Harrah’s Case

Objectives:

1. Develop marketing-driven company

A. Focus on target customers

B. Increase brand loyalty

2. Solutions

A. Total Gold Program 1997

- Change organizational structure

a. Lines of communication between execs shortened

b. Increased brand cohesion among all Harrah’s properties

- Build Harrah’s brand

a. Connect Harrah’s with feelings of anticipation and exuberance

b. $15-20 million spent on advertising focused on good feelings associated with gambling at Harrah’s

- Extraordinary service

a. Service process design, reward and recognition, measurement of executives

b. Voted “best service” three years in a row

- Relationship marketing

A. Database Marketing

b. Customer Relationship Marketing

Sophia Pappis

1. Customer Relationship Management

A. Database Marketing

1. Proactive Marketing

a. Opportunity-based customer segmentation

i. Total Gold Cards : Develop customer profile

- Tracks play preferences

- Where players eat in casino

- Where players stay

- How often they visit

- How much/long they play

ii. Target Customers

- Players who spend $2000 annually provide 82% revenue

2. Customized Marketing

a. Compared observed value to predicted behavior to id opportunity segments

i. Drive incremental frequency

ii. Drive