Reference no: EM133247864

Case: Tupperware Brands Corporation (TBC) makes and sells household products and beauty items. Tupperware parties became an integral part of suburban life in the United States beginning in the 1950s. Though the original Tupperware party is a nostalgic memory of another era, Tupperware has become a global competitor. Today, Tupperware is one of the largest direct marketers in the world and has a sales force of more than 2 million independent contractors in more than 100 countries. The original Tupperware products were made from a durable plastic named Poly-T that is lightweight, flexible, and unbreakable. Over the years, the Poly-T material was improved and refined to also be clear, odorless, and non-toxic.

These unique containers were further refined with a unique lid seal. Between 1950 and 1970 Tupperware parties created a strong brand awareness and sales multiplied 10-fold every year. For many women, Tupperware was their entry into the workforce. By 1970, international sales represented a significant source of income for Tupperware. By the mid-1980s, sales were slipping and the original concept of the Tupperware party was outdated. Management introduced new ideas of parties-in the office, cocktail parties, and shorter sales presentations. Management improved delivery speed with several new warehouses and distribution centers. New, more contemporary items like microwave cookware were added to the product portfolio.

The company introduced a directmail catalog and increased national print and television advertising. By 2000, international sales represented 85% of total revenues and 95% of profits. Between 1995 and 2000, Tupperware introduced more than 100 new product items catering to the specific needs of the international consumer. Tupperware diversified its distribution strategy by selling over the Internet; through television infomercials, and at shopping mall kiosks. The product portfolio continued to expand with kitchen tools, small appliances, and children's products. With an understanding that cosmetics were more in vogue than domestic products, Tupperware acquired BeautiControl, Inc., in 2001 and Sara Lee's direct-sale, beauty-supply line (operating primarily outside the United States) in 2005. Reflecting its identity as a "multi-brand, multi-category direct sales company," the corporate name was changed to Tupperware Brands Corporation. In 2009, beauty products accounted for nearly 50% of Tupperware's total sales revenues.

Question 1. Compare and contrast the original Tupperware party with today's social networking. Can you see a way in which social networking might be used as part of Tupperware's strategy? Explain.

Question 2. How would you describe Tupperware's sales force strategy?

Question 3. How do you think Tupperware's management supports the individual sales efforts? Be specific.

Question 4. What are the major components or Tupperware's direct marketing strategy