Red Lobster Case Study

2663 Words 11 Pages
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,
…show more content…
In 2004, he choose to reposition the restaurant around freshness of seafood, which was the most important thing to customers. Lopdrup did a great job of changing the position and initiated a three-plan phase to ensure success in his reposition. The plan entailed of basic operation improvements, re-positioning, and a remodel of the physical locations. His plan was completed over years resulting in a jump in customer experience and sales. After running the company for six years, in 2010 he had a better feel for the company and could better position them. Lopdrup gained valuable knowledge about consumers using various different market research techniques to find segments and patterns throughout consumers. Marketing research allowed Lopdrup to see the opportunity in each of the segments that were found. In 2010, Red Lobsters position was as a renovated, appealing, quality seafood restaurant that was price reasonable. After seeing what has worked and what hasn’t over the years, Lopdrup began to think about opportunities such as broadening the menu, or a better wine selection, to ensure constant customer satisfaction …show more content…
This segment of customers tends to eat out as a source of pleasure. They are frequent diners at casual and fine dining restaurants, while they enjoy new menu items and wine with dinner. Culinary Expertise and a sophisticated upscale atmosphere motivate this segment. Experientials favor seafood, loving fish and a wide variety of shellfish. This segment does not tolerate bad service, and are well educated. Their yearly household income is average around $100,000. To cater to this type of customers, Red Lobster should create an atmosphere that creates an experience that is sophisticated and upscale giving eating an importance as a pleasure. Premium wine of different variety should be stocked up, giving the customer the opportunity to try different types over the various visits to the restaurant. Seafood should also have a lot of variety, since this segment favors it over other types of food, and will tend to come back if they have variety. Service should be kept to excellent standards, not allowing any customer to leave without having an exceptional experience. Price shouldn’t be a problem for this type of customer, but variety should be

Related Documents