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
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
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
The designing messages that effectively reaches Red Lobsters target audience is designed to change or shape attitudes of their new and existing consumers of a short- or long- term action. Darden has been repositioning the Red Lobster brand to have a more sophisticated image conveying greater value for the money -- including remodeling units with a Bar Harbor motif and shifting from an emphasis on fried fish to more fresh, grilled offerings. With that said, Red Lobster main objective is a positive consumer response.
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.
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,
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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
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.
This document represents The i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales.
Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (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
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.
1. Darden Restaurants segments the sit down dining market by creating the idea of “casual dining” and having three different chains of restaurants that aim to serve a specific group of consumers. Darden has taken the total market of those who go to eat out and broken it down to a smaller segment of people who do not want to go to a fancy restaurant, but at the same time want something more than fast food. This segmentation is also known as demographic segmentation. Demographic segmentation is when a market is divided up based on the age, gender, income, ethnicity, etc. Darden recognized the demographics (primarily their income, age, and generation) of the people that would be coming to eat at their restaurants, so that they are better able to cater to them. The CEO of Darden, Clarence Otis, once stated that “the direction of
When my family moved away from the place I grew up I began to have a major problem with my weight; I turned to food to comfort me. I somehow felt secure while eating and because of that psychological reassurance I got from the food, I was soon over weight. I knew I had to do something but that urgency would die when I would be introduced to a new flavor of Brewster’s ice cream or a limited time only supreme large fries that I saw advertised on the television or in a magazine. My self esteem and body-image suffered a great amount during those years of constant struggle. As I looked at pictures of celebrities, athletes, average people, friends, my sister and then myself, I noticed something, all of them were thin except me. After this and