HARRAH’S ENTERTAINMENT INC.

GROUP 1
AKSHAT KUMAR NAHAR (2022PGP495)
ARUNDHATI GUPTA (2022PGP086)
SIMRAN SINGH (2022PGP377)
OM SAI VARSHITH (2022PGP184)
UDAY DAHIYA (2019IPM107)

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 INTRODUCTION
● The late 1990s witnessed a rapid expansion of casinos
due to relaxations in the US State and Federal gaming laws
which legalised gaming.

● Casino operators started spending millions of dollars in

opening new extravagant properties that featured shopping
malls and hotels in order to attract customers

● Harrah's Entertainment Incorporated (Harrah's), an

entertainment company with business interests in casinos,
food & beverages and hotel rooms generates 90 percent of
its revenues from its casino business.

● Instead of opening lavish properties, Harrah’s initiated a

customer relationship management (CRM) program
that aimed at developing long-term relationships with its
customers as it would enable the company to capture a
bigger market share in the gaming business.
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● At the heart of Harrah's CRM program was a loyalty programme
called Total Rewards that rewarded customers with comps/
complimentary offerings in order to stimulate loyalty.

● The programme was aimed at gathering information about

customers and using it to customize the company's marketing
programs for each customer.

● Customers who enrolled in the Total Rewards program were

given an electronic card, which they inserted into the machines
they played on. This card allowed Harrah's to keep track of its
customers' preferences and collect data about them.

● Harrah's made extensive use of IT to aid the effective use of

collected customer data. A massive data warehouse and
business intelligence (BI) initiative was undertaken to
understand the behaviour of its customers and gain insight into
their gaming preferences.

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Problem Statement
Harrah must determine how it can achieve and sustain a
competitive advantage in acquiring new consumers, retaining
existing ones, regaining lost customers, and maintaining its position
against the competition.

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Swot Analysis
Strength
Marketing- 4P Analysis
Product
-Resort, Slot Games (worth Millions of Dollars), comfortable stay,
good food, good services being provided

Place
-Present in 18 locations
-Not dependent on any one region

Price
-Competitive business model with slightly lower, competitive pricing

Promotion
-Total Gold Program
-Distribution, Quality Products, Patents, Services

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Weakness
Competition
Increased Competition in the industry has led to competitive
pricing, which in turn has lead to lower profit margins

Taxes
Higher Gaming Taxes has also led to lower profit margins, since the
government now also takes a larger cut

Investment
Competitors have higher investment in their facilities, and since
Harrah’s is a 50 year old company, it is difficult to make upgrades

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Opportunity
1. In 1996, the casino gambling industry employed more people
than any other sector.
2. The gambling industry has produced thousands of jobs. Casino
tax revenues
contribute to tax reductions and support a number of fundamental
civic obligations.
3. According to economic data, gaming is a distinct business that
will only continue to expand as the economy and average wages
rise.
4. As customers' discretionary recreational income has increased,
gaming has increased.
5. Maintain your investment in business intelligence to set your
organisation apart from rivals.
6. Spending on recreation is increasing more quickly than any other
significant economic factor because as earnings rise, spending on
essentials decreases and increases on leisure.
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Threat
1. Gaming industry is active in bringing attention to problem
gambling and against underage gambling.
2. Competitor's investment in superior facilities can be a threat
to Harrahs business plan
3. Technology:
Player Cards, Slot Technology / Linked Jackpots and Internet
4. Internet is the source for intense gaming competition. Both
state and federal governments have actively worked to regulate
and even ban Internet gaming.
● The potential fraud over the Internet
● Children's access to gambling sites
● An increase in gambling addiction
5. Many states have passed laws regulating its issue

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QUALITATIVE ANALYSIS
● Hurrah's has been incorporating technology into its current
approach for games and advertising.
● Its neglect of the physical infrastructure and excessive exploitation
of the same marketing tactic over time are to blame for the
setback.
● Even though its customer loyalty programmes are appealing, it has
been losing money because of taxes and a lack of a competitive
advantage.
● The implementation of CRM system has made it possible for it to
anticipate future "client wants," which has assisted in the
exponential growth of its stock price.
● To boost sales, it has been investing in uniquely themed facilities
based on particular locales.
● Hurrah's may have lagged far behind its rivals, but with the right
actions, it may catch up.

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RECOMMENDATION
● To achieve a competitive advantage, Harrah's should prioritise
upgrading the current facilities above its marketing strategy.
●
● Research more on the customer’s needs to maintain client
loyalty.
●
● Target all of the current facilities rather than just those with a
larger clientele.
●
● Create innovative programmes and efforts to boost customer
traffic.

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ALTERNATIVE SOLUTIONS
● Harrah's should incorporate digital marketing, focusing on new
customers, in addition to its current marketing techniques to
broaden its customer base.

● The implementation of an intranet system within the company,

paired with the introduction of a reward point system like
"Total Gold" and more methods to gamble and play associated
games, to avoid the possibility of an Internet ban.

● Upgrading the technological and physical facilities now

available to clients would boost customer contact and inflow
while also improving the company's reputation.

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Thank You
Group 1

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