A Study of Distribution Channel and Marketing Communication of Tupperware India

........................................... 10 Media Decision ................................................................................................ 4 Sales Force Design ................. 3 Marketing Strategy ............................................................................................................................................................................................................................................................Table of Contents Introduction..................... 5 Marketing Communication ................................................................................................... 2 Key strategies ..................................................................................................................................................... 2 Sales and Distribution..... 3 Marketing channel .............................................................................. 7 Message Decision .................................................................................................................................................................................................................................................. 12 Recommendations ................................. 13 References 15 1|P ag e ............................................................................................................................................................................................

Key strategies The key strategies that Tupperware followed to gain the competitive position in one of the largest and most exciting emerging markets (from being global to local) are: Focus on a core business/category Entering a new market in the core business area a company brings in innovation. expertise and support from the parent company  Convert Indian consumers from traditional metal food containers to plastic ones that catered to local food habits  Build a strong distribution network by popularizing "Tupperware Parties" Adapt products but maintain global brand integrity Companies adjust their product line to meet local needs in emerging markets but without losing their brand cachet. Tupperware was able to  Get the attention. set up plants in India to cater exclusively to the Indian market. resources. and learning from other markets. 2|P ag e .  Tupperware maintains lower costs by producing locally. and tie-ups in India with top brands such as Samsung. partnerships with Bollywood production houses. called Tupperware India Pvt Ltd (TIPL). advertorials. Tupperware is rated among India's top 3 percent of brands across all categories and segments by µSuper brands¶. The company's expansion in India also fuelled the growth of the overall kitchenware market. Understand local costs and leverage local talents  Tupperware instead of entering competing with the domestic companies in the low cost points offered products at attractive prices. Also it offered 25 products that are customized for Indiankitchen use. the weight of your global organization. Indian) so that it can get superior customer insights.  Tupperware localized its pricing strategy. of their 100 products. a well-respected and independent organization. which increased from 6.7 billion rupees in 2003 to over 12 billion rupees in 2008-a 12 percent annual rise (report by Euromonitor). has set up its subsidiary in India. US. making its products more affordable to more Indian customers.Introduction Tupperware Corporation.  Tupperware realized local talent (TIPL MD Asha Gupta. From media tie-ups.Tupperware has gone on to become a 'top of mind' brand for many middle-class households across India's main metros. locally developed models to cater to Indian customers. It plans to focus on rural areas after it further builds its presence in smaller cities and towns. according to a survey undertaken by The Nielsen Company in 2008. Tupperware has kept its brand resonating in consumers' minds in urban areas where it is still developing the market. Resource to potential Tupperware's marketing efforts have been directed at resourcing to the potential of the market through multiple initiatives. P&G or American Express. Since then it is growing at a compounded annual growth rate of 30%.

the usage and the reasons for higher cost of its products. Tupperware in kitchenware market represents µwholesome¶. µkeeping it fresh¶ and µPremium Mass¶. To have the positioning as a high quality wares helping in leading active and healthy lives.  Influences the firm's pricing strategy.  Performs sales. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. distributors. advertising and promotion. Roles of marketing channel in marketing strategies:  Links producers to buyers.  Affecting product strategy through branding. etc. cooking advice and health tips among Indian housewives(augmentation and emotional appeal). policies. Tupperware products were. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer). In party plan marketing. Chain of Confidence invites women to share in the immeasurable rewards of selfconfidence and ensures the next generation of women will benefit from this knowledge.Sales and Distribution Marketing channel A marketing channel is a set of practices or activities necessary to transfer the ownership of goods. as such. creating invaluable connections that last a lifetime. The demonstration is a way chosen by the company to communicate to the customers about the quality of the product and its uniqueness. offer credit. Tupperware has imbibed the Chain of Confidence Campaign in its direct selling model. A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers. and the payments generated by them flow in the opposite direction (from consumer to the vendor). "Tupperware Parties" involved sharing of recipes. which consists of all the institutions and all the marketing activities in the marketing process. Party Plan&Chain of Confidence Campaign methods by Tupperware Tupperware came up with its unique µParty plan Method of marketing¶ following its failure to cater to the consumers because of its high price and lack of awareness about the product when introduced in hardware and department stores. Tupperware opted for direct marketing. retailers. willingness to stock and customizes profits. and to move goods. maintain. An alternative term is distribution channel or 'route-to-market'. from the point of production to the point of consumption and. home party is conducted and the Tupperware products and their uses were demonstrated to consumers. install. agents. 3|P ag e .

Tupperware tied up with Big Bazaar to set up touch points to establish contacts with consumers.5L in each kiosk with a strategy of increasing the sales by 10 ± 12%. aquasafe bottles etc. A comprehensive training program and a new incentive scheme for conventional managers like a paid trip to Malaysia were later announced to encourage the dealers. The direct marketing company also entered into negotiation with Hindustan Lever Ltd (HLL) to start a crosspromotion exercise in the Northern. Products launches Initially TIPL came up with 25 products customized for Indian kitchen and it targeted top-end customers. It also proposed to have tie-ups with food companies selling flour. 4|P ag e . TPIL came up with Indianized products in order to improve its market share in the country. Tupperware tried to have tie ups with FMCG companies and consumer electronic brands to promote its product range. Tupperware India introduced its products in a few new shopping malls as part of its strategy to achieve a turnover of Rs206 crore in the next two years. After successful test marketing the companies took out the alliance further. In years TIPL launched many products to suit modular kitchen ± microwave wares. The products were given special offers during festival occasions ± discounted rate. Channel Management Decisions The dealers organized product demonstration at parties where the guests order for the products and the hosts are given free gifts. Eastern and Western Regions of India. Tupperware Worldwide also has alliance with some consumer durable companies like Whirlpool. they tied up for more joint promotions. awareness about the company and promoting its products. Tupperware also tied with Sahara India to increase brand awareness and its customer base through bid-n-win scheme. Tupperware consented a cross promotion deal with home appliances company Whirlpool of India as well.This is a part of its integrated direct access strategy.Marketing Strategy Tupperware India initially launched its products in Delhi. The company intended to market its products through distributors in these malls. Tupperware containers were bundled with HLL¶s Dalda refined oil packages.Tupperware is planning to launch products for rural India with an intention to expand its presence from 59 cities to across the country. The initiative is aimed at increasing recruitment. Realizing the potential. The company spent INR 2. Kiosks Tupperware opened kiosks in shopping malls to create brand awareness and to reach potential customers who are unable to attend Tupperware parties. The Tupperware organized roadshow at Kolkata as a part of promotional deal with the white goods major Whirlpool.the company ventured into 14 other SEC A cities and widened its operations to another three SEC B and C cities by 2000. It also launched a low-price range called Classic. Since both P&G and Tupperware had top-end market customers. cooking oil and tea to sell the products in Tupperware packaging. The company entered into the eastern market as well. Corporate tie ups and cobranding The company has tied up with Procter and Gamble (P and G) in Chennai and with Pringle chips in Chandigarh for cross promotion scheme.

But road shows might raise doubt about the product¶s superior quality level among the niche customers. as it is against the principles of direct selling Fitness TIPL exhibits Reward Power on their dealers and distributors by giving them free gifts and taking them for free trips(to Malayasia). TIPL also adapted Indian designs like the Jaipur blue pottery designed containers for dry storage and it formed their unique level of products. Tupperware Corporation has succeeded in gaining a strong market in India. Tupperware hosts are rewarded with free products based on the level of sales made at their party. Their option of cobranding with HLL and P&G is a successful strategic move as it has improved their customer base. A Tupperware party is run by a Tupperware consultant for a host who invites friends and neighbors into his or her home to see the product line. The business of direct selling is very different from other businesses because. it has catered to right kind of sales force and customers. and other community groups. Sales Force and their 5|P ag e . These practices suit the Indian market conditions where it is easier to get a job done through reward than through punitive measures. Further 99% of the distributors are housewives who get motivated by the reward power exerted by the dealers. here. with rewards for hosts. Parties also take place in workplaces.When TPIL noticed that some of their distributors are using retail outlets to sell their products to meet the sales target it terminated the distributorship of these errant distributors. It also exhibits coercive power on failure to meet the norms of the firm (distribution). Initial entry into the top-end market with the customized products and selected cities (SEC A) developed the awareness about the credibility of the product and hence venturing into other cities and launch of new products was well accepted by the consumers as the credibility reached them through word of mouth. TIPL with its Classic models have got access to enter the rural market ± a low price model that never compromised on the quality but the design. TIPL went in for selective distribution which improved the visibility of its products. the level of sales depends very much on how the members of the Sales Force feel about the product and the promotion. schools. Sales in this type of business depend a great deal on the size of the active productivity. WOM has been the biggest strength and the reason for the success of the Tupperware products. Unlike in UK where they tried serve to A & B group customers with the sales force belonging to C & D group. Sales Force Design Tupperware is sold mostly through a party plan.

S. New Products are planned very early on to prepare for theirlaunch date. Tupperware's sales force is organized in a tiered structure with consultants at the bottom. the direct sellers were traveling salesmen. has some college or maybe even a four-year degree. Legacy Executive Directors at the top level. the direct selling industry is unique. So. and more generous commission and rewards for their consultants. with disappointing results. In countries with a strong focus on marketing through parties (such as Germany and Australia/New Zealand). In the early years. women comprised the majority of direct sellers. managers and star managers over them. Tupperware party in India The iconic food storage container is enjoying a surge in popularity in fast-changing India and the concept of the Tupperware party has been rekindled. when and how. In recent years. The implementation of a strategy takes anywhere from 6 to 12 months. Tupperware in North America has moved to a new business model which includes more emphasis on direct marketing channels and eliminated its dependency on authorized distributorships. This transition included such strategies as selling through Target stores in the US. There is a weekly replenishment plan based on store inventory and sales. as the business model changed to a party plan model. Direct selling varies greatly when compared to the retail industry. To understand it. and Superstores in Canada. The sales sharply rise and fall depending on how the Sales Force members feel about the product and/or the promotion. In recent years. the emotions of the Sales Force members play a very important role.000 consultants and 81 distributors. If you sell a product at Wal-Mart. each one can choose which products and offers they want to push. sales are primarily made through the party. and online advertisements. How does it differ from the retail industry? Here. Direct selling started in early 1900s. and works part-time. Tupperware states this hurt direct sales. When an expansion is planned for additional space or stores. there are an estimated 300 Tupperware managers who each host 10 to 15 parties every week. are made ahead of time. The Sales Force members are independent contractors. This has allowed Tupperware more flexibility. the average direct seller is a woman between the age of 35 and 54. In New Delhi alone. though they are supported to some extent by catalogs. Today.In most countries. Its active sales force comprises 55. The party is initiated by the Sales Force member. one has to know what the direct selling business is and how it works. the sales model is a party plan where someone arranges a party and invites his/her friends and contact people to the party as prospective customers. But this timeline is significantly different in direct selling businesses: Promotional planning is 6|P ag e . plans about which products will be promoted. and next various levels of directors. Tupperware's market share and profitability continue to decline. Tupperware has done away with distributorships in the U. However. How the Sales Force members feel about a particular product or promotion pretty much determines their success. it is done in advance as well. When it comes to forecasting. At Tupperware. television.

There is also a blog on Tupperware so that also contributes to make people aware about various products of company plus reviews in blogs increase credibility.   90-Day trend based on channel. as such. there are just Sales Force members who enter and leave the business on a dailybasis. 7|P ag e . New Products are planned based on what the Sales Force wants. cooking advice and health tips among Indian housewives (augmentation andemotional appeal).  120-Day trend based on the TAP formula. Our customer.done only 24 hours in advance based on the best indicators! Indicators include how many parties are planned for the next week and beyond and the number of active team members (Sales Force) we have. our customer strategy changes. we incorporate the feedback we get from the Sales Force. There are no Tupperware stores. Marketing Communication Marketing communication mix used by company includes mainly: Direct marketing. which may increase or decrease the number. Activity refers to the percentage of people within team members who are active and selling. Productivity refers to how much each member sells. As such. Tupperware products were. the "A" is for activity. home party is conducted and the Tupperware products and their uses were demonstrated to consumers. Calculation of Sales Forecasts Sales forecast are prepared by using a formula called TAP: The "T" stands for team members. the forecast is based on the average sales utilizing the first three methods. They have launched µParty Plan Method¶ and µChain of Confidence´. and the "P" is for productivity. changes constantly. instead. Personal selling&Word of mouth marketing The most extensively used communication approach by company. Team members represent the Sales Force the organization has in any given time. many of them don't sell on a regular basis. Initially. Party Plan Method: (A mixture of informational as well as transformational appeal) Tupperware came up with its unique µParty plan Method of marketing¶ following its failure to cater to the consumers because of its high price and lack of awareness about the product when introduced in hardware and department stores. One month they may be very active in selling.  Year-to-year comparison based on TAP formula. based on what is occurring within the Sales Force. "Tupperware parties´ involved sharing of recipes. In party plan marketing. Our customer strategy changes daily. but that may not be the case in another month. After these parameters are estimated. Next. four different methods are used to create a forecast. Make adjustments based on whether the emotional response of the Sales Force and/or the consumer is favorable or unfavorable. which is our Sales Force. Majority of the team members work part-time.

It is Involving and Implicit. The Chain of Confidence also provides an incredible support team of women all with a vested interest in personal and financial success. Tupperware recognizes the extraordinary source of strength women derive from one another which enables them to feel confident and secure in their ability to succeed. the quality. the usage and the reasons for higher cost of its products. Tupperware in kitchenware market represents µwholesome¶. Chain of Confidence invites women to share in the immeasurable rewards of selfconfidence and ensures the next generation of women will benefit from this knowledge.Tupperware gives every woman the flexibility to set work schedules. Centre of web portal is women. Chain of Confidence Campaign: A Transformational appeal Tupperware has imbibed the Chain of Confidence Campaign in its direct selling model. Tupperware opted for direct marketing. it generates interest in women. own a business. 8|P ag e . Tupperware¶s Chain of Confidence honors women across the globe and the profound life altering impact they can have on one another. Events and Promotions: (A mixture of informational as well as transformational appeal) Company promotes its product by being sponsoring certain events involving mainly women. µkeeping it fresh¶ and µPremium Mass¶.These demonstrations helped the company to explain to the customers. earn extra income and have a wide circle of influence. Events and promotions done by company in 2010 are shown below. Celebrating women and the powerful bond of friendship that connects them together. creating invaluable connections that last a lifetime. True to its virtue. And various rewards are motivations for women. So. To have the positioning as a high quality wares helping in leading active and healthy lives.

Publicity Company has been in news for its continuous growth despite recession. Sales promotion 9|P ag e .So from above it is very clear that how company is promoting its product by being part of various events. Plus increase in reach of company to farther area has made it continuous news maker. It has Dramatizing effect as well as provides some credibility. Company has been associated with Movies like µBillu Barber¶ and µGolmaal 3¶ and so was in news for quite a sometime.

Colours used are eye catching plus if you see the concession rate it is incentive for buyers as well as an invitation. Educate 10 | P a g e . robustness and are aesthetically designed. Any damaged product (cracks or breaks) could be replaced by same/similar new Tupperware product from any place in the world. Advertisements Company¶s focus on advertisement is not much visible. according to a survey undertaken by The Nielsen Company in 2008. Message Decision Tupperware has gone on to become a ³top of mind´ brand for many middle-class households across India's main metros. The 3 E s of Tupperware Enlighten To share insights & provide products and knowledge that makes life simpler and more enjoyable for families. This is because company¶s main source of communication is direct communication. The message that the company wants to drive is that Tupperware products depict quality. So company is reaching masses in a different way. Company¶s advertisements mainly have informational appeal about product. So whenever they launch any new product they mainly show the product and its benefits and price etc. From ages their focus id their product.Company has been continuously coming up with various sales promotions like shown below. The Tupperware products carry a lifetime guarantee.

Product range:With hundreds of products for every range. Tupperware has imbibed the Chain of Confidence Campaign in its direct selling model. For over 60 years. cracking or peeling under normal noncommercial use for the lifetime of the product. taste and experience the new Tupperware lifestyle . This unique.amazing products. money and effort while leading active and healthy lives. educating and empowering women across the globe. Empower To better the lives of women by giving them the confidence to live with respect in the society and becoming independent. making a difference to the lives of millions through its innovative storage products and extremely attractive business opportunity. Legacy: What started as an innovation in 1942 now has become an inseparable part of many families. Chain of Confidence invites women to share in the immeasurable rewards of self-confidence and ensures the next generation of women will benefit from this knowledge. The major categories are:  Aquasafe  Canisters  Dry Storage  Food Preparation  Freezer  Fridge Smart  Lunch 'n' Outdoor  Microwave  Refrigerator  Serving  TupBaby Inspiration center:That's the Tupperware Party experience. one may visit any Tupperware Business Center or call Tupperware Brands consultant for a free replacement. When a Tupperware product shows a defect in material or function. In recent years. Chain of confidence:Enlighting. simple solutions that enable customers to save time. Tupperware has made tremendous inroads into becoming a true global entity. Tupperware has been creating a niche for itself in the business world. Message Strategy Lifetime Warranty: Tested in extreme conditions and built to last long. the Company¶s mission and passion to enlighten.To provide smart. earn extra income and have a wide circle of influence. educate and empower customers and their families tops the priority list. interactive party offers the opportunity to see. really long. The Chain of Confidence also provides an incredible support team of women all with a vested interest in personal and financial success. consumers are spoilt for choice. creating invaluable connections that last a lifetime. simple 11 | P a g e . Buying with confidence is assured with Tupperware products that are guaranteed against chipping. delicious recipes and smart. own a business. Tupperware gives every woman the flexibility to set work schedules. Despite the success and astounding growth of Tupperware Brands.

com/watch?v=EWajv4gcNs8&feature=player_embedded Tupperware is also marketed in online media such as 12 | P a g e . sharing recipes. variety of products. To compete more effectively. at the same time. Tupperware advertises though social network medium such as Facebook.http://www. maintaining a "premium mass" image. as seen in its state-of-the-art plant in Dehradun. new product releases. Tupperware has done that.youtube. there's a lot to enjoy at a Tupperware Party! It¶s party time! Smart companies like Tupperware adjust their product line to meet local needs in emerging markets but without losing their brand cachet. its sustainability story. a host or a guest. recipe lists.facebook. Tupperware has localized its pricing strategy.  It also conducts online quizzes related to recipes and distributes prizes  It uploads testimonial videos by women who have used Tupperware products and other promotional videos Tupperware promotes its products by having different videos describing its products on youtube. It is interactive in the sense that users can upload their own recipes. It has more than 90 videos which talk about being eco conscious. which caters exclusively to the Indian market. Tupperware art and design. but.solutions to improve the consumers¶ life. has not compromised on quality. making its products more affordable to more Indian customers. It maintains lower costs by producing locally.com/pages/Tupperware-India/294670044329?v=wall&filter=2  It releases a number of consumer flyers. Striking this balance is a critical success factor in emerging markets like India and China where customers aspire for a certain brand status but at "good enough" quality and affordable prices. they are advertised in magazines through which they can reach a wider female audience such as  Elle  Femina  Parenting Internet and online media Tupperware has unveiled an all new Tupperware India website in September 2010 through which it conveys most of the information about its rich heritage. Whether one is a consultant. Plus what a great opportunity to exchange ideas and make new friends. to achieve the required coverage and number of exposures in a target audience. Magazines Since women are the majority purchasers of Tupperware products. Media Decision Media selection is the process of choosing the most cost-effective media for advertising. etc http://www. vintage collection photos in the space where they can upload photos.

Tupperware India is targeted towards SEC A and SEC B women and mothers in the 30 plus age group. Tupperware is the only direct selling company in India that got associated with in-film branding. Tupperware also associates with certain campaigns such as ³UNICEF Awaaz Do´ campaign through which it does both marketing as well as sale of products.in/tupperware-modern-kitchen-fridger-items-iid-41215945 Newspapers Tupperware advertises in all national and regional newspapers about its existing products and more so when there are any new product releases. We are family. They adopted the product placement strategy which is explained in detail below. Tupperware felt Kajol. Television Ads The company launched a television commercial to coincide with the release of the µWe are family¶ film to ride along the hype associated with a Karan Johar and Kajol film.http://hyderabad. Alternative Advertising Outdoor campaigns Tupperware conducts campaign of lunch series in select locations such as Big Bazaar in metro cities. It also conducts festive campaigns. the movie¶s heroine represents its target audience and saw their brand fitting into the storyline of the film. Recommendations 13 | P a g e .olx. plastic tubs seem to be everywhere which are Tupperware moments. Product Placement In Karan Johar¶s Bollywood remake of Hollywood hit Step mom.

This led to them to invest heavily on developing IT infrastructure to help its sales force focus on thing that they are best at doing. which meant Tupperware needed resilient technology with the capacity to process orders in big batches  Corporate communication to sales force is another key challenge that Tupperware faces.it makes a pleasant pit stop in their day. Getting the Indian sales force used to these new technology will be another huge task. Jaipur designed wares ± exclusive stores will give the customers a wide choice to choose from. the ability to make their own messages on a chocolate bar wrapper or just something unexpected . which provides them ease of access to information and also a personal mail for corporate communications. The premier customers may not be satisfied with this kind of approach. microwave utensils.  Tupperware should focus upon mass media to cater to large masses and create awareness about their products  They should plan more parties in order to use the power of word of mouth  They can also go for Co. different sized containers. Though catalogues give information about the products. This power of Entertainment can be utilized to make communication more interesting 14 | P a g e . entry into low price models. This can be implemented in India since the mobile penetration is much more as compared to internet. This may also provide an opportunity to know the customers demand/ necessity and come up with more innovative products. It has more than 3200 followers in Facebook and people get to know about Tupperware products and parties and contact details of Tupperware distributors. There was a period when Tupperware lost sales because of its in efficiency in its internal IT infrastructure. maybe they'll listen to a voice mail. TIPL operates in Kiosks in many shops.com/ exclusively for its sales force. It¶s very easy for the sales force to get demotivated when the information and proper communication are not available to them. lifts their emotions and potentially gives them something to talk about with the brand at the center of the discussion. an interesting story.tupperware.creation and thus use the power of involvement  People don't mind a joke. For people who don't read e-mail every day. Proactive steps have to be taken to address these issues  A related challenge was that distributors usually submitted several orders at a time.  Co-branding though increase the visibility.  From analyzing the above media through which Tupperware reaches its consumer base we can clearly see that the social network media works very well for Tupperware.  With the company growing and the sales consultants became successful in recruiting more and more people to the business. Tupperware has created http://my2. Entering into corporate tie up ± gifts could improve its visibility and improve its business. with repeated buying customers may prefer to have wide options to choose from so that they may buy mew products the utility of which they might not have realized while looking at the catalogue. this may also reduce the shipping cost and also bring in new customers who may wish to try out the products. instead it could start exclusive Tupperware stores in shopping malls. it may hamper the image of the quality of the wares especially when it comes with low preferred products. they ended up facing so much paperwork at the top that they no longer had time to perform the strategic work of selling and recruiting. The shops should be run by the distributors. or for people who don't listen to their voice mail right away. maybe they'll read a text message on their cell phone. Even product placements helped Tupperware to reach out to entirely new set of audience. With the increase in the number of products ± models. Similar is the case with displaying the product in roadshows.

asp?id=27801&menu_url=publications_resul  Tupperware in India (2011. January 30) Retrieved from http://www.icmrindia.com/bainweb/publications/publications_detail.htm  Background Information on Tupperware Corporation (2011. January 30) Retrieved from http://www. January 30) Retrieved from http://www.asp everywhere (2011. January 30) Retrieved from http://www.³Direct selling as the next channel´ Journal of Consumer Marketing 44-46  Campbell O (2008).referenceforbusiness.html  Tupperware Home Parties and the Jubilees (2011.References  Duffy D.L.org/casestudies/catalogue/Marketing/Tupperware%20in%20India-Marketing.pbs.com/history2/96/Tupperware-Corporation.org/wgbh/amex/tupperware/peopleevents/e_parties. (2005).³Forecasting In Direct Selling Business: Tupperware's Experience´The Journal Of Business Forecasting 19-20  Davis.html 15 | P a g e . Tim R V (1994) ³The Distribution Revolution´ Strategy & Leadership 46-47  Tupperware ts.bain.

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