ICMR Case Collection

ICFAI Center for Management Research

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.













Women Sales Force at Tupperware
CLSDM007
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CLSDM/007


Women Sales Force at Tupperware
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.
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
Tupperwares products. Under the new method, the correct method of using
Tupperwares 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 sons illness, Wise moved to Florida where she,
along with her mother, started directly selling Tupperwares 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.
Women Sales Force at Tupperware
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Earl noted Wises success and appointed her as the vice-president in 1951. Wise
discontinued Tupperwares 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 companys
products to their friends, relatives, and other women consumers at parties organized at
their homes. The parties were a great success and increased the companys popularity.
Wise was the official public representative of Tupperware, which till then, had been
averse to any public exposure.
Tupperware entered India in November 1996
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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
companys products. In India, Tupperware had a hundred per cent women sales force
that followed the party plan method and it attracted many women.
By 2004, Tupperware developed a 51,000-strong
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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
<http://www.exchange4media.com/Brandspeak/brandspeak.asp?brand_id=70>
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<http://www.exchange4media.com/Brandspeak/brandspeak.asp?brand_id=70>
Women Sales Force at Tupperware

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became the fastest growing market for the company among the developing countries.
The companys 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 million
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. This plant was able to meet 70% of the companys
domestic requirements.

Questions for Discussion:
1. Brownie Wise revolutionized the way Tupperware sold its products. Discuss the
role played by Brownie Wise in Tupperwares success in the United States.
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?

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.
3. Kumar, Rishi, Co-marketing to be Tupperware thrust, BusinessLine,
April 11, 2001.
4. <http://www.exchange4media.com/Brandspeak/brandspeak.asp?brand_id=70>
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