3. Established 1929 1971 1980s 1990 Since 2000s Acquired Lipton
Intl Worlds 26th largest company Restructered into 4 core
Businesses (home care, personal care, foods, & specialty
chemicals) Adopted the strategy of expansion through acquisitions
leader in sustainability, integrated into its business strategy and
culture 2003 2004 Established Unilever Health Institute, founded
Nutrition and Health Academy Analysis: Unilever history
4. Analysis: Unilever Mission & Logo represents its
diversity Mission: to meet every day needs for nutrition, hygiene
and personal care with brands that help people look good, feel good
and get more out of life.
5. Analysis: Tea Industry, Three Major Players
6. Why Sustainability in Tea Industry? Social Life of workers
(poorly managed plants, dangerous conditions, etc) Environmental
impact of tea production (Habitat biodiversity destruction, huge
release of Carbon, etc)
7. Problem Statement Unilever mission statement Unilev er's
cultur e producing 100% of its tea through sustainable resources
Drive Unilever Brands to take a stronger stance on social and
environmental issues Many problems face this Unilever's
initiative
8. Problem Statement: Traditionally produced Tea Sustainably
produced Tea Strategic Decision Scale of changes future of the
brand financial implications direction of Unilevers multinational
business strategy Competitive Forces Michiel Leijnse (Unilever's
global brand development director of Lipton Tea) faces a very
important meeting with Unilever CEO. He has to recommend strategies
on how Lipton can become: Credibility with consumers. Integrating
sustainable practices into Lipton's entire supply chain Obtain
sustainability certification Communications with Customers
9. 1 Options for Solving Problems Drive Unilever Brands to take
a stronger stance on social and environmental issues Obtaining
sustainable certification for Lipton Tea Integrating and crafting
sustainable practices into the entire supply chain Telling
customers about it 4 To become credible with consumers Marketing
experienc eheritage Message of healthy Product/ benefit to farmers
or Both Rainforest Alliance FLO UTZ Certification On-land Training
HQ training (dramatic / incremental) Resolution Options
10. Situation Analysis:5 Competitive Forces Industry Five
Competitive forces Bargaining power of buyer (High) Competitive
force of substitute (depends) Supplier bargain power (Low)
Competitive force of new entrant (Low) Competitive Force of rivalry
among sellers (High)
11. Major Driving force of change Changing societal concerns,
attitude and lifestyles that demand a more transparently sourced
and credible product. Bargaining power of buyer (High) Competitiv e
force of substitute (N/A) Competitiv e Force of rivalry among
sellers (High) Competitiv e force of new entrant (Low) Supplier
bargain power (Low) Industry Five Competitive forces The five
competitive forces, Major Driving forces Attractive opportunity to
increase their market share
12. Situation Analysis: VRIN The expected high quality input
through successful innovation of sustainable resources farming
techniquesValuable knowledge based core competence residing in
brand management capabilities, vertical integration and a powerful
certification agency executing the strategy Rare combination as a
whole cannot be easily copied, beaten, matched or imitated because
of the superiority of the know-how Inimitable Unilever sustainable
culture and not easily substituted Non- substitutable
13. Strength - Long term history of success - Intellectual
capital - Strong brand name & Co. reputation. - Vertical
integration. Weakness: - Insufficient information about Customers
& Rivals responses - High cost & huge financial
implications. Threats - Growing bargaining power of suppliers. -
Weak or no respond to new product. - Higher prices are a barrier to
sustainable consumption - Weak or no response of tea farm owners
Opportunities - Expanding to meet a broader range of customer needs
- Already existence of a substantial market for Unilever - Market
size is big with only three major players. Situation Analysis:
SWOT
14. Key Success factors for tea industry KSF Access to skilled
labor Expertise in tea industry Scale of economy known, respected
brand Quality control, know how Experienc e curve effect Overall
low costs Vertically integrated National, global distribution
capabilities 3 5
15. Recommendations: To adopt and lead the transformation of
the Lipton brand To execute this initiative strategy at the highest
standards and best practices To take full advantage of learning
curve method to be as cost- efficient as possible To try to reach
economy of scale by work at full capacity to achieve the cost-
efficiency
16. Implementation & Control Announcing the existence of
sustainable tea long before it is in the market. Story telling of
the idea behind sustainably resourcing tea Choosing the right
medium to disseminate the story Choosing a celebrity as brand
ambassador Holding brand name awareness campaigns Special
promotions & allowances for retailers To become credible with
consumers:
17. Implementation & Control Choosing a certification
agency that complies to the newest standards of sustainable farming
Choosing certification agency that is respected & accredited by
consumers The chosen agency should have the resources to handle
certifying a brand as large as Lipton in a timely manner Its seal
of certification brand should not overshadow or overpower Liptons
brand Obtaining sustainable certification for Lipton:
18. Implementation & Control Start implementation and
certifying farms estates in Kenya Design a program for on-land
farmer field training process Empower and build labor skills by
utilizing learning and experience Empower some locally-elected
farmers who succeed in the individual training sessions to lead
smallholder training through actionable activities Integrating
sustainable practices into the supply chain:
