Marketing Currents - Business and Marketing Current Events

Red Lobster raises price of unlimited shrimp promotion because it’s too popular


Red Lobster’s parent company, Thai Union Group, disclosed earlier this month that the seafood chain took an unexpectedly large loss in the third quarter of the year because its $20 shrimp promotion wasn’t very profitable and was more popular than the company anticipated.

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Discussion Questions:

  1. What is price?
  2. What factors influence price?
  3. Why is price an important 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. Why would Red Lobster offer an unlimited shrimp promotion? What do you think the company’s goal was?
  10. Why do you think they underestimated how popular the promotion would be?
  11. If the promotion was more popular than they thought it would be, why would they want to change it?
  12. According to information from this story, why wasn’t the promotion profitable?
  13. A Red Lobster spokesperson called the “Endless Shrimp” promotion iconic. How does that explain why they chose to keep it on the menu, despite the fact that it was not profitable?
  14. Do you think the promotion will continue to be popular despite the price change? Why or why not? Be prepared to discuss your answers in class.
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.