Imapct factor(SJIF): 6.56
A Refereed Monthly International Journal of Management
**Prof. K.S. Thakur
There is an aggressive growing of awareness of the continuous environmental degradation that is facing current and future generations. The green marketing has developed into a known phrase in current years as organizations have focused on the environmentally alert consumer and growing stricter environmental rules. It notifies efforts of designing, promoting, costing and distributing products that will not damage the environment.
The pharmaceutical industry in India has been characterized by a lot of changes and an increasingly unstable environment. To live in such an environment, the firm has to regulate strategic responses and turn up with green marketing strategies for trading with the ever worsening environment. This study was therefore an examination of green marketing practices among the pharmaceutical manufacturing firms in India.
The study showed a descriptive review that involved a study of the 21 manufacturing pharmaceuticals firms targeting marketing manager or production manager in each firm. Primary data was composed by use of questionnaires; the data was studied using SPSS and data presented by use tables and percentages.
*Research Scholar, School of Studies in Management, Jiwaji University, Gwalior
**Chairman and Head, School of Commerce and Business Studies, Jiwaji University, Gwalior
green initiative, organizations often target on one or more of the three broad actions reusing, recycling and reducing. Sometimes referred to as the 3 R’s principle for environmental management, these practices are proposed at scheming the amount of natural resources waste that often accompanies organizations’ marketing pursuits. By reusing packaging (e.g. offering products in refillable containers), recycling materials (e.g. reclaiming elements from used products) and reducing resource usage (e.g. conserving energy in the production process), organizations can play an important role in protecting the environment? These practices may also aid to position specific organizations as green focused in the public’s brain and attract the ever larger green consumer section.
Reviewing these analyses, it seems evident that a lot of the troubles that have hindered the development of effectual mainstream marketing in the past have returned to destroy the progress of green marketing as well. These obstacles have contributed to the emergence of five failed manifestations of green marketing. These are: green spinning, green selling, green harvesting, enviropreneur marketing, and compliance marketing (Kalama, 2007).
1.1.3 Pharmaceutical Industry in India
The pharmaceutical industry in India has undergone many changes as being liberalized in the early 1990s. There has been an invasion of numerous pharmaceutical companies into the market, either as through franchise holders or as direct investments (Ronoh, 2002). The product range in the industry can be largely categorized in the prescription medication and non-prescription medication. In 2007, there were 9,640 doctors with fewer than 20% of these being in the public sector (India Medical Directory, 2008/2009). This results to on an average 50 doctors per 100,000 people. In the same way, there were 3,050 pharmacists, which approximately equals to 6 pharmacists per a population of 100,000.
The target market for the pharmaceutical industry constitutes the doctors who ultimately prescribe the medicine to the final customer or the patient. The other increasing target market is the pharmacist who is playing a major role in convincing doctors to alter medication in the prescription (Ongubo, 2003). Patients also play a considerable role in influencing the doctor’s prescription by considering some brands on the basis of supposed efficiency or origin. Although direct marketing of prescribed drugs is illegal, patients are
increasingly unstable environment. The pattern of competitive forces such as strength of competition, novel entrants, alternate products and supplier and buyer power have altered the environment a great deal, creating the requirement for firms to modify their competitive positions and accept green marketing as a strategy (Ndiho, 2001). Many researchers have studied the position of industries in India in accordance to changed economic and environmental situation particularly after environmental deprivation and global warming. It was found that the modified environment has affected business strategies and firms have become more proactive and competitive (Abdalla, 2001). To live in this kind of an environment, the firm needs to adjust strategic responses and turn up with green marketing strategies for dealing with the ever decreasing environment.
Whereas earlier studies by Ndiho (2001), Wachira (2001), Ronoh (2002), and Ongubo (2003), have targetted on marketing practices within the pharmaceutical industry in India, strategic alliances, and strategic responses in the pharmaceutical industry, while Obuya (2003), Kiongera (2003), Kalama( 2007), and Odhiambo (2008) have focused on green marketing by many firms, but none of them has particularly faced the usage of green marketing as a practice in the pharmaceutical manufacturing firms in India. As far as the marketing of pharmaceutical products is concerned, this remains a very crucial issue.
This study is according to the premise that the passage of time and the numerous and important changes in the business world have led to completely diverse responses to environmental problems by firms. For example, It was reported in The Hindustan Times of August 2,2009 that thousands of Indians are losing money in fatal scams operated by varying medicine clinicians with wild claims that their products are “health and natural”
But actually these are chemical compounds with dangerous side effects. A study is required that will update the previous knowledge about green marketing and green products in the pharmaceutical industry.
It is known that the pharmaceutical industry is unique and is one of the fast moving consumer products. For instance, it is expected that yearly India produces around 20-34 million tablets and capsules and over 400,000 litres of suspension and syrup. This way the production can have a huge impact in our environment. On the basis of this knowledge the
study deals with the investigation of the green marketing practices in the industry, so that the stakeholders and interested parties are aware of the environmental impact of their marketing, production and disposal of products.
1.3 Objectives of the Study
The main aim of the study was to investigate green marketing practices among manufacturing pharmaceutical companies in India.
1.3.1 Specific Objectives
The specific objectives of this study were to:
This study will give insights into green marketing to the pharmaceutical industry and a structure on which players of the industry can build their competitive marketing strategies based on green marketing.
To the government, this study will offer hints, on how pharmaceutical make a conducive atmosphere for green marketing and sustains country’s pharmaceutical industry.
The knowledge generated by this study will benefit the academicians enabling other researchers to get better and build a better understanding of green marketing by manufacturing pharmaceutical firms.
1.5 Scope of Study
The study was a vivid survey and it covered all twenty one manufacturing pharmaceutical firms that are currently operating in India. Secondary data was composed from the many publications by the pharmacy and poisons board of India, Journals and publications from a variety of manufacturing pharmaceutical firms. Questionnaires were used to collect primary data and were delivered to the manufacturing pharmaceutical firms.
Green marketing has gone through several phases since 1980s. After a backlash in the 1990s, green marketing made a comeback in the Indian markets from 2000 onwards (Ottman et al., 2006). In the Indian market economies, Market orientation and an importance on the use of market instruments in environmental policymaking have gained more popularity. For example, The World Bank (Steer, 1996), advocates the exercise of economic incentives and public information campaigns, at variance that economic policy instruments are just, more reliable and more reasonable solutions to environmental deprivation than the highly enforcement-intensive regulatory environmental policy actions. The approach based on Market to environmental policy (Turner et al., 1994) usually highlight the role and responsibility of consumers and private business enterprises in the production of environmental quality and in the evolution to sustainable global economy.
In good functioning markets, Green consumerism is a potent market force, which works to improve environmental innovation and drives firms toward environmentally responsible attitude and business ethics, effectively and with little government involvement. As per the information given by microeconomics and marketing literature, advocates of market-based environmental policy are of the opinion that the greening of consumers’ values not only compels firms to incorporate environmental issues into their business approach, but also creates novel business opportunities (Ottman et. al., 2006).
2.2 The “4 Green Ps”
The graceful “4Ps” or marketing mix model, first pre sent as the theory of parameters by Rasmussen (1955), and then developed by McCarthy (1960) and finalized by Kotler (1967), came out of economic theory and also fixed few of its key assumptions into the marketing analysis tool. Based on the origin, the marketing mix was a resource allocation model, which rests on the assumption that the related resources which are involved in the exchange process, including the products, are homogeneous, i.e. the economic value is independent of what combinations are present. (Bennett, 2005). On the basis of this
factors which were not significant at all were awarded 5 while those which were very important were awarded 1. Within the continuum are 2 for important, 3 for indifferent and 4 for least important. Mean and standard deviation were used to evaluate the data.
Green marketing concept awareness
95% of the respondents had not heard of it while 5% had heard of green marketing conception. For the people who had heard of it they said that according to their understanding the theory was all about producing environment friendly products and its a type of marketing that puts into consideration the environment.
Table 4.6: Green marketing concept awareness
Green Product Practices
The Table 4.7 shows the findings on the level of substance of green product practices. According to the researcher those factors with a mean close to 2.0 were not important at all on while those with a mean close to 1.0 were very important. On the same note the higher the standard deviation the higher the level of disagreement or distribution among the respondents. In regard to this, conserving energy, water and materials resources in production to evade wastages and improve efficiency, storage of products in a manner that quality is maintained and product production procedure that does not damage the environment were all attached a very important level of importance with a mean of 1.1 each, product production that does not harm animals and humans and products meet specifications that are required by the law were attached an important level of importance with a mean of 1.2, product packaging that is environmental friendly and product production wastes that does not contaminate the environment were given an indifferent level of importance with a mean of 1.3. Product packaging that is reusable with a mean of 1.7 and packing materials that are biodegradable with a mean of 1.8 were accorded a least level of importance.
Table 4.7: Green Product practices
Green Pricing Practices
The researcher wanted to know the level of importance of green pricing practices. According to the researcher those factors with a mean close to 2.0 were not vital at all on while those with a mean close to 1.5 were very important. On the same note the superior the standard deviation the superior the level of disagreement or dispersion among the respondents. The product price is affordable due to the competent costs of production was attached an important level of importance with a mean of 1.6, the company appropriately invoices for the services rendered given an indifferent level of importance with a mean of 1.7. A segment of product price goes to a worthy environmental cause with a mean of 1.8 and customers are willing to pay extra for the greened product with a mean of 1.9 awarded least level of importance. The outcome is shown in the Table 4.8.
Table 4.8: Green pricing practices
Green Distributions Practices
The Table 4.9 shows the results on the level of importance that the products are distributed in relation to the environment. According to the researcher those factors with a mean close to 1.5 were not significant at all on while those with a mean close to 1.0 were very important. On the same note the higher the standard deviation the higher the level of disagreement or dispersion among the respondents. The factors that ‘stale' and expired products are recalled for discarding in an environment friendly manner with a mean of 1.1 and products while under distribution are stored in a manner that eminence is maintained with a mean of 1.2 regarded as important. Products from the company are delivered as per schedule to evade spoilage regarded indifferent with a mean of 1.3 while products from the company are delivered at right quantities at the right place at the right time was regarded as not important with a mean of 1.5.
Table 4.9: Level of importance the company attaches to green distribution practices
Green Promotion Practices
The respondent indicated the level of significance that is attached to the promotional activities in relation the environment. According to the researcher those factors with a mean close to 3.0 were not important at all on while those with a mean close to 2.0 were very important. On the same note the more the standard deviation the more the level of disagreement or dispersion among the respondents. The features of promotional material like posters, brochures and booklets are made from biodegradable and recyclable materials was according to an important level with a mean 1.4, the promotion of the products depicts environmental worry and company involvement in corporate social responsibilities measured indifferent with a mean of 1.5 and 1.6 respectively, while the company and products support environmental conservation activities with a mean of 1.8 awarded a least level of importance. The Table 4.10 shows these findings.
Table 4.10: The level of importance the company attaches to green promotion practices
Problems of manufacturing pharmaceutical firms in implementing Green Marketing
Table 4.11: The problems that are faced by the company when turning green
The Table 4.11 shows the challenges that are faced by the companies when turning green.62.5% of the results face the challenge of financial costs of altering processes, products and waste management, 62.5% lack of factual information about green marketing, 33.3% have a challenge of consumer cynicism due to misleading or doubtful green claims and 66.6% from the challenge of suppliers and purchasers. The challenges of the competitors 40%, lack of government incentives 80%, company policies regulations and culture was 40% while 50% had the challenge of consumer poor credibility of green products.
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of Findings
Majority of respondents were managers followed by sales managers then the quality control managers and product development managers. On the length of time the respondents had been working in the pharmaceutical industry majority were in the industry for 6 to 10 years, the same number for less than 5 years and for over 20 years, followed by for 11 to 15 years in the industry while the minority had been in the industry for 16 to 20 years. However on the length of time the respondent had been in the present company, most respondents had been in the present company for 6 to 10 years, followed by for 1 to 5 years, and for over 20 years, and then for less than 1 year and few for 16 to 20 years while none of them had been in the present company for 11 for 15 years.
On the ownership, many companies are locally owned, followed by overseas owned while a few were jointly owned. On the length of time the company had been in existence. Majority of the companies for over 25 years, followed by 16 to 20 years, then for 5 to 10 years while few of the companies had been in continuation for 11 to 15 years and for 21 to 25 years. All the respondents agreed to it that they do not engage in any other business a part from pharmaceutical business.
The green marketing practices; majority of the respondents said that they had not heard of it while very few said that they had heard of it. For the people who had heard of it they said that according to their understanding the perception was all about producing environment friendly products and also they said it’s a type of marketing that puts into consideration the environment.
The findings on the level of importance that the company attaches in regards to the green product practices; conserving energy, water and materials resources in invention to avoid wastages and improve competence, storage of products in a manner that quality is maintained and product production method that do not harm the environment were all attached a very vital level of importance, product production that does not harm animals and humans and products from the company meet specifications that are required by the law were attached an vital level of importance, product packaging that is environmental friendly and product production wastes do not pollute the environment were given an indifferent level of significance. Product packaging that is reusable and packing materials that are biodegradable were accorded a least level of importance.
The researcher wanted to know the level of importance that the company had attached to green pricing strategies. The product price is affordable due to the competent costs of production was attached an important level of importance, the company appropriately invoices for the services rendered was given an indifferent level of significance. A portion of product price goes to a worthy environmental cause and patrons are willing to pay extra for the greened product considered least important.
On the point of significance of green distribution practices; the factors that ‘sour’ and expired products are recycled for removal in an environment friendly attitude and products while in distribution are stored in a way that quality is upgraded according to its importance. Products from various companies are delivered as per scheme to shun spoilage regarding an unresponsive stage of importance while products from the company are delivered at appropriate quantities at the right place at the right time according to a level of least importance.
The response indicates that the importance of green promotional strategies. The feature that promotion methods like posters, pamphlets and books are developed from eco-friendly and recyclable products, the promotion of products delivers environmental apprehension and company practices of social responsibilities awarded an indifferent level of importance.
While the company and products support environmental maintenance activities that’ are given a low level of importance.
The problems that are governed by the companies when turning green; majorly face the challenge of lack of government incentives this results agree with NCCSD(2006) on literature review, then problems of suppliers and purchasers that are followed by the financial price of changing processes, products, and waste management produces same results for lack of real knowledge about green marketing, then competitors and company policies and culture and lastly few had challenge of consumer pessimism due to misguiding or doubtful green claims that could be due to lack of accurate information on green concept by consumers and the industry has not implemented green marketing to a scale to warranty negative promotion on its performance .
Most of the companies are locally owned and are present in the industry for as long as 45 years. The researcher mentions that the green marketing idea is being implemented partly by the companies in the pharmaceutical industry. It is may be due to the fact that majority do not know of the green market concept; Knowledge of the green marketing concept is less in the industry but the companies are saving energy, water and materials resources in production to evade wastages and get better efficiency, storage of products in a way that quality is maintained, product manufacturing process that does not damage the environment, animals or human beings. They have also found out with a green price that can be afforded owing to efficient costs of production. To ensure green distribution, the ‘stale' and expired products are revamped for disposal in an environment responsive manner, products which under distribution are stored in a method that value is maintained. In green promotion, promotion ideas like posters, brochures and booklets are made from biodegradable and erectable materials.
In order to achieve all these companies are faced by many challenges of lack of government incentives, financial costs of altering processes, products and waste management, be short of information on the green marketing concept and the problems from the suppliers and purchasers.
The researcher recommendations include the following; first, that there has to be an well-organized way put in place to provide the required information about the green marketing thought within the pharmaceutical industry. This will help in manufacture and marketing of environmental friendly products. Secondly, the companies should put on measures that promote and implement the green marketing concept; this will be ecologically important in terms of the green product, green pricing, green promotional activities like employ of environmental friendly posters or brochures, and green distribution. Finally the government should come up with incentives for the companies to apply the green marketing concept and help in education and training on the idea.
Limitations of the Study
The field study and survey approach is with potential problems. First, the aim that participants do not understand the motive for the study, hence less of cooperation in answering questionnaire. Some responses from the people at the time of answering questionnaires develop some self-selection partiality.
Secondly, some respondents had no information hence data which was given was not satisfactory. In fact some lack understanding and were unwilling to fill up questionnaire on excuse that such information will be used to oppose their competitors.
Thirdly, time, many of the companies was situated very far off and thus taking long to collect the questionnaires.
Recommendations for further study
This study identifies those areas that require further research. The researcher recommends that any further research should be done on the factors that hinder the practices of the green marketing idea within the pharmaceutical industry. Also further research should be carried out on awareness of green marketing by the industry people and consumers.
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