NEW BELGIUM BREWING (NBB)
DEVELOPING A BRAND PERSONALITY
CASE VIII
MARKETING MANAGEMENT
GROUP 06
OUTLINE
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INTRODUCTION
SWOT ANALYSIS
NBB OLD MARKETING STRATEGY
NBB NEW MARKETING STRATEGY
NBB’S CORE VALUES AND BELIEFS
KEY FACTORS FOR COMPETITIVE SUCCESS IN THE
INDUSTRY
• RECOMMENDATION & CONCLUSION
• Q&A
Introduction
 New Belgium Brewing Company, Inc. (NBB), was founded in 1991
and is based in Fort Collins, Colorado, is one of the largest regional
specialty brewers in the United States, producing about a dozen
distinctive beers which are distributed to fifteen states in the West.
 Its brands include top-seller Fat Tire Ale, Sunshine Wheat Beer,
and Abbey Belgian Style Ale, as well as seasonal offerings like Biere
de Mars, Trans atlantique Kriek, and Two Cherry Ale.
Introduction
It has locations in Arizona, Arkansas, California, Idaho, Illinois, Iowa,
Kansas, Missouri, Minnesota, Montana, Nebraska, New Mexico, Nevada,
Oregon, Texas, Washington, and Wyoming.
Founders Kim Jordan and Jeff Lebesch hold controlling interest in the
company, which is partly owned by their employees.
The environmentally-friendly firm uses wind-generated electricity as
well as heat and energy derived from byproducts of the brewing
process.
Key dates
1991: Jeff Lebesch and Kim Jordan begin brewing
beer in their basement.
1992: New Belgium Brewing's operations move to
renovated freight warehouse.
1995: Company moves into a new $5 million
brewery.
1996: A Belgian brewmaster hired.
1998: Production tops 100,000 barrels for the first
time.
1999: Firm begins to use wind-generated electricity.
2001: Expansion of plant to triple capacity begins.
2004: Distribution is expanded to Southern
California; New Belgium beer is now sold in 15
states.
What make craft beer the fastest growing
segment of US alcoholic beverage
• Craft Beer is an American term which is also common in Canada
and New Zealand and generally refers to beer that is brewed using
traditional methods, without adjuncts such as rice or corn and with
an eye to what's distinctive and flavorful rather than mass appeal or
simply known as Traditional beer.
NBB SWOT Analysis
Strong
Weakness
• Stable sales force
• Well treated employees who enjoy their
job.
• Comprehensive product lines of
different beers.
• Technical expertise with different beers
has been very successful in customer
response.
• Strong brand name among consumers.
• Privately owned company that has
abundant financial resources.
• Well known brand name in the microbrewery category.
• Respected company with a strong brand
name that means environmentally,
socially and ethically responsible.
• Employees are committed to their job
because of the treatment they receive.
•Deals only with small accounts and
misses the larger stores to carry their
product.
• Vulnerable to technological changes.
• Rapid growth leads to many social
programs and not a focus on the business
of making beer.
• Limited distribution of products in
national markets.
• Higher costs than direct competitors.
• Does not have a wide variety with many
price points on beer lines
NBB SWOT Analysis
Opportunities
Threats
•Rapid market growth in untapped
markets.
•Rival firms are complacent and not
attacking new markets.
• Opening of foreign markets (new)
• New technology for the brewing of beer
to be more environmentally friendly.
• Sales decline for competitors and New
Belgium Brewing Beer becomes the
substitute for their competition’s
products.
•Entry of new micro brewery in their
markets.
•If they ignore marketing and reach the
decline stage of the product life cycle.
• Changes in federal and state policies on
the environmental and social
responsibilities of a beer company.
• Demographic shifts in their loyal
customer following.
• New CEO does not have the same values
the company does.
OLD NBB’S MARKETING STRATEGY
• For the first four years, NBB’s marketing
consisted of travelling to beer festival and
handling out free samples, relational
marketing with its Ranger team.
• Since 1996, NBB do festivals, sponsorships,
and also coupled with print media in
alternative weeklies, increased brand sales
to over 100,000 barrels.
• Introduced signature NBB’s events such as
multicity philanthropic bike festival, Tour de
Fat
TOUR DE FAT
Tour de Fat is a bicycle parade and festival sponsored
by New Belgium”.
Bike trade: a local participant give the keys and title of
their motor vehicle to New Belgium in exchange for
a new commuter bike and trailer to promote bike
riding and sustainability
NBB’S NEW MARKETING STRATEGY
• With expanding distribution, in 2003 NBB
consulted by Dr. David Holt, an Oxford
professor and branding expert and Advertising
agency to make a new campaign base on:
– Brand manifesto
– Selecting the right media
– Message Development
– Cultural branding
BRAND MANIFESTO
Holt created a Manifesto along with Osley
(marketing director) describing the
Company’s brand’s attributes, character,
cultural relevancy, and promise.
Collaborated with Amalgamated Inc. which
later used this manifesto as a guide and
later created campaign’s tagline : “Follow
Your Folly… Ours Is Beer”
• In particular, NBB set clear brand identity,
pursue creative activities simply for the
joy of doing them well and in harmony
with the natural environment
SELECTING MEDIA
• Television was chosen as the preferred
medium since its more authentic and people
likes advertising more if mixed with
entertainment.
Also it would reach to wider audience and
those faraway outposts where Ranger sales
staff penetration was difficult and costly.
• Theatrical screenings:
NBB first embarked on mass marketing with
the release of its "Tinkerer" television
commercials in 2005, series of storyboards
resembling the symbol of the company's most
popular brand, Fat Tire.
SELECTING MEDIA
• New Belgium recently launched a series of
innovative social media campaigns, which have
successfully grown the brand's online community
and strengthened brand presence in popular social
networks.
• New Belgium focused its initial social media
outreach strategy on Facebook and Twitter. This
Integrated campaign generates 25% increase in size
of social network
• Silver-screen presence: Movie producers usually
contact New Belgium to request use of the beer and
brand in a film
• Events : Keep going to promote “Tour de Fat”, and
other charity, sponsorship programs, such as
“Holiday Folly”
Message Development
• NBB understands the mindset of people where a highly
creative activity or avocation is pursued for the intrinsic
value of doing it, as well as performed in a balanced
manner with nature. NBB’s beers are positioned as a
manifestation of that lifestyle
• In a sea of loud, flashy beer advertising where marketers
are seeking ever more new means to cut through the
clutter NBB chose to redefine the category in a very
traditional medium and positioned itself as whimsical,
thoughtful, reflective. This speaks of the NBB’s personality
setting them apart from its rival and quickly founding its
place among its loyal followers.
Message Development
• NBB also emphasizes on eco-friendly practices
and employee ownership in its marketing
materials.
• Roots style became more important to speak
to the insiders and who help build the brand ,
and events become more important as a
source of feedback and dialogue with biker
community.
• NBB advertisments use daily life icons and
ordinary activities that made customer feel
close with the message that they want to
deliver.
CULTURAL BRANDING
• What sets New Belgium's campaign apart is that it is actually
promoting its cultural among other people and groups. The campaign is
really focused on encouraging NBB fans to make positive changes in their
lives.
• Their several taglines :"Follow your folly, ours is beer“, "The first wind
powered brewery in America!" and a variation "Wind Powered,
Employee Owned” is inviting us to not only drink their beer but to be
part of their company's culture.
• All of NBB operations and activities unity with its environmentally
responsible operations. : first wind-powered brewery in the country,
Brewery’s image with green organic look from label to packaging , the
three 'R's Reduce, Reuse, Recycle for environments.
New Belgium Brewing Purpose Statement: To operate a
profitable brewery which makes our love and talent manifest
NBB’S CORE VALUES AND BELIEFS
• Remembering that we are incredibly lucky to
create something fine that enhances people's
lives while surpassing our consumers'
expectations.
• Producing world-class beers.
• Promoting beer culture and the responsible
enjoyment of beer.
• Kindling social, environmental and cultural
change as a business role model.
• Environmental stewardship: Honoring nature
at every turn of the business.
NBB’S CORE VALUES AND BELIEFS
(cont`d)
• Cultivating potential through learning, high
involvement culture, and the pursuit of
opportunities.
• Balancing the myriad needs of the company,
our coworkers and their families.
• Trusting each other and committing to
authentic relationships and communications.
• Continuous, innovative quality and efficiency
improvements.
• Having Fun.
Key Factors for Competitive Success in
the Industry
• Awards from Business Ethics magazine and Better
Business Bureau’s Torch Award for their socially
responsible business.
• Commitment to the environment, society and personal
relationship with consumers. It resonates with an
increasingly eco-conscious consumer
• Consumers believe in and feel good about this product.
• Loyal beer drinking consumers.
• Their core values and beliefs are to be environmentally
concerned and socially responsible brewers.
• The employee loyalty programs are unmatched by any
other craft/micro-breweries.
• The pricing of a 6-pack of beer is competitive.
Recommendation
• New Belgium Brewing Company does a great job on
running an environmental, ethical and socially responsible
business. However the lack of an active marketing
campaign could lead the micro brewery out of the
consumers mind. They do have a lot of positive public
relations with their socially responsible events in the
community and employee relationships. The brewery
needs to do some print ads in socially responsible
magazines that their customers read.
• For cost and environmental reasons, New Belgium should
make more effective partnerships with brewers in other
states to make each other's beer at the other's plant and
avoid transportation costs and excessive energy
consumption.
Conclusion
• The key drivers to survive and create its brand
personality in this industry are:
o Create your own value and set clear stategy for it to
get customer loyalty.
o The strength of batches of beer made.
o The ability to maintain inventory such as the special
yeast and barley.
QUESTIONS & ANSWERS
• Question 1: New Belgium has focused heavily on
the use of environmentally friendly technologies.
Such technologies are costly. How does this added
expenditure benefit the company?
• It benefits them by keeping down the waste that
they have and helps them to save money on
thermal and electric energy. It also shows
customers and others that they care about the
environment
Question 2: Some segments of society contend that selling
alcoholic beverages cannot be socially responsible. Do you
believe that New Belgium Brewing is in touch with
environmental trends? Why or why not?
• We believe they are in touch with environmental
trends because they recycle chipboards,
magazines, shrinkwrap, etc. They use Suntubes,
which uses outside lights and they are a
windpower brewery. They also give their
employees cruiser bikes after they have been
with the company for a year. They are not just
about making beer, they are about the
consumers.
Question 3: Rather than testing its television spots
using focus groups, NBB instead tested these spots
using insiders in the bike community and brewery
friends who had a personal history and knowledge of
the brand. Evaluate NBB’s decision not to use focus
groups.
• Since the company approach is different, It
became even more important to speak to the
insiders who helped build the brand in the
same authentic and personal idea, they had
come to know and react in a positive way with
the marketing strategy.
Question 4: How does the use of 16 millimeter film and Freak Folk
music relate to New Belgium’s advertising objectives?
• From the companies message “it is the cultural counterpoint to the
Urban Professional” Reflect the company manifesto and the
mountain local lifestyle
• The 16- millimeter film give us a mid 1970s feel buoyed and more
substandard look than compared to the 70-mm. This would give a
classic feeling to the product
• And together with the “Freak Folk” song viewers can link to a more
personal level and it brings out a wistful atmosphere.
• The ad emphasizes the message that would like to describe a way
that would capture the audience.
Question 5: What are some benefit of NBB’s
decision to redoubles its roots-based, personal
touch marketing efforts aimed at its mature
market?
• This unique and creative marketing strategy bring
a fresh, different approach , the company acted
like a fellow citizen of the world. That core of
social responsibility, will share the same value
with its customer, then they will enjoy supporting
companies who share the same values with
them.
Question 6: What roles did the advertising agency, NBB`s leadership,
and NBB`s employees play in the development of the advertising
campaign?
The role of advertising agency:
• The advertising agency helps to capture the brand image of New BelAmalgamated
Inc. explored a wide breadth of possibilities within a restrictive budget and conduct
the advertising campaign to its most possible success.
• The role of NBB’s leadership:
• New Belgium’s leadership plays a role in defining the image that New Belgium
wants to convey to the market and distinctly point the boundaries of its brand
image , also to embrace the latent talents of their own crew, they allowed brewery
employees to compose a reggae like score.
• The role NBB’s employees:
• Employees must act, behave and serve customers accordingly to the way New
Belgium’s brand would convey its image, NBB’s employees is the well inner
reflection of the company first television-based ads campaign.
•
NBB team reacted positively to Amalgamated’s suggested tagline and send a
healthy volley of e-mails to distribute their opinions to the campaign’s tagline
Question 7: NBB seemed to agonized over the use of the word “folly” in its
advertising campaign. What do you make of the company’s struggle with
this decision? Also, how do you personally feel about their use of the word?
• The initial disagreement regarding the use of the word “FOLLY” was
due to the fact that it had too negative or connotation that goes
against the science and technology it took to produce such
consistently high-quality beers.
• We think that NBB were right in using the word “FOLLY” for their
advertising campaign since they were trying to position themselves
among those professional or group of people who follows the
traditional route of existing within a capitalist economy but still has
artistic leanings and desires.
• NBB beers was a manifestation of that lifestyle. The founder of the
NBB Jeff Lebesch himself was a electrical engineer by profession and
brewer by hobby before he followed his “FOLLY” and since Holt
(consultant for NBB) who was the leading proponent of “Cultural
Branding” – a philosophy of branding that tries to speak to tensions
within society in this case following your passion or your inner
desires, choosing the word “Follow your Folly.. Our is beer” was aptly
chosen.
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