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Red Bull's Marketing Strategy

All big brands throughout the world are now shifting towards the trend of globalization. Something is forget about confined to geographical boundaries. Globalisation demands global marketing strategies being carried out around the world to resonate the brand's personality and its own image to focus on customers. A synonymous marketing strategy is cost-effective which is the strategy applied by many big companies throughout the world. However, experts also say that is not always a smart strategy because consumer behavior across the world ranges from culture to culture and from region to nation. For instance, an American consumer will react and respond in different ways when compared with a Nepalese consumer. Thus, while employing global marketing strategies, a wiser move would be to tweak it, customise it, and connect it with the local consumer behaviour. In the same way, few international big titles in Nepal have only integrated their global strategies and are not probably exploiting the huge potential they have. One particular case is that of Red Bull in Nepal. Since the entrance of the drink in Nepal, it did well enough to survive in the Nepalese market when compared with a few of the other energy drink brands. Red Bull has put in place its global marketing strategy such as unconventional method without really evaluating its effects on the client commitment in Nepal. Thus, the question still remains if the customer loyalty is inspired by Red Bull in Nepal that uses global unconventional marketing strategies.

Statement of problem

Red Bull's online marketing strategy throughout the world is to use unconventional strategies that require guerilla stunts and buzz generating techniques to communicate with their customers. Guerilla marketing is based on below-the-line (BTL) activities where brand recall is created through occasions and stunts that are usually related to activities (X-games), parties, experience and music. The athletics Red Bull aids are ones that are not popular in Nepal. Formula one and X-games aren't really popular. Likewise, Red Bull does indeed a great deal of promotional occurrences at discotheque to enhance its brand. But this is not relevant in Nepalese situation because we don't have any such kind of place. This is where the problem lays for Red Bull in Nepal. Like everywhere you go, the strategy is determined by unconventional marketing which is not appropriate and will not relate to the Nepalese culture and tradition. For example, how many people in Nepal would be thinking about free style sports? Hence, if indeed they conduct a athletics event predicated on free style football, still many people who are unrelated to these occasions will not consider signing up for there. Also, the idea of X-games that entail moto (street bike racing), snow skiing (ski big air, skier combination), snowboarding, snowmobile, Inline skating, skateboarding, and car rushing are not performed in Nepal. Thus, any event based on these video games would be absolutely inadequate here. We don't have well organised dance clubs and discotheques, as already identified. These areas will be the best places where almost all of Red Bull's promotions and selling would take place throughout the world. Red Bull also conducts a lot of its ambitious events round the world in deserts and mountainous areas. In these contexts, security is the leading issue. One would also dispute Red Bull should use above-the-line (ATL) ways of promotions (e. g. television set, printing and radio) to converse to a larger audience. The bottomline here is that Red Bull Nepal is not considering the local culture and consumer habit and it is blindly implementing its global marketing ways of communicate with its customers. That is why the existing research has been done to discover the potency of Red Bull's global unconventional online marketing strategy, for example BTL method, in customer commitment in Nepal.

Aim and Objectives


The current research was conducted to discover the effectiveness of Red Bull's global unconventional marketing strategy (e. g. BTL strategy) in customer loyalty in Nepal.


To analyse the situation of consumers in energy drink

Do they ingest energy drink?

Are they alert to energy beverages available in marketplaces?

Do they like any energy beverages?

To analyse the factors that have an impact on potential marketplace of Red Bull in Nepal.

Do gender, age-groups, marital status and income of consumers have any effect 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 devotion in Nepal?

Will sampling affect customer commitment?

Will promotion events affect customer loyalty?

Any recommendation in improving customer loyalty?

Justification of the study

At the finish of this analysis, our research can help understand the potency of Red Bull's global unconventional marketing strategy (e. g. BTL strategy) in customer devotion in Nepal. Furthermore, this analysis will make a difference to analyse the Red Bull brand in customer commitment.

A detailed article would be made regarding consumer tendencies, preferences, attitudes, reactions, lifestyles, and characteristics which would help us make an in-depth analysis on our research goals. An exciting prospect of this task would be to learn to what level Red Bull offers the ability to reach market segments and reach consumers as using unconventional marketing strategies restricts their reach and opportunities. Finally, the analysis will generate advice that'll be important in Red Bull marketing strategy in future.

Scope of the study

The study comprises of conducting a study in different elements of Kathmandu targeting individuals and groups (principally school and school students, celebrities and multimedia related persons) slipping into our concentrate on criteria to be able to find out the potency of Red Bull's unconventional marketing in Nepal. The study also entails interviews with skillfully developed to gain their viewpoints and reviews on the problem which was important to comprehend about Red Bull markets in this country.



Unconventional marketing

In the corporate world, the term marketing simply refers to activities carried out by organizations or individuals to be able to generate awareness shoot interest and raise sales. You will discover mainly two ways of make marketing, for example typical and unconventional marketing. The first, typical marketing, a normal marketing strategy, mainly identifies the utilization of multimedia or ATL activities for the purpose of promoting the brand. These conventional methods include television advertisements, printing advertisements in papers, journals, broadcasts on radios, billboards or hoardings and other sources of media. Unlike normal marketing, the unconventional marketing refers to all those forms of marketing that want lower budgets and more time, imagination, creativity and lots of energy alternatively than financial support. In comparison to conventional marketing that lacks an discussion between the organization and the end end user, unconventional strategy is more interactive with customers and gets them really employed with the activity itself. Examples require public interceptions, arbitrary giveaways or free sampling, and publicity stunt (PR).

Unconventional marketing is synonymously used as guerrilla marketing, hype marketing, public relationship techniques, viral marketing, social media, BTL in various literatures. This marketing campaign is especially interactive with consumers who are unexpectedly targeted in surprising places. Therefore, this plan is targeted at generating excitement and viral marketing via 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 Sept 2012).

While both types of marketing lead to increased awareness, persuasion and education of the brand, unconventional marketing helps create a bond between your brand and the client. The Exforsys Inc. website (2011) state governments that unconventional marketing is an experiential marketing which appeals to the emotions. The client develops an mental attachment to a brandname, product, person, or idea. Therefore, unconventional marketing greatly improve the customer interaction to be able to gain valuable insights and consequently enhance commitment.

Customer loyalty

When a corporation or a small business organisation is exposed, it is directed to generate and keep a loyal customer who continuously affix with the company in the framework of its long-term cost-effective business. The ideology of retaining a long term romance with brand faithful, i. e. the client who gets the continuous requirement of the same product is called customer commitment. Customers will leave the business or organisation if it is not aimed at curomer commitment. Various explanations have been found regarding customer devotion in literatures. Sivadas and Baker-Prewitt (2000) said "there is an increasing recognition that the ultimate objective of customer satisfaction dimension should be customer loyalty". Anton (1996) identified "satisfaction is positively associated with repurchase motives, likelihood of suggesting a product or service, loyalty and success". In 1997, Guiltinan, Paul and Madden (1997) said that satisfied customers are more likely to be repeat (and even become dedicated) customers (Guiltinan, Paul and Madden 1997). While these claims indicate that client satisfaction is one of the factors of customer commitment, customer dissatisfaction does not always lead to a decrease in loyalty. For example, even dissatisfied, some customers may be loyal because they don't really expect to get any better service even if they did change (Reichheld 1996).

In addition to customer satisfaction, brand loyalty may be another factor which might play in customer devotion. Sometimes, customers can also feel a sense of commitment 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 isn't concerned what sort of customer feels to a specific brand, and this association is merely 'choice' or 'proclivity' (Peppers and Rogers 2004).

Customer Acquisition

The confidence phase

Customer Development

Customer Commitment

The sales phase

Customer Retention

Customer Devotion Cycle









Figure 1: Customer Commitment Circuit as a BUSINESS DESIGN employed by the Scuba Classes 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 (Designed from http://divessi-indo. com/acquisition/systems. php, utilized on 24 September, 2012).

Finally, price may be one of the identifying factors of customer commitment (Fisher 2001). For instance, good pricing is an important factor in motivating customer commitment (Abratt and Russell 1999). On the other hand, if a person is loyal to a brandname, he/she will not service of future price changes (Clark et al. 1995) indicating price might not exactly play a role in customer devotion.

While customer commitment depends on different facets, the procedure of customer commitment is not a fairly easy task in business. The procedure of customer commitment may be accomplished in 4 steps (Body 1). The first rung on the ladder is called the assurance period in which customer is bought via different marketing or business strategy. Then, customers are made satisfied and then, they are given different trainings and education programs to keep them bonded. This is actually the education and bonding stage and is the second step of customer commitment. Again, the customers are created satisfied and customers make dedication in the sales phase or third stage. The satisfaction to customers is sustained and customers will adhere to the same brand or the same company in the continuation and activity period. That is quite important to keep carefully the customers retention. The routine is repeated accompanied by client satisfaction. Therefore, client satisfaction may be one of the critical indicators in customer devotion (Figure 1).

Measuring marketing effectiveness

Companies spend vast amounts of dollars each year on marketing. Because of increasingly competitive markets, firms strive to produce higher and higher earnings. This causes demands justifying the marketing expenditures (Corrosion et al 2004). Powell (2002) suggests that marketing performance is the quality of how marketers perform their marketing activities in order to maximize their expenses and achieve both brief and permanent goals. The difference between marketing performance and efficiency is discussed by Rust et. al (2004) as they say for example, that price offers may be useful in providing short-term earnings and cash moves but ineffective in the long run if it is destroying profitability and brand collateral over time.

Figure 2: The String of Marketing Productivity (Modified from Journal of Marketing 2004, vol. 68, pp. 76-89).

The "Chain of Marketing Production" is a conceptual framework that may be utilized for evaluating marketing success (Shape 2). This model points out the consequences of certain marketing actions of a company on its position and standing on the market. Rust et al (2004) believe that every firm will need to have a business design which is used to track the potency of marketing expenses in influencing the data, beliefs and feelings of the customers that ultimately leads to purchase behaviours. They pressure on the idea that marketing attempts such as advertising and product advancements assist in building long-term property such as brand collateral. These long term assets are leveraged to provide profitability in the brief run. Customer thoughts, values and emotions that lead to acquire behaviours are usually measured through non-financial actions such as attitudes and behavioural motives. These non-financial procedures drive financial performance actions like sales, income and stock principles in the short and long works (Rust et al 2004).


Hoyer and Macinnis (2009) says that consumer behavior reflects the amount of most consumer decisions from acquisition to disposition of goods, services and encounters. Behaviour of the consumers is a vibrant process reflecting acquisition, usage and disposition activities. The questions of what, why, how, when and exactly how much to obtain, use and dispose a specific offering can have a major impact how approaches for marketing and marketing communications are developed. In order to produce, communicate and provide appropriate goods and services, marketers need wealthy insights on consumer behaviours and what they value (Hoyer & Macinnis, 2009).

Marketing attempts such as communications and offers have a long-term effect on consumer behaviour. Lately, consumers have grown to be more price- and promotion-sensitive over the time because there is a great deal of information and choice open to them. That is why increasingly more companies are trying to influence consumer behaviours through marketing efforts such as campaigns and marketing communications (Mela, Gupta & Lehman, 1997).

Sales Revenue

Sales revenue volumes are the most objective methods of marketing success. Financial benefits, such as sales, from particular marketing initiatives are assessed in various ways. One traditional method is the Return on Investment (ROI) which is the comparative come back that is obtained from the required expenses. Financial impacts like these have an impact on the firm's financial position in terms of profit and cash flow. However, these procedures are questionable and inadequate if relied upon solely. It is because the majority of marketing efforts are played out in the long run; there effects can't be observed in the short run, while methods such as ROI only examine short term efficiency of marketing work. A better use of such methods must incorporate future cash moves in order to anticipate and determine the long run marketing effectiveness (Rust et al 2004).

Brand Equity

Brand collateral is a comparatively new concept which includes developed from days gone by 2 decades as core marketing theory. It suggests that brand value can be derived from the discounted cash moves received from the sales of products/services because of this of associations of the brand with those products/services (Corrosion et al 2004). Corrosion et al. (2004) further cite Tybout and Carpenter on the enormous brand collateral of Home Depot which was the US$84 billion in 1999. This demonstrates even though there may be a short-term separate between ROI and marketing efforts, it might not be completely ineffective due resilient value offered through brand collateral. Elements of brand collateral such as customer life time value, brand understanding, associations and reputation can be dependant on knowing prevailing perceptions about the brand and practical 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 influence a brand's market share and revenue, hence, boosting its competitive position in the market. Long term benefits associated with these property can increase customer responsiveness to brands and its own extensions, willingness to pay premiums, referrals, increased utilization rates, lower after sales support costs, customer retention and devotion. Many of these factors reflect a more substantial market share to enjoy by the brand with guaranteed greater profitability (Rust et al 2004). There is a wealth of means to measure market efficiency. Methods to evaluate marketing tactics and impact of marketing expenses provide the necessary tools to impact the practice of management and bring further trustworthiness to marketers. From an accounting standpoint, marketing production must be grouped into changes in financial possessions as well as intangible resources such as brand collateral (Rust et al 2004).

Red Bull-History

Red Bull is a popular energy drink that had been manufactured since the early 1962 by the TC Pharmaceutical Co. , in Thailand by Chaleo Yoovidhya. The name of the company was subsequently became Red Bull Drink Co. Ltd. It had been introduced in to the Europe by the Austrian guy Dietrich Mateschitz, who discovered that one of the Thai energy drink called Krating Daeng (Thai: Red Bull) was good at soothing the Jetlag. He finally became aware 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 Europe. In 1984, he set up an Austrian company called Red Bull GmbH that sold in regards to a million cans in 1987. As a result the deal was expanded to other countries like the UK, Germany, Switzerland and others (http://www. fundinguniverse. com/company-histories/red-bull-gmbh-history/). Throughout the world, it is the leader in the energy drinks market and has about 70% of the market show and has twelve-monthly sales of billion us dollars (Data Monitor, Red Bull GmbH, 2004).

Red Bull-Branding

When introduced to the market segments of the world, very few thought in the successful potentiality of Red Bull as a brand and product. The mere idea of energy drink was brought into inception by Red Bull & most presumed that such a confined product category of energy drink was not 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 alternative to alcoholic beverages. Although there are negative assumptions related to Red Bull brand, it has become the leading energy drink manufacturer across the world. Regani in 2006 believes that the heart reason of the success of Red Bull in marketing is due to its audacity to think out of the box and its own trend setters rather than fans (Regani (2006).

Red Bull-The brand

While considering Red Bull as a brand, it shows energy, enthusiasm, lively life, tendency setters, daring and exactly what is about youngsters 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 sort of positioning they have got achieved as a brand. All brand managers at Red Bull maintain that the placement of Red Bull will never change regardless of what the problem is, as that is exactly what Red Bull, as a brand has thrived on. Red Bull is more about the brand than the merchandise itself. ' According to Gschwandtner (2004), it is not Red Bull's sales strategy that helps it sell like hot cakes surrounding the world, but it is its ground breaking branding strategy that has helped it become the number 1 energy drink name of the world.

Red Bull-Marketing strategy across the world

Red Bull as a brand is rebellious in dynamics and it really proves the type of unconventional online marketing strategy they have chosen. They absolutely won't advertise and use some of the conventional modes of deals 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 not the same as others. Enjoyed only on area of interest channels, they are simply just sketches of an inexplicable Austrian artiest that attempts to amuse the audience more rather than educating them. They completely follow unconventional marketing techniques to build the brand that majorly includes buzz generating practices, event-based marketing, employing brand ambassadors, supporting student jobs, free sampling as well as others.

Rather than happening mass, Red Bull focuses on underground style with BTL activities. It aspires to create viral buzz by paying school going students, disk jockey (DJ)s and young opinion leaders to sponsor events and gatherings where the drink can be served. These are the type of functions Red Bull encourages its ambassador to lead or organise as it is designed to affiliate its brand with such situations. Therefore, strong Red Bull branding can be observed at golf club, caf and discotheque where young crowds are typically present.

Red Bull does not devote to advertising and flashy superstar endorsement. They hire hip young people, students and unconventional sports athletes to endorse their brand and promote it. These not only cost a lower amount but are also more effective because they are closest to the prospective market and know the required consumer conducts. Besides that Red Bull set up and sponsor extreme athletics incidents like the X-games and freestyle football which against matches their strategy of unconventional marketing.


Their campaigns are mostly predicated on organizing events that are from the brand. These situations usually include unconventional sports, parties, student structured happenings and exhibitions. They use such occurrences to greatly brand their product using a myriad of aesthetics and tools. Plus, they also sample at these situations to generate product trial and also to let their concentrate on consumer experience the features of Red Bull. Their most recent campaign was the world head to of free style biking champion Kenny Belaey who was taken to all Red Bull operating countries where he performed stunts at different universities, universites and colleges. This event was used to build an impression for Red Bull as an ambitious, outrageous and unique brand. Sampling was also conducted whatsoever stunt venues. Before the head to of Kenny Belaey, Red Bull prepared the Free Style footballing competition all around the world where youngsters flaunted some cheeky skills to earn the major award of heading to the World Glass in South Africa.

Publicity stunt/excitement generating tactics

The main purpose of Red Bull behind using unconventional and unique marketing strategies is to create or create people discussing them that little by little support to market them. They try to create a excitement through their occasions that is why they do not prefer using the traditional methods of communication (e. g. TV, radio and print out media). Red Bull aims to create a viral fever through its occasions where people are impressed by the activities they perform and speak about it. The concept spreads like wild fire that is the thing each Red Bull brand director or brand ambassador focuses on in every its functioning countries. Main purpose is to take action so outrageous and unique, that individuals keep discussing it. Therefore, the brand is both getting the mandatory mileage and creating a customer bottom for itself.

A small example of how Red Bull attempted to create a excitement was the high bounce that their employed athlete attempted from the tallest properties in all the Red Bull operating countries. Marketing 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 stored discussing it and there was a certain excitement concerning this stunt. The venues for the stunt were closely brand with Red Bull appearance to demonstrate that it's Red Bull who is the owner of the event. The stunts were effectively completed in every Red Bull working countries with the advertising heavily posting it on Tv set, print out and radio. The 'amazing' factor was achieved as people were discussing it and this was just what Red Bull wished to achieve with this stunt. On this context, it might not be providing the merchandise through these stunts but it is actually producing the brand as an daring and unique one and also that it's creating a buzz about Red Bull which is basically the target and goal of the Red Bull brand manager or ambassador at the final of the function.


Red Bull will not really count on celebrity endorsement as that's not its style. What it can is acquiring athletics teams across the world and assisting them as its standard sponsor. The next endorsements are created by this brand:

Red Bull is the official sponsor of all X-games conducted around the world. This endorsement complements their marketing strategy of being unconventional. All locations and player dresses are Red Bull branded and heavy sampling is done at these events.

Red Bull has attained two football teams round the world. One performs in the Major Little league Soccer in the United States of America and is known as the New York Red Bulls (http://www. newyorkredbulls. com/), seen on 25 Sept, 2012). The other some may be in the Austrian Soccer League and is known as Red Bull Salzburg (http://www. austria-salzburg. at/, utilized on 25 Sept, 2012). Both teams have their products branded with Red Bull. Red Bull Salzburg have even their stadium called after Red Bull and is named the Red Bull Arena. One can easily spot the heavy branding of Red Bull at the stadium. That is a highly effective plan that involves the heavy press coverage of sports all over the world.

Red Bull has a Formula One team which includes been doing extremely well since the acquisition took place (http://www. formula1. com/news/headlines/2010/5/10796. html, seen on 25 Sept, 2012). The automobile and the driver's dress are completely brand with Red Bull logos. That is again a very effective because Formulation One rushing gets a whole lot of coverage surrounding the world and provides Red Bull the required mileage in its market.

Red Bull endorses the major actors in unconventional sports activities and video gaming. A stick out example is Kenny Belaey who may have been recognized by Red Bull throughout his job as a free of charge style biker (http://www. tribalzine. com/?Kenny-Belaey-after-the-success-of, reached on 25 September, 2012).

Sampling through brand ambassadors

Another strategy of the marketing by Red Bull is the deal with brand ambassadors at universities, colleges and universities to represent the brand at social happenings and hangouts. These brand ambassadors receive cartoon/s of Red Bull to test at gatherings and areas where Red Bull might be needed. These situations arise when students are in mental or physical stress credited to various reasons, for samples sports situations or time of academic examinations. The theory is to hire 'cool college going students' to signify the brand between its intended target market.

Another promotional strategy is involved in educating consumers. Red Bull organises travel in by its staffs in an automobile that bears large cans of Red Bull. The Red Bull staffs concentrate on those individuals who lack energy and hopes of energy. Then, the staffs give a free can of Red Bull to these people. This strategy seems to be successful through the benefits of Red Bull into people.

Red Bull-Establishment in Nepal and structure

Red Bull was finally launched in Nepal in 2002 and since it's been a leader on the market with relatively reduced competition. Red Bull was taken to Nepal by S. M. Chawla Company that only dealt with syndication of Red Bull primarily. When the headquarters in Dubai evaluated the sales in Nepal, they decided to officially start their procedures in an office of their own. In 2004, Red Bull Nepal was established with three functional departments particularly Marketing, Sales and Financing. Red Bull happens to be being operated in Kathmandu with the Asian hq being in the United Arab Emirates (Number 3). They have set up its premises in all three cities where syndication and marketing operations are executed. The current organizational composition of Red Bull Nepal is shown in Number 3.

Figure 3 : The existing organizational framework of Red Bull Nepal.


The current organizational composition of Red Bull Nepal is governed by Asian Head Office. This office primarily programs and executes BTL promotional activities for Red Bull. Understanding the consumer need and discovering activities to satisfy them is one of these most important jobs. Pre- and Post- event communications of all promotional activities are also taken care of by this office. Each city has one marketing mind and three College student Brand Managers employed from popular universities to work as a team. Marketing office also handles communication via sociable marketing like Facebook as well as others.

Sports and Events

This is an ardent team that projects around the entire year activities predicated on sports and other useful occasions. Red Bull conducts all its marketing through guerilla style and that's the reason this division has its special importance. They mainly plan and do accompanied by cooperation with the marketing section.


Finance Department involves a precise and dedicated full-time team member. The fund team distributes the cover executing the marketing activities. This office also looks after the income control system. The team also maintains and keeps history of every month sales. This section submits the regular monthly reviews of sales performance to the head office in Dubai.


This department deals with all the pre- and post-event communication of Red Bull incidents and activities through all advertising that include Tv set, print out, radio and social media. This strategy is comparable to the thought 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 news about exactly what Red Bull is doing not simply in Nepal but also throughout the world.


Since Red Bull is imported from Dubai (Asian Mind Quarters), a development department is not needed. The distribution division needs in-charge of the inventory management duties of Red Bull. They also conduct all distribution operations of the town.

The strategic proportions of Red Bull branding

"Red Bull isn't a drink, from the 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 provides that "we don't bring the merchandise to the people; we bring the visitors to the product. " Along with the energy drink market proven as it includes today, there is truth in Mateschitz words. Red Bull got turn into a cult brand with loyal customers in a short period of time. To investigate it, we execute the strategic proportions of branding from Load (2005) (Amount 4).

Figure 4: Strategic measurements of branding (Designed from Load 2005).


A brand can only just work when it communicates in a constant and important way. An effective branding is partly the result of effective integrated marketing communications, stated Fill (2006). Red Bull has always been known for unconventional form of included marketing communications. The truth is that they only used small vendors that sell Red Bull solely without any drive of working with large vendors.


Red Bull takes differentiation as a key aspect as it is a pioneer, the to begin its kind on the market. Being the first energy drink, it has has various advantages, though it isn't easy to start a fresh market category. But Red Bull needed the differentiation further, by firmly taking a different approach in their marketing, sales, promotion, and circulation. Judged by the targeted consumers, the generation Y, differentiation is vital as they shoot for their own identification. Gobe in 2001 explains "They are looking for authenticity, self-identity, and community in the brands they endorse. As well as for Red Bull's market, being real means being a bit irreverent, a little anti-establishment, and just not the same as your parents" (Gobe 2001)

Added value

As the ultimate key aspect in the proper dimensions of branding, added value permits the clients to derive extra benefits as you brand can provide different benefits to another. These advantages will come by means of rational attributes-based advantages or emotional-based advantages through the augmented aspects of the products. Red Bull has added value in both aspects. As it is an energy drink and has proven so it can revitalize the body and brain, it fits as an advantage in the logical sense. For the emotional-based benefits, the product marketing communication positioned 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: recognized performance, psychosocial interpretation and the scope of brand-name understanding.

Perceived performance

Perceptions produced from consumer on the relative quality and identified associations are worried as an integral feature. Red Bull as a power drink has done its job that it was guaranteed to do for the buyer. Red Bull even utilised the enhancing and vitalising results to associate the partnership in syndication.

Psychosocial meanings

It identifies the immaterial associations that consumers make about brands such as meanings about personality and expressions of individuality. With Red Bull, it turned out perceived as a brandname with an advantage, as Gobe (2001) discussed "Red Bull is not about safe practices, that's the brand emotion is over the advantage; it's moving the envelope. Risk is part of the deal. When you can endure Red Bull, you are cool. "

Brand-name awareness

It has been argued that the amount of name recognition can provoke feelings of familiarity and reduced risk or uncertainty. The origin and development of the name Red Bull itself was not based on the familiarity of the marketplace, it was based on the drink's name in Thailand. But Mateschitz acquired tweaked this is a little bit to make it more familiar for the western market, from red normal water buffalo to Red Bull, as bull is associated with power and virility.

Marketing strategy of Red Bull in Nepal

Red Bull has adapted an extremely unconventional style of marketing in Nepal which relies completely on BTL activities. Unlike in other places across the world, where there's a certain percentage of marketing activities done through TV, radio and print out, they do not do ATL campaigns in Nepal. Some of the tools that Red Bull doesn't utilization in Nepal are Television set, radio, billboards, banner advertising, taxicab holograms, and blimps.

Red Bull has strongly adapted the practice of 'viral' marketing by paying students and young thoughts and opinions formers to organize Red Bull events at universites and colleges. They have also hired three Learner Brand Managers from Kathmandu College or university, Purbanchal University or college and KMC which will be the top three institutes of Kathmandu and also have done the same in all of those other towns. With students acting as their reps, Red Bull provides them free cartoons of Red Bull and promotes them to throw parties and incidents. This results as an efficient way to multiply the good phrase about Red Bull as it doesn't require a huge amount of money, it's quick and the student advocates offer trustworthiness to something contending in the beverage market. Another gain is that the university student also provides research data that are valuable for the business.

Red Bull in Nepal continues to be along the way creating market. People still need to be educated about the idea of energy drink. Another promotional strategy, as talked about previously, involved in educating consumers is the fact Red Bull recruits personnel that manages the people who want energy.

They also organise promotional situations involving university and college heading students with themes like sports, skill, part and music. Although this functions to get only a certain percentage of the market, this is all Red Bull depends on to talk to its target market.

Red Bull Nepal has implemented the same strategies as around the world. Although with most the populace 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 structured a few excitement generating events that resonates the brand individuality to its customers and they are as follows:

Red Bull BASE jump: This is a global advertising campaign where they hired an athlete to hop from the tallest building in the location to create a hype about the merchandise. In Nepal, this stunt was performed among various people in the existence of media. These were invited to see this outrageous function. The function was an enormous success in terms of the consistency the brand syndication.

Red Bull Free Style Soccer: This again was a global campaign where children from from coast to coast were selected on the bases with their footballing skills and were provided a system to flaunt their talent in front of the common public. This event was conducted in Kathmandu. The turnout of participants was sizeable low as compared to the turnout in other Red Bull functioning countries due to lack of reputation of the activity in Nepal.

Doodle Art Competition: Students from around the town were prompted to submit artwork to be preferred for exhibitions conducted at different universities. This is a smaller sized event but was effective as there were many students who liked the thought of rough sketching and doodles.

The Tour of Kenny Belaey: This free style biker was taken to different schools, universites and colleges 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 share. Down the road, few companies realised that there is an enormous potential market of these people who like to have energy beverages and after watching the successful Red Bull, some big companies like Pepsi and Shezan decided to enter into the vitality drink market with the part of stocks. One of the major factor that differentiates energy drinks is that they are costly than other beverages, juices, malt, carbohydrate beverages and others. Another factor which plays an important role is the flavour of the drink. Every energy drink in the market is wanting to compete with one another in every possible manner and so flavour might be the major factor which every drink tries to identify itself as taste is the most dominant change in energy beverages. The two major opponents of Red Bull in Nepal are Sting and Velocity.


Pepsi has created its energy drink in Nepal with the name of Sting. Sting positioned its marketing strategies based on the Nepalese culture. It applied the mass market tools of ATL and BTL to reach out to the utmost customers. Their ad of energizing and revitalizing by saying to be energy drink which includes the ultimate preference and extreme energy was pleasing and many people went and tried out Sting. Like Red Bull, which has sampling car Minuscule Cooper, Sting also unveiled its connection with hummer and used to transport drinks in hummer for sampling. The perspective of hummer was painted with Sting written all over it and was made attractive enough. Other adverts were included in Tv set and radio, and billboards. Furthermore, BTL activities were also run in several parts of the country where many sporty incidents were sponsored along with rock concerts.

Sting entered in to the market with a more sweet taste of energy drink. Fighting with Red Bull, they have introduced two flavours, the first is red in coloring and another is yellow. It is sweet in taste when compared with other energy beverages. The main central differentiating point is that Sting is competing on price with other energy beverages which is usually saturated in price. Sting was started with the price of 0. 67US$ per can. The quality was backed by the parent company Pepsi Co. So, good deal didn't have much impact on the grade of the product. Through low price they are capturing the mass market. They will be the cheapest energy drink with an excellent flavor. Sting is also found in a bottled-filled that costs 0. 44US$ per container. Sting thus tends to give attention to mass market and is also leading towards more of a drink drink somewhat than a power drink. Their presentation is also attractive and various.


Speed energy drink originates from the House of Shezan. After finding a good potential market for energy drinks Shezan also created its energy drink with the name of Quickness. Speed implemented BTL as well as ATL as it was publicized on billboards in different strategic positions of the united states, Tv set and radio adverts were being run on every potential channel. Free sampling, sponsoring concerts, sports activities' events and arranging some outdoor activities which involve people are parts of their advertising campaign. Therefore, Velocity is communicating with mass market to be able to attain out the utmost people of their target market.

Their presentation was different and eye-catching. The price of Speed was started from the price of US$ 1. 33 per can. This is not reduced unlike various other new energy beverages in the market. Speed is not fighting on price and so is keeping its price above which might attract clients about its quality and uniqueness. However the review is not the same as people after having it. It's been shown that folks 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 online marketing strategy in Nepal

The term 'marketing effectiveness is the quality of how marketers perform their marketing activities to be able to optimise their expenditures and achieve both short and long term goals (Marketing efficiency, Marketing expert understanding group 2009, https://www. cips. org/Documents/Resources/Knowledge%20Now/Mkt_Effective_V3%20200409. pdf, utilized on 25 Sept, 2012). Terminologies such as marketing return on investment (ROI) and go back on marketing investment ROMI tend to be related to marketing efficiency as they gauge the return on the investment made by marketers through different marketing functions.

Each marketing program must be measurable in terms of ROI and ROMI. In the short run, the target may be to create more revenue in conditions of sales statistics. However, ROMI in the long run build more brand acknowledgement. ROMI is an instrument to deliver more out of marketing programs. This can help the marketing team to conceptualise marketing programs, plan and budget them, converse their goals and aims, execute and manage, strategy and monitor, and when successful, get back to the well for more income to scale them for even more success. Thus, marketing success is required to be looked at not only in terms of ROI and ROMI, but also as a benchmark for future marketing programs.

The review of measuring the potency of marketing programs of Red Bull in Nepal may follow the three guidelines (Shape 5).

Figure 5: Variables used in calculating the effectiveness of marketing programs of Red Bull in Nepal.


Behaviour is one of the measuring factors of marketing effectiveness. It includes subfactors or the characteristics of your person or a customer. Attitudes, desire, personality, lifestyle are some intrinsic subfactors that determine the behavior of the person. In addition, the buying decision process also significantly plays a role in behaviour that is important in measuring the effectiveness of marketing program of Red Bull in Nepal.

Sales revenue

This focuses on the potency of marketing expenses in attaining short-term comes back. Program or advertising campaign specific models are usually put on measure the immediate impact or world wide web value of expected income to be derived from the investment (Pat LaPointe, Marketing by the Dashboard Light: How to get more insight, foresight and accountability from your marketing assets, 2005, ISBN: 1-56318-036-7). These inputs give valuable information on optimizing reference allocation in the framework of generating near-term results. To assess the Red Bull's marketing success, company approximated sales figures is extracted from particular marketing programs.

Brand equity

These metrics seek to monitor the development of the longer-term impact of marketing programs through the brand's perspective. This includes gauging current and prospective customer's perspectives of the brand through studies (Pat LaPointe 2005). This point of view is assessed in the brand's operation, personality, ease of access and value propositions (Pat LaPointe 2005). It is a fact that higher brand collateral, even though intangible in dynamics, tends to drive stock earnings and therefore the actual worthy of of the business. Therefore, it is essential to manage the brand equity components of every product and measure the performance of marketing on these elements.



Research approach

In the current research, all data were collected from primary sources. The primary data for this research was from a questionnaire that was completed by people in Kathmandu and from Skype-to-Skype interviews. Though data were primarily associated with principal sources, supplementary data such as information about Red Bull's occasions, market set ups were provided by respondents. Furthermore, the data related to energy beverages were found in publicized articles and literature.

Types of data

Quantitative data

In this research, amounts or percentages of the respondents or the amount of income (1United Claims Money, US$=90 Nepalese Rupees) or other quantitative data were calculated using numbers and percentages.

Qualitative data

The qualitative part (gender, behaviours, brand awareness and devotion) were determined using questionnaires or interviews.


The frame of reference for the study was limited by the Nepalese market for energy beverages which was aged above 18 and resides in the cities. Red Bull's marketplace category is known as to be the high-income groups of SEC A and 18-32 years age groups. Therefore, these kinds of people were considered during sampling.


For the existing research, the examples were restricted to the cities of Kathmandu only. Based on a purposive sampling method, 200 individuals who fall under the mark market category for Red Bull were picked. They were either interviewed via Skype-to-Skype talk or distributed questionnaires via Facebook and emails which were easy for data collection.

Measurement/Device selection

Data Collection: As already stated, extra data was accumulated via literature review that contains the previous studies conducted on the common strategies implemented by Red Bull internationally as well as locally. Most important data were gathered via interviews and questionnaires.

Tools for primary research: Most important research has been conducted through interviews and review questionnaires (open up concluded) have designed for assortment of data.


The factors which are incredibly important and playe an intrinsic part in derivation of the study results were:

Introduction of new/changed marketing strategies by Red Bull Nepal

Awareness of these strategies in the prospective market

Change in execution of globalized strategies in a local perspective

Competition with different brands of drinks

All these factors are those which impact the effectiveness of Red Bull's unconventional marketing strategies in the Nepalese market.

Data analysis

Diagrams (animation, SmartArt), graphs (Bar graphs and Pie Charts) and tables (normal and 2X2 or 3X2 contingency) were well prepared using Microsoft Office, and Microsoft Excel. Data were offered in ratio (%) that was computed by dividing by the full total numbers of respondents in each question. Data in contingency desk were analysed to determine the hypothesis whether there is factor among parameters, for example, age-groups and Red Bull target market, gender and Red Bull marketplace, marital status and Red Bull marketplace and income and Red Bull target market. Depending on the types of data, these variations were analysed by different Chi-square test, for example, normal Chi-square test, Chi-square test with Yate's modification, and Fisher's exact test by GraphPad Prism softwares (Prism 5 for House windows Version 5. 00, March 7, 2007). Data were considered to be significant if the p worth were less than 0. 05 at 95% assurance interval.

Consumer profile analysis

The consumer profile research was conducted on the basis of the gender, age-groups (years), marital position and income (US$ monthly).

Promotional occasions and their effectiveness

As discussed before, Red Bull in Nepal promotes themselves only through BTL activities. These BTL activities include promotional situations and buzz generating stunts that are targeted usually to the young ones of the united states. This strategy is the main target portion for Red Bull not only in Nepal but also around the world. These promotional occasions are usually themed on sports, celebrations, youth related occurrences, art exhibitions, young ones training seminars, workshops, concerts, gigs and those occurrences that are for the junior and the advertising industry. The next parts of this chapter will give a clear analysis of the success rate of Red Bull's promotional incidents in terms of relevance to the target market, sales generated from the incidents 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 rate of recurrence of communication with their target consumers. A whole lot of interesting reactions received but one of the most frequent one was that Red Bull should start ATL marketing that involves the use of conventional multimedia like television, print out, and radio. Other reactions include the huge application of the BTL, for example, campaigns of Red Bull can be organised in sports activities such as crickets and sports which are gaining popularity in Nepalese youths.


Energy drink consumer analysis

In the first area of the thesis, energy drink consumer evaluation was conducted. Oddly enough, a huge potential market for the energy beverages was found to exist in Nepal because proportionately higher figures of people would like to consume energy drinks. This shows that this is an excellent sign and worthwhile for just about any potential organisation to invest in the 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 many of these energy drinks which have been on the basis of the highest % of the people were both known to this brand and preferred this brand for drinking. That is also attributed to the international idea that Red Bull is the first successful energy drink with a global success and is also the pioneer in the energy drink market (Buchhloz, 2005). Though Red Bull succeeded in creating a dominance position over Nepalese energy drink market, Sting, a new brand, can't be ignored in future because this brand seems to be a close competitor of Red Bull in today's circumstance. Therefore, marketing a power drink or practical drink for example, Red Bull is the most challenging process due to growing competitors (Richey 2001). In addition, consumers are being much more likely the price and promotion-sensitive over enough time because there is a lot of information and substitute choice available to them (Mela, Gupta & Lehman, 1997). However, Mateschitz, who owns Red Bull feels is not concerned about the competitive market because if one really enjoys the merchandise, then she or he really wants to try out the original one that is the foremost in the market and not a copied version (Johnson 2002). Additionally it is supported by the fact that the majority of the power drink brands remain on the road of establishment whereas Red Bull has already been an established brand (Riedel 2003).

Factors that affect potential marketplace of Red Bull in Nepal

While Red Bull has dominantly considered Nepalese energy drink consumers in Nepal, there are several factors that have an effect on potential marketplace of this drink. Among these factors is the gender of the consumer. Nepal is culturally a distinctive country where children have equal protection under the law legally, however ladies rarely go outside for example in concerts, music, or any type of public situations. Contrasting scenarios are found in the framework of young boys in Nepal especially in athletics and athletics where children are more involved than girls. That is why Red Bull is effortlessly preferred more by guys than by females. Likewise, this drink is a type of junior drink which is mostly consumed by folks of age ranges 18-25 years old. These groups of people are mostly involved outside the homes because they're school- or university-goers and are more likely involved in functions, music, concert and public events. They have many friends outside and revel in taking various beverages to meet their thirst by energising their body via ingesting energy components, for example Red Bull. People above this age group, though beyond your home, are mainly responsible to their lives and do careers for their individuals and are less inclined to entail in those situations. Therefore, they are simply not as likely found drinking energy drink. Within this context, marital position may also immediately affect the Red Bull taking in habit. Married people may become more accountable than unmarried in the context of keeping inside homes, therefore, even psychologically married people think they shouldn't consume energy drink because these kinds of energising drinks are not for them. On the other hand, unmarried or sole persons believe they are liberty to decide anything and to drink anything. This can be analysed by an undeniable fact that when a person begins growing up, he/she gets more willing towards beverages like tea and espresso for refreshing the mind and mainly prefers eating energy drink for body and mind revitalization. However, it is difficult to anticipate the cause of this differentiation as it might rely upon personal lifestyle and personal behaviour and characteristics.

Not only love-making, age group and marital position are likely involved in determining use of Red Bull in Nepal, but also household or personal income plays a crucial role in this context. The current research suggests that the Red Bull brand is a glass or two for SEC A and B kind of people. In other words, it is just a category for the high income group because not all individuals are able to afford an energy drink. A 250mL Red Bull can costs US$ 0. 56 that will be expensive for the indegent people who have low income and do not have money to complete their own basic needs. Therefore, Red Bull is a glass or two for the rich people.

Red Bull brand in customer loyalty

Red Bull brand is also able to keep customer satisfaction and customer commitment though various replies were obtained in the current research. These two points are the important issues to get a great competitive gain for an enterprise (Reichheld 1993). Therefore, calculating customer loyalty to Red Bull in a powerful way is important running a business is a key question of the existing thesis (Reichheld 1993). Therefore, measuring customer devotion to Red Bull in a highly effective way is important in business is an integral question of the existing thesis (Reichheld 1993). It's been measured by different facets such as Red Bull brand recognized quality, USPs or uniqueness of the brand, identification and positioning of the brand, Red Bull consumer's notion about future purchase or retention and Red Bull non-consumer's notion about future purchase following this research. Interestingly, Red Bull has created the required image and understanding about itself in the heads of the target 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 focused on energy and preference or energy, taste and packaging and this company with a great or good brand in the market. The product is majorly responsible for the energy revitalization of your body and mind. The tastes of the Red Bull appears to be different from the usual beverage beverages even from the newly released energy drink, Sting that includes a sweeter style. Taurine is one of its key things that distinct Red Bull from other energy drinks. Red Bull includes unique product packaging with two Red Bulls colliding head to head and the label type of 'Red Bull Gives You Wings' and its own functionality of being an energy drink is of interest enough. Unlike a typical traditional soft drink, it's not packed in a 12-ounce can, nor sold in a container. Instead, it used an 8. 3-ounce slim can. Therefore, energy and preference production and product packaging will be the factors that determine the uniqueness of Red Bull one of the consumers and keep on customer commitment among these populations in Nepal. Notably, many reactions regarding uniqueness of the brand, to no surprise, were "High Price". This can be an important issue of customer loyalty. The existing market is price-sensitive and customers keep looking for cheaper alternatives and alternative to fulfil needs. The identical notion may be employed for those respondents who thought Red Bull as a 'high price' beverages leading having less future retention on the drink.

While customer commitment comes in brain 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 research', 'sports activities drink', 'high profile drink', 'high priced drink', 'music drink', 'party drink' and 'concert drink'. This means that these perceptions play a great role in starting, participating, and retention of the drink among students, youths, sportsmen, and customers who feel themselves energetic and visible in the world.

The customer devotion was also measured by the consumer's and non-consumer's perceptions about future purchase of Red Bull. While plenty of Red Bull consumers enumerated that they would keep on purchasing this drink in future, still many consumers were either not sure about purchasing or not desired to acquire again. This indicates that Red Bull individuals are not completely satisfied related to the refreshments and most of them do not want to land on customer commitment. Just as, in this research half the populace who never drank Red Bull wanted to be a new customer of this drink. This shows that Nepalese customers want to see new energy drink in future.

Effectiveness of Red Bull's marketing strategy in customer loyalty in Nepal

Next, the potency of Red Bull's online marketing strategy in customer loyalty in Nepal was analysed. Red Bull's marketing promotions are unconventional and BTL however the competitors are reaching out the mass market but using both means of marketing normal as well as unconventional marketing strategies to be able to reach away to the maximum market and capture better market share (Thomas et al. 2008). The brand Red Bull is being perceived differently in several cultural 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 means of measuring performance in customer commitment. Though majority of respondents were unaware of experiencing free sampling, Red Bull appears to be not fully successful in sampling enough people. This may be due to inability of the Red Bull brand in proper sample selection that can include persons with identified gender, age-groups, marital status and monthly income. In addition, the free Red Bull sampling strategy may not been completely reliable strategy in Nepalese markets because majority of folks did not purchase even after striving free samples. This means that that people are though associated with free sampling Red Bull, they could take it for awarded and and look at it as an opportunity for free refreshments rather than deploying it with the objective of experiencing its energy. Therefore, it could be clearly stated that this method of unconventional marketing is not generating the desired final result. This is depicted from the bring about which majority of the respondents are in view of unsuccessful strategy regarding the sampling technique.

While sampling approach might not be effective in customer loyalty regarding Red Bull, the role of promotional happenings in Red Bull marketing was analysed. It's been discovered that Red Bull is not attaining full success rates to connect to its market about the items these were doing. In addition, it demonstrates certainly there's a problem with the way these are promoting themselves. If indeed they impose much emphasis on promoting themselves through occurrences, there must be sufficient amount of promotion for these situations so that folks at least find out about what is going on and can go and experience these occurrences. Among many campaigns, Red Bull, Kenny Balaey Head to of Nepal, Red Bull Air Competition Get together, Red Bull Doodle Fine art Competition, Red Bull Road Style Basketball, Red Bull Tum Tum Pa, musical concerts and gigs, cricket, basketball and volleyball, exhibitions and concerts appear to be well-liked by people who took part in Red Bull promotions. Even of these campaigns, majority of men and women didn't buy Red Bull indicating these incidents are not successful in marketing strategy of this drink. Therefore, alternate mechanisms of BTL activities can be organised to improve customer loyalty. For example, popular stars, like the young and hot theatre actors or stars or models, or sportsmen should be engaged to represent the brand ambassador as a symbol of the young sensation for the official endorsement of Red Bull. Furthermore, promotions of Red Bull can be organised in activities such as crickets and soccer which are gaining popularity in Nepalese youths. Finall

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