Segmentation Targeting And Positioning Stp Marketing Essay

Introduction

In this written assignment, we had chosen Tupperware Malaysia in the consumer market. We aim to analysis and write a marketing report for Tupperware Malaysia such as background of the company, marketing strategies, marketing environment, marketing mix and proposal. The purpose of writing this marketing report is to help us understand what marketing is about and how Tupperware Brands Corporation Malaysia manages to survive in the competitive market and to be outstanding among all other companies with different strategies and ideas.

Company Background

Tupperware make known to public at 1937, chemist and inventor Earl Silas Tupper worked in DuPont’s Chemical plant, developing experiment with using plastic. He found a method to purify petroleum based by-product into substance that was elastic, tough, non-porous, not greasy, odorless and semitransparent. In the late 1940s, a single mother who named Brownie Wise without formal sales training started selling products of Tupperware by way of home parties with great success. Since then Tupperware Parties turned into a cultural phenomenon. The home party decided to remains the core of their businesses, providing customer better services and offering individual with exciting experience and attractive business opportunity.

SEGMENTATION, TARGETING AND POSITIONING (STP)

Segmentation, Targeting and Positioning (STP) process is a method in which the whole markets are classified into different segment. With the obvious rising of mature market, the diversity of customer needs, and the ability to capture the niche segments, the use of STP will be more frequent (Oxford University Press 2012).

Segmentation:

Focus comparatively more attention to specific segments rather than other segments is necessarily task for most of companies in order to serve their target market better. Based on the Tupperware, Tupperware Brands Corporation has segmented their customers using two main categories: demographic, psychographic. First of all, Tupperware Brands Corporation focuses on the demographic factor in separating the Tupperware markets, which is gender. Therefore, Tupperware Brands Corporation focuses the Tupperware mostly on women but also produced the bottle which can be consumed by male customers. Besides, is the Phychographic factor which is lifestyle. Tupperware are aimed for people who have a good habit lifestyle. For example, people who concerned about the condition of the earth will be more likely to buy Tupperware for achieving the practice of Reduce, Reuse, and Recycle.

Targeting:

It is a process of separating a market into segments and then concentrating the marketing efforts on one or a few key segments. It can be the key to determine a company business’s success (Susan Ward, 2013). The usefulness of target marketing is that it will make the pricing, promotion, and distribution of the company’s products as well as the services more readily and more cost-effective. A focus for all the marketing activities will also be provided by implanting Target marketing.

Tupperware uses a differentiated marketing strategy. As we know, Tupperware product can be used by any gender. However, most of the sales force is women. For example, women are more often in using Tupperware product for home use compared to men, because the former president of Avon believe that what’s good for women are good for business. By offering product and marketing variations to segments, Tupperware can get a higher profit and a stronger position within each market segment.

Positioning:

By finishing the two steps which are segmenting the market and selecting specific target market, positioning is the final part of STP process. Tupperware tend to maintain their position as the premier, global direct seller of quality, innovative products.

They often stimulate confidence of their association, sales force, customers and investors. Tupperware also trying hard to continue to literally change lives, especially women’s, by enabling their customers to reach their full potential.

4.0 Marketing environment

The marketing environment refers to the factors that affect upon the organization. There are three key elements for marketing environment which are the government factors, political and legal factors, economic factors, technological factors, social factors and competitive factors.

Government Factor

Tupperware Brands influenced by other actions of governments to restrict the activities of direct selling companies for miscellaneous reasons, including the limitation on the capability of direct selling companies to operate through direct sales without the involvement of a traditional retail channel. Besides, foreign governments may also seek to require that non-domestic companies doing or seeking to do business place a certain percentage of ownership of legal entities in the hands of local nationals to protect the commercial interests of its citizens. Customs laws, tariffs, import duties, export quotas and restrictions on repatriation of foreign earnings may negatively affect the Tupperware Brands international operations.

Political and Legal Factors

The materials and additives of Tupperware must exceed US Food & Drug Administration (FDA) & Japan Polyolefin Hygienic Association standards. Besides that, colour that colorants must register on the French Positive List, Circular Letter No. 176 (the most stringent in the world). Any Tupperware products sold in must achieve the standard requirements of safety and do not contain any harmful material and additives. All products have passed stringent tests and are built to last.

Economic Factors

Economic factor in the marketing environment influence both marketers’ and customers’ decisions and activities. In economic factors, we examine the general economic conditions affected by purchasing power and the willingness of people spending on Tupperware. Tupperware Brands’ sustainable economic development provides thousands of individuals a distinct business plan. For instance, Tupperware Brands also provided a plan ‘Get a 2nd Income’ which could supply individuals an extra $500 a month without the need for them to get a second job.

Technological Factors

Tupperware Brands used polymer technology by establishing professional relationships with Resin manufacturers, universities, professional societies and consulting organizations. To ensure that Tupperware meets or exceeds all global regulatory requirements for polymers, additives and pigments and where required, Tupperware Brands works with Quality Assurance, to approve or certify appropriate materials and also make sure that Tupperware is on the forefront of the newest developments and technologies. By developing new materials and improve the performance of current materials resulting in new and innovative products it helps to support marketing and manufacturing process.

Social Factors

The social factors are affected by the willingness of consumer to consume a product. Nowadays, health problem, price and conveniences will be the factor of consideration before consumer plans to consume the product. Therefore, they started to do comparison between few products by the material and design. Research shows that Tupperware Brands customers will be the first choice of youngster and adult. This can explain why we can see Tupperware Brands product in everywhere.

Competitive Factors

Newell Rubbermaid (NWL) is a diversified manufacturer and marketer of a variety of high-volume brand-name consumer products. The Rubbermaid group makes such products as various kitchenware products, Home & Family products, Office Products & Tools, and Hardware & Commercial Products. Key brands included Rubbermaid, Curver, Little Tikes, Graco, and Century.

Lifetime Brands (LCUT) is a producer of nationally branded food preparation products, table top products and home decor products. Key brands included Mikasa , KitchenAid , Farberware , Cuisinart, Wallace and Pfaltzgraff .

Many corporations also provide the same product line as Tupperware Brands such as Newell Rubbermaid and Lifetime Brands. These competitors having the same target market and they compete with each other to monopoly the market. To success in the market and able to compete with other companies, the corporation has to be outstanding, either in products, services or price to attract people to choose you among all of the competitors. Marketers also need to monitor the actions and strategic of the competitors to determine how they affect their own in order to survive in the market.

Marketing Mix

5.0.1 Product

Product refers to the goods, services or idea received in an exchange (Hult, Pride & Ferrell 2012). Tupperware Brands Corporation Malaysia provides goods such as Water Filtration System, Tupperwarechef inspire series for kitchen usage and Tupperware for storage. Besides, there is Tupperclean series for house cleanness, personal cleanness and also for vegesafe. As for Health care section, they offer Nuturcare series such for Organic Lacto-Fiber, Colostrum + DHA Chews and etc. Other than these, they also developed a section which is called Nutrimetics which provided variety beauty products for women.

By doing so, Tupperware Brand makes a point of introducing their products to attract different customers and creates higher revenue. Thus, products of this company succeed in creating a whole new market and new customer level by offering more choices for customer. For example, beauty products, Health care products, cleaning products and Tupperware. In order to achieve their goals, the company strives to engage for developing new ideas, new products, and also new experiences for both the loyal and new customers.

Tupperware Brand Company started up their business by developing Tupperware which is known as household product. Therefore, they provided different types of Tupperware for satisfying needs and also different sizes for costumers based on the sizes of things that they try to store.

Tupperware value –

Quality: Tupperware Brands Company started up their career by providing convenience for customers, they offer affordable price for customers without compromising the quality. Tupperware products are aimed at people who need more conveniences but with more saving on consuming certain products. As for safety assurance, strict inspections are also done with the Tupperware therefore they are good to be consumed. With maintaining the best condition of Tupperware, they are trying to keep themselves as customer preferred option among all others competitors who are also producing the similar product. Besides, they are also holding odds as their Tupperware products are well-known in the market in their Lightweight, Resistance to Impact and Air Tight Properties.

Packaging: The packaging of Tupperware is simple and can be fairly seen by customers even when the Tupperware still in packaged (Refer to Figure 1). For all the products, they applied the element which features cobalt blue for the Tupperware brand and take the globe shaped fountain of corporate headquarters’ for the iconography (Refer to Figure 2). The color system features the Tupperware brand cobalt blue. This design of packaging uniformity and creativity design has excellence in attracting attention to really show off its brand and packaging graphics, it makes customers more likely to view their Tupperware products instead of other competitors’ products. Besides, the Tupperware Packaging system of this company also chooses to create from scratch for products that had never been sold through retail outlets. This kind of packaging system enables Tupperware to be consumed in lighter, small, and portable way.

Labelling: The products labels are enclosed in triangles on the bottom of plastic bottle and container so that customers can view it easily. The triangles are called as Mobius loop while the materials used to manufacture the product are represented from no.1 to no.7 (Refer to figure 3). The Material Identification Code which is an internationally adopted system helps recyclers’ identify the resin content of Tupperware plastic products by sorting them accordingly but the numbers do not indicate whether the plastic is safe.

Branding: As Tupperware is the most remarkable plastic container product, it affected people to serve most of the others plastic container as Tupperware. For example, a supermarket is selling Rubbermaid brand plastic container, but most of the people will call it Tupperware without viewing the brand. This result that Tupperware Brand is having an advantage of owning a higher fame compared to others brand plastic product. Therefore, Tupperware Brand is very successful in branding.

5.0.2 Place

Direct Selling Opportunity

Tupperware’s products are selling through the “direct selling” channel which products are sold to consumers outside traditional retail store. Products are selling to consumers without work through intermediaries. This method offers consumers a personal and convenient way to purchase products.

Tupperware encourages its sales team through a program of sales promotions, sales training aids, and motivational conferences for the sales force. Independent contractors who market products directly to consumers are included in the sales force. Tupperware’s strategy is expanding its business by increasing the size of its sales force. Under this system, distributors and directors recruit, train, and motivate a large number of dealers. Therefore, managers are developed from among the dealer group to assist in recruiting, training, and motivating dealers, while continuing to sell products.

Tupperware allows people to discuss prices, options and benefits of the Tupperware products (Refer to Figure 4). People will consider the store moving into the house without the risks of online shopping. Asking the sales person about the concerns and questions might help people to ease your mind and decide if the price of the products is affordable enough for the benefits it offers. (Refer to Figure 5)

The most successful early direct seller of Tupperware was Brownie Wise, a Detroit secretary and single mother. Tupperware hired her in 1951 to create a direct selling system for his company. Within a few months, Tupperware had established the subsidiary Tupperware Home Parties and had abandoned selling his products through retail stores.

Tupperware created a means for the housewife to maintain her obligations in the domestic sphere of the household Tupperware has provided a venue for housewives in the early 1950s to earn their own income and enjoy themselves in the company of other women through Tupperware parties.

5.0.3 Price

Tupperware Brands are using bundle pricing strategy for customer. Which means they package two or more items and to be sold at a single price. Customer would think that it is reasonable to buy in a bundle set than a single thing because of the price. It can also fostered customer loyalty by providing them different kinds of bundle products for them.

Besides that, Tupperware Brands also priced their products according to the festive events which are called as special-event pricing. For example, Tupperware Brands offered some special offers for some of the products as the Chinese New Year celebration.

Tupperware Brands also uses the reducing prices of their products. With the reducing price of the products, customers can buy more with the same value of money. It also helps to attract more customers to buy the discounted products.

It is very important in order to produce a form of income which is a large consumer base. As a result, you will generate revenue through retail commissions and bonuses. Here are some ways to market Tupperware kitchen products:

Social Network: Tupperware kitchen supplies the use of the social networking market is a great way to get exposure. Facebook social networking is useful that you can connect a number of millions of people. Most people want to shop online for their products, your site is very important to allow them to visit at any time convenient to. (Refer to Figure 6)

Online Marketing: Tupperware kitchen products effective online marketing is a great way to gain recognition. Internet will expose you to a large audience; it is up to you with some strategies to attract more customers. There are two ways to help people find you, instead of pursuing their help. (Refer to Figure 7)

Bring Value to your Products: Nowadays there are so many disposable products are the same, this is a very important part of Tupperware products. Tupperware products are more cost effective and durable. Party shows your guests not just the Tupperware kitchen products. At the same time to show them an alternative to use to ensure that they have a deep understanding of the value of Tupperware products. (Refer to Figure 8)

5.0.4 Promotion

Facebook Fan Page

The Facebook fan page was built specifically for the product and its main aim was to provide a community site on the largest social networking community on the planet that would engage and then share. To build up the fan base that provided critical mass to share an excitation to “Like” the page by giving away a Tupperware. (Refer to Figure 9)

Game contest and Quizzes

Tupperware Brands made a game contest and took it online and provided it in three channels (Facebook, YouTube and its own website). Tupperware Brands named the game “Watch and Win”, and giving out an exclusive gift for 30 lucky winners who answer all the questions correctly. (Refer to Figure 10)

YouTube

Tupperware Brands used video to broadcast its product and drive views to its video assets. Promote the product by using the video that show the ways to use the product and how it’s actually shape like. This will make the consumer get more information about the product and maybe will more interested on the product then purchase it. (Refer to Figure 11)

Blog

A blog is a powerful tool to promote a business, products or services simply because it allows us to connect with a community and exchange feedback which improves the business and practices. Tupperware brands have also set up a blog to popularize their products by displaying all the Tupperware photos. This may help us to promote our products with low costs advertisement since some is free-of-charge blogging website. Besides, consumer can also look for their preference products without going to the Tupperware brands company. (Refer to Figure 12)

Catalogue

Catalogue is a publication which containing the details of the products such as prices and the images of the Tupperware products. Moreover, it also comes with the promotional offers’ information of the company products and one of the benefit of catalogue is it helps to save the amount of time of consumer. Simply because consumer just have to flip through the catalogue to look for their desirable products and need not purposely go to the company. (Refer to Figure 13)

Photo contest

Photo contest is also one of the ways of promoting Tupperware. In 2013, Tupperware brands have organized a photo contest with the title “Rice for life contest”. In this case, all the participants just have to take a creative photo with the Tupperware Rice Dispenser. The most creative participant with most likes of their photos will get the latest products of Tupperware brands. Through this contest, it enables people get to know more about the products and company. (Refer to Figure 14)

Recommendations

Tupperware marketing strategies are one of the factors which made them to be outstanding and standing on the top of the plastic container business. Nowadays, Tupperware Brand Company provides the home use plastic container, but also trying their best on upgrading health care products as well as on the cosmetic products. From my point of view, the visibility of health care products and cosmetics products is not enough for making them higher profitability.

Besides, Tupperware product should also regard on male customer not only selling cosmetic, but also selling skin care product for male too.

Other than that, consumers no longer only concentrate on the quality but also outward appearance. So I recommend that Tupperware branch should have different kind of design to attract more customers especially for those customers who wish to catch the trend. Therefore, Tupperware may get a new fashionable image which is suitable for all ages.

Lastly, Tupperware Brands should organize more promotion event and activity such as selling family package; “buy more with more discounts” events and also get membership voucher that can only enjoy by the membership with cheap purchases. Last but not least, conduct more activity. For instance, lucky draw for customer and charity event which can take part as advertisement, strengthen up the relation between seller and consumer and build up a good image to the society to increase customers and sales.

Conclusions

Tupperware Brands Corporation marketing strategies are one of the factors why Tupperware Brands Corporation can be outstanding and able to compete with other company in the market. Tupperware Brands Corporation can be considered in a maturity stage and still continue growing around the world. It is not easy for such a big business manage to survive and success in the world. Through this report, we learnt more about marketing and it also has helped us to understand more about STP (Segmentation, Targeting, Positioning), 4Ps (Product, Price, Place, Promotion). We hope that our recommendations will be useful. Lastly, we appreciate our tutor, Ms. Christina Lai for guiding us patiently and giving us some useful information.