Friday, October 2, 2020

Green Marketing with Special Reference to Malls



‘Green Marketing with Special Reference to Malls, GLOBUS, Vol. 3, No.1 Jul-Dec 2011, ISSN: 0975-721X. 

Green Marketing with Special Reference to Malls


Rajeev Gupta

Assistant Professor                                                                                    

IIMT College of Management                                             

Gr. Noida                                                                               

                                                                                                

Dr. Tarun Singhal

Professor

INMANTEC

Ghaziabad

Abstract

The world is facing the problem of waste disposition. This waste is not only from the usage of electronic items but also by various other elements like atomic reactors, lead, silicon, plastic etc.

The waste in large is also affecting the eco-system of earth. The “contribution” in this regard is from every part of the world, be it developed country or under developed country. The ratio differs from country to country. The problem in bigger sense is termed as “global warming”.

Now a day when the parameter of growth also incorporates the number of malls in a particular geographical area, the relevance of “green” has more significance. The malls do not carry or have very less area covered with green. The “coolness” is developed through air conditioners which create more heat and add more negativity to environment.

Environmental issues are now a day seeing more light and attention due to the active participants of various NGOs and other agencies. Therefore, malls owner need to bring new insight in this issue while marketise themselves. Their contribution in hygiene and sophistication, if backed by green revolution, may get more boost and incorporate more business for them.

 

Statement of Problem

“The needs of the present without compromising the ability of future generations to meet their own need”,

 

Introduction

 

Green is the word of the world. The growing concern with global warming and ecosystem preservation is forcing everyone into taking some serious steps towards a better world.

To protect and preserve the environment, many industries have started taking the matter seriously. Topping the list are retailers and FMCG companies that have rapidly learnt that being green and appearing green, makes great business combination.

The rate of environmental degradation has intensified.  The nineteenth century brought the first large scale pollution as companies geared themselves to produce goods as fast as possible, with virtual disregard for human or environmental well-being. Nations battled for industrial supremacy using raw materials and creating pollution at a staggering rate. As countries became economically stronger, competition also grew. More efficient production methods were employed, and few companies, if any, gave a thought to the impact they were having on their surroundings. With the increase in water pollution from the chemical works, and air pollution from the iron and steel industry, towns and cities began to pay the price for high industrial productivity.

Green marketing involves developing and promoting products and services that satisfy customer's want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental input on the environment.

 

Objective

  • To know about Green Marketing
  • What IT companies are doing with reference to Green  marketing
  • To know the upcoming mall culture in India & effect of green in Malls

 

 

What’s prompting them to go green?

 

One of the main reasons that is prompting retailers and FMCG companies to go green is the customer’s willingness to shell out extra money for green brands. The consumers have become conscious about the environment and thus prefer buying eco-friendly products. And this is reason enough to consider green branding.

“Nature is the lifeline of the business at Dabur. We have not merely incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to encompass our aspirations and responsibilities to the society and to the environment. It is this concept that inspires us to optimise our business performance to tackle the new and growing challenges of environment and technology,” says the spokesperson for Dabur.

FMCG players can reduce carbon emission at two levels, at the manufacturing and at the supply chain level. Some companies are developing their own eco-standards and product labelling.

Green marketing refers to the development and distribution of ecologically-safe products. It refers to products and packages that have one or more of the following characteristics:

 

           Less toxic

           More durable

           Contain reusable materials

           Made of recyclable material.

 

Support given by IT companies

 

Wipro, being one of the leading green IT brands, has taken various initiatives to help retailers reduce their carbon footprints and carbon levels. Wipro’s award winning platforms, the Global Command Center (GCC) and Global Service Management Center (GSMC) have been used for many years to help its customers manage their IT infrastructure, substantially reducing the costs of service delivery. “Over the past few years, we have invested a significant amount in research and development. This enables us to bring in the same structured services that are standardised in the IT infra world to business critical infrastructure for customers (like Kiosks for retail) and building infrastructure (like heating/cooling, lighting, and electrical systems) a truly end-to-end infrastructure solution. The key benefit to the customers is reduction of operating expenditure due to reduced field support costs, and energy costs,” says Kiran Desai, VP, Managed IT, Wipro Infotech.

Wipro also offers a power saving solution, which shuts down the desktops in retail shops, godown, back offices and places where desktops are not used by end user beyond their office hours. Wipro also suggests the retail layout to retailers to reduce load, which might also involve civil work.

Dabur has initiated several new green projects under which alternate sources of energy are proposed to be utilised as a substitute for boiler fuel. One such project is in which briquettes will be made out of herbal waste. A project to use wet herbal waste as fuel directly in the boiler is being initiated at Pantnagar, Uttranachal in collaboration with a Belgian company. A new husk based gasifier is being installed at the Nepal unit for reducing dependence on conventional fuels.

 

Key elements of “Green Marketing”

 

  • A balanced approach to the social, technological, economic and physical aspects of businesses and societies.
  • An emphasis on long term sustainable qualitative development rather than short-term unsustainable quantitative growth.
  • A holistic approach aimed at reversing the reduction list and fragmented approach of previous business theory and practice.
  • A consideration of consumers as real human beings rather than as hypothetical ‘rational economic entities.
  • An emphasis on meeting the genuine needs of consumers, rather than on stimulating superficial desires.
  • Recognition that consumers and society have multiple and sometimes conflicting wants and needs.
  • A view of the company and all its activities as part of the ‘product’ that is consumed.
  • A recognition that the large scale long distance nature of the current economy is not sustainable, and that in the future small and local will be beautiful.
  • Embracing the concept of eco-performance which incorporates the non-market outputs of the company, with performance of the product during and after use and the environmental impact of companies which contribute to the creation and marketing of the product elsewhere in the supply chain.
  • The pursuit of added socio-environmental value as well as added techno-economic value.

 

Sustainability and Green Marketing

 

Sustainability and green marketing initiatives will need to be addressed, as influences (such as government mandates, consumer awareness, competitor actions, etc.) converge and heighten. Green marketing and other sustainability practices are in the initial stages of being incorporated into modern trade. 

Kumar Rajagopalan, Chief Executive Officer, RAI said, “While every top business house in India has recognized retail as the big sector to invest in and be a big player in this sector, retail CEOs are working with great enthusiasm to meet the exacting detail requirements of this challenging business. Opportunities are apparent; however the pitfalls are just as possible.”

Rajagopalan further added, “In a business wherein the competitive landscape changes every day and customer preferences are re-defined often, retailers have to keep perfecting their capabilities around place, people, price, product, communication, supply chain, vendors and processes. Every CEO knows that there are lots of areas for strategic investments and many are making active trade-offs to achieve supremacy on some of the aspects of retail business. Our study shows the various aspects that retailers are trying to master and win in the market place.”

To transform into a ‘green’ sustainable culture, there is a need to balance consideration of the economic and technical impacts and aspects of businesses with understanding of their social and physical implications.

 

Retail scenario & upcoming mall culture in India

 

Traditionally retailing in India can be traced to  the emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the consumers. Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission. In the year 1990 experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains & Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches. The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1997 onwards saw an emergence of shopping centers, mainly in urban areas, with facilities like car parking targeted to provide a complete destination experience for all segments of  society . The emergence of hyper and super markets trying to provide customer with 3 V’s - Value, Variety and Volume. Expanding target consumer segment:  The Sachet revolution - example of reaching to the bottom of the pyramid.

 

It is one of India’s most dynamic and fast paced sectors. Huge untapped potential market, especially youth. Indian retail market is the fifth largest retail destination globally. Estimated to grow from US$ 330 billion in 2007 to US$ 427 billion by 2010 and further US$ 637 billion by 2015. At year end of 2010 the size of the Indian organized retail industry is estimated at Rs. 100,000 crore plus. It contributes to 10% of GDP of Indian economy.  The industry is growing at the rate of 49.73 per cent and we know that India’s middle classes are emerging at a high pace backed up by purchasing power with income growth of around 15% per annum. India is urbanizing at a rapid rate, with almost 50 cities over one million populations.

 

“Green” In MALLS

 

The  mall management companies need to know about what is the relevance of Green Marketing in order to protect the environment and to improve the quality of life and are concerned with issues that include conservation of natural resources, reducing environmental pollution and control of land use. This ultimately will lead to positively affect the society. Many companies are finding that consumers are willing to pay more for a green product. The last three decades have seen a progressive increase in worldwide environmental consciousness. This has been driven by a number of factors from increased media coverage to rising evidence of environmental problems such as the depletion of the ozone layer, acidification of rivers and forest degradation, global warming, the rise of pressure group activity, tougher legislation and major industrial disasters. Concern has moved from the local scale to a national and increasingly global scale.

It is now widely accepted that societies, economies, and the businesses within them need to find a more sustainable path to for future development. In the business world the vocabulary of management was suddenly expanded by the discussion of ‘green consumers’, ‘green markets’ and ‘green products’ and the practice of ‘environmental’ or ‘green marketing’. For majority of the malls improving environmental performance has, until recently, been a question of legislative compliance and occasional reactions to external events and pressures. Companies were increasingly pursuing competitive advantage and product differentiation by increasing investment in environmental marketing, green design and improving overall corporate eco-performance. In addition to these externally motivated changes, the realization is dawning within industry that sustainability will not be reached simply by demand-pull from the market and compliance-push from the regulators. The changes that are needed to safeguard the future of the environment and the economy must partly be driven from the business community, which means they must proactively integrate eco-performance into the strategies, systems and cultures of the organization.

 

Many malls are concentrating on Waste Hierarchy

 

The waste hierarchy refers to the 3Rs of reduce, reuse and recycle, which classify waste management strategies according to their desirability. The 3Rs are meant to be a hierarchy, in order of importance. The aim of the waste hierarchy is to extract the maximum practical benefits from products and to generate the minimum amount of waste.





  • Reduce                                                                      
  • Reuse and
  • Recycle

 

REDUCE: The mall management companies are looking desperately to reduce the operating cost of the malls. In this area they are facing fierce competition by nearby malls and unorganized sector. For this they have chalked out the strategy of reducing the waste of any kind i.e. save water, less use of plastic contained material etc. They have also tried to put “many eggs in the same basket” so that the overall cost of running it can be reduced. More over, the silent generators are also used to reduce the noise level at its lowest. These are the few measures taken by the malls.

They are promoting buy less and use less. Incorporates common sense ideas like turning off the lights, rain barrels etc. but also plays a part in Composting/Grasscycling (transportation energy is reduced), low-flow toilets, and programmable thermostats

 

REUSE: Now a days nokia and many other companies are promoting the concept of “REUSE”. The reason behind is not only the business but also an exercise to promote themselves as “society conscious” companies. The plastic bottles are containing the specific figures on it pointing out the times it can be reused. In this way the resources are not only get saved but the advertisement of that particular brand is also done at low cost.

Reuse in every day life is, in fact, prominent everywhere now a days. For eg. cars are far more popular second-hand than new. However, this is a trend which largely relates to costly items. For example, of the people who wouldn’t consider looking for second-hand shoes, a small proportion would think twice about living in a previously owned house – which is likely to have had a whole range of people sleeping, eating and toileting in it.

 

RECYCLE:  Means discards are separated into materials that may be incorporated into new products. This is different from Reuse in that energy is used to change the physical properties of the material. Initiatives include Composting, Beverage Container Deposits and buying products with a high content of post-consumer material.

 

It seems very odd but various metro cities are promoting the concept of “recycle” in their areas including malls. Recycling is the processes of collecting, processing, remanufacturing, and reusing materials instead of discarding them. This helps conserve raw materials and energy that manufacturers would otherwise use in producing new products. Recycling also reduces the amount of material going into landfills. Recycling helps lessen the pollution that may result from waste disposal. Reducing our consumption of materials and reducing the waste of materials also adds to the conservation of our resources.

 

Conclusion

Green marketing takes account of the wider relationship of the organization and its products & service to the surroundings. It is about a more aware, open, targeted and sensitive approach that integrates the strategic link between the company, the environment, and marketing, rather than being primarily concerned with tactical communications opportunities. The prime emphasis is on, developing relationships and satisfying separate Stakeholders needs in an environmentally and socially responsible manner. The key stakeholders are customers, investors, parent company, directors, employees, the community, legislators, pressure groups, suppliers, and the media.

Simple measures to go green

Recycle paper, plastic, aluminum, ink cartridges

Reuse packing materials and cardboard boxes.

Use double-sided printing when possible.

Reduce paper transactions by going digital for bill payment, vendor ordering, invoices, online banking, e-mail and faxing directly from your computer.

Switch to rechargeable batteries. Large office supply stores even have collection centers for recycling dead rechargeable batteries.

Use eco-friendly cleaning products that are biodegradable and non-toxic.

Purchase energy-efficient PCs, printers, and other equipment.

 

Bibliography

http://retail.franchiseindia.com/articles/Retail-Business-Practice/New-Trends/Green-ideas-to-optimise-retail-performance-157

 http://www.greenlivinganswers.com/archives/166

 http://social.ndtv.com/greenies/post#tab

 www.wikipedia.org/wiki/Green_marketing

 www.articlesbase.com

 http://en.wikipedia.org/wiki/Waste_hierarchy

 

Books Referred:

Philip Kotler, Marketing Management , Patparganj - New Delhi, Pearson Education, 2005

Magazines

Business world magazine, January 2009

 India Today magazine, January 2007

 Economic times, February 2007


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