Page 323 - Foundations of Marketing

290 Part 4 | Product and Price Decisions

one-time-only brews—such as LaFolie, a wood-aged beer— With the brand thus defined, New Belgium went
that are sold only until the batch runs out. in search of ways to market its new brand identity. For
To reinforce the firm’s commitment to old-fashioned instance, NBB teamed up with Amalgamated, a New York
brewing quality, NBB’s packaging and labels evoke a touch City advertising agency, to help communicate the brand
of nostalgia. The Fat Tire label, for example, features an identity. The agency created a $ 10 million ad campaign
old-style cruiser bike with wide tires, a padded seat, and a targeting high-end beer drinkers among men ages 25 to 44 .
basket hanging from the handlebars. The label and packag- The grainy ads focused on a man rebuilding a cruiser bike
ing designs were created by the same watercolor artist, Jeff out of used parts and then riding it along pastoral country
Lebesch’s next-door neighbor. roads. The product appeared in just five seconds of each
NBB prices its beers to reflect high quality and set the ad between the tag lines “Follow Your Folly … Ours Is
products apart from those of more widely available brands Beer.” The company later modified its ad to coincide with
such as Coors and Budweiser. This pricing strategy conveys the the U.S. Pro Challenge.
message that the products are special but also keeps them com- One of New Belgium’s whimsical advertising cam-
petitive with other microbrews, such as Pete’s Wicked Ale and paigns was its promotion of its new brand, Ranger IPA ale.
Sierra Nevada. To demonstrate its appreciation for its retailers During the campaign, the NBB sales force was sent out in
and business partners, NBB does not sell beer to consumers on- tan-and-olive “ranger” uniforms riding bicycles instead of
site at the brewhouse for less than the retailers charge. horses. NBB took out traditional advertisements in Wired and
Since its founding, NBB’s most effective promotion Rolling Stone . It also launched a microsite for promotional
has been via word-of-mouth communication by customers purposes. The microsite featured a video of a hip-hop num-
devoted to the brand. The company initially avoided mass ber performed by the NBB rangers to promote the new beer.
advertising, relying instead on small-scale, local promotions, The ad helped position the growing brand as hip and whim-
such as print advertisements in alternative magazines, partici- sical. In addition to advertising, the company promotes its
pation in local festivals, and sponsorship of alternative sports brand by sponsoring bicycle tours and engaging customers
events. Through event sponsorships, such as the Tour de Fat, and employees in online conversations via social media such
NBB has raised thousands of dollars for various environmen- as Facebook and blogs.
tal, social, and cycling nonprofit organizations. The company NBB’s mission is: “To operate a profitable brewery which
is also a member of 1 Percent for the Planet, donating 1 per- makes our love and talent manifest.” From top-quality brew-
cent of its annual sales revenue to environmental-protection ing to a strong belief in giving back to the community, the
groups around the world.With expanding distribution, how- company reinforces the positive qualities that make its brand
54
ever, the brewery recognized a need to connect more effec- so successful every day.
tively with a far-flung customer base. NBB’s top management
consulted with Dr. David Holt, an Oxford professor and Questions for Discussion
branding expert. After studying the fast-growing company, 1. What has New Belgium Brewing done to increase brand
Holt, together with NBB’s marketing director, drafted a recognition and brand preference?
70 -page “manifesto” describing the brand’s attributes, charac- 2. How is New Belgium Brewing using packaging to
ter, cultural relevancy, and promise. In particular, Holt identi- support its brand image?
fied an ethos of pursuing creative activities simply for the joy of 3. Assess New Belgium’s brand equity in terms of
doing them well and in harmony with the natural environment. awareness, quality, associations, and loyalty.

NOTES

1 Nicholas Kusnetz, “MillerCoors Took Taste Out Packaging Digest , November 1, 2009, www 2 Nancy Trejos, “Hotel Programs Target
of the Equation and Made Cold Unique,” Fast .packagingdigest.com/article/367410- Teenagers,” USA Today , July 23, 2012, 1B.
Company , September 12, 2012, www.fastcompany Thermochromic_ink.php (accessed October 11, 3 “Company Profile,” Starbucks , February 2010,
.com/3000877/ millercoors-took-taste- 2012); “MillerCoors Unveils New Cold- www.starbucks.com/about-us/company-information
out-equation-and-made-cold-unique (accessed Can Technology,” Denver Business Journal , (accessed April 14, 2011).
October 11, 2012); MillersCoors website, May 2, 2011, www.bizjournals.com/denver/ 4 David Lidsky, “50 Most Innovative Companies:
www.millercoors.com/Our-Beers/Innovation news/2011/05/02/millercoors-unveils-new-cold- Bug Agentes Biológicos,” Fast Company , March
.aspx ; Packaging Digest, “Thermochromic Ink,” can.html (accessed October 16, 2012). 2012, 122.

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