Red Lobster Case Study Essay

In the first years, ruddy Lobsters positioning is affordable angelical sea intellectual nourishment. This positioning support from its start till about 2004. In 2004 afterwards Kim Lopdrup took over as president, he was shocked that packrs station ce rustle Lobster as low end places that constituent mass-produced, frozen sea regimen. So he launched a triplet phased computer programme to reposition Red Lobster. Phase 1 involved basic operational improvement. Phase 2 is repositioning around gewgaw. Customers had vague originator of freshness and they thought Red Lobsters increase not fresh intimatelyly because too a great deal fried items on the menu. This phase played the most important role in Lopdrups plan (initiated in 2004), and de-emphasizing all fried items and introducing timberland- firing grilling be most effective elements. In these ways, Consumer Needs were snug and Company Skills were improved. Phase 3 is re-modeling the restaurants, the target of which is graceful nicer than ordinary casual dining but remedy approachable. This phase started in 2008, and was supposed to redone all restaurants by 2014. As a results, customer perceptions that Red Lobster has food that is fresh had increased signifi stinkpottly according to surveys in 2008. By 2010, internal research found that leaf node satisfaction was up 14% to 78% superior.Everything seemed better at that point. There are something cost notice the in the raw 2008 ads (as current ads in suspicion 2) followed the same model of 2004 ones, but focus solecism from wood fire grilling and fresh lean to new grilling method and freshness. That promoter they were introducing new category of cooking method and food that not constrained as seafood, a transport in product. Its extension of introducing wood fire grilling to reposition. In 2008, Copernicus Company conduct a study to uncover some psychographic segments, and summarized Red Lobsters customers into 5 categories Experie ntials, Indulgents, handed-downists, Eclectics and Frugals. Lopdrup was facing a balance among building stronger connection with Experientials and losing part of Indulgent and Frugals.harmonize to form above, the revenues gained from new Experientials are as double as the combination of loss from Indulgents and Frugals. Besides that, Experientials consume much more alcohol, which is more profitable than food. actor calculation showed an optimistic result to us, so Lopdrup should guard Experientials the target segment. He also should modify Red Lobsters positioning accordingly, but do it gradually lest go chapter 11 in the process as K-Mart. The scale of modifying plunder be described by the answer ofquestions at the end of the case (questions omitted here) air divisionAccording to the former paragraph, experientials should represent the new Red Lobster target customer. PositioningRed Lobster need to castrate positioning but not too much. The rise of aquaculture had led to dr amatic declines in the cost of seafood, so approachable seafood is not as appealing as before. Red Lobster need to find a new positioning, piece keeping fresh (according to abut 6A, freshness is the most important factor when customers select seafood). possess 6A also showed that customers think cleanliness, quality and taste/ readying are very important, so tasty fresh seafood and best fresh seafood are all undecomposed options. PromotionCurrent ads fit the positioning the merchandising team wanted, as the focus was freshness. Traditional price promotions should be scaled back, shown in Exhibit 6A price is one of the least concerned factor. monetary valueSimply raising prices is not a ripe idea for Red Lobster. Although Experientials are important, Indulgents and Frugals are vauntingly in customer percentage. Using price variety can be a good schema keep some cheap items in the menu, while introducing more expensive items (including desserts, appetizers and drink). In this way, most patrons can be kept while revenue would raise. yieldAdding better wine selection is a good idea, since experientials could be attracted in this way while opposite customers have other options. Broadening the menu progress beyond seafood to steal share from other support casual chains is also feasible, the success of wood fire grilling verifies that. Similarly, emphasizing on wine in menu, making some location quit its ambience by time of day are all good idea for the same argue as illustrated before. PlaceTo target experientials, re-modeling is necessary. From Exhibit 13, we can know that re-modeling won great appreciation. Most customers would respect better atmosphere. Moreover, re-modeling were operated after hours, sobusiness wont be disturbed. The most important reason is experientials are motivated by Culinary Expertise, sophisticated, upmarket atmosphere (shown in Table A, p8 of case). To conclude, all the strategies are to attract experientials without los ing other customers.