Federal State Educational Budgetary Institution of Higher Education «Financial University under the Government of the Russian Federation» International Finance Falculty Discipline «Marketing » ESSAY o.
Federal State Educational Budgetary Institution of Higher Education «Financial University under the Government of the Russian Federation» International Finance Falculty Discipline: «Marketing » ESSAY on the topic: « Green Marketing in Vietnam » Student: group №_IFF 19-2_ _Vu Huong Giang Introduction Green marketing has gained increasing attention in Vietnam in recent years, as businesses and consumers have become more aware of the need to promote sustainability and reduce environmental impact However, the adoption of green marketing practices in Vietnam is still relatively low, and businesses face several challenges in implementing sustainable strategies This article examines the opportunities and challenges for green marketing in Vietnam, and explores strategies that businesses can use to promote sustainability and differentiate themselves from competitors Concept of green marketing in Vietnam Ottoman in his study in 1993 said that green marketing should focus on developing products that can satisfy all the needs of consumers, including quality, reasonable price and ability used with environmental compatibility, i.e minimizing negative impact on the natural environment In the same opinion, in a study in 1994, Polonsky said that green marketing is a combination of a series of activities including product changes, production process changes, packaging changes, as well as advertising changes to create and promote any exchange to satisfy the needs and wants of consumers on the basis of minimizing negative impacts on the environment Meanwhile, in 1995, Peattie argued that green marketing is a holistic governance process, responsible for defined tasks such as anticipating and meeting consumer and societal needs in a sustainable way More specifically, Kotler with research in 2011 considers Green Marketing as a commitment of a business through the provision of safe and environmentally friendly products and services by using packaging that is environmentally friendly recyclable and biodegradable, adopt better pollution prevention methods and use energy more efficiently Overall, green marketing is an important approach for promoting sustainable products and practices, and can benefit both businesses and consumers By adopting a green marketing strategy, businesses can demonstrate their commitment to sustainability and differentiate themselves from competitors, while consumers can make more informed choices about the products they purchase and their impact on the environment The concept of green marketing is based on the principles of sustainable development, which seeks to promote economic growth while minimizing the impact of human activity on the environment In Vietnam, green marketing has become more important as consumers have become more conscious of environmental issues and are looking for ways to reduce their impact on the planet The current situations of green marketing in Vietnam In fact, in Vietnam, although green marketing has been mentioned more and more in recent years, there is no detailed statistics on these marketing activities in enterprises Therefore, the study focuses on analyzing some outstanding green marketing campaigns in Vietnam to clarify the development of this type of marketing Researching on green marketing strategies in Vietnam, it can be seen that Toyota Vietnam has applied this type of marketing for a long time It can be seen that green marketing programs are implemented by Toyota Vietnam in a synchronous manner, from design, product creation, to production, distribution and communication The company has greened itself comprehensively: from products with environmentally friendly car production, TPS (The Toyota Production System - Toyota Production System) saves energy, reduces waste; to the pricing strategy when the benefits of the environment are closely linked to the personal interests of consumers: vehicles that use less fuel help save resources and reduce CO2 also help customers save costs during vehicle operation In addition, as of March 2019, 44/55 authorized agents/branches and service stations have successfully applied the Environmental Management system and been granted ISO 14001 certification associated with Go Green program and many typical activities of Go Green Club Besides Toyota, Ajinomoto is also a prominent name in green marketing strategy The company aims to achieve zero emissions, use energy efficiently and promote business based on biological cycles Meanwhile, cosmetics brand Innisfree conveys its environmental message by collaborating with celebrities and making the most of social media The brand calls for the smallest changes to be made to reduce the amount of plastic waste globally With the participation of KOLs, the above message spread strongly on social networks at the end of 2018 Looking at the current status of green marketing activities in Vietnam, it can be seen that this form of marketing is growing strongly Campaigns for green living, not using plastic waste appearing more and more in the mass media have shown consumers' interest in environmental protection Businesses are also more interested in green Marketing applications If a few years ago, when it comes to businesses applying green marketing in Vietnam, only a few prominent names such as Toyota or Ajinomoto were mentioned, now, there are a series of brands that have emerged with the slogan green and received a great response from consumers However, green marketing is not always an effective bridge between businesses and the community Some businesses have used the wrong green marketing strategy, negatively affecting image and reputation Highlands is a very successful coffee and beverage brand chain in Vietnam with more than 180 stores across the country The utensils at Highlands are all made from plastic with the consumption of more than 100,000 plastic cups, straws, and spoons per day at a store In May 2019, Highlands joined the "less plastic" campaign, encouraging customers to bring their own bottles for free upsize However, this campaign was criticized because the number of customers carrying individual bottles was only a minority, while the majority continued to use plastic Besides, Phuc Long, a famous tea brand, was also called for a boycott by many consumers when a Phuc Long store asked customers to sort waste according to different cells, but shared the same bag below and this brand still uses plastic lids and plastic straws with the same consumption as Highlands It can be seen that green products are good for the environment and consumers, but the way you treat it, the way you bring it to consumers, will greatly influence the perception of customers and will affect to product success Opportunities and Challenges in applying green marketing in Vietnam Opportunities - Vietnam's economy is growing, leading to an improvement in people's consumption Moreover, in the process of restructuring the economy and transforming the growth model from breadth to depth, productivity factors and clean technology that has been prioritized by the Party and Government for implementation is an opportunity favorable for Vietnamese businesses to implement green marketing strategies - Consumer consciousness has increased thanks to massive green campaigns in the mass media, from which the requirements for green products, products that meet quality safety standards and are friendly to the environment, have increased The environment is an essential requirement of the people This is the potential market of Green Marketing to help businesses exploit - Thanks to the heightened sense of community, green marketing campaigns receive the support of consumers, pay more attention, and create motivation for businesses to develop - The self-consciousness of businesses about green marketing is increasing because when the issue of environmental protection and clean food is widely promoted and mentioned everywhere, building a beautiful image in In the eyes of consumers, attracting domestic and international investment is also a way for businesses to develop sustainably and achieve long-term growth goals - Green marketing strategy is currently a global trend, green products, ecofriendly products, and environmentally friendly products will attract many potential customers Many countries around the world have been tending to implement programs to use green products, committing to implementing this program has gradually become a trend of developed and developing countries The fact also shows that many products and many major export markets of Vietnam have requirements on environmental standards for export products The "eco-label" criterion has also been applied by the EU to textile products - Green marketing activities in businesses receive a lot of support from the authorities According to Decree 04/09/2014/ND-CP issued by the Government, enterprises with projects in the implementation of environmental protection activities will get preferential treatment and support in infrastructure, land, capital, and especially tax incentives In addition, the State also supports the establishment of the Vietnam Clean Production Center to advise businesses on clean production solutions or on technology and finance Challenges - First, the biggest challenge for marketers is how to combine the need for "environmental protection" with other basic needs of consumers such as cost-effectiveness, safety, and cost-effectiveness usability, performance, icon value and comfort Vietnamese businesses need to have the right strategy to both ensure the needs of consumers and ensure the purpose of environmental protection - Second, the implementation of the Green Marketing strategy will increase the investment cost and the product cost Green marketing is a combination of a series of activities, including product adjustment, production, packaging to distribution, advertising, requiring businesses to spend a large amount of investment, leading to an increase in the cost of finished products As a result, their products will be less competitive in the market - Third, there has not been a high degree of close coordination between businesses as well as the authorities In Vietnam, the legal system regulating environmental issues is incomplete, the standards set are taken according to international standards, not practical in Vietnam Moreover, we have not been able to combine the power of non-profit organizations to create a trend that strongly hits the consumer's psychology, or if so, that trend has not operated continuously and necessarily not yet there are many results - Fourth, Vietnamese people love to use cheap products, not appreciate the quality of products On the other hand, they are suspicious of advertisements about "green" products because there are too many businesses that deceive, not business transparently Therefore, this is a big difficulty for Vietnamese businesses when deploying strategies green marketing strategy - Fifth, Vietnamese enterprises today are mainly small and medium enterprises, with limited capital, while implementing the green marketing process requires the use of expensive and modern science and technology In addition, the cost of materials, marketing and advertising products is not small at all Since then, the application of green marketing is still quite difficult for Vietnamese businesses Conclusion: Green marketing has the potential to promote sustainability and economic growth in Vietnam, but businesses must overcome several challenges in order to implement effective strategies By adopting sustainable practices, businesses can differentiate themselves from competitors, build customer loyalty, and enhance their reputation as socially responsible companies With the support of government policies and the growing awareness of sustainability issues among consumers, the prospects for green marketing in Vietnam are promising References: Ottman, J.A (1993) Green Marketing: Challenges and Opportunities NTC Business Books, Chicago Polonsky Michael Jay (1994), An Introduction To Green Marketing, Electronic Green Journal Peattie, K (1995) Environmental Marketing Management Pitman, London Kotler, P 2011 Reinventing marketing to manage the environmental imperative The Journal of Marketing Hồ Thanh Thủy (2018), Tác động xu hướng tiêu dùng xanh đến doanh nghiệp Việt Nam, Văn phòng Sản xuất Tiêu dùng bền vững Hoàng Thị Bảo Thoa (2016), Xu hướng tiêu dùng xanh giới hàm ý Việt Nam, Tạp chí Khoa học ĐHQGHN: Kinh tế Kinh doanh Nguyễn Gia Thọ (2019), Chính sách tiêu dùng xanh Việt Nam, Viện Nghiên cứu Quản lý Kinh tế Trung ương Nguyễn Hoàng Tiến cộng (2020), Chiến lược phát triển Marketing xanh Việt Nam thời kỳ hậu COVID-19, Đại học Thủ Dầu Một Nguyễn Hoàng Tuệ Quang (2019), Các xu hướng nghiên cứu Marketing xanh - Lý thuyết vận dụng thực tiễn, Tạp chí Khoa học - Đại học Huế: Khoa học Xã hội Nhân văn 10.Nguyễn Thu Hà cộng (2019), Một số giải pháp nhằm tăng cường Marketing xanh cho doanh nghiệp Việt Nam, Đại học Ngoại thương ... focuses on analyzing some outstanding green marketing campaigns in Vietnam to clarify the development of this type of marketing Researching on green marketing strategies in Vietnam, it can be... compatibility, i.e minimizing negative impact on the natural environment In the same opinion, in a study in 199 4, Polonsky said that green marketing is a combination of a series of activities including product... green marketing in Vietnam In fact, in Vietnam, although green marketing has been mentioned more and more in recent years, there is no detailed statistics on these marketing activities in enterprises