"Green marketing" has not yet proved its value as a strong marketing strategy. In some cases, offering a "green" product or alternative has worked to increase sales and/or profits, but for many others, "green marketing" hasn't lived up to its hype. There are many "green" shampoo products on the market including entries from L'Oreal, Burt's Bee's, Aveeno, Suave and Dove. Now, Procter & Gamble (P&G) is thinking about taking its Herbal Essence and Pantene shampoo lines "green." After reading this week's article "Choosing the Right Green Marketing Strategy" provide an informed opinion about:

Can established competitors be beaten at their own game? (Should P&G invest in "green" shampoo products to compete in the "green" market?)

Why should P&G compete in the "green" shampoo category? Why shouldn't they compete? (Give an informed argument for either decision.)

Which green strategy makes the most sense for P&G? Which "green" consumer segment(s) would that strategy aim to serve?

Explanation:

Green marketing is an emerging concept that proposes marketing of products and services based on environmental awareness. Organizations that are involved in green marketing look at the entire process of supply chain and practice the principles of green marketing i.e. environmental friendly production, packaging, distribution, etc.

The green marketing concept is critical for Procter & Gamble, because they have been practicing it for many years. In order to strengthen their position in the market they need to align with the green concept. There are two vital reasons for them to pursue green business practices.

1. P&G is a recognized and verified as sustainability leader in in body care industry by the consumers, suppliers, and other stakeholders.

2. For many years, P&G has been pursuing programs to address environmental issues and trying to contribute to societal progress.

By incorporating sustainability into its strategy the company has permanently changed its image and it is their responsibility now to carry out the initiated programs. In order to strengthen their position, the green strategy must include product development, product life cycles, manufacturing policies, and supply chain management. Specifically the strategy of the company should focuses on the following aspects.

Products and their ingredients: It must develop policies to use environmentally sustainable ingredients in developing products and in manufacturing them

Sourcing process: The Company need to develop policies that align with environmental sustainability in selecting suppliers and monitoring their supply process

Production: The policies to govern the production practices i.e. use of environmentally sustainable manufacturing practices, use of green energy and ingredients, must be in place

Waste management: The stages throughout the supply chain are inclined create wastage. The company must have a plan to reduce waste and dispose the waste materials according to sustainable principles.

Apart from strong business strategy, the P&G must have organizational systems, climate, and orientation of internal & external stakeholders aligned to the sustainable practices.

With its product category of beauty, home care, etc. the P&G must target customers who are concerned about the environmental sustainability and who value green products.

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