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Published byCharity Stewart Modified over 5 years ago
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Melanie Bauer Adam Broka Hannah Gorman Samantha Kautz Emily Youngblood
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Agenda Company Overview Customer Base & Competitors Growth Strategy
Strategy Execution Financials Conclusion
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Company Overview Founded by Earl Tupper in 1946
First company to manufacture and distribute plastic containers for food storage - Sells eight product lines in nearly 100 countries Company mission statement and goals/values
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Customers Women/salespersons
Generation X cohort & baby boomer generation Direct selling technique
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Competitors Lifetime Brands, Inc. Kitchenware Cuisinart Farberware
Avon Products, Inc. Newell Rubbermaid, Inc.
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Competitive Advantages
8 unique product lines First company to manufacture & distribute plastic Superior research & development capabilities
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Growth Strategy Societal trends in the U.S.
Integrating current healthy eating standards into the lunchbox - Targeting: Young to middle-aged women & tweens Positioning: Price, high quality & innovative design
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Strategy Execution Product: TupperBox Five plastic containers
Cloth bag in a variety of colors Side pouch for utensils and drink Informative pamphlet guide
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Strategy Execution Place Direct-to-customer method
Distributorship granted to only a few groups Available through online store Ineffective and costly to distribute through traditional retail locations Distributed through United states originally 2005 tried to distribute through traditional retail locations, loss more sales than they gained, took away from direct sales method
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Strategy Execution Promotion Personal selling
Demonstrations at Tupperware parties Sales promotion Premium method—informative pamphlet Advertising Catalogs, brochures, online retail store
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Strategy Execution Price Status quo pricing objective
Premium price because of high quality Each lunchbox priced at $35.00
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Base Case 5 year project life $1,393,260 revenue $2,500,000 investment
75,378 units $35 price/unit, $9.13 cost/unit $1,393,260 revenue 5% growth rate, 3% decay rate - $546, % % IRR Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 NET CFS -$2,500,000 $246,340 $472,251 $924,087 $1,053,458 $1,342,288
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Scenario Analysis NPV - High volatility in results Worst Case
Base Case Best Case NPV -$2,172,443 $546,341 $4,275,553 - High volatility in results
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Sensitivity Analysis Increase/Decrease Variables by 20%
Normal S.D. is 78.67% Most sensitive variables Price per unit Sales volume Acceptance Justification ROA: 11.84%, ROE: 43.59% + 20% Price - 20% Price NPV $1,965,097 -$872,415 + 20% Volume - 20% Volume NPV $1,404,256 -$311,559
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Conclusion
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Any Questions?
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