Red Lobster Case Study Essay
Background Red Lobster was originally founded in 1968 and gained tremendous popularity since at the time, mainstream Americans ate very little seafood, finding it hard to get, difficult to cook at home, and expensive. Red Lobster made seafood accessible, approachable, and affordable for just about everybody. Even with their instant success, Red Lobster by 2004 was becoming out of date and out of touch with today’s customer. Kim Lopdrup took over as president in 2004, initiating an aggressive turnaround program and a three-phased plan to save Red Lobster. In the following case study analysis our team has evaluated Red Lobster throughout the innovation.
Who were Red Lobsters target customers pre-2004? Prior …show more content…
How did he use market research? What did he find? Discuss this as well as other things he may have wished to examine. Lopdrup used several different types of market research to learn more about consumers’ perceptions of Red Lobster and how they could use this information to better the company. First, Lopdrup used a consumer survey that surveyed 857 customers that visited Red Lobster in the previous year. The survey focused on 11 restaurant attributes and participants were asked to rate the importance of each attribute on a 7-point scale. Following this survey, Lopdrup gained valuable information that helped reposition the company in 2004. The survey results found “freshness” was the most important attribute of seafood, which also found Red Lobster trailing competitors in this attribute. The survey also showed Red Lobster was lagging in Quality and Taste/Preparation. Finally, the survey also found that the seafood market was divided in two categories: high end, which had top quality and culinary expertise, or low end, which was mass-produced seafood. Consumers viewed Red Lobster in the low end. The second form of market research that Lopdrup used was through a marketing