Red Lobster offered customers all-you-can-eat shrimp. That was a mistake

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:

1. What is price?
2. What factors influence price?
3. Why is price an essential part of the marketing mix?
4. What are the other components of the marketing mix?
5. What is promotion?
6. Why do businesses and brands offer promotions?
7. What is the promotions mix?
8. What are the different types of promotion?
9. In business, what must happen for a business to make a profit?
10. Describe Red Lobster’s “endless shrimp” promotion, based on information from this news story.
11. Why do you think they launched the promotion?
12. What is a loss leader?
13. Why do businesses use loss leaders as part of their promotions strategy?
14. 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?