Problem: | Should the Red Lobster change its position to focus on experiential or not? And what changes should be made in Red Lobster’s offering to the experiential before they remodel all of their restaurants? |
Objective: | 1. Increase sales and profitability. 2. Encouraging guests to reevaluate and reconsider Red Lobster as a quality seafood dining experience at an affordable price. 3. Lower the cost. |
Alternatives: | 1. Reposition, make experiential the target customers. 2. Keep the current position. |
Consequences: | The main benefit from this would be the fact that the experiential groups is considered one of the best customers for a casual dining chain and were predominantly profitable because they are more likely to order desserts and appetizers and wine. Also this group tends to order more items and are less price sensitive compared to the other groups of indulgent, frugal, and traditionalist. However if Red Lobster decided to focus on this group there would be many changes need towards the product, price, place, and promotion. Since the experiential have very high culinary standards and high expectations for service and atmosphere, Red Lobster needs to provide a high standard service hire friendly and passionate servers, remodel their current stores to a more upscale restaurant, the space had to provide clues to all senses that the seafood is fresh and of top quality where guests would feel they are dining at a “special” restaurant – nicer than ordinary casual dining and the atmosphere had to be appropriate for multiple occasions. This will attract more experiential, but would be very costly for the company. In regards to promotions alterations would also be required. With Red Lobster currently offering many price promotions to draw in the frugal and more price sensitive groups this would not be an issue with the experiential. Based on providing what experiential wants, Red Lobster could raise the price a little bit, this would be a...