E R I C P A L M E R

T I M P O E

A D E L A R I N Y E M I - S O F U M A D E

T A M E K A B R O W N

F I O N L A U

A N D R E W H A L L O R A N

COMPANY OVERVIEW

• Jeff and Kim Lebasch started New Belgium Brewing in their Colorado basement in 1991.

• Marketing efforts spanned from grass roots to traditional media (TV ads) competing against A-B, Miller and Coors in some regions.

• Best-selling brand is Fat Tire

• Today, NBB is the 3rd largest craft brewer in the US behind Sam Adams and Sierra Nevada.

~700K barrels in 2011

SITUATION ANALYSIS

• NBB initial growth was through grass roots efforts• Station wagon• Rangers/bar-stool to bar-stool

• Current customer base is very loyal to the brand and regional

• Desired growth and expansion into new regions created the need for new marketing campaigns without diluting the brand and alienating current customers

• NBB needs to overcome barriers in order to grow the brand• Marketing Disadvantage: Regional loyalty/customers beyond

neighboring states are unaware of NBB brands

PROBLEM STATEMENT

How can NBB expand their market share while not alienating their current customer base?

• As distribution grows into new regions, the marketing strategy has to effectively reach the increasing far-flung consumer base and resonate the brand’s image of sustainability, whimsical and fun.

SWOT ANALYSIS

High Quality ProductBrand Loyalty w/Customer BaseEmployee Dedication to Core ValuesWell Trained StaffEnvironmentally-Friendly PracticesSocial Media presence & followingNon-traditional marketing successClear Mission and Objectives

Strengths Weaknesses

Opportunities Threats

New ProductsUS & Global Market ExpansionExpansion in Sustainable communityGrowth of Craft Beer MarketNew target customers

Increased CompetitionLarge beer brewers (A-B, Miller, Coors)Other craft beer brewers

Attempt to please every segment: Compromised Core ValuesAlienated core customers

Capacity/Excessive Growth

Employee involvement in decisionsBrand may be too “artistic”Growth through grass rootsFear of losing current customersAbility to quickly produce Traditional Media Spots

MARKETING ALTERNATIVES CONSIDERED

Marketing Alternatives Description Advantage

Green Market Partnership Partner w/other sustainable companies

Distributor and customers are like-minded (39% of consumers are loyal to green businesses)

Local/Grass Roots Utilize rangers & event sponsorship in new regions

Well trained staff already on the ground, previous success

Traditional Media Advertise on TV, print and radio

Instant access to new and large population of customers

Social Media Grow presence on Twitter, Instagram & FB (continue with fun, interactive sites like followyourfolly.com)

Can maintain core values, tell story and reach younger audience

Local Restaurant Build local restaurant breweries in major markets

Appeal to core customer base, supports grass roots, could promote brand awareness as a destination for new customers

DECISION CRITERIA

Evaluation Criteria Weight Description

Increased Brand Awareness

30% Make brand recognizable to consumers in non-local regions. Improve position from just another craft beer brand to a well recognized craft beer brand.

Cost to Implement 20% Cost of the alternative has to align with available budget

Maintain Core Values/Brand Image

20% NBB is very careful to maintain their core values and brand image among its customers base and believe it is what made them successful.

Time to Implement 10% How quickly can the alternative be implemented

Difficulty to Implement 10% Do we have the internal processes, resources and experience or access to the right consultant to implement easily?

Achieves long-term growth 10% Consideration that the investment in the alternative has long term growth implications

RATING SYSTEM

Criteria 5 3 1

Increased Brand Awareness

Able to reach millions at once.

ModerateImpact

Very limited reach

Cost to Implement Low Cost Medium Cost High Cost

Maintain Core Values/Brand Image

Minimal risk to Brand Image

Moderate Risk to brand image

Serious Risk to Brand Image

Time to Implement < 1month 6 months > 1 year

Difficulty to Implement Easy Moderate Difficult

Achieves long-term growth

Promotes Long Term Sustained

Growth

Yields moderate growth returns

Short-term Market

opportunity

DECISION ANALYSIS MATRIX

Criteria Weight

Marketing Alternatives

Green Market

Partnership

Social Media

Traditional Media

Local/Grass Roots

Local Restaurant

Increased Brand Awareness

30% 2 5 5 3 1

Cost to Implement

20% 4 4 1 5 1

Maintain Core Values/Brand Image

20% 4 4 3 5 5

Time to Implement

10% 2 5 3 5 1

Difficulty to Implement

10% 3 5 2 5 1

Achieves long-term growth

10% 4 4 2 4 2

Total Score 3.1 4.5 3.0 4.3 1.9

RECOMMENDATION

Social media is the recommended alternative to continue due to the low cost and ease to implement.

• However, the grass roots alternative is a strategic effort that should be continued in key markets and locations.