Atlantic City: Always Turned On

1
Atlantic City Always Turned On

• MBA 560 Marketing Management
• Dr. Kathleen M. Dominick
• August 14, 2005
• Brent Baker

2
Executive Summary

• This plan outlines a way to increase revenues
  from tourism for the city by increasing the
  number of repeat and first time visitors and
  increasing the amount of gaming and non-gaming
  revenues. The way this will be accomplished is by
  creating a new catch phrase and image, building
  entertainment options beyond gaming for the
  energetic, spendthrift, young generation,
  creating a positive, memorable customer
  experience, and by recognizing current strength
  and weaknesses and potential opportunities and
  threats.

3
History

• 1852 NJ businessmen received a railroad charter
  from Camden to Atlantic City
• Shortest distance from Philly and the Sea, AC
  grew as a resort town
• 1870s Boardwalk had been added
• September 8, 1921 Miss America Debuts
• 1934 Monopoly debuts
• 1950-1976 air travel increases competition from
  Florida and The Caribbean
• 1976 AC legalized gambling

4
Situation Analysis

• Consumer confidence is at 103.2, compared to 84.9
  back in fall 2001 and 83.5 as recently as summer
  2003
• Strong economy with low unemployment
• Gambling as a fad
• 2003 regional survey estimates more than 30 of
  high school students gamble periodically
• World Series of Poker
• Integration of Technology
• Peoples perception on gambling

5
Market Summary

• Demographic
• Males and Females Equally
• Target market shifting from 35-65 to 21-40
• Upper Middles, Middle Class, Working Class

6
Market Summary (cont)

• Geographic
• Over 6.5 million adults live in NJ
• Over 42 million adults live within 300 miles
• Over 8 million are 21-40
• 37 million visitors last year

7
Customer Profiles

• Psychographics
• Innovators
• Experiencers
• Survivors

8
Customer Profiles (cont)

• Behavioral
• Occasions
• Within 1 hour - Mostly weekends and sporadically
  weekdays
• More than 1 hour -Weekends only
• Benefits Sought
• Road Warriors
• Generation F
• True Blues

9
Customer Profiles (cont)

• Behavioral (cont)
• Usage Rate
• Medium and Heavy User
• Loyalty Status
• Relevant from individual casino perspective
• Irrelevant from AC perspective
• Attitude
• Enthusiastic
• Positive
• Indifferent

10
SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats

11
Strengths

• Shore
• Plethora of alternative activities
• Experience in Entertainment

12
Weaknesses

• Negative Image Perception
• Gaming and beach only resort
• Management - Labor Union Relationships
• Cannibalization by Expanding Gaming

13
Opportunities

• ReMarket and ReBrand
• Airport Gambling
• Las Vegas 40 casinos vs. AC 12 casinos approx
  same 4.5 billion gaming revenue, 6 billion non
  gaming revenue vs. 325 million
• Professional Sports Betting

14
Threats

• Increased gambling initiatives
• Gambling becomes a non-differentiable product
• VLTs in the Meadowlands
• Online Gambling

15
Competition

• PA legalizes 61,000 slot machines in 14 locations
• DE and CT already have gambling
• MD may legalize gambling

16
The Product

• Tourism
• Entertainment
• Memories
• Gambling
• Shore
• Shopping

17
More Products

• Atlantic City Outlets-The Walk 41 stores
• 76 million investment
• Nautica, Banana Republic, Tommy Hilfiger, Guess
  and Kenneth Cole, Ultra Diamonds
• The Pier at Caesars 90 stores (2006)
• Hugo Boss, Armani and Burberry
• 175 million

18
More Products

• Tropicana Havana Themed The Quarter
• 280 million investment
• 3 story indoor streetscape
• Brooks Brothers
• IMAX theater

19
Marketing Strategy

• Reinvent itself
• Rename slogan Americas Favorite Playground to
  Always Turned On
• Trump Hotels Casino Resorts to Rename Trump
  Entertainment Resorts

20
Marketing Strategy (cont)

• 21 Custom Pictures
• 12 casinos and 9 other images
• Informative Advertising
• Reminder Advertising

21
Marketing Mix

• Price
• Promotion
• Customer Service

22
Price

• Price sensitivity of target market
• Pricing method
• Price-quality inferences

23
Promotion

• TV ads
• Miss America - CMT, VH1, MTV
• Product Placement
• Branding
• Memorable
• Likeability
• Transferable
• Branded Variants with Individual Names

24
Customer Service

• High Quality Service on all Customer Touch Points
• Visitors Welcome Center built on the Atlantic
  City Expressway
• Gazebo-style information booths have been placed
  intermittently on the boardwalk

25
Customer Service (cont)

• Survey for departing tourists to complete via IVR
  or WWW (Rate 1-5)
• How enjoyable was your overall experience?
• How satisfied were you with the hotel
  accommodations?
• How satisfied were you with the dining
  facilities?
• How satisfied were you with the entertainment
  experience?
• How satisfied were you with your travel
  experience?
• How enjoyable were the employees to interact
  with?
• How appropriately priced was your visit?

26
Customer Service (cont)

• How likely are you to return to Atlantic City
  within the next 12 months?
• What was your primary reason for visiting
  Atlantic City
• gamble
• boardwalk and beach
• concert or show
• bars and clubs
• convention
• shopping
• other

27
Financials and Controls
28
Controls

• Verify target goals will be met with quarterly
  data analysis
• Unique and repeat customers
• Demographics of Visitors
• Customer Service Satisfaction
• Gaming and Non-Gaming Revenue
• Total Expenses
• Contingency Plan
• Future Goals
• Employee Satisfaction
• Customer Suggestions

29
Conclusion

• New Atlantic City
• Increase Customer Base
• Increase Non-Gaming Revenue
• High Customer Satisfaction
• Data Analysis

30
Questions
31
Maps
32
Partial References

• Atlantic City Press Newspaper
• NBC 40 Television
• http//www.atlanticcitynj.com/
• http//www.acoutlets.com/
• http//www.accenter.com/
• http//www.state.nj.us/casinos/
• http//www.njcrda.com/home.html
• New Jersey Business Magazine
• New Jersey Municipalities Magazine
• NJN News