New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsi

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New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing From its roots in a Fort Collins, Colorado, basement, New Belgium Brewing has always aimed for business goals loftier than profitability. The company's tremendous growth to become the nation's third-largest craft brewery and ninth-largest overall has been guided by a steadfast branding strategy based on customer intimacy, social responsibility, and whimsy. The company's products, especially Fat Tire Amber Ale, have always appealed to beer connoisseurs who appreciate New Belgium's focus on sustainability as much as the company's world-class brews. Despite its growth and success, New Belgium has managed to stay true to its core values and brand authenticity-the keys to its m advantage in the highly competitive craft brewing industry Synopsis: Themes: Customer intimacy, competitive advantage, social responsibility, sustainability, branding strategy, product strategy, distribution strategy, marketing implementation, customer relationships arge corporations and well-known brand names come to mind when most of us think about successful businesses. However, the success of small- and medium- sized businesses can be just as noteworthy, while often having a greater impact on local communities and neighborhoods. One such business is the New Belgium Brewing Company, Inc., based in Fort Collins, Colorado. The New Belgium brand has become known for two things: its high-quality, Belgian-style beers and its commitment toward sustainability. Its socially responsible initiatives have contributed greatly to New Belgium's success. In fact, New Belgium's business model has been so successful that it is s around the c the company stands for. Studies have shown that the stock prices of ethically and socially responsible companies as a whole outperform those on the S&P; 500 index. Although 8 BP.pdf e Case 6 Mattel.pdf ^ | Case 4 New Belgiu pdf ^ | g Case 3 Monsanto.pd Course 5 Marketing.. Case 4,pdf - Google C... Provide A Discussion ., a wl oa F4 FS

Explanation / Answer

1.Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not?

New Belgium’s focus on social responsibility does provide a key competitive advantage for the company. Social responsibility can be split into four categories: Economic, Legal, Ethical, and Voluntary. New Belgium mostly lies in the voluntary category. Although they comply with legal and regulatory laws, they feel that they have a duty to set stricter limits and goals themselves. Businesses that fully embrace citizenship in the communities that they serve can forge enduring bonds with customers. Branding and corporate citizenship occurred naturally as the firm’s ethical culture (core values and beliefs) were in place a long time before marketing existed. The brewery has been involved with social causes, cultural causes, environmental and drug and alcohol issues. Being involved with these topics solely came from NBB talking to their employees. Having their opinions heard, and giving them a voice. New Belgium is all about striving toward sustainable growth, and a desire to reach economic goals, while reaching present needs (Ferrell). NBB has been able to increase its brand and operations while actively seeking out better technology and ways to do things that will help keep future generations healthy.

How many companies in the brewery industry do you see trying to commit resources to making the environment that they surround a better place? How many companies do you hear making stricter legal and regulatory laws for them to follow? To my knowledge and to what I have heard or read, none! That statement along has New Belgium standing by themselves. Setting high standards than the rest of the competition will gain notice in the public eyes. It will get them wondering, “If NBB can operate at higher standards, why can’t the beverage I am drinking do the same?”

2.What are the challenges associated with combining the need for growth with the need to maintain customer intimacy and social responsibility? Does NBB risk losing focus on its core beliefs if it grows too quickly? Explain.

The challenges associated with combining the need for growth and the need to maintain customer intimacy and social responsibility deal with providing products or services that deliver the greatest value-addition possible. They need to be able to provide the best overall solution. That solution then needs to be able to solve a broader problem all by itself. Finally, they need to provide products at the lowest cost. This will ensure that their customers will be able to afford the products that are offered. If New Belgium can perform these three tasks while taking the responsibility for the well-being of the societies and environments in which they operate, the company will still be able to generate significant returns.

There is always a risk involved when a company starts growing or continues to grow, but I do not feel that New Belgium will expose themselves to the risk of losing their identity. The main thing that NBB needs to keep in mind when they are expanding is the principles that Jeff and Kim committed to during the hike into the Rocky Mountain National Park. Making sure that they have the right people in place and making the right decisions will be important.   Understanding the environment and the customer base that the expansion is going into will only strengthen their social responsibility. If NBB does not forget about the core principles and still stands up to the challenges to remain on a human scale and to continue to be culturally authentic, it has no worries when it comes to maintaining customer intimacy and social responsibility, let alone is core beliefs.   

3.Some segments of society content that companies that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. Do you believe that New Belgium’s actions and initiatives are indicative of a socially responsible corporation? Why or why not?

I do believe that New Belgium’s actions and initiatives are indicative of a socially responsible corporation. NBB has created a very positive image for their company in the beer-consuming public with smart-decision making. This is actually one of New Belgium’s beliefs. That people can make the choice to drink responsibly and not just do it because they want to get “wasted.” The company is continually reexamining its ethical, social, and environmental responsibilities. They are always trying to brainstorm and one way that they chose to promote responsibility was through the participation in and support of the culinary arts. It frequently hosts New Belgium Beer Dinners, in which every course of the meal is served with a complementary culinary treat. They have received awards (Environmental Protection Agency’s regional Environment Achievement Award) that only motivated them more to continue its social responsibility goals (New Belgium). They plan on creating public dialogue on avoiding alcohol abuse. They have a laundry list of things to do that only continues to grow and every aspect on that list either effects the environment or the communities that their products effect.

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