MKTG 231 Principles of Marketing Bonus Question
Can an Old Brand Find a New Life?
The company was a pioneer in multilevel marketing and achieved global brand equity with the brand becoming a cultural phenomenon. Tupperware is prolific consumer goods brand synonymous within the product category worldwide. The food container brand quickly became a household name in the 1950s as women began selling the product in-home at “Tupperware parties.” Tupperware favored the D2C strategy of the home party system and independent consultants recruited to sell products, earning a percentage of the goods sold and incentives as bonuses and free products.
By the end of the 1950s, Tupperware established itself without depending on heavy promotion (advertising) and had 9,000 independent consultants by 1954. Consultants were primarily women, who ultimately generated USD $25 million in sales that year. But in the 1980s, the brand faced increased competition from retail companies like Rubbermaid Inc. The percentage of women in the US labor force increased from 34% in 1950 to 60% by 2000. This trend continued and affected the sales model of Tupperware.
The brand recently reached a crossroads after over 70 years of being in the market. With net sales declining precipitously between 2008 and 2022 (from just over USD $2 billion to USD $1.3 billion), the brand was experiencing a decline in the offering’s life cycle as consumers and the marketplace evolved. Consumers were looking for more environmentally sustainable products, and the premise of selling through homemakers was fading away as more women joined the workforce, especially in developed countries. Additionally, the emergence of less expensive imitations over the years also added to Tupperware’s problems.
In August 2023, Tupperware managed to secure funding, and its stock was up by 47%. But the unknown remained – could Tupperware get a second life? Could the brand launch a successful turnaround strategy?
INSTRUCTIONS.
You have been hired to act as a consultant hired to help Tupperware make a successful comeback. You must analyze the scenario and make a recommendation.
1. Begin by reading the following articles/research on the brand.
https://www.cnn.com/2023/08/04/investing/tupperware-stock/index.html
https://www.cnn.com/2024/09/18/business/tupperware-files-bankruptcy/index.html
https://www.thedrum.com/news/2024/09/19/the-tupperware-party-over-experts-unpack-the-brand-s-decline-and-what-could-save-it
2. Write your response.
Include as the first page of your response, the standard course cover page. This assignment does require APA in-text citations or references
Simply write/type your response beginning on page 2. Be sure to address/answer each of the following in short essay style (paragraphs).
Are there specific market conditions (2023-2024) that would impact and shape strategy? Be sure to identify any one specific uncontrollable macro-factor with the most influence on strategic success in this case. Discuss.
Could Tupperware have had a second life? Specifically, what new intensive growth strategy could have been developed and implemented? Use your knowledge of The Ansoff Product-Market Matrix. Explain.
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