Page 57 - Foundations of Marketing

24 Part 1 | Strategic Marketing and Its Environment

(NBB), with Kim Jordan as marketing director. The com- rivals to develop competitive products such as MillerCoors’
pany’s first beer was named Fat Tire in honor of Lebesch’s Blue Moon Belgian White.
Belgian mountain biking trek. Fat Tire remains one of NBB’s Perhaps the most notable dimension of NBB’s marketing
most popular ales. mix is promotion. From the beginning the company based
NBB has come far from its humble basement origins. its brand on its core values, including practicing environ-
Today, the Fort Collins–based brewery is the third-largest mental stewardship and forming a participative environment
craft brewer in the country with products available in 30 in which all employees can exert their creativity. “For me
states. Kim Jordan helms the company as one of the few brand is absolutely everything we are. It’s the people here.
female CEOs of a large beer firm. “This entrepreneurial It’s how we interact with one another. And then there’s the
thing sneaks up on you,” Jordan states. “And even after 20 other piece of that creativity, obviously, which is designing
years, I still have those pinch me moments where I think, beers,” Kim Jordan said. NBB promotion has attempted to
wow, this is what we’ve created here together.” While total portray the company’s creativity and its harmony with the
beer sales are dropping in the United States, sales in the craft natural environment. For instance, one NBB video features a
beer industry have increased to $ 8.7 billion. NBB has a sales tinkerer repairing a bicycle and riding down the road, while
growth rate of 15 percent. another features NBB “rangers” singing a hip-hop number
Creating such success required a corporate culture that to promote the company’s Ranger IPA ale. The company
stressed creativity and an authentic approach to treating all has also heavily promoted its brand through Facebook and
stakeholders with respect. While the New Belgium product Twitter. This “indie” charm has served to position NBB as
is a quality craft beer, just as important to the company is a company committed to having fun and being a socially
how it treats employees, the community, and the environ- responsible company.
ment. Each element of the marketing mix was carefully NBB also markets itself as a company committed to sus-
considered. The company spends a significant amount of tainability. Sustainability has been a core value at NBB from
time researching and creating its beers, even collaborat- day one. The company was the first fully wind-powered
ing with Seattle-based Elysian Brewing to co-create new brewery in the United States. NBB recycles cardboard boxes,
products. This collaBEERation has led to products such as keg caps, office materials, and amber glass. The brewery
Ranger IPA and Kick. NBB’s culture is focused on making stores spent barley and hop grains in an on-premise silo and
a quality product and satisfying customers. It has even ven- invites local farmers to pick up the grains, free of charge, to
tured into organic beer with its creation of Mothership Wit feed their pigs. The company also provides employees with
Organic Wheat Beer. The company has several product line a cruiser bicycle after one year of employment so they can
varieties, including its more popular beers Fat Tire, 1554, bike to work instead of drive.
and Sunshine Wheat; seasonal beers such as Dig and Snow NBB’s popularity is allowing it to expand on the East
Day; and its Lips of Faith line, a series of experimental beers Coast with plans to continue expanding throughout the
including La Folie and Prickly Passion produced in smaller United States. The combination of a unique brand image,
batches. strong marketing mix, and an orientation that considers all
The distribution element of the product mix was com- stakeholders has turned NBB into a multi-million-dollar
34
plex at the outset. In her initial role as marketing director, success.
Jordan needed to convince distributors to carry their prod-
ucts. Often, new companies must work hard to convince Questions for Discussion
distributors to carry their brands as distributors are fearful 1. How has New Belgium implemented the marketing
of alienating more established rivals. However, Jordan tire- concept?
lessly got NBB beer onto store shelves, even delivering beer 2. What has Kim Jordan done to create success at New
in her Toyota station wagon. As a craft brewer, NBB uses a Belgium?
premium pricing strategy. Its products are priced higher than 3. How does New Belgium’s focus on sustainability as
domestic brands such as Coors or Budweiser and have higher a core value contribute to its corporate culture and
profit margins. The popularity of NBB beers has prompted success?

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