Review on Successful Entrepreneur: A Case Story on Green Marketing Application of DSI Samson International PLC.

Abstract

Recently, concerns have been expressed by manufacturers and customers about the environmental impact of products. Manufacturing organizations have directed their attention towards environmentally friendly products and aspects of green marketing. The Sri Lankan community also realizing the importance of the green marketing concept. Green marketing is the marketing of products that are presumed to be environmentally safe. Thus, green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. This paper aims to study DSI Samson international PLC,which is being operated with the Sri Lankan identity by investigating Business trends, procedures, environmental issues and appropriate solutions. Always, rubber related products have been a direct linkage and an impact on the environment. The need of an environmental friendly production and marketing process was emerged more and more to those strategic business units and subsidiaries due to the potential effects which may occur on the environment. “Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption and disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., Both marketers and consumers are becoming increasingly sensitive to the need for switch into green products and services. While the shift to "green" may appear to be expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run.Being a leading business corporation in the Sri Lankan market, the firms which are producing rubber and PVC related products and connected to DSI Company are now moving towards the profitability and success by using aspects of green marketing perspective. The company has established Sri Lankan Symbol in the mindset of foreign customers as well as Sri Lankan by entering the international market. This is a story of success which many lessons could be learnt. DSI Samson Group proudly stands tall today as the country’s premier business conglomerate and leading manufacturer of footwear and rubber related products in Sri Lanka. The company is driven by innovation, adaptation and a keen sense of responsibility, combined with customer service excellence, high business ethics and a committed workforce for over 52 years. Samson International Ltd is a sister company of the renowned DSI Samson Group. It is one of a major Rubber Products manufacturers and exporters in Sri Lanka, Samson International Ltd., strives to provide products of the highest quality. With almost 25 years’ experience in the manufacturing industry, which have established an experienced and remarkably efficient management team consisting of over 300 employees. There were so many obstacles at the start of this successful journey. In 1962 Mr. D.S. Rajapakshe– Founder, Chairman along with his children launched D. Samson & Sons business outlet in Fort (Colombo), to sell local and imported footwear started as a small outlet. In 1988.10.14 the Samson International LTD was started as a sub company of the DSI Corporation. The company faced a challenge to find the solutions which are concerned about the environment aligned with production and marketing processes, Because of the company engaging Rubber related products, which may have the considerable impact towards the environment. The success of any organization depends on consideration and the satisfaction of the customer community. So, Samson International Company, which is offering vast variety of product ranges to both international and local markets, has been studied on consumer perception and consumer behavior under the context of green marketing. The products those are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products are necessary for conservation of natural resources and sustainable development. Research and development department and market research team investigated and studies about following theoretical aspects and models. They were realized the importance of the green marketing after having a thorough understanding about the different theories.Basically, the company has been moving to green designing concept. At the stage of conceptualization, company considered about sustainable material and environmental friendly production processes. Processes were planned with the consideration of waste recycling procedures. Next they are using “green positioning” to establish an attractive environment friendly brand image in the customer’s mind about the product which they are offering to the market. At the phase of “green logistics” the company concentrates another few critical factors. Value chain has been considered about the environment friendly packaging other than production and distribution process elements. When it comes to Green disposal phrase, company has been taken into consideration in various stages of product life cycle (from production to disposal), to dispose the wastage without any harm to the environment or human health. Now the organization is being implemented 3R method (Reduce – Reuse –Recycle) which is identified as a very practical and useful model Company adopt the 3R method of Reduce- Reuse- Recycle since 2005. This method covers in waste rubber and water management. Waste rubber is being recycled. Energy consumption has been minimized by eliminating energy waste, installing capacity banks, using transparent roof sheets and energy saving bulbs. Company monitor electricity consumption on a daily basis with sub-meters and energy audits are carried out from time to time. The Samson PLC has been adopted the environmentally friendly production method. The company uses electricity, paper and other power sources conserving approach and reinvest the saved resources for the benefit of the production value chain. One of the mainly concerned facts of the organization is the measuring of the timely impacts on the environment. Through these institutional protocols, inefficiencies are being corrected. To use this advantageous green marketing technique, The Samson International PLC uses the contribution of everybody in the group. The company often set up the “Green discussions” on the methods in production and marketing tactics with the employees and its main focus is based on the environment friendliness. Through this method the employees can suggest ideas to protect the environment. This boosts morale and generates goodwill as every person in DSI can contribute to the organizational environmental goals.Environmentally friendly measures are being taken in the supply chain of the factory as well. The purchasing orders are done to obtain raw materials in a well-planned manner. As a result the frequency of deliveries can be reduced also the packing materials supplied by the suppliers are re-used. Another important rule of green marketing is focusing on customer benefits. Always the company considering about the primary reason why do consumers buy certain products in the first place, and what are the reasons to motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also, if the green products are priced very high, then again it will lose its market acceptability. Samson international PLC has been provided careful attention regarding Green marketing myopia as well. In addition to the above information, Samson PLC has been following a unique green marketing and forest conservation approach. It is named as FSC approach. Under the FSC approach DSI group is following the below mentioned principles. 1). Compliance with all applicable laws and international treaties, 2). Demonstrated and uncontested, clearly defined, long–term land tenure and use rights, 3). Recognition and respect of indigenous people’s rights, 4). Maintenance or enhancement of long-term social and economic well-being of forest workers and local communities and respect of worker’s rights in compliance with International Labor Organization (ILO) conventions, 5). Equitable use and sharing of benefits derived from the forest, 6). Reduction of environmental impact of logging activities and maintenance of the ecological functions and integrity of the forest, 7). Appropriate and continuously updated management plan, 8). Appropriate monitoring and assessment activities to assess the condition of the forest, management activities and their social and environmental impacts, 9). Maintenance of High Conservation Value Forests (HCVFs) defined as forests containing environmental and social values that are considered to be of outstanding significance or critical importance, 10). In addition to compliance with all of the above, plantations must contribute to reduce the pressures on and promote the restoration and conservation of natural forests.The performance in the rubber segment has been improving day by day. The Company will further extend the rubber-related product range with an environmentally friendly manufacturing and green marketing aspects. The biggest challenge to the Company is to turn around the PVC segment in the next few years seven though there was remarkable progress. There is a radical change in consumer preferences and lifestyles. There has been a change in consumer attitudes towards a green lifestyle. The company is actively trying to decrease the negative impact on the environment. Through their unique initiatives the Samson International PLC, which is a subsidiary of the DSI group have been resulted in a competitive advantage for the organization. However, Due to the shift from traditional marketing to green marketing, management and decision makers are facing many contemporary challenges and have to investigate new strategies on Green marketing approach.