New Belgium Brewing Business Strategy

Case Study 1 

Cruising to Success: The Tale of New Belgium Brewing 

Background:

The company, New Belgium Brewing, all started with a mountain biking trip in Belgium. Where waffles aren’t the only thing that made its way to America. Jeff Lebesch spent time in Belgium riding throughout the country on his bike. During his time there, he was introduced to their unique style of ales. Jeff believed he could start a business, manufacturing Belgian ale in America; so that is exactly what he did. From his own basement and with the help of Kim Jordan, they were able craft a high-quality ale, Flat Tire. This was in honor of Jeff’s Belgian mountain biking adventure. The New Belgium Brewing Company has grown and expanded to over 37 states. Flat Tire remains as one of the America’s most popular domestic beers since the 1990’s. 

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            Jeff and Kim both took their time to research and create a variety of quality beers. They wanted a product that would be enjoyable to their targeted market. With much success, they were able to dominate over their rivals and create a competitive advantage by introducing something unique. The popularity of the New Belgium Brewing Company has prompted other companies to develop new ales in order to compete with the up and coming Flat Tire.  They have turned their brand into a multimillion-dollar success. This company would not be where it is at today without the help of Kim Jordan. She created an effective marketing plan while maintaining the company’s core values and sustainability. 

Marketing concept:

The marketing concept, according to the book, is a philosophy that an organization should try to satisfy customers’ needs through a set of activities that will allow the organization to achieve its goals. New Belgium Brewing Company (NBB) has done an excellent job creating a brand that is easy to continue to develop along with appealing to their targeted market. They have carefully taken their time on each variable of the marketing mix by researching and creating new beers. New Belgium marketing is shown through all aspects of the company because it is well-established. They focus their effort on good high-quality beer that essentially sells itself. They wanted to make sure that their promotion of their craft beers was effective by convincing distributors to carry their brand. They established a pricing strategy by pricing their brand higher than any other domestic beer companies to have a higher profit margin, which has created more competition with rivals. They let their company’s characteristics and actions speak for what kind of company New Belgium Brewing is. They heavily promote their brand through Facebook and Twitter. New Belgium Brewing Company successful marketing and unique brand image has helped them gain popularity and has allowed the company to expand.  

Kim Jordan success at New Belgium:

Kim Jordan is a remarkable woman. She has created a new way of thinking when it comes to beer. When Kim and Jeff Lebesch started the company, Kim became the marketing director and CEO. She was one of the few female CEOs on the beer industry. She co-created this company from the bottom up. With her marketing skills, she was able to promote a unique brand that has both quality and great presentation that tends to stand out. She had increased the profits by providing more value and charging a high price for their products. The company continues to grow, as it is third largest craft brewers in the country. Kim Jordan understood that the company had to do well financially to be able to use profits to help and learn about the environment. Jordan’s vision for the company’s culture was to value their employees, customers, environment, and community. She formed a successful business by crafting a good product, putting it on shelves, and creating a unique brand. Even though the craft beer is highly priced, she made sure it would satisfy customers.   

Sustainability as a core value:

Kim Jordan and Jeff Lebesch have made sustainability a top priority since the beginning. They strive to be a green company, which is rare for a brewing company. They have done so much to contribute by practicing wind power, recycling, and donating excess wheat to farmers. While the company may have started out small, for it has taken time to promote and distribute their beer, they have never forgotten their core values. They let their employees participate actively within the company to share creativity and allowing ownership. The company provides employees with a cruiser bicycle after a year of employment, so they can bike to work instead of driving. New Belgium Brewing values their people and the environment before profit. The company is actively involved with their employees, community, and overall environment.  

Conclusion:

Without Jeff Lebesch and Kim Jordan, we wouldn’t have such an amazing variety of Belgium ales to drink. They have implemented an exceptional marketing concept to help their company grow. Kim Jordan had the right idea by promoting a unique brand with great presentation. She was a major part in the company’s success. Without her marketing strategy, the products would not be as well-known or marketed. The company has also kept with their core values, especially sustainability. They created ways to give more to their employees, communities, and environment. The overall company is still striving in the brewing industry. 

The New Belgium Brewing had done an excellent job in promoting their product. They have remained as one of the top brewing companies in America. They have done exactly what they needed to do to promote and market their ales. Through their exceptional marketing strategies, they have continued to develop and grow. 

Resources:

• “Chapter 1.” Foundations of Marketing, by William M. Pride and O. C. Ferrell, 7th ed., Cengage Learning, 2017, pp. 21–22. 
• “Craft Beer | Independent | New Belgium Brewing.” Craft Beer from New Belgium Brewing, www.newbelgium.com/. 
• Dahl, Darren. “How New Belgium Brewing Has Found Sustainable Success.” Forbes, Forbes Magazine, 28 Jan. 2016, www.forbes.com/sites/darrendahl/2016/01/27/how-new-belgium-brewing-has-found-sustainable-success/#40873b3386a6.