Our discussion of
the Perfect Sip business model in class on Tuesday had me reflecting on the
direct marketing business model for the rest of the day. I've attended my fair
share of Tupperware parties, Pampered Chef parties, and events for plenty of
other products that are sold through the same basic process.
But, what is a
Tupperware Party, and how did it come to be? Odds are that some people at the
GSB have never attended one or anything similar - so, I offer a brief explanation and history. Tupperware, plastic kitchen ware of all shapes and sizes, was introduced to the market in 1945. Sales were slow to start, and only took off after the founder and his business partner deployed the "party" sales model. Basically, someone who wants
to host a party contacts a Tupperware "Consultant" and arranges a
party. The host will invite people, and the consultant will set up food,
drinks, games, etc. for entertainment. The goal of the party is to have a good
time, snack and chat, and also for the consultant to sell Tupperware to those
in attendance. The Consultant will take some time to show off the products,
laud their merit, discuss the uses, and pitch the attendees. Hopefully, they
close a few sales and set up a few more parties by the end of the event.
These days, this is
a fairly common business model - one that The Perfect Sip is attempting to
streamline and modify in a way that best fits the wine industry. But, at the
time when Tupperware Parties first started, they were considered revolutionary
- not just for plastic food storage containers, but for a generation of women.
When Tupperware was initially introduced, plastics were first
being deployed for household use; buyers needed to be sold on its merits as it was such a new product. The "party" sales model was a way for potential buyers to interact with the product and see it in use. And, there were clear advantages for the sales force as well. According to one article, "For the "average" woman of the
1950s, this model was meant to capitalize on her strengths as a housewife,
while allowing her, for the first time, an opportunity to earn her own personal
income...Women who were interested in selling the product would ask their
friends and neighbors to host a party, offering a lovely piece of Tupperware as
an incentive gift. The neighbor would invite her friends for an evening of fun,
games—and direct sales. The more Tupperware that was sold that evening, the
more money the saleswoman would make."
The article continues, "Employment
opportunities for women, especially wives and mothers, during the 1950s and
'60s were limited. The Tupperware team understood this and built a highly
incentivized system that rewarded women who performed well with cars, cash,
furs, jewelry, and other prizes. The party platform of selling made it easy for
wives to take care of their family's needs and still find time to maintain a
business."
This
legacy likely contributes to the fact that direct sales are still associated
with a predominantly female workforce - and why many of the products that have
succeeded with this business model have a predominantly female user base
(jewelry, cooking supplies, etc.). This is not to say that this can't change -
I think it very much can. With a product like wine, both men and women are
purchasers and users of the product. And society is changing in many parts of
the country - men and women are seeking out jobs with flexible hours and
self-defined goals. I think it makes sense for The Perfect Sip to target women
because it seems like a natural fit for starting and growing a new business.
But, I'd caution against leaving men out of the equation all together.
Sources: http://www.allday.com/why-1950s-housewives-and-tupperware-parties-were-actually-revolutionar-2180814764.html
Sources: http://www.allday.com/why-1950s-housewives-and-tupperware-parties-were-actually-revolutionar-2180814764.html
Nice overview natalie! I wonder how the negative connotations of multi-level marketing (MLM) creeped in over the years from tupperware parties, if at all ?
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