Red Lobster Marketing Essay

1371 Words Apr 18th, 2013 6 Pages
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

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