Hoops, Lindsay, Rosati
Maj. Tyabji, Mgt. 375 Red Lobster Case Study
1 May 2013
Red Lobster was started in 1968 with one location in Orlando, FL. Now it has grown to one of the largest restaurant chains in the nation with 690 locations in all major cities. When Red Lobster was a young chain in the 1980s, it had a reputation for high quality seafood away from the water. In recent years, the company has struggled with its image. In a 2004 survey, participants questioned the “quality of the seafood” and the “taste/preparation of the seafood” (exhibit 6). Red Lobster needed to change how they are perceived by the public. Red Lobster should continue to overhaul their image, by completely remodeling the inside and outside of their
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It is clear that Red Lobster should target these individuals because per customer Experientials spend around $52 more than the current Indulgent targets per year (Exhibit 15). In addition, by targeting these individuals and making small tweaks to the restaurants as they are renovated, Eclectics (the second highest grossing average spent per year per customer) may also be drawn to the new changes because of the similarities between these two parties. This is a perfect example of market segmentation without having to radically change the scope of the company from the target Experiential group.
With 690 locations nationwide, Red Lobster can be found in most major cities. Even though many of the locations are close to water, there are still hundreds of locations in landlocked states (Exhibit 3). In 2009, Red Lobster tested their new renovation ideas at four locations in Florida in 2008, and another 30 around the country in 2009. Many people viewed Red Lobster as a low quality seafood restaurant, but now they want to change into an upper-scale restaurant in order to attract the Experiential market (Exhibit 10, 11). Red Lobster should try to speed up the process of remodeling because, in the 34 locations where the remodeling was tested, guest satisfaction was up 14%, staff morale was
Mike Anderson’s has been one of Baton Rouge’s premiere restaurants for over forty years. In 1975, Mike Anderson, a former LSU all American football player, opened Mike Anderson’s seafood restaurant with the hope that customers would “leave full and get their money’s worth”. He has been very successful to say the least, now with four different locations. The restaurant boast of its reputation for having the best fried and broiled seafood around town. When asking Michael Pearl, a manager at Mikes for over thirty years, what has kept Mike Anderson’s in business for so long, he said “consistency and excellence, this is a place that loves to make people’s day better” (Pearl Interview). It was remarkable to see a manager who has worked somewhere for thirty years still take pride in his job. After working there for about a year, I decided to finally give it a try. I have to admit, I’ve always thought Mike’s was just another seafood restaurant in south Louisiana, but was I wrong! Mike Anderson’s proved to be a wonderful dining experience. For starters, the quality and taste of the food is superb and it comes at a very reasonable price. Secondly, I noticed the warm and inviting atmosphere from the second I walked in. Lastly and most importantly, what stood out to me the most was the quality of service throughout the meal.
Kudler fine foods is a store that markets fine foods but needs to bring some focus toward expanding their goods to the public. Improving their business operations will increase store efficiencies and the demand of its customers at a higher volume of purchases. The growth of this organization is significant and growth will coincide with strategic marketing that will expand Kudler Fine foods locally and internationally. Kudler’s current marketing strategy and tactics have limited the company from targeting the right group of areas of consumers to promote goods too. Examining demographics and consumer behaviors
We all love dining out for good food and laughter with our family, friends or significant other. Whether it’s a birthday, an anniversary or a casual night on the town, eating at the right restaurant, that offer good food, great price and a fine dining experience is dependent on the restaurant you choose. That’s what made Red lobster my favorite. it is not just a night of eating out, it is an experience. Not only do they have some of the most succulent crab legs there is, or because they have the best appetizer which is their signature Cheddar Bay biscuits, but because of the ambience that you are greeted with when you approached to dine in a Red Lobster restaurant.
If long lines deter you, and fresh quality seafood doesn’t seem to peek your interest, then this place isn’t for you. But if you can muster up the strength to manage that, then Red Lobster is definitely the place to be. By the time the doors open, customers are ready to enjoy great seafood and even better customer since 1968. I made my way up to my local Red Lobster recently to blissfully indulge myself with their endless shrimp dinner for only $16.99. For top of the line quality with a decently low price, this place really seems to harbor in seafood-lovers
The reason we chose red lobster as our organization to analyze is because of they are a well-known dining chain restaurant in the United State. Originally red lobster began as a single seafood dining restaurant named “Harbor for Seafood Lovers” in Florida back in the 1968, and with rapid expend the company is now the world’s largest casual dining seafood restaurant company. Currently red lobster have over 700 restaurants in the North America, with more than 58,000 employees working between the United State and Canada. Furthermore, beside North America red lobster have branch locate in Malaysia, Saudi Arabia, the United Arab Emirates, Qatar, Mexico, and Japan. Red lobster operates in a single segment: Seafood, which includes lobster, shellfish,
The red lobster is an amazing chain restaurant specialized in seafood. You do not have to be in the restaurant to begin salivating of the creative ways in which they make their recipes which are often posted on their site, www.redlobster.com. Their site is well structured in a way that you will not have to click on all the columns to see a perfect meal to order for with each columns showing what it specifically handles. Although, most of the items of the menu are not quite common yet through the well taken pictures of each items on the menu, you cannot help but salivate.
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Kudler is intensifying their services by offering parties hosted by world renowned chefs for their existing clientele in which these chefs illustrate how to prepare and arrange gourmet foods. As well, Kudler’s puts forth a frequent shopper program for the consumers who pay for items regularly with the construction of a loyalty points program. Therefore, the plan will endow patrons with points in which the customer can trade in for high ticket items, airline upgrades, and specialty food products, Kudler Intranet Site, (2011). However, though Kudler has implemented the aforementioned initiatives in an effort to catch the attention of new patrons and stimulate or raise existing customers purchase habits questions come to mind.
Some challenges Red Lobster is faced with is Lack of unit magnification. Red Lobster has more than 700 restaurants nationwide With traffic declining, Red Lobster will have to fixate on fortifying the core business before it can expand. Another challenge is Declining margins, Red Lobster's profit margin is the worst in years because of declining traffic and higher operating costs, Red Lobster's margins are significantly lower than competitors like Buffalo Wild Wings and Cheesecake Factory. And Lastly Commodity prices. Shrimp prices have dramatically increased to unprecedented rates because of production issues overseas. Prices for white shrimp, one of Red Lobster's core menu items, soared 50%. While the prices are expected to ease up soon, Red
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
Due to economic downturn the strength of the buyers’ power has increased as the industry looks to gain consumers with pricing strategies much like those of McDonald’s “Value Menu” and combination meals even though the cost of commodities have gone up (James, 2010). Customers of QSRs are looking for quality food without high costs. While Chipotle does not have a value menu or offer any type of combination meal much of their success is due to the fact that the customers are willing to pay a higher cost for higher-quality (Chipotle, 2010).
A. Executive Summary: Neptune Gourmet Seafood is having issues with what appears to be a temporary problem of excess inventory. Due to new coastal laws, investments in new freezer trawlers and fishing technology, Neptune has increased their average catch size. The demand in high-end market hasn’t been able to catch up with the increasing supply, and Neptune has been struggling with making a decision on how to deplete excess inventory (60 days) of their “Gold Label” branding. My recommendation is to launch a new mass-market product under a different product name to deplete the excess inventory for the short-run, and to capture more of the North American seafood market share in the long-run. Finally, in the
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For the present, Sprig focuses entirely on consumers who are interested in making healthy dining choices along with busy lifestyles (Solomon, Marshall, & Stuart, 2018). Additionally, their marketing strategy looks to the digital world to drum up customers, therefore, appealing mainly to the millennial generation (Smith, 2011). While these target markets are ones which will be the company’s cash cows, so to say, they are potentially missing out on a few other groups who could expand their growth (Solomon, Marshall, & Stuart, 2018). For instance, older consumers or baby boomers are an excellent target group, another is the groups of people who reside in metropolitan areas. Then again, what could Sprig use as the best method of reaching these two groups of people?
Partnering with the ever-growing sustainable seafood movement within the food service industry is the most viable option for Planet Shrimp. The restaurant industry incorporates a variety of educational platforms, including trade shows, food festivals, restaurant trade publications, food sections in newspapers and chef blogs, TV shows and cookbooks. This strategy is the most experiential of the three alternatives, which ensures that the everyday consumer will have a higher chance of recall. It is durable in the sense that long-term growth can be sustained through an expanding network of stakeholders in the restaurant industry, from organizations such as Slow Food to well-known chefs.