Red Lobster Harvard Case Solution & Analysis

Red Lobster a casual dining restaurants chain in United States founded in 1968 by a restaurant entrepreneur Bill Darden. Red Lobster aimed at providing fresh, and top quality seafood to the Americans. The restaurant had dramatic growth in the industry due to high demand for seafood in the market. In 1970, the chain was sold to the General Mills Restaurants Inc.As there was huge potential in market the chain nearly became the first and largest chain of casual seafood dining restaurants. By 1985, the restaurant expanded to 400 different locations throughout the United States, and became the only restaurant that had a computerized point of sales, and offered fresh seafood, and non-seafood items on its menu.
High demand of seafood in the market led to quick growth. Red Lobster had market share of 43% that made it market leader. The Red Lobster emphasized freshness of the food, and quality of products. But, due to positioning of the Red Lobster customers perceive it as frozen food casual dining restaurant. The perception led to major issues such as the customers traffic to restaurants was declining, and segmentation of the Red lobster lacked in targeting the right customers through marketing, advertising, and by other means.
The competition in the market was increasing as the number of casual dining restaurant chains was increasing in the United States. Red Lobster was positioned as fresh, and quality seafood provider, but customer could not perceive it. So, it is a major concern for Red Lobster that how should it position itself in the market, and whom should it target, and does it have the right marketing strategy? Or its Menu lacks some of the major growth drivers?
Red Lobster Harvard Case Solution & Analysis

Problem Statement
How could Red Lobster position itself in market as fresh and top quality seafood casual dining restaurant chain? And lead market by front with all operational efficiencies emphasizing on creating value for customers?
Question No.01: Assess Lopdrup’s management of the Red Lobster brand between 2004 and 2010
Management of Red Lobster
Kim Lopdrup has an experience of more than 25 years in the restaurants chain in the United States. He continued the operations and took over Red lobster as president, and he just discovered that issues with the Red Lobster were impropermanagement, and more marketing related. Two important categories were focused on one operational efficiency, and marketing related problems. Lopdrup knew through a survey that Red Lobster was unfortunately perceived as a low end place, serving mass-produced, and frozen fried seafood casual dining restaurant. Its position did not represent the strategy it adopted.
There are two potential reasons behind that one that Red Lobster has consistent discounts on the menu list, and second that it has not created value for the customers. Discounts on the menu list portrayed the picture of Red Lobster as a provider of low quality frozen and fried seafood only. Red Lobster has such an environment in the restaurants, thephotos of fried, and frozen seafood on the wall allowed customers to draw conclusion on that basis, and consider it as alow end place of frozen food, and question the quality of food.................

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