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Darden Restaurants Analysis - Essay Example

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The essay "Darden Restaurants Analysis" focuses on the critical analysis of Darden Restaurants. Its main aim is to increase profits by leveraging fixed and semi-fixed costs with sales from new restaurants and increased guest traffic and sales at existing restaurants…
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Darden Restaurants Analysis
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Darden aims to establish itself as the number one full-service casual dining restaurant chain in North America. They hope to expand rapidly in the already established as well as new markets (Mill, 2006). International expansion is facilitated by joining hands with reputed local firms and establishing restaurants in those countries. They hope to internationally promote their brands such as Red Lobster, Long Horn Steakhouse, The Capital Grille, and Seasons 52.

Companies use extensive branding strategies to make their brands indelible in the minds of customers. Given below are 5 levels of brand recognition and how a business can be improved using it:

- Brand rejection: If public opinion is against a product or service a strategy should be launched to change it. If the public associates a brand with something negative, they will purposely avoid buying that product. It is vital to carefully select the logo and slogan of your product or business to highlight customer benefits that can be gained from it. This logo or slogan should be put on everything.

- Brand non-recognition: It is of paramount importance to identify the differences between your product and that of your competitors. These differences should be highlighted diligently. Else your brand may not be recognized by customers because it doesn’t have any outstanding features that differentiate it from competitors.

- Brand recognition: Brand recognition will lure customers towards your product when given a choice between your product and the one they are already accustomed to. It must also be noted that the competitors are also working on brand recognition all the time. This means that there is always the potential that their brands could be more recognizable.

- Brand preference: This stage is attained when value-added products or services that you have tempts your customers to choose your product or service over its competitors. In the case of a restaurant, this could mean having specialty dishes and so on (Morrison, 1996). That is when a customer is given a choice between two brands they select yours over the other one.

- Brand loyalty: This is the final stage to be attained and it’s a great stage to be in. This is where customers will choose your brand repeatedly despite the occasional poor service or even if another product or service comes to the market that seems to cater better to their needs. To achieve this status a product or service that is highly differentiated and value added should be provided. You also need to offer them remarkable service so that they will not be tempted to switch over to any other brand. Having a loyal customer base will mean that even when the going is tough there will be customers to use your products and services.

Darden is keen on retaining its already existing customer base and luring new customers to its restaurants. The locations of restaurants are carefully selected to create a unique impression in the minds of its customers and to convey the company’s brand and image. They aim to be the finest quality food and beverages retailer in the target markets (Muller, 1999).

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