Strategies for green product development

Back in the 1960s, a small group of consumers preferred "green" products and this was viewed in general as a fringe fad. In the last 5 decades due to several reasons, we have witnessed consumers shift from being highly skeptical about the performance of green products to the commoditization of green in many categories. Few would now question the fact that "green" is decidedly becoming the norm. Is every consumer making every purchase decision based on "green" product attributes? No - far from it. However, we observe that: there are finely defined segments of green consumers; consumer purchasing is guided by values such as how products are sourced, manufactured, packaged and disposed off; a growing number of people are willing to pay premium for "green" products; "green" inspires innovative products that can result in better consumer value, enhanced brands and a stronger company; and "green" is shaping the agendas of governments and non-governmental organizations.;This research examines green product strategies implemented in response to the changing rules of consumer markets, and in order to reduce a firm's environmental footprint while simultaneously increasing its profitability and market share. Reflecting the swiftly changing attitudes and purchasing behaviors of today's consumers, these strategies cover highlighting inherent green attributes in existing products, greening current product offerings, inventing new sustainable products, and/or acquiring brands with "green" ingrained in their corporate philosophy. Once perceived as a niche opportunity but more often as a burden that represents added cost and overhead, many companies are quickly growing their businesses nowadays through implementing these strategies that enable them extend their appeal from a once very fringe audience to now mainstream consumers. However, it is important to realize that "going green" has not fulfilled its promise for some other firms and this might be attributed to an incomplete understanding of the strategy choices. This research analyzes and proposes underlying drivers of each strategy to help companies transform challenges in the green marketplace into opportunities and re-imagine their products. The analytical and extensive numerical analysis carried out in this research underline that any company striving to succeed in the green marketplace need to comply not just with the laws of government, but also with the laws of the marketplace and the nature.