754 Research Methodology

CASE 2: TUPPERWARE: SERVICING THE INDIAN HOUSEWIFE

Tupperware is the world’s largest plastic food container company. Marketing its products in over 100 countries
across the globe, it is today a household name in every corner of the world. The company’s products have been
listed in the Guinness Book of World Records as one of the best inventions of the 20th century.
Tupperware India: Tupperware India Pvt. Ltd is a wholly owned subsidiary of US-based Tupperware
Corporation, the world’s leading manufacturer of high quality plastic food storage and serving containers.
The company started its operations in India in 1996 and has been recognized as the fastest growing market
by Tupperware Worldwide. Its products were launched in Delhi in November 1996, followed by Mumbai in
April 1997 and Bangalore and Chennai in October the same year. Pune, Chandigarh and Hyderabad followed
in 1998.
Tupperware Marketing Strategy: The sales promotions are one of the key focus areas for the company to push
the sales. The company has regular sales promotion programmes for the sales force and consumers. These
promotions are mainly new products sold at special price and various discounts attached to the minimum
order. Also, there are various promotion schemes to push recruiting activity of housewives who serve as direct
selling agents. These incentives are over and above the normal commissions of the channel partners. With the
objective of accelerating Tupperware’s rapid growth and which meant reaching out to a wider consumer base
and increasing brand awareness, the company worked on a strategy that essentially involved going ‘retail’.
New Business Tactics: Some of the marketing initiatives by the company with the objective of widening the
consultant base/increasing consumer awareness, in addition to the party plan system, are as under:
The Caravan Programme: Under the Integrated Direct Access strategy, the Caravan Programme, the first
of its kind by any direct selling company, is an endeavour to increase the brand awareness, generate leads
for recruiting and reaching new customers. The caravan, a display of Tupperware products manned by its
consultants, has been travelling across various cities and states recruiting new people. Each distributor gets
three days to man the caravan, which is then rotated through the other consultants.
The Showcase Programme: In addition, a ‘Showcase Programme’ was initiated in June 2002 and temporary
kiosks were placed at Ansal Plaza mall in Delhi, and Ebony stores in Delhi, Noida and Mumbai. The company
has plans to open similar showcases in other parts of the country as well.

Products
The company classified its products under various categories depending upon the purpose they serve. The
main product lines of the company are grouped as follows:
• Dry Storage – Modular Mates, Canisters, etc.
• Tableware – Bread Server, Butter Dish, Curry Server, etc.
• Food Preparation – Masala Keeper, Magic Flow, Quick Shakes
• Microwave – Soup Mugs, Crystalwave Medium
• Refrigerator – Cool n Fresh Series, Wondlier Bowls, Ice Trays
• Lunch & Outdoors – Tumblers, Lunch Boxes
• Canister – Store-all-Canisters, Oasis Jug
• Classics – Classic Slim Launch, Tropical Cups.
Tupperware India has specially designed selected products tailormade for the Indian homemaker to fulfil
the unique needs of the Indian kitchen. ‘Cinnamon microwave dish’ in dark blue colour keeps in mind the
haldi stains, ‘masala storage box’, which can store up to seven dry spices, and a range of thalis, katoris, roti-
keeper, pickle container and oil containers have already been introduced in the market. The products combine
aesthetics and functionality. They are ingeniously designed offering versatility and convenience. Tupperware
products have won several design awards worldwide. The products are manufactured with 100 per cent food

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grade virgin plastic and offer a lifetime guarantee against chipping, cracking or breaking under normal non-
commercial use. They are light, unbreakable, non-toxic and odourless. They also have special airtight and
liquidtight seals, which lock in freshness and flavour. The products are not only designed elegantly and add
functionality but also add vibrancy and colour to any kitchen and dining table. The products are available in
soothing colours such as red, blue, pastels, and green to match kitchen décor and consumer preference.
Distribution Strategy: Tupperware products are sold to consumers through a direct marketing channel,
the Home Party Plan. Tupperware items are not sold through retail distribution channels. In the Home Party
Plan, consultants predominantly recruit housewives and working women to hold Tupperware parties in their
homes or workplaces. The consultants have a business relationship with the independent distributors and are
recruited by the managers. Tupperware India has 75 distributors, 1500 managers and approximately 35,000
consultants spread across India.
The Home Party Plan is a method of selling products to the consumer using direct selling techniques.
Tupperware pioneered the Home Party Plan. However, other companies also engage in direct selling, such
as Amway, Avon Products Inc., Oriflame and Modicare among others. Tupperware has cultivated the Home
Party Plan into a highly successful method for the selling its products.
Consumers are solicited by hostesses to attend a ‘Tupper Party.’ The consumers normally tend to be friends,
neighbours, or co-workers of the hostess. The hostess is given gifts, commonly referred to as ‘thank you gifts’,
for hosting the party. These gifts vary depending upon the volume of Tupperware products sold during the
party; if more products are sold during the party, a larger gift is rewarded to the hostess.
At the party a consultant or manager or, occasionally, a distributor will show products and their uses to
the consumers. The consumer places order for Tupperware products at the party with the consultant. The
consultant collects the order and passes it on to the managers. Distributors collect the orders from their
managers, consolidate it on a weekly basis and place the order to Tupperware India.
Tupperware distributors are not stockholding distributors and, thus, do not maintain significant inventory.
At most, they keep a few pieces of only the fast moving items. Every Monday, each distributor holds an
‘assembly’. Consultants come to the assembly and put in their orders. The distributor consolidates and places
an order to Tupperware India. After receiving the orders, consultants then deliver the products to the hostess,
who further hands them over to the customers.
The distribution manager is responsible for controlling the inventory levels and in that role works closely
with the marketing team. Tupperware India has 13 warehouses spread across India. The distribution manager
is responsible for maintaining adequate stock in these warehouses keeping in mind the historical demand in
the region and the plan given by the marketing team. He is also responsible for efficient planning of logistics
and arranges for the transportation of goods to various warehouses. The transportation of goods from the
warehouse to the various distributors is arranged by the respective warehouse.
Reason for the Success of Party Plan
• All in all, the Party Plan creates an informal platform for interested housewives to get together and
experience the joy of Tupperware.
• Further, the Party Plan clicks excellently in India because it fits in with the urban and semi-urban culture
of ‘kitty parties’.
Advantages of the Party System are Two-fold
• It does not put pressure on the hostess — she isn’t forced to become a consultant if she does not want to.
• It allows the company to physically demonstrate the utility of its premium-priced products apart from
creating consumer awareness.

Tupperware Distributor – Manager – Consultant Winning Combination

Tupperware follows a single-level marketing channel concept to distribute its products. The various channel
partners in the order are as under
Company → Distributor → Manager → Consultant

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 756 Research Methodology

Tupperware follows the single-level compensation structure where everything earned is performance-
based, right from the consultant to the manager to the distributor.

Channel Partner Remuneration

Distributor
Manager typically operating
with a team of six consultants
Consultant
Basic commission, plus variable sales margin that increases in direct proportion to
the volume of sales.
Standard consultant’s 25 per cent plus a 3 per cent commission on her unit’s sales.
Standard commission structure of 25 per cent based on sales.

The consultants are at the lowest level in the distribution chain, approximately 35,000 in number and spread
across 35 cities. Anyone can become a Tupperware consultant because it is an investment-free opportunity.
They are ‘the Tupperware ladies.’
The next level is that of the Tupperware manager, who is one rung above the consultant and typically
operates a team of six members. She has to hold a minimum of three parties a week, build her team and recruit
one consultant per week (i.e., 52 consultants a year). A consultant can be a part-timer, but a manager needs to
be reasonably career-oriented because she needs to put in at least four or five hours every day towards training
the team, recruiting new consultants and, of course, increasing sales and brand awareness.
The next step up is the distributor, who holds a full-time job. Distributors need to be registered with the
company. Here, in addition to the basic commission, the earnings increase in direct proportion to the volume
of sales. Distributors play an important role in the value chain. They have conduct a weekly meeting with their
entire unit called the ASSEMBLY, wherein the weekly sales and other results are declared. They also motivate
and recognize the sales force based on performance.
The fourth level is Tupperware corporate hierarchy, comprising a strong and well-motivated sales team
headed by the national sales director. The country is divided into four regions and is supported by a regional
sales development manager, sales trainers and sale assistants. The whole team works very closely with the
distributors.
Servicing of the Channel: The managers take orders from consultants and pass it on to the distributors every
Monday/Tuesday and the same is passed on to the company for servicing. The company based on the credit
terms of the distributors supplies the stock to them latest by Thursday. These credit terms are predecided at
the time the distributor gets inducted in the channel and are evaluated in case there is a need to give extra
credit quarterly or annually, whichever is earlier.
There are weekly promotions announced by the company and the same is then communicated to the
distributors. The distributors’ accounts in terms of commission/credit notes for promotions are settled on a
monthly basis.
Need for the Study: The company is growing rapidly and uses the direct selling method to reach its end
customers. The company has never conducted a perception study. This is necessary because Tupperware is
facing competition from Modicare, Pearlpet and Reallife and the results of the study will help it in consolidating
its market position by identifying its strength and weaknesses. Further, it would indicate why and on what
parameters the perception of consumers versus non-consumers is different. This could enable the company
to formulate appropriate strategies to attract the non-consumers.

Case Questions
Chapter 1
1. Tupperware has certain issues that require your expert advice. What kind of research would you suggest
be carried out by Tupperware? Give reasons for your classification.
2. In case you were to expand the scope of research, how would you do so? Explain, in detail.
3. While pursuing this further, what criteria do you advocate the researcher to keep in mind?
4. Formulate a research proposal for Tupperware and include all the relevant sections with clearly defined
justifications/arguments for the same.

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Chapter 2
1. Based on the case, narrate the problems facing the management of Tupperware.
2. Based on the steps defined in the chapter, convert the decision problem into a research problem.
3. Identify all the elements of the problem identified by you in terms of unit of analysis, variables and
the coordinates of the study.
4. Formulate three research questions for the problem and develop the working hypotheses for the same.
Chapter 3
1. Can an exploratory research design be advocated in the above situation? How?
2. Would it be possible to conduct a descriptive research study here? Which one would you recommend
— cross-sectional or longitudinal? Why?
Chapter 4
1. Take a random sample of 30 housewives who use Tupperware products and have almost similar socio -
economic background. Divide the 30 housewives randomly into two groups. Members of these two groups
should be invited to a party at home by consultants . Both the groups have demonstration of Tupperware
products. In the first group an incentive scheme for ordering Tupperware products is introduced, whereas
in the second one , no such scheme is introduced . After 15 days of the party , keep a record of the orders
placed by housewives in the two groups.
(a) Define the dependent and independent variables. What could be the extraneous variables in such
an experiment?
(b) Comment on the internal and external validity of the experiment.


(c) Diagram the experiments.

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 758 Research Methodology

Chapter 5
1. For measuring the constructs under study, design 10 questions using:
(a) Itemized rating scales
(b) Graphic rating scales
(c) Rank order scales
(d) Comparative rating scales
2. Out of Likert scale, semantic differential scale and constant sum rating scale, which scale would you
advocate be used for the study? Why?
3. How will you measure the reliability of the scale identified by you?
4. How will you measure the validity of the scale identified by you?
5. Can you use observations for your study? What would be the limitations/shortcomings of this method?
Chapter 6
1. Based on the inputs of the activities carried out in chapter 7 design three questionnaires for the three
identified groups. Would you devise different questions for the groups under study? Why/why not?
Chapter 7
1. If you were to carry out a perception study of Tupperware users/non-users, how would you define the
sampling universe?
2. If, in a survey it is found that 70 per cent of the residents of DLF phase I and II use Tupperware products, how
large a sample should be taken if we want a confidence level of 90 per cent with an error margin not exceeding
7 per cent.
3. What would be the appropriate sampling design? Justify your answer.
Chapter 8
1. Prepare a code book for the questionnaire attached in Case 7.1 at the end of Chapter 7.
Chapter 9
1. Carry out a frequency distribution analysis for the users and non-users of Tupperware products. (The
required data are given in the data disk).
2. The questionnaire for the study is given in Chapter 7. Now use the items of Question 11 and compute the
average perception score for each individual. Divide this perception score into two groups—those having
a score from 1 to 3 are to be treated as having poor perception and those having a score above 3 are to
be treated as having a favourable perception. Now cross-tabulate this with the demographic variables as
given in the case. Analyse and interpret your results.
Chapter 10
1. You know there are 128 users and 55 non-users of Tupperware products. You can compute the average
perception scores corresponding to each of the user and non-user of the products. Attempt to test the
following hypothesis:
• Is there any difference in the average perception of the users and non-users of Tupperware products?

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Chapter 11
1. You have computed the average perception scores for the users/non-users of Tupperware. Treat this
score as a dependent variable and use each of the demographic variables like type of family, marital status,
employment category, age group, education group and household income as independent variables.
Carry out one-way analysis of variance and interpret the results.
In case of significant result, what further analysis would be carry out?
Chapter 12
1. In Question 2 corresponding to Chapter 11 of this case, you were asked to prepare a cross-table. Carry
out a chi-square analysis to know whether there is any relationship between perception and any of the
demographic variables. In case a significant relationship exists, carry out a further analysis to determine
the strength of the relationship between variables.
Chapter 13
1. Using the questionnaire given to you in Chapter 7, add the following question to it:
How satisfied are you with your Tupperware products?
Very satisfied/satisfied/neutral/dissatisfied/very dissatisfied.
2. Take Question 11 as the independent variable and the above stated question as the dependent variable

and conduct simple linear regression analysis.
3. What are your findings? Why do you think you got such a result?

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CASE 7.1

TUPPERWARE INDIA PVT. LTD.

Tupperware is the world’s largest plastic food container company. It markets its products in over 100 countries across
the globe and is today a household name in every corner of the world.
Tupperware India Pvt. Ltd. is a wholly owned subsidiary of the US-based Tupperware Corporation, the world’s
leading manufacturer of high-quality plastic food storage and serving containers. The company started its operations
in India in 1996 and the country has been recognized as the fastest growing market by Tupperware Worldwide. Its
products were launched in Delhi (November 1996) followed by Mumbai in (April 1997) and in Bangalore and Chennai
in (October 1997). Pune, Chandigarh and Hyderabad followed in 1998.
Starting off with just 12 products, Tupperware India today sells over 70 products that meet Tupperware’s
stringent international quality standards. At present, the company sells its products in over 35 cities through a sales
network comprising over 35,000 consultants, 1500 managers and 75 distributors. Backed by a committed and
dedicated staff, region offices in all metros, Tupperware India has the pride of being the fastest set-up operation in the
history of Tupperware. The company has been growing so fast that today it is approximately three times larger than
any other company in its products’ category. The company’s turnover as of now is over US $11.5 million.
A full-fledged manufacturing facility is today the nerve-centre of Tupperware’s Indian operations. Located in
Hyderabad, this plant employs state-of-the-art technology to manufacture over 65 products, each of them meeting
stringent quality standards laid down by Tupperware’s international norms. Set up in a record time of three months,
this facility could soon go in for an expansion to meet the ever-increasing demand for Tupperware. The moulds used
to make Tupperware are hand-tooled stainless steel and these moulds are common for all countries and move in
different countries as per the requirements.
The company classified its products under various categories depending upon the purpose they serve. The main
product line of the company is grouped as follows:
• Dry storage – Modular mates, canisters, etc.
• Tableware – Bread server, butter dish, curry server, etc.
• Food preparation – Masala keeper, magic flow, quick shakes
• Microwave – Soup mugs, crystalwave medium
• Refrigerator – Cool n fresh series, wondlier bowls, ice trays
• Lunch and outdoors – Tumblers, lunch boxes
• Canister – Store-all-canisters, oasis jug
• Classics – Classic slim launch, tropical cups.
Tupperware India has specially designed select tailormade products for the Indian homemaker to fulfill the unique
needs of the Indian kitchen. ‘Cinnamon microwave dish’ in a dark blue colour keeps in mind haldi stains, ‘Masala
storage box’ which can store up to seven dry spices, and a range of thalis, katoris, roti-keeper, pickle and oil containers
have already been introduced in the market. These products combine aesthetics and functionality. They are ingeniously
designed to offer versatility and convenience. Tupperware products have won several design awards worldwide. The
products are manufactured with 100 per cent food grade virgin plastic and offer a lifetime guarantee against chipping,
cracking or breaking under normal non-commercial use. They are light, unbreakable, non-toxic and odourless. They
also have special airtight and liquid tight seals which lock in freshness and flavour. The products are not only designed
elegantly and add functionality but also add vibrancy and colour to any kitchen and dining table. The products are
available in soothing colours such as red, blue, pastels and green to match kitchen décor and consumer preference.
Tupperware India, at present, faces competition from stainless steel utensils and low-end plastic products both
available at retail outlets across India. However, with increasing awareness of high-end food storage containers, the
company will soon see itself up against more intense competition. Already companies like Modicare, Cutting Edge and
Real Life have entered this segment, albeit with lower prices.
The company is growing rapidly and uses a direct selling method to reach its end customers. An empirical study
was undertaken to understand the perception of consumers and dealers (consultant).

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 Attitude Measurement and Scaling 195

The study assumes significance since the outcome of this research would help Tupperware identify the areas in
which the perception is poor and would, therefore, be able to identify the problem areas so as to take remedial action.
This is necessary because Tupperware is facing competition from Modicare, Pearl Pet and Reallife and the results of
the study will help it in consolidating its market position by identifying its strengths and weaknesses. Further, it would
indicate why and on what parameters the perception of consumers versus non-consumers is different. This could
enable the company to formulate appropriate strategy to attract the non-consumers use its product.
The objectives of the study were:
1. To understand the perception of Tupperware product users about the company. Specifically we want to answer
the following questions:
(a) What is the profile of the users of Tupperware product?
(b) What is the awareness level (both aided and unaided recall) of the users of Tupperware products?
(c) Is the perception different for a user belonging to a nuclear or a joint family?
(d) Does the perception vary across marital status?
(e) Does the perception vary across professions?
(f ) Does the perception vary across age groups?
(g) Does the perception vary across education levels?
(h) Does the perception vary across income groups?
(i ) What are the underlying significant factors of the perceptions of users?
2. What is the perception of the non-users of Tupperware products about the company? Specifically, we would
attempt to answer the following questions:
(a) What is the profile of the non-users of Tupperware product?
(b) What is the awareness level (both aided and unaided recall) of the non-users of Tupperware products?
(c) Is the perception different for a non-user belonging to a nuclear or joint family?
(d) Does the perception vary across marital status?
(e) Does the perception vary across professiones?
(f ) Does the perception vary across age group?
(g) Does the perception vary across education levels?
(h) Does the perception vary across income groups?
(i ) What are the underlying significant factors of the perceptions of non-users?
3. Is the overall perception different for user and non-user of the Tupperware product?
To carry out the objectives, a study was conducted. The following questionnaire was used for the purpose.

Questionnaire for User/Non-user Research

1. What type of storage food container do you use in your kitchen? (Please tick one or more)
(a) Stainless Steel
(b) Plastic Products
(c) Glass containers
(d) Any Other (Please specify)
2. (a) In case you use plastic containers for storage, are you aware of the company/companies manufacturing
it?
Yes

No
(b) If yes, name them ___________________
___________________
___________________
___________________

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 196 Research Methodology

3. Which of the following plastic container manufacturing companies are you aware of? (Please tick the
appropriate box, you may tick more than one.
(a) Cutting Edge
(b) Modicare
(c) Real Life
(d) Tupperware
(e) Any other (please specify)

4. In case you have ticked Tupperware, please tell us as to how did you come to know about the product
‘Tupperware’ (Please tick the appropriate box, you may tick more than one)
(a)   Advertisements
(b)  Party plan
(c)   Internet
(d)   Women’s magazines
(e)   Word of mouth
(f)   Any other (please specify)

5. Do you use Tupperware products?

Yes
No
(If the answer is No, you will still be having some perception about Tupperware’s products, its quality and
price. Therefore, please move to question 11 directly)

6. If answer to above question is yes, did you

(a) Buy the product
(b) Received as a gift
(c) Both

7. If you bought the product as mentioned in the question 6 above, did you buy
(a) Through party plan
(b) Telephoning the dealer
(c) Both

8. How often do you buy Tupperware products?

(a) Once a month
(b) Twice a month
(c) More than two times in a month

9. How much money do you spend in a month on the purchase of Tupperware products? _______________

10. In your last purchase which of the following items were bought by you. (Please tick as many as you like)
Dry storage
Tableware
Food preparation
Microwave containers
Refrigerator containers
Lunch and outdoor containers
Canister
Classics

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11. Given below are some statements, you are requested to state your degree of agreement/disagreement on
each of the statements as mentioned below on a 5-point scale.
Statement Completely Disagree No Opinion Agree Completely
Disagree Agree
A Tupperware products are made with the state-
of the-art technology
B Tupperware products are ideal for gifts
C Tupperware products are not available in
different sizes
D The products are available in attractive colours
E The products do not provide good value for
money
F I feel proud to serve food to my guests in
Tupperware products
G My peer groups do not use Tupperware
products
H The products are not easily available
I The designs of the products are such that they
occupy a lot of shelf space
J The products provide a good look to the kitchen
K The spices kept in Tupperware containers
retain their original flavour for long
L Tupperware products are very expensive
M Tupperware products offer a lifetime warranty
without any requirement of proof of purchase
N The products go with my lifestyle
O Tupperware products are for daily use
P The products require special cleaning agent
Q Tupperware products retain stain marks (e.g.,
turmeric) after cleaning
R Parents feel very safe while their children
handle the products
S The products usages are well demonstrated in
the home party
T The company provides timely information on
new products
U The products are not air/water-tight
V The products are inconvenient to use
W I have no inhibition in using products in a large
gathering of guests
X Tupperware keeps adding new products to its
range to suit the kitchen requirements
Y The shape of the products are very eye-
catching
Z Tupperware products are quite sturdy
aa The products are non-toxic and odourless
ab The products are very heavy in weight to carry
from one place to another

12. You belong to a

Nuclear family
Joint family

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 198 Research Methodology

13. Marital status

Single
Married
Widow/divorced

14. If married, are both of you working or only one

Both
One

15. In case you are working, you are employed in

Private sector
Public sector
Self-employed
Govt. service

16. You belong to age group

20 – 30 years
31 – 40 years
41 – 50 years
51 and above

17. Your education

Less than graduation
Graduate
Postgraduate and above

18. Your monthly household income

Up to `15,000
15,001 – 30,000
3,0001 – 45,000
45,001 and above

19. Do you or your spouse own the following:

(a) Credit card Yes No
(b) Four wheeler Yes No
(c) House Yes No
(d) Club membership Yes No
(e) Microwave oven Yes No

Please note that in the question no.11 statements numbers a, b, d, f, j, k, m, n, o, r, s, t, w, x, y, z, aa are favourable
statements. The remaining are unfavourable statements.

QUESTIONS
1. Indicate the type of measurement (nominal, ordinal, interval or ratio) which is being used in each of the above
questions.
2. Identify the questions which will be relevant for each of the objectives of the study.

Note: The case is based on a project report ‘Perception Study of Tupperware India Pvt. Ltd,’ by Gautam Sareen, Raman Chawla and Sandeep Bansal,
participants of PGPM (2001–04), International Management Institute, New Delhi.

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