W34189 TUPPERWARE: IN NEED OF A TURNAROUND STRATEGY1 Sandeep Puri, Rafael Camus, and Siddhant Puri wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveypublishing.ca. Our goal is to publish materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs Copyright © 2024, Ivey Business School Foundation Version: 2024-01-08 In April 2023, Tupperware Brands Corporation (Tupperware), the 77-year-old American home products company specializing in double-sealed air- and water-tight polyethylene food preparation, storage, and serving containers, raised concerns that it would collapse unless it received sufficient investment quickly. Despite Tupperware’s several attempts at appealing to a younger and more environmentally aware demographic, sales continued to plummet, dropping nearly 50 per cent to an all-time low of US$1.302 per share on April 10. The company was staring at the possibility of its shares being delisted from the New York Stock Exchange for not filing its annual report. The higher interest costs on borrowings were bleeding the company as it tried to resuscitate the declining business. A liquidity crisis loomed, and the company was doubtful about its ability to continue.3 Tupperware had not evolved with the times, and persisting with its strategy of direct selling through Tupperware parties did not appear to be connecting with young customers. Moreover, even older customers had moved on from “Tupperware in its heyday” to cheaper or trendier containers available online or in stores. In March, Tupperware announced its shrinking direct-selling workforce, which in 2022 had reduced over the year by 18 per cent. Although COVID-19 lockdowns in China had drastically limited consumer access to its products, its share prices had seen some growth toward the end of 2020 and early 2021 as more people stayed home and cooked.4 Despite the brief bright spot, Tupperware’s share prices had been declining steadily, and the company was considering meeting with financial advisors about gathering funds and investment, cutting jobs, and selling property.5 While it was unlikely that Tupperware could do much now to see a turnaround, the brand had a high recall, and some strategies could help it stay afloat in the market and avoid liquidation. What strategies should Tupperware adopt to increase its sales revenue and keep its business from shutting down? Should it reduce its prices or follow a dual selling strategy of selling directly and through online and other retailers? Should Tupperware consider differentiating the products for each segment or launch a new range of low-cost ecofriendly products? For its low-cost products, should it persist with the same brand or launch a different brand? This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in this case are not necessarily those of Tupperware Brands Corporation or any of its employees. 2 All amounts are in US dollars unless otherwise specified. 3 Dearbail Jordan, “Tupperware Warns of Collapse unless It Finds Funds,” BBC News, April 11, 2023, https://www-bbc-couk.cdn.ampproject.org/c/s/www.bbc.co.uk/news/business-65237293.amp. 4 Dearbail Jordan, “Tupperware Warns of Collapse.” 5 Dearbail Jordan, “Tupperware Warns of Collapse.” 1 This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025. Page 2 W34189 COMPANY BACKGROUND Earl Tupper, an American chemist, founded Tupperware in 1946. In a market used to ceramic and glass products, these air- and water-tight polyethylene containers did not catch on with the public even though they were initially available in stores. These double-sealed containers did not appear user-friendly as they had to be “burped” to release air. However, after Brownie Wise, a saleswoman selling door-to-door cleaning products at home parties, began conducting demonstrations and selling burp-seal products at these parties and recruited others to do the same, Tupperware became a household name. Tupper later hired Wise as vice president of marketing to help grow the business through house parties and empower women to become earners.6 Tupperware soon became the go-to outlet for many American women to earn an income, fuel their careers, gain confidence, and build success all from their homes. The domino effect of this “entrepreneurial opportunity” soon became a global phenomenon as women and families worldwide began benefiting from the “Tupperware Effect,” and their economic and social status began to rise.7 Tupperware not only delivered on the promise of an income but also on quality, innovative products and excellent customer service. The company gained high consumer loyalty through its unique and influential marketing strategy. In addition, its products, services, and marketing were adaptable to different cultural demands.8 Tupperware had a presence in more than 100 countries.9 In 2022, the company reported revenue of $1.31 billion and a net loss of $28.4 million, sliding 19 per cent from fiscal year 2021, a year it had reported a profit of $155.6 million.10 In April 2023, Tupperware Brands had a market capitalization of $62.26 million.11 MARKETING MIX Product For over seven decades, Tupperware had designed products to simplify consumers’ lives by saving them time and money, helping keep their food safe, and reducing waste. In 2023, Tupperware’s product list included containers for preparing, cooking, storing, and serving food items. Its lifetime-lasting products helped avoid the need for disposable containers. Tupperware demonstrated its dedication to ensuring its representatives’ and consumers’ satisfaction and safety by consistently evaluating fresh materials to enhance product performance and meet market demands. The company followed regulatory recommendations and ensured the use of only acceptable materials in its high-quality products (for example, Tupperware products were BPA-free since 2010).12 The company added fresh designs and colors to its product lines regularly and expanded existing products into new markets worldwide. Initially focused on products to store and preserve food, Tupperware expanded into serving containers, microwave and oven cookware, and children’s toys.13 Dearbail Jordan, “Tupperware Warns of Collapse.” “Meet the Founders of Fresh,” Tupperware, accessed April 17, 2023, https://www.tupperware.com/pages/about-us. 8 Zander Henry, “Marketing Strategy of Tupperware Brands,” Case48, August 22, 2018, https://www.case48.com/termpaper/Tupperware-Brands-Marketing-Strategy-13507. 9 “Tupperware Brands Corporation Company Profile, Information, Business Description, History, Background Information on Tupperware Brands Corporation,” Reference for Business, accessed April 25, 2023, https://www.referenceforbusiness.com/ history2/0/Tupperware-Brands-Corporation.html#ixzz7znIMKQZH. 10 “Tupperware Brands Full Year 2022 Earnings: EPS Misses Expectations,” Simply Wall Street, March 2, 2023, https://simplywall.st/stocks/us/consumer-durables/nyse-tup/tupperware-brands/news/tupperware-brands-full-year-2022earnings-eps-misses-expecta. 11 “Market Capitalization of Tupperware Brands (TUP),” CompaniesMarketcap.com, accessed April 20, 2023, https://companiesmarketcap.com/tupperware/marketcap/. 12 “BPA Free,” Tupperware, accessed April 13, 2023, https://www.tupperware.com/pages/bpa-free. 13 “Tupperware,” 123Helpme, accessed April 17, 2023, https://www.123helpme.com/essay/Tupperware-134306. 6 7 This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025. Page 3 W34189 In 2023, Tupperware had a comprehensive product range to attract different customers. It had products in various categories: food storage (75 products), kids shop (13 products), kitchen (83 products), on-the-go (25 products), table (21 products), and Tupphome (1 product). The company also had different product types: baking tools (7 products), bowls and plates (5 products), chopping (3 products), cleaning (6 products), countertop storage (10 products), drinkware (5 products), freezer storage (6 products), fridge storage (19 products), gadgets and tools (27 products), lunch (11 products), microwave cooking (8), microwave reheatable (15 products), mixing bowls (5 products), oven bakeware (10 products), pantry storage (25 products), peeling (1 product), seals and lids (2 products), serveware (11 products), serving bowls (4 products), slicing (7 products), stovetop cooking (10 products), thermal drinks (12 products), toys (1 product), utensils (1product), and water bottles (6 products).14 Pricing In April 2023, Tupperware products were priced between $13 and $75. Many, like the six-piece Thatsa Bowl set and the Silicone Baking Sheet with a rim, had discounts with prices reduced from $132 to $75 and from $66 to $39, respectively.15 Tupperware also used the bundle pricing strategy of selling two or more items at a single price, making customers believe they were making a reasonable purchase. This also helped foster customer loyalty. To retain customers, Tupperware also had festive and special-event pricing (e.g., special offers for some products during the Chinese New Year celebration).16 Tupperware products were more expensive than that of its competitors (e.g., a triple pack of eight-cup plastic containers with lids from Clorox Company’s GladWare cost $8.99 or more, but a single Tupperware Heritage Collection bowl and its lid were $10.99).17 However, Tupperware consumers considered the products value-for-money because of the lifetime warranty and continued to back the brand despite premium pricing.18 Place Brownie Wise was the brain behind the legendary Tupperware parties that started in 1948. Usually, a Tupperware party had a hostess who allowed a Tupperware dealer to demonstrate the products to her social network. Tupperware rewarded these party hostesses with their products and gave the dealers sales commissions. These independent dealers became so successful that in 1951, Tupperware stopped in-store sales completely. By 1954, the company had a 20,000-strong dealer network, none of whom were Tupperware employees but individual contractors acting as the channel between the company and the consumer. The same year, Tupperware product sales rose to $25 million thanks almost entirely to these Tupperware dealers.19 In 2020, Tupperware revenues crossed $2 billion.20 Tupperware continued with its dealer-network strategy until 2019, when it opened its first offline retailing temporary store in New York. Acknowledging changing consumer preferences and the need to become more accessible to people, Tupperware vice president of global brand engagement Chip Reingold said that it was important to “to bring this brand to people and put it directly into their hands.” She, however, called “All Tupperware,” Tupperware, accessed April 17, 2023, https://www.tupperware.com/collections/all-tupperware. “Monthly Brochure,” Tupperware, accessed April 22, 2023, https://www.tupperware.com/collections/monthly-brochure. 16 Siti Norlaila Bt Zulkifli, “Identifying Market Segments and Targets for Marketing Strategy Plan at Tupperware Malaysia,” International Journal of Business and Management Invention 7, no. 3 (2018): 55–59. 17 Hilary Russ and Katherine Masters, “Tupperware Tumbles as Cheaper Rivals, To-Go Containers Proliferate,” Reuters, April 15, 2023, https://www.reuters.com/business/retail-consumer/tupperware-tumbles-cheaper-rivals-to-go-containers-proliferate-2023-04-13/. 18 Swati Bagri, “How Tupperware Established Its Mark in Our Kitchen?” The Strategy Story, September 22, 2020, https://thestrategystory.com/2020/09/22/tupperware-business-model-marketing-strategy/. 19 “Tupperware,” Strategyzer, accessed April 22, 2023, https://www.strategyzer.com/library/tupperware-business-model. 20 Abhishek, “How Did Tupperware Get to $2 Billion in Annual Revenue?” GrowthX Newsletter, December 26, 2022, https://shorts.growthx.club/p/how-did-tupperware-get-to-2-billion. 14 15 This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025. Page 4 W34189 this move experimental and did not want the pop-up to be considered the company’s direct-to-consumer retail debut. The intent was to solely assess reactions. The same year, the company also launched its website in the United States and Canada, enabling customers to shop directly online, speak to sales representatives, and even download information on how to host a Tupperware party, keeping with the company’s traditional direct-selling strategy. Tupperware then rolled out country-specific e-commerce across all markets.21 By 2020, even though the brand was doing well online largely due to COVID-19 restrictions and had opened outlets in key cities, Tupperware house parties were still the money-spinning crux of the company’s business.22 In 2023, Tupperware also sold and promoted its products via franchisee stores.23 Promotion The company initially promoted its products using placements in television series and advertisements, but it largely depended on word-of-mouth marketing through Tupperware parties.24 By 2023, however, Tupperware began promoting its products using a multichannel approach, which supported the socialselling method of direct sellers. The company helped the direct sellers create a unique shop link to set up an online business so that sellers could leverage their social media network.25 The company also promoted its products by sharing recipes that customers could make using Tupperware.26 It also introduced Kitchen Experts for its customers. These experts suggested modern storage solutions to reorganize kitchen shelves, alternatives for mess-free kitchen counters, and ways to reduce waste using its product range for meal preparation and leftovers.27 The company’s sustainability initiatives included zero waste to landfills by following sustainable practices in its manufacturing units, the reduce-reuse-recycle model ensuring no Tupperware product clogged oceans or threatened sea life, and relentless promotion of responsible consumption to reduce food waste.28 Tupperware used public relations, events, celebrity endorsers, and promotions to promote its products, social media influencers to endorse its products, and social media networks such as Facebook and Twitter to interact with its customers.29 GLOBAL FOOD CONTAINER MARKET Although the worldwide food container market reached $145.6 billion in 2020 and approximately $147.5 billion in 2021, it was anticipated to experience a compound annual growth rate of about 4 per cent from 2021 to 2028. The market’s growth was primarily driven by packaged food products such as ready-to-eat meals and convenience foods, frozen meals, cake mixes, snacks, and desserts. These containers offered convenience in terms of packaging, carrying, and transporting food products. The rising demand for packaged products encouraged manufacturers to enhance production capacities, fueling demand for food containers from 2021 to 2028.30 Katie Deighton, “After Decades of Direct Sales, a ‘Reignited’ Tupperware Is Finally Embracing Modern Channels,” The Drum, November 21, 2019, https://www.thedrum.com/news/2019/11/21/after-decades-direct-sales-reignited-tupperwarefinally-embracing-modern-channels. 22 Swati Bagri, “How Tupperware Established Its Mark in Our Kitchen?” 23 “Become a Store Franchisee,” Tupperware, accessed April 22, 2023, https://www.tupperwareindia.com/businessopportunity/franchise-enquiry. 24 Marsha Bryant, “Polymers: Fantastic Plastics in Postwar America,” chap. 9 in Impact of Materials on Society (Gainesville, FL: Library Press @UF, 2021) https://ufl.pb.unizin.org/imos/chapter/polymers/; Stuart Elliott, “The Tupperware Party Moves to Social Media,” The New York Times, May 4, 2011, https://www.nytimes.com/2011/05/05/business/media/05adco.html. 25 “Social Selling,” Tupperware, accessed April 22, 2023, https://www.tupperwareindia.com/business-opportunity/social-selling. 26 “Delicious Recipes,” Tupperware, accessed April 22, 2023, https://www.tupperwareindia.com/products/recipes. 27 “Kitchen Expert,” Tupperware, accessed April 22, 2023, https://www.tupperwareindia.com/products/tupperware-kitchen-expert. 28 “Choose Good Every Day,” Tupperware, accessed April 22, 2023, https://www.tupperwareindia.com/choose-good-every-day. 29 Stuart Elliott, “The Tupperware Party Moves to Social Media.” 30 “Food Container Market Size, Share & Trends Analysis Report By Material (Plastic, Metal, Glass), By Product (Bottles & Jars, Cans, Boxes, Cups & Tubs), By Region (Asia Pacific, Europe), And Segment Forecasts, 2021–2028,” Grand View Research, accessed April 22, 2023, https://www.grandviewresearch.com/industry-analysis/food-container-market. 21 This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025. Page 5 W34189 Increasing sustainability, environmental awareness, and a rising focus on food-container innovation and aesthetics also propelled the market growth. As the demand for easy-to-store and easy-to-carry packaging that helped immediate food consumption was expected to increase, companies needed to offer products matching changing consumer tastes. Moreover, a rapid rise in employed women, the consequent increase in double-income households, and the consumption of packaged goods encouraged industry growth. Population growth in metropolitan areas and the growing number of single-person households were also expected to boost demand.31 The market was categorized into products made of plastic, metal, glass, and other materials. Because of several advantages over other materials (such as lightness and energy efficiency in manufacturing), plastic emerged as the most extensively utilized material in the packaging market. In 2020, the Asia Pacific region held the dominant position in the global market, capturing a revenue share exceeding 36 per cent. This region was estimated to show the highest growth rate from 2021 to 2028, driven by the remarkable expansion of the food-processing industry. Notably, India, China, and Japan played pivotal roles as key contributors to the growth of this regional market. Major manufacturers engaged in intense competition by focusing on factors such as corporate reputation, product offerings, price, quality, recyclability, and sustainability to enhance their market share and bolster their position. They emphasized regular product launches, innovations, and expansions of their distribution networks and sought opportunities through joint ventures, mergers, and acquisitions.32 MAJOR PLAYERS The main companies in the industry were Tupperware, Pampered Chef, Helen of Troy Limited, Newell Brands Inc., Lifetime Brands Inc., and Clorox Company. Pampered Chef A multilevel marketing company, Pampered Chef specialized in kitchen tools, small kitchen appliances, and cookware. The majority of its business was through Pampered Chef parties in which party hosts offered product discounts, but direct ordering from the company’s website was also possible. The company had augmented its online sales and increased customer reach and at the same time developed new kitchenware. Pampered Chef’s home and online parties both effectively connected its salespeople with their clients.33 Pampered Chef’s products cost between $2 and $100.34 Helen of Troy Limited Helen of Troy Limited (Helen of Troy), a consumer products company, catered to customer needs by providing innovative products and solutions. Their diverse portfolio comprised highly recognized and trusted brands, including Belson, BRUT, Braun, Hydroflask, Honeywell, Osprey, OXO, and Vicks.35 The company’s home and outdoor segment for home activities (e.g., food preparation, cooking, cleaning, and organization) and outdoor and on-the-go activities (e.g., hydration, food storage, backpacks, and travel gear). These were sold through retailers and its direct-to-consumer channel.36 “Food Container Market Size, Share & Trends Analysis Report,” Grand View Research. “Food Container Market Size, Share & Trends Analysis Report,” Grand View Research. 33 Jerry Landry, “The Untold Truth of Pampered Chef,” Mashed, January 14, 2022, https://www.mashed.com/733252/theuntold-truth-of-pampered-chef/. 34 “Shop,” Pampered Chef, accessed April 23, 2023, https://www.pamperedchef.com/shop-landing-page. 35 “About Us,” Helen of Troy, accessed April 23, 2023, https://www.helenoftroy.com/about-us/. 36 “Our Brands,” Helen of Troy, accessed April 23, 2023, https://www.helenoftroy.com/our-brands/. 31 32 This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025. Page 6 W34189 Newell Brands Inc. Newell Brands Inc. (Newell) distributed its extensive range of products under a variety of brand names, including Coleman, Contigo, Dymo, Sharpie, Parker, Elmer’s, EXPO, Paper Mate, Jostens, Marmot, Rawlings, Oster, Mr. Coffee, Graco, NUK, Calphalon, Rubbermaid, Waddington, and Yankee Candle. These products included pens, pencils, labelling solutions, durable beverage containers, hand tools, power tools, hygiene systems, highchairs, and play yards. Newell sold its diverse product line across the Americas, Asia Pacific, and Europe, Middle East, and Africa regions through an extensive network of distributors, grocery stores, warehouse clubs, department stores, home centers, mass merchants, specialty retailers, and e-commerce platforms.37 Lifetime Brands Inc. Lifetime Brands Inc. (Lifetime Brands) specialized in a range of kitchenware products such as cookware, kitchen tools and gadgets, cutlery, cutting boards, and shears. Additionally, they offered tableware items, including dinnerware, bakeware, flatware, glassware, and pantry ware. The company also provided spices and home decor products. Lifetime Brands marketed its products under popular brands like Farberware, KitchenAid, Pfaltzgraff, and Wallace. These products were available online through internet retailers and offline through various channels such as specialty stores, department stores, national chains, mass merchants, home centers, warehouse clubs, supermarkets, off-price retailers, home and garden centers, and pharmacies.38 Clorox Company The Clorox Company (Clorox) specialized in a wide range of consumer and professional goods. Their diverse product portfolio comprised products such as digestive health products, grilling products, cat litter, cleaning and disinfection solutions, packaging materials, and household maintenance products.39 Clorox’s Glad range of bags and food wraps were manufactured with less plastic and were washable and reusable. Glad Tall Kitchen Bags’ innovative design helped reduce 6.5 million pounds of waste annually, which was the same as keeping 140 million trash bags out of landfills every year.40 Glad products were available on the shelves of Walmart, Target, and grocery stores such as Kroger.41 THE WAY FORWARD The fading relevance of the American kitchen icon Tupperware in the face of cheaper alternatives and reusable food-delivery containers had pushed the brand to the brink of collapse. Tupperware’s challenges appeared insurmountable in an environmentally conscious modern world where Gen Zs and Millennials preferred shopping online. While Eric Schiffer, the chief executive officer of the Patriarch Organization, a California-based private equity firm, felt that Tupperware had an uphill task trying to regain relevance given its inability to rethink its popular but dated social-selling “Tupperware Party” strategy to connect better with the tech-loving Gen Z and Millennial audiences, Hitha Herzog, chief retail analyst for H Squared Research, believed Tupperware was struggling because it had failed to pivot from its women-driven party sales at the appropriate time.42 Schiffer felt that Tupperware had not yet found the right approach to building 37 38 39 “Newell Brands Inc.: Overview,” GlobalData, accessed April 23, 2023, https://www.globaldata.com/company-profile/newell-brands-inc/. “Lifetime Brands Inc.: Overview,” GlobalData, accessed April 23, 2023, https://www.globaldata.com/company-profile/lifetime-brands-inc/. “The Clorox Co: Overview,” Global Data, accessed October 25, 2023, https://www.globaldata.com/company-profile/the-clorox-co/. “Our Story,” Glad, accessed April 23, 2023, https://www.glad.com/trash/our-story/. 41 Hilary Russ and Katherine Masters, “Tupperware Tumbles.” 42 Ryan Lynch, “Investment Expert: Tupperware Faces 'Questions of Leadership' After Financial Turmoil,” American City Business Journals, April 13, 2023, https://www.bizjournals.com/dayton/bizwomen/news/latest-news/2023/04/tupperwarerecovery-eric-schiffer.html; Hilary Russ and Katherine Masters, “Tupperware Tumbles.” 40 This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025. Page 7 W34189 brand demand on Amazon and Target and making its products look cool and meaningful to the young demographic, and that only a strategy to “to crack that nut” would help salvage the brand.43 Herzog also agreed that the brand could not raise revenue because it had not yet made itself appealing to younger consumers.44 With Tupperware staring at a liquidation crisis and its share prices plummeting rapidly, the company needed to find ways to stay relevant. It needed to see what changes in strategy, pricing, branding, segmentation, or differentiation would bring investment to stay afloat. The authors would like to thank the Asian Institute of Management (Philippines) for providing research funding. 43 44 Ryan Lynch, “Investment Expert: Tupperware Faces 'Questions of Leadership'.” Hilary Russ and Katherine Masters, “Tupperware Tumbles.” This document is authorized for use only in Professor Sandeep Puri's WSGSB - EMBA 2026B-Marketing Mastery for Business Growth (GMKTG 262) at Asian Institute of Management from Jun 2025 to Dec 2025.
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