Transcript The Distribution of New Belgium Beer

New Belgium Brewing Co.
Presented by Group One
Group One
Members
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Contents:
Background &History of NBB
Company Objective
SWOT Analysis
Recommendations
Conclusion
Review Questions
Q&A
Overview
New Belgium Brewing Company is a regional brewery located in
Fort Collins, Colorado. It was founded in 1991 by the husband
and wife team of Jeff Lebesch and Kim Jordan
In 1992, New Belgium Brewing operations move to renovated
freight warehouse
In 1995, Company moves into a new $5million brewery
In 1999, Company begins to use wind-generated electricity
In 2004, Distribution is expanded to Southern California
In 2006, it produced approximately 436,000 barrels of its various
labels. And in 2008 their beers were distributed to 19 different
states.
Distribution
Before 2006, New Belgium distributed in only 15 states (Washington, Oregon, Idaho,
Montana, Nevada, California, Arizona, New Mexico, Wyoming, Nebraska, 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. By the summer of 2007, New Belgium expanded distribution again to include
select areas of the Minneapolis-St. Paul Minnesota metro area and Iowa.
In July 2008, Fat Tire, 1554, Mothership Wit, and seasonal brews are also served in
Tennessee.
In March 2009, these beers also became available in North Carolina.In April of 2009,
in response to huge demand, Fat Tire became available in Indiana.In May of 2009 Fat
Tire became available in Georgia, South Carolina, South Dakota and Wisconsin.
New Belgium Products
“Our Folly”
Seasonal Brews
Corporate Objectives
• Environmental Concerns
– cost efficient energy-saving alternatives
– creative reuse strategies for reducing waste
• Social Concerns
– improving communities and enhancing people’s
lives
– charitable donations
SWOT: Strengths
• 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.
• Highly creative advertising.
SWOT: Weakness
• The Segmented Market of NBB
New Belgium now has segmented to the bicycle groupies
only. It’s limiting their market into a small scope of
people; people who loves biking.
• The Distribution of New Belgium Beer
At the moment, NBB can only be found in western and midwestern parts of US. They hardly reach the eastern and
southern areas of US.
SWOT: Opportunities
• Expansion of plant to triple capacity,
• production increasing to more than 230,000
barrels.
• NBB introduced its beers into a new market,
expanded to Southern California; available in 15
states west of the Mississippi, with Iowa and
Minnesota slated to be added next.
SWOT: Opportunities
• The combination of the
New Belgium Brewing
Company and Andrews
Distributing Company ,
one of the Nation’s leading
beverage distributors and
brand builders, is the key to
distribute NBB products
into Texas area.
• Through “Tour De Fat’’
NBB drives its brand
recall ‘’Follow Your
Folly’’ through 11
western cities.
SWOT: Opportunities
• The youthful, thoughtful advertising , on
television spots will attract consumers.
SWOT: Threats
 Competitors in America’s third largest craft brewer, ex : #1. Sam
Adams and #2. Sierra Nevada.
 Competitor in The “Big Three” brewers dominated mainstream
televised beer advertising in USA (Anheuser-Bush, Coors, Miller).
 The shift in Customer demand, needs and wants, like how beer
should taste, premium products had to be placed in stores etc
 Federal and state policies on the environmental and social
responsibilities of a beer company
SWOT: Threats
Competitors in America’s third largest craft
brewer, ex : #1. Sam Adams and #2. Sierra
Nevada.
SWOT: Threats
Competitor in The “Big Three” brewers
dominated mainstream televised beer
advertising in USA (Anheuser-Bush, Coors,
Miller).
SWOT: Threats
The shift in Customer demand, needs and wants,
like how beer should taste, premium products
had to be placed in stores etc
Federal and state policies on the environmental
and social responsibilities of a beer company
Recommendations
• Seemingly, using a negative word like “folly” in the
advertisement may undermine the image of the company. But in
fact NBB has succeeded in creating an impressive advertisement.
NBB success to attract the viewer attention, the message not
only promotes the product but it relates to a lifestyle.
• They want to connect with consumer through their
advertisement - specific segment in the market can generate a
high level of brand loyalty with high risk as a great opportunity
to build a strong brand culture.
Recommendations
• NBB take much care of ethical and environmental
issue, i.e. Tour de Fat.
• The ads helped position the growing brand as
whimsical, thoughtful, and reflective. In addition to
the ad campaign, the company maintained its
strategy of promotion through event sponsorships.
• Focus on a man rebuilding a cruiser bike out of used
parts and then riding it along pastoral country roads
Conclusion
 NBB is really consistent in the determine their market
target, and it’s good for their focus of maintain and
building relationship to their customer also to recognize
their customer needs and wants, that effect on customer
loyalty to their product.
New Belgium Brewing Company put their attention
to environmental, ethical and socially issue like their
plan to reduce their carbon footprint by 25%, reduce
their water usage by 10% and increase our landfill
diversion rate from 89.5% to 95%.
Question 1
• Rather than testing its television spots
using focus groups, New Belgium Brewing
Company instead tested these spots using
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 groups.
Question 1 (cont.)
– NBB build the brand with a strong customer base. First, NBB thrived on
word-of mouth communication to sell the brand . Second, NBB’s marketing
consisted of travelling to beer festivals & handing out free samples.
– NBB understood at the inception that the power of television could work
to bolster the brand with equal efficacy and to speak to the insiders who
helped build the brand in the same authentic and personal tone.
– NBB’s advertising is a good way to keep and to communicate with the
customer.
Question 2
• How does the use of 16-milimeter film and Freak Folk music
relate to NBB’s advertising objectives?
– With 16-mm film and Freak Folk music brings out a mid-1970s
nostalgic atmosphere
– This would give a classic impression to the product.
– The simple takes of the ad emphasizes the message they would like
to portray in a way that would capture the audience.
– The consumers can enjoy NBB’s products with a special classic style.
Question 3
• What are some of the benefits of NBBs decision to
redouble its roots-based, personal touch marketing
efforts aimed at its mature markets?
– The roots-based of NBB is: the inner reflection. This is
showed or implied in NBB’s promotion or public relation
activities, such as: NBB launched an educational
“Beerstream” , introduced signature NBB events as the
multicity philanthropic bike festival, Tour de Fat, …
Question 3 (cont.)
– Improving customer awareness to the brand: get customer
loyalty
– Strengthening brand image: positive impact on youthful
people and expand its network
– Making the Differentiation: bicycling imagery shot, target
customer
– Cost effective, resource effective: increase the effectiveness
of their advertising strategy.
– More focused objective: increase profit market share globally,
especially in America
Question 4
• What roles did the advertising agency, NBB’s
leadership, and NBB’s employees play in the
development of the advertising campaign?
– The advertising agency, NBB’s leadership, and NBB’s
employees play the important role in deliver their
brand personality together: Cultural brand that is
whimsical, thoughtful and reflective .
Question 4 (cont.)
• The advertising agency create:
• The campaign’s tagline “Follow Your Folly” which is contrary to
the traditional ideal of, ‘’Follow the money”.
• The “Tinkerer” , a series of storyboards that can reflect the
image of the compromise between living the life one wants with
balancing the economic needs of existing within a technopoly.
• The texture of the advertising film and the musical tone also
capture the ideals of whimsy and joy inherent to NBB’s
philosophy.
Question 4 (cont.)
NBB’s leadership
• Choosing advertising strategy and managing
NBB and advertising campaign which
accordance with the company’s philosophy.
• Allow the NBB’s crews share their opinion.
Question 4 (cont.)
NBB’s employees:
• NBB team reacted positively to Amalgamated Inc. suggested
campaign’s tagline and send a healthy volley of e-mails to share their
opinions to the campaign’s tagline.
• To maintain the track of the original goal of the company that produce
excellent product that doesn't have negative impacts on the
environment.
• The company would pay a 26 percent higher rate for the power, which
would reduce emissions of “Carbon dioxide” associated with coal-fired
electricity. NBB's 105 employees had voted in favour of the move,
which was financed in part by reducing their annual bonuses.
Question 5: Why Folly?
• The meaning of folly:
1. Lack of good sense or normal prudence and
foresight
2. A foolish act or idea
3. A criminally or tragically foolish actions or conduct
(definition courtesy of Mirriam Webster’s dictionary)
Question 5: (cont.)
“our brews represent a huge part of
New Belgium’s culture ”
When Jeff Lebesch made a bicycle trip across Europe, he didn’t expect to
have such a big inspiration to successfully brew new beer taste.
What he did is just to follow his folly and make an unthinkable bicycle trip
across Europe. Just for the sake of fun.
So this what makes the company stay with its Follow Your Folly ads.
Because it represents its culture. To laid back, enjoying you time and
not to be preoccupied with the world’s hectic atmosphere.
Question 5: (cont.)
• Using Folly word…for us?
By stating Folly on their ad and giving a whole new
meaning of it.
We believe that this will be a new way to make this word
doesn’t sound as negative as it is now.
Because in life, everything must be balance. Between your
work and your play. Follow Your Folly means to
balancing your life. And that’s what this product trying
to market here.