DIRECT MARKETING FOR TUPPERWARE

Ashish JhanjeeAbhrajyoti SahaShagun SharmaSourav GhoshNikhil KawaleUmesh SIngh

BUSINESS UNIT IN INDIAMay 1996: Tupperware entered India.Head-Office GurgaonManufacturing plant in Dehradun, which has its own

moulds and machines which differ from every other country.

Over 50 cities in India and close to 2,00,000 housewives are in charge who are not employees but just a retailer level employee with the distributor.

Region wise divided, RSM assigned with required support staff.

HIERARCHY OF LEADERSHIP

There is no specific time period of each level, promotions are based on performance.

Executive distributor

Founder Distributors

Distributor

Super executive manager

Executive Manager

Group manager

Manager

Star Consultant

Consultant

INCENTIVES TO SELL With every promotion after becoming a manager a trip to a foreign

country is fully sponsored to the lady by Tupperware Tupperware premium products are given out as incentives when

targets are achieved 25% for margin for every consultant on MRP Additional commission Manager – 3 to 5.5% on the group sales Executive Manger – 3 to 5.5% on the area sales Distributor gets on the total sales over and above the other

margins and benefits received. All these provided by the company.

TUPPERWARE IN INDIA Asha Gupta, GM, Tupperware Objective: Sales through women

empowerment Goal: Transform women into first generation

entrepreneurs Methodology: Reduce the operational layers

between consumers and marketers while making it easy and simple to track sales

For the SEC A women, Tupperware is not a means to an additional source of income. For them, these products are add-ons for their kitchen and they are happy with it. In comparison, for women in the SEC B, B-, Tupperware is an incentive for additional income.

TUPPERWARE’S DIRECT MARKETING

• The direct marketing methodology is divided into two categories:Multi-Level-Marketing (MLM)Single-Level-Marketing (SLM)

Tupperware essentially follow an SLM model with a compensation-driven structure. It’s a direct-to-consumer approach.

The Tupperware Home Party Plan is their single most innovative and powerful vehicle for direct sales and marketing

THE TUPPERWARE HOME PARTY

The Party Plan:HostessGuestsDealers

3 Types of Parties:Home PartiesClub PartiesRepeat Sales

The core business is to showcase the products in a party culture in which, food is prepared using Tupperware products and show the ease of using it. The party consists of a group of ladies who showcase this to other women of their locality and spread the word.

Assembly is also a vital part. Where in the women, receive their previous orders, punch in new orders and are informed about the schemes and offers for the coming week.

Assemblies are area wise controlled by a distributor/executive manger

Replacement of tupperware products, every product holds a lifetime guarantee and can be exchanged anywhere in the world.

THE TUPPERWARE HOME PARTY

MOTIVATIONAL FACTORS Regularly organised distributors meet. At such get-togethers,

discussions about how the money earned can be used sensibly take place. Because the reality is, the additional income is bound to impact their lifestyle. For example, many of our distributors are widely travelled now. Through Tupperware, many of these women have been to Dubai, Australia, Thailand; those stamps on their passport serve as a great motivator to perform better.

That praise showered on our workers is a great confidence booster. At home, their role is almost taken for granted.

Tupperware builds long term relationships. And this relationship building is intrinsically supported by the structure of the organisation.

Tupperware seasonal and general brochures target all kinds of customers w.r.t the kind of events and festivals.

These brochures are sent both via electronic mail and by post

Sales force team is 2,00,000 people strong who come from 50 cities. A cross-section of this population reveals sharp attitudinal differences in consumers from the South, West, East and North.

The consumers in the South are largely value-driven individuals. And, they are slow to change. But once they adopt a Tupperware product or any other product for that matter, it is for life. This attitude is in sharp contrast to the consumers in the North, who are willing to try. They are people of fads and fashion. Give them something new and they will hungrily lap it up.

In comparison, consumers from the West are open to trying out new things, but the commitment towards a certain brand comes only after they are assured of its quality and value. They are value and functionality driven consumers. Because of their problem-solving attitude, they are in fact, early adopters. Mumbai has a huge population of working women. And because of that women are open to business opportunities.

Working with a consumer in the East is a different experience. They are very price-conscious. According a recent study done by AC Nielson, the Tupperware consumer is totally convinced about the product. But the non-Tupperware consumer is very happy using the Horlicks container and sees no reason to switch to Tupperware.

Now if you tell a Southern consumer that her food item could get spoilt, if she keeps using containers such as Horlicks bottles, she would listen and would be willing to experiment. The same isn't the case in the East.

ANALYSIS OF DATA AND INFERENCES

WHY NO RETAIL MERCHANDISING?When Tupperware began operations in the US, it was through the retail format. But it was not successful. There are were reasons for it. First, the nature of the product itself. Tupperware is a touch-feel

product. Therefore women needed to see it for themselves and then perhaps a purchase could happen.

The second is, when Tupperware sits alongside other plastic products in retail showroom, it competes with poor quality products on price. Moreover, the USP of Tupperware gets lost in the maze of those fancy looking plastics.

By taking Tupperware away from this area and introducing it into the home party circuit, they created an exclusive market for themselves. Here prospective consumers are allowed to feel the product. They sell the product on the power of our demonstration.

SUGGESTIONS The new concept will be the “Smart

Kitchen“. Representatives from Tupperware go

to new recruits and inform/suggest them about how to fill out their new kitchen in the stipulated budget and according to their taste and preferences.

Set up Kiosks Tracking sales of refrigerators,

modular kitchens and renovations Tracking new residential constructions

THANK YOU!