- Level: International Baccalaureate
- Subject: Business Studies
- Word count: 1386
Discuss whether New Belgian Brewing, is a B2B, B2C company or both?
Extracts from this document...
Introduction
1. Discuss whether New Belgian Brewing, is a B2B, B2C company or both? New Belgium Brewing is a very extensive company. The company is not only business, but consists that all the employees loves their job, have fun while working and produce quality beer. The company focuses on values like having fun every day, charity, good purposes, save the environment etc. The question about if the company works on B2B, B2C or both give a wide assessment. The company sells their products to distributers in 26 different states in the US. Their high-quality beers and good values have made their products very popular - so popular, that NBB each day receives several inquiries about increasing their distribution of products to new locations. The fact, that the company has distributors in 26 different states shows that they are active on the B2B marked. The distributors then distribute the products to the end user through bars and supermarkets etc. This contains their general sale of beer. What makes the assignment complicated to assess are all the arrangements they organize. As described on their web-page under the subject Events -"So, you're doing something good and you want us to join you? Excellent! Tell us about it" - This shows that they arrange events for good causes. ...read more.
Middle
On this market they only operate by selling merchandises and accessories through a web-shop (no beers) and making events and activities with focus on company marketing. Our final conclusion is that the company operates on both markets, as the company does not "only" distribute beer. 2. On the basis of the above answer, discuss and come with recommendations to how the company can make their strategy more Relationship marketing oriented? Before you attend to develop relationship marketing, it's a good idea to divide your customers. A way to do that is to use the ABC-analysis, where New Belgium Brewing can locate their most important customers. The division of their customers will be based after the customer's percentage of total gross margin for the company. By using this method, you divide the customers into 3 groups which are A, B and C customers where A customers represent the most important customers. After the division of ABC customers, you get the picture of a Whale curve for cumulative profitability which usually reveals that 20 % of the customers generate between 150 % and 300 % of total profits. The middle 70 percent break even and the last 10 % of customers loose between 50 to 200 % of total profits. By doing this, NBB can see what customers need to be dealt with, so they can turn the least profitable customers, profitable again. ...read more.
Conclusion
These companies which represents the majority of the distribution, needs to be moved as close to collaborative exchanges as possible to achieve the highest status with the clients and thereby ensure continuous sales. It would be advantageous for NBB to keep their customers in between the two categories value-added exchanges and collaborative exchanges. At this point it is an opportunity for NBB to add a key account manager to the most profitable customers to add extra value in their cooperation. These key account managers can create a variety of advantages for the clients as a reward for their status in NBB. It is the key account managers job to discover areas in their partnership where NBB can add extra value to the clients. These key account managers could e.g. work together with the current rangers working in the different areas, to throw events for the companies concerned. This provides an opportunity to promote the clients in a way as until now has not been possible. 1 http://www.newbelgium.com/events/sponsored-events.aspx 2 Case tekst - New Belgium Brewing B: Developing a Brand Personality, side 2, r�kke 13 3 http://www.newbelgium.com/culture/faq.aspx 4 Business marketing management B2B, Chapter 4, Page 100, figure 4,3 5 Business marketing management, chapter 4, page 102, figure 4,4 6 Business marketing management, chapter 4, page 93, figure 4,1 ?? ?? ?? ?? PBA 1N1 - Gruppe 4 Niels Brock Case 2 - Andreas Ki�r Thomsen Copenhagen Business College Page 1 of 5 22-09-2011 ...read more.
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