The strategy that saved Baileys Liquor

Welcome to Grow Club. The place where thousands of founders, CEOs & marketers learn the strategies behind the world’s most successful brands & creators. If you like what you see click the button below to join us for free.

INTRODUCTION

Want to know how to help a brand not only survive but thrive? Want to know how to help a brand go from 17% sales decline to 32% growth? How about learning how to jump into an entirely new category? Well, this week I am going to break down the brilliant strategy behind Bailey’s turnaround story. Cheers to that! Ok let’s do it…

#1 UNLOVED & UNCOOL

Bailey's Cream Liquor was invented in the 1970s and enjoyed phenomenal success, experiencing double-digit growth for decades thereafter. However, when the global financial crisis hit in 2008, the brand went into freefall, with sales volume declining by a whopping 17% in just four years. Why? Well on the surface it seemed as if Bailey’s was a very dispensable luxury that was easy for many to justify cutting when times got tough. So all they had to do was pivot the brand and justify a price premium right? Not so fast. Long-time readers of this newsletter will know, that I always advocate defining better problems. And this is exactly what Baileys did.

Beyond the shock of the 2008 recession, there were bigger and longer-term problems, the brand faced:

• First, many viewed it as an alcoholic beverage too packed with sugar.

• Second, the brand was simply not ‘that cool’ and was viewed as something your grandma drank.

• Third the brand had an occasion problem. It was typically only drunk on special occasions such as Christmas & Easter.

Digging deeper the brand realised that the third of these problems was the key to solving all others. They realised if they could find a new occasion it might help them overcome the sugar issue, appeal to a younger audience and justify their price premium.

What we can learn from this? That simple powerful problems are the best. Too often scaleups or bigger brands will list off a very long list of problems they need to solve. Whilst this is true, it isn’t always that useful, in strategic and creative development. It’s far better to take the time to drill down and define a really simple, clear and powerful problem.

#2 NEW OCCASIONS

Now the brand had a simple and powerful problem, the solution became much clearer. They needed, first and foremost, to identify and own a new occasion. Further, it had to be an occasion that could work at a global level.

To achieve this the brand did a robust piece of global research, with their target market. Talking to drinkers around the world, something remarkable, became apparent. Whilst drinkers didn’t love the brand, they very much loved the Baileys product. They loved the delicious liquid as a rich treat. The word treat here is key here and is what ultimately unlocked their new occasion.

The word treat revealed to the Baileys, that the way the brand was being marketed was at odds with how people actually consumed it. Bailey’s was marketed as an alcoholic drink when in fact was consumed as a treat. In truth Baiely’s, in consumers’ minds, was more of a dessert or a sweat treat, than a boozy beverage.

The brand realised that if they could reposition themselves from an alcoholic drink to a treat it would resolve all their problems.

• It would allow them to move away from Christmas & Easter and be consumed more regularly…because people have desserts/treats all year around.

• It would allow them to appeal to a younger audience…because not just grannies eat treats & desserts.

• It would allow them to make the brand cooler because…because I mean who doesn’t think desserts are cool?

What can we learn from this? Well if you are a brand in decline or a smaller brand trying to compete in a crowded occasion…outsmart, if you cannot outspend. Identify a new occasion or even category, you can own.

COMMUNITY SHOUTOUT

Now on this occasion (what a seamless transition), I want to give a shout-out to one of my favourite readers of this newsletter. Why is she one of my favourites? Because she only went and shared this newsletter on a podcast! Thanks so much, Shani for shouting out this community on the ‘Getting To Grow’ podcast hosted by the wonderful Zoe Fox. You can listen to the podcast below

LINK TO PODCAST HERE

Want to get a shout-out to over 3,000 CMOs, CEOS & founders next week? Simply share this week’s newsletter on your LinkedIn and write a few words about why you recommend Grow Club. Please make sure you tag me on Linkedin though, otherwise, I might not see it and not be able to shout you out.

#3 DITCH PURPOSEFULNESS

Now the many strategists who read this newsletter will know two things are true. First, they know they will never this newsletter because they work at a big agency. Prove me wrong…I bet you won’t. Second, they will know that too many brands have become too ‘purposeful’. Now purpose in itself can be fine when it involves defining your ‘why’ or reason for being in the world. Purpose becomes a problem, however, when it becomes too ‘purposeful’. When a brand tries to save the world or champion a social cause it has no right to. Now don’t get me wrong I do think brands have an obligation to contribute positively to society, it just becomes an issue when it’s total bullsh*t. I mean do we really need a beer brand, drank by blue-collar manly men, claiming they champion transgender issues? It just feels wrong and to no surprise, brands gets called out for it or in Bud Light’s case’ cancelled.

Baileys had also become a victim of trying to be purposeful. Its previous purpose of ‘Championing Spirited Women’ had become so far removed from what consumers actually wanted (ie a treat) that it saw the brand communicate the wrong thing and ultimately led to a steep decline in sales. However, with a new and more lucrative occasion identified, the brand was now able to pivot its purpose more effectively.

They realised if they wanted to own the occasion of treats, they needed a positioning that would do a few things. First, they had to tap into the rise of baking & cooking in culture. Second, they had to speak to consumers’ desires for a sweet treat. Third, they had to more explicitly reflect a truth about the Baileys product. That it was as much a cake as it was booze. Putting this all together led the brand to define its new positioning as ‘Part cake, part booze, pure pleasure’.

This new positioning was hugely effective and led to an overall of their communications. An approach that saw them pivot FROM generic images of women having a great time TO reflecting those great treat moments when Baileys is enjoyed best. It also allowed the brand to go beyond ads to create recipe suggestions and some super hard-working in-store executions too. All of this was brought together in the brand line ‘Don’t Mind If I Baileys.

What can we learn from this? Look if you are a brand that is genuinely doing good in the world own it and embrace it. However, if you're not, often it’s far more effective to double down on what makes your product unique and build your purpose from there.

CONCLUSION

Thanks for reading this week’s newsletter and thanks to all the strategists at big agencies, who share this newsletter 😂. Seriously though I'm on a mission to build the best god damn strategy newsletter around and the only way to do this… is if you lovely people share this newsletter. I spend my Sundays writing it and you spend one second posting it on Linkedin or talking about it on a podcast. Pretty good value exchange right?

Anyway, the three lessons for this week are as follows:

• Problems are good, simply powerful ones are far better.

• If you're outspent, outsmart with new occasions.

• Don’t be purposeful if it’s total bullsh*t

Have a lovely week.

Will Poskett,
Founder of Defiant