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Topic History of tupperware Tupperware in India Introduction to Tupperware microwave products Microwave range of products with prices. Demand of the microwave range of products Demand and supply analysis Strengths and weaknesses of tupperware Demand forecasting Competitors Conclusion
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History of company:
Tupperware Brands Corporation is based in Orlando, Florida and started operations in 1946. In partnership with Sales Consultants worldwide, Tupperware reaches consumers through informative and entertaining home parties, special customer contact programs in malls and retail environment and other convenient venues.
Tupperware Brands is a family of eight leading brands including Nutrimetics, Avroy Shlain, BeautiControl, Nutrimetics, NUVO, Fuller Cosmetics, NaturCare and Swissgarde. The Company offers rewarding business opportunities to all women with a dream and become successful while desire to working from home.
Tupperware in India:
Tupperware is one of world's leading direct selling companies with the largest women network, marketing premium food storage, preparation and serving items. 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. Tupperware started its operations in India in 1996 and is a household name today. The Tupperware Party Tupperware Plan method of selling is a unique and extremely successful model of selling adopted by Tupperware. Through this unique selling method, Tupperware has recorded remarkable acceptance and success in India. Most marketers would agree that the diversities of the Indian market warrant a truly Indianised approach. In a country where change is accepted gradually, Tupperware has moved with due deference to consumer trends but has also pioneered new ones in storing and serving. Its products are renowned for their high quality and dependability. The approach, however, was not easy. The idea of plastic as an effective cooking and storing medium was nearly alien to the Indian housewife. This Was a major hurdle but the able Tupperware Sales force has successfully overcome this challenge. Today, Tupperware’s reputation has trickled into most households. Normal multi-level marketing by companies.
The company has introduced 88 products (from Tupperware's International range) in the Indian market and they are available across the country. Tupperware is also a member of Indian Direct Sell to the hi ling Association (IDSA). Tupperware was basically in five markets, primarily in Mumbai, Delhi, Chennai, Bangalore and Kolkata, when we started. It was only in the main cities and was not a part of the satellite towns. They stayed in that way for two and a half years and then they added more markets. Over the past eight years, they are now present in over 40 cities and have a workforce of 55,000 consultants in India. They have now 85 distributors. Five years ago, they had 40 distributors. They have doubled the turnover and have just moved over Rs. 100crore. Now, that the momentum has picked up. The prospects are very bright in terms of turnover growth, expansion of workforce and expansion of new markets.
Range of products:
Tupperware aims at enriching the lifestyles of its consumers. The entire Tupperware range of products provides a one-stop solution for all food storage, food preparation, microwave, lunch ‘n’ outdoors, refrigerator and serving requirements as well as a special range for Kids. Tupperware products are made from 100% food grade virgin plastic, they are stylish and elegant, light-weight, non-toxic, and odour-less and come in beautiful soothing colours which can compliment and brighten up every Indian home and kitchen. The USP of Tupperware product lies it’s their special airtight and liquid tight seals, which lock in freshness and flavor.
Products of Tupperware:
• Dry storage • Food preparation • Microwave • Refrigerator • Freezer • Canisters
• Classics • Lunch and outdoors • Tupper kids • Clear and pure range • Serving range
Manufacturing process of Tupperware product:
Tupperware products are produced at its only plant in India which is situated at Hyderabad. The manufacturing process is most important because
manufacturing passes through various stages .The material used to make Tupperware products are called “Virgin plastic”. These are specialized plastic. Firstly the virgin plastic is delivered in pea-size plastic pellets, which then flows through the vaccum lines then they are stored in a tall tower like storage system known as “Silo storage “, from here it is transferred to plant hopper where mixing of colour and colour concentrated pellets are used, then the mixture is heated, melted and forced into a mould to shape it into different products. The product which is made is of a single plastic pellets, then it passes through injection moulding machine where the moulding of product is done and the products are made according to their ranges. After the final product is out, the supervisor inspects the product thoroughly and then sends it to printing area where the finished product is given the final touch and some printing work like name of the company, model no. etc. is done. At last the product is stored in warehouse and supplied as and when required through distributors and agents.
Introduction to Tupperware microwave products:
In today’s fast lifestyle every person does not want to spend more time in the kitchen. This has given rise to the microwave culture, which provides easy cooking and clean up. Microwave Tupperware especially is quite widely used because of its light weight for most of the cooking task. Tupperware product gives you the utility of re-heating as well as for cooking process. Hence there are two main ranges in Tupperware, where in one deals with just the heating and other range deals with cooking. This quality house wares are made for the way you live.
MICROWAVE RANGE OF PRODUCTS WITH PRICES:
Crystalwave souper 1 cup Rs 450/Heat And Eat 1 Cup Rs 470/-
Crystalwave Divided Bowl 1 Litre Rs 365/-
Rock And Serve Rs 1305/-
Multicook with accessories 3.3 Litre Rs 1305/-
Crystalwave 600ml 1 cup Rs 450/-
Idlitray 1 tray with spoon Rs 145/-
Multi cook: A multi function product that allows you to cook, steam, strain, reheat and serve. With the convenience of microwave cooking. Self-
venting Cover for even steaming and keeping the right moisture balance. The strainer fits in the container and has handles on both sides for easy lifting. Has a self-venting cover. The domed shape of this cover makes the steam/liquid coming from the food/vegetables stay on the cover and will not drip down onto the food. Footed base allows for even heating in the microwave by allowing maximum air circulation around the container. Hence this product is widely in use. Crystal Wave: Crystal Wave Divided Bowl is especially useful for heating and serving an appetizing meal from the microwave oven at any time. There are The Round Shape and size will fit into most microwave ovens with a rotating base 3 Divisions so that three varieties of food can be kept and reheated. Idli tray: The Idli trays come with perfect pore/holes which are ideal for steaming and do not allow the batter to drip and evenly steams the idli batter. The idli trays also come with a convenient top handle which allows you to easily lift up the idli trays once Idli is sturdy so that the trays do not slip. Microwave friendly and goes in easily with the Tupperware MultiCook range. Rock n’ server: This is a container mainly for reheating small quantities of food in the microwave. It has a unique rocker vent which allows steam to escape.
Demand of the microwave Tupperware range of product:
What is demand? Demand: It is a quantity of goods and services that customers are willing and able to purchase during a specified period under a given set of economic condition.
Conditions for demand:
• Price of the good • Availability • Prices of competing goods • Price expectations • Income • Tastes and preferences • Advertising Our market survey was some what based on these conditions. These are the essential conditions from which a demand graph and its interpretation can be made.
Demand and supply analysis:
For demand and supply analysis of microwave range of Tupperware we had surveyed 25 people as customer which included 6 people – Affluent class 10 people- Upper-middle class 9 people –Middle class 5 people- agent / distributor
Customers view on the product:
Awareness of microwave
Awareness of Microwave products is less compared to other products of Tupperware. Microwave range of products are new in the market as compared to other ranges. If we see in affluent class, all the 6 people are aware, in upper-middle class 9 people out of 10 are aware and in middle class 6 people out of 9 are aware. The awareness is not much in middle class as compare to other two because there is not advertisement strategy in this product. Their promotion strategy was more based on the word of mouth. Tupperware has direct selling chain which is through an agent and they are more common in upper-middle class.
A areness about th product w e
Awreness 1 0 5 0 1 c sof peo las ple A C U C M M C N A
Awareness about the product
AC U C M M C N A
AC- Affluent class, UMC- Upper middle class, MC- Middle class, NA- Not applicable
Microwave range of Tupperware is mostly used by upper middle class people because the affluent class prefer the international brand of products. Middle class people hardly prefer the microwave range as there are very less percentage of these people who use microwave and even if they use, they use whatever utensils they get as complimentary with the microwave.
U a eO th C s m r s g f e u to e
usage 1 5 1 0 5 0 1 c te o yo p o le a gr f ep A C U C M M C D U
Ua eo t eCso e s g f h u t mr
1% 2 A C 4% 8 3% 6 4 % UC M M C D U
AC- Affluent class, UMC- Upper middle class MC- Middle class, DU- Do not use
Microwave range of Tupperware is costliest among all Tupperware products and the rate is specified to be around 6000/-(the entire range)
C t os
No of people 15 10 5 0 H appy U nhappy Satisfaction N eutral Series1
Based on the cost graph it is very clear that only 12% of the people are satisfied with the present cost of the Tupperware. The graph shows 62% of the people are unsatisfied with the cost of microwave range of Tupperware product. When analysis is further carried out it is seen that there are also a set of people who are having a neutral opinion about the cost. That constitutes to about 26%. So to increase the demand of the product it will be necessary for the company to cut down on the cost factor. This also shows that the key factor to any demand is the cost.
D. Interest in new arrival:
Every 3 months, the tupperware company comes out with new exclusive arrivals with offers which are one of the main reasons for attracting customers. They also come out with free complimentary gifts. People are very much interested in the new arrivals as the upper middle class people like to experiment their kitchen. So this kind of strategy is helping the turnover of the company.
E. Credit facility & discount:
There is no credit facility or any sort of discount provide on a single product. As it is single chain market through agent the price of products remain fixed all over.
Supply analysis based on the Distributor/Agent:
What is supply? Relationship between price and quantity supplied at a given price. Supply of any commodity is the amount of commodity a producer is willing to put in the market at a given time at a given price.
Conditions for Supply: • Sales of the goods • Price of production • Price of goods • Technology • Profit margin • Supply chain
Our survey with the agent was somewhat based on these conditions. These are the very important part of the supply that based on this we can interpret few things about the supply factor of Tupperware microwave range of products.
Agent and distributors view:
Sale of microwave range is less as compared to other range of products like the refrigerator items and tiffin box which accounts for maximium sales. Even middle class people prefer tiffin box as cost of this range is less. The utility of this product is more as compared to the microwave range.
S a le s
10% 6% 40% F r id g e T if f in m ic r o w a v e o th e r 44%
The distribution channel is widely spread in metropolitian cities more compared to other cities. The ratio is about 3:2. Now they are moving towards other cities. As people are becoming aware of the product the company is trying to establish themselves in many small towns and districts.
0% 40% 60% MC OC RA
Metropolitan cities OC-Other cities RA- Rural areas
The profit margin of agent is 25% flat irrespective of number of sales. There is no incentive for extra sales. Hence the product which is in
higher demand is sold than the one with lesser demand. Hence the supply of the microwave range of Tupperware product is much lesser.
4. Delivery of products:
The products are usually delivered after 4-5days after the placement of the order or sometimes may be more than that. The orders are usually placed by seeing catalogue. There is also a system of showing the item but the policy is not always adopted by the agents.
5. New arrival:
Microwave range of Tupperware changes every month i.e. there is always new arrival with some change in say color, size, shape etc. This benefits both the agents as well as the supply because the consumers are very much interested in getting different items based on the colour, shape and size.
Tupperware provides full lifetime warranty against chipping, cracking, breaking or peeling except if the damage is caused due to rat bite or heat.
Strengths of Tupperware microwave range:
1. Quality: Tupperware microwave products are although costly it has very high quality and is highly long lasting. It can be used for a minimum period of 10 years without any damage if used and maintained in a correct manner.
2. Consciousness: As people are more conscious about lavish kitchen hence Tupperware microwave products form an essential part of their modular kitchen.
3. Warranty: There is life time warranty on all Tupperware range for every thing except damage due to rat bite or heat.
4. Light & easy cooking:
Tupperware microwave range are very light in weight and provide easy and fast cooking & clean up.
5. Single moulded: The quality of plastic used is of higher material and also it is a single moulded piece i.e. no joints anywhere in product, hence the possibility of breakage gets reduced.
Weaknesses of Tupperware microwave range:
1. Complementary with purchase: Tupperware microwave products are not sold much compared to other range of its products as microwave utensils generally comes complementary along with purchase of microwave. 2. Reduction in cost: Reduction in cost is not feasible as cost of production of Tupperware and its manufacturing process is complicated. 3. Preference: Some people prefer glassware in the microwave range hence they do not use Tupperware microwave products as it is plastic based. 4. Social consciousness: There is social consciousness that plastic contain chemicals and many do not want these chemicals in their food. Hence, these kind of mind set of people affect the sales of the product.
5. Promotion strategy: Tupperware is targeted only at the masses through word of mouth. There have been no advertising strategy used by the company for promotion of the product. As there is no promotion the sales get reduced.
6. Availability: Tupperware microwave range including other range is not available in local market. They are sold only through agents. This affects their sales.
In its tenure of eight years in India, Tupperware India has emerged on top, as the fastest growing markets for Tupperware in Asia. With revenues having touched Rs.206 crore already, the company is gearing up to meet its target of Rs.215 crore by 2009. Indigenous products will be one of the key growth drivers in the future for Tupperware.
Tupperware Financial Forecast
Based on this forecast it is clear that the company’s forecasting strategy is stupendous. The company is presently having a financial profit of about
1.09billion $ profit and is targeting at achieving a target of 3.17 billion $ by 2009.
Our view on the product:
1. Tupperware products including microwave range is sold through agent of Tupperware who all are housewife. So this is good way of earning for housewives. 2. There are many competitors of Tupperware internationally as well as locally whose products are much cheaper than Tupperware range. In local market, duplicate of Tupperware range is sold at 50% less than Tupperware original range. 3. As Tupperware range are single moulded plastic items so chance of breakage is very rare and durable compared to others. So people who are brand conscious will definitely prefer Tupperware product. 4. If discount and credit facility is provided on product then customer will get more attracted towards Tupperware microwave range.
In India the market of lock and key utensils has captured a market hold since long. We can see the market share of Tupperware is high as compared to the competitors. Even though the local smallscale industries have captured the middle class market there is no change in the market share of the tupperware product. Tupperware:40% Trio: 15% Luminarc: 15% Others: 30%
tupperw are luminarc trio others
For tupperware microwave range present competitors are Luminarc, Trio, Cutting edge etc in the international market. Whereas in the Indian market companies like power modern lock are booming.
Advantages of other brands:
• Main advantage of these product is that their price which is comparitively lower. But as we know tupperware is made up of
special type of plastic which can’t be reused. The processing becomes expensive causing the hike in price. • All these products are easily available in retail shops, in malls etc whereas tupperware has to be got only from an agent so working women and people who travel a lot find it difficult to purchase. Contacting an agent also becomes a problem.
Disadvantages of the other brands:
Luminarc, Cutting edge, Trio are basically companies which make glass wares. These are widely used in microwave.
• Littlebit of negligence may cause breakage or crack to it.
As they are heavy in weight as compared to tupperware it is hard to handle. Hence washing and placing becomes difficult.
• In brands like power modern lock the hinge of the top gets cracked and becomes easily breakable in due course of time. • Plastic used in these product starts staining and stinking after sometime.
The concept of matching supply with demand is straightforward. Just strike the right balance between what your customers want and inventory investment required to meet that demand. Of course it is not that easy. Underestimating demand leads to backorders, cancellations, and unsatisfied customers who turn to our competitors.
Taking this into consideration we should know likes and dislikes rater Demand of customers. Accordingly we should operate the supply chain. As every product has its own market we should know why is demand ? what is demand? In answer we should give How is supply. With respect to Tupperware we can say that the demand for the microwave range at present is not there. But in years to come definitely the demand for this product will increase. The main reason for this would be that every household will have a microwave and so the utility will come into consideration. As demand would increase the company will also try to satisfy these demands. Hence this product will be a success for certain.
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