Orlando-based Tupperware (NYSE: TUP) announced on Aug. 3 that it has finalized an agreement with its lenders to restructure its existing debt obligations.
In a prepared statement, CFO Mariela Matute expressed relief that the company now has the flexibility to continue turnaround efforts and act on its long-term omni-channel strategy.
Mention of an existing omni-channel strategy is a sign that Tupperware has been ready to move beyond antiquated marketing approaches it has been linked to in the past — like in-home sales — and embrace the methods that have sent other consumer brands skyrocketing. A closer look revealed that Tupperware already started acting on the new strategy before the debt restructuring.
In May, Tupperware posted its first audition announcement on Backstage, in search of women age 35-60 who could create prompted user-generated content. Robust content efforts go hand-in-hand with omni-channel, which indicates that Tupperware is walking the talk.
User-generated content is widely considered one of the best current solutions for marketing content, said Beau Bennett, director of experience for RevRoad’s Orlando office. “You see other publicly-traded consumer brands using it very effectively, like Celcius, which has seen a lot of growth lately. There is good reason to attribute at least some of that to the company’s [user-generated content] campaigns.”
Omni-channel is built to manage and fuel diverse content and sales channels, and CEO Dena Jalbert of Orlando-based Align Business Advisory Services says diversification is the name of the game.
“Tupperware started way back during the depression as a way to store leftovers. It was women who sold it in the home, but when women went into the workforce in the 80s, they lost their customer and their sales team,” said CEO Dena Jalbert of Align Business Advisory Services.
When it comes to distribution, she said, Tupperware will benefit from a hybrid B2B and D2C [direct-to-consumer] model. “They can still sell direct to consumer via e-commerce while going B2B in their distribution.”
Jalbert said more distribution channels is one way diversification can help the company grow, and another is a more diverse set of products. “It’s already happening. I found the Tupperware air fryer particularly interesting.”
The Tupperware Air Fryer 3Lit was made available in some Asian markets in late 2022.
“You have to remember that they do a significant amount of business internationally. Here there may be a certain stigma attached to Tupperware’s old-fashioned roots, but out in the world, the brand holds a lot of weight, especially in Asia, South America and Africa,” said Jalbert. “No matter where they are in the world — whether they are shopping on Amazon or AliBaba, consumers want everything at a low cost. Tupperware has to tap into that, even internationally. They need to find a price point that’s compatible with the competition.”
What is omni-channel?
Omni-channel is an approach typically seen in retail (including e-commerce) where distribution, promotion and communication channels are integrated on a content management platform like Sitecore or Oracle. Omni-channel strategies absorb customers into a network of text, email and social media engagement that keeps a brand’s e-commerce and in-store products top of mind, triggers sales and — one of the most coveted key performance indicators — retains customers for repeat sales.
What makes omni-channel so effective — and reports show that the strategy yields 89% customer retention — is that data between all channels is linked. An omni-channel platform tracks a customer at every point of the journey and saves the data to help the platform gain a clear picture of the individual customer's interests and optimize outreach to that individual based on past behavior.
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