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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.
SANTANU DAS