Circus circus case ppt

INTRODUCTION

• Circus Circus Enterprises, Inc. was setup by John Sarno on 18th October, 1968.

• Purchased in 1974 for $50,000 as a small and unprofitable casino operation by partners William G. Bennett and William N. Pennington.

• Went public with stock offering in October, 1983.

• Within 5 years (1993-1997) the average return on invested capital was 16.5% and generation of Free Cash Flow was $1 billion.

• Circus Circus is the 5th largest U.S. gaming industry.

• Circus has continued to broaden its market and now aims more at the middle income gambler and family-oriented vacationers as well as more upscale traveler and players.

• Circus defines entertainment as pure play and fun, and it goes out of the way to see that customers have plenty of opportunities for both.

• Aggressive growth strategy, innovative ideas, style, technology and strong cash position.

• Major player in Las Vegas, Laughlin and Reno in Nevada and in U.S.

• Wider market.• Product differentiation.• Rapid growth.

• Poor market conditions.• Losing customer base.• Cannibalism.• Huge investments in development

and innovation.

• Increasing number of tourists.• Expanding market in other states of

United States.• Increasing passion for gambling

among individuals.• Joint ventures with other gambling

industries.

• Addition of extra rooms in the Vegas market has limited their ability to increase rates on their expanded room base.

• Increasing competition in the gaming industry in Vegas and other cities of U.S.

• Adverse government regulations.

SOURCES OF REVENUE AS A PERCENTAGE OF NET REVENUES

TREND IN REVENUE AND NET INCOME

EPS

CURRENT RATIO

TOTAL LIABILITIES/ TOTAL ASSETS

OPERATING PROFIT MARGIN %

SYMPTOMS

• Decreasing REVENUE from casino operations.

• Decreasing NET INCOME.• Increasing LIABILITIES.• Losing customer base for casinos.• Changes in local laws, regulations

and procedures as Circus moves into other locations outside Nevada.

PROBLEM DEFINITION

• Financial instability.• Increasing competition.• Government regulations.

EVALUATION OF ALTERNATIVES

• Focus more on other gaming areas like race-tracks, lotteries, bingo parlors, videogames etc.

• Focus on other states in United States.

• Multinational conglomerates.• Form a specialized task force.

RECOMMENDATIONS

• Create a soothing environment to both customers and the employees.

• Take feedback from customers• Concentrate more on other means of

entertainment.• Promote the casinos more in other states

and countries.• Proper segmentation of the target market.• Well-trained employees and better customer

service.

MARKETING CONCEPTS

• Services Marketing 4 P’s – Product, Place, Price and

Promotion additional 3 P’s – People, Physical

Evidence and Process

• Market Segmentation• Product Differentiation• Marketing Intelligence

CUSTOMER REVIEWS

• Customer reviews for Circus Circus casino and hotels, Las Vegas & Reno have been very good, however Excalibur reviews have been devastating.

• http://www.travel-library.com/hotels/north_america/usa/nevada/las_vegas/excalibur_hotel_and_casino.html

• http://www.travel-library.com/hotels/north_america/usa/nevada/las_vegas/circus_circus_hotel_casino_and_theme_park.html

• http://www.orbitz.com/App/ViewSpecificHotelLP?masterId=7347&tabIndex=1

CIRCUS CIRCUS ENTERPRISES, Inc.1974-2008

• http://www.lvstriphistory.com/ie/circus74.htm

ATTRACTIONSFROM

CIRCUS CIRCUS

REAL MONTE CARLO CASINO

COLORADO BELLE

LUXOR

MANDALAY BAY

THE MIRAGE

THE EXCALIBUR

MGM

THANK YOUKAVITA SARMA

ANGELIN SAM ROBINSONVEENA B.K.

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