C4
Can an Old Brand Find New Life? | HBR Quick Case
Ashita Aggarwal
The Scenario
On March 1, 2024, Phil Anderson received an email from his boss, Eric Chen, the CEO of
Consumer Goods Consulting, LLC.
From: Eric Chen
To: Phil Anderson
Subject: Need your help with a new client
Phil, we’ve got a new client—a classic brand facing some big challenges: Tupperware. As you
know, they became a household name by the 1950s. At that time, the brand creatively used
word-of-mouth and multilevel marketing to build market share.
But recently, their story hasn’t been good. Between 2008 and 2022, net sales precipitously
declined from a little over USD $2 billion to USD $1.3 billion. Last April, Tupperware
announced to investors that it could go out of business; it lost almost half its value.
Before we create a strategy to revitalize the brand, we need to understand Tupperware’s
situation today and how they got here. Please summarize your findings for me in a month.
Eric Chen
CEO
Consumer Goods Consulting
Fast Facts: Tupperware Brands Corporation
Company type: Multinational
Industry: Consumer products (household goods)
Founded: 1946 by Earl Tupper
Headquarters: Orlando, Florida, USA
Revenue (FY2021): USD $1,602.3 million
Key people: Susan Cameron, Chair; Laurie Ann Goldman, CEO
After researching the Tupperware brand, its origins, and its recent performance, Phil Anderson
provided the following summary to his boss.
The Report
Founded in 1946 by chemist and inventor Earl Tupper, the food container brand Tupperware
became almost synonymous with reusable plastic products and containers. Tupperware crafted
its history of success with a business model that included recruiting women to host
“Tupperware parties” in their homes in the 1950s. They gave their salesforce an opportunity to
earn a significant amount of money by selling Tupperware.
Today, however, Tupperware faces multiple challenges from long-standing problems.
Tupperware designs were unique and once dominated American kitchens, but in the 1980s their
patents began to expire. Diminishing nostalgia around the brand over time also contributed to
declining sales. Increased competition, which also introduced cheaper versions of Tupperware
products, further eroded its share. Brands like Rubbermaid, Pyrex, and Glad innovated and
were more successful in the reusables category.
The company has also not been able to keep aligned with the times:
▪ Younger consumers don’t want to use plastics; rather, they’re looking for products
made with sustainable materials.
▪ Between 1950 and 2000, the percentage of US women in the labour force rose from
34% to 60%, meaning fewer women were bringing in money by hosting Tupperware
parties.
▪ It wasn’t until 2019 that Tupperware India began to offer its products online through
websites like Flipkart and Amazon.
▪ Tupperware stuck to its direct-to-consumer sales model for too long, only introducing
its products in brick-and-mortar retail stores in the United States in 2023.
Looking ahead, Tupperware’s largest opportunities exist in emerging markets (like China and
India), home to over 85% of the world population and contributing to 70% of Tupperware sales
in 2018. Emerging markets have a growing middle class that desires aspirational brands and
products, and the company can offer employment opportunities to women in regions where
there is lower employment of women outside of the home.
Financially, things are a little less dire lately, but the problems with the brand remain.
The Ask
Consider the following questions:
1. If you were Eric and Phil preparing your recommendations to Tupperware, what would you
say are the key challenges the company is facing at this stage of its life cycle?
2. What should Tupperware do to reverse its fate to retain and increase market share?
