ICMR Case Collection
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ICFAI Center for Management Research
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CLSDM007
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Women Sales Force at Tupperware
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This caselet was written by Mylavarapu Vinaya Kumar, under the guidance of Ramya Narsimhan, ICFAI Center for Management Research (ICMR). Caselets are intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
2005, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means- - electronic or mechanical, without permission. To order copies, call +91-40-2343-0462/63 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email
[email protected]. Website: www.icmrindia.org
CLSDM/007
Women Sales Force at Tupperware
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Tupperware Corporation (Tupperware), founded by Earl Silas Tupper (Earl) in 1938, was a US-based multinational consumer products company that manufactured and marketed plastic food storage, serving items, and beauty products to consumers across many countries in the world, through its ‘Tupperware’ and ‘Beauty Control’ brands. In 2004, Tupperware, the US$1.1 billion company, had a sales force comprising over 1 million people all over the world and most of them were women. Tupperware included a range of plastic containers used in households to store and keep food airtight. After World War II, the company turned its attention to manufacturing plastic products for the growing consumer market. At a time when Americans used glass and crockery to store and serve food items, Tupperware provided a more durable and reliable alternative. Tupperware started marketing its products through hardware stores and department stores. However, the products were relatively new in the market and failed to gain sufficient consumer attention.
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In the late 1940s, Tupperware hired Brownie Wise (Wise), a former sales representative at Stanley Home products, who revolutionized the way Tupperware sold its products. She developed a unique method called ’party plan’ to market Tupperware’s products. Under the new method, the correct method of using Tupperware’s airtight lids and their benefits were demonstrated directly to customers. Wise first heard of Tupperware products when she was working in Stanley Home products. In 1949, following her son’s illness, Wise moved to Florida where she, along with her mother, started directly selling Tupperware’s products through Tupperware Patio Parties. They sold these products through an organized social network of women. These parties became an instant success and Wise was selling more products than the department stores. It became increasingly difficult for Tupperware to supply the required inventory to Wise.
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Women Sales Force at Tupperware
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Earl noted Wise’s success and appointed her as the vice-president in 1951. Wise discontinued Tupperware’s process of selling through hardware and departmental stores and started selling only through its parties. She created an all-woman sales force using a planned sales and recruitment structure which took into account the family responsibilities of women as well. These women demonstrated the company’s products to their friends, relatives, and other women consumers at parties organized at their homes. The parties were a great success and increased the company’s popularity. Wise was the official public representative of Tupperware, which till then, had been averse to any public exposure.
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Tupperware entered India in November 19961 at a time when Indian households were using mostly steel to store and serve food. Tupperware started its operations in India by recruiting people and training them. Initially, the company thought of distributing the products through retail distributors, but felt that it would not effectively communicate the features of the new product to customers. The concept of party plan worked well even in India and was able to draw considerable consumer interest in the company’s products. In India, Tupperware had a hundred per cent women sales force that followed the party plan method and it attracted many women.
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By 2004, Tupperware developed a 51,000-strong2 all woman sales force across 41 cities in India, which marketed about 88 different consumer products. Tupperware adopted a network structure to distribute its products, which consisted of three layers. At the top was the distributor followed by a unit manager and a consultant or a dealer. The distributor was directly registered with the company. A distributor managed around 30 unit managers, who in turn had a team of around six dealers. The unit manager also trained and motivated the dealers. She got a commission based on the performance of her sales team (dealers). The dealers were independent people who approached hostesses and asked them to host parties. A unit manager along with the dealer demonstrated the products to the consumers. Tupperware adopted a singe level compensation plan and the commission was purely based on individual performance. Within four years of operation, Tupperware (India) 1
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Women Sales Force at Tupperware
became the fastest growing market for the company among the developing countries. The company’s turnover in 1999 was Rs 400 million which increased to Rs 570 million by 2000. The dealer network increased from 20,000 in 1999 to 25,000 in 2000. The company also set up a manufacturing plant in Hyderabad, India, with an investment of US$2 million3. This plant was able to meet 70% of the company’s domestic requirements.
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Questions for Discussion: 1. Brownie Wise revolutionized the way Tupperware sold its products. Discuss the role played by Brownie Wise in Tupperware’s success in the United States.
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2. In India, Tupperware felt that a direct demonstration to customers was essential in creating awareness and building up a customer base. Why did Tupperware feel that India was a good market and what steps did it take to directly contact the customers?
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Additional Readings and References:
1. Reshma, Krishnan, “Direct selling -- Hype or real opportunity?” The Hindu, April 23, 2000. 2. “Interview of the week,” www.agencyfaqs.com, January 08, 2001.
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3. Kumar, Rishi, “Co-marketing to be Tupperware thrust,” BusinessLine, April 11, 2001. 4. 5. “Company Info,” www.tupperwareindia.com.
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Kumar, Rishi, “Co-marketing to be Tupperware thrust,” The Hindu Business Line, April 11, 2001
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