case study

1. Tupperware: Influencing Opinions through Word-of-Mouth
Tupperware, a direct selling company entered India in November 1996. Tupperware adopted a
three-tier network structure. At the lowest level was the Dealer. One rank above the dealer was
the Manager who operated a team of six dealers. The manager also had to sell like the dealers, in
addition to motivating and training dealers. She got a commission on the sales of her team. She
could also promote a dealer to manager level for which too she got a commission. The top level
was the Distributor, who was registered with the company. She did not keep any stock but was
responsible for recruiting many dealers and maintaining a healthy atmosphere in the unit (the
dealers and the managers working under her). She could promote managers to distributor levels.
The dealers could work part time but the manager needed to be more focused.
The distributor needed to be a full-time Tupperware worker. Tupperware’s marketing strategy
was described by its three Ps – Product, Party Plan, and People. Tupperware products carried a
lifetime guarantee. Any damaged product (cracks or breaks) would be replaced with the
same/similar new Tupperware product from any place in the world. Pradeep Mathur (Mathur),
MD, Tupperware’s India operations said, “Our product has been the corner stone of our success
for many years.”141 The products with the revolutionary lid offered unique advantages to
consumers in terms of quality and durability.
The second P stood for Party Plan. Tupperware succeeded worldwide not only because it had an
innovative product line but also because of its powerful marketing strategy. The company sold
its products through the ‘Party Plan’. The ‘Party Plan’ was a unique direct selling method in
which a Tupperware dealer approached a lady and asked her to host a party at her place, the
investment for the party being borne by the hostess. The Tupperware woman demonstrated the
benefits and use of the Tupperware products to the invitees to the party. Depending upon the
sales generated by that particular party, the hostess got a free gift – a Tupperware product. The
hostess was a means of promoting the products and she did not have to become a Tupperware
dealer. This method allowed the Tupperware products to be demonstrated physically and their
utility to be explained. According to the executives of the company, this demonstration technique
suited their products and was necessary to explain the reasons for their higher costs.
The third P stood for ‘People’. Tupperware aimed at recruiting people at the dealer level and
training them to do their business. The company recognized good efforts and rewarded them.
Mathur commented, “People are what our business is all about. We don’t really worry when the
next sale is coming. But we do worry about when the next person will join our business, where
she comes from, and how she is trained and motivated.”142 The company encouraged people to
become dealers. There were awards and cash bonuses for the party hostesses. The management
of Tupperware
India organized at least three social events per month for its employees. This could mean the
entire staff going out for lunch or a movie or cutting a cake together. “We don’t lose any
occasion to celebrate,” said Mathur. Such programs developed a healthy and fun atmosphere in
the unit.
Initially, Tupperware did not opt for the traditional means of advertising. The company’s
products were promoted through the parties and were advertised through ‘word of mouth’. But
later, the company decided to use the conventional methods for advertising in promoting its
products. Tupperware India advertised in popular women’s magazines like Elle, Femina, and
Parenting. In 2000, the company entered into a strategic alliance with FMCG major P&G to
conduct a campaign in Chennai and Chandigarh, where P&G salesmen distributed Tupperware

2. pamphlets and P&G’s Tempo tissues. The company held a cross-promotional exercise with P&G
in 2001.
The idea was that Pringle chips, which were being promoted by P&G, stayed crisp and crunchy
when stored in Tupperware containers. Tupperware’s sales went up by 20% after this campaign.
The ‘Caravan’ (a van that carried Tupperware products in road shows during festive seasons) and
Tupperware ‘melas’ (display of Tupperware products in residential parks) were also introduced
in 2001 to enhance awareness.
Though direct selling remained its main revenue stream, Tupperware set up two kiosks at the
Shoppers’ Stop outlets in Delhi and Mumbai in 2001, which were increased to 16 in 2002.
Supporting the move, Kanwar S. Bhutani, who joined as the managing director of Tupperware
India in 2000 said, “The move is aimed at lead generation (enhancing the recruitment set-up, in
other words), upping brand awareness, and reaching out to potential customers unable to attend
Tupperware
Questions for Discussion:
1. How did Tupperware use parties to increase sales of its products?
2. “Tupperware’s marketing strategy was described by its three Ps – Product, Party Plan, and
People.” What was unique about Tupperware’s marketing?