2. About Tupperware
Year 1938- Earl S. Tupper founded the Tupperware
company.
It started by using mold parts for navy signal lamps and
gas masks. Its products were durable and easy to handle.
Year 1946- designed the renowned air tight, liquid proof
lid.
Year 1946- products were displayed in hardware and
department stores, which failed in generating demands.
So they started the strategy to educate the customers
about the quality and properties of the product.
3. Late 1940’s – Brownie Wise a Sales women who was
selling household products for Stanley Home Products
was hired by Tupperware company.
She introduced the unique “Party Plan” method of
marketing.
Year 1948- First home party for Tupperware was
conducted.
Home Party- Here what happened was that
Tupperware’s products and usages were demonstrated
to the customers. Which justified the reasons for the high
cost of Tupperware’s products.
Improvement made my Brownie Wise-
She removed all Tupperware products from retail outlets
and marketed them through the party plan method which
was introduced by her earlier.
4. Women were the prime sellers and consumers for the
company.
Products of tupperware- Tupperware always designed its
products keeping in mind the consumers taste, preferances
and changing trends:
plastic carrying cases for women.
designed toys for children keeping in mind each stage of a
child’s development.
designed containers which could be exclusively used for
microwaves.
TupperWave Stack Cooker cooked meals for four in 30
minutes and for those in a hurry Microsteamer cooked meals
for two in 10 minutes.
contemporary designs
5. Tupperware always looked for new products and newer
markets. It set up manufacturing units in 14 countries .
When it entered a country it appointed a distributor from
another country waited for her to grow and then
promoted others from her team as distributors.
When its profit increased it expanded its business into
various lines such as beauty control, jewellery, apparels
6. Tupperware in India
It entered in India in the year 1996. started its operations from New
Delhi.
Appointed 15 distributors in the 1st 12 months. Its initial focus was on
utility rather than style. These 15 were given training on a 14 week
designed training program.
It launched 11 products in India , which were useful rather than
decorative.
Tupperware India added new products at regular intervals and dropped
those which didn’t sell well.
Direct selling and party plan both was implemented.
Tupperware standards were maintained by selecting units in Bangalore
and Baroda
7. Within four years of operation in India, Tupperware India
became the fastest growing market for the company in
developing countries.
Company’s Turnover- in 1999 it was 400 million and by
2000 it was Rs 570 million.
By 2002 Tupperware India had 75 products and more
than 40,000 sales people and a reach in 31 cities.
8. The Tupperware Model
It adopted a three- tire structure Where as Amway another
direct selling company followed a model where the distributors
were the center of the model.
In case of Tupperware the network structure had three levels.
First the lowest level was the Dealer then was the Manager
and Finally at the top level was the Distributor.
The network of Tupperware in any country had 90% women
employees , whereas in India it was 100% women employees.
As said by the executives that Tupperware only offered food
storage products in India and kitchens in India are primarily
looked after by women, it was easier to promote products
through women. And they felt that Indian women were not
comfortable working with men.
9. Compensation
Performance based compensation was given
Dealers earned 25% commission on sales.
Manager made profit on sales, training
Distributer made profit on sales of the entire
distribution team.
10. Marketing Strategy
Its marketing strategy is the three P’s
1. Product
2. Party Plan
3. People
Product – Tupperware products carried a lifetime
guarantee. Any damage to the product could be
replaced at any point of time anywhere in the world.
Party Plan- Tupperware used a direct selling method
called the “party plan”. In this the women dealer
approaches a lady and asks her to host a party at her
place, the investment in the party was borne by the
hostess.
11. The Tupperware women demonstrates the benefits and
usages of the products to the invitees to the party. And
the hostess gets a free gift of tupperware product.
This method allows the Tupperware products to be
demonstrated physically and their utility explained and by
this process they justify the reason for the higher costs of
the products.
People- Tupperware believed that there business
success was through people therefore Brownie had said
“built the people, and they will build the business”. They
had reward system for employees. They organized three
social events per month.
12. Question 1.
It was different from other direct selling companies. It adopted a
three- tire structure which made operations easier for the
company.
In case of Tupperware the network structure had three levels.
First the lowest level was the Dealer then was the Manager and
Finally at the top level was the Distributor.
The network of Tupperware in any country had 90% women
employees , whereas in India it was 100% women employees.
As said by the executives that Tupperware only offered food
storage products in India and kitchens in India are primarily
looked after by women, it was easier to promote products through
women. And they felt that Indian women were not comfortable
working with men.
14. Performance based compensation was given
Dealers earned 25% commission on sales.
Manager made profit on sales, training
Distributer made profit on sales of the entire distribution
team.
15. Where as Amway another direct selling company
followed a model where the distributors were the center
of the model.
The compensation plan followed by Amway resembled a
pyramid structure with the people at the top (top
distributors) earning the most.
They earned commissions on the sales of the
distributors under them.
The distributors at the base of the hierarchy earned the
least.
A distributor at the top could earn even without selling
Amway products through the chain below.
16. AMWAY
SUPPLIER
MOTIVATIONAL
ORGANIZATION
DISTRIBUT
ER
AMWAY
CONSUMER
17. Question 2
Tupperware came up with an innovative method for selling its
products the “party plan”
Direct selling was adopted.
It also used an effective marketing and advertising and
promotional strategy which is, its marketing strategy is the
three P’s Product, Party Plan and people.
In case of advertising and promotion it used traditional methods
to advertise and promote its products in India through popular
magazines like Elle, Femina and parenting
Joined with P&G , HLL, Whirlpool
18. ADVANTAGES
Reached to individual customers.
Women accepted it as part time job
This method allows the Tupperware products to be
demonstrated physically and their utility explained and by this
process they justify the reason for the higher costs of the
products through party plan.
Their focus on customization, product, people earned them a
recognition
With the involvement with other companies helped in the
promotion of Tupperware products in India.
19. Disadvantages
Disadvantages came on the part of employees
who wanted a full time job.
Party plan requires the hostess bear the costs.
Advertising and promotions created a
suspicion that company is taking direct orders
and reducing their commissions
This type of party plan and direct selling did
not attract the competent personnel.
20. Question 3.
The innovation that the company adopt to expand its market
and become profitable are
1. Direct selling and party plan
2. Tupperware’s network structure of three levels.
3. Its decision on the distribution system to change to a multi
warehousing system.
4. Its marketing strategy of 3 P’s product, party plan and
people.
5. Decision of customizing products to the Indian kitchens.
6. Decision of reducing prices on few of its products in order to
attract middle class customers
7. Its advertising strategies through Elle, Femina and
Parenting. And cross promotional strategies with P&G,
Whirlpool and HLL.
21. The success of the company in India can be seen as:
Within four years of operation in India, Tupperware India became
the fastest growing market for the company in developing
countries.
Company’s Turnover-
in 1999 it was 400 million
2000 it was Rs 570 million.
By 2002 Tupperware India had 75 products
More than 40,000 sales people and a reach in 31 cities.
Tupperware was gaining fast recognition in India.
The company did not face any major competition from other
plastic wares in India due to its quality products.
According to analysts India offered a huge market for
Tupperware and the companies growth rate in India facilitated
accelerated investment in the country.
22. Question 4.
Tupperware is placed in the highly competitive direct
selling industry because Company’s Turnover- in 1999
was 400 million and by 2000 it was Rs 570 million.
SOME FACTS REGARDING ITS GROWTH
By 2002 Tupperware India offered more than 75 products,
had more than 40,000 sales people and a reach in 31
cities.
It comes under the category of Direct Marketing and can
be the ideal flexi time job.
Tupperware - All in the party!
Extraordinary design for everyday living is what the
Tupperware motto says.
23. For almost 50 years, Tupperware has been
making it all possible in homes around the
world - not just providing products, but giving
women rewarding careers too.
Today, Tupperware is one of the world's
leading direct selling companies, with nearly
one million independent sales people bringing
Tupperware's premium food storage
containers, serving products, microwave
cookware and children's toys to life in more
than 100 countries.
