Red Lobster Case Analysis

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RED LOBSTER CASE ANALYSIS Marketing Management & Strategy OVERVIEW Red Lobster is a very successful chain of restaurants that offer a variety of seafood items. The first Red Lobster was founded in 1968 in Florida, by Bill Darden, a restaurant entrepreneur. Red Lobster has become a household name and over the years, gained a good customer base. This has resulted in Red Lobster accounting for 43% of the market share in the casual dining seafood chain division. At the end of 2010, there were 694 Red Lobster locations and total revenue for fiscal 2010 was $7.11 billion. Red Lobster now offers a range of seafood products that include fresh fish, shrimp, lobster and snow crabs. The chain of restaurants grew quickly and was considered part of the “Big 7” of the casual dining chains. SWOT ANALYSIS Strengths: * Red Lobster accounts for 43% of market share and is the largest casual dining seafood chain. * Computerized Point of Sale system is top of the line * Strong supply chain – Leader in casual dining seafood category for distribution. Certified suppliers direct to restaurants through overnight deliveries. * Over 690 restaurants in N.A. | Weaknesses: * Outdated restaurants * No clear vision of who their customers are * Perception of food safety | Opportunities: * Expand product line (broaden food items and wine selection) * Expand or target new customer base; increasing profits * Expand geographic reach (ie: Europe, Asia-Pacific) | Threats: * Supply Chain pressure due to high cost of seafood * Economic state; causing more consumers to eat at home * Aquaculture * Intense competition in category | CURRENT MARKETING PLAN When Kim Lopdrup recognized the need to improve their positioning; a three phased plan was launched immediately. This plan was developed to improve the Red Lobster brand and focused on

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