Approaches to Cinema - German Expressionism Essay

Approaches to Cinema - German Expressionism - Essay Example The essay "Approaches to Cinema - German Expressionism" investigates German expressionism and films of this style. To begin with, it may be particularly important to engage Metropolis in the discussion. Thus, the beginning of the previous century was a time in history when the human society grew more and more different and stratified. Revolution in the Russian Empire showed that there is a big group of people, the working class, who is in perpetual conflict with the wealthy class that oppresses them. All this was heavily influenced by the view of Karl Marx. The movie Metropolis takes the division between the two classes to a new extreme: on the one hand it, shows people living in paradise who know little about what lays under their city– the true hell on earth. The directors were able to show that the two worlds are dramatically different in every aspect: space, light, action and many others. This might be interpreted as a fear of the ultimate stratification of classes. Anothe r popular concern in Germany in the beginning of the twentieth century focused on the possibility that machines might take up the place of man. Metropolis highlights this theme very distinctly: it is shown that a man can invent a machine and cover it with human form and no one will be able to tell the difference. In spite of the fact that the process of copying the appearance is not properly explained in the money and looks to fantastic, the outcome is more than realistic: people listen to the robotic Maria and choose her as a leader.

My Experience and Understanding of Adventure-Based Counselling Essay Example for Free

My Experience and Understanding of Adventure-Based Counselling Essay According to Neill (2004), ‘Adventure therapy is the use of adventure-based activities and/or adventure-based theory to provide people with emotional and/or behavioral problems with experiences which lead to positive change in their lives.’ Adventure therapy is also â€Å"programming aimed at changing [specified] dysfunctional behavior patterns, using adventure experiences as forms of habilitation and rehabilitation† (Priest Grass, 2005). The underlying philosophy of adventure-based counseling (ABC) is experiential education and it stresses on one’s personal improvement through full value contract, adventure wave and challenge by choice (Schoel, Prouty Radcliffe, 1988). After several lectures, different skills were explained and even applied on ourselves. In this essay, these theories and experience will be discussed. Adventure-based counseling is part of the means of experiential learning. Educational psychologists usually define learning as â€Å"a change in the individual caused by experience† (Slavin, 1986, p.104). Through various experiences, people can learn from them and gain personal growth. Kolb (1984) suggested an experiential learning cycle, pointing out four essential elements of experiential learning, which are experience, review, conclusion and planning. Applying to Adventure-based counseling, experience means some challenging activities for groups or individuals. Review means encouraging individuals to reflect, describe, communicate and learn from the experience. Conclusion means concluding past and present experiences and planning means applying new learning in the future. There are several learning theories explaining how experiences can lead to learning, which means behavioral changes or cognitive developments. Operant conditioning proposed by Skinner states that successes, praise, positive feedbacks or rewards can act as positive reinforcers so that the subjects would be reinforced to act the same way again. Similarly, failures, punishments or negative comments would act as negative reinforcers which deter the subjects to act again (Skinner, 1968). In adventure-based counseling, participants would face some challenges and act. Some actions would lead to positive results, which would further reinforce participants to act in the same way when they face similar situations again. Some actions lead to negative results, which make them aware and change their behaviors next time. This can be applied also to changing of personalities and problem-solving skills. Undesirable personalities will be discouraged by failures or negative feedbacks while desirable personalities will be reinforced. Bandura suggested social learning theory that people can learn through observational learning and modeling (Bandura, 1986). Through observational learning, people would imitate others’ behaviors and learn from others’ successes or failures. In adventure-based counseling, when participants face the challenges individually, they would imitate what other participants do, or take others’ successes and failures in dealing with the challenges as example. So when they face the challenges, participants would improve along the sequence. When encountering group challenges, participants would imitate the socially desirable behaviors of their group mates or remind themselves not to behave socially undesirably after observing their group mates’ failures. This can enhance participants’ social skills. In cognitive aspect, James Coleman (1977) differentiates between the information assimilation process of the regular classroom and the experiential learning process. In traditional classrooms, knowledge is taught to students through direct instruction and they simply memorize the knowledge. Through information assimilation, the learners are expected to move from cognitive and symbol-processing sphere to the sphere of action through applying the general principles learned into novel situations. Experiential learning is in a reversed order, which involves actions sufficiently repeated that the learner is able to generalize from the experience. However, it is more etched into the brain as the learning can be associated with concrete actions and events, not just abstract symbols or general principles (Mllre, Priest, 1990). There are some important principles of adventure-based counseling, namely â€Å"Full Value Contract† and â€Å"Challenge by Choice† (Schoel, Prouty Radcliffe, 1988). â€Å"Full Value Contract† means an agreement among group members to value one’s own ideas and needs without ignoring or discounting others. â€Å"Challenge by Choice† means ‘individuals can choose their level of participation in any activity.’ (Neill, 2007) During our lectures, our lecturer Lau Sir has explained different theories by involving us to play games. After playing games, Lau Sir would explain how the games worked, the meaning of different procedures, and what can we learn throughout them. In the first lecture, a game ‘throwing the chicken’ was played. It is an ice-breaking game, aim at knowing the names of group members. Although it is a very easy game, it has lots of micro-skills included. At the beginning, Lau Sir has asked did anyone feel afraid of the chicken, which could show his caring to the participants, in order to build up the relationship between the leader and the participants. After one round of the game, Lau Sir required the participants to repeat the process, but with a faster speed, the participants would then move their chairs towards the center. This is using indirect intervention method, helping them to get closer and involve more into it, without directly telling them to sit closer or involve more. The other micro-skill ‘Challenge by Choice’ was also frequently used during lectures. For example, the ‘throwing the chicken’ game in the first lecture, the ‘trust ladder’ in the second lecture and different games during the overnight camp. All of these may only be just simply asking the participants that whether they want to play, but it was vital as it shows the respect to the participants. These skills were the easiest thing being omitted, but without it, the counseling work may be affected or even have some adverse effects. Although half of the lectures have passed, there is one more High-event Challenge Day and several lectures. I am looking forward to learn more different skills in counseling and leading games. Reference List Bandura, A. (1986). Social foundations of thought and action: A social-cognitive theory. Englewood Cliffs, NJ: Prentice-Hall. Coleman, J. A. (1977). Differences between experiential and classroom learning. In M. T. Keeton (Ed.), Experiential learning: Rationale characteristics, and assessment, pp. 49-61. San Francisco, CA: Jossey-Bass Publishers. Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. Englewood Cliffs, NJ: Prentice Hall. Mllre, J. C. Priest, S. (1990). Adventure education. State College, DA: Adventure Publishing. Neill, J. (2004). Adventure therapy definitions. Retrieved from http://www.wilderdom.com/adventuretherapy/adventuretherapydefinitions.html Neill, J. (2007). Adventure-based counseling (ABC). Retrieved from http://wilderdom.com/ABC/ Priest, S., Gass, M. (2005). Effective leadership in adventure programming (2nd ed.). Champaign, IL: Human Kinetics. Schoel, J., Prouty Radeliffe,P. (1988). Islands of healing. A guide to adventure based counseling. U.S.A: Project Adventure. Skinner, B. F. (1968). The technology of teaching. New York: Appleton-Century-Crofts. Slavin, R. E. (1986). Educational psychology: theory into practice. Englewood Cliffs, NJ: Prentice-Hall.

History of Civil Rights | Essay

History of Civil Rights | Essay Racism entails the belief that some races are more superior to others in society. From as early as the colonial era, racism in the United States of America has been a major issue. Native Americans, African Americans, Asian Americans, Mexican Americans, American Jews, Irish Americans and some other immigrant groups and their descendants were all considered as the minority groups. Racism has many forms. However, no one is born a racist. This develops from the environment from which our children grow into. Racism in the United States of America has been a major issue ever since the slave and the colonial era. Legally endorsed racial discrimination imposed a grave burden on African Americans, Native Americans, Mexican Americans, and Asian Americans. European Americans were from the beginning at an advantage since the American law favored them in matters of voting rights, literacy standards, immigration, land acquisition, citizenship, and criminal procedure over periods of time extend from as early as the 17th century to the 1960s. Majority of the European ethnic groups, particularly Eastern Europe, Irish Americans, American Jews, Southern European immigrants, in addition other immigrants, suffered discrimination and other kinds of racism in American society. The major racially structured institutions at the time included Indian wars, slavery, segregation, Native American reservations, internment camps and residential schools (for Native Americans. In America, official racial bias was largely prohibited in the mid-20th century; moreover, it came to be viewed as socially intolerable. However, racial politics remained a major phenomenon in American territory. Historical racism up to date has continued to be perceived in socio-economic inequality. Nevertheless, racial stratification continued to take place in all avenues in our society including government, housing, employment, housing, lending and education sectors. As is the case in most countries, many people in the United States of America continue to harbor some discrimination against individuals from other races. Discrimination infiltrates almost all aspects of life in the United States of America, and it further extends to all communities of color. SLAVERY Slavery in the United States was a kind of forced labor that existed in North America as a legal institution for over a century. This was before the United States was founded in the year 1776. Later on, slavery began to spread to the south. This continued until the thirteenth Amendment of the United States Constitution was passed in 1865. The first lot of Africans to land in the United States was brought into North America in 1619. The ship docked in Virginia carrying about 20 Africans. This was the beginning of slavery in America. Slavery gradually spread into areas with good fertile soils where large plantations of high value cash crops were being grown. The key crops being grown were sugar, Cotton, coffee and tobacco. During the 18th century, legislatures and colonial courts had radicalized slavery. Fundamentally this created a caste system in which slavery applied exclusively to Black Africans and other people of African origin. However, Native Americans were also occasionally turned into slaves. Between the 16th à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ 19th centuries, more than 12 million Africans had been shipped into America to become slaves to the Americans. By the 19th century, majority of the slave holders were located in South Americas where the land was more fertile. The African slaves were managed by overseers who were usually white Americans. Slavery was a touchy subject in the politics of the United States of America between 1770s-1860s. Thus it became a matter of discussion in the drafting of the American Constitution. Moreover, it became a key issue in Federal legislation and Supreme Court cases. Slaves resisted the legalization of slavery and the whole institution that supported it. To show their dismay, they held rebellions and non-compliance. In addition, they escaped slavery by travelling to non-slave states and Canada. This was made possible by the Underground Railroad. Activists of abolitionism were constantly engaged in political and moral debates in an effort to encourage the creation of Free Soil states as Western expansion proceeded. Slavery was a major subject that led to the start of the American Civil War. Once the Union won the war, slavery became illegal throughout the United States of America. In addition, the country adopted the Thirteenth Amendment to the United States Constitution. B. Freedom Fighters Once slavery was abolished, African American people began to rise into positions of power in America. Some of them are discussed below. Martin Luther King Jr. Martin Luther King, Jr was not only an American clergyman and activist but also a prominent leader in the African American Civil Rights Movement. He is famous for his contribution to the advancement of civil rights in the United States and around the world. He advocated for the use of non violent methods with regards to Mahatma Gandhi. He is also famous for being a Nobel peace laureate in 1964 for his work to end racial segregation and discrimination using non violent means. When he was assassinated in 1968, he was posthumously honored the Presidential Medal of Freedom. This was in 1977 and in 2004; he was awarded the Congressional Gold Medal. In the year 1986, Martin Luther King, Jr. Day was established as a U.S. federal holiday. 2. Autherine Lucy Foster Autherine Lucy Foster went down in history as the first black student to ever attend the University of Alabama. At the time, university policies prohibited her from attending the university since she was black. She therefore approached the National Association for the Advancement of Colored People (NAACP) for assistance. Court proceedings began on July 1953 and on June 29, 1955, the NAACP secured a court order preventing the University from turning down the admission applications of Lucy and her friend based upon their race. Few days later, the court amended the decision to apply to all other African-American students who were seeking admission in the university. The Supreme Court upheld this in Lucy v. Adams on October 10, 1955. The university reluctantly allowed Lucy to register, however, she was excluded from all dormitories and dining halls. On February 3, 1956, Lucy enrolled as a graduate student in library science, becoming the first African American to ever get admitted to a w hite public school or university in the state. However, things were not smooth sailing for Lucy since on the third day of classes, a hostile mob gathered to keep her from attending her classes. The police intervened however that evening Lucy was suspended from university on grounds that she disrupted the peace in the university. She filed suit against the university and as a result, they expelled her on grounds that she slandered the university reputation after decades of law suits, the University overturned her expulsion. This was in 1980, and in 1992, she finally earned her Masters degree in Elementary Education from the University. The University named a scholarship in her honor as well as unveiled a portrait of her in the student union. The inscription on it reads Her initiative and courage won the right for students of all races to attend the University. 3. Ida B. Wells- Barnet Ida Bell Wells-Barnett (July 16, 1862 March 25, 1931) was an African American female news paper editor and journalist. Her husband, Ferdinand L. Barnett, was the newspaper owner as well as an early civil rights movement leader. Ida documented the extent of killings that were being executed in the United States. She was also dynamic in the womens rights movement as well as the womens suffrage movement in America. Since she was little, she was aggressive in her demands for equality and justice for African-Americans. She always maintained that the African-American community could only gain justice through its own determination and efforts. Since her death, in March 25, 1931, the significance of her life as well as her legacy has greatly grown. Her life story has been the subject of a extensively performed musical drama, which debuted in 2006, by Tazewell Thompson. In history, she is labeled the woman who was at one time born in slavery yet she grew to overcome all odds and become one of the great pioneer activists of the Civil Rights Movement in America. III. Civil Rights Movements in the United States Brown vs. Board of Education Brown v. Board of Education of Topeka was a land mark decision made by United States Warren Supreme court on May 17, 1954. The land mark declared the previous state laws that ensured the establishing separate public schools for white and black students were unconstitutional. This court ruling overturned the Ferguson vs. Plessey decision of 1896 which advocated for state-sponsored segregation. The court decision stated that separate educational facilities are inherently unequal. As a result, de jure racial segregation was declared a violation of the Equal Protection Clause of the Fourteenth Amendment of the United States constitution. This ruling paved the way for integration of all people irrespective of their race and civil rights movement. B. Harlem Renaissance The Harlem Renaissance began as a result of changes that had occurred in the African American community since slave was legally abolished. These changes were further hastened by the outcome of World War I. another catalyst to the movement was the great social and cultural changes that occurred in early 20th century in the United States. Industrialization was attracting people to urban areas from the rural areas and as a result, this gave rise to a new mass culture. Some of the contributing factors that lead to the Harlem Renaissance were the First World War, which had produced new industrial employment opportunities for hundreds of thousands of people and the Great Migration of African Americans to northern cities in America. This in turn led to the concentration of ambitious people in areas where they could hearten each other. Thus, the movement emerged stronger and more determined than ever. Harlem is a section of New York City. In the early 1900s, mostly in the1920s and early 1930s, African American literature started to thrive in Harlem. The New Negro movement, the New Negro Renaissance, and the Negro Renaissance were names referring the African American movement that was aimed at fighting for the blacks rights in America. This movement came forward towards the end of the First World War in 1918. The Harlem Renaissance marked the crucial moment in American history when the mainstream writers and critics took African American literature seriously. This is because; they realized that African American literature and arts was gaining significant attention from the world as a whole. Although it was mainly a fictional movement, it was very much related to progress in African American theater, music, politics and art. The Harlem Renaissance seemed to be the best of times for America to recognize and appreciate the African American people. The Harlem renaissance main objective was to fight for equality. However, once the great depression came about, the Harlem renaissance collapsed. Conclusion The election of Barrack Obama as a US president was a major milestone in the history of the United States. Being an African American, it was the peoples way of telling the world that the end of the dark ages of racism in America had come. People like martin Luther King Jr. dreamt of the day all Americans would accept each other and learn to live together in harmony. Finally this dream is slowly becoming a reality. Racism is a global harm on society, yet with persistence equality can be made.

Globalizaton Essay -- Economics Economy Papers

Globalization is a term that has become very popular in recent times. It is a concept with many differing definitions. Thomas L. Friedman, author of The Lexus and the Olive Tree, describes globalization as a movement that enables individuals, corporations, and countries to reach around the globe farther, faster, deeper and cheaper than ever before. Globalization is the spread of free market capitalism to virtually every country in the world. Countries are encouraged to allow free trade, privatization and competition. Basically, it involves worldwide integration of both economic and political ideals. Globalization is becoming more popular and more accessible mainly because of the recent advancements in technology. Many believe it to be a positive phenomenon, while others believe that it is very bad. The rise and spread of globalization has brought along with it many supporters and opponents. Benefits of globalization are that it creates jobs, generates prosperity, raises standards of living all around the world and much more. When companies do business in other countries more jobs are created. Companies such as Nike, Levis, Coca-cola are constantly building factories in less developed countries, such as Indonesia, Vietnam, Dominican Republic and many more. These factories are providing jobs for thousands of people who would otherwise not be able to find work anywhere else. This helps the human rights issue and can be beneficial for the overall economy of the country as well as the individual. James Robinson, former head of American Express said, "I think it's helping human rights because what it's doing is it's giving jobs to people at salary levels that they never had access to before. So in time I think this becomes more self... ...obalization. October 2000 The World Trade Organization. www.wto.org Geneva, Switzerland. October 2002 Public Broadcasting Service. Transcript: Globalization and Human Rights. www.pbs.org. October 2002 Panayotou, Theodore. Globalization and Environment: CID Working Paper No. 53. July 2000 North American Free Trade Agreement. "NAFTA: A Foundation for Canada's Future Prosperity." http://www.dfait-maeci.gc.ca/nafta-alena/over-en.asp Canada. September 2003 FDI Magazine. "Egyptian Endeavors." www.fdimagazine.com. December 2003. Hill, Charles. International Business: Competing in the Global Marketplace. The McGraw-Hill Companies, Inc., 2005 Tseng, Wanda and Zebregs, Harm. Foreign Direct Investment in China: Some Lessons for Other Countries. International Monetary Fund, February 2002.

A hero that I most admire by Zanis

Despite all these hardships, my mom still managed to get an education, start a family and accomplish something that would change the course of my life, forever. She worked and worked and worked, and, eventually, she saved up enough money to fly me over to Ireland to have a better childhood and lifestyle than she had, I admire that woman because she went above and beyond to make sure that her child would receive a better education, a better life and a secure future where we don't have to worry about where our next meal is owing from.Secondly, I admire her because of her strength. She's been through hell and back, and, amazingly, she's still here, standing tall. About eight years ago, my mom and dad were divorced. When I heard the news, I was so little, I broke down and cried. My father was my world, my everything, and to know that I could lose him at any given moment scared the life out of me. Just the other day, I asked my mom why she never cried. She responded, â€Å"Are you kiddin g me†, I would cry all the time. I would cry when you kids were off at school. I would even cry myself to sleep sometimes.I Just wouldn't cry In front of you kids or your step-father, because I knew that I had to keep a straight face. I had to be the rock that kept the family grounded. She was the rock then, and she's still the rock now. Lastly, I admire her because she's as quick as a whip and she's more Independent than anyone I know. She's a clever one I tell you. It seems Like whenever anyone In my family comes down with an Illness, she has the cure. If you are living under my mom's roof there's absolutely no deed for missing days off school because of some Illness.Just give her fifteen minutes to mix up a homemade remedy and you're cured. On top of that, my mom Is also very clever. If the check engine light lights up, my mom can take care of It. When the time to file taxes comes around, she's got It. A lot of people look up to celebrates Like Kim Sardinian or Jeremy Line. Now don't get me wrong, those celebrates are great and all. But, I don't admire them the same way that I admire my mom. She's an Incredible human being whoso hardworking, strong, clever and Independent. I admire her courage and her resilience.She Inspires me and my slings to be better people and to give life own very best shot. A hero that I most admire by Azans By Pakistani sometimes. I Just wouldn't cry in front of you kids or your step-father, because I knew as quick as a whip and she's more independent than anyone I know. She's a clever one I tell you. It seems like whenever anyone in my family comes down with an illness, she has the cure. If you are living under my mom's roof there's absolutely no need for missing days off school because of some illness.Just give her fifteen minutes to mix up a homemade remedy and you're cured. On top of that, my mom is also very clever. If the check engine light lights up, my mom can take care of it. When the time to file taxes comes around, she's got it. A lot of people look up to celebrities like Kim Sardinian or Jeremy Line. Now don't get me wrong, those celebrities are incredible human being who's hardworking, strong, clever and independent. I admire her courage and her resilience. She inspires me and my siblings to be better people

Sustainable Tea at Unilever

rP os t 9-712-438 REV: DECEMBER 21, 2011 REBECCA M. HENDERSON FREDERIK NELLEMANN Sustainable Tea at Unilever op yo To survive and prosper over the long term, learn how to adapt your business model by making it servant to society and the environment. Not the other way around. — Paul Polman, CEO, Unilever In 2010 Unilever announced its commitment to a new â€Å"Sustainable Living Plan†, a document that set wide-ranging company-wide goals for improving the health and well-being of consumers, reducing environmental impact, and, perhaps most ambitiously, sourcing 100% of agricultural raw materials sustainably by 2020.Such a goal implied a massive transformation of a supply chain that sourced close to 8 million tons of commodities across 50 different crops. Unilever CEO Paul Polman believed that the company’s ambitious goals could drive savings, product innovation, and differentiation across the company’s portfolio of products. But more importantly, it would cre ate a company better suited to survive in the future which Polman envisaged: tC This is a world that is challenged. When you look at the interdependent challenges that we face on food security, poverty reduction, sustainability f resources, climate change, and social, economic, environmental development, these challenges have never been greater. And I believe that these pressures will only increase as 2 billion more people enter this world and many aspire to increase their living standards. 1 No The changes happening at Lipton, Unilever’s â‚ ¬3. 5 billion tea brand, were an important cornerstone of Unilever’s plan. For over five years, Michiel Leijnse, the global brand director for Lipton Tea, and the Unilever Procurement team had led the transformation of the Lipton brand and its supply chain towards a goal of 100% sustainable sourcing.Approximately 25% of all Unilever tea now came from Rainforest Alliance Certified farms and real gains had been made in the social, environmental and economic sustainability of tea production. The scale of Unilever’s mainstream partnership approach was unprecedented in the beverages industry, where â€Å"ethical† brands had failed to grow beyond niche market positions. Unilever’s goal was to have all of the tea in Lipton teabags sourced from Rainforest Alliance Certified farms by 2015, and to have every kilogram of Unilever tea sustainably sourced by 2020.Michiel Leijnse was confident that these goals could be achieved but the business faced two critical issues as they worked to make them a reality. Do The first issue was how Unilever could transform a supply chain that was not only geographically very diverse but also highly fragmented. Unilever bought tea from all producing regions, and in many markets the majority of production was contro lled by smallholders who sold their tea at open auctions.Unilever and the Rainforest Alliance had successfully certified Unilever’s own tea esta tes ________________________________________________________________________________________________________________ Professor Rebecca M. Henderson and Research Associate Frederik Nellemann (MBA 2011) prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2011, 2012 President and Fellows of Harvard College.To order copies or request permission to reproduce material s, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to www. hbsp. harvard. edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever rP os t 712-438 nd those of many large plantations, but the firm now faced the increasingly difficult task of convincing smallholders in markets across the world of the benefits of changing agricultural practices and pursuing Rainforest Alliance certification. India, for example, was a major tea producer and consumer, but the small scale of many of the farms and the nature of local farming practices made certification a significant challenge. What should Unilever do in such markets? Should Unilever hold fast to Rainforest Alliance certification or instead work to implement incremental change through standards better suited for Indian practices?How could they persuade hundreds of thousands of smallholders to adopt new farming methods in market s where most tea production and consumption was local and Unilever was far from the dominant buyer? op yo The second issue was whether and how Unilever could gain market advantage from its move to sustaina ble tea. While the adoption of Rainforest Alliance certification appeared to have led to market share growth in some Western markets, it was not clear either that this would continue or that the concept of a sustainability message would resonate with consumers in developing markets like Turkey, India, or Russia.How should Unilever market its sustainability efforts in emerging markets? Beyond these two key issues several other smaller but also potentially important questions also consumed Unilever’s attention. The Unilever Sustainable Living Plan committed the company to sourcing 100% of all agricultural raw materials sustainably by 2020. Did this mean moving to sustainable paper in tea bags and packaging or to sustainable ingredients sourced in very small amounts—such as chamomile—where there was currently no sustainable supply?If so, what was the best way to approach such moves? And more broadly, were there lessons in Lipton’s experience for the rest of Unilever’s agricultural supply chain and for the power of sustainability as a source of consumer differentiation? Unilever tC Unilever and Lipton Tea No In 2011 Unilever was one of the world’s leading consumer goods companies, selling everything from food products to personal care and home care goods. It was a company with a global reach, with sales coming from more than 180 countries, over half of which were in the developing world.Worldwide, over two billion consumers used Unilever products each day, and 2010 revenue was over â‚ ¬44 billion ($59 billiona). 2 Just over half of these sales came from foods and beverages, with 31 % of sales in personal care and 17% in home care (see Exhibit 2 for breakdown by segment). The company employed 167,000 people globally. Much of the company’s success was due to its portfolio of strong brands. The company had 12 brands with individual sales over â‚ ¬1 billion per annum, including such widely recognized products as L ipton, Dove, and Axe . DoThe company faced competition from a number of other large consumer goods companies , including Procter & Gamble, Nestle, and Colgate-Palmolive. (See Exhibits 3-5 for further comparison financial figures). a Using exchange rate of â‚ ¬1 = $1. 35 as of December 2, 2011. 2 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 712-438 rP os t Sustainable Tea at Unilever Unilever Tea Lipton Tea was the largest tea brand in the world with annual sales of approximately â‚ ¬3. billionb. Unilever’s tea portfolio contained a number of other strong regional brands such as PG tips in the United Kingdom (U. K. ), Lyons in Ireland, and various other brands in countries around the world, including India, Pakistan, Russia, and Poland. Lipton’s global market share was nearly three times that of its nearest rival, Tata Beverage s, the owners of Tetley Tea. Lipton teas were sold in over 130 countries, with particular popularity in Europe, North America, the Middle East, and parts of Asia.Growth in the developed world was in the order of 1%-2% a year, but the markets of the developing world—specifically India and China—were seen as particularly promising, with anticipated annual growth rates of close to 10%. op yo In 2010, Unilever sold nearly 350,000 tons of tea. Approximately 90% came from external suppliers, with the remainder coming from Unilever’s own estates in East Africa, including its flagship estate in Kericho, Kenya. Every market had a distinct taste in tea, making it to some extent reliant on supply from particular countries.For example, the North American market sourced much of its tea from Argentina, since its tea was particularly well suited for iced tea, which was popular in the U. S. The Global Tea Market tC Tea was the world’s most popular beverage after water. I n 2009, approximately 4 million tons of tea was produced in 46 countries, with China, India, Kenya, and Sri Lanka accounting for 70% of global production. 3 Kenya, where much of Lipton’s tea was produced, accounted for approximately 8% of global production,4 but was the world’s largest exporter of tea (see Exhibit 14 for a breakdown of global tea production). No Russia, the U. S. , and the U. K. were the biggest net importers of tea, accounting for nearly 30 % of global imports. 6 Tea was consumed for a variety of reasons and in a wide variety of blends. For example, Japan with its strong preference for green tea consumed approximately a fifth of all global green tea supply. Tea was an ingrained part of daily life in many countries for cultural and historical reasons. In other parts of the world, tea was becoming increasingly popular due to its perceived health benefits. 7Historically, global tea markets had suffered from over-supply. The resulting price pressure was e xacerbated by tea’s high degree of commoditization, low switching costs for consumers, and tea’s perishability, which meant prices were often cut drastically to clear stocks. 8 As seen in Exhibit 6, despite moderate gains in the price of tea since 2000, the price of tea in real terms in 2010 was still 35% lower than its peak in the mid-1980s. 9 Tea Production and its Consequences Do Tea production was a very labor-intensive activity.With a few regional exceptions, tea production occurred year-round, as the top two to three leaves of the plants were carefully hand- b This figure included some sales realized through the joint-venture with Pepsi on ready-to-drink products. These sales are not included Unilever’s total turnover. 3 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever rP os t 712-438 icked every 7 to 21 days, depending on the altitude and climate. 10 Tea plantsc could grow to a height of 30 feet or more, but were usually cropped at about 2 to 3 feet and then pruned regularly in order to make them easier to pick. 11 The leaves were plucked by hand and then processed immediately either on-site at the plantation or at a bought-leaf factory. 12 During processing, tea leaves were withered, macerated, oxidized, dried and sorted on site. The processed tea was then transported to a broker or auction, after which it was blended, sometimes flavored, and packaged.Finally, it entered the relevant retail sales channel before ending up with the consumer. op yo Inappropriately managed, tea production could raise a number of social and environmental concerns. The industry contained a mix of large-scale estates and smallholders, each with their own challenges. Over the years there had been reports of bad working conditions on poorly managed plantations that damaged worker health through ex posure to harmful pesticides and agrochemicals. In certain cases, the workforce included migrant laborers with no protection in case of illness, pregnancy or other factors. 3 They generally received low wages and were not always given medical care, housing, education or pensions. Further, in some cases independent trade unions, when they existed, had been accused of corruption or ineffectiveness. 14 tC For some smallholders who grew tea as a cash crop, tea production implied the conversion of tropical forests into agricultural land which could lead to reductions in local species diversity and to soil degradation. 15 However, for most farmers unsustainable practices were a result of focus on increasing yields and not acreage.Logging for the firewood needed to dry tea could lead to local deforestation, which could in turn led to problems in water retention. Some farms used excessive amounts of fertilizers and pesticides, which could negatively affect soil quality and pollute local soi ls and waterways. Years of commoditization had contributed to a downwards price spiral that put pressure on workers and the environment as farmers tried to safeguard their income. Unilever’s Commitment to Sustainable Tea No Unilever first established a set of good agriculture practice guidelines in 1998.The guidelines outlined sustainable farming practices for the suppliers of its major crops, including tea, palm oil and tomatoes, and included 10 key indicators of environmental, social, and economic performance, each with their own sub-parameters (see Exhibit 7b for more details). The guide was not imposed on external suppliers, but it was shared with them and with the broader public. This was the first move of this kind in the industry. Do In 2006, Michiel Leijnse began the process of transforming this internal commitmen t into a major consumer-facing initiative.He believed that many Western consumers had become sufficiently concerned about sustainability that it might help drive product differentiation. More importantly, he saw this as an opportunity to transform the entire tea industry , benefiting not only tea workers and the environment, but also purchasers of tea who were reliant on a healthy supply chain. Aware that such a transformation was not costless, Leijnse explained the initiative’s rationale: If we didn’t do something to transform the industry, at some point we just wouldn’t be able to get the quality and quantity of tea we need.While we might see market share gains in c There are two main varieties of the tea plant: China and Assam. The Assam variety, which is used in India and Kenya, is the most common. All varieties can and are used to produce green and black tea. There are many kinds of hybrids between the varieties, and other factors like soil, climate, altitude, picking time, and processing all affect t he flavor. 4 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 712-438 rP os tSustainable Tea at Unilever some markets, it won’t always be the case. It is a challenge to properly align the short -term and long-term interests of the brand. Tea Certification and the Rainforest Alliance op yo Leijnse and his team decided to pursue certification for the brand, and chose the Rainforest Alliance, a founding member and secretariat of the Sustainable Agriculture Network (SAN), as its certification partner. There was significant overlap in both Unilever’s and Rainforest Alliance’s approach to sustainable agriculture practices, in that both focused on environmental, economic, and social factors.Further, the Rainforest Alliance focused on market-based premiums rather than fixed price supports (characteristic, for example, of FairTrade products) as the best way to create change. The Rainforest Alliance had some consumer recognition from previously su ccessful campaigns certifying a range of other commodities, including bananas, coffee, and cocoa but had no prior experience with tea certification or on the African continent, where Unilever had decades of experience from its tea estates. Unilever set ambitious targets for the implementation of Rainforest Alliance certification.By 2011, its initial target of having all Lipton Yellow Label and PG tips tea bags in Western Europe certified by 2010 had been successfully achieved. Lipton had committed to sourcing all the tea in Lipton tea bags from Rainforest Alliance-certified estates by 2015, approximately a third of all Unilever tea volume. And if Lipton were to meet the commitments of the Sustainable Living Plan, by 2020, 100% of Unilever’s tea would need to be sustainably sourced, although the Plan did not commit Unilever to using tea from Rainforest Alliance certified farms. tCThe certification process Rainforest Alliance certification evaluated farms according to 10 princi ples covering issues such as worker welfare, farm management, and environmental protection , each with its own criteria. 16 The Rainforest Alliance certified entire farms, so that in order for any of a farm’s crops to be certified, the entire production area for all crops had to meet the standards. In order to obtain and maintain certification, a farm had to be in compliance with at least 50% of the applicable criteria associated with each principle and with at least 80% of the total set of applicable criteria.Further, there were fifteen critical criteria which were mandatory for certification, regardless of overall compliance (see Exhibit 7a for information on certification standards). 17 Do No While independent farmers bore the costs of complying with the Rainforest Alliance standards (for each estate or group being certified covered, there was a certification cost of approximately â‚ ¬3,000 to â‚ ¬4,500, or $4,000 to $10,000, depending on farm size18), Unilever also incurred costs in choosing to buy certified tea. First, Unilever paid a premium for the tea. In 2011, this was approximately â‚ ¬0. 08 per kilogram of tea.In 2010, the average market price per kilogram of tea was â‚ ¬1. 69 ($2. 28). 19 In the market for certified coffee, price premiums of 15% had been seen. From 2011, Unilever had to pay the Rainforest Alliance a participation fee in order to carry the organization’s frog logo on its pack.. This fee was â‚ ¬0. 0089 ($0. 0125) per kilogram of tea. Unilever’s Procurement organization devoted six full-time equivalent people to work on the roll-out of global certification education and spent approximately â‚ ¬200,000 per year on the development and deployment of farmer training in conjunction with the Rainforest Alliance.Scaling Certification in the Supply Chain Unilever had to certify almost a quarter of its tea volumes to meet its 2010 goals. Given the lack of any pre-existing certified sources, Unilever and the Rainforest Alliance faced a significant challenge in developing large volumes of certified tea in a relatively short time period. To address this, 5 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever rP os t 712-438Unilever’s efforts initially focused on certifying Unilever’s own production in Kenya and Tanzania as well as some of its larger and better-managed tea suppliers. Achieving the firm’s 2015 and 2020 goals would require working further down the supply chain with smaller, less organized suppliers operating in a wide variety of different countries, each of whom had different agricultural practices, government support, and institutional capacity. Unilever had been successful in building a certified supply chain in East Africa. Could this be replicated across the entire supply chain?The Certific ation of Unilever’s Own Estates in East Africa op yo The Unilever estates in Kenya and Tanzania were the first sites to be certified. Unilever had actively worked to maximize long-term yields and to control costs ever since planting commenced on the 13,000 hectare estate20 in Kericho, Kenya, in 1928. For example, tea bush prunings were left on the field to rot, rather than being removed as waste or for use as firewood or cattle food, a practice that maximized soil fertility and water retention. The estate also carefully managed its fertilizer use.Fertilizer was not only expensive but also a potential threat to soil quality if mismanaged. On-site hydropower provided reliable electricity at one-third the cost of power bought from the Kenyan grid , and the tea was dried using wood sourced from fast-growing eucalyptus forests planted on the edge of the estate. In contrast to estates in Asia, Kericho made only minimal use of agrochemicals and other pesticides, both because of the favorable climate and also through appropriate management of the surrounding land which was home to natural predators of many pests. tCThe Kericho estate also invested in the health and well-being of its 16,000 employees and their dependents. The employees, who were paid a fixed sum per kilo of tea plucked, typically earned twoand-a-half times more than the local agricultural minimum wage. In addition, Unilever provided them with free access to company housing and health care, including the company’s hospital and pharmacies and the employees’ children were educated in company-owned schools. 21 The company had recently invested â‚ ¬1. 2 million to update many of these facilities. No The Kericho estate achieved some of the highest yields in the world , with annual yields of 3. to 4 tons per hectare, compared to an average of 2 to 3 tons per hectare in India. At the Unilever estate in Tanzania, which followed similar practices, the yields were 3 tons per hectare compar ed to less than 2 tons per hectare in the rest of the country. â€Å"The sustainability work we did at Kericho made good agricultural sense, and in the long run it also made good financial sense,† explained Richard Fairburn, former managing director of Unilever Tea East Africa. â€Å"We understand that this is simply the way the industry needs to operate in order to survive and thrive. To further increase the supply of certified tea, Unilever identified a priority list of its larger suppliers in Africa, Argentina and Indonesia. Many of these estates were already professionally managed and were certified following adjustments to existing practices using available tools. 22 Working Down the Supply Chain Do Initial success with small-hold farmers in East Africa Certifying the 500,000 Kenyan smallholders from which Unilever purchased tea was a critical component of the Rainforest Alliance roll-out since East Africa alone accounted for nearly one third of Unilever’s total tea requirement.Fortunately, Unilever was able to work with the Kenyan Tea Development Agency (KTDA) and with the IDH, the Dutch Sustainable Trade Initiative, to design a program that â€Å"trained the trainers† and led to the rapid diffusion of sustainable farming practices across the country. 6 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 712-438 rP os t Sustainable Tea at UnileverThe KTDA was a highly respected farmer’s cooperative covering 62% of all Kenyan prod uction through 59 factories. Its goal was to help local farmers receive better prices as well as to provide training and other extension services. In 2011, Unilever bought approximately 40% of KTDA’s production. 23 Unilever worked with the Kenyan Tea Development Agency (KTDA) and the Rainforest Alliance to educate the locally-elected lead farmers who did the bulk of the smallholder training. Each factory elected 30 to 40 lead farmers, each of whom received approximately three days training.Most of the training costs were covered by international donors like IDH but it was expected that the KTDA would ultimately take over this responsibility, estimated to be about â‚ ¬1 to â‚ ¬2 ($1 to $3) per tea farmer. 24 op yo Each lead farmer was expected to train approximately 300 other farmers through group and individual training, with the focus of the training being hands-on demonstration of sustainable agricultural practices. The meetings could also be used as a way to increase awareness of the potential price premiums paid for Rainforest Alliance certified tea.The certification criteria were broken down into actionable activities that could be easily communicated and the Rainforest Alliance helped develop simple posters and check lists that the lead farmers coul d distribute (see Exhibit 9 for an example). The process was designed to be very participatory, and further technical support was provided by the KTDA’s extension officers, who also received training. 25 Certification was organized at the factory level. For the external audit, the Rainforest Alliance or an authorized third party checked compliance with a sample of farmers at random.Prior to this, each farmer was also internally audited by a lead farmer, but never by the same lead farmer who trained them. Lead farmers received some modest financial support in the first year to cover the costs associated with their efforts. tC Most of the changes asked of farmers did not require huge changes in practice or much investment. For example, getting farmers to leave their pruning in the field (to improve soil quality) rather than removing them for use as firewood required persuading farmers to plant trees for fuel. Tree seeds were very cheap and Unilever subsidized the cost.Farmers were also encouraged to make compost from organic waste rather than burning it, as well as making better use of waste and washing water. No Some changes were expensive. For example, the Rainforest Alliance standards required the use of personal protective equipment for the spraying of (approved) pesticides. This could cost up to $30, half a month’s salary for a smallholder 26. However, the KTDA set up its own micro-credit scheme to assist farmers with these kinds of purchases, and in some places, the local smallholders had pooled money to buy a single set which was shared. 7 A pilot study done by Unilever in 2004 showed that total net investments were less than 1% of total cash farm income for the first year. Do Many of the farms saw yield gains of 5%-15% from the implementation of more sustainable practices, improvements in the quality of the tea, and reductions in operating costs as well as higher prices for their tea. Average income increased by an estimated 10%-15% and Unilever also felt that sustainable practices would help farmers better adapt to the climatic changes, like abnormal rainfall patterns, that many locals were already witnessing. 8 But according to Richard Fairburn, the most salient benefit to farmers was in their personal empowerment: â€Å"The Kenyan smallholders are ultimately interested in creating a farm in good health that can be passed on to future generations. That was the ’sustainability’ that resonated with them. † By 2011 the Rainforest Alliance had successfully certified over one-third of the smallholder farmers in Kenya, and Unilever was confident that eventually all Kenyan smallholders would gain certification.One encouraging sign was that some of the first groups to become certified had since 7 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever rP os t 712-438 independently renewed their certification. 29 Whether this mode l could be rolled out to other tea growing regions like Turkey and India was, of course, still in question. Marketing the Sustainable Message to Consumers op yoWhile Unilever’s procurement organization took the lead on sustainable sourcing, Leijnse’s major task was to explore whether and how the company’s commitment could be translated into increased sales or market share. This effort was complicated by the fact that Unilever had a portfolio of tea brands, each with its own distinct brand proposition. Leijnse had responsibility for Lipton, the largest of the brands, but he needed to work closely with his fellow brand managers across the category to frame appropriate messages and to communicate them well.His research suggested that an increasing number of consumers were interested in a brand’s ethical position and that credible action could change consumer preferences, but no one believed that any of Unilever’s tea brands should become â€Å"greenà ¢â‚¬  brands. â€Å"Certification was never approached as green marketing, but rather as a new marketing message for consumers,† explained one manager involved with the U. K. campaign. â€Å"Consumers aren’t choosing our product because it’s green, but because this new message was aligned with their expectations for our brand. †Retailers were very supportive of the certified tea —some even demanded it—since the product was well aligned with the retailers’ own sustainability initiatives for their businesses and supply chains. Despite this, none of the brand managers wanted to charge a premium for sustainable tea. Instead they hoped to use certification to boost brand equity and, possibly, market share. The Early Successes of the Rainforest Alliance Initiative tC Rainforest Alliance certification was launched with full-scale marketing campaigns for all of Unilever’s biggest Western European and Australian tea brands, including L ipton Yellow Label, PG tips, and Lyons.In some markets the campaigns met with significant success. In others, however, the impact was much more limited. No The PG tips success The U. K. market was a large and important one for Unilever , representing just under 10% of the firm’s tea production. The almost â‚ ¬990 milliond (? 850 million) market was dominated by two major brands, PG tips and its rival Tetley Tea, who each had roughly a quarter of the market. 30 PG tips was a classic black tea blend, with few line extensions. The U. K. was broadly seen as a progressive country when it came to environmental policies .However, while Unilever’s research suggested that the mass-market consumer was aware and concerned about â€Å"sustainability issues,† broadly defined, they were not interested in paying more for green products. The PG tips brand was a mass-market, working class brand that held a place in the everyday lives of it consumers, who were in general middl e-aged and middle-income. The brand proposition was one of sociability, family, and light-heartedness. This was captured in its ad campaigns which were infused with off-beat British humor. Do In 2008, PG tips was the only brand on the market proposing any sustainability differentiation.The marketing team treated the initiative as a major brand innovation and devoted the entire â‚ ¬12 million (? 10 million) marketing spend in the launch year 2008 to promoting the efforts. Previous U. K. experience found that it took 12 to 18 months to address mental barriers and fully land a message with consumers. The challenge for the PG tips team was to find a message that would resonate with d Using exchange rate of â‚ ¬1 = ? 0. 86 as of December 2, 2011 8 This document is authorized for use only by LINDA KELLY-HAYES until June 2011.Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 712-438 rP os t Sustainable Tea at Unilever its core co nsumers while maintaining consistency with the brand’s core proposition. â€Å"It was a huge challenge,† explained Neil Gledhill of the PG tips campaign. â€Å"We had to talk to mainstream consumers in a way that explained a complex topic without preaching, all in a languag e aligned with the brand. † op yo The chosen message, â€Å"do your bit: put the kettle on,† emphasized the positive action that consumers could take by drinking PG tips.The campaign tried to keep the light-hearted spirit of the brand’s previous campaigns and used its well-established characters: a talking monkey called Monkey and a working class man named Al. In one of the ads, for example, Monkey, presenting a slide show in the kitchen, explained to Al what certification meant, and how easy it was for him to do the right thing (see Exhibit 11). The campaign used TV and print, as well as a short movie that was shown as a preview in cinemas and ultimately included as a DVD in sp ecial promotion packs along with a tea towel.Packaging was also changed to include the certification seal and a description of the alliance. Prior to the campaign, PG tips and Tetley Tea were battling hard for the top spot in the British market. However, following the campaign, PG tips developed a significant lead in market share, with its market share increasing by 1. 8 points, while Tetley remained relatively flat ; and the purchase repeat rate increased from 44% to 49%. Sales of PG tips increased by 6%. Surveys suggested that there had been a steady increase in the perception of PG tips as an ethical brand following the launch of the campaign. No tC Project Sunshine†: the Australian success Like the U. K. , Australia was a relatively straight-forward tea market with only a handful of available products, and most sales in black tea. Prior to the launch of the campaign in 2009, the Lipton brand held nearly a quarter of the â‚ ¬260 millione (A$345 million) market. Unileverà ¢â‚¬â„¢s other brand, Bushell’s, had an approximately 13 % share of the market. The local team chose the phrase â€Å"Make a Better Choice with Lipton, the world’s first Rainforest Alliance Certified tea†, and because of the relatively small portfolio, it was implemented across the majority of the products.They felt that it was aligned with the existing brand vision, which had been â€Å"Drink Better, Live Better†, an attempt to increase the perceptions of quality and health benefits of the Lipton brand. The â‚ ¬1. 1 million (A$1. 4 million) campaign covered television, print, and public relations. Unilever also supported the initiative with in-store promotions. Packaging was changed to include the Rainforest Alliance seal on the front of the pack, with further explanation of the initiative and its benefits placed on the back and sides.Customers were not charged a premium for certified tea since surveys had found that higher prices were a perceived bar rier to sustainable consumption. Relative to the same test period the year before the campaign, sales were up 11 % and Lipton’s market share rose by 158 basis points from 24. 2 % to 25. 8%. Average purchase value per occasion rose from â‚ ¬3. 11 to â‚ ¬3. 23 (A$4. 10 to A$4. 25). The only area where the Lipton brand did not improve was on perceptions of quality, which decreased slightly during the campaign. Do Full activation in Italy The Italian tea market was estimated to be approximately â‚ ¬285 million in 2010.Unilever had an approximately 12% share. 31 The Italian marketing team supported the certification with a â‚ ¬3 million mixed campaign of television, press, online, public relations, in-store promotions, and packaging updates. The message chosen was â€Å"your small cup can make a big difference†. Following the first year of the campaign in 2008, Lipton saw s ales of its Yellow Label brand increase by 10. 5% and market share increase by over 2 ful l percentage points. It also witnessed an increase in its buyer base, which came mostly from younger and more upmarket consumers. The Using exchange rate of â‚ ¬1 = A$1. 31 as of December 2, 2011 9 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever rP os t 712-438 team continued to support the campaign with in store promotion in 2009 and a web and editorial partnership with Italy’s National Geographic magazine in 2010, all of which cost â‚ ¬250,000. The French market disappointment In 2010, Lipton had a 37% market share in the â‚ ¬430 million French teaLipton’s main competition came from retailers’ private label brands, which accounted for 30%-40% of sales. In France, Unilever’s portfolio was more diversified: Lipton sold over 40 different tea products. Whereas in the UK and Australia Uni lever had been able to carry the certification message on the majority of its products, in France it was initially only linked to the Lipton Yellow Label black tea product, representing only about a fifth of sales. market. 32 op yo The first wave of the campaign in France relied heavily on a significant public relations effort to educate consumers and customers (i. . , the retailers) to inform them of Lipton’s certification efforts. The team focused on engaging key opinion leaders and journalists with press releases, media and press conferences, and trips to the Kericho estate in Kenya. The brand’s efforts were widely covered in the press and the team felt that they had made significant inroads attracting attention. Print ads with the message â€Å"your tea can make a difference† were placed in travel and cooking magazines and were primarily focused towards current consumers, who tended to be female and over the age of 50.The team’s research had suggested that French consumers were less likely to buy with a Rainforest Alliance seal on the box. This reluctance appeared to reflect a dislike of packaging change rather than any lack of concern for environmental issues, but as a result the team chose a staggered approach to package change, whereby certification was initially only announced on the inside of packs, before being added to the back of packs. Only in 2010 did the seal start to appear on the front of packs. This made it harder for consumers to link advertising support to the product they were seeing on shelves.No tC The campaign received TV support in 2009 and 2010 as well as an online competition , where the winners won a trip to Kenya, intended to engage consumers and bloggers. The limited television advertisements ran Q4 2009 and Q1 2010 and contained scenes of sustainable farms in Africa, as well as information about the Rainforest Alliance (see Exhibit 11). In total, only 10% of the team’s marketing spend went towar ds supporting the Rainforest Alliance message, with the remainder going towards more conventional promotion and support of other innovations.Lipton market share remained flat and awareness of the brand did not increase. Further, the campaign was not successful in linking Lipton to Rainforest Alliance, and Lipton was not seen as more ethical than other tea brands. Do The United States experience The U. S. tea market was an almost â‚ ¬1. 5 billion ($2 billion) market in 2010. 33 Unilever’s U. S. campaign was launched in the summer of 2009 with a particular focus on the brand’s green tea line, where Lipton was second in the market. The mainstream black tea range was not linked to the Rainforest Alliance initiative.Company research had shown that 80% of U. S. consumers wanted to buy eco-ethical brands, although without sacrificing on cost or quality. Only 5% were willing to pay a premium. The message used was â€Å"Your Small Cup Can Make a Big Difference,† altho ugh Unilever also had other messaging for its ready-to-drink beverage line running concurrently. To generate credibility, Unilever allowed National Geographic to create independent TV, print, and online content about the certification, which was published between June and September of 2009.The campaign was also supported by a sponsored trip to the Kericho estate for three online bloggers and journalists, as well as advertising in online and social media. The packaging was changed to include the Rainforest Alliance seal on the front of the pack and information about certification on the pack side and flap. A retail partnership with Walmart and Sam’s Club provided information and positive images at the point of purchase, which helped 10 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. du or 617. 783. 7860. 712-438 rP os t Sustainable Tea at Unilever reinforce percepti ons of health and quality benefits (see Exhibit 13). Analyses done by the marketing team indicated a strong ROI for the â‚ ¬740,000 ($1 million) dollar campaign; however given the size of the business, the investment was relatively small. Unilever did not see any significant effect on overall market share for Lipton or the Rainforest Alliance certified -green tea. Challenges Going Forward op yo A few years after the launch of the certification scheme many of Unilever’s major competitors responded with their own certification programs.Tetley, Twinings, and Yorkshire Tea all made arrangements for some or all of their tea suppliers to obtain Rainforest Alliance certification, while Pickwick and Carmien Tea opted to use UTZ, a certification scheme originating in The Netherlands. Yorkshire Tea announced a goal of selling 100% Rainforest Alliance certified tea by 2015 . 34 Twinings had goals of 100% certification by 2015 for its Everyday brand tea. 35 Tata’s Tetley Tea vo wed to have 100% of its branded tea certified by 2016, a year after Lipton. 6 The surge in demand placed pressure on the Rainforest Alliance, who expected to be certifying close to 20 %-25% of the world’s tea supply by 2015. 37 The Emerging Market Challenge tC With competitors committing to third party certification, sustainable tea at Unilever faced a number of challenges going forward. On the supply side the company had to improve farming practices in some very difficult markets in order to meet the company’s targets. On the marketing side, Leijnse and his colleagues had to decide how to proceed in emerging markets. Could consumers in countries like Turkey, Russia or India be persuaded to value certified tea?If so, how? And how could Lipton maintain a point of difference in countries where competitor brands had followed suit? Reaching 100% Sustainable Sourcing No In 2011, Unilever sourced approximately 25% of its global tea requirement from India; most of it was cons umed domestically. Some Indian tea growers had already achieved Rainforest Alliance certification, but they were generally exporters and Unilever purchased a significant share of their production. Converting smaller domestic producers to sustainable practices presented (at least) two tricky challenges.First, developing an organizational model that could handle training and roll out seemed likely to be difficult. A large proportion of India’s tea was grown by smallholders who sold to local tea factories. However, in contrast to the situation in Kenya, there were no government sponsored tea-cooperatives, and farmers were free to sell to any factory. Some factories did provide extension services and training for their farms, but the quality of these services varied dramatically. Do Second, farming practices in India were in conflict with the Rainforest Alliance over two main issues, child labor and pesticide use.The standards did not permit certified farms to employ anyone under the age of 15, but Indian law and the United Nation’s International Labor Organization permitted the employment of 14 year olds in developing countries. Moreover in India the pesticide paraquat was widely used in tea production. It was quick and effective but it was also highly toxic when ingested or absorbed without protective equipment 38 and it was implicated in many suicides in the developing world due to its low cost, potency, and widespread availability. Paraquat was banned by the European Union but allowed under restricted use in the U.S. 39 Rainforest Alliance standards did not permit its use, and as paraquat use was one of the critical criteria; exceptions could not be made by country. 40 11 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever rP os t 712-438 Unilever could potentially address these issues by introducing an alternative standard tailored to India’s local practices. This standard could act as a stepping stone towards future certification.Unilever would almost certainly need partners to transform Indian tea growing. One option was to work with local NGOs, as they had in Kenya, but another was to consider working with industry wide initiatives. Marketing in India and Other Emerging Markets op yo Getting the messaging right in India would be another important challenge. Tea was the traditional hot beverage of India and the market was estimated to be â‚ ¬1 billionf (RS 64. 6 billion) in size, with Unilever the market leader with a share around 30%. Demand for tea was robust, with the market growing an estimated 12% per annum by value and 3% per annum by volume from 2005 to 2010.The demand for tea had actually outstripped the growth in national tea production, resulting in tea price increases in 2010. 41 Approximately two-thirds of the market, by volume, was sold as u nbranded loose black tea (in bulk). Only one-third of the market was branded tea, which was almost exclusively loose black tea in packets. Tea bags represented less than 2% of the market, but were a growing segment. G reen tea was another high-growth category, particularly in urban areas, because of its perceived health benefits. 2 Almost three-quarters of all tea was still sold through independent small grocers, but supermarkets and hypermarkets had begun to slowly increase their share as rising incomes began to shift consumer buying behavior. Branded coffee shop chains had also become popular, particularly with young Indian consumers, who increasingly viewed tea as an old-fashioned beverage. 43 tC Unilever’s Indian subsidiary, Hindustan Unilever, sold mostly through two major brands, Brooke Bond and Lipton, who had market shares of 19 and 6% respectively in the branded tea market.Its main competitor was Tata Global Beverages who had a market share of 26%, mostly under its T ata Tea brand, which had almost 20% of the market by retail value. 44 But Unilever also faced competition from regional tea companies who took pride in tailoring their blends and preparation methods according to local preferences and who often competed aggressively on price. No Under the Sustainable Living Plan umbrella, Hindustan Unilever had begun to introduce products designed to improve the quality of life of India’s poorest consumers, including new, highly effective hand soaps and a range of water purifiers.The company had also been marketing Surf Excel, a concentrated laundry detergent, which required up to two fewer buckets of water for washing than competing products. 45 The company believed that if the environmental issue was tangible and had an immediate local impact, awareness and appreciation of the issue was generally high. But it was less clear if Unilever could communicate the comparatively distant benefits of sustainable tea farming. Do Michiel Leijnse wondere d whether the company’s recent experience in Turkey could provide any lessons.In Turkey, the tea growing industry played a promine nt role in national cultural identity, and the Turkish team had chosen a message that suggested certified tea offered national benefits, highlighting gains to domestic producers, as well as to the country’s tea crops (see Exhibit 8). Should something similar be attempted in India? He also had to consider how tea could be marketed in emerging markets where there was no tea growing base. One such example was Russia, where Unilever had a 16% share of the almost â‚ ¬3 f Using exchange rate of â‚ ¬1 = RS 69. 6 as of December 2, 2011 12This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 712-438 rP os t Sustainable Tea at Unilever billiong (RUB 115 billion) market in 2010. Tea was a traditional Russian drink con sumed by almost everyone. 46 The market was led by a domestic tea manufacturer, and while volume growth had been limited, sales in the market had been growing at close to 15% since 2005, as consumers switched to more expensive varieties of tea and as the major Russian brands continued to expand the range of their offerings. 7 Could Unilever’s sustainable tea platform serve as the basis for product differentiation that would drive growth and market share in Russia? Or should Unilever forego any promotion of sustainability and instead focus on other ways of competing in the Russian market? Concluding Thoughts op yo With the launch of Rainforest Alliance certification in 200 7, Unilever had started the transformation of the tea industry and improved the lives of hundreds of thousands of farmers. It had also demonstrated that in certain markets certification could increase market share.However, with most major tea manufacturers implementing aggressive certification targets of the ir o wn, it appeared that sustainability might, at least in Western markets, become increasingly more a cost of doing business and less a source of competitive advantage. Unilever needed to decide not only how to ensure that 100% of its supply chain could be sustainably sourced, but also how that message could be communicated in a diverse group of emerging markets. Michiel Leijnse also needed to decide how far he could push sustainability in the brand.If Unilever were to reach its targets under the Sustainable Living Plan, all agricultural raw materials would eventually need to be sustainably sourced, including the paper and board used for the tea packaging and tea bags (see Exhibit 10). Could this be communicated to consumers in a useful way? Do No tC Looking across Unilever, Leijnse wondered if his experiences in tea had anything to contribute to marketing managers grappling with the potential benefits of 100% sustainable sourcing.From a marketing perspective, tea and the Lipton b rand had been an obvious choice to st art talking about sustainability given the tight link between the raw material and the end product. The same could not be said for many of the other raw materials that Unilever purchased. For example , Unilever was the world’s largest buyer of sustainable palm oil and it had committed to ensuring that all its purchases came from sustainable sources by 2015. Consumers did not ultimately buy sustainable palm oil, but rather products such as soap and edible fats that used it as one among many ingredients.Unilever was uncertain whether to create awareness of its efforts among consumers. Moreover, Leijnse had experienced increased attention and criticism from activists since launching the Rainforest Alliance partnership; would the Sustainable Living Plan potentially make Unilever a bigger target for scrutiny? Were there any lessons that could be learned from Lipton? g Using exchange rate of â‚ ¬1 = RUB 41. 4 as of December 2, 2011 13 This d ocument is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Exhibit 1Sustainable Tea at Unilever rP os t 712-438 Unilever Income Statements, 2006-2010 (â‚ ¬ Millions) 2010 44,256 37,637 6,619 15. 0% -992. 86 6,338 14. 3% 206. 97 -413. 94 6,131 1,534 4,597 2008 40,519 21,340 19,179 47. 3% 12,012. 79 1,002. 90 7,166 17. 7% 361. 96 -399. 96 7,128 1,844 5,284 2007 40,116 20,522 19,594 48. 8% 13,790. 41 941. 28 5,235 13. 1% 646. 66 -5,175 1,126 4,049 2006 39,647 20,095 19,551 49. 3% 13,900. 57 982. 07 5,408 13. 6% 181. 87 -4,832 1,146 3,686 3,370 -3,370 3,370 8. 5% 5,284 0 5,284 5,026 12. 4% 3,801 80 3,881 3,881 9. 7% 3,415 1,330 4,745 4,745 12. 0% 1. 46 1. 46 1. 46 0. 86 1. 17 1. 17 1. 17 0. 69 1. 3 1. 73 1. 73 0. 69 5. 12 5. 24 5. 24 0. 72 4. 6 6. 4 6. 4 0. 45 op yo 2009 39,821 33,933 5,888 14. 8% -1,031. 94 5,020 12. 6% 324. 98 -428. 98 4,916 1,257 3,659 4,243 -4,24 3 4,243 9. 6% Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation & Amortization Operating Income Operating Margin Non-operating Income Non-operating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin tC Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net IncomeDividends Per Share Source: Unilever income statements, via Hoover’s Inc. , www. hoovers. com, accessed November 2011. Exhibit 2 Revenue and Operating Income by Divisiona, 2010 (â‚ ¬ Millions) Ice Cream & Beverages Personal Care Home Care Total 14,164 11,318 2,846 20. 1% 8,605 7,881 724 8. 4% 13,767 11,471 2,296 16. 7% 7,726 7,253 473 6. 1% 44,262 37,923 6,339 14. 3% No Savory, Dressing, & Spreads Revenue Operating Expenses Operating Income Operating Margin Source: Company documents. a Some of Unilever’s other brands i nclude Hellman’s, Knorr, Becel, Heartbrand Icecream, Breyers, Axe, Dove, Vaseline, Omo,Do and Surf. 14 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. L'Oreal Reckitt P Danone Nestle Colgate Unilever Revenue Growth by Company (%) CAGR, 1980-2009 9. 4% 8. 5% 6. 9% 6. 0% 5. 2% 3. 8% 3. 5% Source: Company documents. Exhibit 4 Nestle Reckitt L'Oreal Danone Colgate P&G Unilever CAGR, 1980-2009 18. 6% 16. 9% 16. 6% 14. 0% 12. 6% 12. 4% 10. 2% 2000’s 3. 6% 10. 6% 7. 8% 0. 5% 3. 1% 6. 1% -2. 0% tC 1980-1989 37. 5% 24. 2% 23. 4% 31. 1% 16. 0% 17. 1% 1. 5% 1990-1999 21. 7% 7. 6% 34. 7% 10. 3% 23. 0% 17. 7% 10. 6% 2000-2009 3. 4% 16. 1% -3. 1% 2. 4% 0. 9% 6. 6% -3. 4% EBIT Margins by Company (%) 1980 11. 0% 10. 5% 9. 3% 8. 4% 7. 9% 6. 8% 5. 7% No L'Oreal P Reckitt Nestle Colgate Danone Unilever 1990’s 9. 8% 5. 9% 4. 8% 5. 7% 5. 4% 5. 4% 2. 5% Enterprise Value Growth by Company (%) Source: Company documents. Exhibit 5 1980’s 13. 7% 8. 9% 8. 3% 11. 5% 7. 8% -0. 2% 8. 1% op yo Exhibit 3 712-438 rP os t Sustainable Tea at Unilever 2009 14. 2% 20. 5% 25. 2% 14. 6% 24. 0% 16. 4% 14. 8% Margin growth (bps) 326 999 1591 621 1610 963 912 DoSource: Company documents. 15 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Global Average Tea Pricesa, 1960-2010 (US cents per kilogram) op yo Exhibit 6 Sustainable Tea at Unilever rP os t 712-438 World databank, tC Source: Adapted from World Bank data, Global Economic Monitor (GEM) Commodities, http://databank. worldbank. org/ddp/home. do? Step=1=4, accessed November 2011. Do No a Base year is 2000. Prices are averages of Colombo, Kokata, and Mombasa auctions. 16This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copyin g or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Exhibit 7a Ten Core Principles of Sustainable Agriculture Network Social and Environmental Management System Ecosystem Conservation Wildlife Protection Water Conservation Fair Treatment and Good Working Conditions for Workers Occupational Health and Safety Community Relations Integrated Crop Management Soil Management and Conservation Integrated Waste Management op yo 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 712-438 rP os t Sustainable Tea at UnileverSource: Sustainable Agriculture Network, â€Å"Our Standards : SAN Principles,† Sustainable Agriculture Network website, http://sanstandards. org/sitio/subsections/display/7, accessed December 2011. Exhibit 7b Company documents. Do No Source: Agrochemicals and fuels Soils Water Biodiversity Energy Waste Social and human capital Animal welfare Value chain & local economy Training tC 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ten Indicators of Unilever Sus tainable Agric ulture Code 17 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 83. 7860. Exhibit 8 Sustainable Tea at Unilever Rainforest Alliance Messaging in Turkey rP os t 712-438 tC op yo â€Å"As Lipton, Turkey's expert tea brand and responsible tea producer, we want to ensure that our tea will be passed on to our children and future generations. To this end, we are taking the first steps in our ‘Sustainable Tea Farming Project’ by combining our expertise with the passion of the tea growers in Black Sea Region. Our goal is to enhance existing agricultural practices and to generalize the use of those that conserve the ecological balance by raising awareness among more than 15,000 tea growers in the egion about the tea planting and harvesting. We are committed to accomplish this goal in a way that will enable to gain Rainforest Alliance Certifi edâ„ ¢ status for our farmers. Remember that you support our farmers with every cup of Lipton tea you drink. † Do No Source: Company documents. 18 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Educational Poster for Smallholders in East Africa Do No tC op yo Exhibit 9 712-438 rP os t Sustainable Tea at Unilever Source: Company documents (via Rainforest Alliance). 9 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Sustainable Tea at Unilever Unilever Agricultural Raw Materials by Volume, 2010 Do No tC Source: Company documents. op yo Exhibit 10 rP os t 712-438 20 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  prote cted] harvard. edu or 617. 783. 7860. Exhibit 11 712-438 Examples of Rainforest Alliance Advertising tC op yo PG tips (U. K. ): rP os tSustainable Tea at Unilever Do No Lipton (France): Source: Company documents. 21 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. -22- tC No Source: Company documents. Exhibit 12 Do Unilever Sustainable Living Plan Targets op yo rP os t 712-438 This document is authorized for use only by LINDA KELLY-HAYES until June 2011. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Examples of U. S. In-Store Promotions Exhibit 14 Global Tea Production, 2009 (Tons)