In India

Introduction Facts
Background
Sales and distribution

Tupperware in India
Tupperware Model Marketing Strategy Customized product Advertising and Promotion Future Outlook

Issues Q&A

 The Case study is based on Tupperware India. The company is a plastic product manufacturer for the consumer market all over the globe. The case study gives a general Idea of Tupperwares foray into India.

It also gives information about Tupperware model, Marketing Strategy, sales-distribution and the future outlook.

In 1938, Earl S. Tupper of U.S. founded Tupperware. The Company focused on consumer market after the second world war.

The first products were bell tumbler and the Wonderlier Bowl. (a round bottomed bowl with a lid) Tupperware also designed the renowed air-tight, liquid proof lid in 1946. In same year the introduced their products in hardware and department stores.

(Sales & Distribution)

In 1940 Brownie Wise hired by Tupperware. In 1946 Tupperware introduce plastic products in hardware and Departmental stores which failed to generate demand. In 1951 Brownie Wise was appointed as Vice President of Tupperware and She introduced a Party Plan. Company concentrated on women as their prime sellers and consumers. Tupperware always designed its products keeping in mind consumers test.

Tupperware set up manufacturing units in 14 Countries and operated in nearly 100 countries.

After increase in profit of a company they expanded its business into various lines such as Beauty Control ( Beauty care, skin care and nutrition supplement products) Jewellery Apparels

 Tupperware entered into India in November 1996. They started operation from New Delhi.

They appointed 15 distributors in the first 12 months.

Tupperware initially launched 11 products in India. The company first launched its product range of dry food storage and then more trendy tableware

 In April 1997 Tupperware began operating in Mumbai and then expanded rapidly. Tupperware India added new products at regular intervals and dropped those which didnt sell well.

Tupperware sourced its products from Bangalore-based tafe unit- innovation polyplast- which was set up by a Canadian Plastic technologist of Indian origin.
Within from years of operation, Tupperware India became the fastest growing market for the company in developing countries.

 Kanwar Bhutani was appointed as Managing Director of Tupperware India in 2000. In 2000, the company set up a manufacturing plant in India with an investment of $ 2mn. In the year 2001 company generated its first profit, and by 2002, the company achieved a growth rate of 40% per annum.

 The network of Tupperware in any country had 90% women employees, whereas in India, it had 100% women employees. Company followed a single-level compensation programme which resulted in Improve of performance by the distributors. Dealers earned 25% commission on their sales and they could also earn on training their own recruited dealers.

The company followed a pyramidal structure of earning (like Amway). Distribution System.

 Companys Marketing strategy use three ps.

The Tupperware products carried a life time guarantee.

The second P stood for Party Plan.

The third P stood for People.

 The management of Tupperware India organized at least three social events per month for its employees. The company did not face any competition in the India market. However, the products were not readily accepted by the Indian consumers, because of their high Price.

 Tupperware customized products according to Indian kitchen. They launched- Masala Magic, Spice-it-up bowl, Microwave re-eatable. They colored their products to match the needs & tastes of Indian consumers.

The products were premium priced.

They justified the price on the basis of quality of the products.

 In 2000, they reduced prices of few products to attract middle class consumers. Introduced Classics a range of products, priced 25% less than regular ones. e.g- Personal salt & pepper, Travel Twins. In 2002, launched children products as Tupperkids printed with English alphabets to promote as learning tool. They promoted products through parties & word of mouth.

Later promoted with conventional methods.

 Advertised in popular womens magazine like Elle, Femina & Parenting. In 2000, formed an alliance with FMCG major P&G to conduct campaigns in Chennai & Chandigarh. In 2001, cross-promoted by P&G using Pringle chips which remained crispy in Tupperware products.

In 2001, Tupperware & Whirlpool had a Caravan joint promotion in which the products were demonstrated using Whirlpool refrigerators & microwaves.

 In 2002, formed alliance with Hindustan Lever Limited, a brand of Vanaspati, Dalda was sold in Tupperware jars. Their sales went up by 20% after campaign with P&G.

They set 2 kiosks at Shoppers Stop in Delhi & Mumbai which were increased to 16 in one years time.
In 2002, the company formed alliance with Thermowave articles, Eagle flasks Industries Limited.

 According to the case- Tupperware had expanded its operations to more than 35 cities till 2002. Company had competition with steel containers manufacturers. They educated the consumers regarding the products. In 2003, they started targeting middle class consumers to enter rural markets.

 Company hinted that they would continue partnership with IDSA. India offered a huge market for companies growth which facilitated investment in the country. Direct selling was gaining popularity in India.

According to current research-Tupperware 2ndquarter net income rise is noted around 12%.

On Wednesday July 27, 2011, 12:23 pm EDT

 As per 2011, Tupperware expects an adjusted profit of $4.23 to $4.33 per share , with sales increasing by 8% to 10%. Currently projects earnings are of $4.15 per share. (an increase of 7.4%).

The company has elaborated a bit on its dividend policy, it is planning to evaluate its rate in the first quarter of each year, beginning in 2012.

 In the Indian Direct selling market, structure and nature of competition and its influence on the entry of new players is very tough. Challenges faced by a direct selling MNC in the unique market of a large developing country.

Question

Answer

 Question-1
Tupperware, a direct selling company, adopted a unique network structure and compensation model when compared to its competitors n the direct selling industry. How does Tupperwares model work and how does it differ from the models of other direct selling companies?

 Question-2
Tupperware came up with an innovative method for selling its products, the Party Plan. It also used an effective marketing and advertising and promotional strategy. What are the advantages and disadvantages of such strategies?

 Question-3
Discuss the strategies adopted by Tupperware to adopt its products pricing and promotion to suit the India market. What kind of innovations didi the company adopt to expand its market and become profitable? How far have these changes contributed to the success of the company in India?

 Question-4
By the early 2000s, these were many direct selling companies operating in India. How do you think Tupperware is placed in the highly competitive direct selling industry?

THANK YOU!!!