Circus Circus Enterprise, Inc

1
Circus Circus Enterprise, Inc

• Presented By
• Warren Caruso
• Karen Higgins
• Barbara Morley
• Wade Willett

2
Environment

• Political values
• 1931 Gaming becomes legal in Nevada
• U.S. Government
• Bolder Dam- Air Force Base
• History
• Flamigo Hotel and Resort
• Howard Hughes

3
Image

• Mob Town
• Wild West
• Convention
• Family

4
Las Vegas Marketing Strategy
5
Location of Casinos
6
Mandalay Group

• Properties
• Circus Circus
• Luxor
• Excalibur
• Monte Carlo
• Mandalay Bay
• Silver City and Slots of Fun
• Other

7
Hotel Rooms

• Properties
• Hotel Rooms Gaming Space
• Mandalay Bay 3700 130,000 square ft
• Circus Circus 3744 109,000
• Luxor 4425 120,000
• Excalibur 4008 110,000
• Monte Carlo 3002 90,000
• Silver City/ ------ 35,000
• Slots of Fun

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Economic Trends

• 9/11
• Discretionary funds
• Economic down turns
• Strong European markets
• Upswing in Asian Market

9
Firm

• Competition
• 1997 1996
• StarWood/ITT NA 6,597.0
• Hilton Hotels 5316.0 3940.0
• Harrahs 1619.0 1586.0
• Mirage Resorts 1546.0 1358.3
• Circus Circus 1354.4 1247.0
• Trump Hotel 1399.3 976.3
• MGM Grand 827.5 804.8
• Aztar 782.3 777.5
• Int.Game Tech 743.9 733.5

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Unique Marketing Techniques

• Clocks
• Windows
• Entrances
• Colors
• Sounds
• Comp Cards

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Mandalay Mile

• Convention Center
• Excalibur
• Luxor
• Mandalay Bay
• Mall

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SWOT Analysis

• Strengths
• Location along the strip
• --Value of the real estate
• --First location to be seen when entering from
  highway 15
• Good Cash Flow
• Major Renovations
• --Were completed with internally generated
  revenue
• Large number of hotel rooms
• Solid reputation
• --From providing first class entertainment
  experience
• Diversity
• --Percentage of other properties with major
  players (Hyatt, Mirage)
• Well situated financially to launch new ventures
• Successful marketing strategy
• Good Historical data

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SWOT Analysis

• Weaknesses
• Known as the bargain basement deal
• Properties are not tied together-No brand loyalty
• No reward system for repeat customers
• Web Presence is weak
• --Not customer friendly
• Marketing Strategy will need to change (unknown)
• --Attract upscale patrons
• Lack of Convention Space
• No universal governing agency
• Financial position is set up for hostile take over

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SWOT Analysis

• Opportunities
• Web Site improvements
• --Easy and low costs
• Computer systems developed for real time
  reservations of all properties
• Customer reward system for repeat business
• New markets
• --Women
• --Seniors
• --International
• --Web visitors
• Mergers/Buyouts/ Alliances
• Convention Business

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SWOT Analysis

• Threats
• Legal issues
• Other major players
• Price wars with other major players
• Social and Cultural environmental changes
• --Prostitution
• --Drugs
• Product modifications (digital)

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Problems

• Primary Problems
• Image
• Brand name loyalty
• Need new market
• --Ongoing need to evolve for new changes
• Joint ventures created large competition players
• Website
• Secondary Problems
• 9/11
• Native Americans

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Alternatives for Solving Problems

• Alternatives
• Brand Name Loyalty
• --Combine Names
• Website
• --Create a website to attract
• customers

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Alternatives for Solving Problems

• New Market
• --Women
• --Attract senior citizens for new market
• --International travelers
• --Convention business
• Merger with Mirage

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Alternatives for Solving Problems

• Renovation
• -Tear down Circus Circus-Las Vegas
• Group Summary

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Any Questions?

• Thank you for your attention