JoeCrotty

PeterJames
Marketing2201
3/16/16

DardenBrands

Marketing2201DardenBrands

DardenBrandswas foundedincentralfloridain1968theirfirstrestaurant,Red
Lobster was a smashing success. In the late 1980s Darden was acquired by general
mills. Following the .com market crash, Darden Brands was sold to a private equity
groupandshareswereissued.Thissetupremainstothisday.

Theirbrandgrewto8differentlinespre2008.Dardeniscurrentlyclimbingout
ofatryingfinancialandmanagerialtimes,howevergreatfood andgoodserviceisonly
one part of recovery. We will break apart Darden Brands and discover a different
marketingstrategythatwillallowthemtosucceedinthefuture.

Dardens current Mission be financially successful through great people

consistently delivering outstanding food, drinks andserviceinaninvitingatmosphere,
making every guest loyal! However a mission is nothing if youdon'tstriveto improve
Darden focusesontheircommitmenttosustainability, employeedevelopmentinorder
topromotewithin,returntoprofitability

Darden is experienced in the hospitality with nearly 40 years of industry

experience.Darden restaurantshasawideportfolioofrestaurantsthatappealstoawide
demographic. Their varied brand allows themtofocuson manytarget markets,onthe
lowerendOlive Garden,LonghornSteakhouseandBahamaBreeze.Theyalsocatertoa
more higher end clientele with brands such as Capital Grille, Seasons 32, Eddie Vs.
TheyarealsofocusingonemergingmarketswiththeirYardhousechain.

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Mismanagement and over expansion came back to bite the growing brand, in
2014Dardendecidedtoselltheunderperforming RedLobsterBrand.Onthesameday
the sale was complete the CEO Clarence Otis Jr., resigned amidcontroversy. Through
the chaos, emerged multiple issues with the company, Olive Garden was accused of
wasting breadsticks, as well as paying its general managers much lower than the fair
marketprice.Inadditionin Octoberof2014theentireBoardofDirectorswasvotedout
by the shareholders, in favor ofafresh outlookandmanagementstyle.Lastfiscalyear
Darden posted a loss of474.33milliondollarshoweverthey increasedtheirrealestate
andcurrentassetsbynearlyabilliondollars

Dardensportfolioof brandsservesawiderangeofguestoccasions,fromdinner
withfamilyatOliveGardenorLongHornSteakhousetocelebratingaspecialoccasionat
TheCapitalGrilleorcatchingupwithfriendsoveroneofthe100+beersatYardHouse.
No matter the brand, were focused on culinary innovation and execution, delivering
attentive service to each and every one of our guests, and creating an inviting and
engagingatmosphereinsideourrestaurants.(Darden.com)

Dardens Brands targets the middle class market. As well as the younger
demographic by focusing on integrating technology intotheir restaurants.Inaddition,
theyaretheworld'slargestproviderofFullServiceDining

Marketing2201DardenBrands

Each of theirrestaurantsaretargetedatdifferentmarkets YardHousepresents

itselfasanupscaleCraftBeerGastropub,theyofferover100beersontap.Thisdivision
ofthe companyis thefastestgrowing due totheexplosionofthe craftbeermarketand
thegrowingyoungermarketandtheirraisedexpectationsforserviceandquality.

Olive garden is viewed as the tacobell of italian food. However, Darden is

tryingto change thatbyupdatingmenu items,andintegratingtechnology.Olivegarden
is the goto for middle class families looking for an affordable and consistent meal
worldwide. OliveGardenis integratingnewitemssuchasglutenfreedishes,andlighter
morehealthconsciousoptions.

We Wine. We Dine. We Dazzle. This motto echosthroughouttheentire guest

experienceincludingdryaged steaksandawardwinningwines.AsDardenRestaurants
flagshipbrandcapitalGrillecaterstotheupscalemarketandissteadilygrowing.

Bahama Breeze features live music, strong drinks and focuses on the younger
demographicwhoarejustlookingforacomfortablespacetodrinkandeatgoodfood.

Seasons 52follows theFarmToTableconceptfeaturinglocallysourcedmeats

and produce. This brand is focused on the more affluent young and health, and
environmentallyawareconsumer.

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EddieVs isthestandardstereotypeseafoodandsteakhousejoint.Featuringlive
jazz, freshly flown in fish and old school cocktails. This brandisgearedmoretowards
the upper classmiddle age demographic, with classic drinks and dishes, comfortable
spacesandhighservice.

Longhorn steakhouse is the epitome of american food. They serve steaks,

burgers, cocktails and draft beer. They are marketed towards everyone looking for a
solidhearty,americanfoodatareasonableprice.

Despiteexperiencing someroughtimesover thepast5years,Darden Brandshas

regrouped,shedsomedeadweight,andemergedvictorious.Throughtheircommitment
to service, focus on employee loyalty and brand differentiation, Darden Brands has
proved successful. Darden has set themselves apart by not marketing their middle to
higherendrestaurantsaschainsandmakingthemeachseemindependant.Thisbrings
many more andwealthierpatrons intotheirestablishments.DardenCurrentlycontrols
9.37% (Hoover's) of the Casual Dining market with other groups such as Applebee's
InternationalandBrinkers(Chilis).

DardenBrandsiscurrentlyclimbingoutofalargehole leftbytheirformerCEO.
Inthewake ofthiscrisisDardenmust identifytheirStrengths,Weaknesses,Objectives
and Threats. Darden Brands has many strengths their main strengths seem tobethe
fact that they have a very large customer base, and a well recognized brand (Olive

Marketing2201DardenBrands

Garden, Longhorn Steakhouse). Darden also has a very diverse portfolio, with their
lower end establishments, to their classier and more higher end restaurants. This
strength will allow them to ride outanothereconomicdownturnwithease.Theirfinal
strengthalso seemstobeaweaknessDardenBrands hasnofranchiseoperations.This
allowsthemtoenforcetheirpoliciesdowntotheretailleveleffectively.

In addition, Darden Brands has a few weaknessesthe mainweaknessseems to

be the fact that Darden does not have any franchise operations. This is very capital
intensive and also limits their ability to expand globally. Also, Darden is not a
multinationalcorporationmainlyduetothefactthat

In the quickly and everchanging hospitality environment, Darden has many

opportunities to grow their business effectively. Due to the real estate slump Darden
can acquire new properties for areducedrateinordertoaideexpansioninthe future.
Also, the industry is losing many of its smaller competitors due to the difficulty in
operating, this only expands their market share and growth ability. Darden is also
attempting to redo the HardRock Hotel and cafe model. By offering both
accommodations as welldiningtheyareabletoconsolidatetheconsumersspendingin
oneplace,leadingtogrowth.

Darden also has many threats to its brand they have dealt with some serious
food safety issues, as well as a negative public image that they will have to deal with

Marketing2201DardenBrands

effectively.Additionally,somethreatswillbeinflation,increasingLaborcosts,aswellas
achangeinconsumerhabits.

The casual restaurant industry is highly segmented, with 50% of the industry
dominated by only 20 large corporations. The industry is currently experiencing a
moderate growth (4% Hoovers) with the recovering economy, but they still face
challenges. A new development in the industry is mobile or table POS systems. This
integration of technology is changing the dining experience andpossiblydrivingsome
marketsegmentsaway.Dardenscompetitors arealsogrowingatasteadyrate.Theyall
areinnovating,andmorphingtoprovideauniquediningexperience.

As Darden Brands recovers from years of

mismanagement, the change is quite evident, with
profit margins rising to nearly 15% in contrast to
the roughly 1% profit loss over prior years. The
current advice to investors is to hold their stocks
and let the company grow. Darden has tackled
many issuesfromfailingbrands,mismanagementandaccusationsofwaste. Astheypull
out ofthisslumpDardenBrandsisshowingtheir stripesthatinitiallyhelpedthemgrow
tothepowerhousetheyaretoday.

Marketing2201DardenBrands

As a customer, Darden Brands is morphing their dining experience in order to

create a unique and memorable experience. Darden's, largest profit segment is their
lower end establishments, with Olive Garden and LongHorn Steakhouse comprising
79%oftheirannualsales.Dardenhas investednearly500milliondollarsinrenovating
their restaurants with the bulk of the funds spent on olive garden and Longhorn
Steakhouse.Additionally,theyareattemptingtogetalloftheirrestaurantsononesingle
inhousedigitalplatforminordertoprovidemorecontinuity.

Dardens targetmarketranges frommiddle classwitholivegardenandlonghorn

steakhouse. They also focus on the more affluent and older crowd with EddieVsand
Capital Grille. Their new markets are Bahama Breeze and the Yardhouse which are
focusedontheyoungerandmoreactivemarket.

DardenIsfocusedonprovidingaconsistentdeliciousand healthymealin oneof

their restaurants that will create a lasting impression. Darden sets itself apart by
creating a comfortable and welcoming environment in all of their stores in order to
purveyanimageofnonchain.

Darden is positionedratherwellintheirindustry.Asthe middleclasscontinues

to recover from the recession and begin going out more, spending their money more
freely, Darden will continue to grow. Many companies that have experienced similar

Marketing2201DardenBrands

internal executive issues have not bounced back so well. Darden Brands is set up for
successandwillcontinuetogrowfortheforeseeablefuture.

We have been tasked with developing a marketing plan focused on

bringingDardenBrandsbacktotheforefrontofthecasualsitdowndiningmarket.Asa
result wehavedesignedamarketingprogramspecificallydesignedto pursuethatgoal.
We plan to utilizemoredigitalmarketingonsocialmedia,in storepromotions,aswell
asourconstantexperienceinnovationandimprovement.

Currently we command 9.3% ofthemarket,andwithmostamericansgoingout

to a sit down restaurant12timesaweek(includinglunchanddinner)(IBISWORLD).
Simply put,there isplentyofroomfor growth.A greatprogramthatwealreadyhavein
place is the one for here, one forwhereveryouplease
program at olive garden, as part of our core image and
revenue stream,weneedtopromotethebargainpricing
of this brand. In ordertogetourbestresults, weplan
on following research from the world famous nielsen
company. As shown, the best ROI is using online
marketing. We can tailor our marketing mix to include
differentstreamsthat willbemoreeffectiveindifferentmarkets.Atriedandtrueclassic
is driving the brand's image with television marketing, since the onlythingamericans
like more thaneating,is watchingTV.Eventhoughtheenvironmentinourhigher end

Marketing2201DardenBrands

restaurants does not feel like a chain, we need to push groupon advertisements for
nightonthetown,inordertogetthesepremiumlinesmorepopular.

As part of my research I reached out to Dave Woodley, general manager of

LongHornSteakhousein Bolingbrook,IL.Afterexchangingemails,Mr.Woodleyinvited
me in for a meal. He graciously tookmein, andsurprisinglyasked onlyhowIlike my
steakdone.IrepliedMediumRareinroughly15minutesa24ozporterhouseappeared
out ofthekitchencookedto perfection.Mr.Woodleyexcusedhimselfandwenttocheck
on other tables asIdevouredthesteak.Followingthemeal,Mr.Woodleytook meona
fulltour ofthefacility,IwasratherimpressedseeingashowIhaveworkedinveryhigh
end commercial kitchens in the past. I asked Mr.Woodley a few questions about his
tenurewithDarden (The BolingbrooklocationisownedbyRARE Brands(Asubsidiary
ofDarden)).Hespokeat lengthabouthowtherewassomeunsteadytimeswhenhewas
the manager of a Red Lobster. He thought he was going to lose his job when the
company soldthe brand.However,herevealedthatone ofhissuperiorstoldhim(after
the fact), that they had put him in as manager, in an attempt to refloat the drowning
brand.FollowingourconversationIthankedMr.Woodleyandcarriedonmyway.

Ifeelthatthissortofcustomerinteractionandgreatmanagementona daytoday
basisiswhathasallowedDardenBrandsto growsosuccessfully.If myexperiencewith
Mr.Woodley is indicative of Dardensrestaurantmanagement, promotingandgrowing
thiscompanybacktoprofitabilitywillnotbedifficult.

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Marketing2201DardenBrands

Ifinallyrecommend thatinsteadofadvertisingtoaverybroadmarketyoumake
alloftherestaurant'sbuildarelationship withtheschoolsintheirarea.Runfundraisers
where 50% 0f profits is donated to the school, offer to cater the home and school
meetings at a reduced or free rate, catering the sporting events, and volunteering. By
focusing on that and interacting with the children's mothers (usually) andactingwith
suchprofessionalism,willhelpyouto createanevenstrongerbondandreputationwith
thecommunityandgrowsalesduetowordofmouth.

Darden Brands has encountered someroughtimesinthepastdecadehowever,

with strong management,highstandardsof serviceanddetermination,Darden Brands
willbeabletoexpandindefinitely.

WorksCited
Subsidiaries of Darden Restaurants, Inc. (n.d.). Retrieved March 17, 2016, from
http://www.sec.gov/Archives/edgar/data/940944/000119312510165061/dex21.htm
(n.d.).RetrievedMarch17,2016,from
https://en.wikipedia.org/wiki/Darden_Restaurants

CompanySearchDardenBrands|CompanyInformation|Hoover'sCompanyProfiles.
(n.d.).RetrievedMarch17,2016,from
http://www.hoovers.com/companyinformation/companysearch.html

Newswire.(2009).RetrievedMarch17,2016,from
http://www.nielsen.com/us/en/insights/news/2009/maximizethereturnonyouradv
ertisingspend.html
OurBrands.(n.d.).RetrievedMarch17,2016,from
https://www.Darden.com/restaurants/ourbrands

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