Problem Identification
Before I highlight the main challenges facing New Belgium Brewing, I would like to elaborate on the progress the company has made since its founding in 1991. Its initial businesses were performed in the founder’s basement. However, the company managed to shift from the basement four years later into a larger facility. Today, the company has three built breweries in the U.S. Nevertheless, despite the progress made to maintain sustainability, New Belgium Brewing fell short of its own assertions. The entity has continuously publicized itself as a wind-powered company. However, the information is misleading since they still rely on electricity and gas. The dishonesty has left the company with a bad reputation. New Belgium accepted its fault and decided to start publishing its sustainability reports. Although the move is great, I believe that the initial mistake will still impact the attitudes of their clients. Regaining customer loyalty may require more effort than simply admitting to the mistake.
Situation Analysis
Current Strategy, Performance, and Objectives
The mission of New Belgium Brewing is to express love and talent through the creation of favorite brands for clients and provide a business that sustains the “good.” The brand was founded by a professional engineer whose aim was to prepare homemade craft beer. He developed a branding strategy where he would spend time with friends, practice his creativity and enjoy the small things in life. His strategy aimed to cultivate a world-class beer that would be enjoyed while sharing happiness with friends. In this case, I liked how the owner understood the impact of this strategy and used it to develop the organization’s brand manifesto.
Customer Analysis
The company’s products target high-class free-spirited folks whose aim in life is to enjoy every moment they have. It aims to reach out to people with a passion for social events and have the desire to enjoy and be free. The company puts much effort into developing beer and a sustainable environment that matches the needs of its clients (McCorry, 2011). I believe their strategy perfectly enables them to connect with their clients.
Competition
The company faces stiff competition from other entities that prepare craft beer, including Craft Beer Alliance and Sierra Nevada (Reid & Gatrell, 2015). The entities also embrace sustainability in order to remain socially responsible. However, New Belgium Brewing has a unique culture that differentiates it from its competitors.
Socio-cultural Trend
I believe New Belgium Brewing has strong values that enable it to maintain sustainability (Walker, Kent & Laporte, Taylor, 2017). They are also socially present since they share their achievements on social media (Evans, Bratton, & McKee, 2021). However, the false information that they were 100% wind-powered negatively impacted their reputation. They have fixed the problem by admitting to the mistake and providing their periodic sustainability reports.
Alternative Strategies
The first alternative entails maintaining transparency with its clients. The company should only produce and share accurate data in the sustainability reports. This will ensure that the mistake does not occur again. The company should also use its social media presence to demonstrate the progress it has made in relation to environmental protection. The advantage of the alternative is that the company becomes more accountable for its actions and becomes more sustainable. The disadvantage is that it will require more resources. The second alternative is that the company should create social responsibility events to restore customer trust. The alternative would enable it to reconnect with the community. However, it will also require more resources.
Recommendations
I would recommend the company organize social responsibility events and support different environmental courses during the events. This will enable them to show their commitment to sustainability.
References
Evans, D., Bratton, S., & McKee, J. (2021). Social media marketing. AG Printing & Publishing.
McCorry, K. J. (2011). New Belgium Brewery. A Simple Path to Sustainability, 137.
Reid, N., & Gatrell, J. D. (2015). Brewing growth. Economic Development Journal, 14(4), 5.
Walker, Kent Dr. and Laporte, Taylor. (2017). New Belgium Brewing Company and b corporation certification. Ivey Business Publishing. https://scholar.uwindsor.ca/odettepub/106
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