Product details

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Case
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Reference no. 591-002-1
Subject category: Marketing
Authors: Frank Bradley (UCD c/o Smurfit Graduate Business School)
Published in: 1991

Abstract

The management of R & A Bailey & Company Ltd was faced with the decision whether to invest heavily in new manufacturing facilities to serve the rapidly growing market for the company''s cream liqueur brand ''Baileys Original Irish Cream'' launched in 1974. The brand had already been very successful in many markets throughout the world and had been launched in the US in 1979. The major concern to the company was the attraction the new product category offered to very large, well resourced competitors who seemed to be waiting to pounce in the US market particularly. Investing heavily in production and marketing would leave the company exposed in the face of such awesome competitors while failure to invest in capacity would hand over to the latecomers a large share of a valuable market that Baileys had developed.
Location:
Size:
Small
Other setting(s):
1981

About

Abstract

The management of R & A Bailey & Company Ltd was faced with the decision whether to invest heavily in new manufacturing facilities to serve the rapidly growing market for the company''s cream liqueur brand ''Baileys Original Irish Cream'' launched in 1974. The brand had already been very successful in many markets throughout the world and had been launched in the US in 1979. The major concern to the company was the attraction the new product category offered to very large, well resourced competitors who seemed to be waiting to pounce in the US market particularly. Investing heavily in production and marketing would leave the company exposed in the face of such awesome competitors while failure to invest in capacity would hand over to the latecomers a large share of a valuable market that Baileys had developed.

Settings

Location:
Size:
Small
Other setting(s):
1981

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