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Prof. Vijay Tandon
Director - PGDM & International Programs
Universal Business School
Subject - Green Marketing
UBS - India’s first green business school which is endorsed by 60 CEO’s.
UBS is led by Global CEO’s - “By the Industry for the Industry”
Ethics Experiential
learning
Environme
nt
About UBS (UBS at a glance)
UBS follows 3E Model
Strategic partnerships with Foreign
Institutions
UBS Ranking (Accolades)
 Truly Global B-school in India (Times B-school)
 Top 4 B-schools - Pride of Mumbai (Times B-school)
 Most Innovative B-school in Mumbai (India today & HRD)
 2nd Best Faculty, West zone emerging B-school (Times of India)
 Top 5 Green education Institutes (India today)
 1st college with best Industry exposure (Students choice, College search)
 Most upcoming B-school in India(ASSOCHAM & HRD Ministry)
 5 star Universities (India today)
Accreditations - Quality Assurance (Prep)
National Board of Accreditation
Association to advance collegiate Schools of Business
Experiential learning - Learning by doing
Most unique learning model at UBS
Green Marketing…
(How is it different……)
Vijay Tandon on Green Marketing @ UBS.
History of green marketing
Vijay Tandon on Green Marketing @ UBS.
The term Green Marketing came into prominence in the late 1980s & early 1990s. The
American Marketing Association (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".
History of green marketing
Vijay Tandon on Green Marketing @ UBS.
 Green Marketing refers to marketing - Ecological issues are the focal point of marketing decision- making.
 Change in raw materials, packaging materials, product design or even substitution.
 Disposal of waste - Production & distribution, surplus or expired products & disposal of packaging post use
 There is ample scope for green marketing at both the manufacturers’ end & marketers’ end.
Green Marketing is catching on in a big way. Marketers as well as consumers are slowly but strongly
recognizing it.
Green marketing Increasingly important
 Xerox introduced
a high quality
recycled
photocopier
paper
 satisfy the
demand for less
environmentally
harmful products
 Disposing of
harmful by-
products is
becoming
increasingly costly
and difficult
 More efficient
production
processes cannot
only reduce waste
but also the need
for
 A firm may
develop a
technology for
reducing and
recycling waste
 members of the
wider community
they must behave
in an
environmentally
responsible
fashion
 Environmental
issues are being
integrated into the
firm’s corporate
culture
 Firms marketing
environment
friendly products
& services will
have a competitive
advantage over
firms marketing
non environment
friendly products
and services
 McDonald’s
replaced its
clamshell
packaging with
waxed paper to
minimize ozone
depletion
Opportunities
Social
Responsibility
Competitive
Advantage
Cost Factor
Vijay Tandon on Green Marketing @ UBS
Nielson Global survey
Polled 30,000 consumers
60 countries
Consumer preferences
55% pay extra
52% made at-least 1 purchase
Retail purchase statistics
2% YOY growth
Over 1% that didnt
Vijay Tandon on Green Marketing @ UBS.
How to gain competitive advantage
through Green Marketing efforts?
Vijay Tandon on Green Marketing @ UBS.
Green values (1st company to make green values part of its mission statement.
The product mission of Ben & Jerry’s is to distribute and sell the finest ice cream with natural ingredients
and promoting business practices that respect the earth and the environment. The company has one goal:
sell a lot of ice cream while building on a better world.
Green Marketing Initiatives
Unilever halved greenhouse emissions
Packaging recyclable or biodegradable
Vijay Tandon on Green Marketing @ UBS.
The Corporate Social Responsibility (CSR) Reports started with the ice cream seller
Ben & Jerry's where the financial report was supplemented by a greater view on the
company's environmental impact.
Green Marketing Initiatives
Unilever halved greenhouse emissions
Packaging recyclable or biodegradable
Vijay Tandon on green marketing @ UBS.
• Positive carbon footprint
• Water positive
• Lead free paints from Kansai Nerolac
• Jonson & Johnson - 2nd Largest corporate user of solar power in US.
• J&J - Reduction in production waste
Green Marketing Initiatives
Vijay Tandon on Green Marketing @ UBS.
GE ecomagination campaign
• $ 90 Million Investment in marketing campaign
• Investment in Greener technologies
• Products, processes, practices - Wind turbines, jet engines
Dawn dish washer liquid
• Dawn Antibacterial dish soap
• "Dawn helps save wildlife"
• Contained Triclosan - officially declared toxic to aquatic life
Green Marketing Campaigns
Vijay Tandon on Green Marketing @ UBS.
Green Marketing activities
Product modification
Changes to the production process
Packaging changes
Modifying advertising
Certifications
Vijay Tandon on Green Marketing @ UBS.
Responsibilities of Green Manufacturer
Integrate environmental considerations into our business planning and decision-making processes, including product
research and development, new manufacturing methods and acquisitions/divestitures
1
Identify, assess and manage environmental risks associated with our operations and products throughout their life
cycle, to reduce or eliminate the likelihood of adverse consequences;
2
Comply with all applicable legal and regulatory requirements and, to the extent we determine it appropriate, adopt
more stringent standards for the protection of our employees and the communities in which we operate
3
Provide regular communications to, and training for, employees to heighten awareness of, and pride in,
environmental issues.
4
Work as advocates with our suppliers, customers and business partners to jointly achieve the highest possible
environmental standards;
5
Vijay Tandon on Green Marketing @ UBS.
Benefits of Green Retailing Practices to the Retailers
Opt for green construction processes for stores1
Reuse packing material and cardboard boxes2
Print double sided whenever possible3
Use renewable sources of energy4
Reduce paper transactions by adopting technology for billing, invoicing, vendor, payments, order management5
Recycle paper, plastic, metals, cartridges, etc.6
Vijay Tandon on Green Marketing @ UBS.
Green Marketing
Being manufactured in a sustainable fashion1
Not containing toxic materials or ozone-depleting substancesrm2
Able to be recycled and/or is produced from recycled materials3
Being made from renewable materials (such as bamboo, etc.)4
Not making use of excessive packaging5
Being designed to be repairable and not "throwaway"6
Vijay Tandon on Green Marketing @ UBS.
Sustainable development & CSR
Green marketing is typically practiced by companies that are committed to sustainable
development and corporate social responsibility.
Vijay Tandon on Green Marketing @ UBS.
Differentiate as Green company
Vijay Tandon on green marketing @ UBS.
Consumer demand for more environmentally responsible products
Sales of environmentally oriented products have increased
Demand remains strong despite economic downturn
Regulation & government action is pending
There are generally no industry wide standards for communicating environmental messages
Drivers of Green-wash
Reduce the risk of green-wash - LCA & metrics
Vijay Tandon on Green Marketing @ UBS.
Green-
washing
firms
Vocal
green
firms
Silent
brown
firms
Silent
green
firms
Bad Good
Environmental performance
Communication
Positive
communication
No communication
Typology of firms - Environmental performance & communication
Vijay Tandon on Green Marketing @ UBS.
Misguided
 Category includes companies -
Made substantial efforts to
improve environmental
performance of their products &
processes
Effective environmental communications
 Companies - Improve the
environmental & social
performance
 In cases where company says we
are GREEN but lacks to back-up
claim
 At first glance - Commendable
work & providing data to back uo
their claim
 Deeper dive - Doesn’t deserve as
much credit as it seems
Greenwash noise Unsubstantiated
Greenwash - Types
Value to
the
environ
ment
Effectiveness of Communication
Vijay Tandon on Green Marketing @ UBS.
Vocal firms
 Positively communicate about
their environmental performance
 Marketing & public relations
campaigns
Silent green
 Do not communicate about
environmental performance
 Positively communicate about
their environmental performance
 Marketing & public relations
campaigns
 Greenwashing firms
 Do not communicate about
environmental performance
Brown firms Silent brown firms
Environmental performance/Communication
Good
environ
perform
ance
Bad
environ
perform
ance
Communication No communication
Vijay Tandon on Green Marketing @ UBS.
Green-washing
Poor
environmental
performance Positive
communication
Green washing firm engages in two behaviors simultaneously
Vijay Tandon on green marketing @ UBS.
Green-washing
Firm level
green washing
Product level
green washing
Act of misleading consumers - Practices/Product
Vijay Tandon on Green Marketing @ UBS.
Environmental performance categories
Basis environmental performances
Good
environmental
performance
Poor
environmental
performance
Brown firmsGreen firms
Vijay Tandon on Green Marketing @ UBS.
Green products characteristics
Products those are originally grown,1
Products those are recyclable, reusable and biodegradable,2
Products containing recycled contents, nontoxic chemical,3
Products contents under approved chemical,4
Products that do not harm or pollute the environment,5
Products that will not be tested on animals, eco-friendly packaging - re-usable, refillable6
Vijay Tandon on Green Marketing @ UBS.
Green Opportunities
Green energy (such as wind and geothermal)1
Eco-friendly methods, including sustainable and organic agriculture.2
Reduce product packaging.3
Buy/sell locally, reducing transportation energy.4
Reduce production waste (in both energy and materials)5
Use recycled materials in product production.6
Vijay Tandon on Green Marketing @ UBS.
GREEN MARKETING MIX
Vijay Tandon on Green Marketing @ UBS.
• Consumers assume - Green products
are priced higher comparative to
conventional products
• People, planet & profit
• Managing logistics
• Cut down on transportation emissions
• Reducing carbon footprint
• Licensing for local production
• Durable
• Non-toxic
• Made from recycled
materials
• Minimally packaged
• Repairable
• Safe for disposal
• Activities that
communicate the merits
of the product
• Campaigns
• Advertising
• Publicity
• Certifications
MARKETING
MIX
GREEN MARKETING MIX
Vijay Tandon on Green Marketing @ UBS.
Green Consumers
Consumers are the real assets of business (Vocal advocators)1
Consumers who follow green marketing practices - Green Consumers2
Green Consumer is a eco-friendly consumer3
Green Consumer buys only eco-friendly products & uses only green services4
Green Consumers are very concerned about the environment5
Products that will not be tested on animals, eco-friendly packaging - re-usable, refillable6
Vijay Tandon on Green Marketing @ UBS.
Behavioral green
 Green to the core (Think & act green)
 Buy products - Neutral or positive
impact on the planet
 Spread the word - + ively & - ively
 Incorporate green practices
Think green consumers
 Try to act green when they can
 Go- Non-green when not convenient
 Think like green consumers but don’t
necessarily act
 On the fence - whetehr they care
about green issues
 Don’t behave or think -
Environmentally conscious
 Encouraged to buy green
 Ignore environmental issues
 Not environmentally conscious
 Negative attitude towards media with
a heavy environment focus
Potential Green True brown
Types of Green Consumers
Vijay Tandon on Green Marketing @ UBS.
Segmentation of Green consumers
Resource conservers
Health fanatics
Animal lovers
Outdoor enthusiasts
Vijay Tandon on Green Marketing @ UBS.
• Hate waste
• Drop off old electronics
• EPA energy star
• Highlight the economical, long lasting & reusability benefits
• Ever watchful of savings their drops & watts
Resource Conserving Consumers
Vijay Tandon on Green Marketing @ UBS.
• Worry about overexposure to sun, fear pesticide residues on produce, contaminants in toys
• Scout out Natural food stores
• Natural cosmetics & pet care
• Switched off from toxic cleaning products
• Focus on organic aspects, health benefits, trust, transparency & natural ingredients
Health extremist bother over toxics
Vijay Tandon on Green Marketing @ UBS.
• Likely to be vegetarians or vegans
• PETA - Boycott tuna & products with real fur
• Looks for products with labels - cruelty free, salmon safe or dolphin safe
• Volunteer at the local animal shelter
• Products not tested on animals
Animal lovers
Vijay Tandon on Green Marketing @ UBS.
• Camping, biking, hiking etc.
• Online @ bacpackers.com
• Advertise in Sierra club magazines
• Conduct joint promotions - National parks
• Outdoor magazines
Outdoor Enthusiasts saves energy
Vijay Tandon on Green Marketing @ UBS.
Consumerism is an organized movement of citizens and government agencies to
improve the rights and power of buyers in relation to sellers.
Consumerism
Vijay Tandon on Green Marketing @ UBS.
 The right to be well informed about important aspects of the product • The right to be protected against
questionable products and marketing practices
 The right to influence products and marketing practices in ways that will improve the “quality of life”
 The right to consume now in a way that will preserve the world for future generations of consumers.

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Green Marketing by Vijay Tandon, Director PGDM & International Programs, Universal Business School

  • 1. Prof. Vijay Tandon Director - PGDM & International Programs Universal Business School Subject - Green Marketing
  • 2.
  • 3. UBS - India’s first green business school which is endorsed by 60 CEO’s. UBS is led by Global CEO’s - “By the Industry for the Industry” Ethics Experiential learning Environme nt About UBS (UBS at a glance) UBS follows 3E Model Strategic partnerships with Foreign Institutions UBS Ranking (Accolades)  Truly Global B-school in India (Times B-school)  Top 4 B-schools - Pride of Mumbai (Times B-school)  Most Innovative B-school in Mumbai (India today & HRD)  2nd Best Faculty, West zone emerging B-school (Times of India)  Top 5 Green education Institutes (India today)  1st college with best Industry exposure (Students choice, College search)  Most upcoming B-school in India(ASSOCHAM & HRD Ministry)  5 star Universities (India today) Accreditations - Quality Assurance (Prep) National Board of Accreditation Association to advance collegiate Schools of Business Experiential learning - Learning by doing Most unique learning model at UBS
  • 4. Green Marketing… (How is it different……) Vijay Tandon on Green Marketing @ UBS.
  • 5. History of green marketing Vijay Tandon on Green Marketing @ UBS. The term Green Marketing came into prominence in the late 1980s & early 1990s. The American Marketing Association (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".
  • 6. History of green marketing Vijay Tandon on Green Marketing @ UBS.  Green Marketing refers to marketing - Ecological issues are the focal point of marketing decision- making.  Change in raw materials, packaging materials, product design or even substitution.  Disposal of waste - Production & distribution, surplus or expired products & disposal of packaging post use  There is ample scope for green marketing at both the manufacturers’ end & marketers’ end. Green Marketing is catching on in a big way. Marketers as well as consumers are slowly but strongly recognizing it.
  • 7. Green marketing Increasingly important  Xerox introduced a high quality recycled photocopier paper  satisfy the demand for less environmentally harmful products  Disposing of harmful by- products is becoming increasingly costly and difficult  More efficient production processes cannot only reduce waste but also the need for  A firm may develop a technology for reducing and recycling waste  members of the wider community they must behave in an environmentally responsible fashion  Environmental issues are being integrated into the firm’s corporate culture  Firms marketing environment friendly products & services will have a competitive advantage over firms marketing non environment friendly products and services  McDonald’s replaced its clamshell packaging with waxed paper to minimize ozone depletion Opportunities Social Responsibility Competitive Advantage Cost Factor Vijay Tandon on Green Marketing @ UBS
  • 8. Nielson Global survey Polled 30,000 consumers 60 countries Consumer preferences 55% pay extra 52% made at-least 1 purchase Retail purchase statistics 2% YOY growth Over 1% that didnt Vijay Tandon on Green Marketing @ UBS.
  • 9. How to gain competitive advantage through Green Marketing efforts? Vijay Tandon on Green Marketing @ UBS.
  • 10. Green values (1st company to make green values part of its mission statement. The product mission of Ben & Jerry’s is to distribute and sell the finest ice cream with natural ingredients and promoting business practices that respect the earth and the environment. The company has one goal: sell a lot of ice cream while building on a better world. Green Marketing Initiatives Unilever halved greenhouse emissions Packaging recyclable or biodegradable Vijay Tandon on Green Marketing @ UBS.
  • 11. The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view on the company's environmental impact. Green Marketing Initiatives Unilever halved greenhouse emissions Packaging recyclable or biodegradable Vijay Tandon on green marketing @ UBS.
  • 12. • Positive carbon footprint • Water positive • Lead free paints from Kansai Nerolac • Jonson & Johnson - 2nd Largest corporate user of solar power in US. • J&J - Reduction in production waste Green Marketing Initiatives Vijay Tandon on Green Marketing @ UBS.
  • 13. GE ecomagination campaign • $ 90 Million Investment in marketing campaign • Investment in Greener technologies • Products, processes, practices - Wind turbines, jet engines Dawn dish washer liquid • Dawn Antibacterial dish soap • "Dawn helps save wildlife" • Contained Triclosan - officially declared toxic to aquatic life Green Marketing Campaigns Vijay Tandon on Green Marketing @ UBS.
  • 14. Green Marketing activities Product modification Changes to the production process Packaging changes Modifying advertising Certifications Vijay Tandon on Green Marketing @ UBS.
  • 15. Responsibilities of Green Manufacturer Integrate environmental considerations into our business planning and decision-making processes, including product research and development, new manufacturing methods and acquisitions/divestitures 1 Identify, assess and manage environmental risks associated with our operations and products throughout their life cycle, to reduce or eliminate the likelihood of adverse consequences; 2 Comply with all applicable legal and regulatory requirements and, to the extent we determine it appropriate, adopt more stringent standards for the protection of our employees and the communities in which we operate 3 Provide regular communications to, and training for, employees to heighten awareness of, and pride in, environmental issues. 4 Work as advocates with our suppliers, customers and business partners to jointly achieve the highest possible environmental standards; 5 Vijay Tandon on Green Marketing @ UBS.
  • 16. Benefits of Green Retailing Practices to the Retailers Opt for green construction processes for stores1 Reuse packing material and cardboard boxes2 Print double sided whenever possible3 Use renewable sources of energy4 Reduce paper transactions by adopting technology for billing, invoicing, vendor, payments, order management5 Recycle paper, plastic, metals, cartridges, etc.6 Vijay Tandon on Green Marketing @ UBS.
  • 17. Green Marketing Being manufactured in a sustainable fashion1 Not containing toxic materials or ozone-depleting substancesrm2 Able to be recycled and/or is produced from recycled materials3 Being made from renewable materials (such as bamboo, etc.)4 Not making use of excessive packaging5 Being designed to be repairable and not "throwaway"6 Vijay Tandon on Green Marketing @ UBS.
  • 18. Sustainable development & CSR Green marketing is typically practiced by companies that are committed to sustainable development and corporate social responsibility. Vijay Tandon on Green Marketing @ UBS.
  • 19. Differentiate as Green company Vijay Tandon on green marketing @ UBS.
  • 20. Consumer demand for more environmentally responsible products Sales of environmentally oriented products have increased Demand remains strong despite economic downturn Regulation & government action is pending There are generally no industry wide standards for communicating environmental messages Drivers of Green-wash Reduce the risk of green-wash - LCA & metrics Vijay Tandon on Green Marketing @ UBS.
  • 21. Green- washing firms Vocal green firms Silent brown firms Silent green firms Bad Good Environmental performance Communication Positive communication No communication Typology of firms - Environmental performance & communication Vijay Tandon on Green Marketing @ UBS.
  • 22. Misguided  Category includes companies - Made substantial efforts to improve environmental performance of their products & processes Effective environmental communications  Companies - Improve the environmental & social performance  In cases where company says we are GREEN but lacks to back-up claim  At first glance - Commendable work & providing data to back uo their claim  Deeper dive - Doesn’t deserve as much credit as it seems Greenwash noise Unsubstantiated Greenwash - Types Value to the environ ment Effectiveness of Communication Vijay Tandon on Green Marketing @ UBS.
  • 23. Vocal firms  Positively communicate about their environmental performance  Marketing & public relations campaigns Silent green  Do not communicate about environmental performance  Positively communicate about their environmental performance  Marketing & public relations campaigns  Greenwashing firms  Do not communicate about environmental performance Brown firms Silent brown firms Environmental performance/Communication Good environ perform ance Bad environ perform ance Communication No communication Vijay Tandon on Green Marketing @ UBS.
  • 24. Green-washing Poor environmental performance Positive communication Green washing firm engages in two behaviors simultaneously Vijay Tandon on green marketing @ UBS.
  • 25. Green-washing Firm level green washing Product level green washing Act of misleading consumers - Practices/Product Vijay Tandon on Green Marketing @ UBS.
  • 26. Environmental performance categories Basis environmental performances Good environmental performance Poor environmental performance Brown firmsGreen firms Vijay Tandon on Green Marketing @ UBS.
  • 27. Green products characteristics Products those are originally grown,1 Products those are recyclable, reusable and biodegradable,2 Products containing recycled contents, nontoxic chemical,3 Products contents under approved chemical,4 Products that do not harm or pollute the environment,5 Products that will not be tested on animals, eco-friendly packaging - re-usable, refillable6 Vijay Tandon on Green Marketing @ UBS.
  • 28. Green Opportunities Green energy (such as wind and geothermal)1 Eco-friendly methods, including sustainable and organic agriculture.2 Reduce product packaging.3 Buy/sell locally, reducing transportation energy.4 Reduce production waste (in both energy and materials)5 Use recycled materials in product production.6 Vijay Tandon on Green Marketing @ UBS.
  • 29. GREEN MARKETING MIX Vijay Tandon on Green Marketing @ UBS.
  • 30. • Consumers assume - Green products are priced higher comparative to conventional products • People, planet & profit • Managing logistics • Cut down on transportation emissions • Reducing carbon footprint • Licensing for local production • Durable • Non-toxic • Made from recycled materials • Minimally packaged • Repairable • Safe for disposal • Activities that communicate the merits of the product • Campaigns • Advertising • Publicity • Certifications MARKETING MIX GREEN MARKETING MIX Vijay Tandon on Green Marketing @ UBS.
  • 31. Green Consumers Consumers are the real assets of business (Vocal advocators)1 Consumers who follow green marketing practices - Green Consumers2 Green Consumer is a eco-friendly consumer3 Green Consumer buys only eco-friendly products & uses only green services4 Green Consumers are very concerned about the environment5 Products that will not be tested on animals, eco-friendly packaging - re-usable, refillable6 Vijay Tandon on Green Marketing @ UBS.
  • 32. Behavioral green  Green to the core (Think & act green)  Buy products - Neutral or positive impact on the planet  Spread the word - + ively & - ively  Incorporate green practices Think green consumers  Try to act green when they can  Go- Non-green when not convenient  Think like green consumers but don’t necessarily act  On the fence - whetehr they care about green issues  Don’t behave or think - Environmentally conscious  Encouraged to buy green  Ignore environmental issues  Not environmentally conscious  Negative attitude towards media with a heavy environment focus Potential Green True brown Types of Green Consumers Vijay Tandon on Green Marketing @ UBS.
  • 33. Segmentation of Green consumers Resource conservers Health fanatics Animal lovers Outdoor enthusiasts Vijay Tandon on Green Marketing @ UBS.
  • 34. • Hate waste • Drop off old electronics • EPA energy star • Highlight the economical, long lasting & reusability benefits • Ever watchful of savings their drops & watts Resource Conserving Consumers Vijay Tandon on Green Marketing @ UBS.
  • 35. • Worry about overexposure to sun, fear pesticide residues on produce, contaminants in toys • Scout out Natural food stores • Natural cosmetics & pet care • Switched off from toxic cleaning products • Focus on organic aspects, health benefits, trust, transparency & natural ingredients Health extremist bother over toxics Vijay Tandon on Green Marketing @ UBS.
  • 36. • Likely to be vegetarians or vegans • PETA - Boycott tuna & products with real fur • Looks for products with labels - cruelty free, salmon safe or dolphin safe • Volunteer at the local animal shelter • Products not tested on animals Animal lovers Vijay Tandon on Green Marketing @ UBS.
  • 37. • Camping, biking, hiking etc. • Online @ bacpackers.com • Advertise in Sierra club magazines • Conduct joint promotions - National parks • Outdoor magazines Outdoor Enthusiasts saves energy Vijay Tandon on Green Marketing @ UBS.
  • 38. Consumerism is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. Consumerism Vijay Tandon on Green Marketing @ UBS.  The right to be well informed about important aspects of the product • The right to be protected against questionable products and marketing practices  The right to influence products and marketing practices in ways that will improve the “quality of life”  The right to consume now in a way that will preserve the world for future generations of consumers.