During the Second World War, American women enjoyed the freedom, left the kitchen and ventured into the labour market. This was the time when they were free from home responsibilities, out of sight from family members and kids and got time to socialize.
But after the war was over and men returned to their towns, women were confined back to the kitchen.
This was the time when Earl S. Tupper, a genius and a bankrupt businessman, came up with a light-weight liquid-proof unbreakable bowl with an airtight lid. He named it “Wonderlier Bowl”. It was the first product under the brand “Tupperware”. Later, he introduced many other plastic kitchen utensils which became very popular among the households.
- Home Parties: The Company started with the direct selling strategy and currently follows the direct marketing strategy, which was introduced by Brownie Wise. She was the one who started selling Tupperware products successfully by explaining products to her guests at house parties.
Mr Tupper was curious to know how Brownie was able to show higher sales than other representatives and so invited her to be part of the company sales team as Vice-President. And then, the house parties became the talk-of-the-town where women came out of the kitchen, again, and were able to socialize, sell and make earning.
Till date, the company follows this strategy, and it has made Tupperware a multi-billion dollar company.
However, there is a slight change in the audience who visit Tupperware Home Parties today. Previously, only housewives and women used to organize and participate in such parties. But currently, most of the participants are its retail customers.
- Change in Distribution System: Earlier Tupperware products were consumed mostly by its direct customers – women who purchased the kitchen utensils. But today, these products are getting sold through multiple channels – Online, Supermarkets and through Tupperware Consultants.
Benefits of joining Tupperware – Tupperware Review
- Quality Products: Since day one, Tupperware has proved to be a quality brand. Its products are awe-inspiring and long-lasting. The brand offers a variety of products in different range, and colours and some of its sub-branded products are high in demand such as FlatOut!, FridgeSmart, PrimaKlima, Stuffables and UltraPro. The brand has such high confidence in its products durability that it offers a lifetime guarantee to its customers.
- Brand Trust: Tupperware has been a well-known brand for 71 years. Its products are present and sold in more than 100 countries.
- Compensation Plan and Offers: Joining Tupperware as a consultant would cost you just $99, however, it offers 25% commission on sales and 25% off on products you chose to buy. This is the highest commission rate paid across MLM companies. When you join, Tupperware gives you products and business tools worth $350. Just like any other Multi-level Marketing (MLM) companies, Tupperware allows you to earn commission on members you enrolled as consultants. More they sell, more you get the commission.
- Minimum Sales Requirements: Tupperware gives you 4 months to meet a minimum sale of $250 to remain active on the Tupperware network. Products can be sold online through affiliate marketing or direct selling as well.
Problems with Tupperware Membership – Tupperware Review
- Low Demand and Many Consultants: `Tupperware products are durable but also expensive at the same time. People join Tupperware with high expectations because of its high brand value. However, once they become salesperson, they face difficulty in selling products because of their Tupperware’s expensive products. There is very less demand for Tupperware products, and at the same time, the company has currently 2.6 million salespeople.
- Multiple Sales Points: There are many channels through which products are getting sold, such as e-commerce websites. In this digital shopping time, a salesperson is highly unlikely to get a customer who will buy directly from him/her.
- Less Earning: On Tupperware network, nearly half of the distributors are inactive and rest half make below $500 earning in a given year. This is the situation of 97% of Tupperware’s entire distributor list.
- Reduced focus on sales: Since the sale is not as high as expected, consultants go back to the traditional method of making money in a network marketing business – approaching family or friends.
Apart from the issues mentioned above, Tupperware is facing challenges from companies, like K-Mart, offering similar product qualities at a much cheaper price range. It is currently functional in around 100 countries with operations pulled out of UK, Ireland and Israel. It is facing legal issues in countries like China due to pyramidal direct selling laws. Although members do not make much money with Tupperware’s membership, however, the company was able to generate $2.26 Billion revenue in 2017. It is the most well-known legit MLM Company that has been recognised as the most favoured brand in countries outside America.