Harrah’s has been quite successful in adopting various marketing strategies to attract people to gamble more recently. The company recognizes that people spent “between $100 and $499 a trip” are therefore their target market. Then the company has conducted numbers of clinical-style trials to determine what interest gamblers.
Harrah’s encourages gamblers to register for VIP card s and conducts a model “scored gamblers on how profitable they can be to Harrah’s” in order to collect information and track their behaviors in casinos. Based on data, Harrah’s provides cash offer, free hotel room and free steak meal accordingly to get people motivated. Some gamblers revealed that they actually spend much more than what Harrah’s has given them by getting into its “trap”.
According to what we discussed in class, Harrah’s has done primary market researches to collect data by themselves. By studying the consumers’ behavior, the company can successfully find its target market and appeal to them in order to increase its profit. The company’s short term tactics is offering free hotel rooms and steak meals to attract people to drop by the casino more often. Need-based strategy suggests by satisfying most or all needs of the target market can effectively raise profits.