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Marketing Management case: Distribution strategies

To increase sales, Tupperware largely relies on foreign markets. However, the economic

crises in Latin America and Asia in Distribution Channels in the late 1990s severely hurt its

sales, and its revenues fell by more than one-third. The company sold about $167 million of jars

and kitchenware in the U.S. in 1999. However, it had a gross margin of more than 59% on these

sales.

Rubbermaid, a significant rival of Tupperware, sells to customers by doing business in

malls and outlet stores. The costs of Rubbermaid's products are significantly lower than those of

Case 14 Tupperware 1998. As an illustration, a two-quart Tupperware pitcher costs $11.45, but a

J. The price of Paul Peter Rubbermaid is roughly one-fourth of that. Rubbermaid has $2.0 billion

in annual sales thanks to lower costs and the University of Wisconsin-convenience Madison's

from having its products accessible in retailers. The three Ps of Tupperware's marketing

approach were Products, Party Programs, and Personnel. The manufacturer warranty is applied

to Tupperware items.

Since 1945, Tupperware has wowed more than a million U.S. citizens with

complimentary Tupperware goods. Despite these efforts, favorable feedback, and effective

marketing strategies, sales have not yet improved. Tupperware eventually found its way into

homes, but first, it had to get past consumers' mistrust.

Earl, a former DuPont chemist, sold Tupperware to Justin Dart in 1959. Tupperware has

two new tactics in store for 2000 where; Tupperware will be sold first for $11 million.

Tupperware has a remarkable 25-year record of tripling revenue and per ware on shopping

trolley kiosks at supermarkets across the nation, earning approximately $1.45 billion pretax.

by 7% in 1983 despite optimistic outcomes. Second, it intends to conduct online product sales.

However, yields dropped by 15%. Sales for the 2nd quarter of 1991 decreased by 32 %.

Although the business does not anticipate a significant increase in revenues from this channel, it

is similar to the time last year. The number of registered U.S. dealerships fell by 20% during that

quarter. Family and housing changes should result in additional sales, as indicated in Exhibit 1.

Holds were a factor in the decline of the company.

Parties held at home will still play a significant role in Tupperware's marketing plan.

Tupperware plastic items were typically marketed during house parties. Since parties for its

products are now hosted in residences and workplaces and other handy locations for people

heading home from work, one company believes that the home-based party is no longer old-

fashioned. These parties feature a part-time sale and are of such great quality that a skilled

Tupperware lady is required to discuss the benefits of the various plastic products and explain

their different varieties (the party hosts are almost always people welcoming acquaintances and

colleagues to the site and showcasing the many all women). Refreshments, free Tupperware

samples, casual chat, activities where players can win Tupperware, and an official presentation

of Tupperware products are usually included at the events. Consumers place orders at the

gathering and pay the salesman when they bring the ordered goods.

Discussion Questions

Tupperware made some brand-new products available to stem the decline. These featured

TupperWave, and Flexible Mates, which prevent closet clutter.

 Why have direct sales employed in-home gatherings been such a successful medium for

which microwave a full supper in thirty min; and the Environment Pack, a set of
 culturally unfavorable Tupperware? In a reusable green lunchbox, sneakers. Many

customers rejected the Earth Pack because they wanted to rinse it in a Sealed bag.

 The data presented in the exhibit points to many social shifts that occurred. What effect

have they had on Tupperware's plan to employ in-home Tupperware? Selling Tupperware

could be simpler than most women (45 percent in 1999), who either don't know where to

look for it or don't want to attend parties to promote its products. Attend a Tupperware

gathering. Tupperware receives about 40% of its revenue from customers who don't

attend events but sets guidelines for friends who do.

I managed to come up with my questions and assessment.

1. Assess Tupperware's plans for selling its items online and through mall kiosks.

Kiosks and internet commerce improve the buying experience due to their accessibility to

consumers and simplicity. Due to the more affluent demographic on social networks and the

online surface has a larger customer base. Tupperware is trying to capitalize on this sizable

market by growing its clientele online. The decreased input requirements for internet and kiosk

retailers result in cheaper running expenses. Through several uses, it also improves efficiency

and job satisfaction.

We developed a website where you can locate all the Tupperware sale agents to

encourage our consumers to participate in Tupperware parties. Every Tupperware vendor on this

website will have a profile with contact information, such as email accounts or contact

information. They can also share news, movies, images, and other content in their profiles.

People will be inspired to use this brand after seeing photos of existing clients utilizing

Tupperware in their kitchens. You can use this website as a social network. Customer
interactions create a sense of family for them and give them the feeling that they are joining a

welcoming company.

2. What chances does Tupperware have to stop the downturn and boost its advertising

revenues and profits?

People preferred traditional dishes and home-cooked dinners throughout 1991. In recent

years, Tupperware has marketed its goods as innovative kitchenware with a modern style, which

has helped the company become quite well-known. Traditional kitchenware was blended with

some of the most well-liked Tupperware items, including Slicer Plus, the Coffee Shop Set, and

the Dual Colander. Half of the workforce started working full-time to promote Tupperware items

in 1993. As catchphrases, they advertised "one-stop purchasing," "Value for Time" workshops,

and "Kitchen Design Planning." People were first taught how to use microwaves and save cash

by the brand. The world is shifting, and Tupperware is adapting by utilizing contemporary

technologies and its growing appeal. To address the issues of today, they are attempting to

develop new inventions.

Implementation and future pricing strategy

Tupperware ought to concentrate on female entrepreneurs. This consumer group can buy

expensive goods. Professional women find it fascinating to bend over and look at the things

aimed at children. Depending on the selling rates, we want to raise the pricing by 13% to 28%.

This increase won't bother the demographic of our target customers. The eco-bottle will stay the

same, though. Considering that this item is more elastic than the competition. This commodity

has already surpassed the highest price point.

Quantitative Survey
 I conducted an online survey with 23 individuals during the past week. As a group, we

decided to run the poll online because there aren't any authorized Tupperware stores in Turkey

where we could distribute the results to customers. Additionally, we attended a Tupperware

dinner party in Üsküdar to fulfill commitments about the customer profile, which Sevgi Ylmaz

planned.

Our observations indicate that the age demographic is between thirty-five and forty-five,

and the survey supports these findings. Twenty people were interviewed in the study,

4.76percent of participants selected the eighteen to twenty-four age range, 28.57percent set the

twenty-four to thirty-five age range, and 52.38percent selected the thirty-five to forty-five age

range group, which is the greatest percentage. These ages represented the majority of attendees at

Tupperware dinner parties. They were seven ladies, most of whom had been drawn to household

labor. There was only one woman attorney. Finally, 14.29percent of the participants selected

"forty-five plus" on the questionnaire.

Most attendees at the Tupperware home parties were housewives, as was previously

noted. Our study's rates are remarkably near this conclusion Alfina, P. P. (2022). 9.52 percent of

participants assumed that students would choose to use this brand, while 4.76 percent went with

the opinion of lone individuals. 14.29 percent of them think that the workers will favor using

these tools.

The final group of them, 71.43 percent, decided that homemakers would choose to use

Tupperware. Based on our findings, most of these housewives have at least one kid. Food

consumption increases along with the size of the family. As a result, there are more home cooks.

People must therefore preserve the extra food. Moms also value the traveling case's aesthetic

appeal. Considering that they intend to utilize this container at home, they favor elegance. Others
might not care as much about which carrying bag is best for them; instead, they choose the one

whose size and cost work best for them. Housewives, meanwhile, are more conscious of the

costs associated with these options.

Distinct people have different product preferences. Per our study and contractual

responsibilities, 19.05 percent of customers desire affordable items, 9.52 percent of users prefer

products to be attractive, 9.52 percent of customers like their items to be practical, and 61.90

percent of customers place a premium on the material's wellness. Our target market, which

consists primarily of moms who prioritize health, has a minimum household size of 3. Due to the

cost and health benefits, they all prefer to prepare meals at home. Both their spouses and kids are

attending school. They must bring a carry bag with them whenever they transport their food.

They can't always eat food from outside, after all. Moms'

Exhibit 1. Changing U.S. lifestyle has hurt Tupperware Niosi, A. (2021).

300

250

200

150

100

50

0
1986 1987 1988 1989 1990 1991
Series 1

Exhibit 2. Decline of Nuclear Families. More women are working now Suri, P. (2021).

Percentage Labor force participation of women with

50

40

30

20

10

0
1951 1961 1971 1981 1991

U.S. Active Tupperware dealers in Thousands through the 2nd Quarter Voigt, S. (Ed.). (2021).
 U.S. Active Dealers in Thousands
32

30

28

26

24

22

20
1986 1987 1988 1989 1990 1991 1992

Exhibit 4. Consumer’s preference of using Tupperware brand Indriyani, R. (2020).

Which consumer profile prefer to use Tupperware

Students housewives Single people Working class

References
Elsya, P., & Indriyani, R. (2020). The Impact of Product Knowledge and Product Involvement to

Repurchase Intention for Tupperware Products among Housewives in Surabaya, Indonesia.

In SHS Web of Conferences (Vol. 76, p. 01037). EDP Sciences.

Voigt, S. (Ed.). (2021). Since the Boom: Continuity and Change in the Western Industrialized

World After 1970 (Vol. 36). University of Toronto Press.

Heggeness, M. L., & Suri, P. (2021). Telework, childcare, and mothers’ labor

supply. Opportunity and Inclusive Growth Institute Working Papers: Federal Reserve Bank of

Minneapolis, 10.

Niosi, A. (2021). Changing Attitudes. Introduction to Consumer Behaviour.

Alfina, P. P. (2022). An Analysis of Housewives Awareness and Readiness as Potential

Customers of Eco-friendly Household Goods Company in Indonesia. Asian Journal of Research

in Business and Management, 4(3), 1-12.