3. Some of the best examples of
Green Brand
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4. What is Green Marketing?
Term “Go Green” is an Indicator of Purity.
Advertising without any adverse impact on the
society.
Production, Consumption and Disposal of ecofriendly
products.
Concerns with protection of Ecological Environment
and participates in green improvement.
Product Modification, changes to the production
process, sustainable packaging as well as modifying
advertising.
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5. Introduction to Green Marketing
Modern marketing has created a lot of problems. For example:
Growth in marketing activities resulted into rapid economic
growth, mass production with the use of advanced
technology, comfortable and luxurious life, style, severe
competition, use of unhealthy marketing tactics and
techniques to attract customers, exaggeration in advertising,
liberalization and globalization, creation of multinational
companies, retailing and distribution by giant MNCs, etc. and
so on.
Green marketing encourages the production of pure products
by pure technology, conservation of energy, preservation of
environment, minimum use of natural resources and more use
of natural food instead of processed food. Those all efforts
made by people, social organisations, firms and government
are said to be as green marketing efforts for the sake of
healthy environment.
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8. Green Products
These are the products that are manufactured through green
technology and cause no environmental hazards.
For green products, it is necessary that there should be
conservation of natural resources and sustainable
development.
Products that can go through 3R’s (i.e. Reduce, Reuse,
Recycle).
Products under approved chemicals and with less toxic effect
on the environment.
Products that do not harm and pollute the environment.
Environmentally preferable to other products. For example:
Eco-friendly packaging
Products that can be tested on animals as well.
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9. NEED FOR GREEN
MARKETING
The concept of green marketing has emerged
as a viable solution to address environmental
issues and market the products of the
company at the same time. The question of
why green marketing has increased in
importance is quite simple and relies on the
basis of definition of Economics, i.e.
Economics is the study of how people use their
limited wants. Thus, mankind has limited
resources on the earth, with which she/he
must attempt to provide for the worlds
unlimited wants.
Contd…
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10. NEED FOR GREEN
MARKETING
The factors that impel organisations worldwide
to go green are:
Social Responsibility
Governmental Pressure
Competitive Pressure
Cost or Profit Issues
Opportunity
Cost Reduction
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11. SOCIAL RESPONSIBILITY
Many companies have started realizing that
they must behave in an environment friendly
fashion. They believe both in achieving
environmental objectives as well as profit
related objectives respecting the principle of
Extended Producer Responsibility (EPR).
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12. GOVERNMENTAL
PRESSURE
Various regulations are framed by the
government to protect consumers and the
society at large. The Indian government too
has developed a framework of legislations to
reduce the production of harmful goods and
by-products. These reduce the industry's
production and consumer‘s consumption of
harmful goods, including those detrimental to
the environment; for example, the ban of
plastic bags, prohibition of smoking in public
areas, etc.
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13. COMPITITIVE PRESSURE
Another major force in the environmental
marketing area has been firms' desire to
maintain their competitive position. In many
cases firms observe competitors promoting
their environmental behaviours and attempt to
emulate this behaviour. In some instances this
competitive pressure has caused an entire
industry to modify and thus reduce its
detrimental environmental behaviour.
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14. COST REDUCTION
Reduction of harmful waste may lead to
substantial cost savings. For Example,
polychlorinated biphenyl (PCB) contaminated
oil are becoming increasingly costly and in
some cases difficult. Therefore firms that can
reduce harmful waste may incur substantial
cost savings. In some cases, many firms have
started using a technique which develops a
symbiotic relationship whereby the waste
generated by one company is used by another
as a cost-effective raw material.
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15. OPPORTUNITY
Opportunity In India, around 25% of the
consumers prefer environment friendly
products, and around 28% may be considered
health conscious. Therefore, green marketers
have diversified to fairly sizeable segment of
consumers to cater to.
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16. EXAMPLES IN INDIA
Digital Tickets by Indian Railways. :-
Recently IRCTC has allowed its customers
to carry PNR no. of their E-Tickets on their
laptop and mobiles. Customers do not need
to carry the printed version of their ticket
anymore.
No Polythene carry bags for free:- Forest
& Environmental Ministry of India has
ordered to retail outlets like Big Bazar, More,
Central, D-Mart etc. that they could provide
polythene carry bags to customers only if
customers are ready for pay for it.
Contd…
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17. EXAMPLES IN INDIA
Green IT Project: State Bank of India. By using eco and power
friendly equipment in its 10,000 new ATMs, the banking giant
has not only saved power costs and earned carbon credits, but
also set the right example for others to follow. SBI is also
entered into green service known as “Green Channel Counter”.
SBI is providing many services like; paper less banking, no
deposit slip, no withdrawal form, no checks, no money
transactions form all these transaction are done through SBI
shopping & ATM cards. State Bank of India turns to wind energy
to reduce emissions. The wind project is the first step in the
State Bank of India's green banking program dedicated to the
reduction of its carbon footprint and promotion of energy
efficient processes, especially among the bank's clients.
Contd…
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18. EXAMPLES IN INDIA
Lead Free Paints from Kansai Nerolac:-
Kansai Nerolac has worked on removing
hazardous heavy metals from their paints.
The hazardous heavy metals like lead,
mercury, chromium, arsenic and antimony
can have adverse effects on humans. Lead
in paints especially poses danger to human
health where it can cause damage to Central
Nervous System, kidney and reproductive
system. Children are more prone to lead
poisoning leading to lower intelligence levels
and memory loss.
Contd…
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19. EXAMPLES IN INDIA
Wipro's Green Machines:-Wipro Infotech
was India's first company to launch
environment friendly computer peripherals.
For the Indian market, Wipro has launched a
new range of desktops and laptops called
Wipro Greenware. These products are
RoHS (Restriction of Hazardous
Substances) compliant thus reducing e-
waste in the environment.
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20. Reconceptualizing the marketing
environment
Existing model of marketing dismiss the
ecological contexts in which economic
activity occurs.
The response to increased environmental
concern has been to try to accommodate it
within existing models of the environment(of
the PEST type) by discussing it as political
pressure, an influence on the economics of
business, a social trend or a technological
challenge.
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22. Global Physical Environment
The reality is that the physical environment is the foundation
on which societies and economies are based.
At the simplest level, the environment affects businesses
because it represents the physical space within which they
and their customers exist, and it provides the resources upon
which they depend.
All of the major industries in the world face important
environmentally related issues and challenges, each of which
creates marketing opportunities and threats for different
businesses. For example:
(i) For the car and oil companies, concerns about
carbon dioxide emissions and global warming constitute a major
threat. For companies working in alternative fuels and energy
efficiency devices it represents a major opportunity.
(ii) For agriculture, forestry and fishing, the threat
that unsustainable production poses in terms of loss of
biodiversity, deforestation and soil erosion are crucial issues for
the future.
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23. Global socio-economic
system
Recent decades have also seen a more global
social perspective emergence reflected in
global companies, markets, technologies and
sociocultural trends.
The response to the green challenge has also
become more global through increasing
international environmental legislation and
intergovernmental conferences. For example:
(i) The Montreal Protocol to reduce
CFC use, or the worldwide ban on commercial
whaling.
(ii) 1997 Kyoto protocol on climate
change.
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24. Society
Within societies, concern about the
environmental and social impacts of business
is generally increasing and is being reflected in
a number of ways, including:
Changing values and attitudes.
Pressure group activity.
Media interest.
Political and legal interest.
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25. The economy
Environmental protection and economic growth are
interlinked in many complex ways, and that long-term
economic growth will be dependent on better
environmental protection.
Many business opportunities are now emerging for
technologies, goods and services which address
environmental problems, or at least make less of a
contribution towards them.
Key areas where environmental concern is
influencing economic issues include:
(i) Production economics.
(ii) Investor pressure.
(iii) Green taxes.
(iv) Access to capital.
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26. Industry structure
The green challenge is one of many forces
encouraging a more relationship-based view of
industry structures, particularly through an
emphasis on recycling and supply loops.
These feature relationships in which the
customer returns products or packaging to the
manufacturer, and in the process become
another form of supplier.
The changes that greening is bringing to
industry structures includes:
(i) The threat of substitutes.
(ii) Supplier relationships.
(iii) Market entry barriers.
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27. Competitors
Global competition and continuous
improvement philosophies have narrowed
the differences between products to the
extent that ‘softer’ issues such as perceived
environmental impact can act as a ‘tie-
breaker’ for the consumer trying to choose
brands.
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28. Customers
Recent UK research by the Co-operative
Bank suggested that around one in three
Britons make some purchases on the basis
of ethics and environment, and that at least
5 per cent consistently search for ethical
labeling, recycle, participate in boycotts and
discuss green issues in relation to the
brands they buy.
The identity, characteristics and sincerity of
these ‘green consumers’ has been the
dominant theme in discussions about green
marketing.
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29. Firms
As external concern about the socio-
environmental impacts grows, so companies
large and small are having to respond
through changes to a range of organizational
dimensions.
Environmental management appointments,
the introduction of green auditing and
reporting systems, and changes to company
policies and facilities to reduce waste and
pollution are common responses.
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30. Products
Environmental concern is creating demands for new
products (such as pollution control equipment), and is
causing existing products to be reconsidered and in many
cases redesigned, reformulated or produced differently.
In the USA, the proportion of green products among new
product introductions rose from 1.1 per cent in 1986 to a
high of 13.4 per cent in 1991 (Ottman, 1994).
By 1997, green products accounted for 9.5 percent of all
new US product introductions, with the highest proportion
in the ‘household products’ category, accounting for 29.5
percent of product introductions (Fuller, 1999).
Environmental concern can also lead to the repositioning
of products. In response to concern about exposure to
ultraviolet radiation and the risk of skin cancer, sun tan
lotions have changed from an emphasis on sun exposure
and beauty to an emphasis on skin protection.
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31. SUSTAINABLE MARKETING
MIX
Sustainability Marketing, unlike traditional marketing needs to
adhere well to sustainability principles throughout the marketing
mix .
This helps to
1. strengthen the Brand Identity
2. Provide Credibility
3. Ensure Honest, truthful communication and radical
transparency with stakeholders
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32. PRODUCT
AIM: Reduce the carbon footprint
Source Of Material – natural and organic
materials sourced through (legal) local and
through fair trade suppliers.
Manufacturing process- Lean Manufacturing
Embrace sustainability principles at its core
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33. PRICE
Pricing has always been an issue for
sustainable products, as they tend to be
costlier due to higher cost of production.
This creates a “green pricing gap” between
green products and conventional products
Marketers need to reduce this price barrier
by either reducing cost of production or
through marketing efforts to raise the
perceived value to command a premium.
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34. PLACE
A place related sustainable marketing area
of increased interest is buying locally.
Consumers are increasingly concerned
about the environment and carbon
emissions from transporting goods over long
distance.
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35. PROMOTION
Even promotion can be done in a
sustainable manner
Nike recently made a big splash with its
marketing focused on creating a better world
through sports. The efforts included a first
100% recycled television advertisement.
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36. ECO LABELS
It is a voluntary method of environmental
performance certification and labeling that is
practiced around the world.
An Eco label identifies products or services
environmentally preferable overall, within a
specific product or service category .
They are affixed to products that pass the
criterion set by government, association or
standard certificate body.
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37. MAIN FEATURES
Eco labels are affixed to products that a re verified unlike green
symbols
Eco Labels may focus on certain environmental aspects of the
product example energy consumption, water use, etc
Eco Labels are usually funded and backed by the national
government, but administered by an independent body
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38. GREEN MARKETING
MYOPIA
Green Marketing must satisfy two objectives
: improved environmental quality and
customer satisfaction.
Misjudging either or overemphasizing the
former at the expense of the latter can be
termed as “green marketing myopia”
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39. Many Green Products fail as the manufacturer focus too
much on “greeness” over the broader expectations of the
consumers or other market players.
Green Marketing Myopia can also occur when green products
can fail to provide credible, substantive environmental
benefits.
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40. Strategies to avoid Green
Marketing Myopia
Consumer Value Positioning
Calibration of Consumer Knowledge
Credibility of Product Claims
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41. Role of IT in Green Marketing
Usage of Green Data: This data is defined as the data in which
mechanical, lighting, electrical and computer systems are
designed for maximum energy efficiency with minimum
environmental impact.
Promotion of Green technology and Delivering Environmentally
sound solutions.
Reduction in power consumption of the data center that do not
harm and pollute the environment.
Using low-emission building materials, carpets, paints and other
biodegradable products.
Using other alternative energy source techniques manufactured
through green technology.
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42. Impacts of Green Marketing
People are insisted more on pure products- edible items,
fruits and vegetables based on organic farming.
Reducing the use of plastics and other plastic based
products.
Increased consumption of herbal products instead of
processed products.
Recommendation of jute, cloth and paper bags instead of
plastic carrying bags.
Increased use of herbal medicines, natural therapy and yoga
for a healthy living.
Strict provisions to protect forests, rivers and other natural
resources from being depleted, avoid deforestation, flora
and fauna.
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43. Impacts of Green Marketing
Imposing strict norms on pollution control. For example:
Odd/Even traffic rule
Restriction of duplication and adulteration.
Establishment of several national and international
agencies and firms to monitor efforts in relation to
pollution control and in the production of eco-friendly
products.
We need to just “Think Green” but to “Go green” in our
thoughts, behavior and then only our green actions will take
place.
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44. BENEFITS OF GREEN
MARKETING
Companies that develop new and improved
products and services with the 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.
Contd…
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45. BENEFITS OF GREEN
MARKETING
It ensures sustained long – term growth along
with profitability.
It saves money in the long run, though initially
the cost is more.
It helps companies market their products and
services keeping the environment aspect in
mind. It helps in accessing the new markets
and enjoying competitive advantage.
Most of the employees also feel proud and
responsible to be working for an
environmentally responsible company.
Contd…
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46. BENEFITS OF GREEN
MARKETING
Not everyone is aware of the importance of
protecting the environment, by making your
green marketing campaign can educate your
customers to become better at preserving
nature.
Well co-ordinated use of all green marketing
strategies will result in better physical
environment in terms of reduced air and
water pollution, waste energy depletion,
global warming, deforestation, depletion of
natural resources, and rate of landfills.
Contd…
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47. BENEFITS OF GREEN
MARKETING
Green based products are higher in quality
in terms of energy saving, performance,
convenience, safety, etc. which makes a
product better.
Brand loyalty is near all time low. In fact the
percentage of Americans who feel that some
brands are worth paying more for is
declining. According to a poll conducted by
the Porter Novelli consumers viewed
company’s record on the environment as an
important determinant of their purchase
decision
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48. Problems in Green
Marketing
People not willing to pay extra: The biggest challenge and obstacle
faced in India is that not many people are willing to spend an additional
amount to buy green products. Indian consumers are price sensitive. They
are not willing to spend more for products that are good for the
environment. A segment of consumers sees no personal gain in buying
eco-friendly products and hence are not willing to shell out extra amounts
for something which is not for their immediate personal benefit.
Selling same old product in the name of green product: Another factor
for less growth of green products is that many consumers in India believe
that there are no products such as “green products” rather these are
merely selling tactics adopted by the companies to augment their sales
and revenue.
The past experiences of the consumers in India have been rough in
respect of green products, for the reason that the producers and
manufacturers made use of the growing awareness of the concept of
green marketing in selling their same old product with same
ingredients/features etc. by merely employing new strategies of promoting
by naming it a “green product”.
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49. Continued….
Green washing: It is the term used when
producers, manufacturers or marketers make
false environment friendly claims for their
product and deliberately mislead their
consumers by incorrectly endorsing and
promoting its environmental benefits.
This again makes consumer averse of buying
green products as they are not able to
differentiate between the real and the fake
claims made by the producers in respects of the
products marketed as environment friendly.
Lack of proper knowledge: Although many
consumers are getting aware about the merits
of using green products, but it is still a new
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50. Establishing the Environment Saving
Policies: Though the government has
formulated several policies and laws in order
to give consumers the opportunity to make
better decisions or to motivate them to be
more environmentally responsible, but here
is always a difficulty in establishing policy that
would cover all environmental issues.
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51. Suggested Solutions
Implement strategies: It is not enough to talk green.
Companies must be green or at least be perceived as
making a concerted effort in the right direction. Strategies
in the arsenals of companies who do right by their
consumers and the environment include:
Benchmarking- Establish a benchmark to measure the
progress of company in terms of eco aspects. Self
certify the company’s progress and the efforts made
by company.
External Audit- Conduct a thorough environmental
audit to access current performance. To build
credibility, have your audit certified by an independent
third party and voluntarily report results to the
environmental protection agency and to the public via
corporate Environmental Progress Report.
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52. Employee Awareness Program: It is only when employees are aware of the
issues and given the authority to make changes that greener products will be
developed and environmentally sound corporate practices be put into place.
Conduct innovative & thought provoking educational programs to
heighten awareness for the issues & empower employees to act
positively on ecological issues.
Invite outside speakers to talk about trends in population, technology,
economy and the environment.
Constantly refine the product: Consumers intuitively understand that no
product is truly “green”. What they want from companies is reasonable
progress. So, companies should constantly integrate, learn & refine products
and processes. For this develop a plan, set measurable goals and work
towards them.
Effective communication: Effectively communicate with the consumers.
Always look for feedback from customers as well a from environmental
organizations. Be publically accountable; regularly issue reports on
environmental performance, advertise them and use them as a tool to
improve public relations. Clearly state the benefits and tell the consumers
what are the cost savings and how the product is eco friendly.
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53. Golden Rules of Green Marketing
Know your Customer: The company should know the needs of
the consumer and awareness of the consumer about the issues
that your product attempts to address.
For example: Whirlpool learned the hard way that consumers
wouldn’t pay a premium price for a CFC free refrigerator because
consumers didn’t know about CFCs at that time.
Empower Consumers: Make sure that consumers must feel,
either by themselves or in concert with all the other users of the
product, so that they can make a difference. This is called
“empowerment” and due to this main reason, consumers will buy
greener products.
Be Transparent: Consumers must believe in the legitimacy of the
product and the specific claims made in regard.
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54. Reassure the Buyer: Consumers must be made to
believe that the product performs the job, it is supposed
to do. Companies should not forego product quality in
the name of the environment.
Recognize changed customer expectations: It is not
enough to just make the green products. Companies
must fulfill the consumers expectations that changes
with time, like some people want products that are
pocket friendly and also helps to reduce the
environmental impact in their own lives too.
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55. Green Strategy Formulation
To adopt green marketing, the company must formulate strategy, commonly
known as Green Strategy. This may be SWOT Analysis or Environmental
Audit.
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56. STRENGTHS
Marketers get access to new markets and gain an advantage
over competitors that are not focusing on “Greenness”.
Marketers can charge a premium on products that are seen
as more eco-responsible.
Organizations that adopt Green Marketing are perceived to
be more socially responsible.
Green Marketing builds Brand Equity and wins Brands
Loyalty among customers.
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57. WEAKNESS
Most customers choose to satisfy their personal needs
before caring for the environment.
Overemphasizing greenness rather than customer needs
can prove devasting for a product.
Many customers keep away from products labelled “Green”
because they see such labelling as a marketing gimmick and
they may lose trust in the organization that suddenly claims
to be Green.
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58. OPPORTUNITIES
Marketing to segment which are becoming more
environmentally aware and concerned. These consumers are
demanding products that conform to these new attitudes.
Organizations perceive Green Marketing have a competitive
advantage, relative to the competitors who do not address to
environmental issues.
Example: Offering an Environmental friendly product and saving
resources, and relating them to internal strengths.
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59. THREATS
Uncertainty as to the environmental impact of present
activities, including that is perceived to be less
environmentally harmful.
Uncertainty as to which green marketing activities are
acceptable from a government perspective.
The possibility of a backlash from consumers or government
based on existing green marketing claims.
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60. Case Study (Starbucks)
Today many companies have switched to choose
green marketing campaign to promote they
products, but not all companies are quite serious in
the campaign, the seriousness of doing green
marketing campaign can be judged from the
campaign conducted continuously and sustainably.
In this case, Starbucks is quite serious in
implementing green marketing campaign, not just
trying to lure consumers alone but he really did to
save the planet.
Starbucks adopted many strategies that are quite
unique and very beneficial to the preservation of the
environment, not only interesting in terms of the
product but also in terms of action to prove its
seriousness in conducting the campaign.
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61. 1. Do modification in products
The first thing done by Starbucks is doing modification in the
product, taking into account a lot of cup waste that he will
produce when the consumer has come out of his shop.
Starbucks start to think to create a packaging that can be
recycled easily. As said by Starbucks: “It’s our commitment to
purchase only the highest quality, ethically sourced and
responsibly grown coffee. To reduce our own environmental
footprint and fight climate change. And to give back to the
neighborhoods and communities we’re a part of”.
This you can see in the picture below, you can see the start of
a change in a Starbucks-owned packaging paper cup which
started from 1971 to 2009 where packaging is Starbucks give
to consumers is always an improvement to be more eco
friendly.
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63. UNIVERSITY BUSINESS SCHOOL
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•In 1971, first starbucks opened in Seattlee’s pike place market.
•In 1984, Starbucks started the paper cups for beverages.
•In 1997, starbucks developed the recycled-content cup sleeve
as a way to protect customers from hot beverages and avoid the
waste of “double cupping.”
•In 2006, they launched the industry’s first hot beverage paper
cup with 10% post-consumer recycled fibre.
•In 2008, they rolled out a new plastic cup that has less of an
environmental impact than our original plastic cups.
•In 2009, they hosted a Cup Summit in Seattle, bringing together
all facets of our paper and plastic cup value chain to find
agreement on criteria for a comprehensive recyclable cup
solution.
64. 2. Get opportunity in the earth day
Earth day is an important day as a tangible manifestation of environmental
conservation; Starbucks certainly not miss to participate in activities that are
routinely performed in commemoration of earth day. Each year a different
theme Starbucks to commemorate the day. Few of them are:
A) 2011
On April 22, Starbucks invited everyone to bring in a reusable mug or tumbler
and get a free brewed coffee or tea. The customer choice of brew, hot or iced.
This is happening at participating stores in the United States and Canada.
Starbucks recognize the impact one can make through careful, conscious
choices. So he want to encourage and reward those of customer who use
tumblers or travel mugs in their daily routines. The customer will helping to
reduce the environmental impact!. This campaign mean anytime customer
bring in their own tumbler or travel mug to a participating Starbucks, they will
get 10 cents off drink every day.
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65. B) 2012
Starbucks Earth Day promotional campaign includes its green
project, The Big Picture, where thousands of New Yorkers trade in
their paper cups for reusable mugs. Each coffee cup placed on the
sidewalk leads to the formation of a design. In the end, the large
cup display forms an aerial mural of a sequoia tree.
To launch the campaign, Starbucks provided free coffee to
customers who brought in their own reusable mugs.
The campaign’s catch phrase “One person switching can save
trees. Together we can save forests” shows how individual actions
can lead to collaborative efforts to help the environment.
C) 2013
“Bring 10 used paper cups to get a coffee tumbler”. This is the
slogan for an environment protection campaign Starbucks Coffee
Korea will host to mark Earth Day, which falls on April 22.
The company has stockpiled 1,000 tumblers for the event that will
kick off at 11:30 a.m. at Seoul Plaza. During the event, it will also
distribute 3,000 flower pots and compost made from coffee
grounds.
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66. 3. Utilize Facebook for campaign
Facebook is a social media that are complete enough to provide
the necessary facilities to its users, it is not surprising that
Starbucks chose to do green marketing campaign in Facebook,
Starbucks actually not only choose Facebook account but there is
also use a Twitter, Google Plus and Instagram. But most the
activities can display that have been carried out by Starbucks is
Facebook.
we see the example images in the next slide that are taken from
Facebook page belongs to Starbucks. There you can see some
campaign events with the green theme has been done by
Starbucks starting from the year 2010 until now. Starbucks never
ceases to perform the update through his official account on
Facebook, it is not surprising that many consumers are getting
information about the event to be held by the Starbucks via this
medium so that each event is carried with the green theme of this
campaign can be fairly successful.
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69. Conclusion
Green marketing campaign is a new way of doing marketing;
of course it is not easy to do this kind of campaign, need
totality and continuities to do that, so you will be taken
seriously by your customers. With totality businesses you
can save the earth through your products and could even
propitiate for consumers who want to save the earth. Eco-
friendly campaign can give you more profit-fold as in my
previous article that discussed the benefits of doing green
marketing campaign.
As has been done by Starbucks can give you an example of
the seriousness of doing green marketing campaign will give
you get many benefit of it.
UNIVERSITY BUSINESS SCHOOL
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