Marketing Currents - Business and Marketing Current Events

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?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.

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