New Belgium Brewing Case 8 – Group 3

Group members Yao Ju M99Y0206 Ninh M997Z211 Nancy M997Z228 James M99Z0216 Melva M997Z227 Allison M99Y0105

1.History New Belgium Brewing Company is a regional brewery brewery Location: Fort Collins, Colorado.Fort CollinsColorado Open in 1991 after Jeff Lebesch, the brewery's founder, took his home-brewing passion commercial. In 2006, it produced approximately 436,000 barrels of its various labels.barrels In 2008 their beers were distributed to 19 different states.

New Belgium’s Purpose and Core Beliefs Mission statement: “To operate a profitable brewery which makes our love and talent manifest.” Producing world-class beers Promoting beer culture and the responsible enjoyment of beer Continuous, innovative quality and efficiency improvements Transcending customers’ expectations Environmental stewardship: minimizing resource consumption, maximizing energy efficiency, and recycling

Kindling social, environmental, and cultural change as a business role model Cultivating potential: through learning, participative management, and the pursuit of opportunities Balancing the myriad needs of the company, staff, and their families Committing ourselves to authentic relationships, communications, and promises Having Fun.

2. SWOT analysis

2.1 Strength  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 micro-brewery 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.

2.2 Weakness  Management does not use traditional marketing to push the beer.  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

2.3 Opportunities  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.

2.4Threat  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.

Question #1 This bring some benefit for them: 1st: can help NBB test whether these spots reflect the brand core value, history and the natural sense about the mountain local lifestyle. 2nd: to make sure the spots does ring true to NBB character. 3 rd: Saving money and time.

Question #2 Giving the ad a timeless feeling influenced by the photography of the 1960’s documentarian. They want go with a maturity to be the topic of their beer advertising. They try to add a haunting sense of cheerful nostalgia to the works by giving the 16- millometer film stock giving a mid-1970s feel.

“Follow Your Folly…Ours Is Beer. ”Quick to embrace a reggae like score for one of the 15second spots.

Question #3 The roots- style can reduce the expense, hence it can increase the effectiveness of their advertising strategy Widening customers awareness of the brand to get more customers, raise the benefits and have their loyalty

Strengthening brand image => positively affect the customers The roots style also build a friendly connection to the customers, thanks to that the customer will understand more about the NBB, and the net market of the company will be widened.

Question #4 Employees: Internal marketing- Understood the strategy and marketing plan As a idea contributor in the development of advertising External marketing- As a connector between NBB and their customers Branding the images of NBB with their customers

Leadership: Employee participation: the entire crew was offered the opportunity to weigh in on the storyboards NBB allowed brewery employees to compose a reggaelike score for one of the 15 second spots － a playful little film called “Joust”

Employees: Internal marketing- Understood the strategy and marketing plan As a idea contributor in the development of advertising External marketing- As a connector between NBB and their customers Branding the images of NBB with their customers

Question #5 Indeed, the word ‘folly’ have a negative connotation, such as: uneducated, ignorant, and sloppy. But this word also have a positive meaning such as: fun, enjoy, and simple. As mentioned by NBB creative team, this word has a fresh new definition, it’s true. Because their use of the word with the tagline “Follow your folly”, make they are different than other beer company. This tag line also make NBB have the strong brand and further more focusing in their segment target market.