Darden Restaurants : Darden Restaurants : An Advertising ApproachAn Advertising Approach

Participate: Restaurant Coupons Participate: Restaurant Coupons are at stake!!!are at stake!!!

The Beginning of Darden The Beginning of Darden RestaurantsRestaurants

Red Lobster 1960 Red Lobster 1960

Created for casual dining geared toward Created for casual dining geared toward familiesfamilies

Family restaurants boomed during 1970s and Family restaurants boomed during 1970s and 1980s fueled by changing demographics1980s fueled by changing demographics

Darden Restaurants TodayDarden Restaurants Today

Today, Darden Today, Darden Restaurants is Restaurants is composed of three composed of three major national chainsmajor national chains

Red LobsterRed Lobster Olive GardenOlive Garden Bahama BreezeBahama Breeze SonicSonic

Pre-Advertising ResearchPre-Advertising Research

Darden formed a development team in Darden formed a development team in 1980 to investigate the potential for a new 1980 to investigate the potential for a new Italian restaurant in the causal dining Italian restaurant in the causal dining segmentsegment Research revealed that people expected a Research revealed that people expected a

warm, homey place for family gatherings with warm, homey place for family gatherings with lots of foodlots of food

Olive GardenOlive Garden

research uncovered the attitudes & research uncovered the attitudes & demographic trends for the potential new demographic trends for the potential new marketmarket ads depicted large Italian families laughing ads depicted large Italian families laughing

and eating together at large tables and eating together at large tables overflowing with pasta & wineoverflowing with pasta & wine

has over 150 patron customers a year has over 150 patron customers a year comprises 41% of Darden’s total salescomprises 41% of Darden’s total sales

Image AppealsImage Appeals

Saving Red LobsterSaving Red Lobster Lagging salesLagging sales

Marketing ResearchMarketing Research Red Lobster’s Red Lobster’s

challengechallenge Old imageOld image

The New Red LobsterThe New Red Lobster

Changing the menuChanging the menu Regional dishesRegional dishes Physical appearancePhysical appearance StaffStaff

Sales RecoveringSales Recovering

A New ChainA New Chain

Bahama BreezeBahama Breeze Caribbean Caribbean

AtmosphereAtmosphere Performance Performance

AssessmentAssessment

Darden’s Restaurant SuccessDarden’s Restaurant Success

Customer FocusCustomer Focus Demographic TrendsDemographic Trends CompetitorsCompetitors A step aheadA step ahead

Discuss…Discuss…

What role does advertising What role does advertising play in helping these play in helping these Restaurants remain a step Restaurants remain a step ahead of competition?ahead of competition?

AnswerAnswer

Research helps them stay in tune Research helps them stay in tune with their customers’ preferences that with their customers’ preferences that are constantly changing. This is are constantly changing. This is extremely important in advertising extremely important in advertising three completely different restaurant three completely different restaurant chains (seafood, Caribbean, Italian, chains (seafood, Caribbean, Italian, fast food).fast food).

Discuss…Discuss…

What is a management What is a management decision problem facing decision problem facing Darden when it was thinking Darden when it was thinking of launching a new initiative of launching a new initiative to save Red Lobster?to save Red Lobster?

AnswerAnswer

The management decision problem is the The management decision problem is the problem that confronts the decision maker and problem that confronts the decision maker and what the decision maker needs to do. what the decision maker needs to do.

Problem: What can management/advertising do Problem: What can management/advertising do to fix these problems? to fix these problems? Lagging salesLagging sales Tired imageTired image Need for new appearance upgrade in menus, Need for new appearance upgrade in menus,

uniforms, restaurant interiors and atmosphere. uniforms, restaurant interiors and atmosphere. IMAGE-BASED ADVERTISING/PROMOTION IMAGE-BASED ADVERTISING/PROMOTION

Discuss…Discuss…

Define an appropriate Define an appropriate marketing research problem marketing research problem corresponding to the corresponding to the management decision management decision problem you have identified problem you have identified in question 2?in question 2?

Think…Think…

A marketing problem asks: A marketing problem asks: what information is needed and how it can be what information is needed and how it can be

obtained?obtained? Ex. Lagging Sales: How far off are their sales v.s Ex. Lagging Sales: How far off are their sales v.s

projected sales? projected sales? This can be obtained by asking the budgeting and This can be obtained by asking the budgeting and

revenue departmentrevenue department Ex. Tired Image: What image can work for Red Ex. Tired Image: What image can work for Red

Lobster to be new and exciting? Lobster to be new and exciting? This information can be obtained through surveys This information can be obtained through surveys

and focus groups.and focus groups.

Think…Think…

Ex. Need for New Physical Appearance: Ex. Need for New Physical Appearance: What new enticing designs can be What new enticing designs can be formulated for their menus, restaurant formulated for their menus, restaurant interior and advertising?interior and advertising?

This information can be obtained through This information can be obtained through focus groups, surveys, and secondary focus groups, surveys, and secondary data.data.

QuestionQuestion

Based on the definition of Based on the definition of the marketing research the marketing research problem, develop two problem, develop two research questions and two research questions and two hypotheses for each.hypotheses for each.

AnswerAnswer

MRP: Are uniforms a MRP: Are uniforms a hindrance/help to the hindrance/help to the nature of the businessnature of the business

Hypotheses:Hypotheses:Test two stores in the Test two stores in the

same area with same area with different uniforms and different uniforms and see if there is a see if there is a difference in sales.difference in sales.

Think…Think…

MRP: Do alcoholic MRP: Do alcoholic bar areas bring in bar areas bring in sales?sales?

Hypotheses:Hypotheses:Build a new unit Build a new unit

with separate bar and with separate bar and compare bar compare bar

sales vs. total sales vs. total restaurant sales; then restaurant sales; then compare that with a compare that with a restaurant only unit.restaurant only unit.

SonicSonic

What is their campaign about?What is their campaign about? New Breakfast at Sonic?New Breakfast at Sonic? Do you like it? Why/not?Do you like it? Why/not? Let’s see their commercials and discuss Let’s see their commercials and discuss

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