Hitmetrix - User behavior analytics & recording

Tupperware files for bankruptcy amid competition

Bankruptcy Competition
Bankruptcy Competition

Tupperware, the iconic brand known for its airtight plastic containers, has filed for bankruptcy. The company’s downfall serves as a reminder of the crucial role marketing plays in maintaining brand relevance and distinctiveness. Earl Tupper invented Tupperware in the 1940s, transforming how Americans store their food.

Women started selling the containers to friends and neighbors through “Tupperware parties.” The product quickly became ubiquitous. However, by the 1980s, as Tupperware’s patent expired, copycats emerged. The company struggled to keep up with competitors in recent years, leading to its bankruptcy filing this week.

Being the first to bring a product to market, known as the “first-mover advantage,” doesn’t guarantee long-term profitability. Companies that follow an innovator benefit from the established customer base and can learn from their predecessor’s mistakes. Tupperware fell into some common traps.

Competitors pulled ahead by offering higher-priced glass containers appealing to sustainability-minded consumers or cheaper, lighter alternatives.

Tupperware’s marketing missteps

Tupperware got stuck in the middle, not meaningfully modernizing its design while not being the most affordable option.

The company also didn’t sell products at traditional retailers or on Amazon until 2022, instead relying on the direct-sales approach that initially made it successful. The “Tupperware parties” that worked when fewer American women had jobs outside the home lost appeal over time. Tupperware said it plans to seek permission to continue operating during bankruptcy proceedings and has implemented a strategic plan to modernize operations and drive growth.

Despite Tupperware’s influence on American kitchens, many people may not notice if the company collapses. The term “Tupperware” has become synonymous with resealable food containers, even if those containers aren’t from the actual brand. This phenomenon, known as “genericide,” occurs when a brand name becomes so well-known that it replaces the product itself.

Kleenex, Band-Aid, and Ziploc are other examples of brands that have experienced this. Tupperware’s downfall highlights the importance of effective marketing in maintaining brand relevance, distinctiveness, and differentiation in an increasingly competitive market. The company’s bankruptcy filing serves as a cautionary tale for other iconic brands.

Total
0
Shares
Related Posts
E-Book Popup

Unlock the Secrets of Digital Marketing in 2024!

Subscribe to our newsletter and get your FREE copy of “The Ultimate Guide to Digital Marketing Trends in 2024"