1. Market Analysis
Customer Needs
When customers consider going out and dining at a restaurant, specifically seafood, they look for good quality at an affordable price. In addition to affordable seafood, having a friendly dining environment paired with great customer service increases a guest’s overall dining experience.
Company Skills
One of Red Lobster’s skills is that it has been open since 1968 and has a well-established brand name that many customers are familiar with. It was the base for setting the bar for seafood restaurants by providing consumers in non-coastal regions with top quality seafood at an affordable price. Founder, Bill Darden is an important asset to Red Lobster because he was able to create this very successful brand …show more content…
This made it difficult for the restaurant to continue growing and being affordable was even more important in order to keep drawing in customers. Due to the growth of aquaculture, the prices for shrimp and salmon have drastically reduced through the years, this is shown by exhibit 5, Declining Cost of Seafood, in the Red Lobster case analysis.
2. Between the five different market segments, the markets that they do not want to re-position around would be the Traditionalists and Frugals. Red Lobster wants their target market to enjoy going out to restaurants for the whole dining experience, not just a place to get cheap seafood. Targeting Experientials is a step in the right direction for Red Lobster because their target market seemed to be geared to the Indulgents segment and it wasn’t attracting many new customers. Centering their efforts towards Experientials can open a whole new customer base for Red Lobster that is essential for growth. In order to attract the Experientials segment, Red Lobster needs to make it well known that having ‘fresh seafood’ is a high priority because this segment is willing to pay slightly more for something they believe is of a higher quality. Another important element to consider is creating a dining atmosphere that is appropriate for many different occasions such as date nights and business meeting as well as family outings. Through the re-positioning …show more content…
Pushing the new healthier items, not fried, through advertising attracts the experiential segment because this reveals that Red Lobster isn’t just fast fish. Depending on the what types of fish are in season throughout the year, this should drive the promotions. When a certain type of item has excess supply, traditional promotions should be advertised such as, “Lobsterfest” and “Endless Shrimp”. These types of promotions appeal to customers who have been loyal to Red Lobster that enjoy discounts while also appealing to Experientials giving them more
Customer Needs
When customers consider going out and dining at a restaurant, specifically seafood, they look for good quality at an affordable price. In addition to affordable seafood, having a friendly dining environment paired with great customer service increases a guest’s overall dining experience.
Company Skills
One of Red Lobster’s skills is that it has been open since 1968 and has a well-established brand name that many customers are familiar with. It was the base for setting the bar for seafood restaurants by providing consumers in non-coastal regions with top quality seafood at an affordable price. Founder, Bill Darden is an important asset to Red Lobster because he was able to create this very successful brand …show more content…
This made it difficult for the restaurant to continue growing and being affordable was even more important in order to keep drawing in customers. Due to the growth of aquaculture, the prices for shrimp and salmon have drastically reduced through the years, this is shown by exhibit 5, Declining Cost of Seafood, in the Red Lobster case analysis.
2. Between the five different market segments, the markets that they do not want to re-position around would be the Traditionalists and Frugals. Red Lobster wants their target market to enjoy going out to restaurants for the whole dining experience, not just a place to get cheap seafood. Targeting Experientials is a step in the right direction for Red Lobster because their target market seemed to be geared to the Indulgents segment and it wasn’t attracting many new customers. Centering their efforts towards Experientials can open a whole new customer base for Red Lobster that is essential for growth. In order to attract the Experientials segment, Red Lobster needs to make it well known that having ‘fresh seafood’ is a high priority because this segment is willing to pay slightly more for something they believe is of a higher quality. Another important element to consider is creating a dining atmosphere that is appropriate for many different occasions such as date nights and business meeting as well as family outings. Through the re-positioning …show more content…
Pushing the new healthier items, not fried, through advertising attracts the experiential segment because this reveals that Red Lobster isn’t just fast fish. Depending on the what types of fish are in season throughout the year, this should drive the promotions. When a certain type of item has excess supply, traditional promotions should be advertised such as, “Lobsterfest” and “Endless Shrimp”. These types of promotions appeal to customers who have been loyal to Red Lobster that enjoy discounts while also appealing to Experientials giving them more