New Belgium Case Analysis
Introduction
The New Belgium Brewing Company is one of the top three craft beer breweries in the nation. It has experienced solid growth from its original entry as a niche marketer to a brand that is now distributed across the country. Much of New Belgium’s success is a result of a well-developed positioning strategy that promotes the company’s culture as much as its product. Not coincidentally, New Belgium’s target market chooses brands like Fat Tire because of both the company’s culture and its product. Our evaluation of the two New Belgium cases indicates that the craft beer industry remains an attractive investment for the company, particularly because of its specific capabilities and resources. The cases also suggest that a conservative growth outlook has the greatest probability of maintaining an acceptable level of profitability without sacrificing the company’s mission and core values. Finally, New Belgium’s positioning, particularly as it’s exemplified by the Fat Tire campaign, is a sustainable one for both current and future brands, though deliberate adaptations will be necessary as New Belgium expands into new markets
SWOT Analysis Strengths (New Belgium) | Weaknesses (New Belgium) | High-quality beer, award-winning beers | Association with a single line of beer- Fat Tire | 7th Largest brewery in the nation, 3rd largest craft brewery | Increased pressure on maintaining company culture as a result of company growth | Strong growth with est. sales of over $100B and sales of over 700K barrels of beer | Continued reliance on natural gas and fossil fuels- non-renewable resources | $10M advertising budget for Fat Tire campaign | No follow-up of successful Fat-Tire ad campaign | Collaboration with Elysian Brewing Company | Increasing distribution distances | Customer Loyalty | Competition from craft brewers and craft beers from traditional brewers | Effective word-of-mouth advertising | Smaller advertising budget ($10M) than competition (Sam
The New Belgium Brewing Company is one of the top three craft beer breweries in the nation. It has experienced solid growth from its original entry as a niche marketer to a brand that is now distributed across the country. Much of New Belgium’s success is a result of a well-developed positioning strategy that promotes the company’s culture as much as its product. Not coincidentally, New Belgium’s target market chooses brands like Fat Tire because of both the company’s culture and its product. Our evaluation of the two New Belgium cases indicates that the craft beer industry remains an attractive investment for the company, particularly because of its specific capabilities and resources. The cases also suggest that a conservative growth outlook has the greatest probability of maintaining an acceptable level of profitability without sacrificing the company’s mission and core values. Finally, New Belgium’s positioning, particularly as it’s exemplified by the Fat Tire campaign, is a sustainable one for both current and future brands, though deliberate adaptations will be necessary as New Belgium expands into new markets
SWOT Analysis Strengths (New Belgium) | Weaknesses (New Belgium) | High-quality beer, award-winning beers | Association with a single line of beer- Fat Tire | 7th Largest brewery in the nation, 3rd largest craft brewery | Increased pressure on maintaining company culture as a result of company growth | Strong growth with est. sales of over $100B and sales of over 700K barrels of beer | Continued reliance on natural gas and fossil fuels- non-renewable resources | $10M advertising budget for Fat Tire campaign | No follow-up of successful Fat-Tire ad campaign | Collaboration with Elysian Brewing Company | Increasing distribution distances | Customer Loyalty | Competition from craft brewers and craft beers from traditional brewers | Effective word-of-mouth advertising | Smaller advertising budget ($10M) than competition (Sam
References: Clancy, K. (2001). Whatever happened to positioning: Recent Copernicus study confirms the dissappearance of positioning. Copernicus. Clark, C., & Rogler, J. (2013, March 8). Personal Interview. (M. Holcomb, Interviewer) Holt, D., & Cameron, D. (2010). Cultural Strategy: Using Innovative Ideologies to Build Breakthrough Brands. New York: Oxford University Press. Limacher, R. (2012, May 25). Framework of the week - 81 -innovation ambition matrix. Retrieved March 20, 2013, from strategyhub.net: http://www.strategyhub.net/2012/05/framework-of-week-81-innovation.html