Harrah's Case Preparation

Problem/Issue Statement

·  Harrah's has been able to use information technology and closed loop marketing tactics to reach their existing customer base and use them for their main source of growth. By gathering as much information as then can about what their customers like, want, and are looking for, they are able to keep them coming back to their properties over and over. Since they have implemented these tactics they have had extreme success with this strategy. However, given the current market conditions, thin profit margins in the gaming industry, and other companies trying to mimic their success, Harrah's has to find a way to maintain their revenues and edge over their competitors. 

Situation Assessment

· This problem isn't exactly a problem yet, however to maintain their success Harrah's can't settle into complacency with what they are doing. They need to look to new or alternative options to continue to grow not only their revenues, but also their customer base. Given the current market conditions and their competitors looking to mimic their strategy Harrah's needs to continue to innovate with new ideas and tactics to keep one step ahead of the competition. Also, their closed loop marketing strategy and Total Rewards Program their is an increased level of customer service which they need to maintain as well, to retain current customers and attract new customers. 

List of Plausible Alternative Courses of Action

· The only course of action at this time for Harrah's is to evaluate their systems and processes to see where improvements and innovations can continue to be made. They have had major success with their databases and analytics, however they need to keep moving forward to continue on this path.  

Evaluation of Alternatives

·  Harrah's can continue to test different offers that are slightly more outside of the box than they are used to. In the case then mentioned how $60 of chips is a more attractive offer than a free room, dinner and $30 of chips, therefore their most successful offers might be something smaller that they didn't think was worth trying. To keep expanding their marketing efforts keeps offers fresh for returning customers so they think they are gaining access to something new.

Harrah's can also look into consolidating their systems so all the data is housed in one mainframe instead of separate database systems. This could allow for quicker updates to data, which allows for faster turn around on requests for information, that gets the offers out quicker, and gets the customers on the property faster. This could allow for more volume at a more efficient pace.

Another focus for Harrah's should be cross market play. If they are able to increase the amount that their loyalty members will travel to other properties for certain offers they are increase the market share for each property causing them to bring in more revenue. Essentially, they need to test what offers will have customers travel certain distances to get there and focus on expanding their market.

Recommendation

Of these alternatives a mix of each and other innovative options is what makes sense to continue the growth and expansion of Harrah's properties.  Looking at their successes in the past, they need to take lessons from these and evolve them into new ideas for the future. Harrah's is one step ahead of the competition and they need to stay there to remain successful in this marketplace.