Red Lobster Case Study Essay

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Case Study – Red Lobster

Background Red Lobster was originally founded in 1968 and gained tremendous popularity since at the time, mainstream Americans ate very little seafood, finding it hard to get, difficult to cook at home, and expensive. Red Lobster made seafood accessible, approachable, and affordable for just about everybody. Even with their instant success, Red Lobster by 2004 was becoming out of date and out of touch with today’s customer. Kim Lopdrup took over as president in 2004, initiating an aggressive turnaround program and a three-phased plan to save Red Lobster. In the following case study analysis our team has evaluated Red Lobster throughout the innovation.
Who were Red Lobsters target customers pre-2004? Prior
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At 43%, Red Lobster’s market share was the highest among casual dining seafood.
What would Red Lobster’s pre-2004 positioning statement look like? For mainstream America, Red Lobster has the most fresh and affordable entrées among all seafood specialists because most Americans, especially in non-coastal regions, ate very little seafood, finding it hard to get, difficult to cook, and expensive.
What was Lopdrup’s positioning strategy when he took over in 2004? What did he change? When Lopdrup took over Red Lobster in 2004, the chain was struggling and in desperate need of a new concept to spark interest in the restaurant again. Lopdrup introduced an aggressive turnaround program that would reposition the restaurant for the future. Red Lobster became focused around the “freshness” of their seafood products. This changed Red Lobster’s position from frozen to fresh which was very important to customers. Lopdrup initiated this well-developed reposition in several different ways that all worked together to help boost customer satisfaction. Consumers viewed “freshness” as still being able to taste life in their seafood; in response to this, Red Lobster hired experienced culinary chefs at each location. Red Lobster also created a new menu around “freshness” including more fresh fish, and a de-emphasized emphasis on fried foods. The menu also contained a new portion called

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