Answered: 1. How has New Belgium implemented the…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Transcribed Image Text:based Customer-Driven Strategic Marketing | Chapter 1 23 VIDEO CASE 1 Cruising to Success: The Tale of New Belgium Brewing In 1991, Jeff Lebesch and Kim Jordan began making delivering beer in her Toyota station wagon. As a craft Belgian-style ales in their basement. The impetus for the brewer, NBB uses a premium pricing strategy. Its products brewery occurred after Lebesch had spent time in Belgium are priced higher than domestic brands such as Coors or Budweiser, and have higher profit margins. The popularity lieved he could manufacture high-quality Belgian beers in of NBB beers has prompted rivals to develop competitive products such as MillerCoors' Blue Moon Belgian White. Perhaps the most notable dimension of NBB's marketing riding throughout the country on his mountain bike. He be- After spending time in the Colorado Rockies es- tablishing the values and the two launched New Belgium Brewing (NBB), with Kim mix is promotion. From the beginning, the Jordan as marketing director. The company's first beer was its brand on its core values, including practicing environ- named Fat Tire in honor of Lebesch's Belgian mountain bik- mental stewardship and ing trek. Fat Tire remains o NBB has come far from its humble basement origins. brand is absolutely everything we are. It's the people here. the Fort Collins-based brewery is the fourth-largest It's how we interact with one another. And then there's the craft brewer in the country and eighth-largest brewery in the other piece of that creativity, obviously, which is designing nation, with products available in 45 states, plus the District beers," Kim Jordan said. NBB promotion has attempted to of Columbia and British Columbia. Kim Jordan helms the portray the company's creativity and its harmony with the company as one of the few female CEOS of a large beer firm. "This entrepreneurial thing sneaks up on you," Jordan states. "And even after twenty years, I still have those pinch me' moments where I think, wow, this is what we've created here together." While total beer sales remain flat, the craft beer has also heavily promoted its brand through Facebook and industry now maintains a 12 percent market share. Creating such success required a corporate culture that stressed creativity and an authentic stakeholders with respect. While the New Belgium prod- uct is a quality craft beer, just as important to the company sustainability. Sustainability has been a core value at NBB is how environment. Each variable of the marketing mix was care- directions of their new company. company forming a participative environment in which all employees can exert their creativity. "For me s one far of NBB's most popular ales. natural environment. For instance, one NBB video features a tinkerer repairing a bicycle and riding down the road, while another features NBB "rangers" singing a hip-hop number to promote the company's Ranger IPA ale. The company Twitter. This "indie" charm has served to position NBB as a company committed to having fun and being a socially E аpproach treating all responsible firm. NBB also markets itself as a company committed to treats its 685 employees, the community, and the from day one. The company was the first fully wind-pow- ered brewery in the United States. NBB recycles cardboard boxes, keg caps, office materials, and amber glass. The fully considered. The company spends a significant amount of time researching and creating its beers, even collaborating brewery stores spent barley and hop grains in an on-premise silo and invites local farmers to pick up the grains, free of with other craft brewers to co-create new products. This col- laboration has led to products such as Ranger IPA and Biere charge, to feed their pigs. The company also provides em- de Garde. NBB's culture is focused on making a quality ployees with a cruiser bicycle after one year of employment product and satisfying customers. It organic beer with its creation of Mothership Wit Organic Wheat Beer. The company has several product line varieties, with a brewery in Asheville, North Carolina, that began brew- including its more popular beers Fat Tire, 1554, Shift, and ing in 2016. The combination of a unique brand image, strong Sunshine Wheat; seasonal beers such as Pumpkick, Accu- marketing mix, and an orientation that considers all stake- mulation, and Tour de Fall; and its Lips of Faith line, a series holders has turned NBB into a multimillion-dollar success." of experimental beers produced in smaller batches, includ- ing La Folie and Chocolate Stout. The distribution variable of the marketing mix was com- plex at the outset. In her initial role as marketing director, Jordan needed to convince distributors to carry their prod- 2. What has Kim Jordan done to create success at ucts. Often, new companies must work hard to convince distributors to carry their brands because distributors are fearful has so they can bike to work instead of drive. NBB's popularity allowed it to expand on the East Coast s even ventured into Questions for Discussion 1. How has New Belgium implemented the marketing concept? New Belgium? 3. How does New Belgium's focus on sustainability as a core value contribute to its corporate culture and success? of alienating more established rivals. However, Jordan tirelessly got NBB beer onto store shelves, even

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