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New Belgium Brewing
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Contents
1. Introduction
2. Customer Behaviors
3. Promotion Strategy
4. SWOT Analysis
5. Key Sussess Factors and
Environmental Responsibility
6. Conclusion
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INTRODUCTION
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Introduction
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New Belgium Brewing started its business in
1991 as a tiny basement operation of a
couple Jeff Lebesch and Kim Jordan in Fort
Collins-Colorado- USA.
In 2006, it produced approximately 436,000
barrel of its various labels.
In 2008 their beers were distributed to 19
different states.
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PRODUCTS
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DISTRIBUTION
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Before 2006, New Belgium distributed in only 15 states,
Washington, Oregon, Idaho, Montana, Nevada,
California, Arizona, New Mexico, North Carolina,
Wyoming, Nebreska, Kansas, Texas, Arkansas, Missouri,
Colorado).
In spring 2006, the brewery began to distribute some of
their beers in other markets. Bottles of Fat Tire
distributed in Chicago claim "Chicago Inaugural: The 1st
Fat Tire Ale served (legally) in the second city." In June
2007 Fat Tire, Skinny Dip, 1554 and Mothership Wit
became available in Illinois.
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CUSTOMER BEHAVIORS
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Beer is a special product,
so customer is also special.
Beer consumption is
overwhelmingly maledominated, with men
accounting for more than
80% of the volume
consumed.
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.
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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.
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Friends group usually go to pub or restaurant to drink beer for
fun.
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Colleagues or staff go to drink for work or special party.
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Partner go for drink to discuss about company’s contract or
cooperation.
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Family spend most of their leisure time at home, so they want to
enjoy a drink at home without the worry about driving.
The person whose age is from 18 to 60+ can drink beer.
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Much of men use this product more than women
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In some countries (such as Asian area), unemployed people
usually spend time drinking.
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PROMOTION STRATEGY
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For many years, the brewer, best known for Fat Tire
Amber Ale, thrived on word-of-mouth communication
to sell the brand.
NBB’s marketing consisted of traveling to beer
festivals and handing out free samples.
In 1996, NBB became more focused and proactive on
marketing efforts.
Introduced such signature NBB events as the
multicity philanthropic bike festival, Tour de Fat.
Developed engaging contests like “What’s Your
Folly?” which invites consumers to pitch their
Beerdream to win immoral fame on an NBB
postcoater.
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All events, sponsorships, and interactive games
have been bolstered by strategic purchase of
print media advertising.
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Developed a series of storyboards for the
commercials featuring the “Tinkerer”.
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They carried out NBB’ first television-based
advertising campaign named “Follow Your Folly”.
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After working with the manifesto, NBB selected
television as one of the main advertising
campaigns to attract customer.
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SWOT ANALYSIS
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Strength
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Cleaver marketing concept: “Follow Your
Folly…Ours is Beer”. The message not only
promotes the product but it relates to a lifestyle.
Well treated employees who enjoy their job.
Environmentally, socially, and ethnically
responsible company.
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Comprehensive product lines of different beers.
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Strong brand name among customers.
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Weakness
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Marketing does not use traditional marketing to
advertise their beer.
They may not focus on the core business of
making beer.
Higher costs since they cannot utilize economies
of scale.
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Opportunities
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Building a strong brand culture.
“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.
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Threats
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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 the United
States. Compete with the messages:
- Boston Brewing : interesting case study.
- Sam Adams : a beer of highest quality.
Customer demand, needs and wants is increasing,
i.e. how beer should taste, premium products had to
be placed in stores…
The message from NBB could be misunderstood.
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KEY SUCCESS FACTORS
and
ENVIRONMENTAL RESPONSIBILITY
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Key Success Factors
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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.
Consumers believe in and feel good about
this product.
Loyal beer drinking consumers.
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Their core values and beliefs are to be
environmentally concerned and socially
responsible brewers.
The employee loyalty programs are
unmatched by any other craft/microbreweries.
Their commitment to the environment and
social concerns.
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Environmental Responsibility
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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.
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Environmental Concerns
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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. Given 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.
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Social Concerns
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.
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.
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CONCLUSION
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Conclusion
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NBB’s success to attract customer by using
television advertising campaign.
Relationship Marketing should be one of the
core activity for niche marketing.
NBB take care more on environment issue.
NBB chose to redefine a category where ads
are acceptable and the rare good ones can
still be groundbreaking, thoughtful, and
effective.
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