What is Tupperware? Business Model of a Pioneering MLM Company


Tupperware is an iconic brand. The company has been around since 1946, manufacturing and selling plastic food storage containers, and is one of the most recognizable brands in America.

But what makes it so successful? 

What has led Tupperware Brands to be one of the top MLM companies in the world for decades?

We will perform data-driven analysis of this question by looking at five main areas: company, business model, products, general doubts, and frequent questions.



Insights

  • Tupperware Brands Corporation is a multi-level marketing company founded in 1946 by Earl S. Tupper, specializing in the sale of plastic food storage containers, kitchen tools, and other home goods with a global presence in about 79 countries.
  • The company operates under a multi-level marketing (MLM) business model and heavily focuses on party-plan sales, making it a pioneer in the network marketing industry.
  • Tupperware consultants can earn money through personal sale commissions, bonuses from personal sales volumes, team sales commissions, leadership commissions, one-time step up bonuses, director development bonuses, and Executive Manager monthly bonuses.

Section 1 – The Company

The first section focuses on Tupperware as a company. We analyze the history, market, and relevant data.

What is Tupperware Brands Corporation?

So, what is Tupperware Brands Corporation?

Tupperware Brands Corporation is a multi-level marketing company that sells various kitchen products, including plastic food storage containers, kitchen tools, and other home goods. It’s an incredibly successful company with operations across many countries worldwide and manufacturing plants in North America, Europe, and Asia.

History

Chemist Earl S. Tupper founded the company in 1946 as the Tupperware Corporation. He invented the first plastic food storage container made from two pieces (lid and base), called a “Tupper Sealer”. It was inspired by the existing seal-tight design of paint cans.

The company didn’t succeed until Brownie Wise came in as a general sales manager. She had worked for a cleaning products company, Stanley Home, which had initiated the “home party” method of selling.

So, in 1951, Tupperware was removed from the stores and sold exclusively at parties. Brownie Wise became the vice president and general manager.

Later, Tupper sold his company in 1958 for $16 million to Justin Dart, owner of a drug store called Rexall. Rexall was later renamed Premark International.

In 2005, the Tupperware Corporation changed its name to Tupperware Brands Corporation after acquiring Sara Lee Corp.’s beauty-supply direct-selling business for an estimated $566 million.

In 1996, the company went public and was listed on the New York Stock Exchange (NYSE) after being spun-off from Premark International, Inc. which was then a public company. Tupperware trades under the ticker symbol TUP.

Tupperware LogoPin

Market, Profit, and Sales

This company is a global brand with a presence in roughly 79 countries within Europe, Asia, the Pacific region, South America, Africa, and the Middle East. Most importantly, it has a strong presence in the US and Canada.

In 2021, Tupperware’s global net sales amounted to USD 1.6 billion. And the preliminary 2022 annual report shows net sales worth $1.3 billion.

Tupperware net sales 2013-2021 worldwide (Graphics)Pin
Source: Statista*

This data shows Tupperware Brands Corporation’s net operating profit from 2013 through 2021, split by region.

Tupperware profits worldwide 2013-2021 (Graphic)Pin
Source: Statista*

What Decade was Tupperware Invented?

Tupperware was invented in 1946, and it’s been around ever since.

The brand was founded by Earl Tupper, who came up with the idea of sealable plastic containers (inspired by seal-tight designs of paint cans) while working at a chemical company in Massachusetts.

Who is the CEO of Tupperware?

The current president and CEO of Tupperware is Miguel Fernandez.

Other key executives include:

  • Jim Van Ingen, Executive Vice President, Supply Chain
  • Mariela Matute, Chief Financial Officer
  • Rich Goudis, Executive Vice Chairman
  • Beatriz Díaz de la Fuente, Chief Human Resources Officer
  • Karen Sheehan, Chief Legal Officer
  • Hector Lezama, Chief Commercial Officer

Who Owns Tupperware?

Based on CNN Business data*, the current ownership of Tupperware Brands Corp is broken down as follows:

  1. Individual stakeholders: 10.81%
  2. Mutual fund holders: 27.04%
  3. Other institutional: 38.64%

The tables below detail the owners:

Tupperware owners 2022Pin
Source: CNN Business*
Tupperware owners 2022 (Mutual Funds)Pin
Source: CNN Business*

Where is the Tupperware Headquarters?

The Tupperware headquarters is located at 14901 S. Orange Blossom Trl., Orlando, FL 32837, United States.

How to Contact Tupperware

The best way to contact the company is online. You can use the contact form on the official website or use one of the social networks where Tupperware is present and active:

Company Mission and Vision

The company states that they are guided by three key values:

  • Doing what’s right: Speaking and acting with integrity to reflect the Tupperware brand.
  • Succeeding as a team: Collaborating, sharing ideas, and working together to achieve common goals.
  • Always improving: Stepping outside comfort zones, looking for new ways to improve in personal life, work, and serving the world.

Section 2 – Business Model

The second section delves into Tupperware’s business model. We analyze the company’s sales system and the proposed opportunity for independent sales representatives.

What Type of Business is Tupperware? 

Tupperware is a direct-selling company and it operates under a multi-level marketing (MLM) business model. The company rewards consultants for selling its products by giving them a percentage of the sales made by themselves and other consultants they recruit into their downline.

Tupperware heavily focuses on party-plan sales in its direct-selling operations (representatives demonstrate the products at home parties).

Along with Amway, Vorwek, Herbalife Nutrition, and a few others, it’s one of the pioneering brands in the network marketing industry.

How Many Tupperware Consultants are There?

Tupperware reveals that they have 2.9 million sales force members.

How to Make Money as a Tupperware Consultant

Tupperware Consultants can make money through:

  • commissions from each personal sale (25%)
  • bonuses from personal sales volumes
  • commissions from team sales
  • leadership commissions
  • one-time step up bonuses
  • one-time director development bonuses
  • Executive Manager monthly bonuses

The specific income percentages are detailed in the compensation plan section.

Tupperware’s Compensation Plan (Video)

Consultants within Tupperware’s compensation plan rise through 12 levels:

  1. Consultant
  2. Manager
  3. Star Manager
  4. Executive Manager
  5. Director
  6. Star Director
  7. 2 Star Director
  8. 3 Star Director
  9. 5 Star Director
  10. Executive Director
  11. Star Executive Director
  12. Presidential Director

Although details of the current compensation plan aren’t directly available on the company website, some Consultants have shared insights on what is involved. Here is an overview of the 2015 compensation plan shared by a Consultant, showing the different ranks, qualification requirements for each rank, and potential income streams:

Tupperware compensation plan - GraphicPin

How to Find a Tupperware Consultant in my Area

The easiest and most effective way to find a Tupperware Consultant in your area is to use the ‘Find a representative’ section on the company’s official website.

What is a Tupperware Party?

A Tupperware party is a home-based party hosted by Tupperware Consultants, who earn commissions on sales made at the party.

The Consultant typically organizes parties with other women in their community or neighborhood. They offer an opportunity for women to meet new friends and share their stories with each other while learning about Tupperware’s products.

In the past, Tupperware parties were held in people’s homes. 

The hostess would have a table set up where she would show off all of her products, including kitchenware like lids and containers, and cleaning products like sponges and dishwashing liquid. The hostess would encourage guests to buy some items (often at a discount) and then give them samples to try out at home. 

Often, these samples were put into plastic bags to be reused later when making meals or doing chores around the house.

How to Organize a Tupperware Facebook Party

Today, people still organize Tupperware parties at home or online through video calls with their friends or family members who live far away from them.

The most frequently used channel for these virtual parties is Facebook.

How to Become a Tupperware Consultant 

If you’re interested in becoming a Tupperware Consultant, here are some steps you can take:

  1. Find a Tupperware Consultant near you, visit their website, or contact them directly or via phone or email.
  2. The Consultant will teach you about the company’s products and business model. You will be expected to know about all of this when you begin as a representative—so it’s best to start learning now!
  3. Once you’re ready, start off by registering as a Consultant on the Tupperware website, signing the Consultant Agreement, and purchasing the Business Kit.
  4. Sign up with Tupperware using your personal contact information and then select which product types you’d like to sell (for example: “Party Plates”) from their website dashboard interface section called “My Products.”
  5. Once you’ve signed up as an official representative, make sure that everything goes smoothly by attending training sessions with other new representatives at events held periodically by local distributorships nationwide every month.

What are the Minimum Requirements to Be an Active Consultant?

To be an ‘Active’ Consultant, you must achieve a minimum of $350 in personal retail sales within four months; and at any point, you should have achieved at least $350 in sales in the past four months.

How Much Does It Cost to Join Tupperware?

When signing up as a Consultant, you’ll need to buy a Business Kit priced at $99.

Each startup kit includes various items like an educational consultant manual, order forms, party hostess forms, catalogs, and a selection of Tupperware products. 

How Much Do Tupperware Consultants Make?

Based on Tupperware’s last-updated income disclosure statement, roughly 94.09% of active Consultants in Canada earned an average of $653.63 in 2017. However, the active Consultants made up only a bit more than half of all Consultants.

Consultant LevelNumber of ConsultantsPercent of Active ConsultantsPercent of All ConsultantsAverage Earnings per Consultant
(Jan. 2017 – Dec. 2017)
Inactive Consultant21,322 –47.88%$26.39
Consultant21,84394.09%49.04%$653.63
Manager7953.42%1.79%$3,822.93
Star Manager2120.91%0.48%$5,949.87
Executive Manager850.37%0.19%$9,977.61
Director1530.66%0.34%$20,161.42
Star Director770.33%0.17%$31,521.26
2 Star Director200.08%0.04%$54,773.06
3 Star Director250.11%0.06%$98,706.15
5 Star Director40.02%0.01%$130,958.02
Executive Director20.01%0.01%$499,187.79

Section 3 – Products

Section 3 focuses on the products, their distinctive style, and the company’s unique selling proposition.

What Does Tupperware Sell?

Tupperware is a company that sells kitchen tools, cookware & bakeware, serveware, food storage, and on-the-go products.

Tupperware’s kitchen tools include everything from measuring spoons, mixing bowls, to colanders. 

They also sell various bakeware products such as silicone baking sheets and muffin forms. 

Tupperware’s serveware includes plates, cups, saucers, pitchers and carafes, serving platters and trays, and even salt & pepper shakers. 

Food storage includes containers for dry goods to keep them safe, and airtight containers for keeping food fresh in the fridge or freezer. 

On-the-go products include travel mugs, water bottles with built-in filters (for camping trips), and lunch boxes with insulating compartments for hot or cold foods (for school lunches).

Tupperware products

What is a Tupperware Container?

Tupper designed and patented a plastic container that could be used to store food and other items with less risk of spoilage and spillage since it was air- and water-tight. The containers have since become iconic for their distinctive shape, which is meant to allow for easy stacking and storage.

The Tupperware Corporation has expanded its product line to include many different types of containers. Over time, they have added other kitchen items like measuring cups and mixing bowls to their lineup.

In addition to being functional pieces of kitchen equipment, Tupperware containers have become famous collectors’ items due to their unique design and history. 

Many people still use them regularly because they are durable enough for regular use even after decades of sitting on shelves and collecting dust. 

If you’re looking for high-quality style and organization for your kitchen, this may be just what you need.

What is the Name of the Cover for Tupperware Products?

The name of the cover for Tupperware products is called a burp seal.

The cover is made from a durable plastic material that allows air to be released from the container before sealing it. It creates an airtight and watertight seal. This is achieved by lifting the lid slightly, “burping” out some air by pressing at the center of the lid, and pushing it back down to seal. It ensures that the contents of your container are safe and secure, preventing any smells or tastes from escaping.

Tupperware sealsPin

Why is Glass Tupperware Better than Plastic?

The company has stayed true to its roots by making high-quality products that are functional and stylish, which is why they appeal to so many people.

But what exactly makes the new glass Tupperware better than plastic?

Tupperware’s PREMIAGLASS is made of borosilicate glass. This PremiaGlass is more durable than traditional glass. It’s oven safe, and you can take it from the freezer, to the oven, and to your table. The material is strong enough to withstand temperatures of up to 300˚C (572°F) without cracking or melting. 

You can use your glass Tupperware for hot food like soups or sauces without worrying about them melting down over time!

Additionally, glass containers are non-porous, so that they won’t absorb flavors or odors from foods, like plastic may do over time (because plastic can hold onto certain smells).

This means you don’t have to worry about your leftovers tasting like something else when you reheat them later on — just pop them in the microwave or oven and enjoy!

Where to Buy Tupperware 

Here are some of the best places to buy Tupperware products.

Option A:

Your local department store – Many large department stores have a kitchen accessories section that sells Tupperware products. This is a great place to shop for Tupperware because it’s often cheaper than other retailers, and you can usually get items on sale or with coupons or promotions.

Option B:

The store where they sell kitchen accessories – If there is a kitchen supply store near you, check their website or call them to see if they carry any Tupperware products. Sometimes these stores will carry more expensive brands.

Option C:

Directly from a Tupperware representative (for instance, at a Tupperware party).

How to Buy Tupperware Online

There are plenty of ways to buy Tupperware online, including the official Tupperware website and several third-party sites.

Here’s a quick rundown of the options.

Option A:

The official Tupperware website has a wide selection of products and great prices. There are also many promotions available throughout the year. This is your best bet if you’re looking for something specific!

Option B:

Amazon has a great selection of Tupperware products, too—not just food storage containers but also home goods like kitchen accessories and cleaning supplies.

Option C:

eBay is another good place to shop if you want to get a deal on Tupperware items that have been used or refurbished by previous owners but still work perfectly fine! You’ll also find some pretty unique pieces—like vintage styles from decades ago —that aren’t sold anywhere except through private sellers (and even then, not at all locations).

Where is Tupperware Made? 

Tupperware has facilities worldwide. In America, products are manufactured in South Carolina. Overseas production centers include Mexico, Brazil, and Belgium.

Section 4 – Doubts and Misconceptions about Tupperware

In section 4 of this report, we fix the misconceptions about Tupperware Brands and we clarify some doubts about its reliability.

Is Tupperware an MLM?

Yes, Tupperware is an MLM company. It originally started with conventional sales through retail shops before finding tremendous success with an MLM party plan business model.

How Does Tupperware Work?

Tupperware offers a product line of food storage containers, and other kitchen items which it develops, manufactures, and distributes internationally through a network of sales representatives.

The representatives earn money by hosting parties and recruiting other people into the program.

Tupperware Parties

You can host Tupperware parties at your home, a friend’s house, online, or even a local sports bar or restaurant.

When you host a Tupperware party, you get to keep all profits from sales of products, recruit new members to be part of your downline, plus other perks that may come with hosting.

Ways to Sell Tupperware

To sell Tupperware products, you must be a representative of the company.

You can become one by registering on the official Tupperware website or by getting in touch with another representative (who will be your ‘sponsor’).

What is Tupperware’s Business?

Tupperware’s business model is direct selling mainly through party-plan sales, but it also offers a hybrid program that includes a bit of online retail. Tupperware’s representatives still demonstrate their products at home parties.

While there have been some changes over time, the core idea behind selling Tupperware products remains the same—people want to buy things because they see them being used by people they trust in the safety of their own homes.

Lawsuits and Independent Reviews

Recently, Rosen Law Firm, an investor rights law firm, filed a class-action lawsuit against Tupperware Brands Corp. regarding false/ misleading statements in its 2020 annual report.

The company also has a low rating of D- on the Better Business Bureau website.

As it faces such challenges, it’s still one of the highest revenue MLM companies in the world, ranked at 11th place in the latest DSN Global 100 List.

Also, in 2010, it was ranked in 2nd place in CNN’s Most Admired Brands in the Home equipment and furnishings section.

Section 5 – FAQs and Recap

In conclusion, we summarize some key concepts by answering frequently asked questions.

What products does Tupperware offer?

Tupperware offers a wide range of kitchen products, including plastic food storage containers, kitchen tools, and other home goods. Their innovative designs and durable materials have made them a popular choice for consumers worldwide.

How do I become a Tupperware consultant?

To become a Tupperware consultant, you can sign up through their official website or get in touch with an existing consultant. Once registered, you’ll receive training, support, and materials to help you start selling products and building your team.

How much can I earn as a Tupperware consultant?

Earnings for Tupperware consultants vary based on personal sales, team sales, and leadership positions. Consultants can earn commissions, bonuses, and incentives through various levels of the compensation plan.

Can I purchase Tupperware products online?

Yes, you can purchase Tupperware products online through their official website or from individual consultant websites. Alternatively, you can attend Tupperware parties hosted by consultants to see product demonstrations and make purchases.


Sources


Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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