Marketing Plan Development Marketing and advertising comprise the second greatest expense in a casino after labor yet many casinos do not operate with an annual marketing plan. The task of developing a casino marketing plan requires time and experience. It requires an understanding of the needs of the market and the capabilities of the property. Without a marketing plan the marketing team allows the competition to dictate the property’s marketing efforts by constantly reacting to competitors’ offers. Without a plan the competition defines the marketing playing field. Without a plan, a casino is forced to practice Reactive Marketing as compared to Proactive Marketing. While many casino marketing teams are capable of producing marketing plans, they often lack the time to do it. Klebanow Consulting works with the marketing director, General Manager and marketing staff in developing the property’s annual marketing plan. First, the Consulting Team conducts an impartial situation analysis of the casino, the markets it serves and competition. Then the casino’s marketing team and the Consulting Team develop realistic marketing objectives and sound marketing strategies to achieve the goals. From those strategies a series of action plans are developed including all casino promotions, direct mail campaigns, e-mail campaigns, special events and advertising campaigns. For each campaign, a measurement tool is put in place, and finally, an annual marketing budget is prepared. These are then assembled in a written document that acts as a guide to success. The plan keeps the marketing team and property management focused on implementing strategies through measurable action plans that adhere to objectives and budgets. Player Reward Program Design The Player Rewards Program is a casino’s primary marketing tool and is the foundation of a casino’s player reinvestment strategy. A sound player rewards program is based on the capabilities of the property’s casino management system, the needs of the market, the marketing practices of the competition and the needs of the business. Klebanow Consulting assists the casino in the selection of the management system and then designs a player rewards program that takes full advantage of the casino management system. A Player Rewards Program is only part of the marketing equation. It is in fact, part of the casino’s overall player reinvestment strategy. Far too few casino operators give due consideration to player reinvestment strategy when designing their player rewards program. This can lead to a program that over-rewards unprofitable segments at the expense of other, more profitable segments. The task of developing a player rewards program requires a thorough examination of the competition, a review of the property’s current marketing programs and its database, an understanding of the needs of the market and the capabilities of the casino’s player tracking system. By applying this methodology, Klebanow Consulting designs a Player Rewards Implementation Plan that establishes realistic objectives, defines sound player reinvestment strategies, establishes policies and procedures and details specific action plans to capture player names and induce them to return. Once the plan is developed, the Consulting Team often assists the gaming property in implementing programs that identifies and rewards the casino’s most profitable segments while ensuring steady growth in the player database. Operational Reviews Operational Reviews provide an unbiased, independent evaluation of the casino’s operations. By hiring an independent third party to complete an Operational Review, the client will enjoy a fresh perspective on an operation’s efficiency, marketing programs, and internal strengths and weaknesses. The Consulting Team views Operational Reviews as a three step process. The first step is to review historical financial statements. This provides insight into capital expenditures, the amount of debt service and the property’s ability to meet its obligations, efficiency of the operation, and revenue and expense patterns. Before any improvements can be proposed, it must first be ascertained if the property is capable of supporting additional capital expense and if management is capable of managing those new assets efficiently. The second step is to conduct a site visit. This may take anywhere from five to ten days. During this time, the Consulting Team interviews every departmental manager in order to better understand their business. The interview process is treated as informal information gathering sessions in which a sense of each interviewee’s management style, knowledge of operation, and ability to complete his/her assigned tasks is fully understood. More important, the interview process allows each manager to discuss any issues or anomalies that he/she has identified but perhaps have never been given the opportunity to discuss. During the site visit, the Consulting Team also conducts focus groups with line employees. These private sessions, in which employees are given the opportunity to gripe and vent, gives the Consulting Team an understanding of which areas of the operation need further attention. Finally, members of the Consulting Team eat in the property’s restaurants, sleep in the hotel rooms and experience the casino as if they were customers. They also walk the casino floor, drink coffee in the employee dining room and walk the perimeter of the property as if they were managers. They examine the exterior landscape, the condition of the parking lot, the appearance of the carpet and the attitude of the employees. They examine the property as if they were responsible for it. A critical aspect of any Operational Review is the evaluation of the casino’s marketing programs. Does the marketing department understand who their customers and markets are and are they utilizing the proper mediums to reach them? Does the casino have a true Customer Relation Management program or is it just sending out mail? What is the casino’s player reinvestment strategy? Does the marketing team know what its player reinvestment rate is? Is the casino’s player rewards program competitive in the marketplace? Is the casino giving away more than it should? With the customer understood, management team appraised, physical property examined, marketing programs evaluated, and financial statements reviewed, it is then time to combine the first two phases into a detailed summary document that lists specific recommendations for the client. Based on the audience for the document, the Consulting Team details the strengths and weaknesses of the casino project and focuses on those aspects of particular interest to the client. Since members of Klebanow Consulting and GMA have operated numerous casinos throughout the United States and have completed Operational Reviews from both an internal and external perspective, their associates have the knowledge to effectively critique and provide guidance to improve service levels, enhance morale and improve bottom line performance. |
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