Marketing plan for bailey's in irish market

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Executive Summary

Traditionally Bailey's (Irish cream) liqueur is a mixture of whiskey and cream, with dash of chocolate. Bailey's is very popular brand in Ireland due to its originality, people known as Irish cream. In the new century, according to a research the company observe that the brand is become old fashioned and safe, and boring. To cope these issues the company have to follow a strategic objective.

To rebuild the brand for younger generation

To advertise more to attract both gender

Bailey's currently is in 5% in growth in the Irish market. Bailey's will see a large proportion of sales 11% to 13% overall in terms of its main objectives in the coming two year. Due to the new winter and marketing campaign should help and broaden Bailey's appeal in different market. The purpose of this report to expand the market share and see future growth of bailey's through different marketing strategies. This report has four parts, the first part of the report introduction and detail about market situation, the second part is about SWOT Analysis, the third Part is about Objectives and Strategies, and the last part is about Action Plan, Control Method and conclusion.

Part l


Bailey's is one of the seventh largest selling premium liqueurs in the world. Bailey's is serving over 130 countries in the world. In 1974, when bailey's launched, the consumer never tasted before. Bailey's is luxury drink, with natural taste and ingredients with pure combination of fresh dairy cream. Bailey's has a very strange smell, almost like an alcoholic vanilla ice cream. Due to its waste marketing and brand bailey's sale are 150,000 cases a year.

Situation Analysis:

Market Demand

Ireland is small and dependant country. In 1995 to 2007 the average growth of the country was 6%. But in the early 2008, the huge recession came in to the market by which the country's financial position subsequently severe and slowdown. The total population of Ireland is about 4.2m estimated in 2009. According to a survey 67% of the population are 15-64. More than half of the population are younger. APENDEX1.

Alcohol is essential part of the Irish people. Alcohol is the leisure activities and life events, with the pub and acting as a hub of social life. However, Ireland is the highest level of drinks consumption market. According to Carew et al 2009, says in 2007, 13.37 litres of alcohol were consumed for every person aged over 15. (Carew et al., 2009) People drinks a lot during and after the game in Ireland for example football, hurling and rugby. People also celebrate on different occasion. Such as on the Christmas and New Year celebrations in Ireland have reputation for being rude with a lot of drunken individual's migrants around the streets.

According to a report, In Ireland the alcohol consumption has been raised to 17% from 11.5% over the last decade, where woman are drinking more than men. As compare to European communities drinking problems, among students aged 15-16 years, according to a report, Irish youth among the highest risky drinkers, (Hibell, 1999).


Alcohol consumption, Liters per capita (15+)









2007 2008









































14 17*
















According to Danny McCoy that Irish are drinking like fish. In addition it is report estimated that 70% of alcohol in Ireland is bought in pubs and restaurants. This is because the Irish people are considerable drinking in pubs and restaurant instead of home as compare to other European. Bailey's is one of the seventh largest liqueur in the world and selling in over 130 countries including Ireland. In the early century mostly female age 45-55 drinks bailey's on special occasion, such as Christmas and other parties. In Ireland People drinks Bailey's in very small amount and mostly drinks in winter. In addition, in 2007 the winter awareness campaign urges consumers to ‘Listen to Your Lips' use the lips to evoke the sensual pleasure of Bailey's and inviting viewers to follow their own desire for the brand. The company spend about £25m on brand, which include different advertisement campaign, digital marketing. Bailey's available in the market with a high premium price and mostly targets the female market and becomes female drink, but in fact the advertisements are not specifically toward them. Bailey's liqueur is one of the famous brand of Diageo's including other branding such as Guinness, whiskey, Black label, Red Label, etc.


“In order to prepare an effective marketing strategy, a company must consider its competitors as well as its customers. Building profitable customer relationships requires satisfying target consumer needs better than competitors do. Therefore competitor's analysis first involves identifying the company's major competitors using both an industry based and a market based analysis.

Principles of marketingBy Philip Kotler, Gary Armstrong Veronica Wong John Saunders Fifth European edition page 488 part 3 chap core strategy.

Bailey's has a strong competition in the Irish market. There are also several imitators in the market which entered into the market. A number of competitors are entered into Irish market with price and brand, by which many Irish people responded quickly, such as W.A. Taylor Company's ‘Venetian Cream Liqueur' ‘Myers Rum Cream'. In addition, Bailey's facing a slogan challenge in Ireland. Some other Irish liqueur producer came with the promotion campaign of ‘Irish taste in the entire world'. In Ireland, the leading tipple is vodka, and expected to increase their sale in future. Vodka is the main rival for Bailey's, because people like Vodka in pubs and clubs. Also in liqueur competition another new value brands included, Irish distiller's ‘Waterford Cream' within group of Pernod Ricard, compare to Baileys is lower price margin. While Bailey's has maintain a premium price and high quality and low level of alcohol (17ABV)

Another Irish liqueur (Irish Meadow) which is completely the same taste as Bailey's but far cheaper than Bailey's. Irish Meadow price is £3.49 per 70cl bottle in supermarket while Bailey's 70cl is £10. However, people preferred to buy Irish Meadow instead of Bailey's.

"Diageo has attacked Tia Lusso aggressively with pricing, particularly last Christmas. We interpreted that as a move that was designed to kill us off."

Part ll

Swot Analysis

There are a number of strength and weakness of the company in terms of the product and its brand. In Swot analysis the company will identify their strength and weakness and put the company in a crucial situation to seek those weakness that swot analysis shown put the company in serious competitive disadvantage.

Market Leader

Bailey's is globally the market leader, Due to its high volume of advertisement and wide range of marketing campaign in and around Europe. Currently Bailey's available in Top ten markets, Such as US, Russia, Ireland, Spain, Latin America etc.

Bailey is also the most famous and 7th popular liqueur brand in all over the world. Bailey's is sold over 130 countries around the world.

Bailey's is the brand which Establish and capture all western market.

Due to its high volume the production cost will be lower than its competitors. Because Bailey's produces more than 7.5 m cases a year.

Bailey's has loyal customers from its origin. Bailey's consumers are committed with the brand. The company also provide a high quality and bring the originality to the product in terms of what the consumers expecting.


Bailey's has also some weakness, in terms of the production, consumers usually buying Bailey's liqueur on special occasions, such as Christmas etc. Bailey's also a seasonal product, In Ireland, where people only consume in winter. In addition, Bailey's is a logistic packaging and brand perceived old fashioned.

External Analysis


The company will have the ability to rebuild the brand in the existing market (Ireland). Bailey's also has an opportunity to extend the market and appeal to younger people. The company can give aggressively discount in the market.


In Ireland, there are a lot of competitors in spirits market. However, Bailey's have big threats from its competitors such as Emets, Irish meadow, Kalyr, Amarula etc. RTD and Amarula have attacked on Bailey's aggressively with pricing.

Part lll


Growth To increase the market share and increase our sale to 11% to 13% over the next two years, the more that they show to the public that they were the first and that they are still the best, the better chance of gaining some of the existing market share from the competitors who have already got much share of alcoholic market.

Brand To expand the brand in different segment, such as age, sex, profession, etc to do this, the company will have to do a lot of advertising campaign such as like a recent advertisement “Serve Chilled” and also some tasting promotion in different supermarkets. Bailey's should not try to narrow their target to young to middle age, also focus on middle class people those who drink bailey's slightly. We aim to achieve 80% customer awareness of our brand in our target market within the next two years.

Change consumer Perception, As Bailey's is a special occasion drink, In order to achieve future growth this perception need to be changed and to be drank on more informal occasions. By this goal the company will have look forward to increase their sales to become Bailey's as a usual drink.

Financial Objectives

  • Annual organic growth in revenue of at least 10%
  • Growth of the company within next 2 or 3 years.


“Strategy is direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resureces within a challenging environment, to the needs of markets and to fulfil stakeholder expectations”.

Johnson & Scholes Buniness strategy, vol. 25, no. 3 (2004), pp. 26-34.

Marketing Strategy

There are four different marketing strategies, baileys can adapt these strategies by which they can gain more market share and strong their base in the current alcoholic market.

  • Market Penetration Strategy
  • Product Offering Strategy
  • Business effectiveness Strategy

Market Penetration strategy

Market penetration strategy is business growth strategy where bailey can focuses on current sales and establish their product into the existing market. By this strategy Bailey's will maintain and increase the market share of a current product. This can be achieved by a combination of different promotion programs like advertising, sales Promotion, coupons and offering free samples.

Product offering strategy

Bailey's currently have many varieties of product offering in the Irish market. the product offering strategy is that by coming with the renovation of the product in the exiting market for example considering the different ages different taste needs like (Pepsi is that soft drink which is drink by any age group).


Target Marketing

Bailey's target its geographical priorities in terms of major regional country where it operate. The lifestyle dimension changes and was beginning to attract a young and more affluent consumer in the 25 +age group with a fairly male and female. The baileys offering the products which are not for any specific class, it produces its products for all types of classes which exist like upper, middle, lower. The Irish population demographics show that there is availability of narrow target market it's the young to middle-aged group consumer they are professional and educated. In addition, if the company specifically target the female, there is also availability of more female alcoholic consumers than male; they need to target the both gender. As a party drink, Baileys also need to promote their brand in different special occasion, such as parties wedding, Christmas and new year.


As bailey's is original Irish cream, the more you show to the public the more you expect to sell. Due to the uniqueness Bailey's liqueur is different from its competitors. Bailey's make a strong position in consumer mind due to its fresh cream and homemade production in Ireland. Baileys positioned itself in the consumer minds that they are the only liqueur homemade brand which use only daily fresh cream is the (principal raw material used in the production of Irish cream liqueur).


Bailey's offering different variety of product. Such as Bailey's Original, Blended Baileys with ice, Bailey's coffee, Bailey's ice cream, and Bailey's Chocolatini, to expand their market Bailey's needed to bring and introduce a new flavour with different taste. For example strawberry flavour, cherry's flavour.


Bailey's premium brand, these prices are set accordingly to the brand and position of the product. Price wise neither Bailey's cheaper nor expensive, due to its uniqueness and taste and originality. Bailey's is different in price quality and brand from its competitors.


Bailey's Irish cream continued with successful growth in supported by strong investment in sale support and campaign. In the street of Ireland, sellers walk around and distribute free cigarettes in bailey's bag. They have to arrange stalls in different superstores to offer free sampling of Bailey's to adults. Specially, the best time to promote Bailey's is now, where lots of people coming to do shopping for Christmas. They also have to reach to the individual retailer and give them some incentive to place Bailey's in Front shelf, where consumer can easily see and deserve the Bailey's Brand.

Part lV

Action Plan

Doing business in the country where the market is already developed by strong production line has the great opportunity to maximize of its market share in the alcoholic market. The people is well aware of the brand homogeny of the brand has been dominant on their competitor offering. The baileys is to establishment of long time achievements goals is by training their staff accordingly to the culture of the Irish people and the special and unique brand awareness programs, To conveying the image of the brand in the mind of the people properly.

The sales and distribution staff will be force towards the targeted sales in those areas of the country where they are not yet been develop their business successfully should introduce the brand and offering different vouchers with the free samples of bottles.

The company need to go to superstores and also the individual retailer and speak to them about the brand and arrange some stall with free sampling of Baileys to adults. By doing this promotion especially nowadays (before Christmas) Bailey's will be promote all over the country. They also need to place the product in the door of the supermarket, where every consumer can easily see the Bailey's.

The usage of E business (electronic business) is essential for doing business in the competitive market there should be new offer on baileys drinks online price discounts, gifts vouchers, and make the internet usage as easy for the online customer. Connivance is to be the main core of the company performance to associate the customer and give online shoppers the 24 hours delivery service should be available, get linkage the potential online customer to company performances throughout the year and get the maximum sales return.

As the company already doing High investment on consumer promotional programs (for example, licensed bars and restaurants) for example, take a Model girl as Baileys girl in selected bars and clubs around the country and giving a chance to the customers to enjoy the unique taste of bailey's free. The Baileys girl dress should be look like a Bailey's Bottle which will attract more youngster customers. The company also need to promote the products in the public places such as airports, railway stations, and bus stations.

The brand patents are important competitive edge no competitor can match the way the quality of the baileys product. The brand is perceived as old fashioned and boring, to change the consumer perception and attract the youngster, Bailey's intend the brand affixing with agitation thrilling imputes. For example the brand influences the youngsters to have a glass of baileys at first sight. The brand personality should base on agitation and magnificence behaviour, by which brand will change the consumer mind towards Baileys.

To promote the brand, the Bailey's will be partner with two leading spa and nail salons in Ireland to offer a special Baileys pamper session. So whenever the feel tired to have a glass of Bailey's to be relaxed.

Projected Profit and loss statement

Current Year

Year 1

Year 2







Sales Revenue




Less: Cost of Sales




Gross Profit




Less: Operating


Marketing & Advertising

Other Expense














Profit and loss Before Taxation








Profit After Tax




GROWTH 28.01% 39% 53%

In the above projected profit and loss statement the company overall financial indicate a stable growth and strong position in the current year. As compare the current to the last year (2008) the company net sale revenue slightly down 28.01% from 28.4% due to the high recession in the country. On the other hand, with a huge investment in terms of marketing and advertising the company will expect 11% growth in next year and 13% growth in the following year. The projected growth based on the company profitable ratio. As shown clearly in profit and loss statement, the company spending a lot of money in 2010 on marketing and advertisement compare to 2011. Just because the company will expect more profit in the next following year once the product boost up in the market and make a stable place.

Control Method

As the action plan is taken in to the place the next important activity is to perform the control methods for the organization to look after that how the achievements are going in the good way. According to Burrill & Ledolter, 1999, says that, “Total Quality Management is business management methodology that aligns the activities of all employees in an organisation with the common focus of customer satisfaction through continuous improvement in the quality of all activities, goods, and services”1 In addition, the company will have to maintain its quality and natural taste in the market.

To keep a good control check the company need to give a good knowledge to all employees about the brand and quality of the products before delivered in to the market. To keep checking and analysing the plan throughout, to find out the strength and weak points of the action plan, which need to be changed or adjust according to proper way back before its being dominant to market situation.

To keep a record of all expenses of ongoing production process in which the correct information about the raw material should be maintain up to date. The high investment on marketing and distribution should be controlled. The expenses on advertisement through TV channels, magazines, internet and news paper should be under proper supervision. there should be a continues feedback requested on the baileys wed site from their loyal costumer after every month that will be shown that how well the plan is being achieved.

To consider the financial position of the company they should be able to know how stable they are in current and future market. The company will to have to continue their surveys to those areas of the country where trend changing time by time according to the needs of the customers by this the company will able to place the product.


It can be concluded as the report shows that Bailey's Irish Liqueur has managed its market and brand reputation in a positive manner but there is a lot of competition going on in the market with introduction of new products with the passage of time. So Bailey's has really a tough competition to face in terms of its rivals.