Company Case 6, “Darden Restaurants: Balancing Standardization and Differentiation.” (p. A10),
Question 1
Behavioral Segmentation - The sit-down market segment has been experiencing a decline in the number of customers who are patronizing to sit-down style restaurants such as those owned by Darden. It is believed that this is a result of the economic decline may be prompting customers to be more careful in the use of their discretional income.
Geographic Segmentation - Darden’s Longhorn chain is primarily located in the eastern half of the country which will provide future opportunities in regards to expansion.
Demographic Segmentation - Darden’s strategy in regards to the Red Lobster chain is an excellent example of Demographic Segmentation. He identified the gap between the white tablecloth style restaurant and the fast food chain and he filled that void with Red Lobster.
Psychographic Segmentation – Darden’s Olive Garden chain of restaurants have effectively created a contrived Italian family to ensure that those customers seeking emotional nourishment find what they are looking for. Olive Garden marketing discovered that their customers were looking for more than physical nourishment.
Question 2
The Darden Company has done a very good job at downplaying the common ownership of their restaurants and maintaining their distinct brands. The number of brands under Darden ownership is very impressive, especially considering that before this report I had never heard of the Darden Company; Eddie V’s Prime Seafood, Wildfish Seafood Grille, The Capital Grille, Bahama Breeze, Seasons 52 and the Yard House are all Darden endeavors. Each of these business lines are positioned to meet specific customer needs without belying their corporate ownership.
Question 3 While the standardization of the kitchen operations promotes an efficient and cost effective program, it can also lead to each brand becoming more like the