• SASSY women say they dress to impress (and even intimidate) their female peers, Bailey's has links with London fashion week by sponsoring Markus Lupfer's Autumn/Winter Collection. His collection is aimed at young women who are confident and self assured with a strong sense of individuality. This is the audience that Baileys is trying to reach.

The Market

Baileys has over 50% of the market in the UK Cream Liqueur market.

The cream sector is driving the entire liqueur market. To date the cream sector has predominantly been the preserve of women in the age 35+ group. But it is important for market growth to ensure that cream liqueurs attract younger consumers from both genders.

Shooter drinking has been growing in popularity in recent years, particularly among young men. Market is reliant on trial and word of mouth to spread the message. Cream liqueurs such as Baileys are popular as shots among younger people. The relatively high price per litre of shooters reflects their dominance in the on-trade.

In 2001 Baileys Irish Cre

1.1 Baileys Irish Cream is one of the brands owned by Diageo PLC. Diageo PLC is the parent organisation of Baileys and is the worlds leading premium drinks business. Diageo use different product branding and not corporate identity.

Baileys have extended their portfolio with a family branding strategy.

• Baileys Irish Cream

• Baileys Glide

• Baileys Minis

• Bailey's Latte, moving the brand firmly into the expanding coffee market.

Diageos other brands include:

• Smirnoff

• Guiness

• Johnnie Walker

• J&B

The Product

Baileys Irish Cream was launched in 1974 and is now sold worldwide. Baileys is now the 12th bestselling liqueur brand by volume in the world. (Baileys website, 2003)

In 2003 Baileys had a 10% increase in volume growth and an increase in 13% net sale growth (baileys website) This was due to the global investment and marketing strategies as well as consumer led innovation which broadened the range of Baileys drinking occasions.

Baileys is sold everywhere throughout the year and served in many different ways to all age groups. This versatility makes it the best selling liqueur, by both volume and value, all year round.

Research indicated that Baileys used to be perceived as a special occasion drink. In order to drive future growth this perception needed to be changed and to be drank on more informal occasions. Baileys intended to reposition the drink in 2000 to achieve these goals. The above the line-spend was increased by 40% to support the brand.

Baileys successfully repositioned itself from being an old lady's drink into a young woman's drink, both at home and in the bars. Baileys implemented attitudinal change through sexier advertisements and by sponsoring SATC to change their target audience. They changed performance beliefs by portraying the brand as fun, risqu? and a bit naughty.

Bailey's Irish Cream became the bestselling spirit by value in the off-trade in the run-up to Christmas 2001, even surpassing Bell's whisky in the 12-week period prior to the festivities.

In early 2002 the company stated that it would be doubling output of the brand within five years, at a cost of ?64 million, with a second production operation in Belfast, taking capacity up to 120 million bottles each year.

Bailey's is accountablefor 6% of all Irish food and drink exports.

New Baileys Glide long drink has been launched on the British market with a ?6 million marketing budget, in addition to the ?30 million marketing budget for Baileys Original Irish Cream. Baileys launched this new range because their consumer research identified an opportunity to extend Baileys Original Irish Cream further into social occasions by developing a longer, lighter alternative.

Bailey's stated aim is to become absolutely dominant and a year-round beverage. Baileys accounted for 52.8% out of the 56% spent of the advertising on cream liqueurs in 2001. The old adage 'sex sells', combined with provocative promotions, has been taken on board by the liqueur brand owners as one of the most successful ways in which to appeal to the younger generation, i.e through Sex and The City.

Baileys and Tia Maria consistently spend more money above the line than all other brands together - a combined spend of 80% of all ad-spend on liqueurs in 2001.

Baileys attracts more customers each year than any other drink in the UK.

Baileys Irish Cream can count only a fifth of its consumers as regular drinkers, however attracts more consumers each year in the UKthan any other drink.

A nation wide survey conducted by Baileys reveals that single life in the city is a desirable state for SASSY women. (Single, Affluent, Successful, Sensual and Young). Greater financial independence is enabling them to abandon the traditional routes of marriage and motherhood.

• 60% of respondents cited the desire to "have as much fun as possible" as the reason for avoiding the aisle. This promotes the behaviour which is seen on Sex and The City which is sponsored by Baileys and therefore there is an association between the two.

• SASSY women spend their money primarily on themselves and their social lives.

• SASSY women say they dress to impress (and even intimidate) their female peers, Bailey's has links with London fashion week by sponsoring Markus Lupfer's Autumn/Winter Collection. His collection is aimed at young women who are confident and self assured with a strong sense of individuality. This is the audience that Baileys is trying to reach.

The Market

Baileys has over 50% of the market in the UK Cream Liqueur market.

The cream sector is driving the entire liqueur market. To date the cream sector has predominantly been the preserve of women in the age 35+ group. But it is important for market growth to ensure that cream liqueurs attract younger consumers from both genders.

Shooter drinking has been growing in popularity in recent years, particularly among young men. Market is reliant on trial and word of mouth to spread the message. Cream liqueurs such as Baileys are popular as shots among younger people. The relatively high price per litre of shooters reflects their dominance in the on-trade.

In 2001 Baileys Irish Crea

Baileys is sold everywhere throughout the year and served in many different ways to all age groups. This versatility makes it the best selling liqueur, by both volume and value, all year round.

Research indicated that Baileys used to be perceived as a special occasion drink. In order to drive future growth this perception needed to be changed and to be drank on more informal occasions. Baileys intended to reposition the drink in 2000 to achieve these goals. The above the line-spend was increased by 40% to support the brand.

Baileys successfully repositioned itself from being an old lady's drink into a young woman's drink, both at home and in the bars. Baileys implemented attitudinal change through sexier advertisements and by sponsoring SATC to change their target audience. They changed performance beliefs by portraying the brand as fun, risqu? and a bit naughty.

Bailey's Irish Cream became the bestselling spirit by value in the off-trade in the run-up to Christmas 2001, even surpassing Bell's whisky in the 12-week period prior to the festivities.

In early 2002 the company stated that it would be doubling output of the brand within five years, at a cost of ?64 million, with a second production operation in Belfast, taking capacity up to 120 million bottles each year.

Bailey's is accountablefor 6% of all Irish food and drink exports.

New Baileys Glide long drink has been launched on the British market with a ?6 million marketing budget, in addition to the ?30 million marketing budget for Baileys Original Irish Cream. Baileys launched this new range because their consumer research identified an opportunity to extend Baileys Original Irish Cream further into social occasions by developing a longer, lighter alternative.

Bailey's stated aim is to become absolutely dominant and a year-round beverage. Baileys accounted for 52.8% out of the 56% spent of the advertising on cream liqueurs in 2001. The old adage 'sex sells', combined with provocative promotions, has been taken on board by the liqueur brand owners as one of the most successful ways in which to appeal to the younger generation, i.e through Sex and The City.

Baileys and Tia Maria consistently spend more money above the line than all other brands together - a combined spend of 80% of all ad-spend on liqueurs in 2001.

Baileys attracts more customers each year than any other drink in the UK.

Baileys Irish Cream can count only a fifth of its consumers as regular drinkers, however attracts more consumers each year in the UKthan any other drink.

A nation wide survey conducted by Baileys reveals that single life in the city is a desirable state for SASSY women. (Single, Affluent, Successful, Sensual and Young). Greater financial independence is enabling them to abandon the traditional routes of marriage and motherhood.

• 60% of respondents cited the desire to "have as much fun as possible" as the reason for avoiding the aisle. This promotes the behaviour which is seen on Sex and The City which is sponsored by Baileys and therefore there is an association between the two.

• SASSY women spend their money primarily on themselves and their social lives.

• SASSY women say they dress to impress (and even intimidate) their female peers, Bailey's has links with London fashion week by sponsoring Markus Lupfer's Autumn/Winter Collection. His collection is aimed at young women who are confident and self assured with a strong sense of individuality. This is the audience that Baileys is trying to reach.

The Market

Baileys has over 50% of the market in the UK Cream Liqueur market.

The cream sector is driving the entire liqueur market. To date the cream sector has predominantly been the preserve of women in the age 35+ group. But it is important for market growth to ensure that cream liqueurs attract younger consumers from both genders.

Shooter drinking has been growing in popularity in recent years, particularly among young men. Market is reliant on trial and word of mouth to spread the message. Cream liqueurs such as Baileys are popular as shots among younger people. The relatively high price per litre of shooters reflects their dominance in the on-trade.

In 2001 Baileys Irish Cre

In early 2002 the company stated that it would be doubling output of the brand within five years, at a cost of ?64 million, with a second production operation in Belfast, taking capacity up to 120 million bottles each year.

Bailey's is accountablefor 6% of all Irish food and drink exports.

New Baileys Glide long drink has been launched on the British market with a ?6 million marketing budget, in addition to the ?30 million marketing budget for Baileys Original Irish Cream. Baileys launched this new range because their consumer research identified an opportunity to extend Baileys Original Irish Cream further into social occasions by developing a longer, lighter alternative.

Bailey's stated aim is to become absolutely dominant and a year-round beverage. Baileys accounted for 52.8% out of the 56% spent of the advertising on cream liqueurs in 2001. The old adage 'sex sells', combined with provocative promotions, has been taken on board by the liqueur brand owners as one of the most successful ways in which to appeal to the younger generation, i.e through Sex and The City.

Baileys and Tia Maria consistently spend more money above the line than all other brands together - a combined spend of 80% of all ad-spend on liqueurs in 2001.

Baileys attracts more customers each year than any other drink in the UK.

Baileys Irish Cream can count only a fifth of its consumers as regular drinkers, however attracts more consumers each year in the UKthan any other drink.

A nation wide survey conducted by Baileys reveals that single life in the city is a desirable state for SASSY women. (Single, Affluent, Successful, Sensual and Young). Greater financial independence is enabling them to abandon the traditional routes of marriage and motherhood.

• 60% of respondents cited the desire to "have as much fun as possible" as the reason for avoiding the aisle. This promotes the behaviour which is seen on Sex and The City which is sponsored by Baileys and therefore there is an association between the two.

• SASSY women spend their money primarily on themselves and their social lives.

• SASSY women say they dress to impress (and even intimidate) their female peers, Bailey's has links with London fashion week by sponsoring Markus Lupfer's Autumn/Winter Collection. His collection is aimed at young women who are confident and self assured with a strong sense of individuality. This is the audience that Baileys is trying to reach.

The Market

Baileys has over 50% of the market in the UK Cream Liqueur market.

The cream sector is driving the entire liqueur market. To date the cream sector has predominantly been the preserve of women in the age 35+ group. But it is important for market growth to ensure that cream liqueurs attract younger consumers from both genders.

Shooter drinking has been growing in popularity in recent years, particularly among young men. Market is reliant on trial and word of mouth to spread the message. Cream liqueurs such as Baileys are popular as shots among younger people. The relatively high price per litre of shooters reflects their dominance in the on-trade.

In 2001 Baileys Irish Cre

Baileys and Tia Maria consistently spend more money above the line than all other brands together - a combined spend of 80% of all ad-spend on liqueurs in 2001.

Baileys attracts more customers each year than any other drink in the UK.

Baileys Irish Cream can count only a fifth of its consumers as regular drinkers, however attracts more consumers each year in the UKthan any other drink.

A nation wide survey conducted by Baileys reveals that single life in the city is a desirable state for SASSY women. (Single, Affluent, Successful, Sensual and Young). Greater financial independence is enabling them to abandon the traditional routes of marriage and motherhood.

• 60% of respondents cited the desire to "have as much fun as possible" as the reason for avoiding the aisle. This promotes the behaviour which is seen on Sex and The City which is sponsored by Baileys and therefore there is an association between the two.

• SASSY women spend their money primarily on themselves and their social lives.

• SASSY women say they dress to impress (and even intimidate) their female peers, Bailey's has links with London fashion week by sponsoring Markus Lupfer's Autumn/Winter Collection. His collection is aimed at young women who are confident and self assured with a strong sense of individuality. This is the audience that Baileys is trying to reach.

The Market

Baileys has over 50% of the market in the UK Cream Liqueur market.

The cream sector is driving the entire liqueur market. To date the cream sector has predominantly been the preserve of women in the age 35+ group. But it is important for market growth to ensure that cream liqueurs attract younger consumers from both genders.

Shooter drinking has been growing in popularity in recent years, particularly among young men. Market is reliant on trial and word of mouth to spread the message. Cream liqueurs such as Baileys are popular as shots among younger people. The relatively high price per litre of shooters reflects their dominance in the on-trade.

In 2001 Baileys Irish Cre

• SASSY women say they dress to impress (and even intimidate) their female peers, Bailey's has links with London fashion week by sponsoring Markus Lupfer's Autumn/Winter Collection. His collection is aimed at young women who are confident and self assured with a strong sense of individuality. This is the audience that Baileys is trying to reach.

The Market

Baileys has over 50% of the market in the UK Cream Liqueur market.

The cream sector is driving the entire liqueur market. To date the cream sector has predominantly been the preserve of women in the age 35+ group. But it is important for market growth to ensure that cream liqueurs attract younger consumers from both genders.

Shooter drinking has been growing in popularity in recent years, particularly among young men. Market is reliant on trial and word of mouth to spread the message. Cream liqueurs such as Baileys are popular as shots among younger people. The relatively high price per litre of shooters reflects their dominance in the on-trade.

In 2001 Baileys Irish Cream had the leading liqueur brand share in the UK off-trade by volume and value. They also held a major brand liqueur share in the on-trade in the UK. Baileys had a 16% point change from 1997-2001 in the Cream Liqueur brand shares by volume.

Baileys Irish cream is the leading brand by some considerable margin and has increased its market share in the period stated. It is noticeable that there is a tendancy for more women to show a preference for cream-based offerings, while men are more likely to enjoy whisky-based variants.

Baileys market divided into demographic subgroups

• Women consume more liqueurs than men and especially cream liqueurs. This helps explain the success of Bailey's, which is drunk by 28% of the population - 23% of males and 33% of females.

• The brand's dominance is reflected in the figure for other cream liqueurs, which are consumed by relatively few (7% - not tabulated).

• Consumption is heaviest among 25-34-year-olds (44%) followed by 18-24s (36%) and 35-44s (30%).

• The lifestage data confirms the preference of younger drinkers, with 35% of the pre-/no family group and 36% of families drinking Baileys. Baileys successfully targets these groups through there ongoing communications campaign.

In terms of non-cream liqueurs, Tia Maria is the clear leader and major competitor to Baileys, as reflected in the market data