A

PROJECT REPORT ON
“GREEN MARKETING-SUSTAINABILITY AT
PHILIPS ”

submitted in partial fulfillment for the award of the degree of

BACHELOR OF COMMERCE (HONOURS)

Submitted By
MANISHA RATAN
H.T.NO: 1170-15-407-008

Under the guidance of

Mr. KULDIP RAI
Associate. Professor

DEPARTMENT OF COMMERCE

R.G. KEDIA COLLEGE OF COMMERCE

(Affiliated to Osmania University)
Esamia Bazar, Chaderghatt,
Hyderabad
(2015-2018)
 DECLARATION

I here by declare that project work entitled “GREEN MARKETING-

SUSTAINABILITY AT PHILIPS” submitted by me to “R.G. KEDIA
COLLEGE OF COMMERCE”, Osmania University, Hyderabad is a bonafide
work undertaken by me and it is not submitted to any other University or
Institution for the award of any degree / Diploma certificate or published any
time before.

Signature of the candidate

MANISHA RATAN
(H.T.NO: 1170-15-407-008)
 CERTIFICATE FROM GUIDE

This is to certify that the Project Report entitled “GREEN MARKETING-

SUSTAINABILITY AT PHILIPS” submitted in partial fulfillment for the
award of degree of Bachelor of Commerce, Osmania University, Hyderabad,
was carried out by MANISHA RATAN under my guidance. This is not been
submitted to any other University or Institution for the award of any
degree/certificate.

Signature of the guide Signature of the guide

Mr. KULDIP RAI
 ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of

gratitude to the authorities of (Philips India Limited, A subsidiary of
Koninklijke Philips N.V ) for giving me the opportunity to under take this
project work in their esteemed organization. I profusely thank to general
manager.

I would like to thank PROF. Dr. D.V.G.KRISHNA, Director, “R.G.

KEDIA COLLEGE OF COMMERCE”. His guidance and inspiration had
equipped me with the confidence needed in undertaking this project.

I wish to express my sincere thanks to Mrs. SUJATHA PATWARI,

Principal, “R.G. KEDIA COLLEGE OF COMMERCE”, for her
Knowledge, Guidance and Excellent support for successful completion of
my project.

I would also like to thank my project guide faculty Mr. KULDIP RAI of
“R.G. KEDIA COLLEGE OF COMMERCE” for giving valuable
suggestions in doing my project work. I am also thankful to all those who
have helped me through their valued guidance, co-operation and unstinted
support during the course of my project.

MANISHA RATAN
 INDEX

CHAPTER CONTENTS PAGE

NO. NO.

1. INTRODUCTION 1-6

2. REVIEW OF LITERATURE
7-19

3. COMPANY PROFILE
20-36

4. DATA ANALYSIS &

INTERPRETATION
35-53

5. FINDINGS
CONCLUSION & 54-56
RECOMMENDATION

BIBLIOGRAPHY 57

APPENDIX 58-59
 CHAPTER-1
INTRODUCTION
 Although environmental issues influence all human activities, few
academic disciplines have integrated green issues into their literature. This is
especially true of marketing. As society becomes more concerned with the natural
environment, businesses have begun to modify their behavior in an attempt to address
society's "new" concerns. Some businesses have been quick to accept concepts like
environmental management systems and waste minimization, and have integrated
environmental issues into all organizational activities. Some evidence of this is the
development of journals such as "Business Strategy and the Environment" and"
Greener Management International," which are specifically designed to disseminate
research relating to business' environmental behavior.

Environmentally-responsible or "green" marketing is a business practice that takes

into account the consumer concerns about promoting preservation and conservation of
the natural environment. Green marketing campaigns highlight the superior
environmental protection characteristics of a company's products and services. The
sorts of characteristics usually highlighted include such things as reduced waste in
packaging, increased energy efficiency of the product in use, reduced use of
chemicals in farming, or decreased release of toxic emissions and other pollutants in
production.

Marketers have responded to growing consumer demand for environment-friendly

products in several ways, each of which is a component of green marketing. These
include:

 Promoting the environmental attributes

of products.

 Introducing new products specifically

for those concerned with energy
efficiency, waste reduction
,sustainability, and climate control &

 Redesigning existing products with an eye towards these same consumers.

Marketing campaigns touting the environmental ethics of companies and the
environmental advantages of their products are on the rise.

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.

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MEANING:

Green marketing refers to the process of selling products and/or services based on
their environmental benefits. Such a product or service may be environmentally
friendly itself or produced in an environmentally friendly way, which includes:

 Being manufactured in a sustainable fashion.

 Not containing toxic materials or

ozone-depleting substances.

 Able to be recycled and/or is produced

from recycled materials.

 Being made from renewable materials

(such as bamboo, etc.)

 Not making use of excessive packaging.

 Being designed to be repairable and not "throwaway".

DEFINITION:

“The marketing of products that are presumed to be environmentally safe”

– American Marketing Association, (Green Markets International, Accessed 2008)

“Promotional activities aimed at taking advantage of the changing consumer attitudes

toward a brand. These changes are increasingly being influenced by a firm’s policies
and practices that affect the quality of the environment, and reflect the level of its
concern for the community”
– Businessdictionary.com, (accessed 2010)

“Integrating business practices and products that are friendly to the environment while
also meeting the needs of the consumers”
– Pearson Education, (accessed 2010)

SCOPE OF GREEN MARKETING:

1. It is predicted that the future markets would be directly linked to the

development, transfer and implementation of eco-friendly technologies,

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 referred to as Environmental Technologies (ET). All kinds of ET are available
now.

2. Apart from producing environment-friendly products and selecting

environment-friendly markets, essentially understanding of “Environmentally
Friendly” is required to be integrated into the corporate culture.

3. In order to develop goods that can appeal to the consumer, reasonably

affordable prices and environment-friendly products causing minimal damage
are required.

4. Companies should be aware of their responsibilities towards the environment

and the society in the same way as towards clients, shareholders and
employees. Climate change, environmental issues and social problems will
challenge the leaders of future generation for taking efficient and
comprehensive decisions. In the process of taking these decisions, the priority
of business people should be based on the principal of protecting the
environment rather than profitability of the business.

OBJECTIVES OF THE STUDY:

 To study the benefits of Green Marketing Practices to Consumers and

firms.

 To study the consumer’s awareness and preferences of Eco-friendly

sustainable products.

 To study the challenges faced by “PHILIPS” while implementing

Green Marketing and The strategies adopted to overcome the
challenges.

 To study the extent of implementation of Green Marketing Practices

among “PHILIPS”

-3-
TRENDS IN GREEN MARKETING:

Businesses and Green Marketing- There are serious changes for awakening in the
business world regarding the responsibility towards the environment and the society.
Strategies targeting not only making a profit for the day but also for long-term
profitability and environmentally friendly sustainability have started to become
agendas of the companies. Corporate ethical code of the 21st century is being green.
The concept of creative capitalism defined by Bill Gates underlines that the leaders of
future generations are responsible not only for obtaining desired results but also for
the impacts of their decisions on elements other than their own companies and
markets.

Customers and Green Marketing - Consumers are increasingly better informed and
becoming aware of the environmental impact of consumer products and are thus
demanding that industry improves the environmental performance of its products.
Today consumers are more enlightened and especially in developed countries, they
even seek for sustainable development for their children.

Government and Green Marketing - The threat of tougher legislation and the rising
costs of complying with environmental regulations and penalties in case of
noncompliance are possible motivating factors for firms to incorporate environmental
concerns in their strategies In India the Governments enacted laws concerning
pollution control and environmental protection, including Environment (Protection)
Act 1986, the Air (Prevention & Control of Pollution) Act 1981 & the Water
(Prevention & Control of Pollution) Act 1974.

Investor and Green Marketing -Investors are increasingly examining the

environmental records of potential investments, and some are showing a tendency to
invest in “Greener” companies. This behavior is based on the expectations that these
companies will benefit commercially from their green image and there are efficiency
gains associated with the adoption of cleaner technologies. A survey indicated that,
among the different kinds of environmental information required by investors,
liabilities and litigation were ranked first and second respectively.

Community and Green Marketing -Local communities represent a powerful

pressure for improved environmental performance, particularly where firms are
located in close proximity to residential areas. This is applicable to both developed
and developing countries. Where problems and nuisance are associated with noise,
vibration, and dirty/ foul smell; local communities, both directly and indirectly
through complaints to local environmental health departments are capable of bringing
considerable pressure to reduce environmental problems.The result of many national
polls tracking environmental concern among the general public indicate that
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environmental protection remains high on the agenda of the public in many countries,
despite escalating economic woes in some areas. Three separate national surveys,
conducted in the US more than a decade ago by the Yankelovich Organisation, the
Roper Organization and Simmons Market Research Bureau, indicate that between 25
% and 43 % of the American population constitute the “Green” segment: consumers
who are concerned about the environment (Earle, 1993).

Business-to-Business Customers and Green Marketing – The buyers evaluate

supplies on ISO 14000 standards, the environmental counterpart to ISO 9000, the
International quality standard. Moreover, they look for suppliers who follow
environmental friendly processes or Good Manufacturing Practices (GMP).

Employees and Green Marketing - The interests and aspiration of the work force of
trade unions represent potential pressure resulting in lies a strong interest in the
environmental performance and health and safety aspects of the plant.

GOLDEN RULES OF GREEN MARKETING:

Know your Customer: Make sure that the consumer is aware of and concerned about
the issues that your product attempts to address.

Educating your customers: It is not just a matter of letting people know, whatever
you're doing is to protect the environment, but also a matter of letting them know why
it matters.

Being Genuine & Transparent:

a) You are actually doing what you claim to be doing in your green marketing
campaign and b) The rest of your business policies are consistent with what ever you
are doing that's environment friendly.

Reassure the Buyer: Consumers must be made to believe that the product performs
the job ,but should not forget product quality in the name of the environment.

Consider Your Pricing: If you are charging a premium for your product and many
environmentally preferable products cost more due to economies of scale and use of
higher-quality ingredients , make sure those consumers can afford the premium and
feel it's worth it.

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METHODOLOGY OF THE STUDY:

Data collection plays a very crucial role in the statistical analysis. In research, there
are different methods used to gather information, all of which fall into two categories,
i.e.
 Primary data
 Secondary data

Primary data: It means the raw data (data without fabrication or not tailored data)
which has just been collected from the source and has not gone any kind of statistical
treatment like sorting and tabulation. The term primary data may sometimes be used
to refer to first hand information.
Used: Questionnaire

secondary data: Data which has already been collected by someone, may be sorted,
tabulated and has undergone a statistical treatment. It is fabricated or tailored data.
Used : websites, Journals and Books.

SAMPLING: Sampling is a process used in statistical analysis in which a

predetermined number of observations are taken from a larger population.
Used: 50 random people including both male and female are being surveyed here. All
the citizens are from Hyderabad around the age 19-53.

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 CHAPTER-2
REVIEW OF LITERATURE
EVOLUTION OF GREEN MARKETING:

Green marketing term was first discussed in

a seminar on ―Ecological Marketing‖ organized
by American Marketing Association (AMA) in
1975 and took its place in the literature. The term
green marketing came into prominence in the late
1980s and early 1990s.

The first wave of green marketing occurred in the 1980s. The tangible
milestone for the first wave 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.
According to Peattie (2001), the evolution of green marketing has three phases.

 The first phase was known as "Ecological" green marketing, and during this
period all marketing activities were concerned to help environment problems
and provide remedies for environmental problems.

 The second phase was "Environmental" green marketing and the focus shifted
on clean technology that involved designing of innovative new products,
which take care of pollution and waste issues.

 The third phase was "Sustainable" green marketing. It came into prominence
in the late 1990s and early 2000. This was the result of the term sustainable
development which is defined as "meeting the needs of the present without
compromising the ability of future generations to meet their own needs."

CHARACTERISTICS OF GREEN PRODUCTS:

 Products those are originally grown.

 Products those are recyclable, reusable and biodegradable.

 Products with natural ingredients.

 Products containing recycled contents and non toxic chemical.

 Products contents under approved chemicals.

 Products that do not harm or pollute the environment.

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  Products that will not be tested on animals.

 Products that have eco-friendly packaging i.e. reusable, refillable containers

etc.

GREEN MARKETING AND SUSTAINABLE DEVELOPMENT:

Green marketing is typically practiced by companies that are committed

to sustainable development and corporate social responsibility. More organizations
are making an effort to implement sustainable business practices as they recognize
that in doing so they can make their products more attractive to consumers and
also reduce expenses, including packaging, transportation, energy/water usage, etc.
Businesses are increasingly discovering that demonstrating a high level of social
responsibility can increase brand loyalty among socially conscious consumers.

Public Works and Government Services Canada has information on green

procurement principles and resources for businesses. Ethical sourcing has become
important to companies and consumers alike.

PRODUCT SYSTEM LIFE-CYCLE:

The Product System Life-Cycle was early proposed

by Donald A Fuller, Jeff Allen and Mark Glaser in
1996.To be Eco-friendly, one has to understand the
concept of Product system life cycle. This concept
represents the merger of two key business dimensions:
a) The resources cycle and
b) Distribution channels.
Resource life cycle is a concept that describes the flow of resources from cradle to
grave wherein the following stages are distinctly visible:

 Extraction
 Processing of extracted material
 Production / Manufacturing / Development
 Distribution of the product
 Consumption of the product
 Disposal of the waste or surplus, if any

Extraction Production Consumption

Processing Distribution Disposal of

waste

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 Though disposal of waste is a separate stage, one needs to keep in mind that
waste disposal is a concurrent activity associated with all the earlier stages in the
resource life cycle. Further, resources life cycle and distribution channels represent
organizations and customers engaged in purposive resource centric activities that are
performed both concurrently and sequentially.

Therefore, Product system life-cycle (PSLC) is based on the assumption that it

is profitable to both organization and customers to ensure a particular direction of
flow of a resource. Hence, it involves an analysis not from the extraction stage but
from the waste stage.

FLOWS IN PSLC MODEL:

Midstream flow: Midstream flow consists of main product's marketing strategy that
determines the characteristics of products and production, forms and packaging for
the marketing of consumption goods by end-users and ultimately determines the
volume and quality of consumption waste generation.
Downstream flow: Downstream flow of waste generated over the distribution
networks, which play a key role in the process of waste production and management.
Decisions within the context of this flow may well determine lesser pollutant
emissions, resources consumption or components assembled, translating into more
value for company objectives attaining and can be a source of important marketing
differentiation advantages.
Upstream flow: Upstream flow of reverse distribution networks and waste
management ensures their return to productive processes/processing, but now as
resources. Either to be recycled into a new resource-cycle or to be consumed as raw
material, by-materials or under the form of energy. In many cases reverse channels
can become a profit centre for the company, since it ensures transport returns
occupied, or by selling to other companies, what under product’s own perspective is a
scrap but can be a raw material or energy source for other product processes.

Upstream

PSLC
Downstream Midstream

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LIFE-CYCLE ASSESSMENT:

During the late 1980s, new instruments such as life-cycle assessment (LCA)
were invented which allowed ecological considerations to be introduced into
marketing decisions. The life cycle assessment model seeks to identify the main types
of environmental impact throughout the life cycle of a product. LCA was developed
according to ISO 14040. The main goal of the LCA is to define the energy and
environmental profile of the finished products. The reasons to use LCA arose from the
need to have a precise process accounting and to highlight potential improvements
that could be used in order to increase the environmental, energy and economic
efficiency and overall effectiveness of the processes. In addition, the purpose was to
quantify the environmental advantages deriving from the use of recycled raw material.
According to ISO 14040, the formal definition of LCA is as follows: “LCA is a
technique for assessing the environmental aspects and potential impacts associated
with a product by:

 Compiling an inventory of relevant inputs and outputs of a product system.

 Evaluating the potential environmental impacts associated with those inputs

and outputs.

 Interpreting the results of the inventory analysis and impact assessment phases
in relation to the objectives of the study.”

GREEN MARKETING STRATEGY:

Green marketing strategy, which denotes a set of marketing tools and elements,
allows a firm to serve the target market and achieve organizational goals without
harming the natural environment. At the same time, it facilitates product sales. Active
involvement in environmental protection motivates family and friends to purchase
green products, thus furthering the sustainable development in the country.

- 10 -
GREEN MARKETING MIX:

Understanding the target consumer will help marketers to know whether "greenness"
is an appropriate selling attribute and how it should be incorporated into the
marketing mix. Every company has its own set of marketing mix. The 4 P's of green
marketing are that of a conventional marketing but the challenge before marketers is
to use 4 P's in an innovative manner if they wanted to adopt the policy of green
marketing.

Product: Products that can be recycled or reused. Efficient products, which save
water, energy or gasoline, save money and reduce environmental impact. Products
with environmentally responsible packaging. Products with green labels, as long as
they offer substantiation. Organic products - many consumers are prepared to pay a
premium for organic products, which offer promise of quality. Organic butchers, for
example, promote the added qualities such as taste and tenderness. Certified products,
which meet or exceed environmentally responsible criteria.

Price: Pricing is a critical element of the marketing mix. Most customers are prepared
to pay a premium if there is a perception of additional product value. This value may
be improved performance, function, design, visual appeal or taste. Environmental
benefits are usually an added bonus but will often be the deciding factor between
products of equal value and quality. Environmentally responsible products, however,
are often less expensive when product life cycle costs are taken into consideration, for
example fuel-efficient vehicles, water-efficient printing and non-hazardous products.

- 11 -
Place: The decision of where and when to make an item accessible significantly
affects the clients being pulled in. Not very many clients make a special effort to
purchase green items simply for it. Advertisers looking to effectively present new
green items ought to, as a rule, position them extensively in the commercial center so
they are not simply engaging a little green specialty market. The area should likewise
be reliable with the picture which an organization needs to extend. The area must
separate an organization from its rivals. This can be accomplished by in-store
advancements and outwardly engaging showcases or utilizing reused materials to
underline the natural and different advantages.

Promotion: Promoting products and services to target markets includes paid

advertising, public relations, sales promotions, direct marketing and on-site
promotions. Smart green marketers will be able to reinforce environmental credibility
by using sustainable marketing and communications tools and practices. Never
overstate environmental claims or establish unrealistic expectations, and communicate
simply and through sources that people trust. Promote your green credentials and
achievements. Publicize stories of the company’s a environmental awards programs to
profile environmental credentials to customers and stakeholders.

Additional social marketing "P's" that are used in this process are:

Publics Effective: Social Marketing knows its audience, and can appeal to multiple
groups of people. "Public" is the external and internal groups involved in the program.
External publics include the target audience, secondary audiences, policymakers, and
gatekeepers, while the internal publics are those who are involved in some way with
either approval or implementation of the program.

Partnership: Most social change issues, including "green" initiatives, are too
complex for one person or group to handle. Associating with other groups and
initiatives to team up strengthens the chance of efficacy.

Policy: Social marketing programs can do well in motivating individual behavior

change, but that is difficult to sustain unless the environment they're in supports that
change for the long run. Often, policy change is needed, and media advocacy
programs can be an effective complement to a social marketing program.

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DIFFERENCE BETWEEN TRADITIONAL MARKETING AND
SUSTAINABLE MARKETING (Marketing Mix) :

TRADITIONAL GREEN MARKETING

MARKETING
1) Focus on traditional 1) Focus on traditional
Product customer benefit. customer benefits and
2) DFX where “X” designates ecological benefits. 2) Benefits.
traditional products attribute. Product DFE where “E”
designates ecological attributes.

1) Short term focus on 1) Focus on long term life

Pricing costs/price and value added.
2) No separate costing to
identify or allocate eco costs.
Pricing to reflect traditional
product ownership(title
transfer)
cycles cost/prices and Life
cycles value added.
2) Use of activity based costing
to indentify eco cost and
allocate them to the products
responsible for them.Pricing to
reflect “product as Services”.

1) Traditional functional, 1) Addition of

Channel product support and customer “Reverse/Green” logistics
networks(plac access issues within the functional support for P2 and
e/distribution) immediate channel network. R2. Use of Strategic alliances
2) Traditional channel member to cover the extended product
selection criteria. system Lifecycle .
2) Addition of “Green Factor”
as Channel member supplier
selection Criteria.

1) Appeals based on direct 1) Appeals based on direct

Communicati consumer functional and consumer functional and
on emotional benefits. emotional benefits and indirect,
(Promotion) 2) Educate customer about long term ecological benefits.
product benefits. 2) Educate consumer about
long term ecological benefits
and Values.

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LEVELS OF GREENING:

The three levels at which Green marketing activities can occur within the firm are -
Tactical, Strategic, or Quasi-strategic.

Tactical Greening relates to decisions at the functional level and involves the use of
organizational resources to achieve specific marketing objectives (Eg: Promoting
green image.

Quasi-strategic greening responses concern the use of changes in business practices

aimed at furthering the organization ’s competitive position in existing businesses and
markets (Eg: Development of a green brand).

Strategic greening connects a fundamental change in corporate philosophy, an

irreversible commitment to the principles of sustainability that is reflected in
decisions relating to market participation and development ( Eg: Entering new
business or markets or exiting others).

Tactical Greening

Quasi-strategic greening

Strategic greening

QUASI-
TACTICAL STRATEGIC
STRATEGIC
GREENING GREENING
GREENING
Ads mentioning A firm develops a A firm launches a
green features are run green brand in new Strategic
in green-focused addition to its other Business Unit (SBU)
Targeting
media. brands. aimed at the green
market.

A firm switches from Life-cycle analysis is Firms can develop its

one raw material incorporated into the Green Wrap paper to
Green supplier to another eco-design process to be more eco-friendly
design with more eco- minimize eco-harm. from the ground up.
friendly processes

- 14 -
 Companies can run a A company can It can pursue
Public Relations (PR) redesign its logo to a environmental and
campaign to highlight sun based emblem to social change
Green its green aspects and reflect its view to a improvements and
positioning practices. hydrogen/ solar- encourage its
based future for the consumers to do so as
energy industry well.

Cost savings due to E.g. a water company A company rents its

existing energy- shifts its pricing products rather than
efficiency features policy from a flat selling; consumers
Green
are highlighted for a monthly rate to a per- now pay only for use
pricing
product. unit-of-water used of the products.
basis

A firm changes to a Packaging A reverse logistics

more concentrated minimization is system is put into
detergent, which. incorporated as part place to reprocess and
Green
of a firm’s remanufacture
logistics
manufacturing review photocopiers.
process

A firm improves the E.g. TELSTRA ( a E.g. A Queensland

efficiency of its phone company) has sugar-cane facility is
manufacturing internal processes so rebuilt to be
process, which that old telephone cogeneration-based,
Marketing
lowers its waste directories(waste) are using sugarcane waste
waste
output. collected and turned to power the
into cat litter products operation.
by other companies.

An oil company runs A company sets a As part of its

a PR campaign to policy that realistic philosophy, the
highlight its green product eco-benefits BODY SHOP co
practices in order to should always be promotes one or more
Green
counter an oil spill mentioned in social/eco campaigns
promotion
getting bad press promotional each year with in-
coverage. materials. shop and promotional
materials.

A company funds a a competition (one- A company invites a

competition (one-off off basis) run by an representative of an
Green basis) run by an environmental group environmental group
alliance environmental group to heighten to join its board of
to heighten community

- 15 -
 community awareness on storm directors.
awareness on storm water quality issues.
water quality issues.

GREEN WASHING:

"Consumers do not really understand a lot about these issues on Green

marketing, and there's a lot of confusion out there in the minds of the customer about
what actually green marketing is all about," says Jacquelyn Ottman (Author of "Green
Marketing: Opportunity for Innovation.") Marketers sometimes take advantage of this
confusion, and purposely make false or exaggerated "green" claims.

Critics refer to this practice as "green washing" which means trying to sell the
customers those products which are not environment friendly but the company claims
them to be environment friendly. Since then green washing has become a central
feature of debates about marketing communications and sustainability, with “awards”
for green washing established and numerous campaigns, law and advices developed in
an attempt to reduce or curb it.

GREEN MARKETING MYOPIA:

Green marketing is the marketing of products that are presumed to be environmentally

safe. In order to be successful, green marketing must fulfill two objectives:

 Improved environmental quality and

 Customer satisfaction.

- 16 -
Misjudging either or overemphasizing the former at the expense of the latter can be
defined as green marketing myopia.

REASON FOR FIRMS USING GREEN MARKETING:

While looking through the literature there are several suggested reasons for firms
increased use of Green Marketing. Five possible reasons cited are:

i. Organizations perceive environmental marketing to be an opportunity that can

be used to achieve its objectives [Keller, 1987; Shearer, 1990].

ii. Organizations believe that they have a moral obligation to be more socially
responsible [Davis,1992; Freeman and Liedtka,1991; Keller,1987; McIntosh,
1990; Shearer, 1990;]

iii. Governmental bodies are forcing firms to become more responsible [NAAG,
1990;]
Competitors environmental activities pressurize firms to change their
environmental marketing activities [NAAG,1990;] and

iv. Cost factors associated with waste disposal or reductions in material usage
forces firms to modify their behavior [Azzone and Manzini,1994;].

Opportunity: In India, around 25% of the consumers prefer environment friendly

products, and around 28% may be considered health conscious. Therefore, green
marketers have diversified to fairly sizeable segment of consumers to cater to.

Social Responsibility: Many companies have started realizing that they must behave
in an environment friendly fashion. They believe both in achieving environmental
objectives as well as profit related objectives respecting the principle of Extended
Producer Responsibility (EPR).

Governmental Pressure: Various regulations are framed by the government to

protect consumers and the society at large. The Indian government too has developed
a framework of legislations to reduce the production of harmful goods and by-
products. These reduce the industry's production and consumer‘s consumption of
harmful goods, including those detrimental to the environment; for example, the ban
of plastic bags, prohibition of smoking in public areas, etc

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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.

Cost Reduction: Reduction of harmful waste may lead to substantial cost savings.
Sometimes, many firms develop a symbiotic relationship whereby the waste
generated by one company is used by another as a cost-effective raw material

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REASON FOR MANUFACTURERS USING GREEN MARKETING:

Green manufacturing has become a powerful marketing tool. Consumers increasingly

have begun buying green products that are more cost effective and healthier and leave
less of a carbon footprint on our planet. As a result, manufacturers are developing
products that fit this need. At the same time they are implementing supply chains that
are greener.
The basics of green manufacturing focus on minimizing the impact of the
manufacturing process on the environment. It begins with the development of green
products and extends to implementing a green supply chain. Once this has been done,
green manufacturing can be turned into a marketing advantage.

Green Supply Chain: To be successful, green products require a green supply chain.
Supply chains involve everything from the purchase of production materials to the
delivery of the finished product to the customer. This means every aspect of a
business needs to adopt a green approach. To make this happen, manufacturers need
to implement an overall green strategy

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 CHAPTER-3
COMPANY PROFILE
KONINKLIJKE PHILIPS N.V. (PHILIPS)

Sector : Technology

Industry : Consumer electronics, Lighting, Healthcare

Global
Headquarter : Amsterdam, Netherlands

Branches : Australia &New Zealand, India, Indonesia,korea, Singapore

(Countries)
Branches In
India : Gurgaon, Kolkata, Bengaluru, Chennai, Hyderabad, Mumbai

Founders : Gerard Philips, Frederik Philips

Founded on : 15 May 1891, Eindhoven, Netherlands

EXECUTIVE COMMITTEE
CEO : Frans van Houten (1 Apr 2011– )
(Chief Executive officer)

CFO : Abhijit Bhattacharya (2015– )

(Chief Financial officer)

CLO :Marnix van Ginneken (2017– )

(Chief Legal officer)

Executive : Egbert van Acht, Sophie Bechu,

Abhijit Bhattacharya,

Vice-President : Rob Cascella, Marnix van Ginneken , Andy Ho,Henk de Jong,

Ronald de Jong , Carla Kriwet, Vitor Rocha, JeroenTas

SUPERVISORY BOARD
Chairman : Jeroen van der Veer

BOD : Jeroen van der Veer, NeelamDhawan, Orit Gadiesh, ChristinePoon

Heino von Prondzynski, David Pyott, Jackson Tai
(Board of Directors)

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THE WAY IT STARTED….

The foundations of Philips were laid in 1891 when Gerard

Philips and his father Frederik Philips established Philips
& Co. in Eindhoven (Netherlands) – to “manufacture
incandescent lamps and other electrical products”.
Koninklijke Philips N.V. (Philips, stylized as PHILIPS) is
a Dutch technology company headquartered
in Amsterdam, currently focused in the area of healthcare.
It was once one of the largest electronic conglomerates in
the world and currently employs around 105,000 people
across more than 60 countries.
A few years later, in 1895, Gerard's brother Anton Philips joined the young company.
He proved to be a great commercial talent and within a few years Philips was one of
the world’s leading producers of light bulbs.

Over the years since then, they have continued to improve people’s lives with a steady
flow of ground-breaking innovations:

1891 – 1915
FROM LIGHT REVOLUTION TO PRODUCT EVOLUTION

1915 – 1925
INNOVATION AND DIVERSIFICATION: X-RAYS AND RADIO RECEPTION

1925 – 1940
THE FIRST RADIOS, TELEVISIONS AND ELECTRIC SHAVERS

1940 – 1970
A SUCCESSION OF TECHNOLOGY BREAKTHROUGHS

1940 – 1970
A SUCCESSION OF TECHNOLOGY BREAKTHROUGHS

1980 – 1990
TECHNOLOGICAL LANDMARK: THE COMPACT DISC

1990 – 2000
FAR-REACHING CHANGES AND NEW SUCCESSES

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21st century
ENDURING COMMITMENT TO INNOVATION

PHILIPS JOURNEY TOWARDS HEALTHIER & MORESUSTAINABLE

WORLD….

Our current approach is rooted in decades of activities and experience in finding

sustainable solutions. Today, we drive sustainable innovation by considering both the
needs of people and the ecological capacity of the planet.

1900 – 1965
SOCIAL FOCUS
1900
VARIOUS PHILIPS HEALTH INSURANCE ARRANGEMENT

1920
START OF PHILIPS HOUSING PROGRAM

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1961
SWITCH TO 5 DAY WORKING WEEK IN PHILIPS

1965 – 2000
ENVIRONMENTAL AGENDA

1970
SUPPORTING THE CLUB OF ROME

PHILIPS super computers calculated the future scenario’s of the Club of Rome. The
Club of Rome is a global think tank driven by a common concern for the future of
humanity.

1971
PHILIPS

CORPORATE ENVIRONMENTAL FUNCTION ESTABLISHED

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1994
FIRST ‘ALL ASPECTS’ ACTION PROGRAM

Improving on energy and water consumption, waste recycling and emissions of

hazardous substances in our operations.

1998
LAUNCH OF FIRST PHILIPS ECOVISION PROGRAM

Scope expanded from operations only to include environmental performance of our

products.

2000-2012
ACCELERATING IN SUSTAINABILITY

2003
EXTENDING THE SCOPE OF THE PHILIPS SUSTAINABILITY PROGRAM TO
OUR SUPPLY CHAIN

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2008
PHILIPS JOINED LEADERS FOR NATURE

Focusing on biodiversity and ecosystems as part of wider sustainability and business

policies.

2009
LAUNCH OF SIMPLY HEALTHY @ SCHOOLS

PHILIPS’ global community program, helping underprivileged school children live

healthier lives.

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2010
PHILIPS RANKED THIRD IN GREENPEACE’S ‘GUIDE TO GREENER
ELECTRONICS'

2011
SUPER SECTOR LEADER IN THE DOW JONES SUSTAINABILITY INDEX

PHILIPS was elected best in the category personal and household goods.

2012
INCLUDING THE SOCIAL DIMENSION IN OUR PRODUCTS

2013
AND BEYOND....OUR FUTURE

2013
PARTNER OF THE ELLEN MACARTHUR FOUNDATION
This foundation aims to accelerate the transition to a circular economy.

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OURFUTURE ...
For a sustainable world, the transition from a linear to a circular economy is a
necessary boundary condition. A circular economy
requires innovation in the areas of material, component
and product reuse, as well as related business models. By
using materials more effectively, economic growth will
eventually be decoupled from the use of natural resources
and ecosystems. In such an economy, the lower use of raw
materials allows us to create more value.

At Philips, they strive to make the world healthier and more sustainable through
innovation. Their goal is to improve the lives of 3 billion people a year by 2025.
Their EcoVision program is a main driver to realize this company vision.

GREEN PRODUCTS:

Philips Healthcare (Ambient Experience): An environment with diagnostic

instruments (like MRI scans) and lights that generate a welcoming and comforting
hospital environment

Philips Lifestyle (Consumer Products) : A digital photoframe and DirectLife, an

instrument to measure the daily physical activities and

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Philips Lighting : Master LED light, 25.000 hours lifespan, designed to replace
conventional 25 or 40 Watt lights bulbs.

ENVIRONMENTALAPPROACH:

At Philips they invest in the developments of Green Technologies and enable

their consumers to contribute to a healthier world on a day to day basis by choosing
green products. They take actions to continuously reduce the ecological footprint of
their operations and supply chain and secure healthy ecosystems. Their commitment
to the circular economy mindset is helping them to close the materials loop and
transition towards new business models.

ECOVISION:

Philips has a long sustainability history stretching all the way back to their
founding fathers. In 1994, they launched their first program and set sustainability
targets for their own operations. Next they launched their first “EcoVision” program
in 1998 which focused on the environmental dimension of their operations and
products. They also started to focus on sustainability in their supply chain in 2003.
They extended their scope further in 2010 by including the social dimensions of
products and solutions, which is now reflected in their company vision.
Philips publishes every year a full Integrated Annual Report with the highest

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(reasonable) assurance level on the financial, social and environmental performance.
With that overall reasonable assurance level Philips is a frontrunner in this field.
KPMG has provided reasonable assurance on whether the information in
Sustainability statements, Social performance and Environmental performance
presents fairly in all material respects, the sustainability performance in accordance
with the reporting criteria. They refer to Independent Auditor's Assurance Report.

The main strategies of the EcoVision programs are:

 Improving people’s lives

 Green Product sales

 Green Innovation, including Circular Economy

 Green Operations

 Health and Safety

 Supplier Sustainability

GOALS TO ATTAIN SUSTAINABILITY:

Philips, together with its partners, are delivering on our commitments to the United
Nation’s Sustainable Development Goals. As a leading health technology company
focused on improving people’s lives through meaningful innovation, it’s only natural
that everything they do is aligned with the Sustainable Development Goals (SDG).
They aim to improve the lives of 3 billion people a year by 2025 and have 95% of
Philips revenue linked to the SDGs. They will achieve this by continuing to focus on:

GOOD HEALTH AND WELL BEING:

(Ensure healthy lives and promote well-being for all at all ages)

Health of women and children Philips is committed to the UN’s Every Woman,
Every Child global movement by pledging to improve the lives of 100 million women
and children by 2025.

Innovating for Impact the Philips Foundation has established shared-value

partnerships and is innovating for vulnerable communities around the world.

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Empowering heart health Philips is partnering with the World Heart Federation to
help people manage their heart health as part of a bid to reduce the world’s leading
cause of deaths

RESPONSIBLE CONSUMPTION AND PRODUCTION:

(Ensure sustainable consumption and production patterns)

circular economy design and business models to innovate with their customers, such
as the Westchester Medical Center Health Network (US), on health solutions as well
as in delivering them in the most resource efficient way.

They aim to be Carbon neutral in their operations by 2020. Maersk Line, is their
partner in ensuring that they are able to cut 20% of CO2 emissions for every Philips
container moved.

Sustainable supply chain Philips is a strategic partner of the European Partnership

for Responsible Minerals, a multi-stakeholder initiative designed to stimulate
responsible mineral trade.

CSR CONTRIBUTE TO INNOVATION:

Green Product Development: Procedures for Green Product Development have

been implemented in all Philips Divisions supported by internally provided
EcoDesign tools. To develop its methodologies for Eco-Design, Philips
cooperates with academics, for instance with the University of Technology in

MRCI scan Achieva

Philips Green Kettle Freezer Lighting

Delft, faculty of Industrial Design Engineering. Over 2008, the level of Green
Sales was almost 23% of Philips total revenues, with an expected trend upwards
for the year 2009.
Employee engagement: ‘Employee Engagement’ is a key success factor for
Sustainable Business development, according to de Bruin. Three questions of the
Annual Philips Employee Engagement Survey are related to Philips Sustainability
Implementation and Ambitions. De Bruin is happy to announce that the majority
of the Philips employees support Philips Sustainability ambitions.

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 Cooperation with NGO’s: Philips wants to play a role in the developing
countries by providing energy efficiency solutions. Cooperation with
international governmental organizations and NGOs is important to Philips, to
have continuous feedback – and avoids media conflicts, as well as offers
access to knowledge about ‘Base of Pyramid’ solutions in developing
countries. Lastly, NGO’s could become Philips business partner. An example
of a project inspired by cooperation with NGO’s is the ‘Woodstove ’pilot
project of Philips Research. The Woodstove has been tested in India, and was
commercially rolled out in the Indian market in the last quarter of2009.

 Livable cities: Partnerships to reduce energy use in city areas and

improve safety: Philips has recently joined the World Green Building
Council (WGB) joining other multinationals to discuss Energy Efficient
Building Solutions. Philips has identified cities as major energy consumer
(70% of global energy consumption). Over 60% of all lightning installed in
the EU is based on legacy and old technology. The changeover rate to new
lighting technologies (as Philips it called ‘the Green Switch) is unfortunately
very slow: street lights only 3% per year, office light 7% per year. By joining
the WGB Philips wants to accelerate this switch, notably by actively
promoting renovation of existing infrastructure (like office and city lighting).
Philips believes that with existing new technologies, better isolation and new
(LED) street lights energy efficiency savings of over 60% could be achieved
in cities.

 New Business models. Philips is developing new business models and

partnerships to achieve its Sustainable goals. One example is ‘leasing’ services
to enable customers to using a certain functionality without buying equipment.
Another very specific example is the partnership business model of the Luz
Verde project. The project is part of the UN program Clean Development
Mechanism that allow companies in industrialized nations to finance emission
reduction in developing countries. In other words: Saved carbon in developing
countries can be traded as carbon credits to governments and industries in
developed world. In this first Luz Verde project in Mexico, Philips is
providing million energy efficient lightning bulbs (Compact Fluorescent Light
Lamps), Eneco Energy Trade BV is taking care of the trade of the carbon
credits. ING wholesale is funding the project.

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  Open innovation. De Bruin explains that Philips Research activities has
evolved from internally oriented to a party that cooperates intensively with
parties in the outside world. For instance, Philips works with DSM on special
material innovation projects, it welcomes start-ups at its High Tech Campus
campus in Eindhoven and it has created open spaces at its Research Institute
Philips Natlab.

CHALLENGES & ENVIRONMENTAL STRATEGIES:

The pillars of the ‘ Healthy people, sustainable planet’ programs are:

 Creating value for their customers through Sustainable Solutions

 Leading by example in their Sustainable Operations

 Multiplying their impact by driving Sustainability through their supply

chain

SUSTAINABLE SOLUTIONS:

Green Innovation: Green Innovation is the Research & Development spend related
to the development of new generations of Green Products and Solutions and Green
Technologies.

As part of Green Innovation drive, They apply EcoDesign and circular economy
principles in designing products and solutions. First introduced at Philips as far back
as 1994, EcoDesign is an approach that considers all aspects of product development
and design. This includes life-cycle assessment to determine the environmental
impact at each stage of a product's life from raw material extraction through materials
processing, manufacture, distribution, use, repair and maintenance, and disposal or

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recycling.

The EcoDesign process led Philips to define six key Green Focal Areas for improved
environmental performance – Energy, Packaging, Substances, Weight & Materials,
Circularity and Lifetime. Philips products that outperform existing products,
competitor products, or surpass minimum legislative requirements by at least 10% in
one or more of these six key Green Focal Areas are known as Green Products.

ENERGY

Energy consumption is often the single most important factor in

determining a product’s lifecycle environmental impact. By
improving the energy efficiency of a product, We can reduce its
energy consumption and carbon footprint.

PACKAGING

Lightweight packaging, recycled content or recyclable packaging

helps minimize resource consumption and reduces the respective
product’s carbon footprint.

SUBSTANCES

Products are made using a range of substances, some of which may

have an impact on the environment. By minimizing or eliminating
the use of hazardous substances, we can reduce our products’
ecological impact.

WEIGHT & MATERIALS

By reducing the amount of materials we use, we can use fewer

resources and less energy during manufacturing and/or
transportation. Also the choice of materials – e.g. precious metals,
bio-based, bio-degradable materials – can have a positive or
negative ecological impact.

CIRCULARITY

Circularity refers to the potential of a system, product or component

to contribute to the circular economy. It is calculated by assessing
environmental performance over multiple life cycles, taking into
account, for example, the recovery of materials and their reuse in
new products. Upgrading, serviceability, refurbishment, spare parts

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harvesting, increasing recycled content and recyclability – they all help reduce the
consumption of resources. Designing products for modularity, ease of disassembly,
component re-use and material purity also stimulates the circular economy.

LIFETIME

Extending the useful lifetime of a product reduces the resource

consumption and transportation emissions associated with the
introduction of new products.

Sustainable Innovation: Sustainable Innovation is the Research & Development

spend related to the development of new generations of Products and Solutions that
address the United Nation’s Sustainable Development Goals 3 -“to ensure healthy
lives and promote well-being for all at the ages” or 12 - to ensure sustainable
consumption and production patterns” .With regard to the latter, Philips set a target of
EUR 7.5 billion(cumulative) for its Health Tech businesses over the coming five
years as part of the ‘Healthy people, sustainable planet’ program.

SUSTAINABLE OPERATIONS:

The Sustainable Operation programs, in Royal Philips and Philips Lighting focus on
the main contributions to climate change, recycling of waste, reduction of water
consumption and reduction of emissions.

Circular Economy: The transition from linear to circular economy is essential to

create a sustainable world. A circular economy aims to decouple economic growth
from the use of natural resources and ecosystems by using these resources more
effectively. It is a drive od Innovation in the areas of material, component and product
re-use, as well as new business models such as system solutions and services. In a
circular economy, more effective (re)use of materials enables the creation of more
value, both by means of cost savings and by developing new markets or growing
existing ones. The ‘Healthy people, sustainable planet’ program includes a target to
generate 15% of our revenues in 2020 from Circular Products and Solutions.

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Carbon Footprint: Carbon footprint can be defined as the total set of greenhouse gas
emissions caused by an organization, event, product or person. The name is derived
from the fact that emissions with global warming potential are calculated and
expressed as carbon dioxide equivalents; i.e. impacts are normalized and expressed in
the amount of carbon dioxide emissions that would have the same effect on our
environment. Both Royal Philips and Philips Lighting are committed to the ambition
of becoming carbon-neutral in our operations during the COP21 United Nations
Climate Summit in Paris (December 2015). The target they have set is to be 100%
carbon-neutral in their operations by 2020and sourcing all their electricity usage from
100% renewable sources.

Renewable Energy: Increasing scarcity means that obtaining energy from the sources
from which we have been obtaining them, non-renewable sources (fossil fuels, like
coal, oil, and natural gas), is becoming too expensive and/or too environmentally
damaging to retrieve. Therefore, renewable energy sources, sunlight, wind, rain, tides,
waves and geothermal heat, play an important part in combatting climate change and
energy security. Philips, as a member of renewable energy association RE100, is
committed to developing and deploying a strategy to source 100% of our electricity
consumption from renewable sources.

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Chemical Management: With their longstanding belief in the precautionary
principle, eliminating and minimizing the use of hazardous substances in our products
and production processes has been one of their priorities since the start of their
environmental activities more than three decades ago. It’s also an important part of
Philips EcoDesign process.
Philips Regulated Substances List: Philips maintains a Regulated Substances List
(RSL) for products which includes substances:

 Banned by law or by Philips

 That need to be monitored due to regulatory requirements or

 That Philips wants to monitor from a precautionary point of view.

Water for use: Since Philips deployed the EcoVision tool, more than 10 years ago, it
has been mandatory for all industrial sites to report on water withdrawal. From this
we know Philips is not a water-intensive company, as at most of their sites water is
merely used for domestic purposes. Nevertheless, the reduction of water withdrawal is
part of their Green Manufacturing program, setting a 25% reduction goal in the period
2007 – 2015. They have achieved this goal ahead of target, reaching a 46% reduction
of water withdrawal volume in 2014. This has been possible with the implementation
of several reduction programs.

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1:GREEN IMPLEMENTATION OF GREEN MARKETING AT PHILIPS

FINANCIAL YEARS : 2014-2015

(Analysed) 2015-2016
2016-2017

CONNECTED
PERSONAL DIAGNOSIS & CARE & HEALTHTECH
LIGHTIG
HEALTH TREATMENT HEALTH OTHER
INFORMATICS
2014 97 68 22 21 255
2015 99 103 18 21 254
2016 96 133 38 10 281

GREEN INNOVATION per segment (millions of EUR)

600
Lighting
500

400 281 HealthTech Other

254
255
300 Connected Care &
10
21 38 Health Informatics
200 21 18
22 133 Diagnosis &
68 103 Treatment
100
97 99 96 Personal Health
0 0
2104 2015 2016

Interpretation: Philips announced in 2010, their plan to invest a cumulative EUR 2

billion in Green Innovation during the next five years. In 2014, Philips already
achieved this EUR 2 billion target a year ahead of schedule. In 2015, Philips invested
some EUR 495 million. In 2016, Philips invested EUR 558 million in Green
Innovation while the Health businesses invested EUR 1.3 billion in Sustainable
Innovation.
Therefore, Green Innovation in increasing.

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GREEN REVENUES per segment (millions of EUR)

CONNECTED CARE &

PERSONAL DIAGNOSIS &
HEALTH LIGHTING
HEALTH TREATMENT
INFORMATICS
2014 2,937 3,858 856 4,952
2015 3,521 4,670 1,258 5,343
2016 3,951 4,798 1,442 5,536

6,000

5,000
PERSONAL HEALTH
4,000
DIAGNOSIS & TREATMENT
3,000
CONNECTED CARE &
2,000 HEALTH INFORMATICS
LIGHTING
1,000

0
2014 2015 2016

Interpretation: Green Revenues increased to EUR 11.1 billion in 2014, or 52% of

sales .Then in 2015, it increased to EUR 13.0 billion or 54% of sales and in 2016, it
increased to EUR 15.7 billion or 64.1% of sales.
Therefore, Green Revenues are increasing.

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OPERATIONAL CARBON FOOTPRINT (kilotonnes)CO2- equivalent

OPERATIOAL CARBON FOOTPRINT

2014 2015 2016
1,697 1,600 1,580

1,700

1,650

1,600

1,550

1,500
2014 2015 2016

Decrease in Carbon footprint

Interpretation: In 2014 Carbon footprint decreased by 5% compared to 2013,

resulting in a total 1,375 kilotonnes CO2. In 2015, Philips carbon footprint decreased
to 7% when compared to 2014, resulting in a total of 1,417 kilotonnes of CO2, a 41%
of decrease compared to 2007.Then in 2016 they achieved 5% carbon reduction
compared to 2015, resulting in a total of 1,344 kilotonnes of CO2 emission.
Therefore, Operational Carbon Footprint is being decreased year by year.

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RATIOS RELATING TO CARBON EMISSIONS & ENERGY USE

2014 2015 2016

Operational CO2
emissions 1,521 1,417 1,344
in kilotonnes
CO2 emissions
Operational CO2
efficiency 71 58 55
in tones CO2-
equivalent per million
EUR sales
Operational energy
use 28,741 26,792 24,824
in terajoules
Operational energy
efficiency 1.34 1.11 1.01
in terajoules per million
EUR sales

EMISSIONS

2014 2015 2016

RESTRICTED 29 26 7
SUBSTANCES
HAZARDOUS 28,310 25,101 12,412
SUBSTANCES

Emissions of restricted substances reduced from 26 kilos in 2015 to 7 kilos in

2016.In 2014, Emissions of restricted substances reduced to 9 kilos. The level of
emissions of hazardous substances decreased from 25,101 kilos to 12,412 in 2016(-
51%).In 2015, it decreased from 28,310 kilos to 25,101 kilos(-11%) and In 2014, it
decreased from 35,118 kilos to 28,310 kilos(-19%).
Therefore, Emissions from Restricted substances and Hazardous substances have
being decreased.

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WATER INTAKE (thousands of m3)

2014 2015 2016

CONTINUING
3,103 2,727 2,414
OPERATIONS
DISCONTINUED
1,700 1,684 1,651
OPERATIONS
PHILIPS
4,803 4,411 4,065
GROUP

Continuing operations = Personal health+ Diagnosis & Treatment+ Connected care

&Health informatics+ Lightning

6,000

5,000

4,000
DISCONTINUED
3,000 OPERATIONS
CONTINUING
2,000 OPERATIONS

1,000

0
2014 2015 2016

Interpretation: Total water intake in 2014 was 3.1 million m3, about 6% lower than
in 2013. 2015 was 2.7 million m3, about 12% lower than in 2014.In 2016 it was 2.4
million m3, about 11% lower than in 2015.
(In 2014 & 2015, 72% of water was purchased and remaining 28% of water was
extracted from groundwater wells. In 2016, 70% of water was purchased and 30%
was extracted from groundwater wells.)
Therefore, Water consumption is decreasing.

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WASTE (in Kilotonnes)

2014 2015 2016

CONTINUING
75.0 68.5 64.8
OPERATIONS
DISCONTINUED
5.4 6.4 6.2
OPERATIONS
PHILIPS
80.4 74.9 71.0
GROUP

Continuing operations = Personal health+ Diagnosis & Treatment+ Connected care

&Health informatics+ Lightning

100

80
DISCONTINUED
60 OPERATIONS

40 CONTINUING
OPERATIONS
20

0
2014 2015 2016

Interpretation: In 2016, total waste decreased by some 5% compared to 2015 to 64.8

kilotonnes. In 2015, total waste decreased by some 9% compared to 2014 to 68.5
kilotonnes. In 2014, total waste was comparable to 2013 at 75 kilotonnes.
Therefore, collectively Waste is being decreased.

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INDUSTRIAL WASTE DELIVERED FOR RECYCLING (in %)

2014 2015 2016

PAPER 24 23 25

GLASS 28 22 21

METAL 19 18 18

WOOD 9 10 10

CHEMICAL
6 6 8
WASTE
PLASTICS 6 6 6

OTHERS 8 15 12

30

25

20

15
2014
10 2015
5 2016

Interpretation: Total waste consists of waste that is delivered for landfill,

Incineration or Recycling. Materials are delivered for recycling via an external
contractor. It comprised 54 kilotonnes, 57 kilotonnes, 60 kilotonnes which equals
83%, 83% , 80% of total waste, comparable to 2015, 2014, 2013 respectively. Of the
17%, 17%, 20% remaining waste, 81%, 72%, 75% comprised non-hazardous waste
and 19%, 28%, 25% hazardous waste in 2016,2015,2014 respectively. A total of 6.1
kilotonnes,8.2 kilotonnes of waste was sent to landfill in 2016, 2015 respectively.
There are fluctuations in the amount of materials sent for recycling, Incineration
or Landfills.

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2:CONSUMER AWARENESS AND PREFERENCES FOR GREEN
MARKETING

Table 1: Are you aware of the campaign Green Marketing/ Sustainable Marketing?

RESPONSE NO. OF RESPONDENTS PERCENTAGE

Yes 22 44
No 28 56
TOTAL 100 100

60
50 56
40 44
PERCENTAGE
30
20
10
0
Yes No

Interpretation: From the above figure we can say that 56% of the respondents are
aware with the Green Marketing/Sustainable Marketing and the rest 44% are not
aware.

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Table 2: Did you come across the word “Green Products” ?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 10 20
Somewhat 22 44
No 18 36
Total 100 100

No 36

somewhat 44

Yes 20

0 10 20 30 40 50

PERCENTAGE

Interpretation: From the above figure we can say that 44% of the respondents are
somewhat known about Green Products, 36% of the respondents are not known and
the remaining 20% are not known.

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Table 3: Have you ever purchased Green Product/Eco-friendly Product ?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 18 36
No 32 64
Total 100 100

36%

64%

Yes No

Interpretation: From the above figure we can say that 64% of the respondents have
purchased Green products while the other 64% of the respondents did not.

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Table 4:, Sources of awareness for their effectiveness in providing information

regarding Green Marketing ?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

T.V. 14 28
Magazines/Newspapers 2 4
Seminars/Conferences 4 8
Friends/Family 2 4
Are not aware 28 56
Total 100 100

PERCENTAGE

Are not aware 56

Friends/Family 4

Seminars/Conferences 8

Magazines/Newspapers 4

T.V. 28

Interpretation: From the above figure we can observe that 56% of the respondents
are still now aware of Green Marketing and in the rest 44% of the respondents, 28%
got awareness through T.V.,8% of the respondents by Seminars/Conferences, 4% by
Magazines/Newspapers and 4% of respondents by Friends/Family.

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5:If Yes, What is the product?

GREEN PRODUCT PURCHASES BY RESPONDENTS

Philips-LED Clay Oil Lamps

Jute
Bags/Newspaper Water bottles
Bags

Tupperware
Products

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Table 6: What makes you buy Green Products?

NO.OF RESPONDENTS
1-Environmental safe 11%
2-Availability of the product 9%
3-Availability of the product 13%
4-Using Eco-friendly materials 11%
5-Using Eco-friendly materials & Recyclable Packaging 9%
6-Recyclable Packaging & Product Features 9%
7-Word “Green” sounds good 17%
8-Pressure from family/friends 21%

1-Environmental safe

21% 11%
9% 2-Availability of the
product
13%
17%
11% 3-Availability of the
9% 9% product

4-Using Eco-friendly
materials

Interpretation: As respondents are questioned to rank the above features from 1-

8,there were many different opinions. So I traced out every questionnaire and brought
the responses to 100% and interpreted every feature.

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Table 7:Do you think at times that companies are trying to cheat customers in the
name of “Green Marketing” ?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 32 64
No 18 36
Total 100 100

PERCENTAGE

64

36

yes No

Interpretation: From the above figure we observe that 64% of the respondents think
that companies cheat their customers in the name of Green Marketing while the other
36% of the respondents think companies don’t cheat their customers.

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Table 8: Do you think there is enough awareness about “Green Marketing” ?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 2 4
No 48 96
Total 100 100

Yes
4%

No
96%

Interpretation: From the above figure we can say that 96% of the respondents think
there is no enough awareness about Green Marketing and remaining 4% of the
respondents think there is sufficient information about Green marketing.

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Table 9: Do you feel that Green Marketing/Sustainable Marketing activities are good
at addressing environmental issues ?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 38 76
No 12 24
Total 100 100

24%

76%

Yes No

Interpretation: From the above figure we can say that 76% of the respondents feel
Green Marketing/Sustainable marketing activities are good against environmental
issues and remaining 24% of the respondents feel they are not good.

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Table 10: Will you participate in the campaign or be willing to buy Green Products in
future?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 18 36
Maybe 14 28
No 0 0
Total 100 100

Yes Maybe No

28%

36%

Interpretation: From the above figure we can say that 36% of the respondents say
they will participate in the campaign or will buy Green Products in future and 28% of
the respondents said they won’t participate in campaign or will buy Green Products.

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 CHAPTER-5
FINDINGS, CONCLUSIONS &
SUGGESTIONS
FINDINGS:

 The effective Green Marketing strategies of the companies can influence the
buying behavior of the consumers and induce their customers to purchase
“Green Products”.

 Majority (96 percent) respondents expressed that there is n enough awareness

about Green Marketing/ Green Products by which they are unable to name a
specific product or specific type which are Eco-friendly.

 We can say that increase in Revenues and decrease in Operational Carbon

footprint, Operational CO2 Emissions, Energy use, Water intake and Wastage
lead to Sustainability. Recycling plays an important role in promoting
Sustainable Marketing at “PHILIPS”.

 It finds that “PHILIPS” has immensely increased it sales annually, thereby

stepping towards Innovation, Social focus and Environment Approach.

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CONCLUSION:

Environment can damage the way of Life if human being. They have the
responsibility to protect Nature and Environment. Usage of Green Products will
help them to change their life style into a green One. But the awareness level of
usage of Green Products among the people is very less. From the research it is
found that most of the consumers in Hyderabad city are not aware of Green
Products and Sustainability by which most of the consumers did not purchase the
same till the date. It has highlighted various aspects of consumer behavior and
shown that consumer preferences for Green products could be influenced by
marketing.

In today’s business world, an environmental aspect has become a key issue.

Thus Green Marketing is one of the strategies for “PHILIPS” to adopt and achieve
the goals with environment-friendly activities.

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SUGGESTIONS:

 “PHILIPS ” can not only sell the Green Products but It can also educate its
customers for better Economy and as well as it’s Social responsibility.

 “PHILIPS ” can mention its Level of Greening, Which helps the

customers to change their Taste and Preferences therefore, leading to
purchase Green Products.

 Since there is lack of awareness regarding Green Products, Companies

should focus on Advertising Eco-friendly campaigns and Educating people
about Green Products.

 Not only Companies and Marketers, Government should also invite new
schemes to promote Green Marketing.

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BIBLIOGRAPHY
JORNALS:

http://www.iosrjournals.org/

http://www.questjournals.org/

http://www.irdionline.com/journals.html

WEBSITES:

https://www.philips.com/a-w/about/sustainability/introduction.html

https://thegreentake.wordpress.com/2010/01/08/philips/

https://www.researchgate.net/

https://www.omicsonline.org/

BOOKS:

Rajan Saxena, 2009.Marketing marketing 4E, Tata McGraw-Hill Education, New

Delhi.

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APPENDIX
 QUESTIONNAIRE

Name :
Age :
Gender :

1. Are you aware of the campaign Green Marketing/ Sustainable Marketing?

a) Yes b) No

2.Did you come across the word “Green Products”?

a) Yes b) Somewhat

c) No

3.Have you ever purchased any Green Product/ Eco-friendly product?

a) Yes b) No

4.If Yes, What is that product ?

5.Sources of awareness for their effectiveness in providing information regarding

Green Marketing?

a) T.V. b) Magazines/ Newspapers

c) Seminars/ Conferences d) Friends/ Family

6. What makes you buy Green Products? Rate them according to preferences from 1
to 8.

Product Features

Recyclable Packaging

Using Eco-friendly materials

Availability of the product

Price of the product (If less)

Environmental safe

Word “Green” sounds good

Pressure from family/friends

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7. Do you think at times that companies are trying to cheat customers in the name of
“Green Products” ?

a) Yes b) no

8.Do you think there is enough awareness about Green Marketing?

a) Yes b)no

9.Do you feel that Green Marketing/ Sustainable Marketing activities are good at
addressing environmental issues??

a) Yes b) no

10. Will you participate in the campaign or be willing to buy Green products in
future?

a) Yes b) maybe
c) no

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