DTC655: Tupperware Parties Are Over

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Here’s what you’ll find in today’s DTC:

🥣 Why Tupperware’s lack of product innovation and differentiation in a competitive market led to its bankruptcy.
🍸 Funkin Cocktails rebrands their Double Shot line so their drinks appear more premium and gender-neutral.
✍️ And…hold on a second, are you suffering from shiny channel syndrome?  

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🥣 The Rise and Fall of Tupperware

The iconic 78-year-old brand surprised the public last week when they filed for Chapter 11 bankruptcy after suffering financial woes.

Once a leader in the food storage space, Tupperware admitted that although they were a household name, it failed to stand out against today’s competitors.

So, how did it lose relevance?

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How it all started 👇

When Tupperware debuted in 1946, they revolutionized the food storage space with their lineup, launching the best-selling Wonderlier Bowl featuring an airtight seal.

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In the 1950s, the Tupperware brand became more well-recognized when they introduced the Tupperware Home Party system.

Using a direct sales approach, women were recruited to sell Tupperware products through social gatherings dubbed Tupperware parties, and the company’s growth skyrocketed. 📈

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The problem 😞

But while the brand name was well known, it also became synonymous with any food storage item.

There was no clear point of differentiation between their colorful containers and their competitors.

Their air-tight seal, which was originally seen ahead of its time, was now a basic feature for any brand in the ultra-competitive food storage space.

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Here’s 3 other reasons why Tupperware failed:

• Didn’t adapt to changing consumer preferences: Rather than relying on plastic containers, consumers today are looking for environmentally friendly alternatives.

This made Tupperware’s products seem outdated and at odds with customer needs.

• Late to the ecommerce game: While the company’s direct sales model contributed to its early growth, by the 90s, consumers were starting to prefer online shopping.

Tupperware launched an ecommerce site in 1999 but was adamant that selling online would not replace their traditional core selling method.

• Post-pandemic financial woes: The brand’s declining sales and attempts to revitalize the business failed.

During COVID, the cost of raw materials like plastic resin skyrocketed, contributing to their mounting debts.

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The takeaway?

Failing to innovate in your category can be detrimental to your success.

Tupperware’s decline shows how important brand building and product innovation are when it comes to staying relevant and competitive in your niche.

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🍸 Funkin Cocktails Debuts Gender Neutral Packaging

Funkin Cocktails just made a big packaging change to their Double Shot range just in time for their 25th anniversary.

Previously, Funkin’s packaging was bright and colorful, featuring playful fruit and flavor icons that appealed to a younger audience.

👉 This vibrant design aligned with trends favoring bold colors and eye-catching illustrations.

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The new branding, however, adopts muted neutral colors with no icons, creating a more refined and gender-inclusive look.

Ben Anderson, the Marketing Director at Funkin Cocktails, explains, “We’ve created a premium, gender-neutral look that appeals to those who value quality and sophistication in their drinks.”

This shift seems designed to attract an older market, positioning Double Shot as a premium product. While the simpler design offers a sleek update, it contrasts with the vibrant style that initially drew a younger crowd.

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Here are the design tweaks they made:

Prominent badge: One of the biggest design changes they made is to include a 14% ABV label to highlight the bar-quality strength of their canned cocktails so customers can replicate the cocktail experience at home.

Bigger and bolder font: The new sleek black packaging gets rid of their visual icons so they can display the product name, alcohol content, and flavor more prominently.

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The verdict?

We have mixed feelings about this rebrand.

Overall, Funkin’s rebranding decision is a bold move towards greater inclusivity and a more mature market. If the new design is limited to the Double Shot variant, it allows for segmentation within their product line.

However, if the new muted design is extended to all their offerings, Funkin will need to strike a careful balance between sophistication and the playful identity that has been a key part of their brand’s appeal.

🌐 IN THE SOCIAL SPHERE

Do you suffer from shiny channel syndrome? 🤔

It’s easy to get caught up in wanting to test out a buzzy new platform but determine if it's worth it first before going all in.

Set goals and determine if the channel can benefit your business before allocating resources.

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Have you heard our latest podcasts?

• ✨ The Art of Storytelling with Niclas Bornling from Craft Sportswear
• 👻 AKNF 439: Crush Your Halloween Campaigns on Meta!
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• 📧 AKNF 437: Mastering Email Marketing with Quadrant Framework
• 🐶 Ollie on The Role of Brand in Scaling a Pet Food Company
• 🦆 AKNF 435: Stocking the Pond and Planning for Q4

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

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