Should Lopdrup make Experientials the target segment and modify Red Lobster’s positioning accordingly. If so, how should he change its marketing mix (4P)?
Red Lobster originally was founded in 1968 and gained tremendous popularity back then by offering fresh seafood for everybody. They made it easily accessible and approachable. However, over several extremely successful decades of rapid growth and many new restaurants, Red Lobster in 2004 was becoming out of date and out of touch with today’s customer. The company with more than 40-year experience in seafood restaurants, with its new leading CEO Kim Lopdrup now has invested in extensive market research. The results of the market research reveal a surprisingly exciting opportunity for
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Regarding it’s 4PS, they should adjust its current market mix by really thinking about the target group’s wants and needs. Experientials are well educated and will not tolerate bad service. They go out to restaurants to connect with friends, family, and colleagues. So the company should definitely think of ways to improve its service. Renovation of the restaurant space, hiring of friendly employees that Red Lobster would continually educate about the latest trends and menu offerings. It is very important for the brand to have a welcoming, human face. And honest, communicative employees that will give a personal experience for each customer will take the brand image further away from its current corporate image. Regarding the products, it is also very important to communicate the source of their fish, its good quality chefs, daily offerings of ‘daily fresh catch’ to let people know that Red Lobster has ‘stepped up’ their game and only offering the highest-quality fresh crab from the best farmers. Perhaps they should do an acquisition with a wine company in order to offer experientals more wines to choose from, since they like to enjoy new food and menu items. They are motivated by culinary expertise and wine and food goes hand in hand with each other. Regarding the price, they could increase the price a little bit, since experientials are not overly ‘price sensitive’. They are well educated with a high income, though they also like to eat out often. So a mid-range