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Tupperware brands are famous for its premium storage containers and kitchenware aside
being one of the top direct selling consumer product companies in the world. One of the
most marketable products for Tupperware Brands Corporation comes from Indian market.
Their unique system Party Plan of marketing, give them the competitive edge among the
kitchenware and direct selling companies in India. The products of Tupperware is very
innovative and special because it always designed its products closely according to their
consumers requirement, this includes their preference, taste and trends.
This case analysis aims to explore about the direct selling industry in India, to provide a
thorough analysis of the Tupperware India customers and its competitors, as well as
Tupperwares unique model and to provide a clear overview of Tupperwares competitive
advantages on its marketing strategy.
Lastly, recommendation was made for Tupperware in order to move forward within their
existing marketing concept to remain competitive in the industry.
2 TABLE OF CONTENTS
1 EXECUTIVE SUMMARY.................................................................................................2
3 INDUSTRY AND COMPANY OVERVIEW.......................................................................4
3.1 TUPPERWARE........................................................................................................4
3.1.1 Tupperware India..............................................................................................4
3.2 DIRECT SELLING INDUSTRY.................................................................................4
4 COMPETITOR AND CUSTOMER ANALYSIS.................................................................6
4.1 COMPETITOR ANALYSIS.......................................................................................6
4.1.1 Direct selling companies...................................................................................6
4.1.2 Kitchenware companies....................................................................................6
4.2 CHALLENGES FACED BY THE COMPETITORS...................................................6
5 SWOT ANALYSIS........................................................................................................... 8
6 TUPPERWARE MARKETING STRATEGY.....................................................................9
6.1 TARGET MARKET...................................................................................................9
6.2 POSITIONING..........................................................................................................9
6.3 MARKETING MIX..................................................................................................10
6.3.1 THE 3Ps OF TUPPERWARE.........................................................................10
6.3.2 FACTORS BEHIND SUCCESS OF 3Ps.........................................................11
6.3.3 THE DIFFERENCE FROM MODELS OF OTHER DIRECT SELLING
COMPANIES................................................................................................................. 12
6.3.4 CUSTOMISATION OF PRODUCT..................................................................12
6.3.5 MEDIA CAMPAIGN AND CORPORATE SOCIAL RESPONSIBILITY.............13
7 COMPETITIVE ADVANTAGE........................................................................................15
8 RECOMMENDATION....................................................................................................16
8.1 MOVING FORWARD.............................................................................................16
9 CONCLUSION.............................................................................................................. 17
10 REFERENCES.......................................................................................................... 18
3 INDUSTRY AND COMPANY OVERVIEW
3.1 TUPPERWARE
Earl Silas Tupper founded Tupperware in 1938. He invents and designed a durable and
airtight with non-spillage type of container made of high quality plastic material. He faced
some challenges in marketing his product and his big breaks arrived when he hired Brownie
Wise. She then removed all Tupperware products from retail outlets and later marketed
Tupperware with its unique kind of marketing method called Party Plan or Tupperware
parties.
Those key players in the market believes that India do have some potential, with its large
population and the increasing income per capita, this indicates that an attractive opportunity
for companies to proceed with expansion plan.
The first company to begin their network marketing in India is Oriflame International back in
1995. The next to follow suit is Avon and Tupperware in 1996. These companies faced many
challenges since many Indians have a very negative perception on direct selling because
they are not familiar with the concept. The Indians look at direct selling as unwanted
intrusion into ones privacy. Modicare, the local network marketing also started in 1996.
Mainly the fastest product categories for direct selling companies are:
nutrition and wellness
home kitchen
Beauty products
The benefits that comes from this industry is that it gives a positive impact on socio-
economy. Most benefits is to women since it helps them with financial independence
although Indian women has yet to achieve equal status with men.
Source: www.trendingtopmost.com
Source: www.mlmlegal.com
Tupperware is ranked in number 6 in terms of top ten of direct selling companies.
5 SWOT ANALYSIS
STRENGTH WEAKNESSES
Established plastic kitchenware and Not possible to reduce the cost of
cookware brand with strong market material due to complicated
presence. manufacturing process and hard to
Costly but long lasting. Can lasts up produce.
to minimum of 10 years if well
Some people prefer to use glassware
maintained and no damaged.
or metal type for their kitchenware
Famous for their durability. Lifetime and cookware, as they are sceptical
guarantee on all Tupperware product to use plastic based type especially
except damage due to own when cooking using microwave.
carelessness or insect bite.
The social consciousness that relates
Light and easy cooking because
to this is some have the perception
product is light and easily cleaned. that plastic materials contain
Made of high-grade plastic material chemicals hence they do not want
and single moulded piece, no joints these chemicals goes into their food.
anywhere in the product so lessen
the possibility of breakage.
Always had a new innovative product
all the time.
High customer loyalty
OPPORTUNITIES THREATS
Most of the other kitchenware Afraid of low demand due to pricing.
competitors of Tupperware also There are many cheaper alternatives.
having high cost in production. Many competitors copying
The kitchenware competitors have Tupperware products ideas as
weak distribution system since Tupperware are quite innovative in
Tupperware has a systematic their design.
warehousing system.
Bias towards their competitors.
- Tupperware fares better than its
direct selling competitors because of
the party plan.
- They compensation plan better
compares to other direct selling
companies.
6 TUPPERWARE MARKETING STRATEGY
6.2 POSITIONING
Source: Quora
Figure 3: Perpetual mapping of Tupperware market positioning among its kitchenware
competitor.
Tupperware was positioned as slightly high priced but with high quality among its
kitchenware competitor in India.
Product They follows their global standard of quality despite of high cost. They even
localised their product by custom made into local requirement.
Party plan Their unique method of selling party plan is a huge success since it attracts
the attentions Indian homemakers as they will exchange recipes during party plan. Although
the hostess borne the cost of the party but dealer will reward them with Tupperware gift.
From there Tupperware women will demo the benefits and usage of their products to the
invitees.
People Tupperware always believe in their people. Their reward and compensation
system is attractive. In addition, every month they will organise social events for their
employees.
The first would be lowest level, Dealer, and subsequent level towards the top is Manager
and top level is Distributor respectively. The dealer able to earn according based on their
sales.
6.3.3 THE DIFFERENCE FROM MODELS OF OTHER DIRECT SELLING COMPANIES
Amway compensation plan resembled a pyramid structure with people on top (top
distributors) earns the most. They earned commissions on the sales of the distributors under
them. Those at the lowest hierarchy earned the least while the distributor on top can earn
without selling the products.
Tupperware made the right decision to design their product according to local needs.
Product design is based on local consumer feedback for example they coloured its product
to match the needs and taste of customers. One of the examples is dark colours to hide the
turmeric stains. The product localisation via innovative and design has become crucial
catalyst to the growth of Tupperware in India. The most obvious is the reverse innovation of
Eco friendly bottles that is a global blockbuster.
The importance for customisation of products by foreign direct selling companies in India
listed per below:
India being one of the largest consumers in the market after US and China
Customers only start to patronise the brand only if the product suits to their needs.
Companies will face slower growth as their market not able to reach additional
consumer groups. They cannot depend much on existing consumers.
Companies can easily find local supplier and use third party source since their
product is customised.
Some products have to be localised since it is the main requirement of local
consumers due to its lifestyle and cultural upbringing.
Despite of the importance of customisation there is a dark side for Made in India. Most of
Indian consumers is very cost sensitive meaning having a high quality product is not major
requirement for them. Hence quality can be reduce by using lower grade quality that is
available.
What makes Tupperware different from the rest is that they are not adapting this type of
strategy but instead maintaining their quality standard. The product guarantees and quality
they provide is the justification for this.
6.3.5.1 Collaborations
The joint collaborations such as with other FMCG companies doing cross promotional
exercise works well.
6.3.5.2 Campaigns
Tupperware have initiated many campaigns especially related to women empowerment.
Example is She Can You Can in 2012. Every month Tupperware India will showcase
different campaigns to boost up the products. For example in Feb 2017, they promote
Eat.Cook.Love by promoting containers to store up Valentines cake in which they also share
the cake recipe in their website.
ADVANTAGES DISADVANTAGES
7 COMPETITIVE ADVANTAGE
Tupperware appears to maintain some competitive advantages; firstly, the companys brand
name has superior recognition, which indirectly serves as a strong factor in customers
preferences. The brand name serves as a strong motivating factor in attracting old and new
customers. Consumer perceptions of the company are positive and their extensive
experiences in direct selling industry are valuable. Tupperware applies party plan concept,
which build customer loyalty. Besides it allows Tupperware to build strong distribution
network by popularising its Tupperware Parties by sharing of recipes, cooking advice and
health tips among Indian housewives.
Tupperware has made the right marketing strategies and analyses their market well thus not
much recommendation can be made. Their success stories are quite an example to other
competitors. The only proposal that can be made is, fully utilise on social media account for
example, having Tupperware party on Facebook live.
9 CONCLUSION
Tupperware managed have achieve many successes such as changing the consumer
behavior. It is no surprise that within their first four years in India, they became the fastest
growing market for Tupperware Brands in a developing countries.
Their position among their competitors in the plastics kitchenware industry and also direct
selling industry is quite strong. Their unique selling method and also marketing strategies are
the few factors that given them the edge in the market for years to come.
Over the years, their evolved to be in the mind brand for Indian household.
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