Beyond November 19

In This Newsletter, We Will Talk About

Here is what you'll gonna learn in the next 7 minutes or less!

1. 110+ Best Book Recommendations from Top Business Gurus
2. 5 Reasons Red Lobster Lost $2.1 Billion
3. 4 Failure lessons from Coalgate's Most Short-lived Product
4. 5 Strategies Athletic Brewing Used to Scale to $800 Million

Here are this Week's Giveaways!

List of 110+ Best Fiction Recommendations from Top Business Gurus

5 Reasons Red Lobster Lost $2.1 Billion

Did you know Bill Darden opened his first restaurant at the age of 19?

Bill Darden and Charley Woodsby founded Red Lobster in Lakeland, Florida, in 1968 Their goal was to reimagine seafood for the average American by offering a casual dining experience with a focus on freshness, quality, and affordability.

Unique Value Proposition

• Affordable Seafood for the Masses: Positioned itself between fast food and fine dining, making seafood approachable for middle-class families. Deals like the Endless Shrimp and Lobsterfest to offer premium seafood at accessible prices.
• Family-Friendly Atmosphere Created a welcoming environment suitable for all ages, with the beaches decor to suit the seafood dining experience.
• Commitment to Quality: Emphasised sourcing from sustainable fisheries to ensure quality and environmental responsibility.

Did you know that Red Lobster is considered to be lucky for struggling celebrities?, multiple people like Chris Rock and Niki Minaj have claimed this that they caught their biggest break right after working in Red Lobster?

Quickly became a Culture Staple:

• In 1974, Introduced Popcorn Shrimp, that became a phenomenon and made it to multiple popculture references.
• By the 1980s, Red Lobster had expanded coast-to-coast, and became synonymous with seafood dining in America.
• By 1990s, Opened locations in Canada, Japan, and other countries, tapping into global markets.
• Launched the famous Lobsterfest, to celebrate the indulgence of lobster with limited-time dishes, with large scale advertising and media campaigns.
• The brand became so big that Beyonce referenced Red Lobster in her song “Formation”, leading to a 33% spike in sales following the song’s release.

But Even the Best Brands Need to Evolve, Red Lobster Didn’t:

• Misguided Promotions Leading to Financial Losses: In 2003, the seafood chain lost $3 Million due to a misjudged and mistimed endless crabs campaign. Customers ate way more than anticipated Crabs during the time when Crab prices were already hitting the roof.
• 2009 Recession: Consumers started to cut back on dining expenditures, especially on mid-tier casual dining experiences.
• Changing Dietary Trends: Menu items were often seen as high in calories, amongst growing concern over healthy and sustainable eating habits. Health-conscious diners opted for restaurants offering fresher, lighter, and more customisable options.

Did you know that Red Lobster lost another $11 Million due to "Endless Shrimp Campaign" after the $3 Million debacle of "Endless crabs campaign"?

Red Lobster’s Legacy:

• Since its Founding, Red Lobster has seen 6 Major Ownership changes, from Bill Darden and Charley Woodsby to General Mills to Darden restaurants to Golden Gate Capital to Thai Union Group. to RL Investor Holdings.
• Red Lobster declared Bankruptcy for the first time in 2024 but exited the same within couple of months itself.
• Adopted a Digital Approach to engage with Consumers, through launch of its Red Lobster Rewards App to engage with its Loyal Customers, during COVID.

5 Strategies which could have Saved $2.1 Billion for Red Lobster:

1. Adaptability: Startups must stay in sync to market trends and be agile in adapting their products or services. Red Lobster was slow to adapt to the growing demand for healthier and more diverse menu options. Solution: Regularly understand evolving consumer needs and preferences and invest in Product Innovation to meet these demands, ensuring your brand relevance.
2. Market Research: Startups should design marketing campaigns that drive growth without compromising financial health. Red Lobster did this miscalulcation on multiple occasions and that strained the company's finances and led to leadership changes. Solution: Before launching promotions, analyse the financial implications thoroughly. Ensure that marketing strategies are sustainable and contribute positively to the bottom line.
3. Innovation: Startups must innovate not just in products but also in customer experience and operational efficiency. Red Lobster's failure to modernize its brand experience made it less competitive against newer, more agile competitors. Solution: Invest in innovation across all aspects of the business. Differentiate your brand by offering unique value propositions to enhance customer experience.
4. Brand Identity: Startups need to ensure that all major decisions reinforce their brand's core values and mission. Red Lobster lost focus in order to cut-costs compromised quality or service, weakened the brand's reputation. Solution: Maintain a clear and consistent brand identity. When making strategic decisions, consider their impact on brand perception and customer loyalty.
5. Embrace Digital Transformation: Neglecting digital channels and modern marketing techniques can result in lost opportunities. Red Lobster was slow to adopt online ordering, mobile apps, and social media engagement compared to competitors and this delayed response resulted in missed opportunities to connect with a younger audience. Solution: Automate digital marketing and be proactive in responsive to cultural trends to strengthen brand relevance.

4 Failure lessons from Coalgate's Most Short-lived Product

Did you know that Colgate had once launched a Lasagna frozen meal?

By 1970s, Colgate-Palmolive had established a trusted brand in oral care, with a strong global presence.

It was around this time, when parallely frozen meals were building a new category in US supermarkets, its primary reason was the growth in the number of working families, looking for convenient dining options.

Seeking new opportunities, the brand wanted to expand into new product categories beyond personal care. Colgate decided to leverage its brand recognition to enter the frozen food market with a line of ready-to-eat meals

Perceived Value Proposition:

• Quality and Trust: Leveraged Colgate’s reputation for quality and reliability in personal care products.
• Convenience: Meals designed for quick preparation, aligning with busy consumer lifestyles.
• Variety of Choices: Offered a range of entrees to cater to different tastes and preferences.
• Healthy Options: Positioned as a healthier alternative to other frozen meals available at the time.

Market Reception:

• Consumers strongly associated Colgate with toothpaste and oral hygiene products and the idea of a toothpaste brand offering food products was off-putting to many consumers.
• This caused confusion in brand equity and diluted the strength of the Colgate brand in its core category.
• The product failed to gain traction in the market. as supermarkets were hesitant to stock the product due to anticipated low consumer interest.

Did you know that tested this category with Colgate Lasagna in a limited test set in Madison, Wisconsin? but had to quickly pulled within weeks!

Severe Impact on Brand Equity:

• Significant resources were invested in product development, packaging, and marketing and the failure led to financial losses due to unsold inventory and marketing expenses.
• Competitors capitalised on Colgate’s misstep to strengthen their market positions in oral care.

4 Lessons to learn from Colgate’s Biggest Failure

1. Brand Alignment: Colgate’s identity was firmly rooted in oral hygiene. Extending into food created a disconnect that confused and repelled consumers. Solution: Startups should ensure new products or services align with their established brand image and customer expectations.
2. Thorough Market Research: Colgate underestimated the negative consumer reaction to the brand entering the food market. Solution: Invest in comprehensive market research to gauge consumer attitudes toward brand extensions or new ventures.
3. Consumer Sentiment: Brands evoke specific feelings and expectations; controlling these engagements and setting expectations is key. Solution: Ensure that new products align positively with existing brand associations to foster acceptance.
4. Brand Positioning: Colgate did not effectively reposition the brand to support the new product line, leading to market rejection. Solution: Develop a strategic positioning plan when entering new markets, possibly using sub-brands to differentiate offerings.

5 Strategies Athletic Brewing Used to Scale to $800 Million

Bill Shufelt and John Walker opened their first dedicated non-alcoholic craft brewery in Milford, Connecticut, U.S in 2017. In 2014, while working in finance, Bill Shufelt recognized a huge gap in the market for high-quality, flavorful non-alcoholic beers.

He wanted to brew a beer that could be enjoyed socially without the negative effects of alcohol. Bill had never brewed beer before, and many traditional brewers were skeptical, even many dismissed the idea as unfeasible.

Bill connected with John Walker, an experienced craft brewer with a deep understanding of traditional brewing techniques. He was also intrigued by potential impact of crafting high-quality non-alcoholic beer.

Unique Selling Point:

• High-Quality Ingredients: Collaborated with local farmers and suppliers to ensure freshness and sustainability.
• Healthy Lifestyle Integration: Emphasized that their products contain less than 0.5% ABV, allowing consumers to enjoy beer without the side effects of alcohol.
• Innovation in Brewing: Their proprietary brewing process involves controlling fermentation to prevent alcohol production.

Ticket To Fame

1. Received overwhelmingly positive feedback from both non-drinkers and beer enthusiasts.
2. Won medals at events like the International Beer Challenge and U.S. Open Beer Championship.
3. First Non-Alcoholic Brewery to win awards in open categories against alcoholic beers.
4. Recognized by Fast Company as one of the "Most Innovative Companies" in the food sector.

"Brews Without Compromise" Campaign

As per the original website sources, Athletic brewing company launched the famous "Brews Without Compromise", The Campaign talked about community of brew lovers share their personal stories. What makes this collection of stories so cool is that it tells the story of how Athletic Brewing Company took the non-alcoholic beer industry by storm.

Financial Milestones:

• Achieved over 500% sales growth year-over-year.
• Raised $17.5 million in 2019, led by Wellington Management Company.
• Raised in 2020, another round of $50 Million, by Dr Pepper.
• In 2024, Closed a $50 million Series D funding round led by General Atlantic, doubling the company's valuation to $800 million.

Did you know that inspite of being a non-alcoholic brand, Athletic’s home brewery in Stratford holds a local taproom open for tastings?

5 Strategies Athletic Brewing Used to Scale to $800 Million

1. Tapping Opportunity: Startups have to realise that at times, Initial skepticism can signal a market gap waiting to be filled, like Athletic Brewing, when they faced rejections, they believed that non-alcoholic beer was possible.
2. Brand Story-telling: Brands with a strong mission resonate more deeply with consumers. Athletic Brewing focused on promoting health, environmental stewardship, and community well-being.
3. Process Innovation: Innovating within traditional industries can lead to breakthrough products. The brand proved this with a new brewing process while respecting the art of traditional brewing.
4. Community Engagement: Athletic Brewing proved that a strong community can amplify your brand message and foster loyalty. They hosted events, supported causes, and engaged customers directly. Its important to invest in building relationships with customers; make them part of your brand's journey.
5. Agility: Startups need to remember that flexibility and adaptability are crucial, especially during unforeseen challenges. The brand adjusted strategies based on market feedback and changing consumer behaviours.