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Tupperware Brands SWOT & PESTLE Analysis

ID : 52496253| Sep 2020| 15 pages

COMPANY PROFILE -Tupperware Brands

Business Sector :Consumer Products

Operating Geography :United States, North America, Global

About Tupperware Brands :

Tupperware is an American multinational direct sales company having it’s headquarter in Orlando, Florida, US. It was founded in 1946 in Grafton, Massachusetts, US, with early beginnings in 1942, when Earl Tupper developed his first bell shaped container. This 70-year-old globally admired company runs through a 3.2 million successful Sales Force spread across 80 countries and is sold in over 100 countries. Spread across seven decades, the products have become increasingly diverse, beautiful and convenient. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware® brand and beauty and personal care products through the Avroy Shlain® , Fuller® , NaturCare® , Nutrimetics® and Nuvo® brands.
Tupperware was the flagship brand to adopt direct marketing strategy made famous by the Tupperware party. As of early 2018, Tupperware employed over 12,000 people, of whom approximately 1,000 were based in the United States. The company underwent a name change, mirroring its identity as a "multibrand, multicategory direct-sales company," in December 2005, to bring focus up on its product diversity. The company was renamed Tupperware Brands Corporation. Over 39 world-renowned red dot awards adorn The Tupperware Design Team’s hat, which is the highest honorary distinction in the design world.
Tupperware’s vision reads, “Ignite a global community, especially women, to realize their best selves through opportunity, enrichment, celebration, and above all else, uplifting relationships. We are committed to accelerating profitable revenue growth for the benefit of all our stakeholders.” Tupperware’s USP or unique selling proposition lies in being the pioneering global direct-to-consumer company engaged in the manufacture and sale of high quality home and kitchen products and being the most trusted brands in housewares.

Tupperware Brands Revenue :

Total Net Sales:
$ 2,255.8 million – FY ended 30th Dec 2017 (Net loss of $265.4 million)
$ 2,213.1 million – FY ended 30th Dec 2016

Competitive Analysis of Tupperware Brands

The SWOT Analysis for Tupperware Brands is presented below:
1. One of the largest direct sellers of the world
2. Strong Global Presence
3. Strong brand name
4. Diversified product portfolio
5. Promoting women empowerment
1. Negative Debt-Equity Ratio
2. Declining growth of net sales and profits
3. Low stock Valuation
1. Growth in Container market
2. Expanding business in more emerging markets
3. Rising adoption of new technologies
1. Increasing Competition
2. Brand loss and pricing pressures due to duplicates
3. Plastics posing health hazards
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Detailed SWOT Analysis of Tupperware Brands



1. One of the largest direct sellers of the world: Tupperware pioneered the direct go-to-consumer strategy made famous by the Tupperware party which was the brainchild of a talented marketer lady Brownie Wise, a Detroit secretary and single mother. A Tupperware party is typically thrown by a Tupperware "consultant" for a host who invites kin and kith to her home or suitable venue to see the product line. Tupperware hosts are rewarded with free products based on the level of sales made at their party. Parties also take place in workplaces, schools, and other community gatherings. This direct marketing strategy worked wonders for the company where consumers got a first-hand view of the product line from the host and contributed to its phenomenal success. This “direct-to-consumer” marketing strategy of Tupperware facilitates the timely distribution of products to consumers, without the hassle of routing via retail intermediaries, besides bringing in uniform practices regarding the use of Tupperware Brands' trademarks and administrative arrangements, such as order entry, delivery and payment, along with the addition and training of new sales force members. As of 2018, the Company's distribution system had approximately 2,100 distributors, 112,300 managers (including directors and team leaders) and 3.2 million dealers worldwide.

2. Strong Global Presence: The Company had its presence in six major European countries in 1962 and then ventured into Japan and Australia. Gradually Tupperware Brands has expanded to almost 100 countries around the world. It has its wide presence in North America in countries like Canada, Costa Rica, Mexico, USA. In Europe the company has its presence in a wide number of countries like Belgium, Austria, Spain, Switzerland etc. In Asia pacific it has presence in India, Australia, China and many other countries. In Africa and Middle East, the company is present in Morocco, Egypt, Algeria while in South America the company has its operations in countries like Argentina, Brazil, Uruguay. While America contributed to 43% (North America 24% and South America 19%) of its total Sales, Europe contributed 24% and Asia pacific 33%). International operations contribute a large chunk of the Company’s sales and profits - it accounted for 91 percent of sales in 2017, 2016 and 2015. They accounted for 98 percent of segment profit in 2017 and 99 percent in 2016 and 2015. According to the Company’s annual report, for the past five fiscal years, 91 to 92 percent of total revenues from the sale of Tupperware Brands' products have been in international markets.

3. Strong brand name: Tupperware as a brand in Kitchen plastics is known to be the top-of-mind brand across countries. Especially in Malaysia, every household is sure to have a Tupperware product. As a kitchen and storage brand Tupperware has become synonymous with high quality. It is the most trusted names in housewares. As there are a lot of competitors in this segment it is very difficult to build a brand reputation for high quality. Low R&D costs, innovative product lines, finest design features to help meet specific needs, has aided in building a strong brand over 70 years which can now command high pricing power in this segment. Even though the products are in a premium category Tupperware has managed to show steep growth. Tupperware has grown as a brand in both emerging markets as well as done extremely well in developed market. Emerging markets accounted for $201.9 million and $189.6 million of reported net sales in this segment in 2017 and 2016, respectively, contributing 37 percent and 34 percent of net sales, respectively.

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1. Growth in Container market: The market for kitchen containers and storage is expected to grow at a decent rate in the near future. The global plastic bottles and containers market was valued at USD 140.107 billion in 2017 and is expected to grow at a CAGR of 5.31%, during the forecast period (2018-2023). It is forecasted to touch USD 192.048 billion by 2023 as per a report by MordorIntelligence. Tupperware can tap into this growth by trying to bring in more ergonomically designed products and innovating new features into packaging of these containers. Moreover plastic being considered one of the environmentally hazardous products the company can venture into new products and categories like Glass and organic packaging of the containers. The plastic container industry is an application driven industry and as such plastic containers are mainly demand driven by end users like Health, Food and beverage industries. The low costs in manufacturing and high durability of the product in the containers make this a prospective industry for growth. One of the widely preferred option for packaging are plastic containers as compared to other materials, keeping this mind the industry is expected to continue its upward growth curve through the forecast period. Also with growing market for frozen foods plastic containers pose a good option for storage.

2. Expanding business in more emerging markets: As seen from their financial report, most of the revenue for the company has been generated by the emerging markets lately. Business in emerging markets earned Tupperware 69 % of 2017 sales and 66% of 2016 sales, while businesses running in established markets accounted for the other 31% and 34% respectively. The Company defines established market economies as those in Western Europe (including Scandinavia), Australia, Canada, Japan, New Zealand, and the United States. All other countries come under the umbrella of emerging economies. So, it will be highly profitable for them if they can cater to more emerging or upcoming markets so they can increase their market share therefore leading to more Revenue generation. For instance, In Canada there is a huge potential for increase in demand of FMCG products which might ensure high adoption of consumers opting for containers and plastic bottles for storage. Emerging countries in North America, Middle East and Asia Pacific provide a good opportunity for Tupperware to grow its market share.

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Major Competitors :

Major Brands :

  • Tupperware
  • Avroy Shlain
  • Fuller
  • NaturCare
  • Nutrimetics
  • Nuvo

Key Business Segments / Diversification :

Tupperware Brands
Tupperware brand products cosmetics
personal care products
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References used in Tupperware Brands Analysis Report





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