Green Marketing Strategy in KSA: Lubricant Sector Growth Case Study

This case study investigates the impact of green marketing strategies on organizational growth and development within the lubricant sector in the Kingdom of Saudi Arabia (KSA). It explores how green marketing can maximize profitability, incorporating feedback from industry experts and end-users regarding green products. The study reviews the effectiveness of corporate social responsibility (CSR) policies in enhancing organizational performance, considering environmental challenges and opportunities. It examines the use of green marketing to reduce environmental impact, promote sustainability, and address concerns related to pollution and climate change within the Saudi Arabian context. The research delves into the application of green marketing principles, focusing on sustainable development, environmental accountability, and consumer behavior towards green consumerism in the oil lubricant industry.

“The Green Marketing Strategy in Kingdom of Saudi
Arabia: Implications to Organizational Growth in
Selected Lubricant Sector”
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Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................6
RESEARCH METHODOLOGY..................................................................................................14
DATA INTERPRETATION.........................................................................................................18
CONCLUSION..............................................................................................................................37
RECOMMEDNDATION..............................................................................................................39
REFERENCES..............................................................................................................................41
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Title: To investigate the green marketing strategy impact on the organizational growth and
development. A case study on oil lubricant sector.
INTRODUCTION
Green marketing is based on the phenomenon which mainly developed in the modern
marketplace. it enabling the existing package item which are already comply with different
guidelines. The concept of green marketing connects with the business opportunity for
improving quality of green product. Many countries around the globe that have recently pursued
the sustainability. In terms of green marketing, Government and public are demanding because
of sustainability in the global world. the environment disaster caused by man-made activities and
pollution which directly impact on the ecological system (Ahmed, Sultana and Khan, 2018).
Currently, it is important subject to save the nature by consideration of specific goals and
objective. The lubricant sector has been rapidly increasing in the international market while
produce waste materials, generate emission of gases. At that time, it has required for adopting the
sustainability which require to create environment friendly. It is applying the green activities
which are implemented in the organization. It must ensure that all products, processes and
manufacturing based on the principle of environment safety (Sellitto and de Almeida, 2019). It
also implementing the corporate social responsibilities theory, highlights the relationship
between stakeholder and corporate while including the safety parameters related environment.
There are numerous amounts of natural resources are being consumed on regular basis.
Government is responsible for controlling and managing the consumption of innovative
alternative options. It is potentially increase to the sustainable development and reduce the
environmental pollution. The increasingly pollution rate have put the significant pressure on the
government. Therefore, international efforts are working to promote for implementing the
concept of Green marketing in lubricant industry (Krane, 2018). It helps for reduce emission of
carbon dioxide, as a result from operational activities in the organization in smoothly. Many
countries aware about the pollution while set up tough environment law because of climate
change. Thus, The oil lubricant company give attention towards green strategy for using
sustainable products which produce limited emissions.
Saudi Arabia is the largest producer as well as exporter in lubricant item, which considered as
the largest consumer of oil, liquids in middle east. That’s why, it must face distinctive problem
with greenhouse emissions because market offer cheap fuel and also investing in the renewable
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energy resources. Thus, it requires for reducing the environmental footprint and enhancing
sustainability. Once set up the Green marketing strategy that will produce the half of its power
from the other renewable source by 2020. Through Green marketing strategy, it can be achieved
the specific goals and objectives (Ahmed, Sultana and Khan, 2018). Saudi Arabian government
will use innovative concept for reducing the rate of pollution. It is an essential for Saudi Arabia
to move towards the energy consumption and maintain sustainability in proper manner.
The primary aim of “Green Marketing strategies” is to provide the awareness among the
organizations so that it will increase sustainability and reduce the price of operation, maintain
wealth, reduce pollution in global environment (Norton, Liu and Vlachos, 2019). The step of
identifying the barriers related environment due to lubricant industry which continuously
produce the waste and emission. The barriers are different from one nation to another. Thus,
economic, political, culture and economic factor can influence the severity and quantity of
challenges.
The research project is mainly focused on the oil and gas industry. The research will be done
on the oil lubricant industry and become market leader. The organization was partner with Saudi
Arabian government-owned oil firm, which enterprise a refining or marketing joint venture. It
provides various type of products such as oils, fuels car services and refining the petroleum
items. Currently, Lubricant sector become downstream and midstream. In particularly, Saudi
Arabia has a large number of oil-based firms which will increase their production of oil and
supply in other countries. In this way, it will be generating the high pollution which directly
impact on environment (Krane, 2018). The report will discuss about the implication for applying
Corporate social responsibilities concept in the organization that produced the automotive
lubricant item. The research case study is selected the country kingdom of Saudi Arabia.
Many organizations related lubricant firm that will implement the green marketing strategies
that help to improve the overall performance within global marketplace. it will be introducing the
revolutionary new green technology that can be applied as first time in market of Saudi. The
report will describe the measurement which evaluates for identifying effects of launching eco-
friendly, green items for business to increase the productivity and profitability. in order to
consider the both social as well as environment factors (Ahmed, Sultana and Khan, 2018). The
report will outline the feedback of lubricant industry experts and other end user in Saudi market
where how they can use the different green item for business expansion. Furthermore, it will
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review about the effectiveness of applying social responsibility policies, which improve overall
business performance.
Significance
The importance of research project is to determine concept of “Green marketing strategy”
within lubricant oil industry. It is beneficial for researcher to concern about the environmental
challenges and opportunities. The green products that are increasing demand due to generate less
waste, use raw materials and also save energy (Wickramasinghe, Sasahara and Perera, 2020). In
another way, it also increased competitive advantage for lubricant organizations where they can
put their environmental innovation, reduce level of pollution. In this way, it has increased market
share where customer believe on the brand and aware about environment degradation. Recently,
it is the most common threat in market so as require to adopt green marketing strategy for
handling environment pollution. The Green item offers the customer with advantage, benefits of
healthier and also fulfilled their requirements.
The benefits related environmental are consider as an intangible and become indirect to
customer. Many people cannot see the emission in Motor vehicles which being spared and also
use energy saving items. The research study is providing the brief idea about green marketing
concept so that researcher implement the innovation idea to measure or quantify challenges
(Rehman, Yadav and Tomar, 2019). The Green marketing success may depend on the
stakeholders those participate task within team or group for increasing awareness among people.
No doubt, the green concept reduces cost of item while recycling item again and again.
Aim: To investigate the Green marketing strategy impact on the organizational growth and
development. A case study on oil lubricant sector.
Objective:
 To outline the use of green marketing strategies in the field of lubricant in KSA that can
maximise the profitability of company.
 To measure the feedback of lubricants industry experts and end-user in Saudi market
toward the green products use.
 To comprehensively review the effectiveness of applying corporate social responsibility
policies to improve the organisation performance.
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Research Questions:
 What are used of green marketing strategies in the field of lubricant in KSA that can
maximise the profitability of company?
 How can measure the feedback of lubricants industry experts and end-user in Saudi
market toward the green products use?
 How review the effectiveness of applying corporate social responsibility policies to
improve the organisation performance?
LITERATURE REVIEW
Theme:1 use of green marketing strategies in the field of lubricant in KSA that can maximise the
profitability of company.
According to Ali and et.al. (2019) The Green marketing strategy is based on the
philosophy that useful for organized and integrated marketing through that aim to create the
positive impact on the consumer preference. In order to motivate them towards the sustainable
products that are not harmful for environment. The consumption habits in line and work to
provide the better integrated marketing mix on the basis of creativity which may increase the
preservation of natural environment. The application of green marketing concept is based on
modifying the usage of natural resources and other type of raw materials. It is the most suitable
for environment requirement and production activities modification to match with specific
objective of green marketing. It provides the better opportunities for oil industry in terms of
environmental accountability and evaluation. While green marketing is considered the expected
responsibilities of organizations, so that it easily understands the behavior of consumer, group of
stakeholder and government towards green consumerism. Through strategy, lubricant industry
concern about the sustainable development to handle the intense pressure because of pollution,
climate change.
Alamri (2019) said that green marketing is the best approach that mainly focused on the
environmental safety and performing different enterprises activities. it consists of production,
modification in packaging and other type of green advertisement. In order to engage with the
client practices and actions in regards of environment friendly. The oil-based lubricant industry
over has attracted with respect to effects of business operations in the environment, especially
when the poor response of lubricant industry and increase the environment issues. Therefore, it
has raised the concern towards the commitment in sustainable development. In Saudi Arabia,
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many oil companies are under pressure and address their environment footprint which will try to
mitigate sustainable development. The economic development within oil industry is important
for managing and controlling overall business opportunities.
Jacobson (2019) argue that green marketing is a subset of promotion, which may refer as
environmental condition that will implement positive activities in business for reducing
environmental issues and problems. This type of marketing emphasis with ethics as per
enterprise fundamentals. It is useful for oily industry to expand their branches and fields through
sustainable development. the strategy consists of wide range of business operations which
intends to satisfy client requirement and also reduce the negative affects on natural environment.
Designing and implementing the green marketing strategy is not easy task for oil industry
because it requires the proper available resources, goals and objectives. In order to increase the
business profitability in marketplace. The organizations should must have a clear vision so that
easily margining the green activities. Although petroleum organizations in Saudi Arabia that
have become interested toward other energy source, crude oil which remain the most important
role play in the lubricant industry. Nowadays, there are several divergent interests exists between
the oil exploration, which may be growing the pressure and also reduce the environment impact
causes though production of energy as well as consumption.
As per Jones and Jain. (2019) The use of green marketing will increase the opportunities
in Saudi Arabia where client must prefer the shell item and aware about the natural environment.
In this way, Oil lubricant industry has chanced their business activities while use green
marketing strategies. Many organizations realize that it has raised the opportunities in terms of
competitive advantage. As in term of marketing, Government want to protect client and secure
their life. Therefore, it also made environmental legislation which intended to protect or secure
consumer in different manner. To ensure that lubricant industry must control the hazardous waste
and production of motor oil on limited manner. Otherwise, it will increase the environmental
issues on regular basis. Considering the lubricants and oil offer scope due to green marketing in
terms of improvement, switching to more energy efficient option is highly beneficial for
organizations who are focused on the environmental condition. When various energy efficient
technologies are combined with the operating practices which lead to increase high productivity
of business in global marketplace. the sustainability concept for business that can be determined
as a strong collaboration between goals of gaining more profitability through Green marketing
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strategies. Since, maximise the profitability which is the target for lubricant enterprise while
implementing the Green marketing strategy to bring advantage, benefits. In this way, Oil
companies make their business more sustainable and invest in the renewable energy sources. It is
mainly generated from the other natural resources such as wind, tides and sunlight. In additional,
organizations investment in the renewable source would not completely prove as profitable but it
also increasing the demand in Saudi Arabia market. The concept of environmental responsibility
that should be considered with legal obligation and economic condition for oil enterprise.
Theme:2 Review the effectiveness of applying corporate social responsibility policies to improve
the organisation performance.
According to Zhang, Oo and Lim (2019) corporate social responsibility has become key
issues for today’s organizations. It mainly refers to continue the commitment of enterprise
towards ethical and moral value in terms of economic development while continuously
improving overall quality of organization. The traditional enterprise approaches are primarily
emphasizing within the economic aspects of organization’s activities. It has found that increases
the social as well as environmental issues. When applying corporate social responsibility within
lubricant industry, which will bring more advantages and also showing the goodwill to improve
reputation of business in global marketplace. in this way, it is increasing the employee
engagement and customer satisfaction. In additional, it also expanding the business through
consumer baseline where applying the organizational policies related to the environmental and
social issues. In Saudi Arabia market, many organizations are emphasized with the structure of
corporate strategic marketing on the basis of different factors such as corporate resources,
corporate culture and publics.
Trivellas and et.al. (2019) The benefits of Corporate social responsibility are to create
engagement program and also including the profitability while enhancing the reputation, brand
recognition, boosting employee engagement and risk management. CSR policies always
encouraging the staff member for developing social as well as sustainable change within
organization. It is totally based on the building the functioning corporation that possess a strong
value and help to manage risks and become more competitive brand. In this way, lubricant
industry in the market of Saudi which continuously succeed in future. () Argue that environment
disaster has become major issues that would be exposed by different marketing. Nowadays, it is
possible to aware about the corporate scale due to lack of trust. So, as it has chances for
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increasing the social responsibility issues within oil-based industry. In order to make an effective
CSR policy which help for controlling lack of trust which may increase pressure. In particular,
environment issues have been pushed into lime light where corporation is now looking for
change sustainable. There are two important elements which play important role in corporate
social responsibilities such as accountability and transparency.
As per Zhu, Zou and Zhang. (2019) The corporate social responsibility is simply the best
way to hide the mask of responsibility and obligation. It is based on the situation where many
organizations integrate with environmental concern in their daily business enterprise and their
significant interaction with other stakeholders. It is not only making money for multiple
shareholders but it also improving the overall condition of business in global market. In most of
cases, decisions should be made on behalf of financial reasons and also consider the
environmental impact, investment, enterprise ethics and human right. In lubricant industry, CSR
is all about the enterprise that being accountable for activities and practices that affects on the
overall social community and environment.
As per Frynas and Yamahaki. (2019) An effective CSR policy are stronger for increasing
profit rate whereas they invest in the growth of business development and sustainable practices.
It is key success of organization to improve the employee working capabilities where business
driving CSR initiatives while building a strong communication between staff members. In order
to progress of them to every employee and responsible for maintaining sustainable development.
on the other hand, Corporate social responsibility policies will help for transform entire business
into growth and development. In lubricant sector, A strong CSR initiative and become key
component to improve the overall business performance in terms of sustainable development. It
helps for maintaining position in terms of ethical and moral values. These types of CSR server to
create the sustain trust among organization and consumer. Thus, it easily attracting the new
business partner and reinforce existing relation while increasing market share.
Newman, Rand and Trifkovic (2020) opinion in regards of CSR, it become far from the
solution to different social problem due to less resources but in most of cases CSR consists of
important guideline to follow as future strategies. The lubricant organizations are preventing
their limited resource from coping with various social obligation where government has more
responsibilities to handle the situation. CSR capture the sustainable development and attention
towards the companies those mainly focused on the environment issues. In this way, lubricant
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sector contribution towards sustainable development to adopt stakeholder theory and improve the
business management. As per Walker, Zhang and Ni (2019) it can be identified that stakeholder
approaches may represent inconsistencies through idea of sustainable because it doesn’t
completely imply that all stakeholder. It could be beneficial from corporate social policies which
are putting more efforts to treat equally. For survival of company where they can adopt the
stakeholder theory which help for fulfilling the objective. It ensures that company will create
more value through stakeholders.
Srivastava and Shree (2019) The organizations are adopting CSR polices and governance
as control entire system of integration in terms of social as well as environmental. In order to
increase business performance. Management trends are impacting on the business strategies,
which mainly adopt themselves for changing the environments. it may include the enterprise
models and stakeholder pressure for corporate social responsibilities compliance. Therefore,
many organizations can take advantage through CSR while achieving the significant goals and
objective of business. Recently, stakeholder engaged with CSR policies and involves different
process such as identifying environmental issues and stakeholder management. In this way, it
can be determined that CSR is important concept which always helping for corporate identity,
communication and also building an effective relationship with another. By creating the long-
term growth, it always initiatives towards CSR policies which will promote the lubricant sector
favorably targeting to the existing consumer. In this way, it will be creating the workforce and
generate more profit while repeat enterprise to enhance productivity as well as profitability in
global marketplace.
Crane, Matten and Spence (2019) argue that Corporate social responsibility is considered
as important part of strategic planning for lubricant industry that strive to be successful and also
want to improve the business reputation. Especially, those companies want to be explored their
business in competitive environment. CSR can be integrated with business policies within
organization and supplement the significant goals. Thus, it become major part of business
capitals that will monitor targets and incentives. The policies are recognized that CSR is not
compliance and commitment to support which improve the lives of people under circumstances
within organization. On the other hand, it also promoting the equality to implement an innovative
idea which help for improving overall business capabilities and abilities.
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Theme: 3 Measurement the feedback of lubricants industry experts and end-user in Saudi market
towards the green products use.
According to Wooders, Zinecker and Steenblik (2019) The lubricant industry experts
and end-user are externally validated through analyzing the sales data of manufactures. In order
to arrive at overall market size while using different sources such as annual reports, website,
credible paid database. It can be identified that industry experts and end-users focused towards
the use of green product within lubricant industry. Hydrocarbon plays important role in the
economic industry by fueling the globalization and industrialization. Nowadays, oil industry is
key life line of global economy in Saudi Arabia, which contributing to 57% share in energy
consumption. Many industry experts promote to use green product while maintain sustainability
in global marketplace. It should make global development policies and procedures for
sustainability while offer explicit support to encourage sustainable development by industry
experts. In order to support for improving the environmental condition. By using environmental
policies, it has been suggested by experts to measure the emission from extraction as well as
transformation. It is major energy consumer which met by use of fossil fuels. As per analysis, it
has found that 6.9% of total energy produced by oil industry.
As per Islam and Huda (2020) Opinion when it comes to improve energy efficiency
whereas oil industry has achieved the success over past decade. The international energy agency
has fallen the production of oil and gas in Saudi market due to the lack of processing efficiency.
Even it increases the efficiency while intensive require large amount of energy extraction,
transportation and processing. In this way, the opinion of expert and end-user related oil
production business has completely transformed towards sustainability. Many lubricant
industries in Saudi Arabia was used the renewable energy for improve sustainability while use
green products to reduce emission of carbon dioxide. Sources and suppliers of renewable energy
has continuously growing rapidly. The production of global biofuel production increased by 14%
and constituting one of largest source of liquid production in the global world. It plays important
role within organization to produce low carbon fuels while contributing significantly to the
sustainable development.
As per Nunes, Causer and Ciolkosz (2020) Industry experts and end user give their feedback
towards the sustainable development and taking actions to advance three objectives. The rapid
change within lubricant industry will provide the new opportunities to drive sustainable
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enterprise values in proper manner. The business can transform their operation and function
through increased energy efficiency and use of sustainable product. sometimes, legal advisor,
industry experts consider as an alternative method for increasing the profitability and
productivity in global marketplace. On the other hand, measuring the opinion of different experts
within industry in regards of environmental performance. This type of phenomenon is no longer
in today’s world while creation by every business. Sustainable development is primary aim of
industry as per identified through feedback from expert side whereas it helps to reduce emission
of gases and less harmful for environmental condition. As per analysis, it has found that industry
experts and end-users are responsible for their actions and demand toward accountability. It has
been shifted towards energy efficiency for maintaining environmental condition in Saudi Arabia.
The lubricant industry has recognized the technology by running energy efficiency products and
also beneficial for improving economy condition. Another way, it also emerging the oil industry
to reduce the power consumption while increasing the machine output in term of energy
efficiency.
Vogl, Weiss and Helu (2019) It can be identified that lubricant industry expert will make
smart energy strategy which help for carbon emission oil industry. The strategy is the most
suitable for organizations to handle the overall business operations and functions. The expert
knows about the energy improvement while increasing the opportunities and also reduce the rate
of carbon emissions. As much as right technologies are needed to implement in lubricant
industry and move towards the energy efficient whether small or big. In this way, it become
easier to measure the energy efficient such as selecting an appropriate right lubrication items that
directly transform into business operations. they can drive the sustainability and improve the
industrial operations otherwise it effects on the bottom line. Thus, it allows for organization to
maintain the safety and security in terms of condition. In order to improve the work environment
and handle the business challenges in paper manner. Through feedback from industry experts
that needed to implement energy strategy for maintaining sustainable business. In Saudi Arabia,
Oil industry is mainly used the clean technology for purpose of oil extraction that starts looking
at different ways. Therefore, lubricant industry has produced the limited greenhouse gases and
control the high temperature. It has created the closed loop system whereas being used in the
extraction process.
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