Chinese consumers and the empirical materials collected from interview with a green food company some implications were drawn on how to implement green marketing strategy in the industry of green food in China. As the factors which influence Chinese consumers behaviour and characteristics between green agricultural products and green processed food are different, green marketing strategies of the two kinds of products should be implemented by different ways. For green agricultural products, the selling place of green food has high consideration propriety. While for green processed food it is not so important.

From the various research papers mentioned above several important facts and theories were formulated regarding green marketing. First paper suggested that network approach may help governments and businesses alike understand the dynamics and deterrents of green purchase and supply behaviour. Also that Green product development is more than just creating products that are environmentally friendly; it is about systemic change in society that includes consumers, producers and the general commercial structure within which they negotiate. The next study showed that the key to successful green marketing among adolescents lies in four factors: (1) peer network (social influence); (2) emotional appeal (environmental concern); (3) image branding (concern for self-image in environmental protection); and (4) behavioural efficacy (perceived effectiveness of environmental behaviour). Another study gave that factors affecting the green consumer include the lack of information on products and issues, emotional resonance, apathy and price sensitivity. Study related to eco-labelling suggested that eco-label is an important tool; the relationship between trust in eco-label, eco-brand and purchase behaviour are found to be significant. This means that the respondents trust in eco-label and eco-brand has a positive effect on consumers actual purchase behaviour. However, this tool is not communicating to consumers to its expected role. Lastly, contrary to various opportunities presented through majority of the papers, one paper proposed three actions that need to be undertaken to address the difficulties faced by green marketing: (1) Marketers need to look for new ways of calculating and communicating value that integrates environmental value, thereby moving away from financial measures which have no real environmental meaning. (2) Change the discourse regarding the environment, highlighting the importance of action and inaction, which needs to be based on increased education about the humanenvironment interface. (3) Marketing needs to refocus its emphasis on want satisfaction, shifting away from the acquisition of goods, thereby enhancing how marketers create value.

OBJECTIVES OF THE STUDY:

1. 2. 3. 4. 5. 6. To study the opportunities and challenges for green marketing in Indian context. To check the awareness of people about eco-friendly products. To analyse how organizations use green marketing as a competitive strategy. To understand the green marketing mix. To know the attitude of people towards green products. To study what motivates customers to buy and use green products.

RESEARCH METHODOLOGY
RESEARCH DESIGN: Descriptive and exploratory research design will be used in this research. Descriptive research includes survey and fact finding inquiries of different kinds. The major purpose of descriptive research is description of the state of the affairs, as it exists at present. Exploratory research studies are also termed as formative research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view.

HYPOTHESIS:
It is tentative insight into the natural world, a concept that is not yet verified but that if true would explain certain facts or phenomena. In view of information collected by reviewing the existing literature, two hypotheses have been developed. The hypotheses to be tested in this study are: H1: There are sufficient opportunities for green marketing in the NCR. H2: The people in the NCR are aware of green products.

SAMPLING DESIGN:
a. SAMPLING UNIVERSE NCR b. SAMPLING UNIT- Customer c. SAMPLE SIZE -200 d. SAMPLING TECHNIQUE -Simple Random Sampling

SOURCES OF DATA COLLECTION There are two types of data which will be collected: 1) Primary Data Primary data will be collected mainly through structured questionnaire .The questions will be designed in an easily understandable manner that the respondents may not have any difficulty in answering them. 2) Secondary Data Secondary data related to strategies of the companies will be obtained from their official websites and other authentic sources like books, and online magazines and journals.

LIMITATIONS OF THE STUDY: 1) As the topic of research is wide, so time is the main constraint in the research. 2) Target audience is also another limitation as the people in NCR may have less awareness about green marketing. 3) Some respondents may not be interested in giving answer and they may appear to be busy and bored at the very sound of question. 4) The research is confined to a certain parts only and does not necessarily show a pattern applicable to the whole country. 5) In a rapidly changing environment, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. 6) Money is another of the major constraints of any research activity and this is also attributed with this research.

REFERENCES
Fan H & Zeng L(2011) Implementation of Green Marketing Strategy in China A Study of the Green Food Industry pp. 1-87 hig.divaportal.org/smash/get/diva2:422184/FULLTEXT01 Lee K (2008) Opportunities for green marketing: young customers Marketing Intelligence and Planning,Vol.26, No.6, pp. 573-586 www.emeraldinsight.com/02634503.htm Mishra P and Sharma P (2010) GREEN MARKETING IN INDIA: EMERGING OPPORTUNITIES AND CHALLENGES Journal of Engineering, Science and Management Education, Vol. 3, pp. 9-14 www.nitttrbhopal.org/.../Pavan%20%20Mishra%20and%20Payal%Sharma Papadopoulos I, Karagouni G, Trigkas M and Platogianni E (2010)Green Marketing: The case of Greece in certified and sustainable managed timber products EuroMed Journal of Business, Vol. 5, No 2, pp. 1-23 www.emeraldinsight.com/journals.htm?articleid=1871230 Polonsky MJ (2011) Transformative green marketing: Impediments and opportunities Journal of Business Research,64, pp. 1311-1319 www.sciencedirect.com/science/article/pii/S0148296311000300 Rahbar E and Wahid NA (2011) Investigation of green marketing tools effect on consumers purchase behaviour BUSINESS STRATEGY SERIES VOL. 12, NO. 2, pp. 73-83 Singh SP (2008) The Green Revolution In Marketing Is It Worth? 11th Annual Convention of Strategic Management Forum (SMFI) pp. 2-9 www.iitk.ac.in/.../Changing%20Playfield-06-Surinder%20Pal%20Singh Xu SX, Walker H, Nairn A and Johnsen T(2007) A Network Approach to Understanding Green Buying: A Literature Review pp. 1-18 impgroup.org/uploads/papers/5967.pdf Zaman AU, Miliutenko S and Nagapetan V (2010) Green marketing or green wash? A comparative study of consumers behaviour on selected Eco and Fair trade labelling in Sweden Journal of Ecology and the Natural Environment, Vol. 2(6), pp. 104-111 http://www.academicjournals.org/jene en.wikipedia.org/wiki/Green_marketing Kothari C.R. (2004), Research Methodology Methods and Techniques, Second edition, Delhi, New Age International Publication