GOOD AFTERNOON

TUPPERWAR
E 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 1940s 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 Tupperwares
products and usages were demonstrated to the
customers. Which justified the reasons for the high cost of
Tupperwares products.
Improvement made my Brownie WiseShe 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 childs

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 didnt 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.

Companys 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 Ps

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
MOTIVATIONAL
ORGANIZATION

SUPPLIER

DISTRIBU
TER

CONSUMER

AMWAY

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 Ps 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.

1.
2.
3.

4.
5.
6.

7.

The innovation that the company adopt to expand its market

and become profitable are
Direct selling and party plan
Tupperwares network structure of three levels.
Its decision on the distribution system to change to a multi
warehousing system.
Its marketing strategy of 3 Ps product, party plan and people.
Decision of customizing products to the Indian kitchens.
Decision of reducing prices on few of its products in order to
attract middle class customers
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.

Companys 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 Companys 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.