New Belgium Brewing Company – Marketing Strategy Resesarch Outline (300 Level Course)
• Problem Statement
o The lack of constant marketing that reinforces the award winning taste of the New Belgium Brewing Company.
• Key drivers of change in the industry
o Customer loyalty.
o The strength of batches of beer made.
o The ability to maintain inventory such as the special yeast and barley.
• Competition Strength Assessment
o Competes in the Craft/Micro brew segment of the beer industry regionally and nationally. Major competition is Guinness, O’Dells, Pete’Wicked Ale, Pyaramid Pale ALy, Flying Dog Ales, and Sierra Nevada.
o Their major competition is the national market. Their lack of national presence is a weakness.
• Key Factors for Competitive Success in the Industry
o Awards from Business Ethics magazine and Better Business Bureau’s Torch Award for their socially responsible business.
o Commitment to the environment, society and personal relationship with consumers.
o Consumers believe in and feel good about this product.
o Loyal beer drinking consumers.
o Their core values and beliefs are to be environmentally concerned and socially responsible brewers.
o The employee loyalty programs are unmatched by any other craft/micro-breweries.
o Their commitment to the environment and social concerns.
o The pricing of a 6-pack of beer is competitive.
• Recommended Strategy and Justification
o 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.
? 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.
? 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
? 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.
? 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.