Green strategies and green marketing.

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1. INTRODUCTION

For many decades, human kind has been clearing forests, burning coal, emitting carbon dioxide, and other harmful chemicals into the atmosphere at a
far greater rate than trees and oceans can balance. The carbon dioxide level is higher than it has been since the beginning of time. As a result,
temperatures have risen and ice caps are slowly melting away. The causes of these disasters are inherently caused by human activities (Appenzeller
and Dimick, 2004).

In recent times, more focus has been geared towards environmental issues such as global warming. Climate changes have brought attention to people
all over the world to take action in slowing down the causes of the ongoing global warming crisis.

In order for businesses to respond to climate change, companies have gradually been changing ways of doing business to decrease the negative
impact on the environment. While most corporations have already implemented some form of green strategies, the majority have yet to respond to the
global crisis.

In addition, other laws such as Assembly Bill No. 32 have mandated companies to adopt greenhouse gas emission measures to minimize greenhouse
gas emissions by year 2012. Companies must understand the importance of going green and construct enterprise-level green strategies that best fit
their business (Olson, 2008).

Consumer awareness of going green has also brought demand for green products. This in turn will encourage and force companies and businesses to
incorporate green alternatives to products and services. Statistical analyses of consumer behaviors have shown that customers are willing to pay a
higher premium for a greener product (Czamowski, 2009).

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In the short term, going green might mean higher costs, the long term benefits heavily outweighs the initial costs of going green. As environmental
awareness grows, a new trend of marketing strategy will take its place. This strategy, known as the green strategy, will ultimately dominate in the near
future.

1.1 Purpose of study

While some companies have already implemented some sort of strategies for going green, the majority of the companies have little to no plans in going
green. Even fewer companies have enterprise level strategies for going green.

The purpose of this report is to provoke thought about the potential destructiveness of global warming and what business can do to prevent further
damage to our eco-system. This study would further focus on green strategies and green marketing and their importance for corporations. Corporations
can learn from this research paper about the benefits of going green. In addition, the companies should not only take on the initiative of going green but
should also take on the responsibility of educating consumers on going green or demanding for greener products. With these changes, our ecosystem
and environment can maintain a healthier lifestyle. The research would address issues such as the following:

* What are green strategies and enterprise-level green strategies?

* Ways for corporations going green

* How green strategies can help businesses operate more efficiently

* Driving forces for corporations to go green

* Corporations going green under different pressures

* The emerging green markets and green consumers

* How to improve green marketing

* How to execute green strategies

2. LITERATURE REVIEW

2.1 Green strategies

"A green strategy facilitates decisions and transformation initiatives that improve the environment" (Olson, 2008). Green Strategies help individuals,
corporations, and non-profit organizations change behaviors and decisions on a more responsible way--environmentally, socially and economically
(Green strategies, n.d). From business point of view, a green strategy is a good way to invest in future energy alternatives for big or small companies
alike. In the long run, it will reduce energy bills and help improve the environment.

For companies seeking to go green, there is basically a strategy known as the "enterprise-level green strategy." An enterprise-level green strategy
helps a company make decisions based on its impact to the environment. Like any other company strategies, the enterprise-level green strategy
should formulate ideas and address the question of environmental friendliness. As a company sides with going green, other benefits such as social
responsibility and cost of bills will also be positively affected. Having a clear vision to go green ultimately leads a company in the right direction of
making good decisions (Olson, 2008).

2.2 Go green

"Practicing green is inherently proactive; it means finding ways to reduce waste and other-wise be more environmentally responsible, before being
forced to do so through government regulations." Businesses could practice green by voluntarily recycling and attempting to reduce wastes and the
amounts of resources they consume in their daily operations (Shi, Kane, 1996).

2.3 Green marketing

Green marketing is the promotion of products or services in a way that encourage environmental safety. Consequently, green marketing encompasses
a wide scope of actions some of which include product modifications, changes of product process and packaging, and advertisement modification
(Guides for the use of environmental marketing claims, n.d.). Green marketing also helps to build green brands for products and helps to maintain
sustainability of products along the product life cycle.

2.4 Green markets

Going green has actually been a huge development in many countries. Many companies have emerged to produce green products to sell to
consumers who make buying decisions based on environmental criteria. As the market grows, more companies will attempt to dip into this green
market segment to become the pioneer and dominant supplier (Hartmann, Ibanez, 2006).

2.5 Green products

A product is considered "green if it operates cleaner or saves money and energy" compared to its non-green counterparts (Shi, Kane, 1996). Many
buyers who seek to go green are there for obvious reasons. Some of these reasons include health improvement, lowering cost of bills, and saving the
environment. The best marketing strategy for getting people/companies to go green is to let the consumers be aware of the positive effect of the
product to the environmental. Bringing environmental awareness can help tip the scale for those hesitating on going green (Hartmann, Ibanez, 2006).

2.6 Green consumers

Public surveys given out in the United States indicate that an average consumer is willing to pay up to five percent more for greener products. The
extra cost of five percent comes from green strategies such as, reducing, recycling, reusing, or redesigning of existing products (Kassaye, 2001).

3. WAYS TO PRACTICE GREEN

In order to minimize negative impact on the environment, companies from different sectors are participating in being green in various ways. Some
companies simply implement energy-efficient equipments while some companies change the way of their operation and manufacturing. These
examples will be explained more in detail next.

3.1 Switching to energy efficient equipment

Small actions taken to go green and save energy can bring big benefits for companies. An example of implementing a green strategy for a corporation
is to change all office light bulbs to energy efficient light bulbs. This minor change can help the environment and bring down the cost of operation
(Jennings,. 2007).

While some businesses change their way of conducting business, some businesses try to change the behavior of consumers. Take the world famous
Sheraton for example. Sheraton hotel in Chicago for instance has been asking all guests to use the same towels and linens for hotel stays of over one
night. Unless guests indicate to have their towels and linens replaced daily, the hotels will assume that no replacement in towels and lines are
necessary. According to hotel estimates, this conservation program could help reduce the usage of 1 billion BTU of energy and 2.1 million galls of
water per year (Kassaye, 2001).

With green strategies in place, cost of operations could lower significantly. At the same time, reputation as a company going green would also build up
leading to a better competitive edge.

3.2 Adopting renewable energy and cleaner technology

In addition to reducing costs, going green is also a good way to invest in the future. As the energy crisis escalates over these past years, government
authorities have been considering enforcing new policies which restricts the amount of carbon emissions. Many investors and companies have now
been trying to develop new sources of renewable and clean technology.

A great example of this new invention is the well known Toyota Prius hybrid car. Hybrid vehicles have several incentives which are attractive to people
looking to purchase a car. Alongside of saving gas, the hybrid car reduces carbon dioxide emission into the atmosphere. Hybrid vehicles have been
more popular for business transportation and product distribution these coming years and automobile companies have been the major force for staying
competitive.

3.3 Greener the way of operation: Green packing

Green packaging is defined as a way to package parts in safe way that minimizes impact to the environment. This is important because it will slow
down the usage of new resources which will allow for higher sustainability with the current allocated amount of resources. Green packaging also
involves recycling and reducing packing materials (Kassaye, 2001).

In addition, packaging is probably the first and biggest action a company can take in practicing green (Shi, Kane, 1996). By switching to green
packaging, corporations will allow their products to gain a competitive edge will at the same time improving their public image (Kassaye, 2001). Several
grocery stores such as Trader's Joe, Albertsons and Ralphs have been encouraging customers to use their reusable bags for grocery shopping.
Indeed, their movements have attracted public attention and brought good reputation to their business.

4. DRIVINE FORCES FOR GOING GREEN

There are many driving forces that motivate people to go green. It is especially important to take on the responsibility of going green because our
environment in the long term will be more stable and healthy. Many companies tend to be focused on accumulating huge profit margins at the expense
of the environment. Companies should be held accountable for maintaining a clean environment while at the same time generating profit margins.
Many corporations have started what is known as a "feel-good factor" as an inventive for maintaining a clean environment. (Bansal, Roth, 2000). This
"feel-good factor" helps build employees moral knowing that their company is doing all they can to go green. This in turn leads to higher employee
productivity. From a consumer's point of view, consumers will also feel better about purchasing or using a product knowing that it is cleaner, healthier,
and safer (Brandt, 2007).

Starbucks for example, has started using hot beverage cups that made of ten percent post-consumer recycled fiber(PCF) in order to cut wood usage
and waste. Although the costs of these cups are a bit higher compared to the less recyclable ones, Starbucks has saved over 118,000 trees since the
time of change. In turn, Starbucks has had increased revenue along side higher employee productivity (Starbucks, 2009).

A company's image often accurately reflects its attitude in taking responsibility with its products and services. As a company heads towards becoming
green, its image for being environmentally friendly will build through time. Profit margins will rise as consumers become more aware of a company's
green oriented image.

4.1 Increased competitive advantages

The business world is a world that is very realistic in a sense that the free market cuts those who are unprepared and uplifts those who are strong. To
survive in this very competitive environment, gaining a competitive edge is very important. Implementing green strategies will allow corporations to be
more efficient in manufacturing, by way of resources reducing or costs saving, thus largely gaining competitiveness over competitors.

Businesses can start from evaluating its manufacturing process and looking for where waste can exist in an organization. An example of a success
story is one carried out by a big company. IBM a high tech company has launched its newest project "Project Big Green" in efforts to reduce the energy
consumption. This project is essentially a 1 billion dollar investment to drastically increase the efficiency of IBM products. IBM products and services
that follow the steps deemed necessary for Project Big Green will cut energy usage by an estimated 42 percent. The operational costs can be reduced
by 50 percent off; in other world the IT capacity can be doubled without increasing costs, and most importantly, carbon emissions are decreased. "It is
a win-win-win for all" (Molloy, 2007).

4.2 Government and environmental regulations compliance

More and more government regulations have been slowly gone into place to prevent the effects of global warming and other environment hazards. The
government is also encouraging companies to go green in order to decrease any harmful effect on the environment. Strict regulations such as heavier
punishments for those who purposely break the law and government subsidies for companies that encourage a greener environment through the use
of new technology are among some of the new incentives put into place (Shi, Kane, 1996).

In addition, other laws such as Assembly Bill No. 32 have mandated companies to adopt greenhouse gas emission measures to minimize greenhouse
gas emissions by year 2012. Many business's have started early by taking immediate actions in going green (AB No. 32).

Implementing green strategies brings multiple benefits for companies including a bigger profit margin alongside impenetrable reputation. It is only a
matter of time before all companies are required to go green.

5. CORPORATIONS GOING GREEN UNDER DIFFERENT PRESSURES

While many people believe that the reason for going green is generally demanded by the consumers, data findings reveal that corporations go green
for other reasons. In general, corporations go green for the desire of a more comprehensive and environment oriented program. Most of all, the pursuit
for going green is driven by the fact that costs can be lowered leading to better financial goals. The size of the firms (sales revenue) and whether a firm
primarily manufactures consumers good also factors in to its strategy for going green (Kassaye, 2001).

5.1 Sources of pressure

The pressure to go green is often demanded by consumers. For large firms, the motive for going green are likely to be driven by pressures from
consumers, the need for better consumer-provider relation and cost concerns. For mid-size companies, the costs and competition and government
regulation is the driving force for going green. Lastly, small companies want to go green given that costs can be reduced and fear of violating
government regulations (Kassaye, 2001).

5.2 Response to green actions

Going green is a choice for all firms to make and essentially there are 3 actions of choice. The 3 choices includes no action, initiate change, meet the
competition (Kassaye, 2001). More details about these 3 plans of action will be discussed in the latter part.

* No action

The no action plan is one that describes companies who do not have an active green strategy. These companies are ones that decide to not derive an
immediate green plan. The reason behind taking no immediate action is primary due to the fact that companies hope that this problem will be diluted
and forgotten over time. By not taking action however, many valuable experience of going green and customer reputation may be reflected in the
financial book sin the long run (Kassaye, 2001).

* Initiate change

On the contrary to doing no changes, some companies opt to take immediate change for going green. Over 60 percent of companies have taken the
initiative to come up with green programs. Some of the first companies to benefit from gong green include Wal-Mart's Eco-store and McDonald's
McRecycle. By doing so, these companies will eventually cut costs and gain a competitive edge compared to companies taking no actions (Kassaye,
2001).

* Meet the competition

The final plan of choice is to meet the competition. Meeting the competition essentially means waiting for other companies to take action on going
green. If other companies are taking action on going green, competition will eventually drive these companies to meet the competition (Kassaye,
2001).

There are many reasons that influence upper level management in their decision to go green. Pressure from government regulation, public concern,
environmental concern, and cost saving opportunities have influenced firms to go green or not at all (Banerjee, 2001).

6. EMERGING GREEN MARKETS AND GREEN CONSUMERS IN THE FUTURE

6.1 Changing consumer behaviors

Changing consumer behavior is often the fastest way to green. This trickle down strategy educates consumers about environmental hazards and lets
them be aware of green products. This in turn creates an environment for consumers to buy green products. According to a recent report by McKinsey
survey, 80 percent of consumers worry about global warming and environmental issues impacted by the products they purchase. The study also points
out that 33 percent of the consumers are willing to pay a small price premium on green products (Bonini, Oppenheim, 2008). By educating consumers
to go green, big and small companies alike are forced to produce and market green products demanded by consumers (Kassaye, 2001).

6.2 Obstacle in marketing green products

In 2007, a chain store survey reports that 25 percent of 822 people surveyed in the U.S. reported ever buying a green product. To say the least, many
consumers are still unaware of green products that are available in the market. Take the hybrid car for example. In 2007 the market share of a hybrid
was only about 2 percent. Corporations should make more efforts in advertising and educating their green products that are out in the market. This is of
course with its difficulties due to the limited amount of budget usually allocated in marketing green products. Eventually, corporations will need to
rethink strategies that involve consumer awareness of global warming, climate change and other potential problems of using non-green products. Non-
profit organizations should also take on the responsibility to inform citizens about the benefits of going green (Bonini, Oppenheim, 2008).

6.3 Influence of Eco-label

Another interesting finding is that products with Eco-label also have influence on consumer behaviors. Certain labels on products can help increase its
awareness to consumers. A study from the Natural Marketing Institute reveals that Energy Star, Recycled Logo, USDA Certified, and Fair Trade
Certified are among the most successful Eco-labels available, with Energy Star and Recycled Logo receiving the most impact with 66 percent and 54
percent most likely to purchase respectively. Therefore to make a product more revealing and persuasive, corporations can get their products certified
with the Energy Star or Recycled Logo label (Environmental Leader, 2008).
7. MARKETING OF GREEN PRODUCTS

Successful marketing of green products can help boost a company's image and reputation. It can also retain customer loyalty. With the right amount of
awareness and marketing, customers will be more willing to make a change to support green products (Kassaye, 2001).

If indeed consumers are willing to spend a little bit more on environmentally friendly products, more marketing strategies and budgets should given to
promote these green products. In return, sales will rise, costs will be lowered, and cleaner environment can be achieved.

8. MANAGERIAL IMPLICATIONS

The environmental impact of business activity has been a major factor for corporations, shareholders and customers. The demand for improved
environmental performance has been greatly increased over the years due to the many benefits it brings (Banerjee, 2001).

8.1 Office fact sheet

Recycling is one way to go green and a very important way to be environmentally safe. Here are some facts about how much garbage is produced
yearly and how much potential can be reached from recycling. Over the past 30 years, the US garbage volume has grown from 88 million tons to 196
tons per year dating back to 1960. This is mainly due to a population increase but also garbage generation has increased (Shi and Kane, 1996).

* US residents produce 1.6 pounds more garbage compared to 30 years ago.

* Businesses like offices, restaurants and retail stores produce roughly 33 percent of all waste generated in the U.S.

* Office paper is ranked third among top paper waste generating categories. It is one of the fast growing paper waste generating sources. In 2010, it is
estimated that 6.4 percent of all paper waste will be generated by office papers.

To help keep the environment clean, corporations could start from implementing green strategy in the office. Small changes in recycling habits for small
or big companies can make a big difference in keeping the environment safe.

Secondly, businesses can make manufacturing processes more efficient by reducing unnecessary materials. Setting new green goals or making
changes can help identify the non-green operational parts of a company.

Using newer technologies that create less waste can also help a company go green. For example, if a company owns a fleet of cars and needs to
change cars, using hybrid vehicles can be a good option for saving gas and emitting less pollution. In the long run, the cost of operating these vehicles
will also be reduced. In addition, as more and more companies go green, a part of the pressure and competition will be how fast and efficient a
company is in going green. The earlier a company starts to go green the higher the chances of the company staying competitive and meeting green
legislations in the future.

Lastly, companies from different business sectors all need to focus on green marketing. Environmental concerns should be considered in all processes
or marketing. The reason for green marketing is to help educate the consumers on the benefits green products bring. In essence, consumers will start
to demand for greener products, thus driving the market to produce green products from the demands.

Nowadays consumers are more aware of environmental issues and the importance of going green. By adopting green marketing, companies can gain
a good public image while at the same time giving their products a competitive edge. This is the key in sustaining the life cycle of a product (Kassaye,
2001).

9. CONCLUSION

Many companies have been under the pressure to meet environmentally friendly policy as well as increasing sales. Many have started to take action in
going green by coming up with green strategies that will help reduce waste and energy.

A successful marketing strategy is one that sells a product successfully at a lower cost. By spending the effort and time in developing green products,
marketing strategies can be geared to deliver these products at a lower cost. With lower maintenance and operation costs, green products can help cut
costs and reduce harmful emission into our atmosphere.

Companies that take the initiative to plan for going green early will ultimately have a better competitive edge when regulations mandate green
strategies in corporations. The benefits of a company going green are beyond reproach. Along with lowered carbon dioxide emissions and less waste
production, going green can ultimately help a company reduces its costs and increase business opportunities. It is strongly suggested for a company to
go with green strategies. History alone thus far has proven that going green is beneficial not only to the environment but also to the overall health of a
company.

REFERENCES:

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Katherine Liang, California State University-Fullerton, USA

Peng Chan, California State University-Fullerton, USA

Sittiwat Kamkatwong, DBS Bank, Bangkok, Thailand