INTRODUCTION
All big brands across the world are actually shifting into the phenomenon of globalization. A product is no more confined to physical boundaries. Globalisation calls for global marketing strategies being implemented throughout the world to resonate the brand's personal information and its own image to focus on customers. A synonymous marketing strategy is cost-effective and this is the strategy applied by many big companies about the world. However, experts also say that is not always a sensible strategy because consumer behaviour throughout the world ranges from culture to culture and from country to nation. For instance, an American consumer will react and respond in another way when compared with a Nepalese consumer. Thus, while implementing global marketing strategies, a wiser move would be to tweak it, customise it, and connect it with the neighborhood consumer behaviour. In the same way, few international big brands in Nepal have only integrated their global strategies and are not probably exploiting the huge potential they have. One particular circumstance is that of Red Bull in Nepal. Since the entrance of this drink in Nepal, it did sufficiently to endure in the Nepalese market when compared with a few of the other energy drink brands. Red Bull has implemented its global online marketing strategy such as unconventional method without really evaluating its results on the client commitment in Nepal. Thus, the question still remains if the customer commitment is affected by Red Bull in Nepal that uses global unconventional marketing strategies.
Statement of problem
Red Bull's marketing strategy around the world is by using unconventional strategies that require guerilla stunts and buzz generating strategies to communicate with their customers. Guerilla marketing is based on below-the-line (BTL) activities where brand recall is established through occurrences and stunts that are typically related to activities (X-games), parties, trip and music. The sports Red Bull holds are ones that aren't popular in Nepal. Solution one and X-games are not really popular. Likewise, Red Bull will a great deal of promotional events at discotheque to improve its brand. But this isn't suitable in Nepalese situation because we haven't any such kind of place. That's where the problem lays for Red Bull in Nepal. Like all over the place, the strategy is determined by unconventional marketing which is not appropriate and will not relate to the Nepalese culture and traditions. For example, how many people in Nepal would be enthusiastic about free style sports? Hence, if they conduct a athletics event based on free style soccer, still many individuals who are unrelated to these occurrences will not consider becoming a member of there. Also, the thought of X-games that involve moto (motor bike racing), snow skiing (ski big air, skier mix), snowboarding, snowmobile, Inline skating, skateboarding, and car rushing are not enjoyed in Nepal. Thus, any event based on these video games would be absolutely pointless here. We don't have well organised night clubs and discotheques, as already defined. These areas will be the best places where most of Red Bull's special offers and selling would take place round the world. Red Bull also conducts a great deal of its daring events round the world in deserts and mountainous areas. In these contexts, security is the prime issue. One would also claim Red Bull should use above-the-line (ATL) methods of marketing promotions (e. g. tv set, print and radio) to connect to a more substantial audience. The bottomline here's that Red Bull Nepal is not taking into consideration the local culture and consumer tendencies and it is blindly implementing its global marketing strategies to communicate with its customers. That is why the existing research has been done to find out the effectiveness of Red Bull's global unconventional online marketing strategy, for example BTL method, in customer loyalty in Nepal.
Aim and Objectives
Aim
The current research was conducted to discover the potency of Red Bull's global unconventional online marketing strategy (e. g. BTL strategy) in customer devotion in Nepal.
Objectives
To analyse the problem of consumers in energy drink
Do they ingest energy drink?
Are they alert to energy beverages available in marketplaces?
Do they prefer any energy drinks?
To analyse the factors that impact potential marketplace of Red Bull in Nepal.
Do gender, age-groups, marital position and income of consumers have any influence on Red Bull market in Nepal?
Analysis of the Red Bull brand in customer loyalty
What consumers think about Red Bull quality?
Why consumers think Red Bull was unique among drinks?
What consumers think about Red Bull brand?
Will Red Bull consumers keep on purchasing it on future?
Will Red Bull non-consumers consider purchasing it on future?
To analyse the effectiveness of Red Bull's online marketing strategy in customer commitment in Nepal?
Will sampling influence customer devotion?
Will promotion events affect customer devotion?
Any advice in improving customer commitment?
Justification of the study
At the end of this analysis, our research can help understand the effectiveness of Red Bull's global unconventional online marketing strategy (e. g. BTL strategy) in customer commitment in Nepal. In addition, this study will be important to analyse the Red Bull brand in customer commitment.
A detailed statement would be generated regarding consumer behavior, preferences, attitudes, reactions, standards of living, and characteristics which would help us put together an in-depth analysis on our research goals. An exciting potential client of this job would be to determine to what scope Red Bull offers the capability to reach market segments and reach consumers as using unconventional marketing strategies limits their reach and opportunities. Last but not least, the study will generate tips that'll be crucial in Red Bull online marketing strategy in future.
Scope of the study
The study comprises of conducting a study in different parts of Kathmandu concentrating on individuals and communities (principally university or college and college students, superstars and multimedia related individuals) falling into our concentrate on criteria so as to learn the potency of Red Bull's unconventional marketing in Nepal. The research also requires interviews with industry experts to gain their viewpoints and feedback on the problem that was important to comprehend about Red Bull market segments in this country.
CHAPTER-2
LITERATURE REVIEW
Unconventional marketing
In the organization world, the word marketing simply identifies activities completed by organizations or individuals to be able to generate recognition take interest and increase sales. You will discover mainly two ways of make marketing, for example classic and unconventional marketing. The first, conventional marketing, a traditional marketing approach, mainly refers to the use of multimedia or ATL activities for the purpose of promoting the brand. These classic methods include television advertisements, printing advertisements in magazines, magazines, broadcasts on radios, billboards or hoardings and other sources of media. Unlike classic marketing, the unconventional marketing refers to all those types of marketing that want lower budgets and more time, imagination, creativity and a lot of energy somewhat than financial support. Compared to classic marketing that lacks an connections between the company and the finish end user, unconventional strategy is more interactive with customers and gets them really engaged with the activity itself. Examples require public interceptions, arbitrary giveaways or free sampling, and promotion stunt (PR).
Unconventional marketing is synonymously used as guerrilla marketing, buzz marketing, public relation techniques, viral marketing, cultural media, BTL in a variety of literatures. This advertising campaign is principally interactive with consumers who are unexpectedly targeted in sudden places. Therefore, this marketing campaign is targeted at generating buzz and viral marketing with a unique, participating and thought-provoking ideology (Romane Knight, The Best "Guerrilla Marketing" Strategies, http://marketingnotesja. hubpages. com/hub/The-Best-Guerrilla-Marketing-Strategies (Blog), seen on 21 September 2012).
While both forms of marketing result in increased recognition, persuasion and education of the brand, unconventional marketing helps build a bond between the brand and the client. The Exforsys Inc. website (2011) expresses that unconventional marketing is an experiential marketing which appeals to the emotions. The client develops an psychological attachment to a brand, product, person, or idea. Therefore, unconventional marketing greatly enhance the customer interaction in order to get valuable insights and consequently enhance commitment.
Customer loyalty
When a business or a business organisation is opened, it is aimed to create and retain a dedicated customer who continuously add with the company in the framework of its long-term cost-effective business. The ideology of retaining a permanent romance with brand faithful, i. e. the client who has the continuous requirement of the same product is named customer commitment. Customers will leave the business or organisation if it's not targeted at curomer commitment. Various explanations have been found regarding customer devotion in literatures. Sivadas and Baker-Prewitt (2000) said "there is an increasing popularity that the best objective of customer satisfaction way of measuring should be customer loyalty". Anton (1996) detailed "satisfaction is favorably associated with repurchase motives, likelihood of recommending something or service, loyalty and success". In 1997, Guiltinan, Paul and Madden (1997) said that satisfied customers are more likely to be duplicate (and even become devoted) customers (Guiltinan, Paul and Madden 1997). While these statements indicate that customer satisfaction is one of the factors of customer devotion, customer dissatisfaction does not always lead to a reduction in loyalty. For example, even dissatisfied, some customers may be dedicated because they don't expect to get any better service even if indeed they performed change (Reichheld 1996).
In addition to customer satisfaction, brand devotion may be another factor which may play in customer commitment. Sometimes, customers can also feel a sense of loyalty and emotional connection to a particular brand (Fournier 1998). However, the relationship of the brand with a customer is a two-way process in which it is not concerned what sort of customer seems to a particular brand, which association is merely 'desire' or 'proclivity' (Peppers and Rogers 2004).
Customer Acquisition
The assurance phase
Customer Development
Customer Commitment
The sales phase
Customer Retention
Customer Devotion Cycle
Satisfaction
Satisfaction
Satisfaction
Satisfaction
S2
S1
S3
S4
Figure 1: Customer Loyalty Pattern as a BUSINESS DESIGN utilized by the Scuba Academic institutions International (SSI) Dive Centres. They acquire students and convert them into faithful customers. S1: Step 1 1, S2: Step 2 2, S3: Step three 3 and S4: Step 4 (Modified from http://divessi-indo. com/acquisition/systems. php, accessed on 24 September, 2012).
Finally, price may be one of the determining factors of customer devotion (Fisher 2001). For instance, good pricing is an important factor in motivating customer devotion (Abratt and Russell 1999). On the other hand, if a customer is faithful to a brandname, he/she will not caution of future price changes (Clark et al. 1995) indicating price might not exactly play a role in customer commitment.
While customer commitment depends on different facets, the process of customer commitment is not a simple task running a business. The procedure of customer devotion can be achieved in 4 steps (Amount 1). The first step is named the assurance period where customer is bought via different marketing or business strategy. Then, customers are made satisfied and then, they receive different trainings and education programs to keep them bonded. This is actually the education and bonding period and is the second step of customer devotion. Again, the customers are created satisfied and customers make commitment in the sales phase or third stage. The satisfaction to customers is extended and customers will stick to the same brand or the same company in the continuation and activity stage. This is quite important to keep carefully the customers retention. The cycle is repeated accompanied by client satisfaction. Therefore, customer satisfaction may be one of the important factors in customer commitment (Number 1).
Measuring marketing effectiveness
Companies spend vast amounts of dollars yearly on marketing. Due to increasingly competitive market segments, firms make an effort to produce higher and higher revenue. This brings about demands justifying the marketing expenditures (Corrosion et al 2004). Powell (2002) claims that marketing performance is the grade of how marketers perform their marketing activities to be able to optimise their expenditures and achieve both short and long-term goals. The difference between marketing performance and efficiency is discussed by Corrosion et. al (2004) as they state for example, that price deals may be useful in delivering short-term income and cash flows but ineffective over time if it is destroying profitability and brand equity over time.
Figure 2: The Chain of Marketing Productivity (Modified from Journal of Marketing 2004, vol. 68, pp. 76-89).
The "Chain of Marketing Efficiency" is a conceptual framework that can be employed for evaluating marketing efficiency (Body 2). This model talks about the effects of certain marketing actions of a firm on its position and standing on the market. Rust et al (2004) think that every firm must have a business model which is utilized to track the potency of marketing expenditures in influencing the data, beliefs and thoughts of the customers that ultimately brings about purchase behaviours. They pressure on the undeniable fact that marketing efforts such as advertising and product advancements help in building permanent property such as brand collateral. These long term belongings are leveraged to deliver profitability in the brief run. Customer thoughts, beliefs and thoughts that lead to buy behaviours are usually measured through non-financial actions such as attitudes and behavioural motives. These non-financial methods drive financial performance measures like sales, profits and stock prices in the short and long goes (Rust et al 2004).
Behaviours
Hoyer and Macinnis (2009) areas that consumer behaviour reflects the amount of most consumer decisions from acquisition to disposition of goods, services and activities. Behaviour of the consumers is a active process reflecting acquisition, consumption and disposition activities. The questions of what, why, how, when and how much to obtain, use and dispose a particular offering can have a significant impact on how approaches for marketing and communications are developed. To be able to produce, communicate and offer appropriate goods and services, marketers need rich insights on consumer behaviours and what they value (Hoyer & Macinnis, 2009).
Marketing attempts such as communications and special offers have a long term impact on consumer behaviour. Lately, consumers have grown to be more price- and promotion-sensitive over the time since there is a whole lot of information and choice open to them. This is why increasingly more companies are attempting to effect consumer behaviours through marketing work such as offers and marketing communications (Mela, Gupta & Lehman, 1997).
Sales Revenue
Sales revenue figures are the most objective methods of marketing efficiency. Financial benefits, such as sales, from particular marketing attempts are assessed in various ways. One traditional method is the Profits on return (ROI) which is the relative come back that is from the required costs. Financial impacts like these impact the firm's budget in terms of revenue and cashflow. However, these methods are questionable and ineffective if relied after solely. This is because most of marketing initiatives are enjoyed out over time; there effects can't be observed in the brief run, while methods such as ROI only assess short term performance of marketing efforts. A better use of such methods must integrate future cash moves in order to predict and determine the long term marketing efficiency (Corrosion et al 2004).
Brand Equity
Brand equity is a relatively new concept which has developed from the past 2 decades as core marketing theory. It suggests that brand value can be derived from the discounted cash flows received from the sale of products/services as a result of organizations of the brand with those products/services (Corrosion et al 2004). Corrosion et al. (2004) further cite Tybout and Carpenter on the substantial brand equity of Home Depot that was the US$84 billion in 1999. This implies that even though there may be a short-term divide between ROI and marketing work, it might not be completely ineffective due resilient value offered through brand collateral. Elements of brand equity such as customer lifetime value, brand understanding, associations and acknowledgement can be determined by recognizing prevailing perceptions about the brand and efficient as well as mental value propositions that the brand provides (Dunn &Halsall, 2009).
The effect on customers and resultant developments in valuable possessions such as brand and customer collateral affect a brand's market talk about and earnings, hence, boosting its competitive position on the market. Long term benefits associated with these belongings can increase customer responsiveness to brands and its extensions, determination to pay payments, referrals, increased usage rates, lower after sales support costs, customer retention and loyalty. Many of these factors reflect a more substantial market share to be enjoyed by the brand with guaranteed greater success (Rust et al 2004). There's a wealth of means to measure market success. Methods to assess marketing practices and impact of marketing expenditures supply the necessary tools to have an impact on the practice of management and bring further trustworthiness to marketers. From an accounting standpoint, marketing output must be classified into alterations in financial possessions as well as intangible assets such as brand collateral (Rust et al 2004).
Red Bull-History
Red Bull is a favorite energy drink that had been manufactured since the early 1962 by the TC Pharmaceutical Co. , in Thailand by Chaleo Yoovidhya. The name of the business was subsequently became Red Bull Drink Co. Ltd. It had been introduced in to the European countries by the Austrian man Dietrich Mateschitz, who found out that one of the Thai energy drink called Krating Daeng (Thai: Red Bull) was good at comforting the Jetlag. He finally noticed that the Asia has a wide potential market for "Energy Drinks" and there is no such kind of product available in the West or the European countries. In 1984, he founded an Austrian company called Red Bull GmbH that sold about a million cans in 1987. As a result the sale was expanded to other countries like the united kingdom, Germany, Switzerland and others (http://www. fundinguniverse. com/company-histories/red-bull-gmbh-history/). Throughout the world, it is the head in the energy beverages market and has about 70% of the market show and has twelve-monthly sales of billion dollars (Data Keep an eye on, Red Bull GmbH, 2004).
Red Bull-Branding
When released to the market segments of the world, hardly any believed in the successful potentiality of Red Bull as a brand and product. The mere idea of energy drink was helped bring into inception by Red Bull & most presumed that such a restricted product category of energy drink had not been required when you had other available choices such as tea or coffee as energy boosters. Beardwood (2010) remarked that Red Bull might be considered a slightly safer option to alcoholic beverages. Although there are negative assumptions related to Red Bull brand, it has end up being the leading energy drink maker about the world. Regani in 2006 thinks that the soul reason of the success of Red Bull in marketing is due to its audacity to believe from the box and its trend setters somewhat than supporters (Regani (2006).
Red Bull-The brand
While considering Red Bull as a brand, it displays energy, enthusiasm, lively life, development setters, ambitious and anything that is about youth and its whereabouts. Whenever a person is found to consuming Red Bull, the image created in mind is a 'cool' and 'trendy' one that is certainly the type of positioning they have got achieved as a brand. All brand managers at Red Bull maintain that the placement of Red Bull won't change no matter what the situation is, as that is exactly what Red Bull, as a brand has thrived on. Red Bull is more about the brand than the product itself. ' Corresponding to Gschwandtner (2004), it is not Red Bull's sales strategy that helps it sell like hot cakes about the world, but it is its impressive branding strategy that has helped it end up being the number one energy drink name of the world.
Red Bull-Marketing strategy across the world
Red Bull as a brand is rebellious in character and it really proves the kind of unconventional online marketing strategy it includes chosen. They absolutely won't advertise and use a few of the conventional settings of marketing promotions such as billboards, banner advertisements, taxicab holograms and blimp in a way that many brands would opt to do. Even their TV spots are extremely different from others. Performed only on market channels, they are merely sketches of your inexplicable Austrian artiest that tries to amuse the audience more rather than educating them. They completely pursue unconventional marketing ways to build the brand that majorly includes hype generating techniques, event-based marketing, hiring brand ambassadors, helping student tasks, free sampling and others.
Rather than occurring mass, Red Bull focuses on underground style with BTL activities. It aims to produce viral hype by paying college going students, disk jockey (DJ)s and young opinion leaders to sponsor events and celebrations where in fact the drink can be offered. These are the sort of get-togethers Red Bull motivates its ambassador to lead or organise as it seeks to associate its brand with such occasions. Therefore, strong Red Bull branding can be viewed at team, caf and discotheque where young crowds are usually present.
Red Bull will not devote to advertising and flashy movie star endorsement. They work with hip young people, students and unconventional players to endorse their brand and promote it. These not only cost a lower amount but are also more effective as they are closest to the prospective market and know the mandatory consumer conducts. Besides that Red Bull coordinate and sponsor extreme activities situations like the X-games and freestyle football which against complements their strategy of unconventional marketing.
Campaigns
Their promotions are mostly based on organizing incidents that are associated with the brand. These events usually include unconventional activities, parties, student based events and exhibitions. They use such occasions to heavily brand their product using all types of aesthetics and tools. Plus, in addition they test at these incidents to generate product trial also to let their concentrate on consumer experience the efficiency of Red Bull. Their most recent advertising campaign was the world travel of free style biking champ Kenny Belaey who was simply taken to all Red Bull operating countries where he performed stunts at different institutions, colleges and universities. This event was used to generate an impression for Red Bull as an adventurous, outrageous and unique brand. Sampling was also conducted at all stunt venues. Prior to the travel of Kenny Belaey, Red Bull prepared the Free Style footballing competition all around the world where children flaunted some cheeky skills to gain the major prize of going to the World Cup in South Africa.
Publicity stunt/buzz generating tactics
The main motive of Red Bull behind using unconventional and unique marketing strategies is to generate or create people discussing them that little by little support to market them. They aim to create a excitement through their events that is why they don't prefer using the traditional modes of communication (e. g. Television set, radio and print press). Red Bull aspires to make a viral fever through its incidents where people are impressed by the activities they perform and speak about it. The note spreads like crazy fire that is the thing each Red Bull brand supervisor or brand ambassador targets in every its operating countries. Main purpose is to take action so outrageous and unique, that people keep talking about it. Therefore, the brand is both getting the required mileage and creating a customer base for itself.
A small example of how Red Bull tried to generate a hype was the high bounce that their hired athlete attempted from the tallest complexes in all the Red Bull operating countries. Media was asked to the stunt and heavy Red Bull branding was exhibited. There is great buzz and anticipation because of such an outrageous try out being created by a person. People maintained discussing it and there was a certain excitement relating to this stunt. The venues for the stunt were closely branded with Red Bull aesthetics to demonstrate that it is Red Bull who has the event. The stunts were successfully completed in every Red Bull operating countries with the advertising heavily submitting it on Television, printing and radio. The 'amazing' factor was achieved as individuals were discussing it and this was precisely what Red Bull wanted to achieve with this stunt. In this particular context, it might not be reselling the merchandise through these stunts but it really is developing the brand as an daring and unique one and also that it's creating a hype about Red Bull which is basically the prospective and aim of the Red Bull brand administrator or ambassador at the closing of the event.
Endorsements
Red Bull will not really rely on movie star endorsement as that's not its style. What it does is acquiring athletics teams about the world and helping them as its recognized sponsor. The following endorsements are currently created by this brand:
Red Bull is the state sponsor of most X-games conducted round the world. This endorsement suits their online marketing strategy of being unconventional. All venues and player dresses are Red Bull top quality and heavy sampling is done at these occasions.
Red Bull has bought two football clubs throughout the world. One takes on in the Major Little league Soccer in america of America and is known as the New York Red Bulls (http://www. newyorkredbulls. com/), seen on 25 September, 2012). The other is in the Austrian Sports League and is known as Red Bull Salzburg (http://www. austria-salzburg. at/, reached on 25 September, 2012). Both groups have their products top quality with Red Bull. Red Bull Salzburg even have their stadium named after Red Bull and is named the Red Bull Market. One can easily spot the heavy branding of Red Bull at the stadium. This is an effective plan that involves the heavy mass media coverage of football all around the globe.
Red Bull has a Formulation One team which includes been doing extremely well because the acquisition took place (http://www. formula1. com/news/headlines/2010/5/10796. html, utilized on 25 September, 2012). The automobile and the driver's dress are completely brand name with Red Bull logos. That is again a very effective because Formulation One auto racing gets a lot of coverage throughout the world and gives Red Bull the mandatory mileage in its target audience.
Red Bull endorses the major stars in unconventional athletics and video gaming. A stick out example is Kenny Belaey who has been supported by Red Bull throughout his job as a free of charge style biker (http://www. tribalzine. com/?Kenny-Belaey-after-the-success-of, accessed on 25 September, 2012).
Sampling through brand ambassadors
Another strategy of the marketing by Red Bull is the contract with brand ambassadors at schools, universites and colleges to symbolize the brand at communal incidents and hangouts. These brand ambassadors are given animation/s of Red Bull to test at parties and areas where Red Bull might be needed. These circumstances happen when students are in mental or physical stress due to various reasons, for illustrations sports happenings or time of academic examinations. The theory is to employ 'cool college heading students' to stand for the brand among its intended target market.
Another promotional strategy is involved with educating consumers. Red Bull organises travel in by its staffs in an automobile that carries large cans of Red Bull. The Red Bull staffs aim for those individuals who lack energy and needs of energy. Then, the staffs provide a free can of Red Bull to these folks. This strategy appears to be successful during the advantages of Red Bull into general public.
Red Bull-Establishment in Nepal and structure
Red Bull was finally launched in Nepal in 2002 and since it has been a leader in the market with relatively reduced competition. Red Bull was brought to Nepal by S. M. Chawla Company that only managed distribution of Red Bull originally. When the head office in Dubai evaluated the sales in Nepal, they decided to officially start their businesses within an office of their own. In 2004, Red Bull Nepal was established with three practical departments particularly Marketing, Sales and Funding. Red Bull happens to be being run in Kathmandu with the Asian head office being in the United Arab Emirates (Physique 3). It has setup its premises in all three towns where syndication and marketing businesses are executed. The current organizational composition of Red Bull Nepal is shown in Number 3.
Figure 3 : The existing organizational composition of Red Bull Nepal.
Marketing
The current organizational framework of Red Bull Nepal is governed by Asian Head Office. This office mostly programs and executes BTL promotional activities for Red Bull. Understanding the buyer need and discovering activities to fulfill them is one of the most important responsibilities. Pre- and Post- event communications of most promotional activities are also taken care of by this office. Each city has one marketing mind and three Student Brand Managers appointed from popular universities to work as a team. Marketing section also manages communication via sociable press like Facebook yet others.
Sports and Events
This is a fervent team that programs around the year activities predicated on athletics and other practical incidents. Red Bull conducts all its marketing through guerilla style and that is why this team has its special importance. They mostly plan and perform accompanied by cooperation with the marketing department.
Finance
Finance Department consists of an accurate and dedicated full-time team member. The financing team distributes the cover executing the marketing activities. This section also looks after the income control system. The team also keeps and keeps history of every month sales. This division submits the every month studies of sales performance to the top office in Dubai.
Communication
This department deals with all the pre- and post-event communication of Red Bull events and activities through all advertising that include Television, printing, radio and sociable media. This strategy is similar to the idea of communication in unconventional marketing of Red Bull brand to its audience. This division actively stays in touch with people in the press to disseminate reports about everything that Red Bull does not simply in Nepal but also round the world.
Sales
Since Red Bull is brought in from Dubai (Asian Mind Quarters), a development department is not needed. The distribution division will take in-charge of the inventory management tasks of Red Bull. In addition they conduct all syndication operations of the town.
The strategic measurements of Red Bull branding
"Red Bull isn't a drink, it's a lifestyle" says Dietrich Mateschitz, CEO of Red Bull GmbH (Speed-In-A-Can, The Red Bull Account, http://www. slingstone. us/uploads/Speed_In_a_Can. pdf, accessed on 25 Sept, 2012). He brings that "we don't bring the merchandise to the people; we bring the visitors to the product. " Along with the energy drink market set up as they have today, you can find fact in Mateschitz words. Red Bull had become a cult brand with devoted customers in a brief period of time. To analyze it, we execute the strategic measurements of branding from Load (2005) (Body 4).
Figure 4: Strategic measurements of branding (Adapted from Fill 2005).
Integration
A brand can only just work when it communicates in a steady and significant way. A successful branding is partially the result of effective integrated communications, stated Fill (2006). Red Bull is definitely known for unconventional form of involved marketing communications. The truth is that they only used small marketers that sell Red Bull only without any inspiration of coping with large marketers.
Differentiation
Red Bull takes differentiation as a primary aspect as it is a pioneer, the to begin its kind on the market. Being the first energy drink, it includes has various advantages, though it is not easy to open a fresh market category. But Red Bull needed the differentiation further, by firmly taking a different methodology in their marketing, sales, advertising, and distribution. Judged by the targeted consumers, the technology Y, differentiation is essential as they strive for their own identity. Gobe in 2001 explains "They want for authenticity, self-identity, and community in the brands they endorse. As well as for Red Bull's target audience, being authentic means being somewhat irreverent, a little anti-establishment, and every bit different from your parents" (Gobe 2001)
Added value
As the ultimate key aspect in the proper sizes of branding, added value enables the clients to derive extra benefits as one brand provides different benefits to another. These advantages will come by means of logical attributes-based advantages or emotional-based advantages through the augmented aspects of the merchandise. Red Bull has added value in both aspects. As it can be an energy drink and has proven which it can revitalize the body and mind, it fits as an edge in the rational sense. As for the emotional-based benefits, the product marketing communication located Red Bull as a lifestyle product, for example, it is aligned with the approach to life associated with action or extreme activities. Value is put into brands through three main components: identified performance, psychosocial meaning and the degree of brand-name recognition.
Perceived performance
Perceptions produced from consumer on the comparative quality and perceived associations are concerned as a key feature. Red Bull as an energy drink has done its job that it was promised to do for the buyer. Red Bull even utilised the boosting and vitalising effects to associate the partnership in circulation.
Psychosocial meanings
It refers to the immaterial organizations that consumers make about brands such as meanings about personality and expressions of personality. With Red Bull, it had been perceived as a brandname with an advantage, as Gobe (2001) explained "Red Bull is not about safety, that is the brand emotion is over the advantage; it's pushing the envelope. Danger is part of the deal. If you can survive Red Bull, you are cool. "
Brand-name awareness
It has been argued that the level of name awareness can provoke emotions of familiarity and reduced risk or uncertainty. The foundation and development of the name Red Bull itself had not been based on the familiarity of the market, it was based on the drink's name in Thailand. But Mateschitz acquired tweaked the meaning a bit to make it more familiar for the western market, from red water buffalo to Red Bull, as bull is associated with strength and virility.
Marketing strategy of Red Bull in Nepal
Red Bull has modified a very unconventional style of marketing in Nepal which relies completely on BTL activities. Unlike anywhere else round the world, where there's a certain ratio of marketing activities done through TV, radio and printing, they do not do ATL marketing promotions in Nepal. A number of the tools that Red Bull doesn't use in Nepal are Television set, radio, billboards, banner adverts, taxicab holograms, and blimps.
Red Bull has highly adapted the practice of 'viral' marketing by paying students and young view formers to arrange Red Bull occasions at colleges and universities. They have also hired three University student Brand Managers from Kathmandu College or university, Purbanchal College or university and KMC which are the top three institutes of Kathmandu and have done the same in the rest of the towns. With students performing as their representatives, Red Bull provides them free cartoons of Red Bull and motivates them to toss parties and occasions. This results as an effective way to pass on the good word about Red Bull as it generally does not require a large amount of money, it's quick and the university student advocates offer credibility to a product competing in the beverage market. Another benefit would be that the pupil also provides research data that are valuable for the company.
Red Bull in Nepal is still in the process creating market. People still need to be educated about the idea of energy drink. Another promotional strategy, as discussed previously, involved in educating consumers is the fact that Red Bull recruits personnel that looks after the people who would like energy.
They also organise promotional occasions involving university or college and college heading students with designs like sports, art, part and music. Although this functions to entice only a certain percentage of the marketplace, this is all Red Bull relies on to communicate with its marketplace.
Red Bull Nepal has used the same strategies as about the world. Although with most the population can be communicated to through mass-media, it still sticks to its strategies of unconventional marketing.
Campaigns in Nepal
Since its inception in Nepal, Red Bull has planned a few hype generating happenings that resonates the brand personal information to its customers and they are as follows:
Red Bull Foundation jump: This is a global advertising campaign where they appointed an athlete to jump from the tallest building in the location to make a hype about the merchandise. In Nepal, this stunt was performed among various people in the occurrence of media. They were invited to experience this outrageous work. The function was an enormous success in conditions of the frequency the brand distribution.
Red Bull Free Style Sports: This again was a worldwide campaign where children from all over the country were decided on on the bases of their footballing skills and were provided a program to flaunt their talent before the common community. This event was conducted in Kathmandu. The turnout of members was appreciable low as compared to the turnout in other Red Bull operating countries as a result of lack of popularity of the sport in Nepal.
Doodle Art work Competition: Students from all over the town were urged to post artwork to be determined for exhibitions conducted at different universities. This is a more compact event but was effective as there have been many students who liked the thought of abrasive sketching and doodles.
The Head to of Kenny Belaey: This free style biker was taken to different schools, colleges and universities in Kathmandu where he performed his stunts.
Competitor review
Red Bull was the first energy drink which was successful and was enjoying a good market show. Later on, few companies realised that there is an enormous potential market of those people who prefer to have energy drinks and after watching the successful Red Bull, some big companies like Pepsi and Shezan made a decision to enter into the power drink market with the part of stocks. Among the major factor that differentiates energy beverages is they are costly than other refreshments, juices, malt, carbohydrate drinks as well as others. Another factor which performs an important role is the style of the drink. Every energy drink in the market is wanting to compete with one another in every possible manner and therefore flavor might be the major factor which every drink tries to distinguish itself as tastes is the most prominent change in energy beverages. Both major opponents of Red Bull in Nepal are Sting and Swiftness.
Sting
Pepsi has unveiled its energy drink in Nepal with the name of Sting. Sting located its marketing strategies based on the Nepalese culture. It applied the mass market tools of ATL and BTL to attain out to the maximum customers. Their advertisements of energizing and revitalizing by claiming to be energy drink which has the ultimate flavor and extreme energy was appealing and many people went out and used Sting. Like Red Bull, which includes sampling car Little Cooper, Sting also introduced its association with hummer and used to transport beverages in hummer for sampling. The view of hummer was coated with Sting written around it and was made attractive enough. Other adverts were included in TV and radio, and billboards. In addition, BTL activities were also run in various parts of the country in which many sporty events were sponsored along with rock concerts.
Sting entered in to the market with a far more sweet style of energy drink. Rivalling with Red Bull, they may have launched two flavours, is red in colour and another is yellow. It is sweet in taste when compared with other energy drinks. The main main differentiating point is the fact that Sting is competing on price with other energy drinks which is usually high in price. Sting was began with the price of 0. 67US$ per can. The quality was guaranteed by the mother or father company Pepsi Co. So, low price didn't have much effect on the quality of the merchandise. Through low price they are capturing the mass market. They are the cheapest energy drink with a fine flavor. Sting is also within a bottled-filled that costs 0. 44US$ per bottle. Sting thus will concentrate on mass market and is also leading towards more of a drink drink rather than an energy drink. Their presentation is also attractive and various.
Speed
Speed energy drink originates from the home of Shezan. After finding a good potential market for energy drinks Shezan also released its energy drink with the name of Speed. Speed implemented BTL as well as ATL as it was promoted on billboards in several proper positions of the country, TV and radio advertising were being run on every potential channel. Free sampling, sponsoring concerts, activities' occasions and organizing some outdoor activities which involve people are parts of their plan. Therefore, Acceleration is connecting with mass market to be able to reach out the utmost people of their marketplace.
Their product packaging was different and eye-catching. The price of Speed was started out from the price tag on US$ 1. 33 per can. This was not reduced unlike some other new energy drinks on the market. Speed is not contending on price and thus is keeping its price above which might attract potential buyers about its quality and uniqueness. But the review is not the same as people after having it. It's been shown that individuals didn't experience any difference in flavour and it was a yellowish coloured energy drink. Similar types of characteristics are located in other low-priced energy drinks were offering.
Effectiveness of Red Bull's marketing strategy in Nepal
The term 'marketing performance is the quality of how marketers perform their marketing activities to be able to optimise their expenses and achieve both brief and long-term goals (Marketing performance, Marketing expert understanding group 2009, https://www. cips. org/Documents/Resources/Knowledge%20Now/Mkt_Effective_V3%20200409. pdf, seen on 25 Sept, 2012). Terminologies such as marketing return on investment (ROI) and returning on marketing investment ROMI tend to be related to marketing efficiency as they measure the return on the investment made by marketers through different marketing functions.
Each marketing program must be measurable in terms of ROI and ROMI. Inside the short run, the target may be to create more income in conditions of sales characters. However, ROMI in the long run build more brand acceptance. ROMI is an instrument to produce more out of marketing programs. This helps the marketing team to conceptualise marketing programs, plan and budget them, connect their goals and targets, execute and manage, solution and monitor, and when successful, go back to the well for more income to range them for even more success. Thus, marketing performance is needed to be considered not only in terms of ROI and ROMI, but also as a benchmark for future marketing programs.
The analysis of measuring the effectiveness of marketing programs of Red Bull in Nepal may follow the three guidelines (Body 5).
Figure 5: Variables used in calculating the potency of marketing programs of Red Bull in Nepal.
Behaviours
Behaviour is one of the measuring factors of marketing success. It contains subfactors or the characteristics of any person or a person. Attitudes, inspiration, personality, lifestyle are some intrinsic subfactors that determine the behaviour of your person. In addition, the buying decision process also significantly is important in behaviour that is important in measuring the potency of marketing program of Red Bull in Nepal.
Sales revenue
This targets the effectiveness of marketing expenditures in reaching short-term results. Program or plan specific models are usually put on measure the immediate impact or online value of expected revenue to be derived from the investment (Pat LaPointe, Marketing by the Dashboard Light: How to get more perception, foresight and accountability from your marketing opportunities, 2005, ISBN: 1-56318-036-7). These inputs give valuable home elevators optimizing source allocation in the framework of generating near-term results. To estimate the Red Bull's marketing performance, company projected sales numbers is extracted from particular marketing programs.
Brand equity
These metrics seek to keep tabs on the introduction of the longer-term impact of marketing programs through the brand's point of view. This includes gauging current and prospective customer's perspectives of the brand through research (Pat LaPointe 2005). This point of view is measured in the brand's operation, personality, convenience and value propositions (Pat LaPointe 2005). It's true that higher brand collateral, even though intangible in characteristics, will drive stock results and therefore the actual well worth of the business. Therefore, it is vital to manage the brand equity elements of every product and gauge the success of marketing on these elements.
CHAPTER-3
RESEARCH METHODOLOGY
Research approach
In the existing research, all data were accumulated from primary resources. The principal data for this research was extracted from a questionnaire that was completed by people in Kathmandu and from Skype-to-Skype interviews. Though data were generally associated with major sources, extra data such as information about Red Bull's events, market buildings were provided by respondents. Furthermore, the info related to energy beverages were found in posted articles and catalogs.
Types of data
Quantitative data
In this study, amounts or percentages of the respondents or the amount of income (1United Says Dollar, US$=90 Nepalese Rupees) or other quantitative data were calculated using quantities and percentages.
Qualitative data
The qualitative part (gender, behaviours, brand awareness and devotion) were calculated using questionnaires or interviews.
Population
The shape of reference for the analysis was limited to the Nepalese market for energy drinks that was aged above 18 and resides in the urban areas. Red Bull's marketplace category is considered to be the high-income groups of SEC A and 18-32 years age ranges. Therefore, these kinds of people were considered during sampling.
Sampling
For the existing research, the examples were limited to the urban areas of Kathmandu only. Based on a purposive sampling method, 200 people who fall under the mark market category for Red Bull were picked. These individuals were either interviewed via Skype-to-Skype discussion or sent out questionnaires via Facebook and e-mail which were possible for data collection.
Measurement/Instrument selection
Data Collection: As already explained, extra data was gathered via books review that consisted of the previous studies conducted on the prevalent strategies used by Red Bull internationally as well as locally. Key data were gathered via interviews and questionnaires.
Tools for primary research: Major research has been conducted through interviews and study questionnaires (open concluded) have created for assortment of data.
Variables
The factors which are extremely important and playe an intrinsic part in derivation of the research results were:
Introduction of new/revised marketing strategies by Red Bull Nepal
Awareness of these strategies in the target market
Change in execution of globalized strategies in an area perspective
Competition with different brands of drinks
All these variables are those which impact the potency of Red Bull's unconventional marketing strategies in the Nepalese market.
Data analysis
Diagrams (toon, SmartArt), charts (Bar graphs and Pie Graphs) and furniture (normal and 2X2 or 3X2 contingency) were prepared using Microsoft Office, and Microsoft Excel. Data were provided in percentage (%) that was computed by dividing by the total numbers of respondents in each question. Data in contingency table were analysed to learn the hypothesis whether there was significant difference among factors, for example, age-groups and Red Bull target market, gender and Red Bull marketplace, marital position and Red Bull target market and income and Red Bull marketplace. Depending on the types of data, these dissimilarities were analysed by different Chi-square test, for example, normal Chi-square test, Chi-square test with Yate's correction, and Fisher's exact test by GraphPad Prism softwares (Prism 5 for Windows Version 5. 00, March 7, 2007). Data were considered to be significant if the p prices were less than 0. 05 at 95% self-confidence interval.
Consumer profile analysis
The consumer account analysis was conducted based on the gender, age-groups (years), marital status and income (US$ per month).
Promotional situations and their effectiveness
As discussed before, Red Bull in Nepal stimulates themselves only through BTL activities. These BTL activities include promotional occurrences and buzz making stunts that are targeted largely to the junior of the country. This strategy is the primary target segment for Red Bull not only in Nepal but also throughout the world. These promotional events are usually themed on sports, functions, youth related happenings, art exhibitions, youth workshops, workshops, concerts, gigs and all those events that are for the young ones and the mass media industry. The next elements of this chapter gives a clear analysis of the success rate of Red Bull's promotional occasions in terms of relevance to the target market, sales generated from the happenings and behaviours of the Nepalese people.
Consumer Insight
Lastly, it was asked the respondents to understand the way that should be done to enhance the occurrence of communication to their target consumers. A whole lot of interesting replies received but one of the most common one was that Red Bull should start ATL marketing that involves the use of conventional press like television, print, and radio. Other responses include the wide request of the BTL, for example, campaigns of Red Bull can be organised in athletics such as crickets and basketball which are gathering popularity in Nepalese youths.
Discussion
Energy drink consumer analysis
In the first part of the thesis, energy drink consumer examination was conducted. Oddly enough, a huge potential market for the energy beverages was found to can be found in Nepal because proportionately higher numbers of people would like to consume energy beverages. This implies that this is a good signal and worthwhile for just about any potential organisation to invest in the power drink category. In addition, the breakthrough of different energy brands, for example Virgin, Coca-cola, Pepsi and Shezan became competitive in Nepal, however, Red Bull dominates all of these energy drinks which were on the basis of the best % of the people were both known to this brand and preferred this brand for taking in. That is also related to the international notion that Red Bull is the first successful energy drink with a global success and is also the pioneer in the drink market (Buchhloz, 2005). Though Red Bull been successful in creating a dominance position over Nepalese energy drink market, Sting, a new brand, cannot be disregarded in future because this brand appears to be a close competition of Red Bull in the current circumstance. Therefore, marketing an energy drink or useful drink for example, Red Bull is the most challenging process due to emerging competitors (Richey 2001). Furthermore, consumers are being more likely the purchase price and promotion-sensitive over the time since there is a great deal of information and solution choice available to them (Mela, Gupta & Lehman, 1997). However, Mateschitz, who owns Red Bull considers is not concerned about the competitive market because if one really enjoys the merchandise, then he or she would like to try out the original one that is the foremost in the market rather than a copied version (Johnson 2002). It is also supported by the fact that the majority of the drink brands remain on the highway of establishment whereas Red Bull is already an established brand (Riedel 2003).
Factors that affect potential target market of Red Bull in Nepal
While Red Bull has dominantly taken Nepalese energy drink consumers in Nepal, there are several factors that influence potential target market of the drink. Among these factors is the gender of the buyer. Nepal is culturally a distinctive country where boys and girls have equal protection under the law legally, however women almost never go outside for example in concerts, music, or any kind of public situations. Contrasting scenarios are found in the context of boys in Nepal especially in activities and athletics where boys are more engaged than girls. That is why Red Bull is obviously preferred more by men than by females. Similarly, this drink is a type of youth drink which is mostly consumed by folks of age ranges 18-25 yrs. old. These groups of men and women are mostly employed beyond your homes because they are college- or university-goers and are more likely involved in people, music, concert and public events. They have many friends outside and revel in taking various drinks to gratify their thirst by energising their body via having energy components, for example Red Bull. People above this time, though outside the home, are generally responsible to their lives and do careers for their family members and are less inclined to entail in those events. Therefore, they are really less likely found drinking energy drink. In this particular context, marital status may also directly influence the Red Bull drinking habit. Hitched people may become more sensible than unmarried in the framework of being inside homes, therefore, even psychologically wedded people think they shouldn't consume energy drink because these kind of energising drinks are not for them. In contrast, unmarried or single persons believe that they are flexibility to decide anything and also to drink anything. This can be analysed by an undeniable fact that whenever a person begins growing up, he/she gets more willing towards refreshments like tea and espresso for refreshing your brain and predominantly prefers eating energy drink for body and mind revitalization. However, it is difficult to anticipate the cause of this differentiation as it might depend on personal lifestyle and personal behavior and characteristics.
Not only love-making, get older and marital position play a role in determining use of Red Bull in Nepal, but also household or personal income performs an essential role in this context. The current research suggests that the Red Bull brand is a drink for SEC A and B kind of people. In other words, this is a category for the high income group because not all individuals are able to afford a power drink. A 250mL Red Bull can costs US$ 0. 56 which might be expensive for the poor individuals who have low income, nor have money to complete their own basic needs. Therefore, Red Bull is a drink for the abundant people.
Red Bull brand in customer loyalty
Red Bull brand is also in a position to keep client satisfaction and customer commitment though various responses were obtained in today's research. These two points are the important issues to gain a great competitive benefit for an enterprise (Reichheld 1993). Therefore, calculating customer commitment to Red Bull in a powerful way is important in business is a key question of the existing thesis (Reichheld 1993). Therefore, calculating customer commitment to Red Bull in an effective way is important in business is a key question of the current thesis (Reichheld 1993). It's been measured by different facets such as Red Bull brand identified quality, USPs or uniqueness of the brand, personality and positioning of this brand, Red Bull consumer's conception about future purchase or retention and Red Bull non-consumer's understanding about future purchase after this research. Interestingly, Red Bull has generated the required image and belief about itself in the minds of the prospective market because they are associating Red Bull with the right elements. Red Bull being an energy drink has managed to get clear in the brains of consumers that it is all about energy and flavour or energy, flavour and packaging and this company with a fantastic or good brand on the market. The product is majorly accountable for the power revitalization of the body and brain. The preference of the Red Bull seems to be different from the usual beverage refreshments even from the newly introduced energy drink, Sting that includes a sweeter flavour. Taurine is one of its key things that independent Red Bull from other energy drinks. Red Bull includes unique presentation with two Red Bulls colliding face to face and the label type of 'Red Bull OFFERS YOU Wings' and its functionality to be a power drink is attractive enough. Unlike a typical traditional soft drink, it's not packaged in a 12-ounce can, nor bought from a bottle. Instead, it used an 8. 3-ounce slim can. Therefore, energy and flavour production and packaging are the factors that determine the uniqueness of Red Bull on the list of consumers and continue customer loyalty among these populations in Nepal. Notably, many responses regarding uniqueness of the brand, to no surprise, were "High Price". This may be an important problem of customer loyalty. The existing market is price-sensitive and customers keep looking for cheaper alternatives and substitute to fulfil needs. The identical notion may be employed for those respondents who thought Red Bull as a 'high price' beverages leading the lack of future retention on the drink.
While customer commitment comes in mind regarding Red Bull customers, respondents thought themselves enumerating various adverbs because of this drink such as 'energy', 'athletic drink', 'a good drink for night time study', 'sports activities drink', 'high profile drink', 'high priced drink', 'music drink', 'party drink' and 'concert drink'. This means that that these perceptions play a great role in starting, interesting, and retention of the drink among students, youths, sportsmen, and customers who feel themselves dynamic and high profile in the world.
The customer loyalty was also assessed by the consumer's and non-consumer's perceptions about future purchase of Red Bull. While lots of Red Bull consumers enumerated that they might continue purchasing this drink in future, still many consumers were either not sure about purchasing or not needed to purchase again. This means that that Red Bull consumers are not completely satisfied related to the refreshments and many of them do not need to show up on customer devotion. In the same way, during this research 1 / 2 of the populace who never drank Red Bull wanted to be considered a new customer of this drink. This suggests that Nepalese customers want to experience new energy drink in future.
Effectiveness of Red Bull's marketing strategy in customer commitment in Nepal
Next, the potency of Red Bull's online marketing strategy in customer devotion in Nepal was analysed. Red Bull's marketing campaigns are unconventional and BTL however the competitors are reaching out the mass target audience but using both method of marketing regular as well as unconventional marketing strategies in order to reach away to the utmost market and capture higher market show (Thomas et al. 2008). The brand Red Bull is being perceived differently in different ethnical aspects (Thomas et al. 2008) and Nepal might be an important place because of this drink.
Among BTL techniques, sampling and will be the usual ways of measuring efficiency in customer devotion. Though majority of respondents were unacquainted with experiencing free sampling, Red Bull appears to be not completely successful in sampling enough people. This may be due to failing of the Red Bull brand in proper test selection that can include persons with defined gender, age-groups, marital status and monthly income. Furthermore, the free Red Bull sampling strategy might not been totally reliable strategy in Nepalese marketplaces because majority of folks did not purchase even after seeking free samples. This means that that people are though associated with free sampling Red Bull, they may take it for granted and and look at it as an opportunity for free refreshments rather than deploying it with the intention of experiencing its energy. Therefore, it can be clearly stated that approach to unconventional marketing is not creating the desired consequence. This is depicted from the cause which most the respondents are in view of unsuccessful strategy about the sampling technique.
While sampling approach is probably not effective in customer loyalty regarding Red Bull, the role of promotional occasions in Red Bull marketing was analysed. It has been found that Red Bull is not gaining full success rates to talk to its market about the items they were doing. It also shows that certainly there's a problem with just how they can be promoting themselves. If they impose very much emphasis on promoting themselves through occasions, there must be enough amount of advertising for these occasions so that folks at least find out about what is occurring and can go and experience these happenings. Among many promotions, Red Bull, Kenny Balaey Head to of Nepal, Red Bull Air Competition Party, Red Bull Doodle Art Competition, Red Bull Block Style Basketball, Red Bull Tum Tum Pa, musical concerts and gigs, cricket, soccer and volleyball, exhibitions and concerts seem to be well-liked by people who needed part in Red Bull promotions. Even of these campaigns, majority of folks didn't buy Red Bull indicating these incidents are not successful in online marketing strategy of the drink. Therefore, alternate mechanisms of BTL activities can be organised to enhance customer loyalty. For example, popular superstars, like the young and hot movie theater actors or stars or models, or sportsmen should be engaged to signify the brand ambassador as symbolic of the young sensation for an official endorsement of Red Bull. In addition, campaigns of Red Bull can be organised in activities such as crickets and basketball which are gaining popularity in Nepalese youths. Finally, as recommended by the respondents, ATL online marketing strategy that in
