W2 DISCUSSION 1 W2 Discussion Ankit Sanjay Chaudhari W2 DISCUSSION 2 W2 Discussion 1. How has Red Lobster’s positioning changed over time? Do the current ads reflect the repositioning that Lopdrup and his team envisioned when their efforts began in 2004? Yes, I agree that Red Lobster's strategy has evolved. After Lopdrup became Red Lobster's president in 2004, the company underwent significant changes. By promoting freshness and culinary expertise, they are hoping to attract customers. You can see this in their current food ads. The ads show a more extensive list of the kinds of fish you can cook each day, a special menu containing a recipe list, and the chef's name on the menu. Also, the ads indicate that the company has appointed grill masters who are only responsible for grilling. As a result, the quality and attention to detail have been dramatically improved. 2. What were the most effective elements in Lopdrup’s repositioning plan (initiated in 2004)? An essential element of Lopdrup's repositioning plan was freshness, so the first step was hiring some new employees. A new EVP of marketing was hired, Salli Setta. Setta then hired a new culinary team. By de-emphasizing all fried items and introducing wood-fired grilling, the most significant step was made in promoting freshness in all aspects of the business. Quality and attention to detail improved with the introduction of grill masters. Introducing the daily fresh fish menu, "Today's fresh fish menu" offered five to eight different fresh fish entrees, according to the region's catch of the day. The element of freshness was at the center of every step, so we could see everything that was done. The importance of this component cannot be overstated. W2 DISCUSSION 3 3. Compute restaurant level profitability under the following scenario: The mix of patrons shifts with the restaurant gaining 2,000 new unique Experiential customers, but losing 1,000 Indulgent customers and 1,000 Frugal customers. Revenue increase: $151,828 4. Should Lopdrup make Experentials the target segment and modify Red Lobster’s positioning accordingly? If so, how should he change its marketing mix (i.e. product, price, place, and promotion)? It's a good idea for Lopdrup to target experiential segments. In essence, this is due to two factors: Copernicus surveys show that experiential marketing generates a quarter of red Lobster sales. W2 DISCUSSION 4 Considering Red Lobster's current financial situation, they need to target the experiential consumer group, which makes up a large share of Red Lobster's business, to make up for declines in profits. 1. Promotion: Their advertising should emphasize freshness and culinary expertise. It is also essential to keep in mind their traditional price promotion. 2. Pricing: Customers who purchase experiential goods do not seem to be affected by minor price fluctuations. 3. Product: A wide selection of quality wines and new seafood recipes are popular with customers looking for experiences, i.e., providing variety to wine and offering a wide selection of good quality wines. 4. Place: Lastly, those locations need to be renovated; they will be more valuable than others. It would be beneficial for new restaurants to be located in quieter areas with fewer distractions.
