Red Lobster’s and J.C. Penny’s Marketing Advice Case Study

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Red Lobster

Even though Red Lobster has increased its presence in the market through various marketing strategies for its seafood, it must look into certain marketing issues keenly. First, it should consider the extensive use of internet-based technology. Millions of people who are potential customers in every sector have opted to go online to access and buy products and services. A company that wants to thrive must have a well-established website through which it interacts with existing and potential customers. The online platform must have features that enable customers to order the seafood products and pay online.

Second, the company should consider using the mobile application to connect to customers, especially those aged 40 and below who are fond of mobile devices. This group forms the highest percentage of seafood customers and engaging them through mobile applications would increase the sales. Third, the company should improve its human resource management with the focus on employees’ welfare. Motivated employees are more likely to improve their productivity because they will feel satisfied.

Table 1. An illustration shows pros and cons of the recommendations.

Pros	Cons
The establishment of an online presence does not only attract internet users but also a wide range of customers across the world. The youthful generation loves mobile devices and the use of mobile apps will increase Red Lobster’s access to them. A good strategy for human resource management motivates employees to work harder to meet the organizational objectives	Inappropriate security of a business website can expose customers to fraud and this might work negatively against the company. For a better quality of services, the company will incur high costs to establish an outstanding business app. Strategies aimed at motivating employees such as rewards, promotions and training require high amounts of money.

J.C. Penny

First, as a brand that has been in the retail store industry for decades, J.C. Penney can capitalize on its brand recognition to market its products and gain a significant customer loyalty. Second, the company should consider reducing its physical stores while expanding online stores. Many customers of departmental stores can be easily accessed online. Through its official website, J.C. Penney can access its existing and potential customers.

As a result, it will improve its services with the technology as well as its sales. Third, J.C. should examine and solve the major competition issues that interfere with its efforts to capture large market shares. In this context, the company should improve its brand image both online and offline to influence customers positively. Another issue is the marketing strategy in which the company should compare the competitors’ strategies before launching theirs.

Table 2. An illustration shows pros and cons of the recommendations.

Pros	Cons
A brand recognition among customers acts as the selling point of products and services. Customers tend to buy from brand they know. A well-established online store attracts internet users from various parts of the world. As a result, the company improves its services and sales volume. Knowing the competitors strategy will help the company to create a better marketing approach.	Brand identity is complex and expensive to build. At the same time, it is difficult to maintain because of the stiff competition in the retail industry. The cost of establishing a robust and secured website is high. However, relying on the competitor’s strategy might reduce product differentiation aspects.

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