Green Marketing

PROJECT ON GREEN MARKETING
Project Report On
"A Study of Green Marketing Strategy
With reference to the Less Energy consumption: LG
refrigerators
Submitted to
YCMOU, Nasik.
In partial fulfillment of the Requirement for the

award of the degree of
Master of Business Administration (MBA)
By
Mr. Siddharth Dakram Ramteke
PRN No. 2013017002102354
Under the Guidance of

Prof. Kshamata Sachin Lad
Through
The Coordinator
Study centre code 3509
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PROJECT REPORT ON
GREEN MARKETING
STRATEGY
Project Guide, Prepared By,

Prof. Kshamata S Lad Mr. Siddharth D Ramteke
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CERTIFICATE
This is to certify that the study presented by Mr. Siddharth D Ramteke to

Yashwantrao Chavan Maharashtra Open University in part completion of MBA and
has been done under my guidance in the year 2014-2015.
The Project is in the nature of original work that has not so far been submitted
for any other course in this institute or any other institute. Reference of work and
relative sources of information has been given at the end of the project.
Signature of the Candidate
Signature of the Guide

(Prof. Kshamata Sachin Lad)
3
ACKNOWLEDGEMENT
With a deep sense of pride, satisfaction and gratitude, I present my project

report on A Study of Green marketing Strategy with reference toLess Energy
consumption: LG refrigerators.
This project could not have seen the light of the day without the inspiring of
Prof. Kshamata Sachin Lad who guided me like a beacon in the dark. I would like to
thank him for giving me his valuable time, suggestions and practical views throughout
my project work, without which the completion of the project would have been a
difficult journey. Also to mention all batch mates for their selfless support and help.
Mr. Siddharth D Ramteke
4
SYNOPSIS
INTRODUCTION
GREEN MARKETING is the business practice that considers consumers

concerns with regards to preservation and conservation of the natural environment
(Coddington,1993). Green marketing that has been previously and primarily focused
on the ecological context has been shifted to more sustainability issues in the
marketing efforts and main focus now is in socio-economic and environmental
context. Whereas, green market is identified as a part of market segments based on the
greennessof the consumer (Charter etal., 2002; Simintiras et al.,1994). Therefore,
green marketing is now dealing with fair trade of socio-economical benefits aswell as
environmental responsibilities through the green business.According to the American
Marketing Association, green marketing is themarketing of products that are
presumed to be environmentally safe. Thus green marketingincorporates a broad
range of activities, including product modification, changes to the production process,
packaging changes, as well as modifying advertising.
Promotional activities aimed at taking advantage of the changing consumer

attitudes toward a brand. These changes are increasingly being influenced by firm's
policies and practices that affect the quality of the environment, and reflect the level
of its concern for the community.
"Green Marketing" refers to holistic marketing concept wherein the

production, marketing consumption an disposal of products and services happen in a
manner that is less detrimental to the environment with growing awareness about the
implications of global warming, non-biodegradable solid waste, harmful impact of
pollutants etc., both marketers and consumers are becoming increasingly sensitive to
the need for switch in to green products andservices. While the shift to "green" may
appear to be expensive in the short term, it willdefinitely prove to be indispensable
and advantageous, cost-wise too, in the long run.
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As a philosophy, green marketing runs parallel to the societal marketing

concept and espouses the view that satisfying customers is not enough and marketers
should take into account ecological interests of the society as a whole. It is a part of
Corporate Social Responsibility (CSR). It is only since 1990's that the researchers
have started academically analyzing consumers and industry attitude towards green
marketing. Most of the studies are done in developed countries but such studies
however, remain conspicuously missing in the context of developing nations like
India.
LG CORPORATION
LG Corporation is a South Korean multinational conglomerate corporation. It

is the second-largest Company of its kind in South Korea, following Samsung, and its
headquarters are situated in the LG Twin Towers building in Yeouido-dong,
Yeongdeungpo-gu, and Seoul. LG makes electronics, chemicals, and telecom products
and operates subsidiaries such as lg electronics, Zenith, LG Display, LG Telecom and
LG Chem in over 80 countries. Created in 1947 as "Lucky-Goldstar", it assumed the
abbreviated name of "LG" in 1995. LG is also an abbreviation of "Lucky Geum
seong" in South Korea, which is translated into English as Lucky Goldstar. Before
then, many electronic products were sold under the brand name Goldstar, while some
other household products (not available outside South Korea) were sold under the
brand name of "Lucky."
The Lucky brand was famous for producing household cleaning products and
laundry detergents in South Korea. Marketing strategy is a process that can allow an
organization to concentrate its resources on the optimal opportunities with the goals of
increasing sales and achieving a sustainable competitive advantage. Marketing
strategy includes all basic and long-term activities in the field of marketing that deal
with the analysis of the strategic initial situation of a company and the formulation,
evaluation and selection of market-oriented strategies and therefore contributes to the
goals of the company and its marketing objectives. Green Marketing has become one
of LG's Corporate Social Responsibilities. As part of LGs strategy to improve on the
environment, Green Marketing has being employed by LG Electronics Company in
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the development and marketing of products like the LG refrigerators designed to

minimize negative effects on the environment. The recent Green product is the LG
refrigerators that have the energy star logo on it.
This energy star logo is an indication that LG Company is aware of the green
house effect and therefore is participating in the reduction of greenhouse gasses by
striving to produce energy saving products for its customers. Interestingly,
environmentally aware consumers tend to earn more and are willing to pay more for
green products, LG, Electronics has made it a prime concern to educate consumers on
how to use the Green LG refrigerators.
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IMPORTANCE AND SIGNIFICANCE:
Today's consumers are becoming more and more conscious about the
environment and are also becoming socially responsible. Therefore, more companies
are responsible to consumers' aspirations for environmentally less damaging or
neutral products. Many companies want to have an early-mover advantage as they
have to eventually move towards becoming green.
Green marketing offers business bottom line incentives and top line growth
possibilities. While modification of business or production processes may involve
start-up costs, it will save money in the long term. For example the cost of installing
solar energy is an investment in future energy cost savings. Companies that develop
new and improved products and services with environmental impacts in mind give
themselves access to new markets, substantially increase profits and enjoy
competitive advantages over those marketing non environmentally responsible
alternatives.
Some of the advantages of green marketing are,
1. It ensures sustained long-term growth along with profitability.
2. It saves money in the long run, thought initially the cost is more.
3. It helps companies market their products and services keeping the

environment aspects in mind.
4. It helps in accessing the new markets and enjoying competitive advantage.
5. Most of the employees also feel proud and responsible to be working for an
environmentally
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RATIONALE
Greening product or market is viewed as the outcome of rational strategic

choice. It may thus involve the search for different types of competitive advantage.
Green marketing organization fail to promote green marketing however read to
1. Organizations perceive environmental marketing to be an opportunity that

can be used to achieve its objective.
2. Organizations believe that they have to be more ethically and socially

responsible.
3. Eco friendly competitor pressure makes the firms to change their

environmental marketing activities.
4. Cost factors associated with waste disposal, or reductions in material usage

forces firms to modify their behavior in favor of green marketing.
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4. OBJECTIVES:
1. To Study consumer preference shift from non-green products to green

products.
2. To Study Consumer awareness for environmental concern.
3. To study the future of consumer preference for green products.
4. To Study the impact on the companies, this can establish them with a green
Image, will have distinctive advantages in the marketplace.
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HYPOTHESIS
Following hypothesis were formulated to articulate the objectives of the

present research:
1. Response of consumers sales increased to green marketing strategy in the

market.
2. LG is successful to adopt green marketing strategy in India for the promotion

of less energy consuming Refrigerators.
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RESEARCH METHODOLOGY
The methodology followed for conducting the study includes the specification
of research design, sample design, questionnaire design and data collection used for
analyzing the collected data.
1. RESEARCH DESIGN The research design which will be used for this study
is of descriptive type.
2. SAMPLE SIZE The sample size would be consisting of:
a. 100 Consumers from Lal Chakki, Ulhasnagar

b. 10 shopkeepers from Ulhasnagar.
3. SAMPLING DESIGN Since it is difficult to contact the entire population,

sampling techniques would be adopted. Consumers and Shopkeepers would be
interviewed using through Quantitative Analysis.
4. DATA COLLECTION
a. The primary data will be collected by using questionnaires. Like yes or

no question. A five point scale will be used such as strongly disagree,
disagree, neutral, agree and strongly agree.
b. Face to face interview would be held to reveal the acceptance level of
customers towords lpg
5. TABULATION, ANALYSIS AND INTERPRETATIONS :

On the basis of classifications, tables to be prepared. bar graph, scatter
graph, pie chart These tables are to be set for interpretation based on
Qualitative Analysis using Industry expertise.
6. REPORTING SYSTEM :
The overall reporting will be consisting of use of tables, diagrams (pictograms,
pie-diagrams, histograms etc.), photographs and other appropriate visual
presentations as it will emerge as required in the study
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EXPECTED CONTRIBUTION
This project will help to know consumer preference between non-green

products and green products, Consumer awareness for environmental concern, futures
of consumer preference for green products, Green marketing Strategy With reference
to LG make of less energy consuming Refrigerators.
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CHAPTERISATION
Chapter I : Introduction
Chapter II : Theoretical Background
Chapter III : LG Corporation Profile
Chapter IV : Data Compilation
Chapter V : Data Presentation and Analysis
Chapter VI : Finding and Inference
Chapter VII : Suggestion and Conclusion
BIBLIOGRAPHY
ANNEXURE
PAGE NUMBER
CERTIFICATE 3
ACKNOWLEDGEMENT 4
SYNOPSIS 5
Chapter 1 Introduction 14
Chapter 2 Theoretical Background 42
Chapter 3 Voltas company ltd Profile 43
Chapter 4 Data compilation 54
Chapter 5 Data presentation and Analysis 55
Chapter 6 Findings and Inference 61
Chapter 7 Suggestions and Conclusion 61
BIBLIOGRAPHY
ANNEXURE
14
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CHAPTER 1: INTRODUCTION
INTRODUCTION
The term Green Marketing came into prominence in the late 1980s and 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".
The first wave of Green Marketing occurred in the 1980s. 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. In 1987 a document prepared by the World Commission on
Environment and Development defined sustainable development as meeting the
needs of the present without compromising the ability of future generations to meet
their own need, this became known as the Brundtland Report and was another step
towards widespread thinking on sustainability in everyday activity. Two tangible
milestones for wave 1 of green marketing came in the form of published books, both
of which were called Green Marketing. They were by Ken Peattie (1992) in the
United Kingdom and by Jacquelyn Ottman (1993) in the United States of America.
In the years after 2000 a second wave of Green marketing emerged. By now
CSR and the Triple Bottom Line (TBL) were widespread. Such publications as a 2005
United Nations Report, then in 2006 a book by Al Gore and the UK Stern Report
brought scientific-environmental arguments to a wide public in an easy to understand
way. This knowledge assessed the implications of moving to a low-carbon global
economy and the potential of different approaches.
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This new wave of Green Marketing differed from the first wave in many
respects. It is curious to note that Green Marketing Wave 1 followed an economic
recession, whereas Green Marketing Wave 2 came before the global recessions that
come to be known as the Credit Crunch. This difference may be significant in that it
may suggest that Green Marketing is here to stay. The green marketing concept
dictates, amongst other things, less use, recycling and avoiding waste, just some of the
ways society reacts at times of recession. (see Bradley 2003 for 6 green marketing
strategies).
According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for

Innovation) from an organizational standpoint, environmental considerations should
be integrated into all aspects of marketing new product development and
communications and all points in between. The holistic nature of green also suggests
that besides suppliers and retailers new stakeholders be enlisted, including educators,
members of the community, regulators, and NGOs. Environmental issues should be
balanced with primary customer needs
The past decade has shown that harnessing consumer power to effect positive
environmental change is far easier said than done. The so-called "green consumer"
movements in the U.S. and other countries have struggled to reach critical mass and to
remain in the forefront of shoppers' minds. While public opinion polls taken since the
late 1980s have shown consistently that a significant percentage of consumers in the
U.S. and elsewhere profess a strong willingness to favor environmentally conscious
products and companies, consumers' efforts to do so in real life have remained
sketchy at best. One of green marketing's challenges is the lack of standards or public
consensus about what constitutes "green," according to Joel Makower, a writer on
green marketing.
In essence, there is no definition of "how good is good enough" when it comes

to a product or company making green marketing claims. This lack of consensus -- by
consumers, marketers, activists, regulators, and influential people -- has slowed the
growth of green products, says Makower, because companies are often reluctant to
promote their green attributes, and consumers are often skeptical about claims.
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Despite these challenges, green marketing has continued to gain adherents,

particularly in light of growing global concern about climate change. This concern has
led more companies to advertise their commitment to reduce their climate impacts,
and the effect this is having on their products and services
A GREEN MARKET IN NEWCASTLE
A GREEN MARKET IN NEWYORK
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WHAT IS GREEN MARKETING?
Unfortunately, a majority of people believe that green marketing refers solely

to the promotion or advertising of products with environmental characteristics. Terms
like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally
Friendly are some of the things consumers most often associate with green marketing.
While these terms are green marketing claims, in general green marketing is a much
broader concept, one that can be applied to consumer goods, industrial goods and
even services. For example, around the world there are resorts that are beginning to
promote themselves as "ecotourism" facilities, i.e., facilities that "specialize" in
experiencing nature or operating in a fashion that minimizes their environmental
impact.
Thus green marketing incorporates a broad range of activities, including

product modification, changes to the production process, packaging changes, as well
as modifying advertising. Yet defining green marketing is not a simple task. Indeed
the terminology used in this area has varied, it includes: Green Marketing,
Environmental Marketing and Ecological Marketing. While green marketing came
into prominence in the late 1980s and early 1990s, it was first discussed much earlier.
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". Since that time a number
of other books on the topic have been published.
The AMA workshop attempted to bring together academics, practitioners, and

public policy makers to examine marketing's impact on the natural environment. At
this workshop ecological marketing was defined as:
The study of the positive and negative aspects of marketing activities on

pollution, energy depletion and non-energy resource depletion.
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This early definition has three key components
1. It is a subset of the overall marketing activity;

2. It examines both the positive and negative activities; and
3. A narrow range of environmental issues are examined.
While this definition is a useful starting point, to be comprehensive green

marketing needs to be more broadly defined. Before providing an alternative
definition it should be noted that no one definition or terminology has been
universally accepted. This lack of consistency is a large part of the problem, for how
can any issue be evaluated if all researchers have a different perception of what they
are researching. The following definition is much broader than those of other
researchers and it encompasses all major components of other definitions. The
definition is
Green or Environmental Marketing consists of all activities designed to

generate and facilitate any exchanges intended to satisfy human needs or wants, such
that the satisfaction of these needs and wants occurs, with minimal detrimental impact
on the natural environment.
This definition incorporates much of the traditional components of the

marketing definition that is "All activities designed to generate and facilitate any
exchanges intended to satisfy human needs or wants". Therefore it ensures that the
interests of the organization and all its consumers are protected, as voluntary
exchange will not take place unless both the buyer and seller mutually benefit. The
above definition also includes the protection of the natural environment, by
attempting to minimize the detrimental impact this exchange has on the environment.
This second point is important, for human consumption by its very nature is
destructive to the natural environment. (To be accurate products making green claims
should state they are "less environmentally harmful" rather than
"Environmentally Friendly.") Thus green marketing should look at minimizing
environmental harm, not necessarily eliminating it.
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WHAT ARE GREEN PRODUCTS

OR
ENVIRONMENTAL PRODUCTS
Although no consumer product has a zero impact on the environment, in

business, the terms green product and environmental product are used commonly
to describe those that strive to protect or enhance the natural environment by
conserving energy and/or resources and reducing or eliminating use of toxic agents,
pollution, and waste.
Greener, more sustainable products need to dramatically increase the

productivity of natural resources, follow biological/ cyclical production models,
encourage dematerialization, and reinvest in and contribute to the planets natural
capital. Escalating energy prices, concerns over foreign oil dependency, and calls for
energy conservation are creating business opportunities for energy-efficient products,
clean energy, and other environmentally sensitive innovations and products
ONE OF THE MOST COMMONLY USED GREEN PRODUCTS THE PHILIPS CFL
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WHY IS GREEN MARKETING IMPORTANT?
The question of why green marketing has increased in importance is quite

simple and relies on the basic definition of Economics:
Economics is the study of how people use their limited resources to try to
satisfy unlimited wants.
Thus mankind has limited resources on the earth, with which she/he must
attempt to provide for the worlds' unlimited wants. In market societies where there is
"freedom of choice", it has generally been accepted that individuals and
organizations have the right to attempt to have their wants satisfied. As firms face
limited natural resources, they must develop new or alternative ways of satisfying
these unlimited wants. Ultimately green marketing looks at how marketing activities
utilize these limited resources, while satisfying consumers wants, both of individuals
and industry, as well as achieving the selling organization's objectives.
THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS
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BENEFITS OF GREEN MARKETING
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WHY ARE FIRMS USING GREEN MARKETING?
When looking through the literature there are several suggested reasons for
firms increased use of Green Marketing. Five possible reasons cited are:
1. Organizations perceive environmental marketing to be an opportunity that can

be used to achieve its objectives;
2. Organizations believe they have a moral obligation to be more socially

responsible;
3. Governmental bodies are forcing firms to become more responsible;
4. Competitors' environmental activities pressure firms to change their

environmental marketing activities; and
5. Cost factors associated with waste disposal, or reductions in material usage

forces firms to modify their behavior.
DELHIS FAMOUS CNG AUTORICKSHAW
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1. OPPORTUNITIES
It appears that all types of consumers, both individual and industrial are
becoming more concerned and aware about the natural environment. In a 1992
study of 16 countries, more than 50% of consumers in each country, other than
Singapore, indicated they were concerned about the environment. A 1994
study in Australia found that 84.6% of the sample believed all individuals had
a responsibility to care for the environment. A further 80% of this sample
indicated that they had modified their behavior, including their purchasing
behavior, due to environmental reasons. As demands change, many firms see
these changes as an opportunity to be exploited. Given these figures, it can be
assumed that firms marketing goods with environmental characteristics will have a
competitive advantage over firms marketing non-environmentally responsible
alternatives. There are numerous examples of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their consumer needs.
McDonald's replaced its clam shell packaging with waxed paper because
of increased consumer concern relating to polystyrene production and
Ozone depletion.
Tuna manufacturers modified their fishing techniques because of the
increased concern over driftnet fishing, and the resulting death of dolphins.
Xerox introduced a "high quality" recycled photocopier paper in an
attempt to satisfy the demands of firms for less environmentally harmful
products.
This is not to imply that all firms who have undertaken environmental
marketing activities actually improve their behavior. In some cases firms have
misled consumers in an attempt to gain market share. In other cases firms have
jumped on the green bandwagon without considering the accuracy of their
behavior, their claims, or the effectiveness of their products. This lack of
consideration of the true "greenness" of activities may result in firms making
false or misleading green marketing claims.
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2. SOCIAL RESPONSIBILITY
Many firms are beginning to realize that they are members of the wider
community and therefore must behave in an environmentally responsible
fashion. This translates into firms that believe they must achieve
environmental objectives as well as profit related objectives. This results in
environmental issues being integrated into the firm's corporate culture. Firms
in this situation can take two perspectives;
1) They can use the fact that they are environmentally responsible as a
marketing tool; or
2) They can become responsible without promoting this fact.
There are examples of firms adopting both strategies. Organizations like the
Body Shop heavily promote the fact that they are environmentally responsible.
While this behavior is a competitive advantage, the firm was established
specifically to offer consumers environmentally responsible alternatives to
conventional cosmetic products. This philosophy is directly tied to the overall
corporate culture, rather than simply being a competitive tool.
An example of a firm that does not promote its environmental initiatives is

Coca-Cola. They have invested large sums of money in various recycling
activities, as well as having modified their packaging to minimize its
environmental impact. While being concerned about the environment, Coke
has not used this concern as a marketing tool. Thus many consumers may not
realize that Coke is a very environmentally committed organization.
Another firm who is very environmentally responsible but does not promote
this fact, at least outside the organization, is Walt Disney World (WDW).
WDW has an extensive waste management program and infrastructure in
place, yet these facilities are not highlighted in their general tourist
promotional activities.
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SOME COMPANIES THAT USE GREEN MARKETING AS SOCIAL

RESPONSIBILITY.
3. GOVERNMENTAL PRESSURE
As with all marketing related activities, governments want to "protect"

consumers and society; this protection has significant green marketing
implications. Governmental regulations relating to environmental marketing
are designed to protect consumers in several ways,
1) Reduce production of harmful goods or by-products;

2) Modify consumer and industry's use and/or consumption of harmful goods;
or
3) Ensure that all types of consumers have the ability to evaluate the
environmental composition of goods.
Governments establish regulations designed to control the amount of

hazardous wastes produced by firms. Many by-products of production are
controlled through the issuing of various environmental licenses, thus
modifying organizational behavior. In some cases governments try to "induce"
final consumers to become more responsible. For example, some governments
have introduced voluntary curb-side recycling programs, making it easier for
consumers to act responsibly. In other cases governments tax individuals who
act in an irresponsible fashion. For example in Australia there is a higher gas
tax associated with leaded petrol.
One of the more recent publicized environmental regulations undertaken by

governments has been the establishment of guidelines designed to "control"
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green marketing claims. These regulations include the Australian Trade

Practices Commission's (TPC) "Environmental Claims in Marketing - A
Guideline, the US Federal Trade Commission's (FTC) "Guides for the Use of
Environmental Marketing Claims" and the regulations suggested by the
National Association of Attorneys-General. These regulations are all designed
to ensure consumers have the appropriate information which would enable
them to evaluate firm's environmental claims. In addition to these guidelines
many States in the US have introduced legislation to control various
environmental marketing activities. In most cases these State laws are more
stringent than the FTC's guidelines. To date the majority of prosecutions of
firms using misleading green marketing has occurred in State rather than
Federal courts.
Thus governmental attempts to protect consumers from false or misleading

claims should theoretically provide consumers with the ability to make more
informed decisions. In Australia where regulations have affected many
companies, one unintended casualty was an advertisement for the Federal
Government's environmental labeling program "Environmental Choice." This
ad was deemed to breach the TPC's guidelines, as it implied that only products
with the logo were environmentally responsible.
4. COMPETITIVE 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 behaviors and attempt to emulate
this behavior. In some instances this competitive pressure has caused an entire
industry to modify and thus reduce its detrimental environmental behavior. For
example, it could be argued that Xerox's "Revive 100% Recycled paper" was
introduced a few years ago in an attempt to address the introduction of
recycled photocopier paper by other manufacturers. In another example when
one tuna manufacture stopped using driftnets the others followed suit.
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5. COST OR PROFIT ISSUES
Firms may also use green marketing in an attempt to address cost or profit
related issues. Disposing of environmentally harmful by-products, such as
polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly
costly and in some cases difficult. Therefore firms that can reduce harmful
wastes may incur substantial cost savings. When attempting to minimize
waste, firms are often forced to re-examine their production processes. In
these cases they often develop more effective production processes that not
only reduce waste, but reduce the need for some raw materials. This serves as
a double cost savings, since both waste and raw material are reduced.
In other cases firms attempt to find end-of-pipe solutions, instead of

minimizing waste. In these situations firms try to find markets or uses for their
waste materials, where one firm's waste becomes another firm's input of
production. One Australian example of this is a firm who produces acidic
waste water as a by-product of production and sells it to a firm involved in
neutralizing base materials.
The last way in which cost or profit issues may affect firms' environmental
marketing activities is that new industries may be developed. This can occur in
two ways:
1) A firm develops a technology for reducing waste and sells it to other firms;
or
2) A waste recycling or removal industry develops.
For example, firms that clean the oil in large industrial condensers increase the
life of those condensers, removing the need for replacing the oil, as well as the
need to dispose of the waste oil. This reduces operating costs for those owning
the condensers and generates revenue for those firms cleaning the oil.
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SOME PROBLEMS WITH GOING GREEN
No matter why a firm uses green marketing there are a number of potential
problems that they must overcome. One of the main problems is that firms using
green marketing must ensure that their activities are not misleading to consumers or
industry, and do not breach any of the regulations or laws dealing with environmental
marketing. For example marketers in the US must ensure their green marketing claims
can meet the following set of criteria, in order to comply with the FTC's guidelines.
Green marketing claims must;
Clearly state environmental benefits;

Explain environmental characteristics;
Explain how benefits are achieved;
Ensure comparative differences are justified;
Ensure negative factors are taken into consideration; and
Only use meaningful terms and pictures.
Another problem firms face is that those who modify their products due to
increased consumer concern must contend with the fact that consumers' perceptions
are sometimes not correct. Take for example the McDonald's case where it has
replaced its clam shells with plastic coated paper. There is ongoing scientific debate
which is more environmentally friendly. Some scientific evidence suggests that when
taking a cradle-to-grave approach, polystyrene is less environmentally harmful. If this
is the case McDonald's bowed to consumer pressure, yet has chosen the more
environmentally harmful option. When firms attempt to become socially responsible,
they may face the risk that the environmentally responsible action of today will be
found to be harmful in the future. Take for example the aerosol industry which has
switched from CFCs (chlorofluorocarbons) to HFCs (hydro fluorocarbons) only to be
told HFCs are also a greenhouse gas. Some firms now use DME (dimethyl ether) as
an aerosol propellant, which may also harm the ozone layer. Given the limited
scientific knowledge at any point in time, it may be impossible for a firm to be certain
they have made the correct environmental decision. This may explain why some
firms, like Coca-Cola and Walt Disney World, are becoming socially responsible
30
without publicizing the point. They may be protecting themselves from potential
future negative backlash; if it is determined they made the wrong decision in the
past.While governmental regulation is designed to give consumers the opportunity to
make better decisions or to motivate them to be more environmentally responsible,
there is difficulty in establishing policies that will address all environmental issues.
For example, guidelines developed to control environmental marketing address only a
very narrow set of issues, i.e., the truthfulness of environmental marketing claims. If
governments want to modify consumer behavior they need to establish a different set
of regulations. Thus governmental attempts to protect the environment may result in a
proliferation of regulations and guidelines, with no one central controlling body.
Reacting to competitive pressures can cause all "followers" to make the same
mistake as the "leader." A costly example of this was the Mobil Corporation who
followed the competition and introduced "biodegradable" plastic garbage bags. While
technically these bags were biodegradable, the conditions under which they were
disposed did not allow biodegradation to occur. Mobil was sued by several US states
for using misleading advertising claims. Thus blindly following the competition can
have costly ramifications. The push to reduce costs or increase profits may not force
firms to address the important issue of environmental degradation. End-of-pipe
solutions may not actually reduce the waste but rather shift it around. While this may
be beneficial, it does not necessarily address the larger environmental problem,
though it may minimize its short term affects. Ultimately most waste produced will
enter the waste stream, therefore to be environmentally responsible organizations
should attempt to minimize their waste, rather than find "appropriate" uses for it.
GREEN HOUSE GASES AND THEIR SOURCES
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EMERGING TRENDS OF
GREEN MARKETING IN INDIA
PRESENT TRENDS IN GREEN MARKETING IN INDIA
This is in keeping with the philosophy of CSR which has been successfully
adopted by many business houses to improve their corporate image. In this situation
firms can take two approaches:
Use the fact that they are environmentally responsible as a marketing tool.
Become responsible without prompting this fact.
Governmental Bodies are forcing Firms to Become More Responsible. It does

so in following ways:
Reduce production of harmful goods or by products

Modify consumer and industry's use and /or consumption of harmful goods; or
In order to get even with competitors claim to being environmentally friendly,
firms change over to green marketing. Result is green marketing percolates
entire industry.
It may pursue these as follows:
A Firm develops a technology for reducing waste and sells it to other firms.
A waste recycling or removal industry develops.
PROBLEMS IN IMPLEMENTATION
Initial cost is high

Consumers are Price sensitive
Less awareness among consumers about Eco-Mark
Green washing or green sheen.
Lack of standardization.
32
GREEN MARKETING MYOPIA

AN EXAMPLE OF GREEN MARKETING MYOPIA
In 1994, Philips launched the EarthLight, a super energy-efficient compact

fluorescent light (CFL) bulb designed to be an environmentally preferable substitute
for the traditional energy-intensive incandescent bulb. The CFLs clumsy shape,
however, was incompatible with most conventional lamps, and sales languished. After
studying consumer response, Philips reintroduced the product in 2000 under the name
Marathon, to emphasize the bulbs five year life. New designs offered the look and
versatility of conventional incandescent light bulbs and the promise of more than $20
in energy savings over the products life span compared to incandescent bulbs.
PHILIPS MARATHON BULBS
The new bulbs were also certified by the U.S. Environmental Protection
Agencys (EPA) Energy Star label. Repositioning CFL bulbs features into advantages
that resonated with consumer valuesconvenience, ease-of-use, and credible cost
savingsultimately sparked an annual sales growth of 12 percent in a mature product
market.
Philips experience provides a valuable lesson on how to avoid the common

pitfall of green marketing myopia. Philips called its original entry EarthLight to
communicate the CFL bulbs environmental advantage. While noble, the benefit
appealed to only the deepest green niche of consumers. The vast majority of
consumers, however, will ask, If I use green products, whats in it for me? In
33
practice, green appeals are not likely to attract mainstream consumers unless they also
offer a desirable benefit, such as cost-savings or improved product performance. To
avoid green marketing myopia, marketers must fulfill consumer needs and interests
beyond what is good for the environment. Thus we see how green marketing myopia
was faced by the Philips while trying to bring into market the environment friendly
light bulbs.
34
WHAT IS 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 green marketing myopia. In 1960, Harvard
business professor Theodore Levitt introduced the concept of marketing myopia
in a now-famous and influential article in the Harvard Business Review.
In it, he characterized the common pitfall of companies tunnel vision, which

focused on managing products (that is, product features, functions, and efficient
production) instead of meeting customers needs (that is, adapting to consumer
expectations and anticipation of future desires).
Levitt warned that a corporate preoccupation on products rather than consumer

needs was doomed to failure because consumers select products and new innovations
that offer benefits they desire. Research indicates that many green products have
failed because of green marketing myopiamarketers myopic focus on their
products greenness over the broader expectations of consumers or other market
players (such as regulators or activists)
35
For example, partially in response to the 1987 Montreal Protocol, in which

signatory countries (including the United States) agreed to phase out ozone depleting
chlorofluorocarbons (CFCs) by 2000, Whirlpool (in 1994) launched the Energy
Wise refrigerator, the first CFC free cooler and one that was 30 percent more
efficient than the U.S. Department of Energys highest standard. For its innovation,
Whirlpool won the Golden Carrot, a $30 million award package of consumer
rebates from the Super- Efficient Refrigerator Program, sponsored by the Natural
Resources Defense Council and funded by electric utilities. Unfortunately, Energy
Wises sales languished because the CFC-free benefit and energy-savings did not
offset its $100 to $150 price premium, particularly in markets outside the rebate
program, and the refrigerators did not offer additional features or new styles that
consumers desired.
General Motors (GM) and Ford encountered similar problems when they
launched their highly publicized EV-1 and Think Mobility electric vehicles,
respectively, in the late 1990s to early 2000s in response to the 1990 zero emission
vehicle (ZEV) regulations adopted in California. Both automakers believed their
novel two-seater cars would be market successes (GM offered the EV-1 in a lease
program, and Ford offered Think Mobility vehicles as rentals via the Hertz car-rental
chain). Consumers, however, found electric vehicles need for constant recharging
with few recharging locations too inconvenient.
Critics charged that the automakers made only token efforts to make electric
cars a success, but a GM spokesperson recently explained, We spent more than $1
billion to produce and market the vehicle, [but] fewer than 800 were leased. Most
drivers were not willing to drastically change their driving habits and expectations to
accommodate electric cars, and the products ultimately were taken off the
market.Aside from offering environmental benefits that do not meet consumer
preferences, green marketing myopia can also occur when green products fail to
provide credible, substantive environmental benefits.
36
Example MOBILS HEFTY PHOTODEGRADABLE PLASTIC TRASH

BAGS
Mobils Hefty photodegradable plastic trash bag is a case in point. Introduced

in 1989, Hefty packages prominently displayed the term degradable with the
explanation that a special ingredient promoted its decomposition into harmless
particles in landfills activated by exposure to the elements such as sun, wind, and
rain. Because most garbage is buried in landfills that allow limited exposure to the
elements, making degradation virtually impossible, the claim enraged
environmentalists. Ultimately, seven state attorneys general sued Mobil on charges of
deceptive advertising and consumer fraud. Mobil removed the claim from its
packaging and vowed to use extreme caution in making environmental claims in the
future.
It has been found that the top reasons consumers do not buy green products
included beliefs that they require sacrificesinconvenience, higher costs and lower
performance without significant environmental benefits. Ironically, despite what
consumers think, a plethora of green products available in the marketplace are in fact
desirable because they deliver convenience, lower operating costs, and/or better
performance. Often these are not marketed along with their green benefits, so
consumers do not immediately recognize them as green and form misperceptions
about their benefits. When consumers are convinced of the desirable non-green
benefits of environmental products, they are more inclined to adopt them. Other
environmental products have also scored market successes by either serving profitable
niche markets or offering mainstream appeal.
Example TOYOTA PRIUS
Consider the Toyota Prius, the gas-electric hybrid vehicle that achieves about
44 miles per gallon of gasoline. In recent years, Toyotas production has hardly kept
pace with the growing demand, with buyers enduring long waits and paying
thousands above the cars sticker price. Consequently, other carmakers have
scrambled to launch their own hybrids. However, despite higher gas prices, analysts
assert that it can take 5 to 20 years for lower gas expenses to offset many hybrid cars
higher prices. Thus, economics alone cannot explain their growing popularity.
37
Analysts offer several reasons for the Prius market demand. Initially, the buzz
over the Prius got a boost at the 2003 Academy Awards when celebrities such as
Cameron Diaz, Harrison Ford, Susan Sarandon, and Robin Williams abandoned
stretch limousines and oversized sport utility vehicles, arriving in Priuses to
symbolize support for reducing Americas dependence on foreign oil. Since then, the
quirky-looking Prius badge of conspicuous conservation has satisfied many
drivers desires to turn heads and make a statement about their social responsibility,
among them Google founders Larry Page and Sergey Brin, columnist Arianna
Huffington, comic Bill Maher, and Charles, Prince of Wales. The Prius ultimately was
named Motor Trends Car of the Year in 2004. The trendy appeal of the Prius
illustrates that some green products can leverage consumer desires for being
distinctive. Others say the Prius is just fun to drivethe dazzling digital dashboard
that offers continuous feedback on fuel efficiency and other car operations provides
an entertaining driving experience. More recently, however, the Prius has garnered
fans for more practical reasons. A 2006 Maritz Poll finds that owners purchased
hybrids because of the convenience of fewer fill-ups, better performance, and the
enjoyment of driving the latest technology. In some states, the Prius and other high-
mileage hybrid vehicles, such as Hondas Insight, are granted free parking and solo-
occupancy access to high occupancy vehicle (HOV) lanes. In sum, hybrid vehicles
offer consumers several desirable benefits that are not necessarily green benefits.
TOYOTA PRIUS
38
Many environmental products have become so common and widely

distributed that many consumers may no longer recognize them as green because they
buy them for non-green reasons. Green household products, for instance, are widely
available at supermarkets and discount retailers, ranging from energy-saving Tide
Coldwater laundry detergent to non-toxic Method and Simple Green cleaning
products. Use of recycled or biodegradable paper products (such as plates, towels,
napkins, coffee filters, computer paper, and other goods) is also widespread. Organic
and rainforest-protective shade grown coffees are available at Starbucks and other
specialty stores and supermarkets. Organic baby food is expected to command 12
percent market share in 2006 as parents strive to protect their childrens mental and
physical development.
Indeed, the organic food market segment has increased 20 percent annually
since 1990, five times faster than the conventional food market, spurring the growth
of specialty retailers such as Whole Foods Market and Wild Oats. Wal-Mart, too, has
joined this extensive distribution of organic products. Indeed, Wal-Mart has recently
declared that in North American stores, its non-farm-raised fresh fish will be certified
by the Marine Stewardship Council as sustainably harvested.
Super energy-efficient appliances and fixtures are also becoming popular.

Chic, front-loading washing machines, for example, accounted for 25 percent of the
market in 2004, up from 9 percent in 2001. EPAs Energy Star label, which certifies
that products consume up to 30 percent less energy than comparable alternatives, is
found on products ranging from major appliances to light fixtures to entire buildings
(minimum efficiency standards vary from product to product). The construction
industry is becoming increasingly green as government and industry demand office
buildings that are high performance (for example, super energy- and resource-
efficient and cost effective) and healthy for occupants (for example, well-ventilated;
constructed with materials with low or no volatile organic compounds [VOC]). The
U.S. Green Building Councils Leadership in Energy and Environmental Design
(LEED) provides a rigorous rating system and green building checklist that are
rapidly becoming the standard for environmentally sensitive construction.Home
buyers are recognizing the practical long-term cost savings and comfort of natural
lighting, passive solar heating, and heat-reflective windows, and a 2006 study
39
sponsored by home improvement retailer Lowes found nine out of ten builders
surveyed are incorporating energy-saving features into new homes. Additionally, a
proliferation of green building materials to serve the growing demand has emerged.
Lowes competitor The Home Depot is testing an EcoOptions product line featuring
natural fertilizers and mold resistant drywall in its Canadian stores that may filter into
the U.S. market. In short, energy efficiency and green construction has become main
stream.
The diversity and availability of green products indicate that consumers are
not indifferent to the value offered by environmental benefits. Consumers are buying
greenbut not necessarily for environmental reasons. The market growth of
organic foods and energy-efficient appliances is because consumers desire their
perceived safety and money savings, respectively. Thus, the apparent paradox
between what consumers say and their purchases may be explained, in part, by
green marketing myopiaa narrow focus on the greenness of products that
blinds companies from considering the broader consumer and societal desires. A
fixation on products environmental merits has resulted frequently in inferior green
products (for example, the original EarthLight and GMs EV-1 electric car) and
unsatisfying consumer experiences
40
CHAPTER 2: THEORETICAL BACKGROUND
LG Corp. established as Lak-Hui Chemical Industrial Corp. in 1947.[3] In

1952, Lak-Hui (pronounced "Lucky", currently LG Chem) became the first Korean
company to enter the plastics industry.
As the company expanded its plastic business, it established GoldStar Co. Ltd.
(currently LG Electronics Inc.) in 1958. Both companies Lucky and GoldStar merged
and formed Lucky Goldstar.
GoldStar produced South Korea's first radio. Many consumer electronics were
sold under the brand name GoldStar, while some other household products (not
available outside South Korea) were sold under the brand name of Lucky.
The Lucky brand was famous for hygiene products such as soaps and HiTi
laundry detergents, but the brand was mostly associated with its Lucky and
Perioe toothpaste. Even today, LG continues to manufacture some of these products
for the South Korean market, such as laundry detergent.
In 1997, to compete better in the Western market, the Lucky-Goldstar

Corporation was renamed "LG". The company also associates the letters LG with the
company's tagline "Life's Good". Since 2009, LG has owned the domain
name LG.com.
41
19581960s
In 1958, LG Electronics was founded as GoldStar (Hangul). It was established

in the aftermath of the Korean War to provide the rebuilding nation with
domestically-produced consumer electronics and home appliances. LG
Electronics produced South Korea's first radios, TVs, refrigerators, washing
machines, and air conditioners. GoldStar was one of the LG group with a
sister company, Lak-Hui (pronounced "Lucky") Chemical Industrial Corp.
which is now LG Chem and LG Households.
GoldStar merged with Lucky Chemical and LG Cable in 1995, therefore the
corporate name was changed to LG Electronics (Lucky-Goldstar).
1970s1990s
In 1978, LG Electronics earned USD 100 million in revenue from exports for
the first time in its history. Rapid growth by globalization saw the company
establish its first overseas production, based in the United States, in 1982. In
1994, GoldStar officially adopted the LG Electronics brand and a new
corporate logo. LG Electronics acquired the US-based TV manufacturer
Zenith. In 1997, LG Electronics made the world's first CDMA digital mobile
handsets and supplied Ameritech and GTE in the US. The company was also
awarded UL certification in the US. In 1998, LG developed the world's first
60-inch plasma TV, and in 1999 established a joint venture with Philips LG
Phillips LCD which now goes by the name LG Display.
2000present
In order to create a holding company, the former LG Electronics was split off
in 2002, with the "new" LG Electronics being spun off and the "old" LG
Electronics changing its name to LG EI. It was then merged with and into LG
42
CI in 2003 (the legal successor of the former LG Chem), so the company that
started as Goldstar does not currently exist.
LG Electronics plays a large role in the global consumer electronics industry.

LG launched the LG Chocolatemobile phone in 2005 and is the second-largest
LCD TV manufacturer worldwide as of 2013. By 2005, LG was a Top 100
global brand, and in 2006 LG recorded a brand growth of 14%. Its display
manufacturing affiliate, LG Display, as of 2009 was the world's largest LCD
panel manufacturer. In 2010, LG Electronics entered the smartphone industry.
Since, LG Electronics continued to develop various electronic products, such

as releasing the world's first 84-inch ultra-HD TV for retail sale. On 5
December 2012, the antitrust regulators of European Unionfined LG
Electronics and several other major companies for fixing prices of TV
cathode-ray tubes in two cartels lasting nearly a decade. In 2014, LG
Electronics began to a new typeface for the "LG" in its logo.
On June 11, 2015, LG Electronics found itself in the midst of a human rights
controversy when The Guardian published an article by Rosa Moreno, a
former employee of an LG television assembly factory. Moreno reported that
she had lost her hands in an industrial accident, and that the factory initially
provided her only $3,800 for the devastating loss. Moreno has continued to
battle LG to find sufficient compensation for the loss of her hands, and the
company has been notably unresponsive and unsympathetic to her case.
43
CHAPTER 3: LG CORPORATION PROFILE
LG Corporation is a holding company that operates worldwide through more

than 30 companies in the electronics, chemical, and telecom fields. Its electronics
subsidiaries manufacture and sell products ranging from electronic and digital home
appliances to televisions and mobile telephones, from thin-film transistor liquid-
crystal displays to security devices and semiconductors.
In the chemical industry, subsidiaries manufacture and sell products including

cosmetics, industrial textiles, rechargeable batteries and toner products,
polycarbonates, medicines, and surface decorative materials.
Its telecom products include long-distance and international phone services,

mobile and broadband telecommunications services, as well as consulting and
telemarketing services. LG also operates the Coca-Cola Korea Bottling Company,
manages real estate, offers management consulting, and operates professional sports
clubs.
44
The division's revenue, billion

Fields of activity Companies
USD (2013)
Holding company LG Corp. US$8.8 billion[10]
LG Electronics US$55.8 billion[11]
LG Display US$25.9 billion[12]
Electronic industry LG Innotek US$5.9 billion[13]
LG Siltron N/A
Lusem N/A
LG Chem
US$22.2 billion[14]
LG Household &
US$4.1 billion[15]
Health Care
Chemical industry US$2.6 billion[16]
LG Hausys
N/A
LG Life Sciences
N/A
LG MMA
LG Uplus
US$11 billion[17]
LG International
US$11.6 billion[18]
Telecommunication and Corp.
N/A
Services LG CNS
N/A
SERVEONE
N/A
LG N-Sys
45
LG is listed in Greenpeaces Guide to Greener Electronics where it ranked

13th (jointly with Toshiba) out of 15 leading electronics makers in November 2011,
scoring 2.8 out of 10. LG benefited from having a penalty point lifted from the
previous edition (October 2010). The company was penalised for failing to meet its
commitment to make products free of polyvinyl chloride (PVC) plastic and
brominated flame retardants (BFRs) by the end of 2010. All of LG's mobile phones
are now free from PVC and BFRs while other products such as TVs and notebooks
contain PVC/BFR free parts; LG aims to phase these substances out from TVs
monitors and PCs by 2012 and household appliances by 2014.
46
In the Guide the company scored badly on the Energy criteria, being criticized
for setting a weak target for the reduction of greenhouse gas emissions and not
making renewable energy part of its low carbon strategy. In 2014 LG started building
19 MW of solar systems on top of its factory roofs to use significant amounts of
renewable power. LG scored most points in the Sustainable Operations category with
the company providing take-back for obsolete phones in 52 countries and being in the
process of addressing the issue of conflict minerals. The guide warned that LG risks
incurring a penalty point in future editions as it was still being listed as a client of
Asia Pulp and Paper (APP) who have been linked to illegal logging and deforestation
in Indonesia.
Choice magazine, in independent tests of popular LG fridge models in 2010,

found the energy consumption in two models was higher than claimed by LG. LG was
aware of the problem and had offered compensation to affected customers.
In 2004, LG made 4A-rated water efficiency claims for numerous washing

machines before they were certified. LG gave undertakings to the Australian
Competition and Consumer Commission (ACCC) to provide appropriate corrective
notices and upgrade and maintain its trade practices compliance program. In 2006, LG
overstated energy efficiency on five of its air conditioner models and was again
required to offer consumers rebates to cover the extra energy costs.
A refrigerator designed with the environment in mind by LG Electronics is the

first major appliance to earn the "Green Good Housekeeping Seal." LG's Super-
Capacity French-Door Refrigerator was granted the coveted emblem after an
extensive evaluation of performance and a wide range of environmental criteria by the
scientists and engineers at the Good Housekeeping Research Institute.
Many consumers are confused and cynical in a marketplace awash with

"green" claims. The Green Good Housekeeping Seal resonates with and is trusted by
consumers and helps them choose products that have been manufactured with a
significant commitment toward being environmentally sound.
47
A prime example is LG's LFX31925 Super-Capacity French-Door

Refrigerator, which has been lauded by Good Housekeeping for its impressive water
and energy efficiency during product use, 100 percent recyclable and sustainably-
sourced packaging, and reductions of water, waste and energy during production
processes.
"The Green Good Housekeeping Seal was designed to guide consumers who
want to buy products that are environmentally responsible and also work effectively,"
said Miriam Arond, director of the Good Housekeeping Research Institute. "We are
pleased to recognize LG for an appliance that demonstrates impressive energy
efficiency, among other sustainability attributes."
This ENERGY STAR certified LG refrigerator is more than 20 percent more

efficient than the Federal energy standard, and its thin foam insulation technology
adds to overall efficiency. In addition, this appliance incorporates a host of innovative
features, including SlimSpace Plus, which is a streamlined ice-making system inside
the door that provides owners with usable door bins and an unobstructed top shelf, as
well as LG's Smart Cooling Plus system which helps keep food fresher longer.
For a product to earn the Green Good Housekeeping Seal distinction, the
Good Housekeeping Research Institute conducts an extensive review and verification
of data related to the environmental impact of the product's development and
company's manufacturing processes. This is measured by a number of key factors
including the reduction of water used in manufacturing, energy efficiency both in
manufacturing and product use, material and product safety, and packaging reduction
as well as the brand's overall corporate social responsibility.
Before being considered for the Green Good Housekeeping Seal, a product
must pass Good Housekeeping Research Institute evaluations for the primary Good
Housekeeping Seal, which means it is effective and covered by the magazine's two-
year limited warranty: If the product proves to be defective within two years of
purchase, Good Housekeeping will replace the item or refund the consumer.
48
"We're extremely proud that our refrigerator is the first major appliance to earn
this coveted distinction, as the Green Good Housekeeping Seal is widely recognized
and respected among the industry and consumers alike," said William Cho, president
and CEO of LG Electronics USA, which has made an industry-leading pledge to
reduce its greenhouse gas emissions by 50 percent by 2020. LG is committed to
manufacturing and promoting energy-efficient products across all categories including
home appliances.
The company has earned the EPA's top ENERGY STAR honors 2014
Partner of the Year-Sustained Excellence and Climate Communication awards in
recognition of its unwavering commitment to helping consumers become increasingly
more energy efficient. LG also leads the way in developing energy-saving
technologies such as the linear compressor at the heart of its refrigerators. And LG's
pioneering Door-in-Door refrigerator technology, a magnetically sealed outer door
that offers consumers access tofrequently used items without opening the entire
refrigerator, reduces cold air loss by up to 47 percent.*
49
PRODUCTS
LG Electronics' products include televisions, home theater systems,

refrigerators, washing machines, computer monitors, wearable device, smart
appliance and smartphones.
TELEVISIONS
LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes

in 2014. LG Electronics introduced its first Internet TV in 2007, originally branded as
"NetCast Entertainment Access" devices. They later renamed the 2011 Internet
televisions to "LG Smart TV" when more interactive television features were added,
that enable the audience to receive information from the Internet while at the same
time watching conventional TV programming.
In November 2013, a blogger discovered that some of LG's smart TVs silently
collect filenames from attached USB storage devices and program viewing data, and
transmit the information to LG's servers and LG-affiliated servers. Shortly after this
blog entry went live, LG disabled playback on its site of the video, explaining how its
viewer analytics work, and closed the Bright cove account the video was hosted on.
By December 2013, the page itself was removed from LG's website.
LG's remote uses Hillcrest Labs' Free space technology to allow users to
change channels using gestures and Dragon NaturallySpeaking technology for voice
recognition.
As of 2014, LG is using web OS with a ribbon interface with some of its smart
TVs. LG reported that in the first eight months after release, it had sold over 5 million
web OS TVs
50
MOBILE DEVICES
LG G4 Global Launching
LG Electronics manufactures a wide range of smartphones and tablet devices.

Other than the G3, LG officially unveiled the curved smartphone, G Flex, on 27
October 2013. LG has released it in South Korea in November 2013, and later
announced releases in Europe, the rest of Asia, and North America. At Consumer
Electronics Showin January 2014, LG announced an U.S. release for the G2 across
several major carriers.[In 2015, LG has released LG G4globally in late May through
early June.
TABLET
In 2014, LG revealed three new additions to the G series of tablets, which each
include LG's Knock Code feature, allowing users to unlock devices with a series of
taps. The tablets also feature Q Pair which allows tablets to sync up with a
smartphones, and for phone calls and text messages passed on to the tablet in real
time.
51
SMART WATCH
LG WATCH URBANE LTE
LG and Google announced the Android Wear-based smart watch the LG G

Watchthat was in June 2014.In August 2014, the LG G Watch R that has a round face
(similar to the Moto 360) was released. The LG Watch Urbane that LG's third Android
Wear-based smart watch has released in April 2015. This is the first device to support
new features such as Wi-Fi, and new parts of Android Wear's software interface, like
the ability to draw emoji to friends.
ROLLY KEYBOARD
In 2015, LG announced the first Bluetooth keyboard that folds up along the
four rows of keys that can be tossed in a purse or pocket. The rolly keyboard is made
of solid plastic. Two tiny plastic arms fold out from the end of the keyboard to support
a tabletor smartphone and it can toggle between two different Bluetooth-connected
devices at a time. Battery life is an expected three months on a single AAA battery.
52
HOME APPLIANCES
LG manufactures and sells home appliance products such as refrigerators,

washers and dryers, vacuum cleaners, kitchen appliances, and residential air
conditioners. In June 2014, LG Electronics also announced the launch of its smart
appliances with Home Chat messaging service in South Korea. Home Chat employs
LINE, the mobile messenger app from Korean company Never to let homeowners
communicate, control, monitor and share content with LGs smart appliances. Users
can send simple messages, such as "start washing cycle," in order to control their
washing machines.
CHAPTER 4: DATA COMPILATION
As a measure of data collection, I have made structured questionnaire which

includes closed questions in retrieving data and current status of the Green marketing
Strategy With reference to the Less Energy consumption: LG refrigerators.
The questionnaire was created on Google docs and was distributed among the
internet users in India through emails and online portals. At the end of the survey, we
obtained responses from 94 people. Out of the total sample group, 80% are male and
20% are female. According to their ages, 18% are between age 18-21; 55% are
between age 22-25; 22% are between age 26-30 and 5% are at the age 30 or above.
According to their occupation, 37% of the participants are working

professionals; 26% are students without work experience; 30% are students with work
experience; 4% are self-employed; 1% are unemployed and 1% are home makers. As
a measure of data collection, I have made structured questionnaire which includes
closed questions in retrieving data and current status of the Green marketing Strategy
With reference to the Less Energy consumption: LG refrigerators. Also by using the
ANOVA we have analyze the use of non cfc LG Refrigerator according to the age
difference.
53
The questionnaire consist of level i.e. Excellent, Good, Satisfactory, Poor. A

five point scale is also used such as strongly disagree, disagree, neutral, agree and
strongly agree.
54
CHAPTER 5: DATA PRESENTATION AND ANALYSIS
After data have been collected, the researcher turns to the task of analyzing
them. The analysis of data requires a number of closely related operations such as
establishment of categories, the application of these categories to raw data through
tabulation and drawing statically inferences. Tabulation is the part of technical
procedure where in the classified data are put in the form of tables. After analyzing
the data, the researcher should have to explain the findings on the basis of some
theory. It is known as interpretation. The data thus collected was in the form of master
table. That made possible counting of classified data easy. From the master table
various summery tables were prepared. They have been presented along with their
interpretation in this manner.
5.1 Gender disparity in considering price as a factor while purchasing non

CFC LG refrigerator?
variables Strongly agree agree Neutral disagree Strongly disagree

Male 15 50 15 20 0
Female 25 35 20 20 0
50
40
30
Male
20 Female
10
0
strongly Agree Agree Neutral Disagree Strongly disagree
From the results we infer that there is difference between how male and female
considered price as a factor while purchasing. Woman are less sensitive to price than
men are. This means that when companies are targeting green products for men they
should be more conscious of price. But on an overall basis we can say that price is not
such a big factor for which companies should be considerate.
5.2 Gender disparity in considering availability as a factor while purchasing

non CFC LG Refrigerator?
55
variables Strongly agree neutral disagree Strongly

agree disagree
Male 25 70 10 0 0
Female 35 60 05 0 0
70
60
50
40
Male
Female
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
For availability results show that there is no difference between how male and
female considered availability as a factor while purchasing. Availability is an average
factor for both the genders to opt for purchasing non CFC LG Refrigerator.
56
5.3 Gender disparity in considering brand name as a factor while purchasing

variables Strongly agree agree neutral disagree Strongly disagree
Male 20 20 25 15 20
Female 25 20 10 20 25
25
20
15
Male
Female
10
0
Strongly Agree Agree Neutral Disagree Strongly disagree
Regarding brand name it shows that there is no difference between how male
and female considered brand name as a factor while purchasing.
57
5.4 Gender disparity in considering convenience as a factor while purchasing

variables Strongly agree agree neutral disagree Strongly disagree
Male 20 20 25 15 20
Female 25 20 10 20 25
25
20
15
Male
Female
10
0
Strongly agree Agree Neutral Disagree Strongly disagree
Results on convenience say that there is no difference between how male and
female considered convenience as a factor while purchasing.
58
5.5 Gender disparity in considering variety as a factor while purchasing non

CFC LG Refrigerator?
variables Strongly agree neutral disagree Strongly

agree disagree
Male 20 20 25 15 20
Female 25 20 10 20 25
25
20
15
Male
Female
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
When variety is the factor results say there is no difference between how male
and female considered variety as a factor while purchasing. We can say that it has
above average impact on choice which the consumer makes.
To analyze the significance between age group based on availability,

brand name, convenience, price, variety we apply ANOVA.
59
5.6 From the test we infer that there is no difference between how different age
group considered availability as a factor while purchasing. From mean value
we can say that availability is important factor for people above 30 as they
prefer less to go far to purchase
Age Group No. of Mean F-value P-value
sample
18-21 16 1.94 2.552 0.061
22-25 52 2.50
26-30 21 2.19
Above 30 5 1.20
Total 94 2.27
5.7 From the results we see that there is no difference between how different age
group considered brand name as a factor while purchasing. From mean value
we can say that people are not much concerned about the brand name the
product should be good and beneficial thats what matters.
sample
18-21 16 3.56 2.504 0.064
22-25 52 3.10
26-30 21 2.52
Above 30 5 2.40
Total 94 3.01
5.8 Here we infer that there is difference between how different age group
considered convenience as a factor while purchasing. From mean value we
can say that for people between age group 18-21 and above 30 Convenience is
an important factor for considering buying of non CFC LG Refrigerator
sample
18-21 16 2.06 2.864 0.041
22-25 52 2.54
26-30 21 2.14
Above 30 5 1.20
Total 94 2.30
5.9 The results show that there is no difference between how different age group
considered price as a factor while purchasing. From mean values we can say
60
that price plays as an average factor considered before purchasing on CFC LG

Refrigerator.
sample
18-21 16 2.94 2.539 0.062
22-25 52 2.19
26-30 21 2.10
Above 30 5 1.40
Total 94 2.26
5.10 From results we infer that there is no difference between how different age
group considered variety as a factor while purchasing. From mean values we can
say variety is not that important while choosing non CFC LG Refrigerator.
Companies have more chance of being successful if they launch a new innovative
product rather than just providing an alternative.
sample
18-21 16 3.19 1.617 0.191
22-25 52 2.94
26-30 21 2.33
Above 30 5 2.60
Total 94 2.83
MARKET SURVEY
QUESTIONNAIRE ON GREEN MARKETING:- (SURVEY)

PARTICIPANT:- I
61
Name of the Respondent:- MR. BALJEET SINGH
Gender:-
a) Male b) Female
Age :-
a) 20-25 b) 25-30 c) 30 & above
Education Level:-
a) Graduate b) Post Graduate c) Others __________
Are you aware of green products or eco-friendly products? If yes then by

what means?
a) Television b) Magazines c) Newspapers d) Others
If green features increase the price of the product, are you willing to pay
more?
a) Yes b) No c) A Little.
Do you think there is enough information about green features.when you

buy the product?
a) Yes b) No.
What is the main reason that makes you willing to pay more for the green
products?
a) Enhance a quality of Life.
b) Environmental Protection Responsibility
c) Potential increase of product Value.
d) Getting high level of Satisfaction.
What is the main reason that makes you not willing to pay more for the green
products?
Cannot see the benefit of those features.
Product cost is too high, cannot afford them.
62
Producers only claim, actually it is not.

Government should pay for them.
Producer should pay for them.
Environmental issues are gimmick for commercial only.
Iam ready to pay extra for eco-friendly product.
Does your company believe in the concept of Green Marketing?

a)Yes b) No.
Why do you think green marketing in headlines nowadays?

Consumers are being aware of green products.
Company increasing its competitive edge.
Companys attempt to address societys new concern.
Which marketing element strongly influences your buying behaviour of Green

Products?
Product
Package
Place
Promotion
All of the above
63
PARTICIPANT:- II
Name of the Respondent:- MR. GEORGE ZECHARIAH
Gender:-
a) Male b) Female
Age :-
a) 20-25 b) 25-30 c) 30 & above
Education Level:-
a) Graduate b) Post Graduate c) Others D.E.E

what means?
more?
Do you think there is enough information about green features, when you
buy the product?
a) Yes b) No.
products?
64
products?
I am ready to pay extra for eco-friendly product.

a)Yes b) No.


Products?
Product
Package
Place
Promotion
All of the above
65
PARTICIPANT:- III
Name of the Respondent:- MRS. SHRUTHI DESHPANDEY
Gender:-
a) Male b) Female
Age :-
a) 20-25 b) 25-30 c) 30 & above
Education Level:-
a) Graduate b) Post Graduate c) Others __________

what means?
more?
Do you think there is enough information about green features.when you

buy the product?
a) Yes b) No.
products?
66
products?
Iam ready to pay extra for eco-friendly product.

a)Yes b) No.


Products?
Product
Package
Place
Promotion
All of the above
67
CHAPTER 6: FINDINGS AND INFERENCE
Finding of LG Ltd:-
Consumer preference shift from non-green products to green products.

Consumer awareness for environmental concern has been increase.
Companies have good future with green product with some innovation in it
and it will have distinctive advantages in the market place.
Green marketing Strategy With reference to LG makes CFC less Refrigerator
is good among consumers.
.
68
CHAPTER 7: SUGGESTION AND CONCLUSION
As the demand for non CFC LG Refrigerator undoubtedly exists, Green

Marketing provides an opportunity to the companies to increase their market-share by
introducing eco-friendly products. Stricter environmental regulations across the
world, growing consumer preference for eco-friendly companies, and the inherent
cost advantages in lowering toxic waste, are encouraging industries big and small to
clean up. Result of the survey conducted showed that, consumers are not overly
committed to improving their environment and may be looking to lay too much
responsibility on industry and government.
Though its the responsibility of the firm to produce products, which are
having minimum impact on the environment, but ultimately its the consumer who is
having responsibility to use eco-friendly products. Consumers are not too much
concerned about the environment but as they have become more sophisticated, they
require clear information about how choosing one product over another will benefit
the environment. Consumer education results in their empowerment. Empowered
consumers choose environmentally preferable products when all other factors are
equal. Ultimately green marketing requires that consumers Think Green, Think
clean, Think Ecofriendly i.e. they want a cleaner environment and are willing to
"pay" for it, possibly through higher priced goods, modified individual lifestyles, or
even governmental intervention. Until this occurs it will be difficult for firms alone to
lead the green marketing revolution.
We have formulated the following recommendations/suggestion from our

study: 1. Support green marketing programs with corporate credibility: Introduction
of a new green product without the support of a positive track record of corporate
credibility will adversely affects the products image. That's the message being sent
back to the companies from skeptical consumers. Consumers typically cannot
experience environmentally oriented product benefits--they can't see the air pollution
spared from the environment when they use a less polluting gasoline; they can't see
the energy saved when they recycle aluminium cans.
69
Often, environmental marketing claims are confusing. So, consumers must

rely on their impressions of the corporations behind the greener products and ads to
feel that claims can be trusted, that products marketed as such are truly less harmful to
the environment. 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 green
marketing myopia. Research indicates that many green products have failed because
of green marketing myopia marketers myopic focus on their products
greenness over the broader expectations of consumers or other market players
(such as regulators or activists).
Companies that market products as green without the credentials to back it up

also risk retaliation from consumers, environmentalists and the media who may feel a
company is exploiting the environment. Roper ASWs 2002Green Gauge Report
finds that the top reasons consumers do not buy green products included beliefs that
they require sacrifices inconvenience, higher costs, lower performance without
significant environmental benefits. Ironically, despite what consumers think, a
plethora of green products available in the marketplace are in fact desirable because
they deliver convenience, lower operating costs, and/or better performance. Often
these are not marketed along with their green benefits, so consumers do not
immediately recognize them as green and form misperceptions about their benefits.
When consumers are convinced of the desirable non-green benefits of

environmental products, they are more inclined to adopt them. Other environmental
products have also scored market successes by either serving profitable niche markets
or offering mainstream appeal. The green bottom line: 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:
1. BENCHMARKING
Establish a benchmark upon which to measure the progress of company in term of
eco aspects. Self-certify the companys progress and the efforts made by
company.
70
2. EXTERNAL AUDIT
Conduct a thorough environmental audit to assess 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 a
corporate Environmental Progress Report.
3. BACK UP
From Top level its not enough to have the top-level support for a corporation's
environmental program. That commitment must be projected to the consumer as
personal and direct. In doing so, an emotional link is forged between the company
and its customers.
4. 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 and thought-provoking
educational programs to heighten awareness for the issues and empower
employees to act positively on ecological issues. Invite outside speakers to talk
about trends in population, technology, the economy and the environment
5. CONSTANTLY
Refine the Product Consumers intuitively understand that no product or company
is truly "green". What they want from companies is reasonable progress.
Constantly integrate, learn, and refine products and processes. Develop a plan, set
measurable goals, and work towards them. As per the study conducted we found
that variety can play a major role in influencing consumers, So the companies
should focus on creating variety in Green Products sector.
6. EFFECTIVE COMMUNICATION
Effectively communicate with the consumers; always look for feedback from
consumers as well as from environmental organizations. Be publicly accountable,
regularly issue reports on environmental performance, advertise them & use them
as a tool to improve public relations. Clearly state the benefits, clearly tell the
consumers what are the cost savings and how the product is eco-friendly.
71
BIBLIOGRAPHY
Book Sources
1. Menon A, Menon A. 1997. Enviropreneurial marketing strategy: the

emergence of corporate environmentalism as market strategy. Journal of
Marketing 61: 5167.
2. Coddington W. 1993. Environmental Marketing: Positive Strategies for
Reaching the Green Consumer. McGraw- Hill: New York.
3. Simintiras AC, Schlegelmilch BB, Diamantopoulos A (1994) Greening the
marketing mix: a review of the literature and an agenda for future research. In:
McDonagh P, Prothero A, editors. Green management a reader. London
4. Green marketing Myopiya, June 2006 issue of Environment, Volume 48,
Number 5, pages 2236. Heldref Publications, 2006
5. J. Ottman, Green Marketing: Opportunity for Innovation (Lincolnwood
[Chicago]: NTC Business Books, 1997).
6. Dodds, John (August 11, 2006). "Geek Marketing 101". Accessed on 16/01/
2011.
7. Nicola Mendleson, Michael Jay Polonsky, (1995) "Using strategic alliances to
develop credible green marketing", Journal of Consumer Marketing, Vol. 12
Iss: 2, pp.4 18
8. Stephen W. McDaniel, David H. Rylander, (1993) "Strategic green
marketing", Journal of Consumer Marketing, Vol. 10 Iss: 3, pp.4 10
9. Atiq Uz Zaman, Sofiia Miliutenko and Veranika Nagapetan (2010), Green
marketing or green wash? A comparative study of consumers behavior on
selected Eco and Fair trade labeling in Sweden, Journal of Ecology and the
Natural Environment Vol. 2(6), pp. 104-111, June 2010
10. Aseem Prakash (2002), Green marketing, public policy and managerial
strategies, Business Strategy and the Environment, Bus. Strat. Env. 11, 285
297 (2002)
72
Internet Sources
1. www.allprojectreport.com
2. www.populationcommission.nic.in
3. www.greenmarketing.com
4. www.awea.org
5. www.ecomall.com
6. www.google.com
7. www.LG.com
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PROJECT ON GREEN MARKETING

In partial fulfillment of the Requirement for the

Under the Guidance of

Project Guide, Prepared By,

This is to certify that the study presented by Mr. Siddharth D Ramteke to

Signature of the Candidate

Signature of the Guide

With a deep sense of pride, satisfaction and gratitude, I present my project

Mr. Siddharth D Ramteke

GREEN MARKETING is the business practice that considers consumers

Promotional activities aimed at taking advantage of the changing consumer

"Green Marketing" refers to holistic marketing concept wherein the

As a philosophy, green marketing runs parallel to the societal marketing

LG Corporation is a South Korean multinational conglomerate corporation. It

the development and marketing of products like the LG refrigerators designed to

IMPORTANCE AND SIGNIFICANCE:

Some of the advantages of green marketing are,

1. It ensures sustained long-term growth along with profitability.

3. It helps companies market their products and services keeping the

4. It helps in accessing the new markets and enjoying competitive advantage.

Greening product or market is viewed as the outcome of rational strategic

1. Organizations perceive environmental marketing to be an opportunity that

2. Organizations believe that they have to be more ethically and socially

3. Eco friendly competitor pressure makes the firms to change their

4. Cost factors associated with waste disposal, or reductions in material usage

1. To Study consumer preference shift from non-green products to green

2. To Study Consumer awareness for environmental concern.

3. To study the future of consumer preference for green products.

Following hypothesis were formulated to articulate the objectives of the

1. Response of consumers sales increased to green marketing strategy in the

2. LG is successful to adopt green marketing strategy in India for the promotion

2. SAMPLE SIZE The sample size would be consisting of:

a. 100 Consumers from Lal Chakki, Ulhasnagar

3. SAMPLING DESIGN Since it is difficult to contact the entire population,

a. The primary data will be collected by using questionnaires. Like yes or

5. TABULATION, ANALYSIS AND INTERPRETATIONS :

This project will help to know consumer preference between non-green

Chapter II : Theoretical Background

Chapter III : LG Corporation Profile

Chapter IV : Data Compilation

Chapter V : Data Presentation and Analysis

Chapter VI : Finding and Inference

Chapter VII : Suggestion and Conclusion

According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for

In essence, there is no definition of "how good is good enough" when it comes

Despite these challenges, green marketing has continued to gain adherents,

A GREEN MARKET IN NEWCASTLE

A GREEN MARKET IN NEWYORK

WHAT IS GREEN MARKETING?

Unfortunately, a majority of people believe that green marketing refers solely

Thus green marketing incorporates a broad range of activities, including

The AMA workshop attempted to bring together academics, practitioners, and

The study of the positive and negative aspects of marketing activities on

This early definition has three key components

1. It is a subset of the overall marketing activity;

While this definition is a useful starting point, to be comprehensive green

Green or Environmental Marketing consists of all activities designed to

This definition incorporates much of the traditional components of the

WHAT ARE GREEN PRODUCTS

Although no consumer product has a zero impact on the environment, in

Greener, more sustainable products need to dramatically increase the

WHY IS GREEN MARKETING IMPORTANT?

The question of why green marketing has increased in importance is quite

THE SYMBOL USED TO DENOTE RECYCLABLE ITEMS