Introduction
Any organization that majors in a recognized product must be critical of the brand expansion, awareness, and other selling metrics. Kerrygold is a recognized brand in Ireland, the UK, and the US, among other countries in the world. The brand involves butter products that have taken a stable competitive market in European and Western world markets. Kerrygold is known for one of the reputable adverts on Irish Television and utilizes marketing through mainstream media. The purpose of this paper is to present research on selling platforms utilized by Kerrygold and an analysis of its commercial success through the adoption of modern selling aspects.
Brief History of the Organization
Kerrygold is a butter brand from Ornua Co-operative Limited based in the Republic of Ireland. The organization was founded by the government of Ireland in 1961, and it is headquartered in Dublin, Ireland (Brett, 2018). The organization was started to market and sell dairy products to the members of Irish dairy processors and farmers. Ornua replaced Butter Marketing Committee and was established by an act of the Oireachtas.
Kerrygold’s name was developed to induce farming and the natural quality of milk that is associated with Ireland. Kerrygold was first launched in 1962 in Winterhill, which is in the western part of England (Brett, 2018). Beginning in 2015, Kerrygold, through the predecessor board, assumed another identity now as Ornua, which means ‘the home of Irish dairy.’
Ornua expanded the operations and reached many subsidiaries in the world, but the pre-packing and blending are done from Germany, Great Britain, the US, and the Middle East. The organization constructed state-of-the-art Kerrygold butter producing and packaging plant known as Kerrygold Park, a project which cost more than 36 million euros (Burke-Kennedy, 2021). In 2010, the Irish Dairy Board got an award as the exporter of the year, which was provided by Irish Exporters. It is important to note that Kerrygold is the highest-selling butter in Ireland and second in the US as of 2019.
Selling Platforms Utilized by the Organization
Kerrygold has been known as one of the brands that have sold its products in major European and American markets. The company utilizes selling platforms, such as Amazon, e-Bay, Walmart, and Facebook Marketplace. The company is also involved in physical marketing platforms, such as exhibitions, roadshows among others (Evans, 2019). The selling platforms have offered the company the chance to grow the brand by launching what customer wants in the market. Through the platforms, Kerrygold has been able to reach annual sales of one billion euros more so, due to its growing popularity in the US. Kerrygold owner organization Ornua through the financial reports in 2019 suggested that 7.5 million packets of butter would be sold weekly since 2018 (Evans, 2019).
Therefore, it shows that there is efficiency in selling through the platforms because the organization has been able to sell more quickly than standard brands, such as Coca-Cola.
Online Platforms as a Booster in Selling
There is effectiveness when utilizing some selling points, such as Amazon and other online-centric platforms. The reason why the efficacy is evident is due to the convenience that consumers get from the buying platforms (Hamilton, 2019). For instance, Amazon gives a user various information including the prices, specifications, such as color among other eye-opening factors. Due to fast delivery, customers prefer to purchase the product online hence offering a chance for Kerrygold to have an expanded market globally.
In 2020, Ornua announced that Kerrygold butter sales had increased by 13% whereby, more than 10 million packets would be sold weekly (Checkout, 2021). The company had maximized the opportunities that were evident through selling platforms. The company through management said that “This unique trading performance is a result of Ornua’s agility in maximizing on the opportunity arising from the sharp change in consumer behavior due to global lockdowns” (Checkout, 2021). Therefore, with the existence of Amazon, e-Bay, and other channels, the company can maximize its selling capability in the market. Due to the Coronavirus pandemic, many people did not venture into physical buying behavior but rather had their products ordered and as a result, Ornua maximized on the same hence winning by a significant margin.
Kerrygold Selling in Stores
The company has ensured that the brand sells from shelves of major stores, such as Dunnes Stores and Tesco, which are key in offering affordable prices for the consumers. Although there were some issues to do with pricing where Kerrygold was accused of demanding high prices, the challenge was combatted by mutual agreement. Both Dunnes and Tesco retail chains restored the Kerrygold brand offering the product in 454g, and 500g tubs (Phelan, 2017). Currently, Kerrygold is advertised at 3.75 euros for the 454g block which has seen increased sales volumes since 2018 (Phelan, 2017). Through stores, Kerrygold offers customers the ability to choose the brand over others by checking the quality and the price and thus, becoming effective to reach all the consumers.
Ornua has been able to sell the Kerrygold brand in the US market through facilities in popular stores. For example, in 2020, the company expanded its facility in Wisconsin where it was able to unlock 30% growth capability (Sillivan, 2021). Additionally, Kerrygold continues to be one of the fastest-selling brands in most German stores. Through the popularity, the brand has strengthened the launch of additional cheddar items in 2020.
It is important to note that in the UK, Pilgrims Choice performed better than the cheddar category where the company reached 29% growth in a year hence, securing the second position in the UK market. The chief executive officer (CEO) John Jordan said that “This, coupled with Ornua’s clear and ambitious new 5-year strategy focused on driving profitable growth in priority global markets, will ensure we continue to deliver value for the 14,000 Irish farming families we represent” (Checkout, 2021). Therefore, Ornua looks into pursuing new success through venturing into stores where customers can efficiently reach the points and purchase the Kerrygold brand.
How Kerrygold Brand is Traded Through Modern Selling
The organization utilizes what is referred to as a value proposition as one way of modern selling. That means the marketing of the Kerrygold must show what extra benefits the product will bring to the end-user in various ways (Phelan, 2017).
For example, the company promises the customers that the Irish butter will be able to offer the premium quality option for home baking individuals. It has been possible to fulfill the commitment through the launching of Kerrygold spreadable and unsalted butter which marked a key milestone for the brand not only in Ireland but the UK and the US. In 2020, the organization increased 5.2 million euros to the value of the category in Ireland, and it wishes to offer more plans to expand its reach in the market (Phelan, 2017). The move was to enable modern selling whereby, Kerrygold would strengthen its market share and position by adding the customer’s demands and wish as far as the butter is concerned.
The value proposition feature would be enabled through the launching of Kerrygold products that have been launched targeting 1.4 million buyers in Ireland (Phelan, 2017). The organization would lead to what is referred to as out-of-home advertising under the slogan ‘Love the Taste’ in a series of marketing adverts on popular digital channels. The organization utilizes the modern selling feature to increase its market coverage by 25% to other parts of the world where the product is not well-known (Phelan, 2017). The organization is willing to perform a comprehensive market analysis to see how it can progress more and become the number one selling brand in the US.
Problem-Solving Feature to Expand Marketing
Ornua Co-operative Limited through the management has not been left behind when it comes to solving problems in the market. The organization aims to transform its business by having products that drive solutions in the market (Hamilton, 2019). Ornua has launched a campaign known as ‘A true taste of Kerrygold’ which comes to solve the issue of the competitive market across Ireland, the US, and other regions. The campaign is through a collaborative base from farming families in Waterford, Monaghan, and West Cork (Hamilton, 2019).
The expansion of the market will lead to the gaining of more revenue and generation of profits for the company. When the company takes a significant share in the market, growth patterns shall be positive, and this will yield to the adoption of Kerrygold products in many kitchens.
The marketing campaign that will feature key brand ambassadors will purposely shed light on consumers on the imitation and flattery from other rival firms concerning the Kerrygold butter product. Jordan says that “When other companies try to follow us in it is a compliment to the work we have done, but ultimately it’s about consumers and they love what Kerrygold stands for” (Sillivan, 2021). It means that Kerrygold is determined to have a unique trademark that would make it stand in the market and be visible to its consumers.
Despite the company hitting record sales annually, the company understands that due to changing environment and ethical consumerism, there is a need to expand the reach through advertising for what the product has to offer. Therefore, through the above elements, Ornua can be said to have modern characteristics of selling, which are key towards its growth.
Conclusion
Kerrygold is a butter brand produced by Ornua Co-operative Limited, an organization established in 1962 in Ireland. The brand has been able to stand in Irish, British, Middle East, and American markets. The organization has achieved a milestone of 1 billion euros as annual revenue. The company sells using major online platforms such as Amazon, e-Bay, and other points as one way to generate its profits.
Additionally, Ornua has maximized on using popular stores, such as Wisconsin and Carrefour to sell its products that have seen the brand being one of the fastest-selling in the market. Modern selling features that the company uses include value addition, and problem-solving as one way to expand the market. The company’s executive has launched a marketing campaign that targets to get more consumers who buy the product and therefore, it will ensure that the organization’s products are widely accessible in the Irish and global markets.
Reference List
Brett, S. (2018). How Kerrygold butter became a cult favorite in America. Web.
Burke-Kennedy, E. (2021). Ornua eyes €2bn in Kerrygold sales as group reports record turnover for 2020. Web.
Evans, O. (2019). Kerrygold celebrates €1bn annual retail sales globally. Web.
Hamilton, P., 2019. Kerrygold promoting ‘grass-fed dairy’ in a new global campaign. Web.
Checkout (2021). Kerrygold sales up 13% with over 10 million packets sold weekly | Checkout. Web.
Phelan, S. (2017). Kerrygold in from the cold with retail giants. Web.
Sillivan, A. (2021). Butter wars: Kerrygold wins EU trademark battle | DW | Web.
Wells, L. (2020). Kerrygold launches first TV advertising campaign for four years. Web.