Tupperware – a Leading Brand in Kitchenware Industry

UNIVERSITY OF BAHRAIN

College of Business Administration

MKT264 – Intermediate Marketing

2015/2016 – Semester II

Tupperware – A Leading Brand in Kitchenware industry

Author:                                                                

Zahra Shakir

20147125

Tupperware Brand Corporations is a global direct seller of innovative products across 7 brands in the kitchenware, beauty and personal care industries. For the purpose of this report, I have chosen one of the widely known brands under this Umbrella of brands: Tupperware.

Tupperware, the Global food-storage container maker and distributor, began its journey in the 1950’s when Earl Tupper founded the Tupperware Company in Massachusetts. Since then, it has been sold over to Rexall, its HQ moved to Florida, the Company renamed and its presence expanded outside of US and into around 100 countries; emerging as a leading brand in the kitchenware industry.

Commercialization of Tupperware

Tupperware’s products are distributed worldwide primarily through the “direct selling” channel under which products are sold to consumers outside of the traditional retail store locations. Tupperware products are mostly sold directly to distributors, directors, managers and dealers (collectively known as “Sales Force”) throughout the world. Where distributorships are granted, they have the right to market Tupperware products using parties and other non-retail methods and to utilize the Tupperware trademark. Vast majority of the sales force is independent contractors and not employees of Tupperware.

Tupperware has plants that manufacture its products located in the following countries: Japan, Korea, China, India, Greece, Belgium, France, Portugal, South Africa, Brazil, Venezuela, Mexico and the United States. Each plant makes the items that are indigenous to their region.

Their business model is similar to that of franchising, in the sense that they create business leaders (a.k.a distributors) in every city/country that they are in.  These distributors are the ones who appoint the sales force and train them. This model is easily replicable everywhere.

How do the distributors make the sell? THE PARTY PLAN

To explain simply, brand representatives/dealers are appointed and trained by distributors. These dealers then approach potential hosts to throw an event (party) in their home. The dealer will give a product demonstration and explain pricing and delivery at the host’s party. The host will receive in some combination a gift, a share of proceeds and/or discounts. Orders are taken from attendees of the party, and then the dealer is almost always compensated by commission. The dealer may also recruit others to be a dealer, and that is another form of revenue.