GOOD AFTERNOON

TUPPERWARE IN INDIA PRESENTED

BY GR-01

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.

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.

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

Their strategy was to save money, time, cabinet space.

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

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

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.

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.

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.

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.

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.

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.

TUPPERWARE

DISTRIBUTER

MANAGER

DEALER

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.

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.

AMWAY

SUPPLIERAMWAY MOTIVATIONAL ORGANIZATION

CONSUMER

DISTRIBUTER

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

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.

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.

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.

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.

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.

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.