Red Lobster promised customers an endless supply of shrimp for $20 — a gamble the struggling restaurant chain hoped would help pull it out of its pandemic doldrums.
Click here to read the story at latimes.com.
Discussion Questions:
- What is price?
- What factors influence price?
- Why is price an essential part of the marketing mix?
- What are the other components of the marketing mix?
- What is promotion?
- Why do businesses and brands offer promotions?
- What is the promotions mix?
- What are the different types of promotion?
- In business, what must happen for a business to make a profit?
- Describe Red Lobster’s “endless shrimp” promotion, based on information from this news story.
- Why do you think they launched the promotion?
- What is a loss leader?
- Why do businesses use loss leaders as part of their promotions strategy?
- Based on what you learned in this news story, explain why Red Lobster’s “ultimate endless shrimp” promotion was a failure. How did price impact the promotion’s inability to provide the company with a profit?