• International Marketing – Product Related strategies

Group 2 –• Saurabh Gupta, 08• Bhabanishankar Maiti, 19• Mangesh Narkar, 29• Pulkit Singhi, 50

Competitive advantage Product attributes

– Multiple features – Microsoft office, window,

Apple – Unique test – Dr pepper, Listerine – Wide selection, one stop shopping – Amazon– Superior service – FedEx, Singapore airlines– Engineering design and performance – BMW– Customization – Dell computers, – Image reputation – Ralph Lauren, Rolex, Rolls

Royce

Product related strategic option in international marketing

• Ways to deal with cross country variations in buyer preference and market condition

• Localize multicounty strategies – Tailor the product offerings fit to market condition of

country

• Global strategy – Offer the same product world wide with only very

minor deviation one country to another

• Combination of global and local strategy – Employ same basic competitive strategy – Customize product offerings– Sell different product versions in different countries.

Introduction

• 14740 employees • 2.4 million independent

sales force members• 100 countries • 2.1 Billion net sales • 8 brands

• Headquarter Orlando Fluorida USA

• Direct selling consumer product company

• 80% of total revenue from international market

• 50% revenue accounted from emerging economies such as India, china, Malaysia, Indonesia

• Manufacturing facilities in 17 countries including India , USA, Australia, China, Japan

Brands • Tupperware :

represents food preparation, storage and serving solutions for the home,

• Beauty and personal care products including Armand Dupree, Avroy Shlain, Beauti Control, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgarde.

In 1996, Tupperware Worldwide receives approvalfrom the Government of India to set up a whollyowned subsidiary."In entering India, Tupperware leverages three

primary strengths," said Rick Goings, president of Tupperware Worldwide,

• Exceptionally high brand awareness, • Expertise in the rapidly growing direct selling

 industry & • Decades of success in product development and

designAdopting Direct Selling Strategy for all its products

Entry in INDIAN Market

• Selection of product category – focus on core business

• Maintain World Class Quality for Indian Products• Product Shape Modifications• Product Materials Modifications• Customized Products• Localized Production

Product Strategy for International Marketing - Adopt product but maintain global brand

Integrity

Focus on a core business / category

• Companies entering in international market with core business are in positions to bring in innovation, resources, learning from other markets, and weight of global organization.

• Tupperware did just that: it came to India with a clear agenda to develop a category on which its global business was based, kitchenware.

• It is applicable to large market in India• This allowed the company to give enough attention, expertise

and support it needed. • This focus helped change consumer behavior: Tupperware

converted many Indian consumers from traditional metal food containers to plastic ones that catered to local food habits.

• It also allowed the company to build a strong distribution network by popularizing "Tupperware Parties" involving sharing of recipes, cooking advice and health tips among Indian housewives.

Maintain World Class Quality

The Dark Side of 'Made for India'Not “Made for India” but “Made to Sell In India”

– Indian mass were very cost sensitive. – High Quality was not major requirement for mass.– Hence Multinationals would reduce quality using the lower

quality requirements that existed in India.E.g.• Coke with higher pesticide levels, • Poorer-quality and older-model cars.

But this was not the strategy adapted by TupperwareQuality standards are maintained universally same.

It is reflected by the Product Quality Guarantee they give,They give lifetime guarantee & replacement of damaged products

Product Shape Modifications• Spice Box conventionally made of Metal round in shape.• Tupperware had Spice Box of plastic but rectangular in

shape.• Through feedback from customer it modified its shape to

round.• Even the serving spoons in India are custom-made.

"The shapes are very different from what is sold in other markets,

• "Indians have specific designs for serving rice, gravies and dry dishes."

Product Shape Modifications

• Company manufactures containers in polypropylene, a cloudy plastic.

• Considering Indian consumer preferences,

Used polycarbonate as product material which is clear plastic, appearing like glass.

Product Materials Modifications

• The market size should justify investing in product localization

• Product customization is the result of a definite consumer need that has to be served without sacrificing profitability. And consumers will always want something different. There is no such thing as too much customization

• Launched a new range of long-lasting, eco-friendly bottles for everyday water storage needs which, given their durability, reduce the load on landfills.

Customized Products

Tupperware Colour Card

Customized Products

Localized Production• Product design based on

consumer feedback

• Product localization via ground up design and innovation have become crucial catalyst to growth in India – Roti keeper , masala

(Spice) box– Reverse Innovation – Eco

friendly bottles – a global block buster

Local Production – To compete with local players

– Production - state-of-the-art plant in the Hyderabad caters exclusively to the Indian market.

– Tupperware India used a locally developed mold for its Eco Bottle to take on lower-cost water-storage rivals while preserving the product's premium image

Competitors

For tupperware Dinnerware range present

competitors are

• Luminarc

• Hamilton Housewares Pvt Ltd (Treo)

• Small Local Manufacturers

Strengths of Tupperware Products

Quality: Tupperware microwave products are although costly it has very highquality and is highly long lasting. It can be used for a minimum periodof 10 years without any damage if used and maintained in a correctmanner.

Warranty: There is life time warranty on all Tupperware range for every thing except damage due to rat bite or heat.

Light & easy cookingTupperware microwave range are very light in weight and provide easy and fast cooking & clean up.

Single moulded: The quality of plastic used is of higher material and also it is a single moulded piece i.e. no joints anywhere in product, hence the possibility of breakage gets reduced.

Weakness of Tupperware Products

Reduction in cost: Reduction in cost is not feasible as cost of production of Tupperware and its manufacturing process is complicated.

Preference: Some people prefer glassware products in place of plastic products e.g.for microwave applications they do not use Tupperware microwave products as it is plastic based.

Social consciousness: There is social consciousness that plastic contain chemicals and many do not want these chemicals in their food. Hence, these kind of mind set of people affect the sales of the product

Advantage to Competitors• Lower Price:

Main advantage of these product is that their price which is comparitively lower. But as we know tupperware is made up of special type of plastic which can’t be reused. The processing becomes expensive causing the hike in price.

• Availibility & Accesibility:All these products are easily available in retail shops, in malls etc whereas tupperware has to be got only from an agent.

Competing Companies manufacture majoritily glass wares. These are widely used in microwave.

• Littlebit of negligence may cause breakage or crack to it. • As they are heavy in weight as compared to tupperware

it is hard to handle, hence washing and placing becomes difficult

• Comparitively Poor Quality, hinge of the top gets cracked and becomes easily breakable in due course of time.

• Plastic used in these product starts staining and stinking after sometime.

Weakness of Competitors product

Summary – Factors behind the success • Product

– core business category, – Product modification as per local need– Maintained brand integrity– Premium mass product Selection of emerging market ,

• Price – Understood local cost – Produce locally to reduce cost with maintaining quality standard.

• Promotion & Distribution – – unique concept of direct marketing, Tupperware party– Own Sales force nearing 1 lac.– Joint marketing promotions – ex – P&G, HUL

• People & Process – Provide resource to potential – Leverage to local client

Tupperware Today

• Tupperware India operates in 59 cities.

• Very popular in urban middle-class women

• Sales force in nearing to 1 Lac.

THANK YOU