Baileys Irish Cream Case Study Essay Research — страница 2

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prices. The inflation coupled with higher excise taxes place increased price pressure on international firms trying to compete with cheaper American companies in the US market. Drinkers now drink less than they used to for multiple reasons. There are stiffer laws for driving under the influence. There are health benefits for drinking in moderation. Liquor prices are rising. Industry trends have shown that more people prefer to drink lower quantities of premium liquor, rather than higher quantities of cheap liquor. All of the mentioned reasons above point to why Baileys is fighting a loosing battle with increasing sales. Instead of focusing the majority of their attention on finding new customers, they should try to keep the ones that they have and let word of mouth advertising do

the rest. If they make their current customers feel special for having been a Baileys drinker for a while, it will make them want to continue the relationship with the company. Baileys is in a difficult situation. They are trying to increase their sales significantly in a saturated market. On the one hand, they want an 11% sales increase-this year. On the other hand, they have an opportunity to develop the markets in the Far East, and it can take as much as 5 to 7 years to develop a new market. The idea of developing the eastern market seems to be a good one. From class discussion we learned that the Asian market is particularly receptive to American influence. If Baileys can find a way to show that drinking Baileys Irish Cream is an American thing to do, then that could open a

floodgate of new business. The problem with the idea of opening more East Asian markets is that, as our text suggests, it is a very difficult thing to do. In order to develop the Far Eastern market, Baileys should first do some taste evaluations in the different countries of the area. It is quite likely that the flavor used in the US will not be as well liked in Japan. There is also a good chance that the flavor used in one East Asian country will not be as well received in another. Baileys is the original Irish Cream. 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 market share away from the competitors who have squirmed their way into the market. This picture is taken from the Baileys web

site. It suggests that there are people out there who have a “passion” for their drink. The web was not available in the early-nineties, but now that it is Baileys has the opportunity to let the public see the MANY recipes and ideas on the site. Baileys knows that they have a special product. It is their original Irish Cream that has been around since 1974. It is not the cheapest product on the market, and it is not the most expensive. They are different from their competitors because their product has an actual cream base to it. Since the worldwide flow of liqueur has been stuck at 50 million cases since 1986, it could prove difficult to convert liquor and beer drinkers as well as nondrinkers to liqueur. To develop an appropriate marketing mix, the above factors are very

important. Baileys should concentrate on keeping their existing customers and taking their competitors’ customers away from them. The market in old markets has been sufficiently saturated that all of the products look similar, except for the price. It is necessary for Baileys to find a way to lower the price significantly, or differentiate itself from the rest of the market. Lowering the price doesn’t seem like the best way to increase sales. Baileys is a premium product, lowering the price would make consumers believe that the company is no longer as good as it once was. Baileys is a unique Irish Cream because it is made with cream, the company’s advertising scheme should revolve around that fact and that 50% of a bottle of Baileys is fresh Irish dairy cream. Having

tasting promotions in Japan and China might prove useful. In the streets of Tokyo, vendors walk around and hand out cigarettes for free. Why not set up a few booths for a month and let passerbys of legal age taste a Baileys mixed drink? This would serve three very important functions: 1. The public is exposed to a new product that it has little or no exposure to. 2. Baileys gets to see which drinks are more liked by new market, and can incorporate those drink recipes into the promotion of the product. And 3. Baileys gets its name into the new market, both by the big booth that says Baileys Irish Cream on it, but also from word of mouth; I know if someone was giving away free mixed drinks around here I would tell everyone I know. Baileys should not try to narrow their target