NEW BELGIUM BREWING DEVELOPING A BRAND PERSONALITY Professor: Cheng Nan Chen Marketing Management . Mamunur Rahsid Betty Group 8 – Case 2 - IBM Nguyen Tan Nhat Duy Do Nguyen Yen Nhi Huynh Tan Tai ViVi OUTLINE Introdution Custommer behavior SWOT Analysis Marketing Strategy Conclusion INTRODUCTION Brewing Company was started by Jeff Lebesch and his wife Kim Jordan in 1991 from their house delivering beer in their station wagon. They outgrew their basement operation, overflowed a second location in a railroad depot, and finally, in 1995, they designed a facility that they now operate from. INTRODUCTION New Belgium Brewing Company is now the 3rd largest regional craft brewery, 12 largest overall, in the nation and now produces over 370,000 barrels of beer per year. NEW BELGIUM BREWING COMPANY AT A GLANCE • • • • Company Types: Private Company Industry: Alcoholic beverage Incorporated: 1991 Headquarters: Fort Collins, Colorado, USA. • Production:437,000 US Barrels • Employees:372,August 25th,2010. NEW BELGIUM COMPANY AT A GLANCE Principal competitors: Sierra Brewing co., Boston Beer co, Odell Brewing co. BACKGROUND OF NEW BELGIUM BREWING COMPANY 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. BACKGROUND OF NEW BELGIUM BREWING COMPANY 1998: Production tops 100,000 barrels for the first time. 1999:Firm begins to use windgenerated electricity. BACKGROUND OF NEW BELGIUM BREWING COMPANY • 2001:Expansion of plant to triple capacity begins. 2004:Distribution is expanded to Southern • California; New Belgium beer is now sold in 15 states. BACKGROUND OF NEW BELGIUM BREWING COMPANY • 2009: By mid-2009, New Belgium beers will be available in 26 states across the United States. Sold 582,79barrels of beer. • 2010:Currently have 185 distributors in more than 28 states. Expect to sell over 700,000barrels of beer. CUSTOMER BEHAVIOR Beer is a special product, so customer is also special. Beer consumption is overwhelmingly male-dominated, with men accounting for more than 80% of the volume consumed. CUSTOMER BEHAVIOR Of all the beer types, light beer is the most favorite product women like. They are more attractive by micro-brewed beers than big brand because of their greater variety. CUSTOMER BEHAVIOR CULTURAL FACTORS People who live in the countries with cold weather like to drink beer, such as Russia, Europe, America. Beer make them feel warm and mild. They often drink beer when they have harvest festival, especially in German, Belgium or France. CUSTOMER BEHAVIOR SOCIAL FACTORS Friends group usually go to pub or restaurant to drink beer for fun. Colleagues or staff go to drink for work or special party. Partner go for drink to discuss about company’s contract or cooperation. CUSTOMER BEHAVIOR SOCIAL FACTORS Family spend most of their leisure time at home, so they want to enjoy a drink at home without the worry about driving. CUSTOMER BEHAVIOR PERSONAL FACTORS In most societies, beer is the most popular alcoholic beverage. Various social traditions and activities are associated with beer drinking, such as playing cards, darts, or other pub games; attending beer festivals; visiting a series of pubs in one evening CUSTOMER BEHAVIOR PERSONAL FACTORS Beer is considered to be a social lubricant in many societies and is consumed in countries all over the world The person whose age is from 18 to 60+ can drink beer. Much of men use this product more than women SWOT ANALYSIS STRENGTH Complete marketing strategy :festival and sponsorship Including the right media choices Sending correct message for introducing the firm’s character :great personality fitting STRENGTH Convincible NBB leadership, employee in development of advertisement campaign. WEAKNESS Focusing on only advertisement: should be including some more like internal system categorize Instead of using focus group, NBB choose insiders who had history and knowledge of the brand OPPORTUNITIES Roots-style marketing: public image was built, so speak to the insider NBB’s well done at specific area first and explore more at other side’s field OPPORTUNITIES First field are advertisement to get more attention, after will be easier to control of the quality stable. THREATS Strong personality is hard to be broken, although when firms face to external changes that could not be only things that matters. MARKETING STRATEGIES Developed engaging contests like “What’s Your Folly?” which invites consumers to pitch their Beer-dream to win immortal fame on an NBB post-coaster. Introduced such signature NBB events as the multi-city philanthropic bike festival “Tour de Fat”. MARKETING STRATEGIES All events and sponsorships have been bolstered by strategic Purchase of print media advertising. After working with the manifesto, NBB selected television as one of the main advertising campaigns to attract customer. MARKETING STRATEGIES NBB developed a series of storyboards named “Tinkerer”. They carried out NBB’ first television-based advertising campaign named “Follow Your Folly” MEDIA TOOLS Radio shorts Television: low cost per viewer and wide reach. Theatrical screenings Other media: which customers expected to see interwoven with entertainment. ADVERTISING OBJECTIVES The advertising should be implementing with moderate budget The ads film should bring timeless feel, reflect the company’s Manifesto and cultural tension of The mountain local lifestyle, which can be seen as the compromise between live the life one person wants with balancing the economic IMPLEMENTING THE ADVERTISING Amalgamated had developed a series of storyboards for the commercials featuring the “Tinkerer”. The campaign tagline: “Follow the folly…ours is beer “ and the spots on grittier 16-millimeter film was offered. TARGET AUDIENCE Target audience would be the professional who follows the traditional route of existing within a capitalist economy but still has artistic learning and desire, such as: lawyers, accountants,…. High-end beer drinkers, youthful demographic, men ages 25 to 44 years old. MESSAGE DEVELOPMENT At this stage in the process, a search for the right director for the commercials ensued: reviewing dozens of highlight reels and passing the most likely fits along to NBB. MESSAGE DEVELOPMENT Amalgamated returned to New York to begin postproduction of the spots with NBB’s input by choosing a musical bed quickly developed into the next creative challenge. MESSAGE DEVELOPMENT In September 2004, members of NBB, Amalgamted, and the production company RSA out of Los Angeles met in Hotchkiss and commenced shooting over a three-day period. This led to no fewer than nine potential spots coming out of the three-day shoot MESSAGE DEVELOPMENT Quick to embrace the latent talents of their own crew, NBB allowed brewery employees to compose a reggae like score for one of the 15second spots-playful little film called “Joust” Even as NBB decided to speak to a wider audience through a new medium, the roots-style marketing that launched the company could not be abandoned MESSAGE DEVELOPMENT In the end, NBB’s first televisionbased advertising campaignapproached with a great deal of inner reflection-mirrored well the craft brewer’s personality. CONCLUSION In just over a decade, New Belgium Brewing Company, Inc., had grown from a home-based brewery into one of the largest regional "craft" brewers in the United States. CONCLUSION Today, the third largest craft brewer in the U.S., New Belgium produces nineteen year-round beers; The firm's success was built on quality products, strong leadership, a dedication to its employees, and a deep respect for the environment. THANKS FOR YOUR LISTENING