New Belgium BrewingDeveloping A Brand Personality

Victor Marbun (victor) M987Z259

Li Merlina (Merlin) M987Z246

Thidarat Prasitpornphakdee

(Nok) M987Z245

Huynh Than Phong (phong) M987Z242 Nguyen Thi Thanh Nhan

(Nhan)M987Z232

GROUP 2 MEMBERS

Content1.Introduction, 2. Promotion Strategy, 3. SWOT Analysis, 4. Key Success Factors, 5. NBB’s Social and Environmental Responsibilities, 6. Conclusion, 7. Questions and Answers

Introduction1991: 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;Present: New Belgium beer is sold in 15 states.

Introduction• New Belgium Brewing Company, Inc., 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, Transatlantique Kriek, and Two Cherry Ale.

• The environmentally-friendly firm uses wind-generated electricity as well as heat and energy derived from byproducts of the brewing process.

Introduction• Tour de Fat is an annual pro-bike tour sponsored by New

Belgium. • The events, which take place in various large cities around

the West, include music, New Belgium beer, circus-type performances, bicycle dance troupes, and the main event: a giant group bike ride/parade where everyone dresses up in costumes and rides through town.

• One huge part of the event is a bike trade, in which a local participant transfers the keys and title to their vehicle to New Belgium, in exchange for a new commuter bike and trailer in order to promote bike riding and sustainability.

Promotion Strategy• New Belgium focused its initial social media outreach

strategy on Facebook and Twitter.• New Belgium Brewing has always taken a fresh

approach to its marketing using unique creative executions with a focus on philanthropy and environmental sustainability. So, it comes as no surprise that 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

SWOT AnalysisStrength• Well treated employees who enjoy their job• Comprehensive product lines of different beers• Strong brand name among customers• Privately owned company with a lot of capital

resources• Environmentally, socially, and ethnically responsible

company.• Employees are committed to their job because of the

treatment the receive.

SWOT Analysis Weaknesses• BNN does not use traditional marketing to advertise their

beer.• Deals only with small stores and usually is not in larger

stores.• Vulnerable to technological changes• Rapid growth leads to many social programs and not focus

on the core business of making beer.• Limited distribution• Higher costs since they cannot utilize economies of scale.

SWOT Analysis Opportunity• Tour de Fat”, which sponsored by NBB, give its

brand name to everyone all over the world.• Beer and brewery industry has been

developing in many countries globally.• Develop small scale business and emerging

enterprises to get a higher market share.

SWOT Analysis Threat • Ability of some companies to copy their beer’s

method.• 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 is increasing, i.e.

how beer should taste, premium products had to be placed in stores…

Key Success Factors• Customer relationship. NBB engage its costumer by

following some activity like developed engaging contest like “what’ s your folly?”. It is impact to the customer loyalty.

• Relational marketing, done barstool to barstool with its “Ranger Team”- a sales staff who acts as brand stewards throughout territories of distribution.

• Pro active marketing effort (Festival and sponsorship, coupled with print media is held by company).

• Interesting television campaign and “cultural advertisement” in TV.

Key Success Factors• Corporate social responsibility. NBB introduced

signature NBB events as the multi city philanthropic bike festival, and others that is make good image to consumers.

• Developing a brand manifesto. Cultural branding is made with excellent brand’ s attribute, character, cultural relevancy, and potential. This project in collaboration with Amalgamated, an advertising company.

• Media Selecting. Television with its low cost per viewer and wide reach, quickly rose as the preferred option.

NBB’s Ethnical and Environmental Responsibilities

• The company stated core values and beliefs about its role as an environmentally concerned and socially responsible brewer– Environmental stewardship: minimizing resource

consumption, maximizing energy, efficiency, and recycling

– Kindling social, environmental, and cultural change as a business role model

– Balancing the myriads needs of the company, staff and their families

NBB’s Ethnical and Environmental Responsibilities

• Employee Concerns– New Belgium recognizing employees' role in the

company success, they provide many benefits:– Employee can bring their children and dogs to work– Those who stay with the company for five years earn

an all expense paid trip to Belgium “to study beer culture”

– Employees can earn stock in the privately held corporation

– Open book management, let employee see the financial costs and performances

NBB’s Ethnical and Environmental Responsibilities

• Philanthropy– Also known as Brew-lanthrophy – For every barrels of beer sold, the company

donates $1 to philanthropic causes within their distribution territory

– Looks for non-profit organizations that demonstrate creativity, diversity, and an innovative approach to their mission and objectives

NBB’s Ethnical and Environmental Responsibilities

• Event Sponsorship– Became sponsor a number of events, with a

special focus on those that involve "human-powered” sports that cause minimal damage to the natural environment

– Through “Tour de Fat” NBB support various environment, social, and cycling nonprofit organizations.

NBB’s Ethnical and Environmental Responsibilities

• Environmental Concerns– New Belgium Brewing Co. in Ft. Collins, Colo., winning the

Environmental Excellence Award from the Business Ethics Awards, US at 2003.

– NBB is the first fully wind powered brewery in US– Using “sun tubes" which provide natural daytime lighting

throughout the brew house all year long– Encourage its employees to reduce air pollution by using

alternative transportation. Give n its employees “cruiser bikes” after one year of employment and encourages them to ride to work

– Reduce, Reuse, Recycle-the three ’R’s of being an environmental steward

Conclusion• New Belgium Brewing targets to niche market of bike

communities and beer lovers but they are loyal to the company.

• The selection and use of right slogan “Follow Your Folly” brings the brand personality for its products and customers.

• The success of “Tour de Fat” ,which is organized yearly, greatly contribute to build up a brand image of NBB as a green brewing company that recycle and reuse materials.

• NBB always concerns environmental and social issues as their responsibilities of a brewing company to the community

Questions & Answers1. Rather than testing its

television spots using focus groups, NBB

used 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 group

The insiders (bike communities and friends of the brewery) are those who helped build the brand, therefore, they need to know and embrace company’s new advertising strategy.Focus group did not represent the whole target customers and didn’t know so much the company.

Questions & Answers

2. How does the use of 16

millimeter film and freak Folk

music relate to NBB’s

advertising?

The use of 16 millimeter film and Freak Folk music giving audience the mid-1970s feel and sense of cheerful nostalgia to the works which best fit the NBB’s advertising objectives “the audience for NBB’s commercials would likely be the professional who follow the traditional route of existing within a capitalist economy but still has artistic leaning and desires”

Questions & Answers

3. What are some of the benefits

of NBB’s decision to

redouble its roots-based,

personal touch marketing

efforts aimed at its mature

markets.

In the mature market, the competition is much fiercer, redouble NBB’s roots-based personal touch marketing efforts brought some benefits:– To test the market– To get the reaction of giant in the

industry – Reduce expense on media

Questions & Answers4. What roles did

the advertising agency, NBB’s

leadership, and NBB’s

employees play in the

development of the advertising

campaign?

1. Advertising agency:- From the BNN’s mind-set,

develop a series of storyboards- Produce advertising spots.2. NBB’s leadership- Figure out the mind set- Choose the advertising agency3. NBB’s employees- Vote the storyboards.

Questions & Answers5. NBB seemed to

agonize the use of the word “folly” in its advertising

campaign. What do you make of the company’s

struggle with this decision? How do

you feel about their use of the

word?

“Folly” is used in the campaign to aptly alluded to the ideal of offbeat endeavors, not “follow the money”. Its meaning quite suits the image of Tinkerer who in the advertising spot.