Kerrygold's signature gold foil wrapping is key to enhancing the consumers' belief that they are buying the "gold of the Emerald Isle" and their acceptance that this is a superior product to all others.
The brand is built on a number of pillars, including the fact that Irish butter is natural, pure, tastes better and is a trustworthy product with reliable suppliers. The brand also relies on the German perception of Ireland as the unspoilt garden of Europe and is a great place to make dairy products.
Interestingly, German consumers have different taste preferences to the Irish, so the Kerrygold butter on sale in Germany will not taste the same as Kerrygold butter in shops here.
Kerrygold also has maximum market penetration, with its butter available in all German retailers.
Germans, like many Continental consumers, prefer the richer flavour of a lactic butter, as opposed to the sweet cream butter that we eat in Ireland. To cater for these different taste preferences, butter destined for the German market is inoculated with a starter culture to produce the distinctive flavour profile of lactic butter.
While the IDB has been phenomenally successful in supplying all German retailers with Kerrygold and securing a major market share there, it is acutely aware that it cannot rest on its laurels.
Like many developed economies, butter consumption is in decline in Germany, falling by around 3pc a year as younger consumers switch to mixed fat spreads for convenience.
Having analysed the changing consumer lifestyle demands, the IDB identified an opportunity to launch a new product.
Kerrygold Extra is based on the original Kerrygold butter but includes a blend of rapeseed oil that makes it spreadable directly from the fridge.
The new product is marketed on its spreadability, highlighting its convenience to a whole new consumer demographic in Germany. These new buyers are typically younger than the buyers of Kerrygold butter and more health conscious but still looking for the same natural attributes of the Kerrygold brand.
To the IDB's delight, Kerrygold Extra outperformed all expectations last year by becoming the IDB's most successful launch ever and accounting for sales of €18m in 2010.
While the IDB had expected to lose some of its original Kerrygold customers to the new Kerrygold Extra brand, this did not happen. Instead, Kerrygold retained its loyal customers and the new kid on the block, Kerrygold Extra, went out and poached considerable market share from other brands in the spreadable butter category.
During the past year, Kerrygold Extra has won a number of awards (see below), including Top Brand 2010 and Product of the Year 2011 in Germany, and the Irish Marketing Institute's International Marketing Award 2010.
Future aims for the IDB and Kerrygold Extra are to grow the product portfolio, increase shelf presence of the brand and ward off potential competition from new entrants to the market.