...Harrah’s Entertainment: A look into the gainshare plan by: kelsie white and jacob gaither Harrah’s Entertainment: A look into the gainshare plan by: kelsie white and jacob gaither 2015 2015 Harrah’s Entertainment, while operating at a high level in the entertainment industry, needed to make changes to the traditional ways in order to continue to excel and grow. Phil Satre knew he was going to have to reshape the operating strategy at Harrah’s Entertainment if the company was going to continue to succeed, and he did just that. While other casinos were building new attractions to lure customers, Harrah’s decided that was not the most efficient route to take in sustaining revenue and earnings growth or return on investment. They decided to shift from a product – based company to a marketing based company. Satre believed he could increase in-store revenues by changing the mindset of the customer to make them feel Harrah’s was their “home away from home”. (Delong & Vijayaraghavan, pg 2). Gary Loveman, President and COO, knew that they wouldn’t succeed in the marketing piece if they ignored their people. This meant improving customer service and getting creative with ways to achieve such. Marilyn Winn, head of Human Resources, was brought into Headquarters to help him implement his plan, after successfully running operations in the Shreveport, Louisiana casino. Winn was task with recreating the human resources function under Satre & Loveman’s image, which included...
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...Assignment: Case Analysis 2 Harrah’s Customer Value Funnel questions #3 and #4 CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student’s Signature Instructor’s Grade on Assignment: Instructor’s Comments: 3. Explain how the focal organization (level 3) creates value for its customers. What strategic changes are required to deliver outstanding value to its customers? Harrah’s games plan is to not just develop a relationship with their customers but instead to develop a long lasting relationship with its customers. Harrah’s focuses on delivering customized services to meet customer gaming needs. To deliver outstanding services to its customer Harrah’s may need to expand their focus from just the multi-market player to include the single market player. Harrah’s will need to identify the needs of this 30% of the market and include them in their loyalty programs to entice them to continue patronizing the organizations. In addition, more immediate, instantaneous rewards may be a great way of delivering more value to their customers. Stakeholders Harrah’s main focus is building loyalty and value for its stakeholders. The stakeholder that Harrah’s is most...
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...underlying Harrah’s strategy; is it better to catch many small fish or one big whale? The most rewards should be given to the group of customers with high customer worth, or customers who could potentially transition into that category (high predicted worth). Casinos typically target high rollers with a large bank roll who play high stake games. They court these types of players, offering complimentary rooms or services. Harrah’s on the other hand chooses to target low income working class individuals or retirees. They offer individualized incentives to those players based on the customer’s spending pattern. Each incentive is crafted to be profitable for that unique customer. Harrah’s is able to capture a large sum with their Total Rewards program and catering to people who choose to play games like slots. Although these games are not high stake with large sums of money riding per bet, the odds are greatly stacked in the houses favor. Another characteristic unique to Harrah’s is that they reward not just winners but losers as well. Other casinos offer deals to people who win large sums of money in order to get those winnings back. Harrah’s, on the contrary, give out nominal rewards like a free dinner to people who loose. Those individuals see it as customer services and feel more inclined to gamble at Harrah’s rather than a competitor. These unique practices along with a sophisticated IT database targeting customers who are likely to spend a good deal of cash, has given Harrah’s the...
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...Briefly discuss Harrah’s marketing information system I would have to describe Harrah’s marketing information system as The Total Rewards System. The reason that I say that is because members of the system receive points based on the amount of money they spend at the facilities. Then with those points the consumers can redeem the points for a variety of things; like food, rooms, money, etc. When the consumer uses the card it gives Harrah’s data. Harrah’s uses the data so that they can target specific consumers with what interest them. It also let the company know what consumers like so that they can make sure to supply the specific services they needed. The data also tells Harrah’s what kinds of people the consumers are, as in teachers, bankers, housewives, etc. Then with all the information that Harrah’s gets they can do a “psychographic segmenting” which gives them what the consumers want, and also helps them to develop those products in which are going to capitalize, and will be satisfying more the consumers. The relationship between Harrah’s marketing information system and Harrah’s managers and employees. Harrah’s uses there marketing information system’s data to get the best customer experience is one of the reason the system is so important. It not only helps the managers but it also helps the employees to know just what the customers want and what they need. The relationship between the two is that one can’t work without the other one. They know which of their...
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...Harrah’s I. What are the top two reasons you feel Harrah's has a "share of wallet - SOW" problem? People need change, they just don’t realize it. Most people view change as a negative, but the reality is most change is for the better i.e. cell phones, microwaves, refrigerators, cars, etc. Harrah’s was not providing this necessity to their customers. There was no change, no adrenaline rush. They lacked centricity. The right hand didn’t know what the left hand was doing. Harrah’s has numerous hotels all doing differently. They had data, but there were not using it. II. How does calculating the customer expected net worth help in addressing the SOW problem? Harrah’s will see what is working and what is not working for them by doing an expected net worth per customer. By tracking this data they can offer “new” and “exciting” offers to their customers. III. What key recommendations would you make in solving the SOW problem? If you know a loyal customer is going to Las Vegas, but not staying at a Harrah’s casino simply ask the customer why? Give them chips to use in the Vegas casino as a thank you for filling out the survey. Take a good look at what the other casinos in the area are offering. In fact go stay at some of them to see how hospitality, rooms, grounds compete with your hotel. Without a lot of expense can you match their efforts? Their marketing strategies may be free food while gambling, babysitting services, tickets to the area shows either...
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...12/6/2011 Barcenas|Bathan|Erum|Joseco|Pragacha|Rara|Ricafrente|Rivera | BA 170 Group 2 | Harrah’s Entertainment: Hitting the crm Jackpot | BA 170 Group 2 | Harrah’s Entertainment: Hitting the crm Jackpot | Harrah’s Entertainment Inc: Come out and Play In 1931, the casino gaming was legalized in Nevada and has become a socially acceptable form of recreational entertainment, thus, proliferation of casinos followed. In the early period of the industry, religious settlers felt that gambling was immoral which gambling was unacceptable for churches. But over the last decades, the popularity of gaming/casino industry has risen to new heights as casinos were forced to continuously change, renew, and rejuvenate themselves in order to survive in the industry. According to research, the US gambling industry consists of about 500 casinos, about 400 Indian casinos and bingo halls, and lotteries in about 40 states with combined annual revenue of about $80 billion. Today, the major players of the industry include Harrah’s Entertainment, MGM Resorts, and Boyd Gaming. The Gaming Industry To help us assess and have an in-depth understanding of this particular industry, Porter’s Five Forces Analysis is utilized: The threat of entry poses low pressure on the industry due to high barriers to entry. Government regulations and the large amount of capital requirement create barriers to new firms. The presence of close substitute products or services brings...
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...ADM1370 – Case Study #1, Winter 2012 Harrah's-Gambling Big on Technology The large investment made by Harrah's Entertainment Inc. in its information technology strategy has been tremendously successful. The results of Harrah's investment include: 10-percent annual increase in customer visits. 33-percent increase in gross market revenue. Yearly profits of over $239 million. Highest three-year ROI (return on investment) in the industry. A network that links over 42,000 gaming machines in 26 casinos across 12 states. Rated number six of the 100 best places to work in IT for 2003 by ComputerWorld magazine. Recipient of 2000 Leadership in Data Warehousing Award from the Data Warehousing Institute (TDWI), the premier association for data warehousing. The casino industry is highly competitive (rivalry among existing competitors is fierce). Bill Harrah was a man ahead of his time when he opened his first bingo parlor in 1937 with the commitment of getting to know each one of his customers. In 1984, Phil Satre, president and CEO of Harrah's, continued that commitment to customers. In search of its competitive advantage, Harrah's invested in an enterprisewide technology infrastructure to maintain Bill Harrah's original conviction: "Serve your customers well and they will be loyal." Harrah's Commitment to Customers Harrah's recently implemented its patented Total Hewards' program to help build strong relationships with its customers. The program rewards customers for...
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...Case Analysis: Harrah’s Entertainment, Rewarding Our People Harrah’s Entertainment is one of the world’s largest casino entertainment companies. Harrahs concentrates on building customer loyalty through an optimal service, excellent products, operational excellence and technology leadership. The company decided to change its operating strategy from a more product orientated to a strategic marketing orientated company, after what products and services are based on customer data. Regarding to this the company established a bonus payout programme based on percentages improvement in customer services to maintain the motivation of its employees and lowering turnover. The objective is to implement a competitive mindset in its employees as well as to demonstrate that they are valued by the company and play an important role for the customer driven plan. The problem, which is addressed in this case is, that the created incentive plan had increased customer service metrics positively,“but not to levels that merited a payout at most properties.” The employees were told that they will receive a $200 payout regardless of the company’s operating income. However, in many properties employees did not get the incentive regardless of their hard effort, because the bonus programme was not adapted to the company’s operating income. In some properties of Harrah’s Entertainment not earn more revenue with the programme, so that they automately invalidate the value of the incentive programme and...
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...Harrah's Entertainment case Hiroaki Tanaka 48167388 1. First, the objective of “New Business Program” was establishing relationships with new customers. The program was designed to develop the effectiveness at converting new Total Gold members into loyal customers by sending redeemable offers. Exhibit 2b showed that this program worked well. In April 1999, 1,022 new customers came to Harrah’s and the predicted worth of these customers was $31,992. In May, 125 customers of these 1,022 customers (12%) returned to Harrah’s and their predicted worth was $10,857 (34% of April).The decrease in predicted worth didn’t change so much compared to the one in customers. After that, the number of customers wend down gradually (12%→10%→8%), but the predicted worth remained stable (34%→33%→32%), which indicated that each month brought a new vintage of customers signing up. Second, Harrah’s made “Loyalty Program” to strengthen relationships with loyal customers. There were two sections for the program: Frequency Upside and Budget Upside. The former was designed to identify customers who gave Harrah’s only a small share of their spending and incentivize them to switch and visit Harrah’s more frequently instead of spending at their competitors. Harrah’s sent an offer which was different for customers of different perceived worth to Harrah’s. According to Exhibit 2c, the average frequency increased from 30 (Jan to May) to 150 (subsequent months). On the other hand, the objective of the...
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...Harrah’s Entertainment Inc Abstract Harrah, a prominent name in the gambling industry, is seeking for new initiatives in order to attract and retain customers. The main focus of the company is on the database management program which will consolidate the information of customers and make a profile of each individual in order to track their preferences. Harrah has to implement additional strategies with the one mentioned above to gain competitive advantage in the industry. The importance of realization of ‘Clients worth’ has been discussed in order to highlight the major role it plays in the success of a business. The overall marketing recipe results in more profitability than the DBM alone, and hence, the company applies marketing strategies keeping in consideration the long term view of business management. In addition to the longevity of the strategies and policies, Harrah’s faces some ethical and privacy issues which are in need to be handled accordingly. What are the objectives of the various database marketing (DBM) programs and are they working? When its rivals entered new showcases with preferences of improvement throughout the era of 1990s, Harrah's topped the business development. Be that as it may, the organization rather decided to make utilization of an existing preference i.e. client steadfastness, rather endeavoring to make new assets. A showcasing database holds data about distinct clients or potential clients that are pertinent to the advertising process...
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...White Paper: An Analysis of Harrah’s Total Rewards Players Rewards Program © 2006 Gaming Market Advisors December 2006 Prepared by Gaming Market Advisors 330 E. Warm Springs Rd Las Vegas, NV 89119 4340 E. Kentucky Ave. Suite 311 Denver, CO 8024 Table of Contents I. SUMMARY OF FINDINGS............................................................................................................................................1 II. PROJECT OVERVIEW..................................................................................................................................................4 Methodology ........................................................................................................................................................4 III. TOTAL REWARD PROGRAM OVERVIEW ..................................................................................................................5 Tiers and Tier Credits ............................................................................................................................................5 Reward Credits .....................................................................................................................................................7 IV. TOTAL REWARDS MARKETING STRATEGY .............................................................................................................11 V. TOTAL REWARDS TIER BENEFITS...................................................
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...report of surface.doc (Size: 101.5 KB / Downloads: 1171) microsoft surface.ppt (Size: 2.84 MB / Downloads: 1666) ABSTRACT Microsoft Surface, is a forthcoming Multi-touch product from Microsoft This is developed as a software and hardware combination technology. That allows a user, or multiple users, to manipulate digital content by the use of natural motions, hand gestures, or physical objects. It was announced on May 29, 2007 at D5 conference, and is expected to be released by commercial partners in spring 2008. Initial customers will be in the hospitality businesses, such as restaurants, hotels, retail, public entertainment venues and the military for tactical overviews. A projector underneath the surface projects an image onto its underside, while five cameras in the machine's housing record reflections of infrared light from human fingertips. The camera can also recognize objects placed on the surface if those objects have specially-designed "tags" applied to them. Users can interact with the machine by touching or dragging their fingertips and objects such as paintbrushes across the screen, or by placing and moving tagged objects. INTRODUCTION We are going to represent paper on Microsoft surface which is known as surface computing. Microsoft Surface is a forthcoming Multi-touch product from Microsoft which is developed as software and hardware combination technology. Minority Report meets the kitchen table in the new Surface from Microsoft...
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...Harrah’s Entertainment Inc. February 7, 2011 The goal of introducing the Gainsharing program was to increase employee motivation so they provide outstanding customer service. The differentiating factor in regaining and keeping bigger market share was through customer satisfaction. The Gainsharing program was effective in increasing both customer satisfaction and employee loyalty. Turnover went down from 70% to 50% in one year. It also proved to be an effective motivator to the food and beverage department of Harrah’s Las Vegas. Another great feature of this program was that it wasn’t tied to the financial performance of the company and the payout would be paid regardless of operating income results. Despite its positive features, the program had some drawbacks. The objectives that needed to be achieved in order to receive the gainsharing program’s bonus were not properly fine tuned. This led to situations where teams at most properties had missed their payout just by a small margin, leading to a feeling of let down. Also, the profits were not where they should be and the economy was dragging. Most employees were thankful to have jobs let alone bonus pay outs. The feature of getting a pay out regardless of financial performance was proving to be disadvantageous to the company. The incentive plan had cost $16 million in the previous year, and that felt like an especially big number now that revenues were dropping off because of broader economic conditions. Lastly...
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...1. Provide the following: (A) The company’s name and business, (B) name and title of the primary decision maker in the company, and (C) the company’s mission statement and the company’s actions to achieve its mission statement. HARRAH’S ENTERTAINMENT, INC. (renamed Caesars entertainment in 2010) the largest U.S. Casino emblem, is committed in the American public gaming company that retains casinos, hotels, and golf techniques under several brands (Stutz, "Harrah's opts to hail name of Caesars"., 2008-04-10). The prime conclusion maker in the business is Mr. Gary William Loveman, leader, CEO, and head person of the Board (Harrah Entertainment, Company Profile of Harrah's Entertainment, 2001). Following is the Harrah’s operation statement: “Each of our brands will be the overwhelming first choice for casino entertainment of its targeted customers.” Loveman accomplishes its operation or mission statement through his policies and activities which profited him the credibility and respect interior Harrah’s after becoming CEO in 2003, as well as in the commerce (Harrah Entertainment, Company Profile of Harrah's Entertainment, 2001). He had escort Harrah’s in the course of a evolution to a more marketing-focused company and helped the business break out of a financial presentation plateau. And he had built a set of associations and an influential support so he could hold his aim on quality clients and development opportunities for its employees in the pattern of on-going training and...
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...Human Resource Management –GBUS 403 Mid Semester Assignment Caesars Entertainment REPORT on issues related to Human Resource Management Summary: Caesars Entertainment Inc. is one of the world's leading gaming enterprise and has it's headquarter is in Las Vegas. Currently it owns 28 properties in five different countries. These properties offer casino gaming and resort facilities. This report is created to identify the major problems faced by the various properties of Caesars Entertainment. Most of these problems are interlinked and can be solved by implementing a few changes in the corporate structure and the overall policy of the organization. The se problems are analysed and different solutions are suggested. The 360 Degree Appraisal system is also discussed in the report and its pros and cons are explained. The report concludes with a brief discussion on how competitive advantage can be achieved in the long term if the suggested solutions are implemented in the organization. At the end a recommendation plan is outlined giving out a short-term and a long-term implementation plan for the organization. I tis usual for a summary to show some recommendations. Table of Contents: - 1.0 Introduction. 6 2.0 Problem Identification. 6 2.1 Lack of a unified vision in the organization 6 2.2 Decentralised Human Resource Function 6 2.3 High Employee Turnover 6 2.4 Hiring the 'right' employees 7 3.0 Contingency Plans. 7 3.1 Creating a Vision 7 3...
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