This document discusses HUL's natural environment scanning and trends. It summarizes HUL's approach to identifying relevant environmental factors and assessing their impact. It then outlines key natural environment trends HUL is addressing, including reducing packaging waste through light-weighting and refills, decreasing water usage with concentrated products, lowering total waste and greenhouse gases, and targeting the LOHAS consumer segment. The document concludes with HUL's future green marketing strategy of innovating sustainable products and communicating their benefits, as well as the need to address greenwashing and mandate environmental reporting.

1. ENVIRONMENT SCANNING
Natural Environment
GROUP NO. 8
CHITTRESH DHAWAN
DEEP DAGA
HIMANSHU ARORA
NIKHIL SINGHVI
SWATI SINGHAL

2. CONTENTS
• Environment Scanning Approach
• Natural Environment Trends at HUL
–
–
–
–
–
What Customer Wants
Packaging
Water Footprint
Reducing Wastes
Greenhouse Gases
• Future Marketing Strategy
• Ethical Aspect

3. Environmental Scanning Approach
Does trend
create a
marketing
opportunity
?
Identify
relevant
environment
al factors
and trends
Decide how
to take
advantage
of
opportunity
Does trend
a pose a
marketing
threat
Decide how
to minimize
threat
Assess
impact of
trends on
markets &
marketing
activities

4. Constituents
of Natural
Environment
Ecology
•
Natural
Resources
Climate
•
•
Natural Environment
Natural Resources:
– Firms are concerned with the availability of raw
materials
– They need to know whether there will be a shortage
in any of the critical raw material.
– They also need to know the trends governing their
cost
Ecology
– Firms need to know the nature and dimensions of
environmental regulations and to what extent these
factors will affect their business prospects
Climate
– Important factor for firms with products whose
demand depends on climate
– Firms depending on climate-dependent raw materials
will be particularly concerned with this factor.
– Decide on production locations and marketing
territories appropriately.

5. WHAT CUSTOMER WANTS

6. PACKAGING
WHAT HAS BEEN DONE TILL NOW
REDUCE
An approximate 9.5% reduction in weight per consumer use over
2011-12 compared to 2010, achieved through a combination of light
weighting and material design optimisation
REUSE
Introduced refills in several markets during 2012, including China,
India, South Africa and the UK
RECYCLE
3,126 tonnes of post-consumer recycled materials incorporated into
rigid plastic packaging
3.5% increase in recycling and recovery rates, over the 2010 average
Recycling and Recovery Index (RRI), averaged across top 14 countries

7. WATER FOOTPRINT
• In 2012 One Rinse products
were used in 1.4 billion
washes in 28.7 million
households worldwide, a
66% increase on 2010
• 13 million fewer m3of water
abstracted in 2012 than in
2008 (a reduction of 25% per
tonne of production)
• Products like dry shampoo ,
hand sanitizer reduce the
consumption of water and
are relatively new in the
market

8. REDUCING WASTES
• 76,000 fewer tonnes of total waste in 2012
than in 2008
• 7 new factories bound to open in 2013
with eco-efficient designs to reduce waste
up to 50 %
• Reducing the environment impact of
sachets
• Turning Sachet waste into fuel through
Pyrolysis

9. GREENHOUSE GASES
• Concentrating the laundry products helps to
reduce greenhouse gas emissions.
– 14% of portfolio made up of concentrated and
compacted products at end 2012, compared to
baseline of 4% in 2008
• Increasing the use of energy from renewable
sources at our manufacturing sites.
– a reduction of 31.5% per tonne of production
from 2008 to 2012
• Reduced energy consumption in offices
– 11% reduction in energy (kWh) purchased per
occupant since 2010

10. FUTURE MARKETING STRATEGY
• LOHAS is an acronym for Lifestyles of Health and Sustainability, a
market segment of people who are focused on health and fitness,
the environment, personal development, sustainable living, and
social justice.
• The above table means that the role of reference groups in
generation of opinions about a product or company holds the
highest percentage.
• HUL can target the segment of LOHAS as they act as opinion
leaders.
• They can adopt the 4 P’s in the green marketing context.
• They can also incorporate the triple bottom line concept.

11. FUTURE MARKETING STRATEGY
4 P’s IN GREEN MARKETING
• To innovate and offer products that follow
the policy reduce, reuse and recycle
• Consumers are willing to pay a premium if
the product is helping in conserving natural
resources
• To make available them at a location which
reduces the frequency of travel of the
customers, hence reducing the fuel
consumption
• To communicate specifically the benefits of
these products to the opinion leaders

12. ETHICAL ASPECT
• Tackle Green-washing issue in the
marketing
– Not mis-leading consumers by printing false
“green” claims
• Mandate environmental reporting
– Start reflecting the externalities caused by
producing products ( deforestation floods etc)
into their financials

13. THANK YOU