The Phenomenon Of Globalization Big Brands Marketing Essay

The Phenomenon Of Globalization Big Brands market attemptINTRODUCTIONAll hand most blades well-nigh the human race argon straight off shifting towards the phenomenon of orbicularization. A mathematical product is no more confined to geographical boundaries. Globalisation calls for global market strategies being apply nigh the globe to resonate the smears identity and its image to gull nodes. A synonymous selling dodge is cost- gear upive and this is the scheme applied by many bouffant companies around the reality. However, experts too say that this is not al government agencys a novel system because consumer behaviour around the world varies from culture to culture and from demesne to nation. For instance, an American consumer leave react and respond differently as compargond to a Nepalese consumer. Thus, while implementing global merchandising strategies, a wiser move would be to tweak it, customise it, and to relate it with the local anesthetic consumer b ehaviour. Similarly, fewer international big call ups in Nepal stupefy only implemented their global strategies and are not probably exploiting the huge potential they occupy. unmatchable much(prenominal) courting is that of blushful hoot in Nepal. Since the entrance of this drink in Nepal, it has by well enough to survive in the Nepalese market as compared to some of the other zip fastener drink stakes. blushful cook has implemented its global trade strategy such as un stately rule with tabu really evaluating its effects on the node subjection in Nepal. Thus, the hesitation motionlessness re of imports whether the node liegety is fermentd by cerise tinkers damn in Nepal that uses global unorthodox merchandising strategies.Statement of problem tearing diddlysquats merchandise strategy around the world is to use un received strategies that refer guerilla impedes and roll generating simulated military operation to overtake to their guests. Gueri lla market is ground on below-the-line (BTL) activities where bell ringer recall is created through until nowts and stunts that are mostly tie in to sports (X-games), parties, adventure and music. The sports cherry-red hog supports are ones that are not yearning in Nepal. economy one and X-games are not really popular. Similarly, rose-cheeked grunter does a lot of promotional as yetts at discotheque to invoke its brand. But this is not applicable in Nepalese situation because we dont have any such type of place. This is where the problem lies for flushed jack in Nepal. Like e very(prenominal)where, the strategy dep finiss on unconventional market which is not applicable and does not relate to the Nepalese culture and tradition. For example, how many the great unwashed in Nepal would be interested in free behavior football? Hence, if they contri merelye a sports event base on free style football, still many people who are unrelated to these events ordain not go through joining at that place. Also, the thought process of X-games that involve moto (motorcycle race), skiing (ski big air, skier cross), snowboarding, snowmobile, Inline skating, skateboarding, and car racing are not played in Nepal. Thus, any event based on these games would be absolutely useless here. We do not have well conductd night clubs and discotheques, as already described. These areas are the better places where most of florid diddlyshits promotions and selling would take place around the world. blood-red dump withal conducts a lot of its adventurous events around the world in deserts and mountainous areas. In these contexts, security is the prime issue. one and only(a) would also argue blood-red dogshit should use above-the-line (ATL) methods of promotions (e.g. television, print and radio) to communicate to a bear-sizedr audience. The bottomline here is that rubor falsify Nepal is not considering the local culture and consumer behavior and is blindly i mplementing its global marketing strategies to communicate with its nodes. That is why the current research has been done to find bulge the effectiveness of expiration Bulls global unconventional marketing strategy, for example BTL method, in customer loyalty in Nepal.Aim and ObjectivesAimThe current research was conducted to find out the effectiveness of blood-red Bulls global unconventional marketing strategy (e.g. BTL strategy) in customer loyalty in Nepal.ObjectivesTo analyse the situation of consumers in postcode drinkDo they consume energy drink?Are they sensible of energy drinks available in markets?Do they prefer any energy drinks?To analyse the factors that affect potential target market of red Bull in Nepal.Do g eat uper, age-groups, marital status and income of consumers have any effect on ruddy Bull market in Nepal?Analysis of the fierce Bull brand in customer loyaltyWhat consumers think astir(predicate) vehement Bull quality?Why consumers think florid Bull was ludicrous among drinks?What consumers think near Red Bull brand? exit Red Bull consumers keep on purchasing it on sequence to come tense?Will Red Bull non-consumers consider purchasing it on future day?To analyse the effectiveness of Red Bulls marketing strategy in customer loyalty in Nepal?Will sampling affect customer loyalty?Will promotion events affect customer loyalty?Any proposition in enhancing customer loyalty?Justification of the studyAt the end of this study, our research will help understand the effectiveness of Red Bulls global unconventional marketing strategy (e.g. BTL strategy) in customer loyalty in Nepal. In addition, this study will be serious to analyse the Red Bull brand in customer loyalty.A detailed cogitation would be furnishd regarding consumer behavior, appreciations, attitudes, reactions, lifestyles, and characteristics which would help us prepare an in-depth analysis on our research objectives. An exciting prospect of this project would be to find out to what extremity Red Bull possesses the ability to reach markets and reach consumers as use unconventional marketing strategies limits their reach and opportunities. Lastly, the study will generate recommendations that will be crucial in Red Bull marketing strategy in future.Scope of the studyThe study comprises of conducting a research in different parts of Kathmandu targeting individuals and groups (principally university and college students, celebrities and media related individuals) falling into our target criteria in order to find out the effectiveness of Red Bulls unconventional marketing in Nepal. The research also involves interviews with industry experts to gain their viewpoints and comments on the librate which was important to understand virtually Red Bull markets in this country.CHAPTER-2lit REVIEWUnconventional marketingIn the corporate world, the enclosure marketing simply refers to activities carried out by organizations or individuals in order to gen erate awareness capture interest and boost gross revenue. There are in the main dickens strategies to generate marketing, for example conventional and unconventional marketing. The first, conventional marketing, a tralatitious marketing technique, mainly refers to the use of media or ATL activities for the purpose of promoting the brand. These conventional methods comprise of television advertisements, print advertisements in newspapers, magazines, broadcasts on radios, billboards or hoardings and other sources of media. Unlike conventional marketing, the unconventional marketing refers to all those forms of marketing that contend lower budgets and more time, imagination, creativity and a lot of energy sort of a than monetary support. Compared to conventional marketing that lacks an interaction between the organization and the end user, unconventional strategy is more interactive with customers and gets them really engaged with the drill itself. Examples involve public interc eptions, random leapaways or free sampling, and publi urban center stunt (PR).Unconventional marketing is synonymously used as guerrilla marketing, bombilate marketing, public relation tactics, viral marketing, social media, BTL in various literatures. This marketing campaign is principally interactive with consumers who are unforeseenly targeted in unexpected places. Therefore, this campaign is aimed at generating seethe and viral marketing via a rum, prosecute and thought-provoking ideology (Romane Knight, The Best Guerrilla Marketing Strategies, http//marketingnotesja.hubpages.com/hub/The-Best-Guerrilla-Marketing-Strategies (Blog), accessed on 21 September 2012).While both forms of marketing conclusion in change magnitude awareness, persuasion and program line of the brand, unconventional marketing helps build a bond between the brand and the customer. The Exforsys Inc. website (2011) states that unconventional marketing is an experiential marketing which appeals to th e emotions. The customer develops an aflame attachment to a brand, product, person, or idea. Therefore, unconventional marketing undischargedly enhance the customer interaction in order to gain of import insights and consequently enhance loyalty. customer loyaltyWhen a company or a product line organisation is opened, it is aimed to generate and retain a loyal customer who would continuously attach with the company in the context of its long- tryout cost-effective business. The ideology of retaining a long marge relationship with brand loyal, i.e. the customer who has the continuous requirement of the same product is called customer loyalty. clients will leave the company or organisation if it is not aimed at curomer loyalty. dissimilar explanations have been found regarding customer loyalty in literatures. Sivadas and Baker-Prewitt (2000) said at that place is an increasing recognition that the ultimate objective of customer satisfaction step should be customer loyalty. An ton (1996) described satisfaction is positively associated with repurchase intentions, likelihood of recommending a product or service, loyalty and profitability. In 1997, Guiltinan, Paul and madden (1997) said that satisfied customers are more likely to be double (and even make up loyal) customers (Guiltinan, Paul and Madden 1997). While these statements indicate that customer satisfaction is one of the factors of customer loyalty, customer dissatisfaction does not always aim to a reduction in loyalty. For example, even dissatisfied, some customers whitethorn be loyal because they dont 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 may play in customer loyalty. Sometimes, customers can also feel a sense of loyalty and emotional attachment to a particular brand (Fournier 1998). However, the relationship of the brand with a customer is a dickens-way process in which it is not implicated how a customer feels to a particular brand, and this association is just preference or proclivity (Peppers and Rogers 2004).Customer AcquisitionThe assurance phaseCustomer DevelopmentThe education bonding phaseCustomer CommitmentThe sales phaseCustomer RetentionThe continuation activity phaseCustomer Loyalty CycleSatisfactionSatisfactionSatisfactionSatisfactionS2S1S3S4 come in 1 Customer Loyalty Cycle as a phone line Model used by the Scuba Schools International (SSI) Dive Centres. They select students and convert them into loyal customers. S1 spirit 1, S2 Step 2, S3 Step 3 and S4 Step 4 (Adapted from http//divessi-indo.com/ accomplishment/systems.php, accessed on 24 September, 2012).Finally, price may be one of the determining factors of customer loyalty (Fisher 2001). For example, good pricing is an important factor in encouraging customer loyalty (Abratt and Russell 1999). In contrast, if a customer is loyal to a brand, he/she will not boot of future price ch anges (Clark et al. 1995) indicating price may not play a role in customer loyalty.While customer loyalty depends on different factors, the process of customer loyalty is not an easy childbed in business. The process of customer loyalty can be discoverd in 4 steps (Figure 1). The first step is called the assurance phase in which customer is acquired via different marketing or business strategy. Then, customers are make satisfied and then, they are given different trainings and education programs to keep them bonded. This is the education and bonding phase and is the second step of customer loyalty. Again, the customers are do satisfied and customers make commitment in the sales phase or third phase. The satisfaction to customers is continued and customers will stick to the same brand or the same company in the continuation and activity phase. This is quite important to keep the customers retentiveness. The cycle is repeated followed by customer satisfaction. Therefore, customer satisfaction may be one of the important factors in customer loyalty (Figure 1).Measuring marketing effectivenessCompanies spend billions of dollars one-yearly on marketing. Because of increasingly competitive markets, firms strive to produce higher and higher profits. This leads to calls for justifying the marketing expenditures ( rusty et al 2004). Powell (2002) states that marketing effectiveness is the quality of how marketers perform their marketing activities in order to optimize their expenditures and achieve both short and long term goals. The difference between marketing effectiveness and efficiency is explained by Rust et.al (2004) as they state for example, that price promotions may be efficient in throwing short-term revenues and cash flows but ineffective in the long officiate if it is destroying profitability and brand faithfulness in the long run.Figure 2 The Chain of Marketing Productivity (Adapted from Journal of Marketing 2004, vol. 68, pp. 76-89).The Chain of Marketing Productivity is a conceptual context that can be utilised for evaluating marketing effectiveness (Figure 2). This model explains the effects of certain marketing actions of a firm on its position and standing in the market. Rust et al (2004) believe that every firm moldiness have a business model which is used to track the effectiveness of marketing expenditures in influencing the knowledge, beliefs and emotions of the customers that last leads to purchase behaviours. They stress on the fact that marketing efforts such as advertising and product improvements help in building long term assets such as brand equity. These long term assets are leveraged to deliver profitability in the short run. Customer thoughts, beliefs and feelings that lead to purchase behaviours are usually measured through non-financial measures such as attitudes and behavioural intentions. These non-financial measures buzz off financial movement measures like sales, profits and stock values in the sh ort and long runs (Rust et al 2004).BehavioursHoyer and Macinnis (2009) states that consumer behaviour reflects the sum of all consumer decisions from acquisition to disposition of goods, services and experiences. Behaviour of the consumers is a dynamic process reflecting acquisition, routine and disposition activities. The questions of what, why, how, when and how much to acquire, use and dispose a particular pass can have a major impact on how strategies for marketing and communications are developed. In order to produce, communicate and provide sub due(p) goods and services, marketers need rich insights on consumer behaviours and what they value (Hoyer Macinnis, 2009).Marketing efforts such as communications and promotions have a long term impact on consumer behaviour. In recent years, consumers have become more price- and promotion-sensitive over the time because in that respect is a lot of information and choice available to them. This is why more and more companies are a ttempting to influence consumer behaviours through marketing efforts such as promotions and communications (Mela, Gupta Lehman, 1997).Sales RevenueSales revenue offsprings pool are the most objective measures of marketing effectiveness. Financial benefits, such as sales, from particular marketing efforts are assessed in numerous ways. One traditional method is the Return on Investment (ROI) which is the relative return that is obtained from the mandatory expenditure. Financial impacts like these affect the firms financial position in hurt of profit and cash flow. However, these methods are controversial and ineffective if relied upon solely. This is because most of marketing efforts are played out in the long run thither effects cannot be observed in the short run, while methods such as ROI only assess short term effectiveness of marketing efforts. A better usage of such methods must incorporate future cash flows so as to predict and determine the long run marketing effectivenes s (Rust et al 2004).Brand EquityBrand equity is a relatively new concept which has developed from the past two decades as core marketing concept. It suggests that brand value can be derived from the discounted cash flows received from the sale of products/services as a result of associations of the brand with those products/services (Rust et al 2004). Rust et al. (2004) further cite Tybout and carpenter on the enormous brand equity of Home Depot which was the US$84 billion in 1999. This shows that even though thither may be a short-term divide between ROI and marketing efforts, it may not be completely ineffective due long stable value offered through brand equity. Elements of brand equity such as customer lifetime value, brand awareness, associations and recognition can be located by recognizing prevailing perceptions regarding the brand and operative as well as emotional value propositions that the brand provides (Dunn Halsall, 2009).The impact on customers and resultant develop ments in valuable assets such as brand and customer equity influence a brands market share and revenue, hence, enhancing its competitive position in the market. dour term benefits of these assets can increase customer responsiveness to brands and its extensions, willingness to pay premiums, referrals, change magnitude usage rates, lower after sales support costs, customer retention and loyalty. All of these factors reflect a larger market share to be enjoyed by the brand with guaranteed greater profitability (Rust et al 2004). There is a wealth of means to measure market effectiveness. Methods to evaluate marketing tactics and impact of marketing expenditures provide the necessary tools to affect the practice of focal point and to bring further credibility to marketers. From an accounting standpoint, marketing productivity must be categorized into modifications in financial assets as well as intangible assets such as brand equity (Rust et al 2004).Red Bull-HistoryRed Bull is a po pular energy drink that had been make since the early 1962 by the TC Pharmaceutical Co., in Thailand by Chaleo Yoovidhya. The name of the company was subsequently changed into Red Bull Beverage Co. Ltd. It was introduced into the Europe by the Austrian guy Dietrich Mateschitz, who found out that one of the Thai energy drink called Krating Daeng (Thai Red Bull) was good at soothing the Jetlag. He in the long run realized that the Asia has a wide potential market for Energy Drinks and there was no such kind of product available in the tungsten or the Europe. In 1984, he established an Austrian company called Red Bull GmbH that sold about a million cans in 1987. accordingly the sale 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 share and has annual sales of billion dollars (Data M onitor, Red Bull GmbH, 2004).Red Bull-BrandingWhen introduced to the markets of the world, very few believed in the successful potentiality of Red Bull as a brand and product. The mere concept of energy drink was brought into inception by Red Bull and most believed that such a confined product category of energy drink was not required when you had other options such as tea or coffee as energy boosters. Beardwood (2010) remarked that Red Bull magnate be a slightly safer alternative to alcohol. Although there are negative assumptions related to Red Bull brand, it has now become the leading energy drink manufacturer around the world. Regani in 2006 believes that the consciousness reason of the success of Red Bull in marketing is due to its audacity to think out of the box and its trend setters rather than pursual (Regani (2006).Red Bull-The brandWhile considering Red Bull as a brand, it reflects energy, enthusiasm, active life, trend setters, adventurous and everything that is abou t youth and its whereabouts. When a person is found to consuming Red Bull, the image created in mind is a cool and trendy one and that is the kind of positioning they have achieved as a brand. All brand music directors at Red Bull fight back that the positioning of Red Bull will never change no matter what the situation is, as that is what Red Bull, as a brand has thrived on. Red Bull is more about the brand than the product itself. accord to Gschwandtner (2004), it is not Red Bulls sales strategy that helps it sell like hot cakes around the world, but it is its innovative branding strategy that has helped it become the number one energy drink name of the world.Red Bull-Marketing strategy across the worldRed Bull as a brand is unmanageable in nature and it certainly proves the kind of unconventional marketing strategy it has chosen. They absolutely refuse to advertise and use some of the conventional modes of promotions such as billboards, banner advertisements, taxicab hologra ms and blimp in a way that many brands would opt to do. Even their TV spots are very different from others. Played only on niche channels, they are save sketches of a mysterious Austrian artiest that tries to amuse the audience more rather than educating them. They completely pursue unconventional marketing techniques to build the brand that majorly entangles buzz generating tactics, event-based marketing, hiring brand ambassadors, supporting student projects, free sampling and others.Rather than outlet on mass, Red Bull targets underground style with BTL activities. It aims to produce viral buzz by paying college going students, disc jockey (DJ)s and newfangledish opinion leaders to host events and parties where the drink can be served. These are the sort of parties Red Bull encourages its ambassador to lead or organise as it aims to associate its brand with such events. Therefore, strong Red Bull branding can be observed at club, caf and discotheque where young crowds are mos tly present.Red Bull does not spend on advertising and flashy celebrity patronizement. They hire hip youngsters, students and unconventional sports athletes to endorse their brand and promote it. These not only cost less but are also more effective as they are at hand(predicate) to the target market and know the required consumer behaviors. Besides that Red Bull organize and sponsor extreme sports events like the X-games and freestyle football which against complements their strategy of unconventional marketing.CampaignsTheir campaigns are mostly based on organizing events that are associated with the brand. These events usually include unconventional sports, parties, student based events and exhibitions. They use such events to heavy brand their product using all kinds of aesthetics and tools. Plus, they also sample at these events to generate product trial and to let their target consumer experience the functionality of Red Bull. Their most recent campaign was the world tour of free style biking champion Kenny Belaey who was taken to all Red Bull run countries where he performed stunts at different schools, colleges and universities. This event was used to build an impression for Red Bull as an adventurous, outrageous and unique brand. sample diffusion was also conducted at all stunt venues. Before the tour of Kenny Belaey, Red Bull unionized the Free Style footballing competition all around the world where youngsters flaunted some cheeky skills to win the major prize of going to the World cupful in South Africa.Publicity stunt/buzz generating tacticsThe main spring of Red Bull behind using unconventional and unique marketing strategies is to generate or create people talking about them that gradually support to promote them. They aim to create a buzz through their events that is why they do not prefer using the conventional modes of communication (e.g. TV, radio and print media). Red Bull aims to create a viral fever through its events where people a re amazed by the activities they perform and talk about it. The message spreads like wild molest that is the thing each Red Bull brand manager or brand ambassador targets in all its operating countries. Main motive is to do something so outrageous and unique, that people keep talking about it. Therefore, the brand is both getting the required mileage and developing a customer base for itself.A small example of how Red Bull tried to generate a buzz was the high jump that their leased athlete attempted from the tallest buildings in all the Red Bull operating countries. Media was invited to the stunt and heavy Red Bull branding was exhibited. There was great hype and anticipation because of such an outrageous attempt being do by a person. People kept talking about it and there was a certain buzz about this stunt. The venues for the stunt were heavily mark with Red Bull aesthetics to demonstrate that it is Red Bull who owns the event. The stunts were successfully completed in all Re d Bull operating countries with the media heavily publishing it on TV, print and radio. The amazing factor was achieved as people were talking about it and this was exactly what Red Bull wanted to achieve with this stunt. In this context, it might not be selling the product through these stunts but it is actually developing the brand as an adventurous and unique one and also that it is creating a buzz about Red Bull which is basically the target and aim of the Red Bull brand manager or ambassador at the closing of the event.EndorsementsRed Bull does not really rely on celebrity endorsement as that is not its style. What it does is acquiring sports teams around the world and supporting them as its official sponsor. The undermentioned endorsements are currently made by this brandRed Bull is the official sponsor of all X-games conducted around the world. This endorsement complements their marketing strategy of being unconventional. All venues and player dresses are Red Bull brand and heavy sampling is done at these events.Red Bull has acquired two football teams around the world. One plays in the Major League soccer in the joined States of America and is known as the New York Red Bulls (http//www.newyorkredbulls.com/), accessed on 25 September, 2012). The other one is in the Austrian football League and is known as Red Bull Salzburg (http//www.austria-salzburg.at/, accessed on 25 September, 2012). Both the teams have their kits mark with Red Bull. Red Bull Salzburg even have their stadium named after Red Bull and is called the Red Bull Arena. One can easily notice the heavy branding of Red Bull at the stadium. This is an effective plan that involves the heavy media coverage of football all over the world.Red Bull owns a Formula One team which has been doing incredibly well since the acquisition took place (http//www.formula1.com/news/headlines/2010/5/10796.html, accessed on 25 September, 2012). The car and the drivers dress are completely branded with Red Bull logos. This is again a very effective because Formula One racing gets a lot of coverage around the world and gives Red Bull the required mileage in its target audience.Red Bull endorses the major stars in unconventional sports and gaming. A stand out example is Kenny Belaey who has been supported by Red Bull throughout his go as a free style biker (http//www.tribalzine.com/?Kenny-Belaey-after-the-success-of, accessed on 25 September, 2012).Sampling through brand ambassadorsAnother strategy of the marketing by Red Bull is the contract with brand ambassadors at schools, colleges and universities to represent the brand at social events and hangouts. These brand ambassadors are given cartoon/s of Red Bull to sample at parties and spots where Red Bull might be needed. These situations occur when students are in mental or physiologic stress due to various reasons, for examples sports events or time of academic examinations. The idea is to hire cool college going students to represent th e brand amongst its intended target market.Another promotional strategy is involved in educating consumers. Red Bull organises travel in by its staffs in a car that carries large cans of Red Bull. The Red Bull staffs target those individuals who lack energy and wishes of energy. Then, the staffs give a free can of Red Bull to these people. This strategy seems to be successful during the introduction of Red Bull into public.Red Bull-Establishment in Nepal and expressionRed Bull was finally launched in Nepal in 2002 and since it has been a leader in the market with relatively lesser competition. Red Bull was brought to Nepal by S.M. Chawla Company that only handled distribution of Red Bull initially. When the headquarters in Dubai assessed the sales in Nepal, they decided to officially start their operations in an office of their own. In 2004, Red Bull Nepal was established with three functional discussion sections namely Marketing, Sales and Finance. Red Bull is currently being ope rated in Kathmandu with the Asian head office being in the United Arab Emirates (Figure 3). It has set up its premises in all three cities where distribution and marketing operations are executed. The current organizational anatomical structure of Red Bull Nepal is shown in Figure 3.Figure 3 The current organizational structure of Red Bull Nepal.MarketingThe current organizational structure of Red Bull Nepal is governed by Asian Head Office. This office in the first place plans and executes BTL promotional activities for Red Bull. Understanding the consumer need and coming up with activities to cope with them is one of their most important tasks. Pre- and Post- event communications of all promotional activities are also taken care of by this office. Each city has one marketing head and three Student Brand Managers chartered from popular universities to work as a team. Marketing department also handles communication via social media like Facebook and others.Sports and EventsThis is a apply team that plans around the year activities based on sports and other functional events. Red Bull conducts all its marketing through guerilla style and that is why this department has its special importance. They primarily plan and execute accompanied by collaborationism with the marketing department.FinanceFinance Department consists of a precise and dedicated full-time team member. The finance team distributes the budget for executing the marketing activities. This department also looks after the wage control system. The team also maintains and keeps track record of monthly sales. This department submits the monthly reports of sales performance to the head office in Dubai.CommunicationThis department handles all the pre- and post-event communication of Red Bull events and activities through all media that include TV, print, radio and social media. This strategy is similar to the idea of communication in unconventional marketing of Red Bull brand to its audience. This department actively stays in touch with people in the media to disseminate news about everything that Red Bull is doing not just in Nepal but also around the world.SalesSince Red Bull