NEW BELGIUM BREWING (NBB) DEVELOPING A BRAND PERSONALITY

1. NEW BELGIUM BREWING (NBB)DEVELOPING A BRAND PERSONALITY CASE VIII MARKETING MANAGEMENT GROUP 06

2. OUTLINE • INTRODUCTION • SWOT ANALYSIS • NBB OLD MARKETING STRATEGY • NBB NEW MARKETING STRATEGY • NBB’S CORE VALUES AND BELIEFS • KEY FACTORS FOR COMPETITIVE SUCCESS IN THE INDUSTRY • RECOMMENDATION & CONCLUSION • Q & A

3. New Belgium Brewing Company, Inc. (NBB), was founded in 1991 and is based in Fort Collins, Colorado, 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, Trans atlantique Kriek, and Two Cherry Ale. Introduction

4. Introduction • It has locations in Arizona, Arkansas, California, Idaho, Illinois, Iowa, Kansas, Missouri, Minnesota, Montana, Nebraska, New Mexico, Nevada, Oregon, Texas, Washington, and Wyoming. • Founders Kim Jordan and Jeff Lebesch hold controlling interest in the company, which is partly owned by their employees. • The environmentally-friendly firm uses wind-generated electricity as well as heat and energy derived from byproducts of the brewing process.

5. Key dates 1991: 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; New Belgium beer is now sold in 15 states.

6. What make craft beer the fastest growing segment of US alcoholic beverage • Craft Beer is an American term which is also common in Canada and New Zealand and generally refers to beer that is brewed using traditional methods, without adjuncts such as rice or corn and with an eye to what's distinctive and flavorful rather than mass appeal or simply known as Traditional beer.

7. NBB SWOT Analysis

8. NBB SWOT Analysis

9. OLD NBB’S MARKETING STRATEGY • For the first four years, NBB’s marketing consisted of travelling to beer festival and handling out free samples, relational marketing with its Ranger team. • Since 1996, NBB do festivals, sponsorships, and also coupled with print media in alternative weeklies, increased brand sales to over 100,000 barrels. • Introduced signature NBB’s events such as multicity philanthropic bike festival, Tour de Fat

10. TOUR DE FAT Tour de Fat is a bicycle parade and festival sponsored by New Belgium”. Bike trade: a local participant give the keys and title of their motor vehicle to New Belgium in exchange for a new commuter bike and trailer to promote bike riding and sustainability

11. NBB’S NEW MARKETING STRATEGY • With expanding distribution, in 2003 NBB consulted by Dr. David Holt, an Oxford professor and branding expert and Advertising agency to make a new campaign base on: • Brand manifesto • Selecting the right media • Message Development • Cultural branding

12. BRAND MANIFESTO Holt created a Manifesto along with Osley (marketing director) describing the Company’s brand’s attributes, character, cultural relevancy, and promise. Collaborated with Amalgamated Inc. which later used this manifesto as a guide and later created campaign’s tagline :“Follow Your Folly… Ours Is Beer” • In particular, NBB set clear brand identity, pursue creative activities simply for the joy of doing them well and in harmony with the natural environment

13. SELECTING MEDIA • Television was chosen as the preferred medium since its more authentic and people likes advertising more if mixed with entertainment. Also it would reach to wider audience and those faraway outposts where Ranger sales staff penetration was difficult and costly. • Theatrical screenings: NBB first embarked on mass marketing with the release of its "Tinkerer" television commercials in 2005, series of storyboards resembling the symbol of the company's most popular brand, Fat Tire.

14. SELECTING MEDIA • 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. • New Belgium focused its initial social media outreach strategy on Facebook and Twitter.This Integrated campaign generates 25% increase in size of social network • Silver-screen presence: Movie producers usually contact New Belgium to request use of the beer and brand in a film • Events : Keep going to promote “Tour de Fat”, and other charity, sponsorship programs, such as “Holiday Folly”

16. Message Development • NBB understands the mindset of people where a highly creative activity or avocation is pursued for the intrinsic value of doing it, as well as performed in a balanced manner with nature. NBB’s beers are positioned as a manifestation of that lifestyle • In a sea of loud, flashy beer advertisingwhere marketers are seeking ever more new means to cut through the clutter NBB chose to redefine the category in a very traditional medium and positioned itself as whimsical, thoughtful, reflective. This speaks of the NBB’s personality setting them apart from its rival and quickly founding its place among its loyal followers.

17. Message Development • NBB also emphasizes on eco-friendly practices and employee ownership in its marketing materials. • Roots style became more important to speak to the insiders and who help build the brand , and events become more important as a source of feedback and dialogue with biker community. • NBB advertisments use daily life icons and ordinary activities that made customer feel close with the message that they want to deliver.

18. CULTURAL BRANDING • What sets New Belgium's campaign apart is that it is actually promoting its cultural among other people and groups. The campaign is really focused on encouraging NBB fans to make positive changes in their lives. • Their several taglines :"Follow your folly, ours is beer“, "The first wind powered brewery in America!" and a variation "Wind Powered, Employee Owned” is inviting us to not only drink their beer but to be part of their company's culture. • All of NBB operations and activities unity with its environmentally responsible operations. : first wind-powered brewery in the country, Brewery’s image with green organic look from label to packaging , the three 'R's Reduce, Reuse, Recycle for environments. New Belgium Brewing Purpose Statement: To operate a profitable brewery which makes our love and talent manifest

19. NBB’S CORE VALUES AND BELIEFS • Remembering that we are incredibly lucky to create something fine that enhances people's lives while surpassing our consumers' expectations. • Producing world-class beers. • Promoting beer culture and the responsible enjoyment of beer. • Kindling social, environmental and cultural change as a business role model. • Environmental stewardship: Honoring nature at every turn of the business.

20. NBB’S CORE VALUES AND BELIEFS (cont`d) • Cultivating potential through learning, high involvement culture, and the pursuit of opportunities. • Balancing the myriad needs of the company, our coworkers and their families. • Trusting each other and committing to authentic relationships and communications. • Continuous, innovative quality and efficiency improvements. • Having Fun.

21. Key Factors for Competitive Success in the Industry • 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. It resonates with an increasingly eco-conscious consumer • Consumers believe in and feel good about this product. • Loyal beer drinking consumers. • Their core values and beliefs are to be environmentally concerned and socially responsible brewers. • The employee loyalty programs are unmatched by any other craft/micro-breweries. • The pricing of a 6-pack of beer is competitive.

22. Recommendation • New Belgium Brewing Company does a great job on running an environmental, ethical and socially responsible business. However the lack of an active marketing campaign could lead the micro brewery out of the consumers mind. They do have a lot of positive public relations with their socially responsible events in the community and employee relationships. The brewery needs to do some print ads in socially responsible magazines that their customers read. • For cost and environmental reasons, New Belgium should make more effective partnerships with brewers in other states to make each other's beer at the other's plant and avoid transportation costs and excessive energy consumption.

23. Conclusion • The key drivers to survive and create its brand personality in this industry are:o Create your own value and set clear stategy for it to get customer loyalty.o The strength of batches of beer made.o The ability to maintain inventory such as the special yeast and barley.

24. QUESTIONS & ANSWERS • Question 1: New Belgium has focused heavily on the use of environmentally friendly technologies. Such technologies are costly. How does this added expenditure benefit the company? • It benefits them by keeping down the waste that they have and helps them to save money on thermal and electric energy. It also shows customers and others that they care about the environment

25. Question 2: Some segments of society contend that selling alcoholic beverages cannot be socially responsible. Do you believe that New Belgium Brewing is in touch with environmental trends? Why or why not? • We believe they are in touch with environmental trends because they recycle chipboards, magazines, shrinkwrap, etc. They use Suntubes, which uses outside lights and they are a windpower brewery. They also give their employees cruiser bikes after they have been with the company for a year. They are not just about making beer, they are about the consumers.

26. Question 3: Rather than testing its television spots using focus groups, NBB 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. • Since the company approach is different, It became even more important to speak to the insiders who helped build the brand in the same authentic and personal idea, they had come to know and react in a positive way with the marketing strategy.

27. Question 4: How does the use of 16 millimeter film and Freak Folk music relate to New Belgium’s advertising objectives? • From the companies message “it is the cultural counterpoint to the Urban Professional” Reflect the company manifesto and the mountain local lifestyle • The 16- millimeter film give us a mid 1970s feel buoyed and more substandard look than compared to the 70-mm. This would give a classic feeling to the product • And together with the “Freak Folk” song viewers can link to a more personal level and it brings out a wistful atmosphere. • The ad emphasizes the message that would like to describe a way that would capture the audience.

28. Question 5: What are some benefit of NBB’s decision to redoubles its roots-based, personal touch marketing efforts aimed at its mature market? • This unique and creative marketing strategy bring a fresh, different approach , the company acted like a fellow citizen of the world. That core of social responsibility, will share the same value with its customer, then they will enjoy supporting companies who share the same values with them.

29. Question 6: What roles did the advertising agency, NBB`s leadership, and NBB`s employees play in the development of the advertising campaign? The role of advertising agency: • The advertising agency helps to capture the brand image of New BelAmalgamated Inc. explored a wide breadth of possibilities within a restrictive budget and conduct the advertising campaign to its most possible success. • The role of NBB’s leadership: • New Belgium’s leadership plays a role in defining the image that New Belgium wants to convey to the market and distinctly point the boundaries of its brand image , also to embrace the latent talents of their own crew, they allowed brewery employees to compose a reggae like score. • The role NBB’s employees: • Employees must act, behave and serve customers accordingly to the way New Belgium’s brand would convey its image, NBB’s employees is the well inner reflection of the company first television-based ads campaign. • NBB team reacted positively to Amalgamated’s suggested tagline and send a healthy volley of e-mails to distribute their opinions to the campaign’s tagline

30. Question 7: NBB seemed to agonized over the use of the word “folly” in its advertising campaign. What do you make of the company’s struggle with this decision? Also, how do you personally feel about their use of the word? • The initial disagreement regarding the use of the word “FOLLY” was due to the fact that it had too negative or connotation that goes against the science and technology it took to produce such consistently high-quality beers. • We think that NBB were right in using the word “FOLLY” for their advertising campaign since they were trying to position themselves among those professional or group of people who follows the traditional route of existing within a capitalist economy but still has artistic leanings and desires. • NBB beers was a manifestation of that lifestyle. The founder of the NBB Jeff Lebesch himself was a electrical engineer by profession and brewer by hobby before he followed his “FOLLY” and since Holt (consultant for NBB) who was the leading proponent of “Cultural Branding” – a philosophy of branding that tries to speak to tensions within society in this case following your passion or your inner desires, choosing the word “Follow your Folly.. Our is beer” was aptly chosen.

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