Tupperware launches new products; to double turnover in two years

Tupperware, the direct selling company in the business of food storage and serving containers, launches 10 new products, taking its portfolio to 85

Tupperware India, the direct selling company in the business of food storage and serving containers, recently announced the launch of 10 new products, taking its portfolio strength to 85. The launch was announced at the company's 5th annual managers' conference, which was attended by 900 managers and distributors from across the country.

The new product line comprises statement pitchers available in the sizes of 2 lt and 500 ml, priced at Rs 360 and Rs 150 respectively. Spice-it-up, the 300-ml container for storing pickles and jam, is priced at Rs 350. Also in the portfolio are three new microwavable items - the 1.7-lt legacy vegetable server with spoon, the 1.8-lt legacy soup server with ladle and a 460-ml crystal/wave jug. While the legacy vegetable server set and the legacy soup server set sport price tags of Rs 495 and Rs 445, the jug is priced at Rs 195. Of the other four items, two are in the ‘freezer mates' line and the remaining two are part of the ‘gadget' line - namely, spatula and peeler.

Tracing the success of Tupperware in India, Kanwar Bhutani, managing director, Tupperware India, says, "All the Tupperware products come with a lifetime guarantee and are made of virgin plastic (plastic that hasn't been recycled). Moreover, all products are Indianised. They come in bright colours and attractive scientific designs. Take our peeler. It has been designed in such a way that left-handers can use it as well," explains Bhutani.

To meet the requirements of the growing market, Tupperware has invested $2 million in the four-injection-moulding machine plant in Hyderabad. The company imports most of the raw materials from Korea and colours from Japan. The moulds are imported from across the globe. Knowing that it is more cost effective if all the requirements were sourced in India itself, Bhutani admits that the company did experiment with the idea but the arrangement did not work out. Explaining the reason, he says, "Unfortunately, we did not get quality stuff in India and we just cannot compromise on quality, which is the core strength of all our products. Even if it costs more, it's worth it."

As part of its direct selling initiative, Tupperware will set up kiosks at Ebony and Shoppers' Stop outlets. But Bhutani maintains that this kind of set up will not interfere with the classical sales model of Tupperware - which is, selling through parties. "We are not displaying our popular products at these kiosks; these can only be bought by attending the Tupperware parties," he says.

Tupperware does not believe in advertising to popularise its products. The company's logic for this is, product benefits can only be communicated through product demonstration. Thus, through strategic alliances with companies like Whirlpool and P&G, and by sponsoring columns in popular women's magazines like Elle and Femina, the company has successfully achieved its objective. "In fact, Tupperware has had a brilliant first half. We broke even last year and we hope to double our business in the next two years," maintains Bhutani.

The company hopes to be among the Top Three direct selling companies in the country in the next three to five years. Tupperware is confident of achieving this by increasing the number of distributors from 50 to 200 in this time frame.

Bhutani says his confidence stems from "the belief that women in India have reposed in the company" and " from the manner in which a piece of plastic has come mean a celebration of life for them". A sentiment writ large on the faces of those 900 women who came from all over the country to participate in the managers' conference.

© agencyfaqs! 2001