Tupperware India’s ‘Party Plan’

Details

Case Code : CLMC-014
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 03 Pages
Price : Rs. 100

To download this case click on the button below, and select the case from the list of available cases:

» Marketing Communications
Short Case Studies
» Marketing Case Studies**
» Case Studies Collection
» View Detailed Pricing Info

Key words:

Tupperware India Pvt. Ltd., Eureka Forbes, Amway, Party Plan, Single level marketing, Multi level marketing, Direct marketing, Indian Olympic Association and South Asian Federation (SAF).

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

This caselet throws light on the multi-level marketing and single level marketing models used by direct marketers worldwide. It briefs about the direct marketing strategy of Tupperware India Pvt Ltd., the wholly owned subsidiary of Tupperware Corporation, USA. The caselet describes the ‘Party Plan’ concept of the company and analyzes the reasons for its success. It also discusses the different sales promotions pursued by the company to counter competition and penetrate the smaller cities and towns.

Issues:   » Single level marketing model as a promotional tool   » Role of customer involvement in marketing communications   » Significance of network- marketing Introduction The concept of direct selling has been used in India for quite some time by companies like Lotus Learning, Eureka Forbes, and LB Publishers. But it became more popular in the late 1990s, with direct marketing majors like Amway, Tupperware, Oriflame, and Avon, starting their operations in the country. Direct marketers generally use the MLM (multi-level marketing) model.

In this model, a person signs up as an agent or distributor of a direct selling company and is entitled to purchase its products at discounted rates. The agent is then permitted to begin selling the company’s products and also to recruit new agents, thus forming a chain of agents. The commission received depends on the number of agents recruited and the total business done by the chain.

Tupperware India Pvt. Limited, the wholly owned subsidiary of Tupperware Corporation, USA, started its operations in India in 1996 with a focus on kitchenware and plastic products useful in three areas – food storage, food serving, and food preparation.

Questions for Discussion:

1. Discuss how the party plan concept followed by Tupperware has enabled it to promote its products better through the group demonstration method. What do you think was the rationale for using only women in its party plan?

2. To what extent did the various below-the-line sales promotion campaigns help Tupperware tackle competition and improve its brand image? Why has Tupperware avoided using above-the line promotions to increase its presence in India?