Darden restaurants price discounts are a good move for firm

Assignment Help Marketing Management

Reference no: EM13732126

DARDEN RESTAURANTS CHANGES TACTICS TO APPEAL TO CONSUMERS' CHANGING TASTES

Darden Restaurants, owner of chains such as Olive Garden and Red Lobster is experiencing the consequences of marketing complacency. It is a well-known fact that large companies have difficulty changing the way they do business, especially if it has proved successful over long periods of time. Darden Restaurants' focus has traditionally been on quality dining. However, with changing market trends, this focus has led to a fall in sales. Consumers are now more concerned about cost, and Darden Restaurants is changing its marketing strategies to address these trends with smaller dishes, bigger appetizers (that could serve as meals), and a new marketing campaign that focuses on value. It is also introducing more nonseafood dishes on the Red Mobster menu to attract different types of customers. However, it must be careful of the effects of psychological pricing on its current customer base. Some customers may see the discount in price as a reflection of lower-quality foods.

The restaurant chains are also moving into vacant strip mall locations to expand and make themselves available to different types of customers. Retailers are welcoming their new neighbors because they can sell some of their parking spaces, and they hope the new restaurants will attract more business for their stores. This strategy will cut long-term costs for the restaurants because some of these existing spaces are large enough to place two restaurants near each other, which enables one truck delivery to service two locations at the same time.

Questions:

1. Why is it easy for companies to become complacent regarding changing market trends?

2. Do you think that Darden Restaurants' price discounts are a good move for the firm?

3. Name some of the advantages of locating restaurants in strip malls. Can you think of any disadvantages?

Reference no: EM13732126

Questions Cloud

Implement social media strategy : You implement social media strategy and begin generating $200,000 in revenue through your Facebook page. At the end your sales are still $1 million. Was your social media strategy successful?

Research on the internet to review the product life cycle : Research on the Internet to review the Product Life Cycle. A consumer product, for example a newspaper

Why is the long-run aggregate supply curve vertical : What is the Aggregate Demand (AD) and Aggregate Supply (AS) curve, in your own words and why is the long-run Aggregate Supply (LRAS) curve vertical?

Swot analysis and consider ways to improve on areas : Students will analyze their individual skills, abilities, traits, and character in detail as a guide as they prepare their SWOT Analysis and consider ways to improve on areas. As students prepare and format their SWOT and identify their strengths,..

Darden restaurants price discounts are a good move for firm : Do you think that Darden Restaurants' price discounts are a good move for the firm? Why is it easy for companies to become complacent regarding changing market trends

Explain the three elements of every negotiation : Explain the three elements of every negotiation. Why is Win/Win used more than Win/Lose in life. When is the efficiency of a negotiation determined? Give an example of in the world today of a good and a bad negotiator

Candidates perceptions of fairness in the selection proces : Discuss the role of the interview in candidates' perceptions of fairness in the selection process. What would you predict reactions to be if interviews were eliminated

Where did it happen and amount of money involved : What was the case about and who was (were) the individuals and companyies involved - when and where did it happen and amount of money involved?

Describe which of the five tools of organizational design : Describe which of the five tools of organizational design your selected organization uses to maintain and improve productivity while achieving cost savings. Use detailed examples in your response.

User Account

All Pages