2014 Red Lobster Media Plan
Alexa Kuehl
Created by: Alexa Kuehl
1
Background
11
Competitive Spending Analysis
21
Media Objectives
23
Target Profiles
37
Media Strategies & Flowchart
Background
Background Information
Red Lobster is a widely known American
casual dining restaurant chain. It is
currently owned and operated by Darden
Restaurants Inc.
• Red Lobster currently has a website,
Facebook, Twitter and YouTube page.
Through it’s subsidiaries, Darden operates
eight restaurant chains.1
For the following reasons, Red Lobster is
a well-known brand and many people are
familiar with the products offered at Red
Lobster and are aware of the brand itself:
• The first Red Lobster opened in 19682
This brand has been around for a significant amount of time
• Red Lobster exceeded $1 billion in sales
in 19882
• Red Lobster is the largest full-service
seafood dining company in the world3
• Red Lobster serves near 3 million
guests a week3
• There are formal development plans for
opening Red Lobsters in Mexico and
the Middle East2
• Red Lobster has more than $2.5 billion
in sales anually5
With over 700 Red Lobster restaurants in
the United States, it is easy for consumers
to find a Red Lobster location near them4
2
• Many people dine at Red Lobster year
round as fresh fish is shipped to each
restaurant daily.
• Red Lobster also has regional fish that
draw customers to different parts of the
United States.21
Marketplace
• The first Red Lobster was established in
1968 in Lakeland, Florida6
• It is the largest full-service seafood
chain in the United States7
• As of the end of 2012, there are 704 Red
Lobster locations4
• In the chain restaurant industry, Red
Lobster has 15.8% of the market share,
the most of any major company.16
• Red Lobster has shown relatively slow
but steady increases in sales.
• However, in 2012, revenue from Red
Lobster fell 3.9 percent8
• Red Lobster reported that raising the
price of the “Festival of Shrimp” one
dollar did not go over well with customers8
• In 2012, Red Lobster and other Darden
restaurants including Olive Garden and
Longhorn Steakhouse fell short of their
expected fourth quarter earnings.9
Positioning
Red Lobster positions themselves as having
quality fresh seafood, but not being too
expensive. They recently showcased their
15 under $15 menu to real people on a
commercial spot.
• In the ad, the fisherman talks about
how Red Lobster fishermen travel to
distant locales to find lobster for the
restaurants.
Again, this emphasizes how Red Lobster and its many employees “Sea Food Differently” by finding the best and freshest seafood.
• Charles Himple, a grill master, was
another Red Lobster employee featured
in a commercial where he talked about
why he thinks customers love their food
so much. A feature of Red Lobster highlighted in one of these commercials was
their wood-fire grill that uses oak wood
and their commitment to quality.20
Red Lobster states on their website that part
of their company story and history is their
commitment to quality
• Red Lobster works alongside quality
experts and their fishermen to assure
the best quality seafood and the freshest
fish at all of their restaurants.
• Red Lobster also prides itself on the
dining experience customers receive.
All of this culminates in their motto,
that at Red Lobster, they “Sea Food
Differently.”5
• In an advertisement for Crabfest, Red
Lobster aired a commercial featuring
a Red Lobster fisherman named Jon
Forsythe.10
3
• By featuring these employees, Red
Lobster allows customers to see the
real people behind the products at Red
Lobster and the company itself.
• On January 14, 2013, Red Lobster
started a new advertisement campaign
targeting Hispanic consumers that will
run on Spanish television channels.11
• Red Lobster is well known for their
kids menu that offers a wide variety
of choices, with many of them being
healthy options.
Recently, Red Lobster started renovations
on their existing restaurants.12
4
• The renovations are inspired by Bar
Harbor, Maine and have been called
“Bar Harbor design”
• The remodel is built to evoke a warm
and comfortable atmosphere, similar to
that of the seaside of Maine
• The remodels are scheduled to be
finished in 2014
Red Lobster has an expansive menu that
features more than just fish and has a wide
variety of prices. Red Lobster also runs
different promotions throughout the year.22
• 7.99 lunch specials
• Lobsterfest featuring the largest
selection of lobster entrees
• Shrimp dinner entrees ranging from
$12.50-$18.75
• Lobster and crab dinner entrees ranging
from $17.99-$29.25
• Land and sea dinner entrees ranging
from $10.75-$32.99
• Fish dinner entrees ranging from
$12.75-$17.75
• Dinner 4-Course Feast for $15.99
• Healthy entrée options on the
“Lighthouse Selections” menu
• A daily fresh fish menu ranging from
$10.99-$19.75
• 15 “Maine Stays” entrees from under
$15
• Kids menu ranging from $5.25-$9.25
• Unlimited Cheddar Bay Biscuits
As the portions at Red Lobster can be quite
large, the restaurants offer to package up
leftovers into microwaveable containers. All
containers are packaged into a brown paper
bag with handles and the Red Lobster
logo. Leftover bags for the Cheddar Bay
Biscuits include directions for reheating the
biscuits so they taste almost as fresh as at
the restaurant.
Competitive Analysis
Competitive Category
• Red Lobster competes in many
categories, but the most accurate
category based on its competitors and
its products would be the full-service
casual restaurant category.
- Full-service casual restaurants have moderately priced entrees,
a large menu and waiters to serve the customers.
• This decision of the competitive
category was based more heavily on the
environment of the restaurant and the
nature of the dining experience.
• Food did not play as big of a factor
because Red Lobster is not just focused
on seafood as they were in the past
• Red Lobster now has dinner entrees
that include steak, pasta, chicken and
pork.
• That is not to say that many other casual
restaurants do not offer seafood items
on the menu, but these items don’t take
up a large portion of the menu as they
do at Red Lobster.
5
Current Competitors13
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Joe’s Crab Shack
Chili’s
Ruby Tuesday
Applebee’s
Bonefish Grill
Olive Garden
T.G.I. Friday’s
Cheesecake Factory
Outback Steakhouse
Romano’s Macaroni Grill
Texas Roadhouse
Carrabba’s Italian Grill
P.F. Chang’s
Bubba Gump Shrimp Co.
*Restaurants owned under the parent
company Darden Restaurants Inc. were
not included in this list of competitors
though they might fall into the competitive
category. Darden Restaurants were not
considered competitors because all profits
from these restaurants are going to the
parent company.
The top three most important competitors
are:
• Chili’s
• Applebee’s
• The Cheesecake Factory
6
Keeping in mind that the target market is
first-time visits made by families who like
to go out to restaurants for dinner, the top
competitors are other full-service casual
restaurants that have the most similar
menus and also focus on having a children’s
menu. We also want to emphasize more
well-known and large chains as the top
competitors, though the largest chains were
not necessarily chosen as the top three
competitors.
The three main competitors were chosen
based on their similar full-service casual
dining atmosphere. These restaurants also
have a respectable number of locations to
generate competition for Red Lobster. All
of these menus also feature seafood items.
Although it might seem intuitive for the top
competition to be other seafood focused
restaurants like Bubba Gump Shrimp Co.,
Bonefish Grill and Joe’s Crab Shack, the
menu items, children’s menu and similar
dining atmosphere, among other factors,
helped these three restaurants make the list
of top competitors.
According to a Forbes article, an annual
survey showed that The Cheesecake
Factory is the nation’s preferred casual
dining restaurant.7 Due to The Cheesecake
Factory’s popularity with customers and
expansive menu, they are a big competitor
for first time-visits made by families who
like to go out to restaurants for dinner.
Especially since this chain is so popular
with consumers, its customer base can
easily expand through word of mouth.
Strengths of Chili’s
• Special “Kids Eat Free” offers that
attract families for dinner17
• Lower price point than Red Lobster
• Many of their restaurants were
remodeled with tabletop touch-screens
that have games for kids and allow
customers to pay their bill right at the
table24
• Charitable work for St. Jude hospital
making Chili’s the largest corporate
donor14
• Many locations throughout the United
States (over 1,200)15
• International locations (over 200)14
• $20 Dinner For Two
• Larger kids menu
• The most extensive menu of the competitors
• Also has more dessert options than any
other competitor, giving consumers a
lot of choice
• “SkinnyLicious” portion of their menu
for health conscious consumers
• “Curbside to-go service” similar to
Applebee’s
• Affiliations with community initiatives
and programs13
Strengths of Applebee’s
• According to a Mintel Survey,
Applebee’s is one of the largest casual
dining restaurants and one of the most
popular for lunch and dinner13
• Applebee’s is open for lunch, dinner and
late-night, which Red Lobster is not
• Large variety of items on the menu
• Weight Watchers and under 550
calories section of the menu13
• More locations than Red Lobster
• Pioneering the “Two for $20” meal
deal13
• Carside to-go service
Weaknesses of Chili’s
• Doesn’t have a good reputation for the
quality of food or cleanliness7
• Similar price point to Red Lobster,
making competition tough
Strengths of The Cheesecake Factory
• 156 locations across the United States13
7
Weaknesses of Applebee’s
• Doesn’t do as well as other restaurants
in the quality or taste of its food7
• Similar price point to Red Lobster,
making competition tough
• Smaller and simpler kids menu
Weaknesses of
The Cheesecake Factory
• Higher price point
• The Cheesecake factory does not offer
discounts to attract consumers, but
rather emphasizes their high quality
food13
• Not as child friendly as other
competitors or Red Lobster
• Not nearly as many locations as Red
Lobster
• Received bad press for high caloric
foods
Serve a pasta dish with more than 3,000 calories19
Cost of Red Lobster vs. competitors
28
In general, The Cheesecake Factory is
more expensive than Red Lobster, while
Chili’s and Applebee’s tend to be cheaper
than Red Lobster.
• However, Red Lobster has the most
expensively priced entrée, their 12 oz.
New York strip and lobster tail dinner22
Chili’s vs. Red Lobster
• Chili’s has a Tex-Mex theme as
opposed to Red Lobster’s coastal
charm.
Serves more traditional American cuisine
• Chili’s has a kids eat free promotion
where customers purchase and adult
entrée and kids under 12 get to eat
free.17
• Red Lobster has a smaller kids menu
than Chili’s and is more expensive.
This puts them at a disadvantage to Chili’s when trying to attract first-time visits made by families who like to go out to restaurants for dinner.
• Chili’s has been positioned as a place
where people can come to celebrate
moments in life because at Chili’s, “more
life happens here.”23
• Red Lobster is more focused on the
quality and freshness of their food.
• Red Lobster has more seafood entrees on
their menu
Applebee’s vs. Red Lobster
• Applebee’s positions themselves as a
family friendly neighborhood bar &
grill where people can feel at home and
continuously come back.
Their current slogan is “See you
tomorrow.”18
• Applebee’s positions themselves with a
friendly atmosphere as opposed to the
quality and freshness emphasis of Red
Lobster.
• Red Lobster has more seafood entrees on
their menu
• Similar children’s menu, but Applebee’s is
cheaper
The Cheesecake Factory vs. Red Lobster
• Red Lobster has a kids menu listed on
their website and overall seems more
welcoming to families
• The Cheesecake Factory is not known
for having healthy food options on their
menu
• Red Lobster has a cheaper price point
than The Cheesecake Factory
• The Cheesecake Factory doesn’t really
have a position or strong personality but
is well known for their large portions
and extensive cheesecake menu as well as
food menu
Positioned as a more upscale casual dining restaurant
9
SWOT Analysis
Strengths
• Promotions to keep customers
interested
• Reputation for freshness and quality
• Strong brand with high consumer
awareness
• More expansive seafood menu
• Varying prices
• Many locations
• Great kids menu
Opportunities
• Building new restaurants in new
locations (potential for growth)
• Expanding into different countries
• Trend toward healthier food
options
• Cheaper menu items to cater to
people with less disposable income
Objectives
10
Weaknesses
• Decline in restaurant profits over
the last year
• More limited menu for nonseafood items
• Seafood items might be
unappealing to kids
Threats
• Many different competitors
• Competitors with cheaper price
point
• Poor economy leaving consumers
with less disposable income
• In order to maintain competition with the top Chili’s, Applebee’s and The Cheesecake
Factory, as well as other competitors, our sales objective is to increase sales 1.7% in 2014.
• Our marketing objective is to increase the number of first-time visits made by families
who like to go out to restaurants for dinner by 13% in 2014.
• Our advertising objective is to educate families about the low prices and excellent kids’
menu at Red Lobster.
Competitive
Spending
Analysis
Competitive Spending Analysis
The total category spending for advertising between Chili’s, Applebee’s,
Red Lobster and The Cheesecake Factory is $244,392,000.
Nearly half of the $244 million spent on advertising is spent by Chili’s. The Cheesecake
Factory is the lowest category spender with only five percent of all spending.
12
SOS For Each Medium
• Chili’s dominates the share of spending for spot radio, local and national newspapers, as
well as cable and network TV
• Red Lobster dominates the share of spending in outdoor and syndicated TV
• Applebee’s has the highest share of spending in outdoor and cable TV
• The Cheesecake Factory dominates share of spending in magazines and internet
Chili’s Spending
• Out of the total category spending of $244,392,000, Chili’s accounts for $112,738,000.
Their total share of spending is 46%.
Chili's Media Mix 0.7 0.8 16 1 Network TV 26 Cable TV Spot TV 8 Spot Radio 5 Magazines 15 28 Nat'l Newspaper Local Newspaper Internet • Chili’s allocates most of their
budget into TV
Specifically network and spot TV
• Chili’s allocates very little of their
budget for outdoor, internet,
magazines and network radio
14
Chili’s Seasonality
• Chili’s implements a continuity seasonality strategy with no gaps and continuous advertising
With this strategy, advertisements work as a constant reminder to consumers
Applebee’s Spending
• Out of the total category spending of $244,392,000, Applebee’s accounts for $40,639,000.
Their total share of spending is 17%.
Applebee's Media Mix 1 3 Network TV 6 4 21 Cable TV Syndicated TV Spot TV Spot Radio 32 30 3 Nat'l Newspaper Local Newspaper Outdoor • Applebee’s allocates most of their budget into TV
Unlike Chili’s, Applebee’s emphasizes network, cable and spot TV
• Applebee’s doesn’t spend their advertising dollars on network radio, magazines
or internet
• Applebee’s doesn’t spend much of their budget on outdoor, local newspaper,
national newspaper, spot radio or syndicated TV
16
Applebee’s Seasonality
• Similar to Chili’s, Applebee’s uses a continuity seasonality strategy, assuring that their
message is always out in the media for consumers to hear
The Cheesecake Factory Spending
• Out of the total category spending of $244,392,000, The Cheesecake Factory accounts for
$12,356,000. Their total share of spending is 5%.
• The Cheesecake Factory focuses their media solely on magazines and internet
Unlike most of their competitors, they only focus on two parts of the media mix
18
The Cheesecake Factory Seasonality
• The Cheesecake Factory is on a pulsing seasonality strategy
• The Cheesecake Factory has a peak in their advertising during October and November
(the months leading up to the holiday season) and during December (the holiday season)
There is a drop in advertising in January that continues until September
Opportunities
Based on the competitions media
strategies, there are opportunities for Red
Lobster to expand in several areas:
Red Lobster does not utilize radio, which
may be an effective way to reach people
that are near the point of purchase
Radio can serve as a reminder to parents when they are driving,
especially when there is a Red
Lobster close by and there is a special event
Red Lobster has the second highest share
of spending, putting them in a good
position for advertising and having their
messages heard
However, there is always an
opportunity to increase share of spending
20
Many of the competitors advertise more
heavily than Red Lobster during January,
leaving a risk for consumers to forget
about Red Lobster during this time
There is an opportunity to do more advertising or a promotion during this time
Internet is dominated by Chili’s and The
Cheesecake Factory
There is an opportunity for Red Lobster to advertise in this
medium and gain some of the share of spending
Opportunity to expand advertising in
magazines
Magazines reach the upscale
audiences and families
Can help build brand and show high quality photographs that make the food look appealing
Media Objectives
27
Media Objectives
Target
• This campaign is going to reach
families who like to go out to
restaurants for dinner with children
under 12 or teens age 12-17 by
targeting married Caucasian women
25-49 with a HHI of $75,000+
• The target rationale came from
Simmons data which is elaborated
on more in the demographic/
psychographic target profile
25-49
years old
Income
$75,000+
Married
and
Caucasian
Kids
under 12 or
12-17
Geography
22
• To provide a nationwide campaign
with a heavy-up in large metropolitan
spot markets
- There are over 700 Red Lobster locations in the United States alone
- Nearly half of the target segment lives in counties containing the 25 largest metros so these spot markets should be emphasized
Seasonality/Scheduling
• To provide continuity support year
round, with advertising focused after
work hours and during the day on
weekdays and on the weekends
- Consumers go out to dinner with family all year long
- Almost ¾ of the target segment is employed either full or part time and doesn’t have much time to use media during the day
- The target is 60% more likely than the average population to be a homemaker, so advertising duing the day reaches these consumers
Reaching these consumers before dinner time may be beneficial
Plan Performance
• To reach 80% of women 25-49 an
average of 2.5 times.
• Want to emphasize reach because of
the new ad message about the kids
menu and low prices. Don’t need
priority emphasis on reach because the
product itself is not new
• Using the Ostrow chart to determine
effective frequency
- Mature brand with high
awareness in a competitive
market
- Yet there is a lot of noise in the category and it’s not a high
involvement product
• Monthly TRP goal of 160
Media Budget
• The media budget for 2014 is $39MM
($39,000,000)
Target Profiles
Demographics
• The target is not clearly male or female,
but women are 14% more likely than
the average population to go to dinner
with family between the ages of 12-17 or
under 12
• Women tend of make more purchase
decisions than their counterparts, so
targeting women makes sense
• The target is most clearly between 25-49
• These are common ages for having children and raising a family
• 87.41% of people that go to dinner with family between the
ages of 12-17 or under 12 are not Spanish/Hispanic/Latino
- Nearly 80% of the target are white
- 10% are African American
- The target market is primarily made up of Caucasians
• The target is highly educated
• They are 35% more likely than the average population to have
completed a four year college degree
24
• Nearly 70% of the target segment is presently married.
They are also 27% more likely than the average population to be currently engaged to be married
• The target is family oriented, as they are going to dinner with children ranging
from newborns to 17
• The target segment is highly educated and puts their education to good use by
working long hours
72% of the target market is either employed full or part time
• The target is also 60% more likely than the average population to be a homemaker
This could be a correlation with the target segment having multiple children
• The target segment works for a variety of different employers
Primarily in large companies or for public and social services
• As the target is highly educated and works a great deal, it makes sense that they
have a high individual employment income
They are 65% more likely than the average population to make between $75,000 and $99,999
• Again, it makes sense the target has a high household income considering their
high degree of education and time spent at work
Nearly half of the target makes $75,000 or more
• There was no clear religious or political association of the target, but it’s interesting to note that they are 67% more likely than the average population to consider themselves Mormons
This is a religion that is traditionally committed to family
26
• It should come as no surprise that the target is family oriented, with most having
more than one child
The target segment is 152% more likely than the average population to have two children
• As the target has large families and working parents (full and part time), they
child care both in and out of the home
• Nearly half of the target segment lives in counties containing the 25 largest
metros
The target lives in counties that are metropolitan and large (150,000+)
Psychographics
• Recalling that the target is highly educated and has an expanding family, it
follows that they are making life changes or expect to make life changes such as:
Buying a new home
Getting better jobs
Refinancing their homes
Major milestones in children’s’ lives
27
• The target segment is not clearly interested in recycling and green practices
They only sometimes do these things, and are unlikely to always recycle a particular product
• The target shows a slight favor for affiliating with the republic party and 1/3
(80%) are registered to vote
However, 10% of those registered to vote didn’t vote in the last election
• In general, the target segment is concerned with their health, diet and food choices
They try to eat healthier foods and watch what they put into their bodies (67%)
They also like to occasionally treat themselves to foods that might not be as healthy
• When it comes to the target segments attitudes and opinions about food, they
are adventurous and concerned with nutrition
They do not make dinner a priority over other meals
Despite being concerned with nutrition, fast food fits into their busy lifestyle with full time jobs and children
• Reiterating the fact that the target segment has families and full time jobs, they are:
Family oriented
Enjoy time spent with family
Go above and beyond to make their children and family happy
• In terms of how the target segment sees themselves compared to others,
they believe they are more family centered and less work centered than their
counterparts
• For the targets shopping behavior, they take advantage of specials and like to bring
their children along
This behavior may translate into their dining decisions
• The target segment enjoys a variety of leisure activities and hobbies
- Many of these are activities that can be done as a family
- Many of these activities and hobbies are child friendly
- Many of these activities reflect family time
Such as photography and scrapbooking
• The target has a high index for buying both sports memorabilia/trading cards
and Disney collectibles
These are often purchased for children and due to the family oriented
mentality of the target segment, they are likely purchased for children
• The target segment enjoys attending events and is 30% more likely than the
average population to go to a rock/pop concert or go to a comedy club
30
• The target segment is very active in both individual sports/activities and group
or family activities
They enjoy being outdoors and partaking in group sports
• Being that the target segment is family oriented, it comes as no surprise that
they enjoy visiting theme parks
- Theme parks are traditionally family friendly
- Many children love going to theme parks
31
Media Profile
• Considering the target is people who
go out to dinner with their family and
children 17 and under, it’s no surprise
that women’s magazines are popular
among the target
• The target enjoys many of the cheaper
tabloids and celebrity gossip rags that
can be found in many stores, but does
not as thoroughly enjoy the more
respected People magazine
• The target segments enjoys
photography as a leisurely activity and
also had a high index for photography
magazines
• The target is very interested in
magazines that focus on parenting
issues. They are clearly passionate
about family and raising children
considering they have a family with
children 17 and under
• Being that the target segment is
younger and more tech savvy, it’s not
a big surprise their readership in all
newspaper sections is not high
32
• Going along with their attitudes and
opinions about food and nutrition,
the target reads magazines about
staying healthy and active
• The target segment is not interested
in national newspapers and tends
to opt for magazines, the internet or
television to get their news
• The target market isn’t very interested
in any sections in the Sunday
newspaper except for the classifieds
• The classifieds section can help young
families with children save money
and spend their money in more cost
efficient ways
• People who go out to dinner with
children under 12 or age 12-17 are
inclined to be appointment television
users. They tend to watch their
favorite shows when they are on but
don’t sit down to watch television for
hours on end
• The target segment enjoys a variety of
different comedy shows on different
networks
• The target market enjoys reality shows
• The cable TV shows with the highest
indexes were almost all TV shows
geared towards children, which makes
sense since the target segment has
kids 17 and under
• TLC also has a high index with many
shows geared toward women and
mothers
• The target segment enjoys some
comedy-drama TV shows
Most are geared towards a younger audience
• Being that the target segment is
adventurous with their food and
concerned with nutrition, they watch
several cooking shows
33
• Despite not having high indexes for
any particular religion, the target
market spends a significant amount of
time listening to religious music
• The target segment most notably
enjoys watching television dramas
These shows tend to be big with women
• As the target has shown varied
interests, it’s no surprise they listen to
different genres of music
• The target market spends most of
their time listening to radio between
the hours of 3PM and 7PM
These hours are when most adults or parents are driving their kids home from school or to practice or even driving themselves home from work
• Despite having children, the target
enjoys listening to music that is
targeted at adults
34
• The target has many interests and
is familiar with the internet as they
spend time visiting many different
kinds of sites
• The target segment likes to take
advantage of specials and one way
they can do this is by researching
their purchases beforehand on the
internet
Consumer Reports can help consumers make well thought out decisions
• The target segment is highly educated
and it follows that they would spend
more time on LinkedIn than on
Facebook
• The target segment routinely uses
entertainment sites to purchase tickets or
consume media
Sites like fandango and movie tickets are convenient when buying tickets for a family night at the movies
• The target segment is not interested in
newspapers for getting their news and
may be turning to the internet instead
• The target segment is interested in
staying active and keeping up with
their favorite sports and sports in
general
• It should come as no surprise that the
family oriented and highly educated
target market does some of their
shopping online
It’s convenient and it allows for more time to be spent with family
35
Media Strategies
Media Strategies
Media Overview
Network TV Primetime
• The target tends to be appointment
television users but because many of
them work full time, they will most likely
be watching primetime TV after work
hours.
• True to life images can show off the food
offered at Red Lobster
• TV is pervasive with a high reach
• The competition is allocating a great deal
of their budget to network TV
Network cable - Daytime and Primetime
• The target watches a lot of cable TV
shows
• Red Lobster is currently the second
highest spender in cable TV behind
Chili’s and should maintain advertising
in this medium
• High reach and pervasiveness of TV
• Nearly 75% of the target market is
employed full or part time so they are
more likely to be watching primetime
TV over any other day part
• The target is also 60% more likely
than the average population to be a
homemaker so advertising during the
day could reach this part of the target
38
Magazines - Women’s and General Interest
• Magazines can reach the upscale families
that compromise a large part of the
target market
• Can help build brand and show high
quality photographs that make the food
look appealing
• Magazines are currently dominated by
The Cheesecake Factory
Internet - Targeted Sites
• The internet is currently dominated by
Chili’s and The Cheesecake Factory
• The internet is flexible and can be
personalized
• Red Lobster is currently not utilizing the
internet but has consumers that spend a
great deal of time online visiting a wide
variety of websites
Spot TV - Daytime
• Spot TV offers a high reach with true to
life images
• Red Lobster is currently the second
highest spender in this medium and can
maintain a heavy presence in this medium
• The target watches a variety of TV shows
geared towards children that air during
the daytime so advertisements during that
day part could reach that segment of the
target that might be a homemaker
Spot Radio - Evening Drive
• Red Lobster does not currently utilize
radio and this medium is dominated by
Chili’s
• Radio is a great way to remind parents
near Red Lobster that they are a great
option for dinner
• Local appeal for people near a Red
Lobster
• Lower cost and high frequency
• The target listens to radio most between
the hours of 3PM and 7PM, when adults
are most often driving their kids home
from school or driving home from work.
Newspapers
• No advertising will appear in newspapers
because the target segment is tech savvy
and not interested in getting their news
from a newspaper. There are other outlets
they can go to when seeking news.
Media Mix
Media Mix 5.25 Net TV Prime 5.4 Net Cable Day;me 24.27 Net Cable Prime Womens Magazines 23.32 3.5 13.9 15.96 8.4 General Interest Magazines Internet Targeted Sites Spot TV Day;me Spot Radio Evening CPM by Medium Per Month
•
•
•
•
•
•
•
•
Net TV-Prime: $50.66
Net Cable-Daytime: $7.29
Net Cable-Prime: $39.57
Magazines-Women: $17.53
Magazines-General Interest: $33.34
Internet-Targeted Sites: $45.66
Spot TV-Daytime: $28.17
Spot Radio-Evening Drive: $28.97
Monthly Summaries
• Monthly reach within the 20 spot markets: 81
• Monthly frequency within the 20 spot markets: 2.8
• Monthly GRPs within the 20 spot markets: 224
• Monthly reach within all other cities: 74.7
• Monthly frequency within all other cities: 2.3
• Monthly GRPs within all other cities: 174
39
39
Spot Markets
40
Vehicle Recommendations
• TV advertisements should appear on cable
TV during shows geared toward children as
the target is highly likely to watch networks
and channels such as:
ABC Family
Disney channel
Cartoon Network
Nickelodeon
Sprout
• Advertisements should also appear during
comedy, reality, comedy-drama and drama
TV shows including:
Modern Family
The Office
American Idol
Glee
Grey’s Anatomy
Parenthood
• Advertisements should appear in women’s
magazines, family and parenting magazines,
fitness magazines and celebrity gossip
magazines including:
All You
Real Simple
American Baby
Parenting
Parents
Fitness
Runner’s World
Intouch Weekly
OK! Weekly
• Radio advertisements should be aired
between the hours of 3PM and 7PM
Genres include adult, religious and
others such as sports, hit radio and country
• Advertisements on websites should be
on social media sites, research sites,
entertainment sites, news sites and sports
sites. Specific websties include:
CNN
Fox News
ESPN
MLB
NFL
Amazon
Barnes & Noble
Ticketmaster
Coupons
Creative Units
• Television commercial length should be
30 seconds to allow enough time to show
the true to life images and get across
messages about the excellent kids menu
and low prices
• Magazine ad size should be FPG 4C
because advertisements that take up the
whole page can really show off the high
quality food at Red Lobster and are hard
for consumers to ignore
• Internet targeted sites should have
banner advertisements because these
are the most noticeable and intrusive to
consumers using the web
• Radio ads should be 30 seconds long
because a long message is not needed to
tell consumers about the location of a
Red Lobster, the kids menu, specials or
any other possible message. Since TV
ads will get across true to life images
of the food, the radio ads can be more
informational and to the point.
41
41
Appendices
1. http://www.darden.com/
2. Darden Timeline retrieved from: http://
www.darden.com/pdf/media/Download_
Darden_Timeline.pdf
3. Darden history retrieved from: http://
www.darden.com/about/photo_history.asp
4. Darden annual report retrieved from:
http://investor.darden.com/files/doc_financials/darden_2012ar[1].pdf
5. http://www.redlobster.com/press/our_
management/
6.http://www.darden.com/restaurants/redlobster/
7. Arumugam, N. (2011). “America’s Best
Chain Restaurants,” retrieved from: http://
www.forbes.com/pictures/ejeg45glj/redlobster/
8. Choi, C and Murphy, T. (2012). “Olive
Garden, Red Lobster Struggle to Revive
Sales,” retrieved from: http://www.huffingtonpost.com/2012/06/22/olive-garden-redlobster-sales_n_1620102.html
9. Reuters (2012). “Promotions Flop;
Darden Cuts Outlook,” Chicago Tribune retrieved from: http://articles.chicagotribune.com/2012-12-04/business/
chi-promotions-flop-darden-cuts-outlook-20121204_1_darden-shares-dardenrestaurants-yard-house-usa
10. “New Red Lobster TV Commercial
“Crabfest” CA. http://www.youtube.com/
watch?v=b8xvM21hf_o
11. Bloomberg Businessweek (2013). “Red
Lobster Launches $3 million Spanish
Language Campaign to Reach Hispanic
Customers.” http://www.huffingtonpost.
com/2013/01/15/red-lobster-spanishcampaign_n_2478935.html
12. This section retrieved from: http://
www.redlobster.com/bar_harbor/
13. Mintel Report, Casual Dining, August
2012
14. Brinker company history retrieved from:
http://www.brinker.com/company/ourstory.
asp
15. Brinker International annual report
retrieved from: https://materials.proxyvote.
com/Approved/109641/20120910/
AR_141110/
16. IBIS World Industry Report of Chain
Restaurants in the US retrieved from: http://
clients1.ibisworld.com/reports/us/industry/
majorcompanies.aspx?entid=1677
17. http://campaign.chilis.com/kidseatfreeagain/
18. http://www.applebees.com/
19. Baertlein, L. (2013). “Cheesecake Factory Pasta on List of Caloric “Food Porn,””
retrieved from: http://news.yahoo.com/
cheesecake-factory-pasta-annual-list-caloric-food-porn-100126516--finance.html
20. “New Red Lobster TV Commercial
“Grill Master.”” http://www.youtube.com/
watch?v=ySl03vqdKNQ
21. http://www.redlobster.com/press/fact_
sheet/
22. This entire section retrieved from: http://
www.redlobster.com/menus/
23. http://www.chilis.com/EN/Pages/home.
aspx
24. http://nrn.com/corporate/chili-s-franchisee-rolls-out-wireless-tabletop-terminals
43