Hold on to your Tupperware products; the company's survival is hanging by a thread as it seeks court protection.
Just like humans, businesses can fall severely ill and require immediate attention.
THREAD 🧵: Business ICU with Tupperware Brands (TB)
Once a kitchen staple, TB now teeters on the brink of collapse, burdened by massive debt, fierce market competition from cheaper alternatives & shifting consumer preferences.
Can this iconic brand reinvent itself and reclaim its crown in the kitchen?
In 1946, Tupperware introduced its revolutionary plastic products to the public after founder Earl S. Tupper invented their innovative flexible airtight seal.
The brand quickly became a household name first in America and across the world.
Its popularity soared thanks to vibrant sales parties by suburban women.
These gatherings showcased Tupperware's practicality and durability while fostering community and empowerment, offering new purpose and economic opportunities for women post-war.
TB initially tried selling in grocery and department stores but failed.
Earl Tupper then hired Brownie Wise, who successfully sold through house parties to stay-at-home moms.
This success in direct selling transformed TB's entire business model.
This business model ultimately became one of its major downfalls, as success led to complacency in adapting to changing times.
As work opportunities for women increased, the number of house parties dwindled thereby reducing potential sales.
TB was slow to adapt to changing times and failed to follow women into stores through product placements.
As a result, the brand was not visible where their customers were now shopping after they started earn
In 1980s, several of TB's patents expired
The expiration of Tupperware's patents eroded their competitive edge, leading to a flood of competitors, from obscure brands to giants like Addis, Rubbermaid, and Glad.
Their absence in select stores also hurt their brand as plastic's reputation declined
As plastic's reputation declined, Tupperware's uniqueness was overshadowed and bundled with cheaper alternatives,
Despite its use of environmentally friendly raw materials, especially in products made after 2010, which are Bisphenol-A-free (BPA).
Products that are BPA-free do not contain any traces of Bisphenol-A.
BPA has the ability to leach into foods and beverages causing health problems especially in younger children.
Tupperware Brands (TB) has committed to making BPA-free products. ,
TB also has a recycling program for its old containers, enhancing its environmental credentials.
It has expanded beyond food storage containers, venturing into toy manufacturing and even partnering with NASA to develop a device for growing food in space
TB has not been resting on its laurels. It has secured a deal with Target, reinforcing its brand positioning in the market.
Additionally, TB has ventured into e-commerce through partnerships with Amazon. Virtual sales parties were activated on platforms
Despite these positive interventions, the business still faces challenges from:
- Preference for glass
- Takeaway culture
- Plastic commodification
- Industrial food preparations
- Mismanagement
What can TB doctors do to help it regain its health?
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Disclaimer: This is not investment advice. VISIT companies in ICU and consult experts for a proper prognosis.