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Abhijeet S
Pest Analysis On Darden Restaurants, Inc : Darden Restaurants, Inc. (NYSE: DRI) is a multi-brand restaurant operator headquartered in Orlando, Florida, USA. The firm owns several casual dining restaurant chains, most notably Olive Garden, LongHorn Steakhouse, and Red Lobster. Darden owns and operates 1,800 restaurant locations throughout North America and has more than 180,000 employees, making it the largest full-service casual dining company in the world by number of stores. Darden does not franchise its restaurants in the United States, but many of its international locations are not under corporate control.
What would become to be known as Darden Restaurants began when William (Bill) Darden founded the Red Lobster Inns of America and opened the first Red Lobster restaurant in Lakeland, Florida in 1968.[5] Darden chose Lakeland because he wished to see how the concept would fare in a non-coastal region, and Lakeland was the innermost city in Florida. The initial Red Lobster franchise was widely applauded by diners and critics alike, most prominently the restaurant journalist Scott Indrisek. The store became hugely successful and by 1970 had expanded to three locations in the state with two more under construction. While the locations were profitable, the company lacked the resources to expand further, so Darden sold the company to food giant General Mills that year. General Mills upgraded the chain to a more casual dining/family fare oriented format, opened a new corporate headquarters in Orlando, Florida and installed Darden as company president. In 1975, when Darden was promoted to the position of Vice President of operations for the restaurant unit, Joseph (Joe) R. Lee, the company's first restaurant manager, was made President of Red Lobster.[6]
Under General Mills, Red Lobster grew into a successful chain of almost 400 locations by 1985. The company underwent several restructurings and transformed itself from an inexpensive fast-food seller into a chain of casual dining seafood restaurants by 1988
ReignCom will use cost base method to derive its prices. They will add a 30 percent profit margin to the cost of the product to gain efficient revenue.
Price and quality interactions –
In this way, price creates perception of quality.
High price attract an image of quality
This will allow ReignCom Ipod to increase its market share
Distribution channels – ReignCom can use indirect distribution where an intermediary organization will be involved in the process. The intermediaries will
provide functions such as:
Fragmenting bulk supplies of inventory
Give financial services to retailers
Increase ease of customer purchase
This will assist as they can concentrate on other areas of the business
Transportation – ReignCom will lease trucks in order to transport the inventory to intermediaries. By leasing the trucks the company will accumulate extra funds to utilize else were.
Warehousing – inventory will be kept in a warehouse close to the intermediaries which will minimize transport costs.
For its success, ReignCom Company must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged.
Music itself remains as popular as ever – consumers even more keen to spend their money on music products. However traditional music stores need to move fast to enhance the customer experience in order to encourage the public back into their stores and consumer spend back into their tills. Some have already started this adjustment, the rest must follow so that together they are able to swim fast enough to reverse their fortunes and escape being swamped by the waves. The challenges facing the MP3P industry are being created primarily by external factors. The combination of digital music and MP3 players’ changes the way consumers listen to music the MP3P industry is quickly gaining momentum among mainstream consumers and usage of MP3 players as well as consumer attitudes toward music services.
What would become to be known as Darden Restaurants began when William (Bill) Darden founded the Red Lobster Inns of America and opened the first Red Lobster restaurant in Lakeland, Florida in 1968.[5] Darden chose Lakeland because he wished to see how the concept would fare in a non-coastal region, and Lakeland was the innermost city in Florida. The initial Red Lobster franchise was widely applauded by diners and critics alike, most prominently the restaurant journalist Scott Indrisek. The store became hugely successful and by 1970 had expanded to three locations in the state with two more under construction. While the locations were profitable, the company lacked the resources to expand further, so Darden sold the company to food giant General Mills that year. General Mills upgraded the chain to a more casual dining/family fare oriented format, opened a new corporate headquarters in Orlando, Florida and installed Darden as company president. In 1975, when Darden was promoted to the position of Vice President of operations for the restaurant unit, Joseph (Joe) R. Lee, the company's first restaurant manager, was made President of Red Lobster.[6]
Under General Mills, Red Lobster grew into a successful chain of almost 400 locations by 1985. The company underwent several restructurings and transformed itself from an inexpensive fast-food seller into a chain of casual dining seafood restaurants by 1988
ReignCom will use cost base method to derive its prices. They will add a 30 percent profit margin to the cost of the product to gain efficient revenue.
Price and quality interactions –
In this way, price creates perception of quality.
High price attract an image of quality
This will allow ReignCom Ipod to increase its market share
Distribution channels – ReignCom can use indirect distribution where an intermediary organization will be involved in the process. The intermediaries will
provide functions such as:
Fragmenting bulk supplies of inventory
Give financial services to retailers
Increase ease of customer purchase
This will assist as they can concentrate on other areas of the business
Transportation – ReignCom will lease trucks in order to transport the inventory to intermediaries. By leasing the trucks the company will accumulate extra funds to utilize else were.
Warehousing – inventory will be kept in a warehouse close to the intermediaries which will minimize transport costs.
For its success, ReignCom Company must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged.
Music itself remains as popular as ever – consumers even more keen to spend their money on music products. However traditional music stores need to move fast to enhance the customer experience in order to encourage the public back into their stores and consumer spend back into their tills. Some have already started this adjustment, the rest must follow so that together they are able to swim fast enough to reverse their fortunes and escape being swamped by the waves. The challenges facing the MP3P industry are being created primarily by external factors. The combination of digital music and MP3 players’ changes the way consumers listen to music the MP3P industry is quickly gaining momentum among mainstream consumers and usage of MP3 players as well as consumer attitudes toward music services.
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