Forecasting in Direct Selling Business: Tupperware’s Experience

FOreCaSTINg IN DIreCT SellINg buSINeSS: TupperWare’S experIeNCe by Omar Campbell The business of direct selling is very different from other businesses because, here, the level of sales depends very much on how the members of the Sales Force feel about the product and the promotion … sales in this type of business depend a great deal on the size of the active Sales Force and their productivity ... in September—the biggest sales month of the year—the sales level is further increased by offering higher discounts with somewhat higher prices. W W hen it comes to forecasting, the direct selling industry is unique. To understand it, one has to know what the direct selling business is and how it works. How does it differ from the retail industry? Here, the emotions of the Sales Force members play a very important role. The sales sharply rise and fall depending on how the Sales Force members feel about the product and/or the promotion. HISTOrY OF DIreCT SellINg In direct selling, sale of consumer products is made directly to consumers, though the model used to sell varies. Avon uses one model and we use another. In the case of Avon, the salesperson goes from door to door to make ...