Abstract
Red Lobster, a 40-year-old chain of seafood restaurants, has just completed some market research revealing an opportunity to shift its target customer segment. The chain is in the final stages of a 10-year plan of rejuvenation under CEO Kim Lopdrup. When he took over as CEO in 2004 the chain was closing restaurants and suffering declining same-store sales and declining customer satisfaction. But in 2010, even in a recession, the fortunes of the chain are improving. A recently commissioned market research study has revealed, unexpectedly, that 25% of Red Lobster's customers are "experientials," people coming for a "good evening out" rather than Red Lobster's traditional core customer who came because of a craving for seafood. Should this news cause Lopdrup to do anything differently?
Keywords: Advertising;
Customer Satisfaction;
Marketing Strategy;
Consumer Behavior;
Research;
Segmentation;
Food and Beverage Industry;
Citation:
Bell, David E., and Jason Riis. "Red Lobster." Harvard Business School Case 511-052, February 2011. (Revised from original September 2010 version.)