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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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Internal Strengths

• Strong environmental and ethical values as a company

• Appeals to environmentally green consumers

• Strong core values including customer relationships, sustainability, fun, and whimsy.

• Structure, (Privately held, and employee-owned)

• Known for high quality crafted beer

• Strong customer loyalty

Internal Weaknesses

• Tight/weak marketing strategy, does not use traditional marketing

• Prices are higher

• Market Share

• Limited/narrow messages with a local emphasize.

• Brand awareness

• Limited distribution channels  

• Sustainability in contrast to company growth

• Even though they have multiple products Fat Tire is still their source of revenue.

External Opportunities

• Expand target market

• The potential for growth in domestic and craft beer markets

• Brewery tours, trade shows/brew-festivals (Tour De Fat)  

• The growth in online marketing to connect with the target market

• New locations, and geographic growth

• Social Responsibility and ethics in the eyes of consumers

External Threats

• Extensive competition with already established craft and domestic beer products

• Loss of brand uniqueness due to brands adapting to self-sustainability.

• Unsustainable Niche market

• The growth of local brewery, and microbrews (Easy to replicate similar product/imitate)

• T.V. may lead to erosion of brand identity

Step 2: Assumptions and Missing Information

There is not a lot of information regarding NBB's finances; additional financial information is needed, as well as financial information for NBB's competition, such as Sam Adams and the Sierra Nevada. Also, other demographic information is necessary and essential to determine all demographic areas where NBB is sold, as well competition for better market penetration. Also, NBB marketing budget is assumed to “small” compared to their completion. We can assume that their marketing budget is small based on their previous marketing efforts of one commercial, and primarily relying on WOM marketing. Addition marketing budget is needed for NBB and from their competition if public.

Step 3: Problem/Decision Statement

New Belgium Brewing has done an excellent job building their brand, and products through Colorado and Western United States in geographic terms. New Belgium's problem is that they need to develop a marketing strategy and plan to expand their brand and products to new demographics and expand their market and geographic audience to the eastern U.S and other locations. NBB is also faced with competition; their marketing strategy should help them differentiate themselves, build their brand, and compete more effectively with other craft breweries. NBB main competition includes Sam Adams and the Sierra Nevada. Also, while expanding to additional target markets, geographic, and demographics, NBB needs to keep core values including customer relationships, sustainability, fun, whims, responsibilities to social, society, and the environment.

Step 4: Develop Strategy Alternatives

1. New Belgium brewery could Invest in T.V advertising on national channels for a broad audience reach. Up until this point, NBB has had very limited marketing efforts around traditional marketing, mainly relying on WOM, Social Media, Print, and a couple of Television campaigns. NBB could create a T.V campaign that is on national channels; this gives them the highest reach and largest customer base. This will also create a market share with the larger brands such as Bush, Cools, and Miller.

2. Promote/sell NBB the middle, to upper-class bars and restaurants. Currently, NBB sells in small locations, and stores. The more locations that NBB is in, the consumers they will attract, also, by putting the product into middle and upper-class bars, and eating establishments they will stay true to their target market, and their brand message.

3. NBB could expand product lines and product mix, most of NBB's beers are focused on their brand of a simple, mountain lifestyle. By adding more craft beers or having multiple brand lines, NBB they can reach a new niche personality(S) and the market they currently do not have. New Belgium could use the additional brands to enter into markets such as environmentally green consumers. Or, a product that all consumers can relate to across the U.S

4. Promote Socially and environmentally friendly/self-sustainable. Consumers look for companies and brands that are Socially and environmentally friendly/self-sustainable, NBB can take advantage of this and strengthen their brand message by promoting this to the consumer. Combining marketing efforts, along with team up if environmentally friendly distributors, philanthropy, and community involvement. Create a marketing campaign around their brand message.

Step 5: Evaluation of Alternative & Recommendation

The strategies above are all ways that will help New Belgium Brewery build a more comprehensive target audience and demographics, and create brand awareness, which will help them compete with other craft brewers such as Sam Adams, and the Sierra Nevada. NBB's brand is very localized and specific on who they are trying to reach. By focusing on mass marketing and T. V's NBB will have the opportunity for the highest reach and customer base, however, they may be susceptible to brand erosion. I think that by combining their socially and environmentally friendly/self-sustainable approach in line with new product lines focused on those type of consumers, NBB has the best chance at building their brand personality, while expanding and competing with larger craft companies.

Step 6: Implementation Plans and Issues

I think that New Belgium needs to focus on promoting their selves as a socially and environmentally responsible/self-sustainable brand. They should carry this over into their marketing efforts. I believe that using the TV as a media channel to promote will give them the most significant consumer base; it will hurt their brand that has built up to now. It's crucial that while moving forward in growth to not lose their company value that they have kept and have had since day one. NBB should create a brand and product line around two areas, the first being America, and the second focused on green living. These two products appeal to many consumers; it will expand to additional target markets, and build on what they already have. I think by adding these new product lines, there is also no chance of brand erosion like you would see with TV ads. These brands do not have a limit on their demographics, and locations that NBB can penetrate. NBB could achieve brand penetration of these new product/brands by instead of using TV ads, multiple short clips or videos on social media, where they have already had success. NBB could then start to expand their distribution into the middle to upper-class establishments. Also, these efforts would stay true to their marketing, target markets/demographics, and their company.

Step 7: Evaluation and Control

One New Belgium puts these plans into action; their efforts will be evaluated and measured by overall brand awareness and sale. NBB should be looking at brand awareness, sales, and mentions on social media. I think that they should be looking at these metrics and KPI's on a quarterly basis to see how their efforts are going. If they are continuing to increase they should go back and find ways to keep their success. If they do not see an increase, NBB should look to change, add or implement a new strategy.

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