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Embed code for: 21.1 Marketing Application 1
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DO NOT WRITE ON THE PAPER! 1 CHAPTER 21.1 Channels of Distribution Marketing Application 1 DIRECTIONS: The following news briefs on Tupperware are related to distribution planning. Read them and answer the questions that follow. Tupperware and the Home Shopping Network In May 1999 Tupperware entered into an agreement with the Home Shopping Network to air television specials to sell Tupperware products. Tupperware Corporation, a $1.1 billion multinational company, is one of the world's leading direct sellers and the major supplier of food storage containers, with premium products reaching consumers in more than 100 countries. Tupperware's core distribution policy makes use of an independent sales force and a home-party format for selling. The Home Shopping Network program will replicate that format and feature specials from home shopping parties happening across America during each broadcast. Tupperware's sales consultants get paid a 35 percent commission on sales, plus other bonuses and benefits. They are required to purchase a sample kit when they first get started, which costs around $55. The Home Shopping Network is the pioneer in electronic retailing. It has 24-hour programming reaching 70 million households. 1. According to the above news brief, what is Tupperware's core distribution policy? 2. How would you classify Tupperware's independent sales force? 3. The news brief addresses an agreement Tupperware has with the Home Shopping Network. How does that agreement alter Tupperware's traditional channel of distribution, if at all? Tupperware's New Web Site In August 1999 Tupperware announced the launch of its new Web site, which allows consumers to purchase Tupperware products online. Special links include planning a party, recruiting new sales people, and identifying U.S. distributor locations. This new channel of distribution is expected to support Tupperware's core selling method utilizing sales consultants, compliment its mall kiosk program, as well as its relationship with the Home Shopping Network. 4. How does Tupperware's venture into online selling change its basic channel of distribution philosophy, if at all? 5. If you were a Tupperware sales consultant, how would you react to Tupperware's Web site? Why? Tupperware's Sales Consultants and the Internet In April 2000 the Tupperware Corporation announced a special program for its 75,000 U.S sales agents to bring them low cost Internet access. My.tupperware.com is a Web site specifically designed for use by Tupperware's sales consultants. Special software permits them to personalize their Web sites with product information and promote Tupperware parties. Online sales will go through Tupperware's main Web site, but consultants will earn sales credit and commission on all sales that originate from their personal Web site. 6. How does Tupperware's new service, my.tupperware.com, help its sales consultants?