Vanessa Rojas
Ph.D. Gheorghiu
BU 203
10/25/2014
Company Case 6: Darden Restaurants 1.) Darden displays geographic segmentation with the different cultures each restaurant portrays. The Longhorn steakhouse chain has a majority of its restaurants in the eastern half of the United States, giving it room for westward expansion. It portrays a Western rancher’s home and Olive Garden portrays an Italian family farmhouse. In demographics segmentation, Red Lobster filled the gap in the market between the still-young fast-food concept and upscale white-tablecloth restaurants. In psychological segmentation, Olive Garden builds a dining experience around the concept of a mythical Italian family. Olive Garden’s research shows that people go to a restaurant for emotional as well as physical nourishment. In behavioral segmentation, there is a drop in the frequency that diners are eating out at sit-down meals because of the economic decline. This is realized in usage rates. 2.) It’s believed that Darden has differentiated and positioned its brand effectively. All these chains have the same owner, but are completely different. They target a variety of different consumers. Darden is constantly tweaking its formulas to achieve the best mix of independence and collaboration among its brands. The different chains might use the same technologies for cooking and resources, but each brand retains its distinctive positioning. Red Lobster has changed its positioning for the concept of “stealth health”. The chain developed a new menu around wood-fired grilling as an option instead of only fried seafood. They spent $350 million in remodeling, but the chain was recently dubbed “best sit-down chain in America” by Men’s Health magazine. 3.) Different approaches can be better for each brand. Red Lobster’s endless shrimp could backfire if the shrimp population decreases. The same might go with other practice of “endless choices”. Olive Garden’s endless salad and bread sticks might not be a big deal because it has a low cost and is renewable, but it could still backfire.