Red Lobster Case Study
Positioning changing over time:
In the first years, Red Lobster’s positioning is “affordable” “fresh” seafood. This positioning last from its start till about 2004.
In 2004 after Kim Lopdrup took over as president, he was shocked that consumers put Red Lobster as “low end” places that serving mass-produced, frozen seafood. So he launched a three phased plan to reposition Red Lobster. Phase 1 involved basic operational improvement. Phase 2 is repositioning around “freshness”. Customers had vague understanding of freshness and they thought Red Lobster’s product not fresh mostly because too much fried items on the menu. This phase played the most important role in Lopdrup’s plan (initiated in 2004), and de-emphasizing all fried items and introducing wood-fire grilling are most effective elements. In these ways, Consumer Needs were satisfied and Company Skills were improved. Phase 3 is re-modeling the restaurants, the target of which is becoming nicer than ordinary casual dining but still approachable. This phase started in 2008, and was supposed to redone all restaurants by 2014.
As a results, customer perceptions that Red Lobster “has food that is fresh” had increased significantly according to surveys in 2008. By 2010, internal research found that guest satisfaction was up 14% to 78% excellent”. Everything seemed good at that point.
There are something worth notice: the new 2008 ads (as current ads in question 2) followed the same model of 2004 ones, but focus shift from “wood fire grilling” and ”fresh fish” to “new grilling method” and “freshness”. That means they were introducing new category of cooking method and food that not constrained as “seafood”, a shift in product. It’s extension of introducing wood fire grilling to reposition.
In 2008, Copernicus Company conduct a study to uncover some psychographic segments, and summarized Red Lobster’s customers into 5 categories: Experientials, Indulgents, Traditionalists, Eclectics and Frugals. Lopdrup was
In the first years, Red Lobster’s positioning is “affordable” “fresh” seafood. This positioning last from its start till about 2004.
In 2004 after Kim Lopdrup took over as president, he was shocked that consumers put Red Lobster as “low end” places that serving mass-produced, frozen seafood. So he launched a three phased plan to reposition Red Lobster. Phase 1 involved basic operational improvement. Phase 2 is repositioning around “freshness”. Customers had vague understanding of freshness and they thought Red Lobster’s product not fresh mostly because too much fried items on the menu. This phase played the most important role in Lopdrup’s plan (initiated in 2004), and de-emphasizing all fried items and introducing wood-fire grilling are most effective elements. In these ways, Consumer Needs were satisfied and Company Skills were improved. Phase 3 is re-modeling the restaurants, the target of which is becoming nicer than ordinary casual dining but still approachable. This phase started in 2008, and was supposed to redone all restaurants by 2014.
As a results, customer perceptions that Red Lobster “has food that is fresh” had increased significantly according to surveys in 2008. By 2010, internal research found that guest satisfaction was up 14% to 78% excellent”. Everything seemed good at that point.
There are something worth notice: the new 2008 ads (as current ads in question 2) followed the same model of 2004 ones, but focus shift from “wood fire grilling” and ”fresh fish” to “new grilling method” and “freshness”. That means they were introducing new category of cooking method and food that not constrained as “seafood”, a shift in product. It’s extension of introducing wood fire grilling to reposition.
In 2008, Copernicus Company conduct a study to uncover some psychographic segments, and summarized Red Lobster’s customers into 5 categories: Experientials, Indulgents, Traditionalists, Eclectics and Frugals. Lopdrup was