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1. Rather than use focus groups to test its branding and messaging, New Belgium
used insiders in the bike community and brewery friends who had a personal
history and knowledge of the brand. Evaluate this decision. Should New Belgium
have used the more traditional approach to ensure the widest possible input to its
marketing strategy? Absolutely yes. The brand is relatively new as compared to others in the market. The share of the craft segment is just around 4%. NBB needed to establish the brand quickly in a highly competitive market. Since it had begun investing in building a brand manifesto and national mass media advertising (TV), ideally the commercials should have been tested in a focus group to make appropriate tweaks if necessary and to establish the close connect between the brand’s core values and the creative execution; rather than leaving it to the opinions of a few local employees, the marketing department and its agency.
2. NBB seemed to agonize over the use of the word ‘‘folly’’ in its advertising campaign.
What do you make of the company’s struggle with this decision? Also, how
do you personally feel about their use of the word? The word folly has many connotations. The dictionary meaning is ‘lack of good sense; foolishness’. The use of the word folly, in the tagline was hotly debated by the NBB employees (Ferrell and Hartline, “Marketing Strategy”). Since it has negative connotations, the company had to obviously debate on brand reputation and culture authenticity. The tagline ‘Follow your folly’, helped give new meaning and interpretation to the word ‘folly’. It evokes feelings of ‘going back home’, rustic settings and adds a new dimension to banal urban existence. It also shows creation of something new (product) and a combination of product, people and principles (Biro, “Great Food, Great Beer, Great Leadership”).
3. New Belgium’s focus on sustainability, whimsy, and fun is clearly rooted in its
Colorado-based culture and the ethos of its founders and employees. As New
Belgium’s distribution continues to expand away from that locale, how can the
company make its branding and messaging resonate with consumers in different
parts of the country? NBB’s marketing strategy and messaging is geared towards a local theme (Colorado). The brand will face challenges as it expands to new markets. The launch with ‘Tinkerer’ may not resonate with diverse set of consumers in all cities (and countries, in future). Though the brand positioning helps drive nostalgic feelings and a sense of town and country, it will need to be further refined, by identifying core brand themes that will resonate across the brand’s key markets. Common themes around which consumers can be engaged include sustainability, environment and so on. Social media engagement becomes critical and it can be used to gauge consumer preferences and emotions, using right triggers. Follow your Folly can be used to further define how environmentalists are helping preserve the environment, with awards.
4. The case mentions how the branding and communication strategy of Boston Brewing Company (makers of Sam Adams) shifted as the company grew. The positioning for Sam Adams changed from a folksy tone to one that looked to position Sam Adams in relation to Budweiser, Miller, and Coors. Does New Belgium face this same risk, or will the company be able to maintain its whimsical and personal touch with consumers? Explain. Although the craft segment is growing fast, brands need to make a choice between a niche, high growth segment versus gaining rapid market share and revenue. Sam Adams obviously has diffused its positioning, to attract new customers from the major brands. NBB faces the same risk and a tough decision.
Bibliography
Biro, James. “Great Food, Great Beer, Great Leadership (Part 2)”. 2013. Web. 11 April 2016.
Ferrell, O.C. and Hartline, Michael. Marketing Strategy. Mason, OH: Cengage, 2011. Print.
