Hit the Travel Jackpot!

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Hit the Travel Jackpot!

• Go beyond database management leverage external
  assets.

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Speakers

• Matt RyanDirector of MarketingHarrahs Reno
• Joe SchatzVice President of MarketingHarrahs
  New Orleans Casino
• Danette DickermanVP Media, Agency ServicesEuro
  RSCG 4D DRTV

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Harrahs New Orleans
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OUTLINE

• Property History
• Unique Operating Conditions
• Marketing Positioning and Strategy
• Strategic Execution 6 Keys to Success
• Results
• DTRV Thinking outside the box

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OUTLINE

• Property History
• Unique Operating Conditions
• Marketing Positioning and Strategy
• Strategic Execution 6 Keys to Success
• Results
• DRTV Thinking outside the box

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Property Stats

• 2,200 Slots
• 100 Table Games
• 2,600 Employees

• 2 Restaurants
• 2 Parking Garages
• 1 Showroom

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Property History

• October 1999 Downtown Casino Opens
• Harrahs owns 49 of casino
• 100M per year guaranteed payment to the State
  of Louisiana
• March 2001
• Tax obligation is greater of 60M or 21.5
• Loosening of hotel restaurant restrictions
• December 2002 Harrahs acquires 100 of casino

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OUTLINE

• Property History
• Unique Operating Conditions
• Marketing Positioning and Strategy
• Strategic Execution 6 Keys to Success
• Results
• DRTV Thinking outside the box

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HNO Operation Conditions

• Restaurant Restrictions
• HNO limited to operating only two restaurants.

• One restaurant can be a
• 400-seat buffet style.

• The other restaurant is limited
• to 150 seats.

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HNO Operating Conditions

• 2nd Level of Property
• No gaming permitted per current lease.
• 2 third-party restaurants with no more than 350
  seats tot
• Limousine Restrictions
• Limited to 3 commercial vehicle licenses.
• Contract Parking Restrictions
• Limited to 275 third party contract spaces

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OUTLINE

• Property History
• Unique Operating Conditions
• Market Assessment Position
• Strategic Execution 6 Keys to Success
• Results
• DRTV Thinking outside the box

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Flight of Business from New Orleans

• During the past 8 years, Louisiana is the only
  state in the Southeast to lose more residents
  than it gained.
• Louisiana experienced a net outmigration of
  144,000 residents. In contrast TX grew by
  255,000 and GA attracted 481,000.

Sources bizneworleans.com, Economist predicts
minimal growth in local area and Business group
chastises Blanco on economic development
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Market Assessment Declining Visitors to New
Orleans

• Convention business continued to decline.

Convention business in New Orleans is down.
Convention attendance in New Orleans is down.
Occupancy
Hundreds of Thousands
Annual occupancy at Ernest N. Morial Convention
Center
Out-of-State Delegates and Exhibitors Attendance
545,509
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Note 2004-07 numbers are projections
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Exploiting New Orleans as a Brand

• A city of perpetual charisma and steadfast
  celebration, New Orleans is heralded most for
  Mardi Gras, Bourbon Street, and a decidedly
  laidback attitude, The Big Easy.
• The city's stay-awhile appeal and close-knit
  community welcomes visitors with the same
  traditional joviality that has made it an
  attractive escape for years.

Source Fast Company, Brand U.S.A. New Orleans
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Shift of Marketing Focus in late 2002

• Prior to 2003 the property was more locally
  focused.
• Decision was made to leverage the facility and
  its location.
• Offer a multi-dimensional gaming vacation
  experience by leveraging relationships with hotel
  partners off-site restaurants.
• Increased efforts to drive cross-property visits
  from the Harrahs Entertainment database

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New Marketing Strategy
Market Definition
Local Market 0 - 49 miles Regional Market
50 - 450 miles National Market 451 Miles
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Competitive Set
Las Vegas
Atlantis
Grand Casino
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Property Positioning

• Harrahs New Orleans is a Must-See entertainment
  attraction in the countrys Must-Visit city
• New Orleans is the Anchor Store

• Harrahs New Orleans is the premier VIP
  destination casino in the premier entertainment
  city

• Continue to establish new relationships and
  strengthen existing ones with appointment
  marketing

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OUTLINE

• Property History
• Unique Operating Conditions
• Marketing Positioning and Strategy
• Strategic Execution 6 Keys to Success
• Results
• DRTV Thinking outside the box

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1 Must Have Hotel Rooms to Grow
Number of hotel rooms purchased by Harrahs
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2 - Food Marketing

• Chef John Besh
• Position Besh Steakhouse as a top steakhouse in
  the city
• James Beard Dinner January 24th, 2004
• Today Show appearance on Dec 8th, 2003
• USA Today on Dec 12th, 2003

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2 - Food Marketing

• Co-market joint ventures
• Gordon Biersch
• Cafés on Canal

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2 Food Marketing

• Use uniquely New Orleans food offerings to drive
  trips
• 17 partner relationships with New Orleans finest
  restaurants.

• Emerils
• K-Pauls

• Restaurant August
• Brennans

• House of Blues
• Mortons

Increased off-property restaurant expense almost
400 between 2002 2004!
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3 Leverage the City

• Mardi Gras
• Bourbon Street
• New Orleans Jazz Fest
• French Quarter Fest
• Sports Marketing

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4 Only in New Orleans VIP Events/Programs

• Monthly VIP Events
• Chairmans Gras Party
• Emeril Event
• Paul Prudhomme Event
• TPC Opening

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4 Alter Advertising Strategy

• Partner with NOTMC to leverage existing New
  Orleans TV media buy
• Shift significant portion of advertising spend to
  key regional feeder markets
• Houston, Atlanta, Tampa
• Focus 60 of commercial on city of new Orleans

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4 Alter Advertising Strategy

• Develop response driven campaign with key partner
  to measure results
• Southwest Vacations
• Utilized Harrahs database in Houston/Tampa with
  tiered offer fulfilled by Southwest
• For Acquisition, Co-market air offer with
  Harrahs advertising
• 2nd rollout of strategy utilizing same tactics in
  Q4 2004

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5 Thats Entertainment
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5 Thats Entertainment

• Saenger Theatre Partnerships
• Phantom of the Opera
• The Producers
• Seinfeld

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6 Develop Must See Amenities

• World Class Hotel

• 450 rooms
• 22 suites
• 1 restaurant

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6 Develop Must See Amenities
Second Floor Development

• Entertainment complex
• 2 Restaurants
• 12K Square Foot Night Club
• VIP Lounge
• Event Center

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6 Develop Must See Amenities

• Fulton Street Changing the face of
  entertainment in
• New Orleans

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OUTLINE

• Property History
• Unique Operating Conditions
• Marketing Positioning and Strategy
• Strategic Execution 6 Keys to Success
• Results
• DRTV Thinking outside the box

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HNO Gross Gaming Revenue by Month
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Revenue Facts Figures

• Double Digit Revenue growth in 2004 through first
  8 months
• Almost 50 growth in the National Business
  segment in 18 month period over period comparison
• Over 40 growth in the VIP business segment in 18
  month period over period comparison

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Revenue Facts Figures

• Regional Advertising Strategy
• Tampa Market
• Jan '03 11 ranked MSA 29 YOY growth
• Aug '03 6 ranked MSA 128 YOY growth
• Houston market    
• Jan '03 3 ranked MSA 11 YOY growth
• Aug '03 2 ranked MSA 35 YOY growth

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OUTLINE

• Property History
• Unique Operating Conditions
• Marketing Positioning and Strategy
• Strategic Execution 6 Keys to Success
• Results
• DTRV Thinking outside the box

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DRTV Thinking outside the box

• With new DNC rules, DRTV can establish
  relationships with customers
• You can market to consumers you pull them in
• Consumers reach out

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What travel companies and destinations are using
DRTV?

• Harrahs New Orleans Casino
• Sandals Resorts
• Carnival Cruise Lines
• Priceline.com
• Florida Vacation Guide
• Travelocity
• 1-800-Go-Hawaii

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What is DRTV

• Whether delivered via infomercials, short-form
  DR, home shopping, or via the web, DRTV is
• Personal selling of the digital age
• Time DRTVs greatest asset

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Why should you invest in DRTV?

• Longer length messages
• 60-seconds, 2-minutes, and ½-hour
• More efficiently priced media
• Short-form 40-60 of general media
• Long-form fraction of equivalent general media
• Accountability measurable ROI goals
• Ability to collect consumer data at point of call

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What does DRTV Cost?

• Creative/Production
• Short-form 50,000-300,000 range(2001 AAAA
  survey of 30s was 358,000)
• Long-form 150,000-600,000 range
• Call center, fulfillment, merchant accounts
• Objectives of campaign drive these costs
• Media
• Direct sale viability tests investment of
  25,000-50,000 to get consumer read
• Retail driver, database, etc tests investment
  of 4-6 week minimum, 75,000-200,000 per week

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DRTV Basic Facts

• Success ultimately measured through calls,
  sales, visits (consumer action) vs. GRPs,
  impressions, etc
• Cost per call, cost per order/acquisition, media
  ratio
• Communications patterns
• Value creation/justification
• Repeated key messages
• Strong sense of urgency for consumers to take
  action
• Message oriented toward selling
  products/acquiring consumers

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Who Buys from DRTV?

• Two-thirds of adult Americans watch DRTV
• People who buy products -
• 59 are employed full-time
• 55,000 mean income
• 33 live in the suburbs
• 60 married with children