New Belgium Brewing Developing a Brand Personality Group 1 Members Damar M997Z229 Chayaporn M997Z224 Binh M997Z248 My M997Z222 Hanh M997Z220 OUTLINE Introduction -New Belgium Brewing Timeline -NBB’s Core Values and Beliefs (CVBs) -New Belgium Brewing Achievement -New Belgium Brewing Products Line Message Development -Mindset Personification -The Mindset -Advertising Campaign New Belgium Brewing Strategy -Events, sponsorships, interactive games -Media -Grant SWOT Analysis Questions & Answers Introduction New Belgium Brewing Timeline New Belgium Brewing Introduction New Belgium Brewing Company is one of the largest regional brewers in the United States, producing a variety of beers under five product lines which distributed to twenty-six states New Belgium Brewing Timeline 1991: Established in 1991 in Fort Collins by Jeff Lebesch and Kim Jordan , they 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. New Belgium Brewing Timeline 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 2010: New Belgium beer is now sold in 26 states. Introduction NBB’s Core Values and Beliefs (CVBs) NBB 10 Core Values and Beliefs (CVBs) • Remembering: that it is incredibly lucky to create something fine that enhances people’s lives while striving to continue to surpass its consumers’ expectations. • Producing: world-class beers. • Promoting: beer culture and the responsible enjoyment of beer. • Kindling: social, environmental and cultural change as a role model of a sustainable business. • Environmental stewardship: honoring nature at every turn of the business. NBB 10 Core Values and Beliefs (CVBs) • Cultivating potential: through high involvement culture and the pursuit of opportunities. • Balancing: the myriad needs of the company, staff and their families. • Trusting: each other and committing to authentic relationships and communications. • Continuous: innovative quality and efficiency improvements. • Having Fun Introduction New Belgium Brewing Achievement New Belgium Brewing Achievement • Sold 582,797 barrels in 2009. • Expected to sell over 700,000 barrels in 2010. • As of August 25th, 2010 the company have 372 employees. • NBB is America’s third largest craft brewer • Ranked the 7th in total US beer industry. New Belgium Brewing Achievement Craft Industry Rank Total US Beer Industry Rank 2009 3 7 2008 3 8 2007 3 8 2006 3 9 2005 3 12 Craft Brewing Industry Vs New Belgium Brewing Company 3 & 5 Year Compound Annual Growth Rate in Volume/Barrels 11.9 % 12.00% 10.00% 10.0% 8.2% 9.0% 8.00% Craft Brewing 6.00% New Belgium 4.00% 2.00% 0.00% 3 Year CAGR 5 Year CAGR Introduction New Belgium Brewing Products Line Product Line Follies Sunshine Wheat Fat Tire 1554 Blue Paddle Seasonal Hoptober Skinny Dip Mighty Arrow Frambozen 2 Below Explorer SeriesTrippel RangerIPA Abbey Mothership Wit Collaberration Tripple IPA Trip III Trip IV The Trip II Trip V Lips of Faith Abbey Grand Cru Vrenden Ale Sahti Ale La Folie Le Fleur Misseur Transatlantique Kriek Biere Style Blond Ale Imperial Berliner Weiss Eric's Ale Belgo IPA Message Development Mindset Personification Message Development Mindset Personification ✓New Belgium Brewery’s character conveys through the TV commercials in the way that matches style and life preferences of its core consumers • the urban professional such as executives, lawyers, accountants • live in Kansas or Missouri but come to Colorado for a ski week every year to indulge in the mountain lifestyle • follows the traditional route of existing within a capitalist economy • has artistic leaning and desires. Message Development Mindset Personification ✓NBB beers could be positioned as a ‘manifestation’ of the living the life with one wants and balancing the economic needs of existing Message Development The Tinkerer Message Development The Tinkerer ✓Developed a series of story board by using a ‘Tinkerer’ characteristic who discovers an old cruiser bike for its commercials. ✓Allowed the entire NBB crew to weigh in on the storyboards. Message Development The Tinkerer ✓Amalgamated’s suggested tag line ‘Follow Your Folly…Ours Is Beer’ • Several people suggested that folly had too negative a connotation, it improper for high-quality beers. • But the creative team suggested that it was time for reinterpretation and a fresh new definition for a word ‘folly’. • Finally, after the debate ‘Follow Your Folly’ became the campaign tagline. Message Development The Tinkerer ✓Jake Scott was chosen to be a director for it NBB ‘Tinkerer’ commercials. • Shooting the spot on 16millimeter film stock. • Scouted locations throughout Colorado. • Scott decided on Charles Srbecky, a boulder craftsman to play the Tinkerer. Message Development The Tinkerer ✓Chosen a musical for the commercials • ‘Freak Folk’ by Devandra Banhart. • A haunting sense of cheerful nostalgia. ✓NBB’s product appeared only in the last five seconds of the commercials ‘Follow Your Folly…Ours Is Beer’ Message Development Advertising Campaign Message Development Advertising Campaign ✓Even as NBB decides to speak to a wider audience through a new medium the roots-style could not be abandoned ✓It became even more important to speak to the insiders who helped build the brand in the same authentic and personal tone they come to know and embrace Message Development Advertising Campaign • Events became an even greater opportunity to maintain that vital dialogue. • NBB turned to insiders in the bike community and friends of the brewery with some personal history and knowledge of the brand. Message Development Advertising Campaign ✓NBB’s television-based advertising campaign mirrored well the craft brewer’s personality. In a sea of loud, flashy beer advertising aimed at a youthful demographic. ✓NBB positioned itself as whimsical thoughtful, and reflective. New Belgium Brewing Strategy New Belgium’s Marketing Strategy Events, sponsorships, interactive games: • ‘Ranger Team’ is a sales staff acts as brand stewards throughout territories of distribution. • ‘Tour de Fat’ is the multicity philanthropic bike festival • ‘What’s Your Folly?’ is a contest which invites consumers to pitch their Beerdream to win immoral fame on a NBB postcoaster. • ‘The Worthy Endeavor’ is a web-based contest, applicants can win a trip to the Grested Butte Al Johnson Uphill Downhill. New Belgium’s Marketing Strategy Media: • NBB’s team collaborated with Amalgamated Inc., a young upstar advertising agency in New York, to flesh out the brand’s cultural contributions. • NBB advertising through a mix of radio shorts, television, theatrical screening. • Created a television campaign, beer advertising in the United States. • Launched a social media campaign through facebook, twitter, youtube. Consequently, successfully grown the brand's online community. New Belgium’s Marketing Strategy Grant: • Focus on philanthropy and environmental sustainability • NNB’s small grants program($500-$5,000) in order to connect with the local communities where its beers are sold. Consequently, cultivate relationships with communities. 2009 Supported Organizations Small Donations Outside of Main Categories, 5% 2009 Local Grants Program $490,000 Youth Environmental Education, 15% Sensible Transportation & Bike Advocacy, 34% Small Donations Outside of Main Categories Youth Environmental Education Sustainable Agriculture Sustainable Agriculture, 17% Water Stewardship Water Stewardship, 29% Sensible Transportation & Bike Advocacy 2010 Quarter1 Donation Summary 2010 Qurter1 Donation Summary Water Stewardship, 28% Youth Environmental Education, 27% Youth Environmental Education Sustainable Agriculture Sensible Transportation & Bike Advocacy Sensible Transportation & Bike Advocacy, 33% Water Stewardship Sustainable Agriculture, 12% SWOT Analysis SWOT Analysis Strength • Well treated employees, as consequently employees committed to their job. • A variety of beers under five product lines. • Strong brand name among customers. • Privately owned company with a lot of capital resources. • Environmentally, socially, and ethnically responsible company. SWOT Analysis Weaknesses • BNN does not use traditional marketing to advertise their beer. • Deals only with small stores. • Vulnerable to technological changes. • Rather than focus on it core business of making beer, NBB dedicate to social programs • Limited distribution (only 26 states) SWOT Analysis Opportunity • ‘Tour de Fat’, which sponsored by NBB, make its brand to be the world well-known brand. • Beer and brewery industry has been developing in many countries globally. • Develop small scale business and emerging enterprises to get a higher market share. • Can be expand trough 50 states over the country to enter new market. SWOT Analysis Threat • Competitors ability to imitate NBB. • Competitors have better products with high quality than NBB, such as Anheuser-Bush, Coors and Miller. • The “Big Three” brewers have long dominated mainstream televised beer advertising in USA. • Customer demand, needs and wants requirement is increasing. (the taste, premium products, distribution channels) QUESTIONS & ANSWERS THANK YOU FOR YOUR ATTENTION