Sports and Entertainment DECA paper

Sports and Entertainment Marketing Operations Research Event

Cherry Hill East DECA Cherry Hill High School East

1750 Kresson Road Cherry Hill, NJ 08003

Ari Scheinthal Drew Woods February 26, 2012

Table of Contents

I. EXECUTIVE SUMMARY...................................................................................................................... 1 II. INTRODUCTION...................................................................................................................................2

A. Description of the business....................................................................................................... 2 B. Description of the community................................................................................................... 3 C. Description of the business's target market...............................................................................6 III. RESEARCH METHODS USED IN THE STUDY................................................................................. 6 A. Description and rationale of research methodologies selected to conduct the research

study.......................................................................................................................................... 6 B. Process of conducting the selected research method(s)............................................................ 9 IV. FINDINGS AND CONCLUSIONS OF THE STUDY........................................................................... 10 A. Findings of the research study...................................................................................................10 B. Conclusions based on the findings............................................................................................13 V. PROPOSED STRATEGIC PLAN........................................................................................................... 14 A. Goals/objectives and rationale.................................................................................................. 14 B. Proposed activities and timelines.............................................................................................. 16 C. Proposed budget........................................................................................................................ 21 D. Proposed metrics....................................................................................................................... 22 VI. BIBLIOGRAPHY.................................................................................................................................... 24 VII. APPENDIX..............................................................................................................................................25

I. Executive Summary

A successful and effective loyalty/rewards program in a business is the key component to retaining and attracting new potential customers. Thus, it is crucial for a business to possess the best loyalty/rewards program in its industry. With Landry's Seafood Inc.'s acquisition of the Trump Marina in Atlantic City, New Jersey, the company is in dire need of a new and revitalized loyalty/rewards program in order to put their company's name on the map in Atlantic City. Currently, Landry's uses the Trump Marina's old loyalty program for their Golden Nugget in Atlantic City, but the success of the new Golden Nugget will not come with an outdated loyalty/rewards program.

Research Methods and Findings and Conclusions of the Study

Our team used four research methods to receive information on the new Golden Nugget in Atlantic City, specifically, its loyalty program. The goal of the research was to determine why the Golden Nugget's current loyalty program is not effective in its current location and why gamblers of ages 21-35 do not play at the Golden Nugget. Also, our research helped our team discover what aspects of other company's loyalty programs make them successful. The research methods that were utilized were; a gambling preference survey, 24 Karat Club Member survey, interview with executives, and internet research on the Golden Nugget.

After conducting our research, we found that many new gamblers preferred to play at the Borgata, Caesar's, Harrah's and The Tropicana for a variety of reasons (mostly pertaining to entertainment/ nightlife/food). Also, we discovered that many of the current gamblers at the Golden Nugget consist of a much higher clientele, which is what the old Trump Marina attracted. When new gamblers (ages 21-35) were informed of the Golden Nugget's 2011-2012 renovation, they were thrilled to find out that a night club would be added, as well as more restaurants, entertainment centers and bars.

Proposed Strategic Plan and Promotional Plan

Our proposed strategic plan includes a refreshed loyalty/rewards card, managing Facebook and Twitter accounts, teaching current and new employees about the new perks of the enhanced loyalty/rewards program, and implementing various activities and new promotions. The new perks combined with the renovation are the main focus of the proposed plan, it will allow new gamblers to feel they are getting better deals from the Golden Nugget casino as opposed to other casinos in the area. Managing the Golden Nugget's Facebook and Twitter accounts will allow for gamblers to express their concerns as well as positive feedback on the enhanced loyalty/rewards program. Lastly, employees will need to attend an orientation session in order to learn about the revised loyalty program so they will be able to answer questions of new and old customers about the program. The proposed strategic plan is geared towards attracting a younger clientele to the new Golden Nugget location in Atlantic City.

Goals of Strategic Plan and Promotional Plan

The main goals of the proposed strategic and promotional plan are:

increase membership of the younger clientele and retain their membership increase size of general gamblers at the casino increase the Golden Nugget's market share increase profits

Proposed Budget

Once completing the proposed budget plan, we established a total budget of $1,363,766.48. This proposed budget is relatively low when compared to current and potential profit of the casino as well as Landry's restaurants.

1

II. Introduction

A. Description of the Business

Landry's Restaurants, Inc. was founded in 1980 with its original restaurant, Landry's

Seafood in Katy, Texas. The CEO Tilman J. Fertitta acquired controlling interest in 1986 of

Landry's first two restaurants. In the past 20 years, Landry's has grown from a small private

business to a Public corporation, back in 1993, and now the corporation has over 200 locations

worldwide. In 2005, Landry's Restaurants, Inc.

Figure I: Golden Nugget Casino in Atlantic City, New Jersey

acquired the rights to the Golden Nugget

Casinos in Las Vegas and Laughlin,

Nevada. The entertainment industry

proved to be very successful for Landry's

and recently, on May 23, 2011, Landry's

completed the purchase of the Trump

Marina in Atlantic City, New Jersey for $38 million. Following the purchase the casino has been

renamed The Golden Nugget, becoming the third one. Since the purchase Landry's has started

remodeling the new location, aiming to double their customer count. The new Casino location

has given Landry's a unique edge in the current marketplace for it has a marina and a water-front

view, which is highly desirable. The Golden Nugget Atlantic City has a general manager and

1200 employees (see appendix for organizational chart). Currently at the Atlantic City location

they have approximately 70 table games, of the 70 black jack, craps, and mini baccarat are most

popular.

2

B. Description of the Community Economic:

Figure II: food sales in Atlantic City compared to New Jersey (2009 economic census)

According to the United States

Economic Census, which is taken every five year,

the accommodation and food services sales have grown significantly. In 2002, it was reported

that $4,480,402 were made in accommodation and food services sales. In 2007, the Economic

Census reported a sales figure III of $5,602,533. So over the five year

period, Atlantic City saw a 125% increase. Also, the poverty rate (of New Jersey) as of 2009 was 9.4%, which is 4.9% under the USA

Figure III: Map of Atlantic City with pin drop location of the Golden Nugget

average.

Geographic:

The Customer Loyalty Plan will be focused primarily on the

existing target market area of about 250 miles from the casino. The

Golden Nugget is located in Atlantic City, New Jersey right on the

Frank S. Farley State Marina, on Huron Avenue off of Brigantine

Boulevard. Atlantic City is one of the prime casino and gambling

spots in the country and the only in New Jersey. Since the Casino is on

the water, there are many ways for their customers to travel there: by

car, by boat, by bus, and by train into the city then taxi from there. (see figure III for map of

Atlantic City).

3

Demographics:

As of the 2010 United States Census, there were 8,791,894 people living in the state of New Jersey. Also, there were 274,549 people living in Atlantic County, New Jersey and in Atlantic City, New Jersey, there are 39,588 people. 19,396 of the population are males and 20,162 are females. (See figure IV for more details about the demographics).

/$01,.)"2)!,"#%,)3()4&56)*+,)-."$#)3()

/,7)8,.9,:)

Figure IV:

+'.(

'+*"'*$(

#&-+*(

!"&$!"$+#(

*+,)-."$#)

*'-'$(

!"$**",!$(

%&-**(

!"+$*"$'$(

!'-)$(

!"#$)"*+#(

&-!*(

!"#$%"!&'(

&(

'&&"&&&(

!"&&&"&&&(

!"'&&"&&&(

)"&&&"&&&(

!"#$%&'"()

It is important to know the number of people in each age group for New Jersey when assessing Landry's Target Market for The Golden Nugget in Atlantic City (See Section C). In order to gamble in the United States, one must 21 years and older. In the State of New Jersey, approximately 72.7% of the population are 21 years and over, which is roughly 6,391,930 people. There are 4,279,600 males (48.7% of the population), 3,048,612 of the males (34.6%) are old enough to gamble in the United States. Also, in New Jersey, there are 4,512,294 females (51.3% of the population) and 3,343,318 of which (38%) can gamble (they are over the age of 21, See above figure)

4

Based upon the census, the median household income of residents in New Jersey is $68,444.00 as of 2009. This statistic is important because it shows the level of the standard of living in New Jersey and shows that it is $18,223.00 over the USA average. And in 2010, it was reported that 44.6% of adults who live in New Jersey hold a two or four year college degree, which is above the national average of 38%. Furthermore,

Socioeconomic: Throughout the state of New Jersey based upon The Department of Higher Education of New Jersey there are 66 total state and private colleges and universities, of those include three public research universities, nine state colleges and universities, 19 community colleges, 14 independent four-year colleges, seven proprietary institutions, 12 rabbinical/ theological schools, as well as two independent religious colleges. As a whole, New Jersey has all classes of citizens from upper to middle to lower class citizens. There are as well a mixture of the businessperson to the farmer and even the unemployed. As New Jersey is known as the Garden State it is most popular for its cranberries and blueberries. Nation wide according to the census the real median household income has dropped 2.3 percent to $49,445 in comparison to 2009. The unemployment rate in New Jersey is around 9.1 percent higher than the 8.5 percent of all the United States, both of the numbers are decreases from the high in 2009 around 10 percent for both.

5

C. Description of the business's target market

A target market is essential to a business's s success. After Landry's Seafood Restaurants Inc. acquired the Trump Marina, they also inherited a large outdated database full customers` names. In order to reestablish a base with the actual customers of the former Trump Marina, a new target market must be determined.

Currently, the Golden Nugget Casino in Atlantic City, New Jersey is lacking a target market. So, along with the Landry's executives, our team has developed a new target market for the Golden Nugget in Atlantic city that will go with the new renovation that began at the end of 2011. Therefore, we decided that the target market for Landry's after the renovation will be for the younger generation of gamblers, specifically gamblers from the ages of 21 to 35. Landry's would like to see not only the male population of gamblers, but also the female population of gamblers in their new target market. In order to attract the two, Landry's will be adding retail stores, bars, high quality restaurants and a night club in their current renovation. The household income level of the target market is approximately between $40,000 and $60,000. Even though Landry's wants their new target market's age group to consist of the younger generation of gamblers, their ultimate goal is to entice all gamblers, 21 and older, to play at the Golden Nugget.

III. Research Methods Used in the Study A. Description and rationale of research methodology selected to conduct the research study The purpose of our research was to conduct a SWOT analysis of the 24 Karat Loyalty

Rewards Program of the Golden Nugget Casino Atlantic City. A SWOT analysis is an 6

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download