Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 14

New Belgium Brews Customer Satisfaction
More and more people recognize the name New Belgium Brewing, and even more are familiar with the brewery's signature product, Fat Tire beer. New Belgium co-founder Jeff Lebesch first began brewing beer with a roommate in his basement. Although the first attempts failed, he and his thenwife Kim Jordon continued basement brewing, eventually creating the now famous Fat Tire-named after the tires Lebesch used to mountain bike through European villages famous for beer. The basement brewery officially went commercial in 1991, selling first to friends, family, and neighbors. A quality product, concern for employees, and commitment to environmental stewardship have led to fast sales growth, making New Belgium the third largest craft brewer in the United States behind Boston Beer and Sierra Nevada. It is also the seventh largest brewery in the nation.
For Lebesch and Jordon, the basement brewery turned out to be a blessing. Jordon became the brewery's first bottler, sales representative, distributor, marketer, and financial planner. (Today, she is the CEO.) Jordan would often deliver products in her Toyota to different stores until the company could afford a better mode of distribution. Her tireless efforts, combined with the low overhead, allowed Lebesch the freedom to experiment with creative beer formulas and innovative techniques without worry about investor expectations or paying off large bank loans. New Belgium's customers are drawn to the company's care over naming, labeling, and producing its beer as much as they are by all that the brewery represents. New Belgium is constantly coming up with new products and even forms partnerships with other craft breweries to help with idea generation. A collaboration with Cigar City Brewing resulted in the release of a new, special-edition ale for its Florida market brewed with Anaheim and Marash chiles.
From the beginning, NBB has been concerned with the brewery's impact on the environment and has made every effort to minimize that impact. When the firm grew beyond the basement and created what is today's New Belgium Brewing, the organization continued to put this concern at the forefront of all business operations. Today, the company is dedicated to balancing profitability with social and environmental responsibility-something its loyal consumers appreciate. The company has used 100 percent wind-powered electricity since 1999, using suntubes, light shelves, and evaporative coolers to reduce energy consumption. New Belgium is now using aluminum cans for some of its Fat Tire beer. Not only are aluminum cans more convenient for customers because they can be taken to places glass cannot, like baseball parks and other outdoor venues, they are more environmentally friendly as well.
Although many in the business world believe that to aid the environment is to destroy business and to earn a profit is to destroy the environment, New Belgium is an example of how a business can truly succeed financially while maintaining a dedication to the environment. The company's environmental practices have become synonymous with its brand, distinguishing it from other specialty beer on the market and creating customer loyalty through shared commitment.
NBB also connects with its fans through Facebook. By using social media, NBB can interact with its fans and understand their desires-an important component of the marketing process. Additionally, social media allows NBB to understand the value of their most loyal customers. In one study, NBB was able to determine that those who "liked" New Belgium on Facebook account for approximately half of the firm's annual sales. By understanding customer value, NBB can tailor marketing messages and create more customized products to attract a wider target market.
New Belgium began with innovation and a dedication to the environment and has stayed true to these elements throughout. The company has continued to grow, so much so that New Belgium has opened an East Coast brewery in Asheville, North Carolina. As the company grows, it focuses on the balance among producing a great product, profit, and environmental stewardship. Ever dedicated to bringing great, unique, and creative beer to its customers, today New Belgium is also striving to reduce its carbon footprint as well as connect with customers in new and innovative ways. Customers remain as loyal to New Belgium as it is to its roots. 30
Who do you think is New Belgium's target market?