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February 2005

Kim Pedersen, Director of Direct Marketing

Mandalay Bay Resort and Casino

Viva Las Vegas!100 Years of Powerful Promotions

H2O...Liquid Gold

Viva Las Vegas!100 Years of Powerful Promotions

H2O...Liquid Gold

RELATIONSHIPS | RESOURCES | RESULTS

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4 Brilliant Results | February 2005 www.brilliantpublishing.com

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brilliant resultsbrilliant results

FEATURES

24 Las Vegas 100 Years YoungThe “Entertainment Capital of the World” celebratesits Centennial and reveals a bit of its past history.

28 Best Casino Promotions of 2004Find out which promotions were a hit with the players from this gaming columnist and author with 28 years experience in the gaming industry.By John G. Brokopp

30 Marketing Smoking in a No-Smoking WorldExplore the marketing challenges of the tobaccoindustry, read Brilliant Results interview with DanaBolden, Senior Manager for Philip Morris USA andlearn how these companies are successfully usingpromotional products

38 Promotional Products: Impact,Exposure and Influence Get the facts about promotional products from thissurvey of business travelers at DFW Airport.By The Promotional Products Association International

42 42 Bottle Water: Liquid GoldGet the facts about the exponential growth of privatelabel bottled water, its successful use as a promotion-al product and how it is adding gold to organiza-tion’s bottom lines.

46 Avoiding Workplace LitigationThree things a business can do to dramaticallyreduce the likelihood of employment litigation.By Lee Jay Berman

Departments6 Publisher’s Letter

77 Advertising IndexGet FREE information from this month’s advertisers

78 Calendar

80 The Last WordBrilliant Results talks to TerryJicinsky, Senior Vice President ofMarketing for the Las VegasConvention and Visitors Authority,about successful Las Vegas market-ing campaigns like “WhatHappens Here – Stays Here.”

82 Off the CuffA little bit of This & That to chal-lenge your trivia knowledge.

Columns50 Hot Products…Things

We LoveBrilliant Results searched the tradeshow aisles to bring you thismonth’s treasures.

62 Business And BrandThe Branding ParadoxBy Bill Nissim

72 Technology:How Important Are SearchEngines to Your Internet Marketing Plan?By Randall P. Whatley

66 What Works:Case studies that Delivered Brilliant Results

8 A Sure Bet! (Cover Story)This month Brilliant Results had the pleasure of interviewing one of Las Vegas’s creative marketers,Kim Pedersen, Director of Direct Marketing for the Mandalay Bay Resort and Casino.

FEATURES24

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Publisher’s LetterBrilliant Publishing LLC

9034 Joyce LaneHummelstown, PA 17036

Ph: 717.608.5869Fax: 717.566.5431

PUBLISHER / ADVERTISINGMaureen Williams

[email protected]

EDITORIALEditor in Chief

MaryAnne Morrill

Senior EditorMichelle Donofrey

Style EditorCharity Plata

Asst. EditorMildred Landis

Contributing Writers...Robert Berman, John G. Brokopp,

Lee Jay Berman, Eric Ekstrand, Michael Hirsch,Bill Nissim, Chris Smith, Raf Vanreusel,

Randall P. Whatley

Contributing ResearchPromotional Products Association

International & L.J. Market Research

PRODUCTION / DESIGNArt Director

Percy Zamora

Brilliant Results is published monthly by BrilliantPublishing LLC, 9034 Joyce Lane Hummelstown PA17036 (717) 608-5869; Fax# (717) 566-5431. Postagepaid at Mechanicsburg PA and additional offices. POST-MASTER please send address changes to BrilliantResults, 9034 Joyce Lane, Hummelstown PA 17036.Volume 2. Number 2. Brilliant Results subscriptionrates: one-year $120; Canadian $160 USD; one-year for-eign $225 USD. All subscriptions are non-refundable.Copyright © 2004 Brilliant Publishing LLC. All rightsreserved. The publisher reserves the right to accept orreject any advertising or editorial material. Advertisers,and/or their agents, assume the responsibility for anyclaims against the publisher based on the advertise-ment. Editorial contributors assume responsibility fortheir published works and assume responsibility for anyclaims against the publisher based on published work.No part of this publication can be reproduced in anyform or by electronic or mechanical means, includinginformation storage and retrieval systems, without writ-ten permission from the publisher. All items submittedto Brilliant Results become the sole property of BrilliantPublishing LLC. Editorial content does not reflect theviews of the publisher. The imprints, logos, trademarksor trade names (Collectively the “Marks”) displayed onthe products featured in Brilliant Results are for illustra-tive purposes only and are not available for sale. Themarks do not represent the implied or actual endorse-ment by the owners of the Marks of the product onwhich they appear. All of the Marks are the property ofthe respective owners and is not the property of eitherthe advertisers using the Marks or Brilliant Results.

ell, it’s only Februaryand I’ve already been allover the country checkingout the best trade showsto bring you the scoop!My most recent stop… LasVegas! You’ve got to lovethat town, don’t you? Iwas there for the PPAIexpo, which was a greatshow. Over 1,500exhibitors and 25,000 attendees allworked together to bring you the lat-est promotional merchandise and themost creative strategies, to supportyour success!

Of course I couldn’t possibly beasked to spend a week in Vegas andjust do the show. I have always beenfascinated by how these savvy casinosand resorts can take a piece of desertsand and turn it into a multi-billion dol-lar play ground that attracts people likemosquitoes to a bug zapper. As I lookup and down the strip, I think about thebusiness, financial and marketingstrategies that must have gone intobuilding it.

So… how did the BR team spend itsspare time in Vegas? Learning how it works!

We were fortunate enough to visitwith an industry insider and icon –Mandalay Bay’s Kim Pedersen, Directorof Direct Marketing. Pedersen is aVegas native and amongst many otheraccomplishments she is credited withco-founding one of the first-ever slotclubs for the Flamingo Hilton.

If you are asking yourself; “Why do Icare about what they are doing outthere in Vegas,” I have two words foryou… Making money! Many of thesemega-properties generate so much rev-enue it would make your head spin.The interesting part is that the generalconcept’s and strategies they imple-ment in their day to day activities canbe equally effective for any business,any size, any place. As Ms. Pedersen soeloquently put it; “Good business andmarketing practices should be adaptive.”So this issue is dedicated to giving youinsight into what they do so you cantake parts and pieces and weave theminto your marketing strategies.

In this issue we chose to fea-ture businesses that have hugehurdles to overcome in an effortto point out the concept “If theycan overcome business chal-lenges, so can you!” Industrieslike gaming, smoking and evenselling bottled water. Thinkabout it, only a few short yearsago if someone tried to chargeyou for water, you’d have said

they were crazy. Now it is the secondlargest selling beverage in the UnitedStates and you can expect to pay up to$10 a bottle for this liquid gold in Vegasor anywhere else.

Speaking of overcoming challenges…I had an experience at the PPAI Expothat I have to tell you about. I was soimpressed with the way a companyovercame a difficult situation that I justcan’t allow what happened in Vegas tostay in Vegas!

San Mar is a wholesaler of namebrand sportswear. They were the talk ofthe show because they were treating usand 6,000+ of their closest friends/clientsto a private and free Jessica Simpsonconcert. Only one problem the morningof the show Jessica called in sick anevent planner’s absolute worst night-mare, right? So what do you do? Well,Marty Lott, President of San Mar, andhis team scrambled to pull a miracle out of their hat, and while it had to beunbelievably tough to stand up on stageand say “Jessica called in sick,” theystepped up and got Kelly Clarkson ofAmerican Idol fame to fill in on just afew hours notice. Marty and San Mar,you earned my respect for overcomingan incredibly difficult situation and finding an outstanding solution to yourmarketing challenge! The extra step of the personal letter to everyoneexplaining just what happened was a touch of true class!

To any of you that may have had similar high visibility challenges like this,yet overcame them I say “You Rock!”

Have a Brilliant Day!

TM



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The Brilliant Results Q&A with Mandalay Bay’s MarketingMaster Kim Pedersen

While attending the PPAI Expo in Las Vegas, Brilliant Results

had the pleasure of interviewing one of the most interesting

people in the world of direct marketing: Kim Pedersen, the

director of direct marketing for the Mandalay Bay Resort

and Casino.

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Brilliant Results | February 2005 9www.brilliantpublishing.com

Pedersen, a Las Vegas native and proud of it, grew up,went to school, got married, had a baby and worked all in LasVegas. A place most of us go to get away, she is proud tocall home. She admits that Las Vegas is exciting and diverse,yet there are real careers to be had if you desire. Touristsusually see card dealers and food & beverage servers but failto look past that. However, think about the experiences youcan have in Vegas. Where else in the world can you take a 10- or 20-acre piece of pure desert sand and, within a year,turn it in to a tropical paradise, complete with a world-classhotel, casino, man-made beach, convention center and even agiant shark tank, if you want to “kill” an hour or two!

What makes Pedersen and her work experience so excitingto those who respect the true art and value of marketing is theunique experiences she has had. She was involved in the devel-opment of one of the first-ever “slot clubs” in Las Vegas. Inthe late 1980s, Pedersen worked at what was then theFlamingo Hilton alongside Shakir Ahmed, the hotel’s vicepresident of casino marketing. They developed “SlotMagic,” which was amongst the city’s first formal loyaltyrewards program for players.

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In loyalty rewards mar-keting, Slot Magic was to thecasino industry what the firstfrequent flyer program was tothe airline industry. Today, literallyevery casino has some kind of loyaltyrewards incentive program designed to attractplayers to certain properties, capture their dataand, more importantly, keep them on the propertylonger once they do come to town.

After 12 years, of doingeverything from working at the

Bell Desk to eventually runningthe Casino Special Events at the

Flamingo, Pedersen moved to the newLuxor in 1998 and ultimately landed at

Mandalay Bay in 2001. Today, as the Director ofDirect Marketing, Pedersen is responsible for themajority of communications and marketing effortstargeted towards bringing people to that property.Unlike other mega-resort/casinos, Pedersen andher team are responsible for how the MandalayBay communicates via direct marketing to all oftheir customers including: casino (both domesticand international), sales, hotel, high-end resort,events (boxing/concerts), business-to-business(trade show, association and corporate industry).And, in her spare time, she handles the direct mailand e-direct marketing efforts as well.

Brilliant Results lured Pedersen away from allthat work long enough to capture her insight onmarketing in this multi-billion dollar industry. And,the most interesting part of the interview has tobe that she does not realize just how cool – andinspiring – her experiences have been. ToPedersen, it is all in a day’s work in the surrealworld of Las Vegas.

BR: We understand you were involved in devel-oping and launching one of the first-ever slotclubs (Slot Magic at the Flamingo Hilton). Today,these kinds of loyalty rewards programs exist inliterally every casino in the world. Tell us a bitabout why and how those early efforts weredeveloped.

KP: I don’t think I realized that I was involvedin the beginning of what is now a standard. Wesaw it as a true win-win for the player and thehouse. The customers really enjoyed the rewards,and we were able to obtain good data on our play-ers for the first time. I was very fortunate to workfor Shakir. The man had great vision. My role wasprimarily to be the bridge between management’s

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“blue sky” ideas and what could, realistically andtechnically, be implemented on the floor. I was alsoinvolved in that blue sky brainstorming, but I was thefeet on the street. It was my job to know what theplayers wanted and what was feasible to implementin the real world. I learned early on that any marketingprogram is only as good as its ability to be imple-mented. Unfortunately, not all plans are executableon the floor. Anyway, we started the program, and Iremember that we were constantly tweaking it toimprove it for both our customers and us.

BR: What role did promotional products playin the program?

KP: I recall being amazed at the power ofpromotional products as loyalty rewards. Sure,it was good for the house to use soft-costitems such as meals and rooms, and the players definitely liked that because it madethem feel special. However, it never ceasedto amaze me what players would do forcertain items. I can recall on numerousoccasions where players would lose $100playing on a certain machine just to geta $10 “collectors” pin.

We had a great set up. The casino atthe Flamingo opened right up to thesidewalk, so we set up booths withbig Slot Magic neon signs to get peo-ple enrolled in the program. It wasincredible. At one point, we had

three or four stations or windows open 24 hoursa day signing people up. I would say on average wesigned up 12,000 players a month. The player cardswere free, made them feel special and, heck, we evengave them the hot pink bungee cords to attach to

their card on one end and their beltloop on the other. Talk about loyalty,we connected them to our machines!

Our rewards included everythingfrom imprinted tote bags and T-shirtsto room comps and big screen TVs thatwe would ship right to their homes. Iwould say, on average, we gave away500 to 1,000 awards a day. One of thefavorites was, when they reached a certain plateau, we would award themwith the glass from their favoritemachine. We put a high-end frame on itmaking it a totally cool collectors item.The bottom line was getting them tostay and play by making them feel special. The rules still apply today.

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BR: The resort and gaming industries continueto become more competitive everyday with newproperties coming to Las Vegas and NativeAmerican casinos popping up all over the coun-try. What marketing strategies do you envisionthe various properties will be implementing inthe future to attract and retain players?

KP: The future will be casinos will get smarterabout individual customers’ wants, needs, likes, dis-likes, etc. It will be the job of a casino marketingperson to look at, identify, understand and commu-nicate with a specific customer in the way that customer wants to be perceived and communicatedto. It is complicated, but it all starts with databasemanagement. It’s all about knowing your customers

better, how to better serve them and how to talk tothem in a way that pushes their buttons. For exam-ple, if you as a customer have a tracked history offine dining while in town, then that is what we willmarket to you. If you love to play dice, then that’swhat we’ll be talking to you about.

Smart card and RFID technology will be thenext big thing in Las Vegas. Where and when it islaunched will be huge. “Big Brother” is definitelyhere, and we use him to better understand andserve our customers. That is only going to getmore detailed over time.

BR: Tell us a bit about Mandalay’s direct mar-keting goals and strategies today.

KP: When I spoke about the future, we are def-initely working on that path now. Here at theMandalay Bay, it’s definitely all about understand-ing our customers and what they want. Then, itmeans making sure we are talking to all segmentsof our database with things that are of specificinterest to them.

We do a fair amount of personalized directmail, both hard copy and electronic. The cus-tomer-focused philosophy is in place today.Tomorrow’s technology will put it on steroids.

BR: How does Mandalay Bay differentiate fromits competitors in its direct marketing andstrategies and loyalty rewards initiatives?

KP: The Mandalay Bay has always had anatmosphere of a high-end facility, but it is funrather than stuffy. We have positioned the proper-ty to be cool, hip, cutting edge and fun – all in avery upscale package. More importantly, we haveensured that our customers’ real-world experiencematches the hype. That is our primary unique sell-ing proposition.

Also, our player’s club, now called “One Club,”is linked between all of our 13 properties. Basedon your rated play, you earn points towards cashback, comps, special events, promotional mer-

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chandise and so on. Interestingly, thecore of One Club is based on the originalconcept of Slot Magic, only with turbo-charged jet engines bolted on.

BR: Tell us some various waysthe Mandalay Bay uses promo-

tional merchandise to enticeits players to come to your

property or to perk its play-ers to build loyalty onceon the property.

KP: One of the bestways is drawings. Forexample, during theChinese New Year, wegave out prizes every

hour. We found our cus-tomers would “stay and

play” if they wanted to seewho would win or, better yet,

to find out if they won. You haveto be present to win. We found it

extremely effective when a friend of thecustomer would say to them, ‘You shouldhave been there. They called your name,and you missed it.’ That kind of communication is far more powerful than anything we can do.

Another concept that has worked wellis when we include hooks into our directmail efforts, e.g. we have enclosed this CDas our gift to you. Listen to it, and if youlike what you hear, you can see them liveon us when you get here [Mandalay Bay].

BR: On average, how many cam-paigns/promotions do you pursue atMandalay Bay each year?

KP: Wow, a lot! On average, we willlaunch about three direct and two e-directevery week. A single campaign can gener-ate 10 or more direct drops. We maylaunch one large-scale campaign for athree-month period, then weekly drops forevent-specific campaigns. On top of that,we will generate about one a month forour sales department and two a month forour casino invites, tournaments, etc.

BR: What were some of your favoriteor most successful direct marketingcampaigns that you and your team cre-ated and implemented?

KP: My absolute favorite is working onour international pieces. We had onewhere we hosted a $1 million baccarattournament.

On average, we willlaunch about three direct and two e-directcampaigns every week. A single campaign can generate 10 or moredirect drops. We maylaunch one large-scalecampaign for a three-month period...

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The invitation had to be translated into sevendifferent languages. Each of these pieces hadspecific verbiage, graphics, numbers and colors that had to be exactly correct. I reallyenjoy working with our Asian markets. Theaudience is typically very smart and savvy.The challenge of working successfully in thatmarket is one I love. I used to really enjoyworking on the slots tournaments. They areboth fun and exciting, but I have done many ofthem over the years. I am just a person whoenjoys new challenges.

I absolutely love working on any type ofcampaign that incorporates gifts or dimension-al pieces. A good example is Ivan Kane's FortyDeuce Burlesque Club that recently openedhere at the Mandalay Bay. Forty Deuce is oneof the hottest clubs in Hollywood. Forty Deuce

has redefined burlesque and put it back on themap. Our marketing effort includes hitting ouraudience just before Valentine’s Day with ashiny, red box containing a red boa, glovesand fishnet hose for a real burlesque feel.

Then, the Mandalay is world renown for ourboxing events. The marketing pieces arealways really dramatic with bold graphics andheadlines. When our invited guests arrive, theycan expect a cool gift package, usually fightrelated. It could be anything from a T-shirt andhat to a pair of autographed boxing gloves.

BR: What was the most memorable directmarketing campaign you have ever seen?

KP: The most memorable direct marketingpiece I ever received was a B2B effort from anagency trying to solicit our business. Thepackage included half of a fishing pole. Thedeal was I was supposed to contact them toset up an appointment, and they would bringthe other half of the pole to the meeting.While I have seen promos like that before, Iloved how they tied in the copy. They pointedout that advertising and marketing is all aboutthe “hook.” I actually called them. I didn’twind up using them, but it did open up a greatcontact that I remain in touch with to this day.Even if you don’t accomplish your primaryobjective, creative campaigns can open doorsyou never anticipated. The moral: alwaysstrive for excellence and do incredible work.Never settle for mediocrity. I once heard agreat saying that I believe to be true: good isthe archenemy of great.

BR: Why do you feel promotional merchan-dise or dimensionality is important in yourintegrated marketing campaigns?

KP: We live in a society that is absolutelyoverloaded with advertisers and marketerstrying to get our attention. Two things seem

BR0205_Section01 1/24/05 3:45 AM

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to be mission critical in getting results for yourmarketing dollar. No. 1. Know your customer.Communicate to them one to one and get themthings they are interested in, not just things. No.2. Have a dimensional component whenever pos-sible. The added perceived value has a dramaticimpact on response rates.

BR: Do you have a certain company you liketo work with for your promotional merchandiseor your direct marketing strategy development?

KP: We have about a half dozen proven sup-pliers that we work with on a regular basis. Thecompany we ultimately use for a campaign typi-cally depends on what we’re looking for. We useDRGM advertising to support most of our strate-gy. From time to time, we will also ask them toevaluate product supplier options for us.

BR: How does Mandalay Bay measure ROI ontheir various marketing campaigns?

KP: Actually, we are very good at trackingexactly what return we get from each campaignwe launch. Not too long ago, promotions werebuilt so that the recipient needed to reference thepromotion “code number” when they called tobook it. Now, we use very sophisticated softwarethat sits on top of our data warehouse. We triggera campaign and select the customers we’re goingto mail to based on certain preferences in theircustomer record. If that customer responds, i.e.books a room, dines in a restaurant or plays in thecasino, during the time frame in which the promo-tion is active, the system will recognize that as aresponse to that campaign. Furthermore, it willmonitor what activities that customer participatedin during their stay. We use our database and thesoftware programs that query the data to betterunderstand our customers, so we can continue tocommunicate with them in the ways they like andbetter serve their needs. In the past, one-to-onemarketing was difficult to launch operationallyand a challenge to track on the back end. If youcan’t tell, I love technology.

One of the strategies I amfascinated by is our viral

marketing campaigns. This is where we invite our customers to invite

their friends.

BR0205_Section01 1/24/05 3:47 AM

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BR: How do you acquire the information tobuild your database of recipients for your marketing efforts?

KP: There are many ways. First, we use thehotel logging system when a customer stays here.Next, there is our “One Card” loyalty program.We like to overturn all stones. We pull informationfrom our event ticketing database; our conventiondatabase; Club Paradise, our opt-in, on-line guestregistry product that offers e-specials to thosewho ask to receive them; and many more.Because there is so much information, a lot oftimes there is a huge set up, but when it launch-es, it launches clean.

One of the strategies I am fascinated by is ourviral marketing campaigns. This is where we inviteour customers to invite their friends. It essentiallyallows our players to offer comps to their friends.The customers are in charge. It may sound strange,but think about it, people of the same status gener-ally run together. So, if they are a player with us,their friends are likely players, too. Those effortshave proven to be quite effective.

We are now working with a company wherewe even model customers from our database andmarket to people who match their basic profile.At this point, thousands of potential new cus-tomers that fit certain profiles are receivingour marketing pieces every month. Once theyrespond, we try to convert them into loyalMandalay Bay customers.

BR: How many people are in your database today?

KP: I can tell you it’s well over a million.

BR: Obviously, your database is diverse. How doyou manage and update that large and diverseamount of information?

KP: Through several touch points. Wheneverthere is activity, it pours info into the data-

base. This process literally goes on 24-7-365.Our databases have become like living, breath-

ing things. They literally change moment tomoment. In the middle of the night a guest may

order room service, they may be booking a room,they may get dinner reservations, or they may

play at a table in the casino. Anytime a registeredcustomer takes action and identifies himself or her-

self the record is updated. Why be tracked? Simple:the more tracked activity you have, the more perksyou can earn.

BR0205_Section01 1/24/05 3:51 AM


BR: How many players do you think are members of all slot programs in all properties in Las Vegas today?

KP: It’s hard to say. We are certain there is ahigh amount of crossover with the same playerbelonging to multiple properties clubs. I can tellyou that way back in 1998 at our Slot Magicprogram at the Flamingo, I would mail 60,000 pre-qualified invitations for a slot tournament.The number today must be staggering.

BR: We have one more question beforeletting you go. We see an enormousamount of custom imprinted merchandisein gift shops today. Why do you think thistype of merchandise, which once was givenaway, not sold, has become so popular?

KP: It is based on customers wanting totake something with them representing wherethey’ve been a keepsake or reminder of theincredible experience they had.

Editor’s note: At first, I believed Pedersenwas skeptical about doing this interview. LasVegas is not known for talking openly about itsstrategies and successes. However, as we wentthrough the process, it became clear that whatPedersen does at the Mandalay can be applicableacross all industries and businesses, regardless ofsize or geographic location. I heard a quote thatsaid: “Good business and marketing practicesshould be adaptive”. I believe that is true, andwhile every industry has its niche issues, gettingto know your customer so you can serve them better, combined with rewarding them to stay loyalin an unloyal world, seems to make good sense. I hope you found things in this intriguing interviewthat you can implement in your business. •

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On May 15, 2005, Las Vegas will commemorate its 100thbirthday. Las Vegas, called Clark’s Las Vegas Townsiteat the time, was born when 110 acres of land were auctioned by the railroad. The Union Pacific auctioned off 1,200 lots in a singleday in the area that today is casino-lined Glitter Gulch.The town’s new residents received water piped fromsprings through hollowed redwood logs.Nevada was the first state to legalize casino-style gambling, but not before it reluctantly was the lastwestern state to outlaw gaming in the first decade ofthe 20th Century. At midnight on Oct. 1, 1910, a strictanti-gambling law became effective in Nevada. It evenforbade the western custom of flipping a coin for theprice of a drink. The Nevada State Journal newspaperin Reno reported is as follows:Stilled forever is the click of the roulette wheel, the rattle of dice and the swish of cards.

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“Forever” lasted less than three weeks in Las Vegas.Gamblers quickly set up underground games wherepatrons who knew the proper password again joustedday and night with Lady Luck. Illegal but acceptedgambling flourished until 1931 when the Nevada legis-lature approved a legalized gambling bill authored byPhil Tobin, a Northern Nevada rancher. Tobin had nevervisited Las Vegas and had no interest in gambling. Hesaid the legalized gambling legislation was designed toraise needed taxes for public schools. Today, more than43 percent of the state general fund is fed by gamblingtax revenue and more than 34 percent of the state’sgeneral fund is pumped into public education.

Downtown Las Vegas already had 36 years of historyby the time hotelman Tommy Hull built the El RanchoVegas Hotel-Casino in 1941. The Flamingo Hotel, builtby noted mobster Benjamin “Bugsy” Siegel, was, by far,the most celebrated of the early resorts. The Flamingo,with a giant pink neon sign and replicas of pink flamin-gos on the lawn, opened on New Year’s Eve 1946.

In the initial years of the Las Vegas Strip, “no” was abig word. No cover. No minimum. No state speed limit. No sales tax. No waiting period for marriages. No stateincome tax, and no regulation of gambling, as it is knowntoday. Now, about the only “no’s” remaining are no stateincome tax and no waiting period to obtain a marriagelicense. No cover charge is still the rule in some casinolounges. Entertainment, along with gambling, built LasVegas’ reputation as a play-land getaway of the world.

In 1976, when casino-style gaming was legalized inAtlantic City, it became apparent to Las Vegas casino

owners that Nevada no longer could claim exclu-sive rights to gambling casinos. Undoubtedly,this hastened the beginning of another era forthe Strip: the mega resort. In 1989, the Mirageopened, and it launched a building renaissanceinto the 1990s, which included the ExcaliburHotel, one of the first family-friendly resorts. The Dunes Hotel was sold to Steve Wynn, andthe era of implosions began as it was leveled tomake way for the Bellagio. Farther south on theStrip, the world’s largest hotel, the MGM Grand,was completed in 1993 at a cost of nearly $1 billion. In 1998, the Bellagio further enhanced itshigh-end reputation by opening the first artgallery in Las Vegas featuring multi-million dollar works by master painters.

A serious disruption to Sin City’s reputation as acapital of low culture was the Las Vegas branch ofthe Guggenheim museum, which arrived in 2001.

Today, Las Vegas boasts a substantial numberof the world’s largest hotels. It attracts some 37million visitors per year, including 100,000 couplesgetting married, and earns in excess of $7.8 billionin annual gaming revenue. In 2003, tourism eco-nomic impact was estimated to be $32.8 billion.

During this year’s Centennial Celebration, the citywill be even more alive with fun and festivity. Business-minded Las Vegas also has ensured that all those visitingthe city during its centennial will have a large selection ofspecial centennial mementos to remember their visit.Clear Channel Entertainment is under contract to handlemerchandise for the Centennial Celebration and is current-ly setting up deals to sell shirts, hats, key chains anddozens of other gift items sporting the Las VegasCentennial logo.

Sales outlets for Las Vegas Centennial merchandise alsowill be numerous: hotels, variety and department stores,shopping channels and the Centennial and Clear ChannelWeb sites, to name a few. A percentage of each sale goesto the Centennial Celebration to use for local celebrations.

With a multitude of openings, activities and events,including plans to bake the world’s largest birthdaycake for the Guinness World Book of Records, there has never been a better time to visit Las Vegas, the“Entertainment Capital of the World.”

It also makes one wonder if those auction buyersknew what they were getting into when they boughtthose initial 1,200 lots in 1905. •

Credit for fireworks photos: Fireworks for theCentennial kickoff on New Year’s Eve designed and pro-duced by the world-renown Fireworks by Grucci. Gruccihas created the most spectacular displays in Las Vegas,including the opening of the Mirage, Bellagio, TreasureIsland, Venetian, Aladdin, Monte Carlo, New York NewYork and Stratosphere; the Dunes implosion, theHacienda implosion; and for many Station Casino properties and communities throughout the valley.

o-cci,e

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A28 Brilliant Results | February 2005 www.brilliantpublishing.com

s gambling has expanded over the past decade, the marketingmight of casinos has intensified proportionately. Fiercely competitivegaming jurisdictions have evolved around the country, promptingcorporate management to come up with ever increasing creativeways to drive in business.

By John G. Brokopp

BR0205_Section01 1/24/05 3:54 AM


1. Downtown Reno: Stay, Play & Win$1,000,000 – A unanimous selection among thejudges and the best promotion of the year. FourReno casinos partnered to create promotionsthat allowed each property to hold qualifyingslot tournaments and send their top 500 win-ners to the final. The 2,000 qualifying playersthen played in a two-day tournament champi-onship with the winner receiving $1 million.Players appreciated the fact so many weregiven a chance to win.

2. Barona Valley Ranch Resort and Casino(Lakeside, California): Lucky Numbers – Thispromotion gave players a chance to win bymatching randomly drawn numbers to the IDnumber on their player’s club cards. The morenumbers in sequence the player had, the biggerthe prize. There were a lot winners and all play-ers had to do was listen for their numbers.

3. Las Vegas Hilton (Las Vegas): Supernova– This promotion utilized a two-story highgame board in the Space Quest Casino.Everyone who signed up for the new player’sclub cards was given the opportunity to playthe game and a chance to win $1 million.Players liked the fact that everyone was guaranteed a prize.

4. Jerry’s Nugget (North Las Vegas): 40thAnniversary – A player’s favorite during thecelebration was guaranteed winner scratchcards. They made it clear that they do not liketo receive scratch cards that say “sorry” as areward during a promotional period.

5. Grand Victoria Casino (Elgin, Ill.): We’llPay Your Bills Giveaway – The creative andguest-friendly aspect to this promotion was that it allowed players to choose whichdrawing time they wished to be eligible forby giving them a choice of drums in whichto deposit their entries. There’s nothingworse than not being able to be present for a drawing.

6. Casino Regina (Regina, Saskatchewan):Casino Regina Playmates Promotion – Thecasino made a promotion out of their newPlayboy slot machines by giving players “meetand greet” photo opportunities with threePlayboy Playmates who were in town for theGrey Cup, the Canadian Football League’sChampionship game.

7. Trump Taj Mahal (Atlantic City): DonaldTrump’s Birthday Bash with 100 Donalds –One hundred Donald Trump look-alikeswalked through the casino handing out cashat random to people on the casino floor.

8. Casino Windsor (Windsor, Ontario):Trade In and Trade Up: After a 41-day closingbecause of a labor dispute, the casino wel-comed players back with complimentary foodoffers, free entertainment, double cash backand reward points.

9. Gold Strike and Nevada Landing (Jean,Nevada): Signature/Signature EliteMemberships – The two casinos permitted theirbest players to write their own comps. Theyalso received a free 3-night stay each weekwithout redeeming any of their comp dollars.

10. The Lodge Casino at Blackhawk (BlackHawk, Colorado): Break the Bank – The casinohad 110 piggy banks filled with cash. Winnersreceived an opportunity to select a piggybank, throw it down a chute and break it tosee how much money they had won. •

John G. Brokopp is the gaming columnist forChicago’s Daily Southtown newspaper and aregular contributor to Midwest Gaming & Travelmagazine. He possesses 28 years of experienceas a professional handicapper, publicist, free-lance writer, and casino gaming correspondent.He is also the author of two very popular books,The Insider’s Guide to Internet Gambling andThrifty Gambling. He can be contacted by emailat [email protected].

What follows are the award winners and the reasons they were the favorites of players:

One of the most popular forms of marketing tools that casinos use ispromotions. They vary in size and scope, but the bottom line goal forall of them is to encourage brand loyalty and increase the frequencyand number of gambling outings.

Playback, an e-report that is written entirely by players, sponsoredthe Ten Best Casino Promotions of 2004 at this year’s Global GamingExhibition in Las Vegas, citing the need to judge the value of promo-tions from the player’s perspective as opposed to judging thembased solely upon the casino’s perspective.

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Managing responsibility with profitabilitycan be a difficult balance...

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Discovered in America around the 15th century, smoking tobacco wasconsidered a pleasant indulgence. Although even in those early days,a number of people, including tobacco users, came to suspect thatsmoking could be harmful to the body. Still, the custom of smokingspread around the world accompanied by an ever-increasing litany ofcautions. In 16th century Turkey, smoking was an offense punishableby execution, and, in the early 20th century, 15 states outlawed cigarette smoking according to the Brown & Williamson Tobacco RiskAwareness Timeline. In more recent years, we have watched tobaccocompanies lose access to one advertising venue after another as theyhave come under stringent regulation.

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The tobacco settlement agreement,signed in 1998, fundamentally changedthe way cigarettes are advertised, promoted and sold in the U.S. The settlement impacts every aspect of thecigarette companies’ marketing prac-tices and specifically bars directly orindirectly targeting youth. Companieshave become so circumspect that theirWeb sites contain statements such as:

• R.J. Reynolds Tobacco Companyis committed to being a constructiveparticipant in developing and imple-menting solutions to public issuesinvolving cigarettes;

• Philip Morris USA has an importantrole to play in helping to prevent youthsmoking. We have a dedicated YouthSmoking Prevention department … withthe sole purpose of helping to preventyouth smoking; and

• Brown & Williamson TobaccoCorporation strongly believes that kidsshould not smoke cigarettes, under any circumstances. From an ethical standpoint,it would be wrong to try to cause peopleto take the risk of smoking.

Given this mindset and the restric-tions imposed by the 1998 settlementagreement, how do U.S. tobacco compa-nies responsibly reach adult smokerswith brand advertising?

Although the “Marlboro Man” cowboyrode off into the sunset and Joe Camelretired, U.S. cigarette manufacturers’2002 advertising and promotional expen-ditures rose to $12.47 billion according tothe annual Federal Trade Commissionreport. This number represents a signifi-cant expenditure for an industry whoseadvertising and promotional venues areseverely restricted and does not includeproduct placement, which the companies– contrary to popular belief – do notengage in.

The largest single category of expendi-tures was price discounts. These discountsare paid to cigarette retailers or whole-salers in order to reduce the price of ciga-rettes to consumers and facilitate the saleor placement of cigarettes. With newspa-per advertising decreasing from 23.1 percent of total expenditures in 1981 toless than 1 percent of expenditures since1992 and magazine advertising similarlydecreasing from 20.3 percent to .9 percentof total spending, other approaches have,by necessity, been developed, many of which fall under the promotional products umbrella.

According to the FTC report, spendingon point-of-sale promotional materialswas $260.9 million in 2002 or 2.1 percentof total advertising and promotion.

While advertising matches (cigarettesneed fire to function) are an item oftenfound at the point-of-sale, Doug Lamb,

According to the FTC

report, spending

on point-of-sale

promotional materials

was $260.9 million

in 2002 or

2.1 percent of

total advertising

and promotion.

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For additional insight into

how tobacco companies

use promotional products to

create and build brand

awareness, Brilliant Results

spoke with Dana Bolden,

senior manager for Philip

Morris USA.

BR: What promotional products are you currently using toestablish your brand with adult smokers?

DB: Everything in the gear catalog and the new catalog iscoming out any day now.

BR: What has been your most successful promotional prod-uct or campaign?

DB: The product purchased the most is the Zippo lighter fea-tured in the gear catalog.

BR: What have you found to be the most effective use of pro-motional products?

DB: Through the gear catalog. This is where we find promo-tional products to be the most effective.

BR: Are you continuing the Marlboro Miles campaign? Whatproducts do you plan to incorporate in that campaign?

DB: We have found the Marlboro Miles campaign to be aneffective means of building brand awareness with consumers. TheMarlboro catalog is where we offer non-branded items as per theMSA [Master Settlement Agreement], so people redeem miles foritems in the catalog including: Zippo lighters, poker chip sets,cowboy boots, cowboy hats and other materials that resonatewith the brand.

BR: Will you be adding more high-end items?DB: This year, we are adding a sweepstakes component

where the winner will receive 50 acres of land in Montana. I wishI was eligible!

BR: What do you see in the future for tobacco companyadvertising?

DB: Right now, we primarily communicate via two means:point-of-sale and direct mail communications. We will be increas-ing our direct mail communications. You won’t see us doing a lotof advertising, and you won’t see us doing any brand advertisingat this time.

president of the Atlas Match Company,points out: “Advertising matches havebeen around forever. Even though thepackaging may have changed over theyears, they are not new. But, they are a product that works, so people keepthem. Matches aren’t just for smoking,actually, the hospitality segment, whichincludes casinos, hotels, bars andrestaurants, is far and away the largestuser of matches.”

The FTC report for 2002, separatedthe specialty item distribution categoryinto two new categories:

1. Branded specialty item distributionincludes the practice of selling or givingconsumers non-cigarette items such asT-shirts, caps, sunglasses, key chains,calendars, lighters and sporting goodsbearing a cigarette brand’s name orlogo; and,

2. Non-branded specialty item distri-bution includes the practice of givingconsumers non-cigarette items such ascompact discs, lighters and sportinggoods in connection with the marketingof cigarettes.

In 2002, $49.4 million was spent onbranded specialty item distributionthrough the mail, at promotional eventsor by any means other than point-of-sale. Another $174.2 million was spenton the distribution of non-branded, non-cigarette items in connection with themarketing or promotion of cigarettes.The combined total of these two itemsaccounts for 1.8 percent of total expendi-tures. An additional $24.7 million wasspent on retail value-added, free non-cigarette items.

The use of smoking-oriented promo-tional products is not limited solely totobacco companies. Bruce Lange, vicepresident of operations for Olde MasterOriginals LLC notes that humidors areoften used as side prizes in golf tourna-ments for best hole scores, longest drivesand other event accomplishments. In fact,many promotional products used today

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by event planners and tobacco companies are perceived as high quality gifts.

When cigarette companies changed their advertis-ing to sell an “image” rather than a product, sportinggoods-related promotional products emerged as apopular giveaway. Some of these image ads aredesigned to appeal to consumers’ sense of risk ordanger, linking the idea of smoking with the notionsof freedom and personal choice. Jessica Savage, inThe Implications of Smoking Hazards on CigaretteAdvertising, concludes that, “a ‘dangerous’ productactually gains its popularity because of the riskinvolved in using it.” This approach has garnered agreat deal of concern and controversy because of theappeal that danger, risk and the sense of rebellionassociated with smoking have for young people.Research by ABC News for a program on the tobaccoindustry found that the average age for beginningsmokers was 12-and-a-half-years-old. Most youngsmokers admitted trying to quit by the age of 14, but nearly one-half admitted that they were hookedby age 15.

The possibility of smoking advertising cam-paigns appealing to youth is so sensitive that New

York State Attorney General, Eliot Spitzer, recentlyfiled a motion to stop Brown & Williamson’s “KoolMIXX” campaign, which focused on hip-hop musicand culture, including DJ competitions.

Even cigarette companies are spending millions of dollars on anti-smoking advertising. In the U.S. where the American Lung Associationestimates that every day 4,800 teenagers taketheir first drag – of those, about 2,000 go on tobecome addicted to cigarettes – some of thetobacco company campaigns have been heavilycriticized. However, Donald Harris, vice presidentof international corporate affairs for Philip Morris,the nation’s largest cigarette company, reaffirmedthe industry’s commitment to preventing under-age smoking in a recent BBC article where hestated: “Philip Morris does not want children to smoke. We work hard, spend money…and support governments to do everything we can toprevent children smoking.”

This is an area where anti-smoking groups havestarted to use promotional products to encourageyoung people not to smoke. Patrick A. Broun,Director of Sales and Marketing for Better Life Linefinds that promotional products are being used byhealth organizations and groups targeting teens toencourage them not to start smoking. From pam-phlets that list the dangers of smoking to children’scoloring books illustrating smoking alternatives,anti-smoking promotional products are readilyavailable according to Jean Gadasi, National Sales& Service Manager for The Positive Line.

So, whether you are promoting your cigarettebrand to adults or encouraging kids not to smoke,promotional products can be powerful tools. Thefact that cigarette manufacturers still are part of abillion dollar enterprise – in spite of the dangersassociated with their product – is a testament tothe power of promotional products. Or, as Altria,the parent of Philip Morris, states on its Web site:The growth of our operating companies’ brands isdriven by constant innovation.

The successful use of promotional products bythese companies should encourage other enter-prises to re-evaluate these powerful sales motiva-tors and branding devices. U.S. tobacco companieswere forced to innovate and repackage their promotional efforts out of necessity, and manyhave made it work for their bottom line. Likewise,imagine what promotional products could accom-plish in enhancing the marketing efforts for “beneficial” organizations and “safe” productmanufacturers if they too were approached with a similar innovative mindset. •

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Shrouded in the mists of legend are tales ofalchemists trying to turn lead into gold. Little didthey know it was a two-step process. Combinetwo hydrogen atoms and one oxygen atom andyou get H2O. It might not be gold, but put thatH2O in a bottle and watch the Au accumulate.

BR0205_Section01 1/24/05 10:28 AM


Private label bottled water has become so popular that MineralSprings Bottled Water has developed some 25,000 different

custom designed labels for everything from weddings to airlines.

BR0205_Section01 1/24/05 4:05 AM


Born out of fears regarding the quality of municipalwater supplies, the bottled water industry has turned thatworry into gold. In fact, water claimed the No. 2 positionamong beverages in the United States in 2003, with high-er consumption than beer, milk and coffee. Now secondonly to soft drinks, many analysts predict that by the endof the decade water will claim the top spot. According toInformation Resources Inc., sales of bottled water were up11.5 percent in 2003, topping $3.2 billion.

PepsiCo’s Aquafina brand leads the flotilla withmore than $376 million in sales. Current marketingcampaigns featuring people drinking Aquafina in socialsettings may help to push those numbers even higher.Coca-Cola’s Dasani, the official water of NASCAR, triedto hold the line on price, which may have contributedto its No. 2 position in the convenience size bottledwater race. Private label water, which rose 29% to$266.5 million, held this year’s No. 3 spot, lending cre-dence to the argument that brand loyalty is secondary.This would seem to indicate that while consumers

drink bottled water for its perceivedpurity and healthfulness, they areprice sensitive. Private label water isreaping the benefits of this consumerbehavior, especially in conveniencesize bottles.

In the convenience size bottledwater market, brand names and pri-vate labels are increasing sales rev-enue with new multi-packs that fiteasily on refrigerator shelves.Available for years in other areas ofthe beverage market, this builds onconsumers’ desire for increased convenience and availability.

The table indicates the top 10 sellers in the convenience/still bottled

water race, with the private label waters posting significant increases in dollar sales and market shareover the prior year.

The bottled water market also is expanding inother ways. Lightly sweetened flavored waters are tempting consumers, especially low-carb con-sumers. According to Kitty Kevin’s recent article,Water Log, 2004, in Beverage Industry, PropelFitness Water, Pepsi/Quaker’s Gatorade spin-off, isthe standout in this category with $111 million insales. VeryFine Fruit2O is the other flavored entryenjoying significant sales. VeryFine’s success didnot go unnoticed, and the company was purchasedby Kraft in 2004. Other flavored waters are floodingthe market, and some even bring a little somethingdifferent to the table.

Whether it is Soy2O’s blend of fruit-flavored waterand soy isoflavones or oxygenated Power Water,adding something to plain old H2O seems to be limitedonly by entrepreneurial imagination. Waters withadded calcium, fluoride, vitamins, minerals or evennicotine never claim a large part of the market, butthey do help spur product activity. Waters such as Eon,a water that claims to deliver cellular hydrationthrough technology that restructures the water in bio-molecular clusters to provide cellular absorption,enhances the body’s oxygenation. Alternatively, NITROH2O Energy Water is caffeinated, oxygenated water forthe real movers and shakers. On the other hand, pH-controlled water such as Rush Living Water promisessuper hydration and slimming.

This increasing popularity of water in all its variousforms, whether still, sparkling, flavored or blended hascreated an excellent opportunity for its use as a privatelabel promotional product. Consumers’ acceptance ofprivate label products has increased as private labelquality perceptions have skyrocketed from “equal to”to “better than” national brands. This acceptance hasmade private label water a potent profit maker or, atthe very least, a quality give-away for almost anyevent or organization.

Top Convenience/Still Bottled Water by Brand

Brand Dollar Sales % change vs. Market Share % change vs.prior year prior year

Aquafina $376,274,600.00 15.97 17.06% -0.23

Dasani $271,154,000.00 10.59 12.30% -0.78

Private Label $266,515,100.00 29.03 12.09% 1.07

Poland Springs $143,723,500.00 6.9 6.53% -0.65

Arrowhead $114,723,500.00 7 5.20% -0.51

Propel $111,239,900.00 47.52 5.04% 1.02

Dannon $107,158,000.00 36.87 4.86% 0.69

Deer Park $81,361,670.00 77.23 3.69% 1.24

Evian $75,676,050.00 -4.51 3.43% -0.79

Crystal Geyser $74,737,720.00 -4.87 3.39% -0.8

Category Total $2,205,046,000.00 17.57

Source: Information Resources Inc. Total supermarket, drug and mass merchandisers, minus Wal-Mart, for 52 weeks ending July 11, 2004

BR0205_Section01 1/24/05 4:06 AM

John Adamonis, vice president of Mineral SpringsBottled Water indicated that private label bottledwater has expanded into many different market seg-ments beyond that of a trade show promotion.

“Today, you can find private label bottled waterthrough every market segment from funeral homes, toautomobile showrooms, to doctor and dental offices,”Adamonis said.

Private label bottled water has become so popularthat Mineral Springs Bottled Water has developedsome 25,000 different custom designed labels foreverything from weddings to airlines.

“A significant factor in the growth of private labelbottled water in the restaurant and hotel segment ofthe food service industry is the opportunity for profitcreated by its pricing structure,” Adamonis added.“This has also been a factor in its growth as a fund-raising item.”

The truth of this statement is evident to any hotelguest who has paid anywhere from $1.50 to $8 for abottle of a hotel’s private label “liquid gold.”

The increased popularity of private label bottledwater as a promotional fundraiser and giveaway iscertainly one of the reasons that AmericanGreenwood, a purveyor of numerous promotionalproducts, has added private label bottled water toits product inventory.

Edward Sokolofski, president of American

Greenwood says that he looks at bottled water labelimprints as varied as any advertising medium sinceit appeals to a wide variety of clients. Further evi-dence of the increasing popularity of private labelbottled water is illustrated by the fact that it can beordered online from most suppliers with low or nominimum quantity order requirements. Some bottledwater companies even co-brand their water withvarious charitable organizations to not only raisemoney for the charity, but to build awareness byadding the charity’s logo prominently on the label.Other companies are taking private label bottledwater high end with glass bottling, colored caps andcustom label design.

Private label bottled water can be the perfect pro-motional product for:• Retail – convenience and grocery stores, gas

stations, pharmacies• Restaurants and Food Establishments• Schools – sports teams, cafeterias, clubs, reunions• Fund-raising – schools, churches, golf outings, non-

profit organizations• Organizations – office use, picnics, promotions, corpo-

rate meetingsSo, the next time that your organization is looking

for golden returns – whether for charity or as a boosterto your bottom line – consider turning bottled H2O intopure promotional Au. •

BR0205_Section01 1/24/05 4:07 AM

M

By Lee Jay Berman

BR0205_Section01 1/24/05 4:08 AM

www.brilliantpublishing.com

More than ever businesses are being sued

by employees. The growth rate of sexual

harassment, wrongful termination and

discrimination claims is staggering. Legal

defense costs on these kinds of cases can

easily run into the hundreds of thousands

of dollars, and jury verdicts can exceed

$1,000,000, yet this continues to be an area

where most companies invest little or no

time on preventative cures.

Brilliant Results | February 2005 47

M

Three SolutionsThere are three things a busi-

ness can do to dramatically reducethe likelihood of employment litiga-tion: adopt a policy specificallystating definition, company policy,and procedure on discriminationand harassment; train all levels ofemployees in how to avoid thesesituations; and adopt a dispute resolution policy for early andeffective resolution of complaints.

Adopt Guidelines &Procedures

Every company needs to adopt aspecific set of guidelines and proce-dures defining appropriate workplaceconduct making it clear that it doesnot tolerate harassment or discrimi-nation and defining what the EEOCconstitutes these to be. They shouldpost this policy and distribute it to all employees.

Train All Levels of EmployeesIn business, we promote employ-

ees because they can close deals orbecause they know about manufac-turing widgets rather than becausethey possess strong managementskills. Managers must be trained indisciplining and discharging employ-ees and conflict management.

One step is training employees ofall levels to successfully manageworkplace conflict. It is surprisingthat when surveyed, legal staff,human resources, customer serviceand department heads will answerthat the percentage of their timespent negotiating or conflict resolv-ing is anywhere between 40-80% oftheir working hours, and yet whenasked the number of hours of trainingthey have received in either negotia-tion or conflict resolution skills, theygenerally answer eight hours or less.

BR0205_Section01 1/24/05 4:09 AM


The faculty of the nationally recognized StrausInstitute provides one example of such training forDispute Resolution at Pepperdine University School ofLaw, where we offer popular workshops in strategicnegotiation skills and practical techniques to resolvedisputes efficiently, effectively and respectfully bycrafting lasting win-win solutions to conflicts beforethey escalate into violent or legal issues. These work-shops are also effective for learning to diffuse angrypeople, whether customers or employees.

Bill Gates says, in his book The Road Ahead, “Morethan ever, an education that emphasizes general prob-lem solving skills will be important. In a changingworld, education is the best preparation for being ableto adapt”. Your team will see measurable differencesin the way employees treat each other and customersafter workshops such as Pepperdine’s.

In today’s work environment, it is also important tolearn the unique communication expectations thatexist across cultures and from one gender to the other.These multicultural and gender issues often underliecommon workplace disputes. Part of the difficulty indealing with sexual harassment is that men andwomen often have different ideas about what it is.Managers need training to recognize potential hot-but-tons and develop specific communication skills to helpthem to avert such conflict as well as discriminationand sexual harassment claims by building an environ-ment of trust and respect, by respecting each other’sdignity. There are many resources available for thistype of training, but perhaps none better in cross-cul-tural skills than Nina Meierding of the MediationCenter for Family Law, and none better in gender rela-tions than Jane Sanders of Gendersmart.

The third step is a legal review and presentation.This three-step process can include an overall audit ofthe human resources department for legal compliance,a legal review of policies and materials including thecompany handbook, and a presentation to employeeson what does and does not constitute discriminationand sexual harassment. This is followed by a presen-tation to management on company liability and potentialpersonal liability if they know about and fail to act onsuch behavior. One such process is expertly providedby Michael Robbins, Esq. of EXXTI, Inc.

Adopt an ADR PolicyAll businesses should adopt an Alternate Dispute

Resolution (ADR) policy to head off litigation. Manycompanies are having employees sign arbitration clausesin an attempt to reduce these costs. Better yet, mostsign a mediation clause in addition to the arbitration

clause, the intent being to mediate first and arbitratethose cases that are not successfully resolved inmediation. Those on the cutting edge are initiating an in-house dispute resolution program set up to fieldemployee complaints before the process moves to mediation.

Most know arbitration is an adversarial, adjudicativelegal process wherein each party’s legal representativeprepares a case in order for the neutral third party tojudge the matter. Participants yield control of the out-come to the arbitrator, whose award, with very limitedexception, is not appealable, even in the event of anerror in law.

Mediation, by contrast, is a cooperative, collabora-tive problem solving process where the parties retaincontrol of the outcome. It is essentially negotiationthrough an intermediary who facilitates arrival at amutually agreeable solution. The final outcome is onewhere the parties have agreed to each point and abinding document is drawn and executed.

Mediation provides a place for all involved to engagein meaningful dialogue in order to foster creative win-winsolutions. Working out problems promptly, when theyare small, often prevents misunderstandings that occur when communication breaks down and problemsescalate and fester.

A workplace dispute resolution program is the mostefficient and expedient way to resolve work relatedconflicts and employment disputes. This programshould outline a process ranging from a humanresources consultation to informal and formal manage-ment review and finally a dispute resolution committee.

No business is entirely without disputes, and no onelikes to talk about conflict. The difference betweenefficient, productive, successful businesses and otherscan be in how they manage conflict. The time andmoney spent to fight an employment case in court canstifle a small business. In addition, the managementhours spent responding to discovery requests, deposi-tions and trial preparation can devastate any business’soperations. Implementing the steps described above isthe best way to avoid this nightmare and focus on yourcompany’s growth and success. •

Lee Jay Berman is a full-time mediator and trainer.He is Director of the “Mediating the Litigated Case”program at the Straus Institute for Dispute Resolution atPepperdine University School of Law. With the facultyof the Straus Institute, he provides workshops and training courses for businesses in the areas of strategicnegotiation skills and conflict resolution skills. He canbe reached at [email protected].

BR0205_Section01 1/24/05 4:09 AM

THERE IS NO SUBSTITUTE FOR

EXPERIENCE

Resolve your dispute today.

LEE JAY BERMANPROFESSIONAL MEDIATOR

1.800.395.6495

[email protected]

Over 950 Successful Mediations.

Over 9 years as a full-time mediator.

Director of Pepperdine Law School’s renowned Mediating the Litigated Case Program.

113 mediations in 2003, all but 14 resolved.

[Mediation brings resolution on your terms.]

BUSINESS/LEGAL DISPUTES


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BR0205_Section02 1/24/05 4:29 AM

Document2 12/16/2004 4:42 PM Page 1


By Bill NissimPar·a·dox

Pronunciation: ‘par-&-”däksFunction: noun

1: a tenet contrary to received opinion2: a statement that is seemingly contradictory

or opposed to common sense and yet is perhaps trueAt the heart of branding resides a distinct paradox. This article meticulously unveils

this paradox and examines its true intricacies. It begins by asking what and whythis paradox occurs. Next, it translates branding from the realm of the theoreticalinto metrics that are financially based. This approach illuminates the critical needfor brand management, and in turn, quantifies the process into tangible results. Anew metric arises from this process – Return on Customer Investment (ROCI).

BR0205_Section02 1/24/05 1:43 PM


In previous articles, my constant droning thattop management “doesn’t get branding” hasreached an apex (in my mind) and this articleattempts to frame the discussion in terms thatbusiness leaders are most comfortable with. If“financial metrics” are more palatable to organi-zational leaders, then let’s translate brandinginto quantifiable terms (ROCI).

What is this paradox?As noted in the above Merriam-Webster defi-

nition, a paradox is an idea, thought, or acceptednotion that may be contrary to the truth. Intoday’s business environment, marketing plays asubservient role in crucial imperatives that drivestrategic trajectories of organizations. The notionof branding, primarily viewed as a subset of marketing, receives even less notoriety.

The business paradox, more specifically, is thelink between branding and an organization’s marketvalue, but at the same time, is received amongst cor-porate America as unrelated. The brand paradox isfurther compounded by erroneous conceptions ofwhat marketing is and the real impact it plays inbusiness valuation. A quick test – why would youconsider buying Nike’s shoes or invest in their stock?Because their P/E ratio is 20.3 or your overwhelmingdesire to associate with this brand identity?

Why does it occur?In my estimation, the prime reason for this wide-

ly accepted opinion is the absolute dependence onfinancial imperatives. When considering a stockpurchase or a business relationship with anotherpublic company, most leaders immediately turn tothe annual report, skim the statements, and calcu-late key ratios. In their minds-eye, the numbers(historic) dictate the health and proposed futuretrajectory of a given concern. Unfortunately, thereisn’t a line item in an organization’s 10K statementfor neither brand contributions nor valuation. We allagree that Coca Cola and Nike’s most valuableasset is their brand mark, yet try to find a financialvaluation on the income statement or balancesheet. Touché!

Translation in financial termsDuring graduate school, my professor introduced

us to a new concept called Integrated BrandCommunications (IBC). Until such time, IntergradedMarketing Communications was the latest raveamongst organizations as a means to unify theircorporate brand messages. IBC, on the other hand,quantifies media expenditures and through aspreadsheet format, allows the leader to evaluatethe return on investment. In addition, a direct link(for the first time) can be established betweenmedia expenditures and growth in revenues. This causal relationship between media placementand ROI is rarely utilized due to thin resources and breakneck speeds most organizations traverse.Another significant paradox is this – organizationsuse financial results as the key metric of perform-ance, yet forego this critical analysis and squanderprecious resources in the process. In my opinion,the application of IBC provides managementaccountability and tangible metrics to assess theirstrategic branding and marketing initiatives!

BR0205_Section02 1/24/05 4:30 AM


An abbreviated ROCI spreadsheet above provides the frame-work by which a financial assessment can be undertaken. The essence of this exercise is to establish the available marketpotential, the current income flow without communications,and the ensuing outflow by pursuing an investment in brandcommunications. If this methodology was followed in pursuantyears, a true ROCI could be established and evaluated in quantifiable terms.

How can one effect change?The application of IBC shifts marketing philosophy from

that of measuring awareness to one of targeting opportunity.For the first time, it forces marketing to analyze the overallcategory potential (market leaders per segment) and determinethrough a targeted effort what a focused IBC program canyield. This process also allows the monitoring of current mediaspend to assess the ROI from year-to-year. Finally, leaders cannow apply accountability to marketing budgets and evaluatethe effectiveness of different programs. In a world driven byfinancial metrics, isn’t it time to measure your marketing staff and subsequent programs?

Final thoughtsIf management hired one individual to

implement IBC throughout the organization,the return on investment and increase in busi-ness opportunities would dwarf the monetaryexpenditure in less than one year. Even if yourorganization had one staff member responsible forthe marketing function, the accountability realized inthe short term would be dramatic. The application ofIBC not only helps to identify what and why of your cur-rent marketing programs, it quickly enables leaders to shiftinvestments from underperforming programs to those withmore attractive returns!

Bill Nissim consults with nonprofit organizations on brandmanagement issues. He has a BA in Advertising and a Mastersin Marketing Communications. His website contains referencematerials, links, and helpful articles on the many facets ofbranding at www.ibranz.com. You may contact the author at [email protected].

Return on Customer Investment

Category Requirement Assumptions Domestic Europe Asia

Base Income Flow Assumptions $ $ $

Scenario A: No Communications Investment $ $ $

Scenario B: Communications Investment $ $ $

ROI Calculation $ $ $

Incremental ROCI $ $ $

(A detailed spreadsheet from Shultz & Barnes textbook can be viewed by following this link)

BR0205_Section02 1/24/05 4:31 AM


W RKSWhatCase Studies in Success

Hospital

Industry: Hospital – Worker Appreciation

Challenge: To create excitement and awareness of the hospital’s recent high-visibilityrecognition and acknowledge physicians, employees, and volunteers forthe work they do each day, which was an integral part of the hospital’sachievement.

Solution: After being included in the U.S. News & World Report’s list of the Top 100Hospitals, Hillcrest Hospital wanted to thank the 3,500 physicians; employ-ees and volunteers who helped the hospital earn that listing. The hospitalalso wanted to let them know how important they were to the hospital’ssuccess. Using the theme “We’re Hot Because of You,” Hillcrest distributedcustom labeled bottles of hot sauce and grilling sauce to hospital person-nel. Hot sauce was presented in a red dynamite stick tube to the employ-ees and volunteers by department supervisors adding yet another opportu-nity to thank them for their contribution. Administrators and physiciansreceived two or three-packs of grilling sauces.

Each dynamite tube and grilling sauce pack presentation included a letterfrom the hospital’s CEO. The sizzling promotion coincided with the peaksummer barbeque season, but the buzz and goodwill generated by the pro-gram continued for several weeks.

Result: Hillcrest reported an overwhelming, enthusiastic reaction to the promotionincluding weeks of positive feedback and the appearance of the sauce bot-tles on employee desks long after the promotion ended.

Case study provided by: Eric Ekstrand, MAS, Senior Vice PresidentMCMCC – The Mort C. McClennan Co. – [email protected]

BR0205_Section02 1/24/05 4:32 AM



Construction

Industry: Construction – Brand Building

Challenge: Hooker Creek is a full service construction materials and services supplier.With nine core product lines including asphalt, concrete, equipment rentals,excavation, trucking and more, they sell a wide variety of products andservices to a very diverse customer base. The challenge was to find aunique way to build their brand and educate both clients and prospectsabout their diverse offerings. The message needed to be delivered to a spe-cific target audience of construction workers in the region they serviced.

Furthermore, they wanted to develop a highly visible, value added giftitem that would have a strong perceived value by the recipient. To accom-plish this it would be necessary to include more “main stream” valuerather than simply providing information about the company’s productsand services. The only way to do this was to involve other communitybusinesses that could offer something of interest and value to the sametarget audience.

Solution: The Central Oregon Construction Summer Survival Kit! Otherwise knownas a red, soft-sided cooler filled with promo merchandise that everyone inthe construction industry loved to receive. This kit contained FOURTEENdifferent promotional items and NINE discount coupon offers. There wassomething for everyone, including: a T-shirt, bottled water, a flashlight, alighter, a carpenters pencil, a pack of Post It notes, a long-distance callingcard, a free car wash, a free game of bowling and discounts at places likethe Subway sandwich shop!

Central Oregon can get very hot in the summer. People that work in theconstruction industry are typically subject to hard labor in tough condi-tions, and are rarely ‘thanked’. The kit provided the opportunity to play on“surviving the hot summer”, and to say simply “Whether you are our cus-tomer or not… Thank you for doing what you do every day!” Thatapproach went over VERY well!

Distribution was done by salespeople and at retail point of purchase loca-tions. This was critical in connecting the dots. It drew customers andprospects into the stores so inside salespeople could sell and inform, ANDit made sure the outside salespeople were afforded a great opportunity toget in front of clients and prospects with a “soft sell” approach.

Result: Over 5,000 kits valued at $75 each were given away! Since there were somany participants, there was no heavy financial burden on any one spon-sor and recipients absolutely loved them. The local TV, radio and newspa-per all covered the uniqueness of the campaign, and it ultimately won anational excellence in marketing recognition award.

Case study provided by: Hooker Creek – www.hookercreek.net

BR0205_Section02 1/24/05 4:33 AM



School - Non Profit

Industry: School – Non-Profit Fundraising

Challenge: A youth cheerleading team was looking for a fundraising item to help off-set travel expenses that normally were the responsibility of each family orparent.

Solution: Through a family referral, a Philadelphia based promotional productsprofessional was brought in to help in the quest. Several ideas were dis-cussed and evaluated by the cheerleading team and the promotional prod-ucts professional. Silicone rubber bracelets were chosen due to their lowcost, high profile image and maximum return of investment. As a localsupplier, TimeZone® was contacted to see if the idea was feasible and ifTimeZone® could deliver the product. TimeZone® sent several samples tothe client to demonstrate the quality of the product they were offering andsuggested making color changes as well.

After receiving the samples, the Team decided to order bracelets with theword CHEER embossed into the bracelets. The word cheer was chosenover the team name in order to sell the bracelets to other teams and fami-lies as well as their own. An order for 4000 bracelets was placed. The orderwas partially finished in two weeks for sales at a major local competition.The balance were finished one week later.

Result: The bracelet results were fantastic. There was a genuine CHEER braceletcraze at the competition, with certain colors becoming highly prized com-modities. A reorder was placed immediately and most importantly; a signif-icant amount of money was raised to offset the parental burden.

Case study provided by: Chris Smith, Vice PresidentCalconix, Inc. – TimeZone“ – [email protected]

BR0205_Section02 1/24/05 4:34 AM



Goodwill

Industry: Professional Sports Team – Goodwill

Challenge: Create a unique giveaway / medium to convey goodwill between cus-tomers, the Portland Blazers and Burger King.

Solution: A single CIT Trading Tag on a short chain with the Trail Blazers’ logo onone side and an incentive program on the other side. The tag is packagedin a four-color printed-paper pouch with a basketball pebble leather imprintand the Trail Blazers’ logo.

The Trading Tags were distributed to 100,000 residents in the Portland area. From the date of receipt until May 1st, 2005 the bearer ofthe tag will receive a free upsizing with the purchase of a value meal.

Result: CIT Trading Tags proved to be the ideal medium for this goodwill promo-tion. They were small enough to be sent out, durable enough to sustainseveral months of use and easy to keep around as a keychain, bag pull, etc.

Case study provided by: Raf Vanreusel, PTC International / PTC Premiums– [email protected]

BR0205_Section02 1/24/05 4:34 AM



Entertainment

Industry: Entertainment – Movie Promotion

Challenge: Create a movie promotion for the “Power Puff Girls’ that would captureone of the most memorable scenes of the movie – a cartoon figure trappedin a liquid vial.

Solution: One of the best ways to promote an idea is by wearing it! The client want-ed a give away for the opening night, which left a lasting impression andgave the look of the liquid trap. With just a printed shirt, this effect couldnever have been achieved! Once the promotional products distributor heardabout our new and unique liquid filled T-shirt, he fell in love with the ideaand presented it immediately to his client. The order came in the same day!

The image of the cartoon was printed on the shirt and a liquid pouch wasapplied on top of it, which represented exactly the scene in the movie.

Result: The liquid filled T-shirt was a big hit, the client was happy and our promo-tional products distributor was a considered a creative genius for findingjust the right product!

Case study provided by: Michael Hirsch, Hirsch Presentations –[email protected]

BR0205_Section02 1/24/05 4:35 AM


BR0205_Section01 1/24/05 4:10 AM


Web site owners should spendas much time on optimizing theirsites for search engines and direc-tories, if not more, as they spent onthe initial design and copy for thesite. Otherwise, no matter howgreat your Web site is, mostInternet searchers will never findyour site. When teaching a semi-nar, I provide the following analogyfor an un-optimized Web site.

“Your friends would beimpressed if you buy a new RollsRoyce. However, if you don’t have adrop of gas in the tank, and there’sno air in the tires, you won’t be ableto take them for a ride, and theywill be much less impressed.”

An un-optimized Web site is likea car without fuel in the gas tankor air in the tires. It is dependenton traffic that you drive to it by

The answer to the headline question is both

“important” and “unimportant.”

Search engines are important to your Internet

marketing plan because according to a recent

study by Georgia Institute of Technology, 85% of

all Web site traffic originates from a search engine

or directory. Juniper Research confirms this study

with a finding that shows 70% of all online buys

originate from a search engine or directory.

By Randall P. Whatley, President, Cypress Media Group

BR0205_Section01 1/24/05 4:10 AM


means other than search engines and directories.Recently, many previous disciples of search

engine optimization have lost confidence in searchengines. This change of heart was brought aboutbecause in fall 2003, Google reindexed it’s listingwith the now infamous “Florida Updates,” andmany Web sites with high page ranking lost positioning. For those sites affected, traffic andcommerce plunged.

This and similar happenings are why I can alsoargue that search engines should not be important toyour marketing plan. Reindexing is a constant part ofthe search engine and directory listing process. Nomatter how well your site is optimized today, searchengines regularly change their indexing algorithms.Your Web site cannot afford to be dependent on asearch engine robot’s programming. You must aggres-sively push traffic to your Web site with other means.

Assuming you have a fully optimized Website, what should your approach be tosearch engines and directories?• Alter your expectations of search engines

and directoriesFirst, remember that it is not the search engine’s

responsibility to deliver visitors to your Web site.Instead, a search engine tries to provide searcherswith the best possible response to their query.

When you build and update your Web site,think about the content from the perspective of

your visitor. What information are your visitorsseeking? Do you provide this information on yourWeb site? Are you also providing the searchengines and directories with the information theyneed to index your information properly?

What else should you do to succeed with Internet marketing?• Adopt an aggressive paid Web site

promotion planEvery Web site owner’s favorite new business

lead is the one that comes directly from searchengines and directories at no cost. However, peopleover whom you have no control manage searchengines and the computer programs that run them.Besides, your tech savvy competitors are makingthe same smart moves as you to keep their Websites optimized. No matter what you do, there willbe certain keywords and terms, especially broadkeywords and terms, that will not hold first pageranking on the major search engines. When thisoccurs, you need to set up a “pay-per-click” strate-gy for those keywords and terms.

In addition, you need to push traffic to yoursite with other Web promotion systems by doingthe following:• Write articles and publish them on other sites • Set up cross-promotion links with other sites • Buy listings in trade directories or on affiliated

industry sites

BR0205_Section01 1/24/05 4:12 AM


Understand yourcompetitors

Internet searchengines and directo-ries remind me of thetelephone book yel-low pages. Like theyellow pages, whenyour prospects go there tofind you, they also find yourcompetitors.

When your new business prospectsfind you in a search engine or directorylisting, they will also find yourcompetitors. How will your sitefare in comparison? Will thosevisitors find more of the infor-mation they are seeking onyour site or one of the others?When prospects contact youby telephone or e-mail, what isyour response time comparedwith your competitors’? How doyou compare with competitors onguarantees, delivery schedules, serv-ice agreements, and other elements that yourprospects will consider before buying?

Understand your competitors, their Web sites, andtheir offers so you can view your marketplace and Website in the same way as your prospects do. Makestrategic changes to competitively position yourselfagainst those whom your prospects will find onlinewhen they find you.

Know your Web site metricsInternet success is a game of numbers. The more

hits you receive, the more people will inquire about theproducts or services you sell. The more inquiries youreceive, the more sales you will close. The more salesyou close, the higher your return on investment will beon your Web site.

Do you know your metrics? Do you have a trackingprogram on your Web site that shows you how manyvisitors your site receives, where they are coming from,and the pages they view? Do you know how many hitsyou need to receive for a prospect to contact you? Doyou know your closing rate on those contacts? Do youknow your average Web site sale? You should knowthe answers to all of these questions to understand

your Web site metrics. Once you know this, you

can profitably venture intoother Internet marketingsystems like pay-per-clickads, banner ad buying, and

e-mail marketing cam-paigns. If you do not know

this information, you are ill informedto make sound marketing decisions.

Adopt improved tactics toclose more sales from your site visitors

Once you do everything cor-rectly to lead your Web site

visitors to contact you,one final hurdle remains:closing the sale. Whatsystems do you have in

place to follow up withyour Web site leads? How

quickly do you follow up onthose leads? Can you improve

your response time?

Expect continued marketing changes andchallenges in the future

One of the factors that make the Internet so greatis the continuous challenge it presents to make itwork and work successfully. Successful Internet mar-keting is both an art and a science. The speed ofchange in the Internet world is almost incomprehensibleto traditional marketers. We don’t know for sure whatlies ahead, but we do know that it will be differentand will happen quickly. Adjust your marketing mind-set to these realities, not only to keep your sanity, but also to prosper from the enormous commer-cial opportunities the Internet offers. •

Randall P. Whatley is a 26-year media veteran withdiverse business experience. Whatley is president ofCypress Media Group, Inc., www.cypressmedia.net,an Atlanta-based advertising, public relations, andtraining firm. He has extensive experience advisinggovernment officials, political candidates, public officials, and corporate executives on media relationsand presentation skills. He can be reached by e-mailat [email protected].

BR0205_Section01 1/24/05 4:13 AM


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Free Product Information. February 2005 Issue.For free product information from these suppliers, complete and mail this page to: BrilliantResults Magazine 9034 Joyce Lane Hummelstown, PA 17036.Or fax to (717) 566-5431.

Name Title

Company Industry

Address

City State Zip

Phone Fax E-mail

Supplier Page No.BAS 11

Bella 13

Blake & Hollister 27

Brand It Direct 53, 55

Brilliant Results Magazine™ 76

Bullet Line Back Cover

CaddyO™ 33

Calconix / Time Zone® 45, 71

Daiwa 19

Hartwell Industries / Liz Claiborne 7

Image Products / Crown Mats 57

KEY-BAK® 37

King Louie 41

Mediation Tools 49

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Pencoa / Supermatic Line 5

Private Label Executive Gifts Inside Back Cover

Pro Innovative 23

Sierra Pacific 35

Skagen Designs, LTD 15

Warwick Publishing 21

World Wide Line Inside Front Cover

THINGS WE LOVE Section

Supplier Page No. Product No.Cellular Jewelry 50 1

AITG 50 2

Zippo 51 3

Chocolate Inn 51 4

Promo Biz 52 5

Pro Innovative 52 6

Imprint Plus 52 7

Turfer Sport 54 8

Pro Innovative 54 9

Wine Design 56 10

Time Products International 56 11

Gill-line 58 12

Logo Dough 58 13

TM



BR0205_Section02 1/24/05 1:44 PM


March 1 – 2 Association for Convention Marketing Executives (ACME) Annual ConferenceWashington DC Convention Center, Washington, DCInformation at: www.acmenet.org or Call: 202.547.6340

March 1 – 3 RFID World 2005 – Radio Frequency IdentificationGaylord Opryland Texas‘ Resort & Convention Center, Grapevine, TXInformation at: www.RFID-world.com or Call: 800.608.9641 x 210

March 7 – 9 PrintMedia Conference & ExpoNew York Hilton & Towers, New York, NYInformation at: www.printmediaexpo.com or Call: 800.627.2689

March 11 – 13 Imprinted Sportswear Show Atlantic CityAtlantic City Convention Center, Atlantic City, NJInformation at: www.issshows.com or Call: 800.933.8735

March 13 – 16 12th Annual CFO RisingOmni Rosen Centre Hotel, Orlando, FLInformation at: www.cforising.com or Call: 888.767.5924

March 19 – 22 NEXPO 2005Dallas Convention Center, Dallas, TXInformation at: www.naa.org/newspapers05/ or Call: 703.902.1777

March 20 – 23 COE Your Way: 2005 Annual Conference & TechniFairPhoenix Civic Plaza Convention Center, Phoenix, AZInformation at: www.coe.org of Call: 800.COE.CALL

March 21 – 22 Direct Marketing to Business (DMB) ConferenceCaribe Royale, Orlando, FLInformation at: www.the-dma.org/events

March 30 – April 1 The ASI Show – Las Vegas – Advertising Specialty InstituteVenetian/Sands Expo Center, Las Vegas, NVInformation at: www.asishow.com or Call: 800.546.3300

March 31 – April 2 The 59th Annual International Sign EXPOMandalay Bay Convention Center, Las Vegas, NVInformation at: www.signs.org/events/index.htm or Call: 703.836.4012

March

2005Calendar

* To have your show listed in our Calendar please send your information to Brilliant Results magazine. *

BR0205_Section02 1/24/05 4:37 AM


April 1 The Folio: Show WestLos Angeles Airport Marriott, Los Angeles, CAInformation at: www.wpa-online.org/folio.html or Call: 212.332.6412

April 4 – 6 TechEd International Conference & ExpositionPasadena Convention Center, Pasadena, CAInformation at: www.TechEdEvents.org or Call: 916.418.5136

April 5 – 6 eMarketing 5Crowne Plaza San Francisco, San Francisco, CAInformation at: www.emarketingassociation.com or Call: 401.315.2194

April 5 – 7 FOSE 2005Washington DC Convention Center, Washington, DCInformation at: www.fose.com or Call: 202.772.5746

April 5 – 7 Infotec 2005Qwest Center Omaha, Omaha, NEInformation at: www.infotec.org or Call: 800.996.3233

April 5 – 8 RetailVisionHyatt Regency Grand Cypress Resort, Orlando, FLInformation at: www.retailvision.com or Call: 603.471.4200

April 7 – 8 Chicago DM Days & ExpoNavy Pier-Festival Hall, Chicago, ILInformation at: www.cadm.org or Call 312.849.2236 x25

April 10 – 12 RFID Journal Live!Sheraton Chicago Hotel & Towers, Chicago, ILInformation at: www.rfidjournallive.com or Call: 631.249.4986

April 11 – 13 SHRM Global Forum: The 28th Annual Conference & ExpositionHilton Chicago Hotel, Chicago, ILInformation at: www.shrm.org or Call: 703.548.3440

April 12 – 14 15th Annual CardTech/SecurTech Conference & ExhibitionMandalay Bay Convention Center, Las Vegas, NVInformation at: www.ctst.com or Call: 800.803.3424

April 16 – 21 NAB2005Las Vegas Convention Center, Las Vegas, NVInformation at: www.nabshow.com or Call: 888.740.4622

April 19 – 21 Internal BrandingLocation To Be Determined - New Orleans, LAInformation email: [email protected] or Call: 312.362.9100 x13

April 19 – 22 SecureIT 2005 – Third Annual Information Technology & Network SecurityConference Town and Country Resort and Convention Center, San Diego, CAInformation at: www.secureitconf.com or Call: 909.224.3797

April 26 – 28 PharmaIT Summit 2005Jacob K. Javits Convention Center, New York, NYInformation email: [email protected] or Call: 212.661.3500 ext 3284

TM

April



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The Las Vegas Convention and Visitors Authority is theofficial destination marketing organization of LasVegas and operates the Las Vegas Convention Centerand Cashman Center. The LVCVA brings visitors toLas Vegas and Clark County by promoting tourism,conventions, meetings and special events.

Las Vegas has long been a favorite recreation desti-nation for millions of visitors. In the early 1950s, com-munity leaders aware of the cyclical nature of tourismidentified a new market segment in order to attractmore visitors to the area during the slow periods - con-vention attendees. In 1955, the Nevada StateLegislature agreed to finance the Clark County Fairand Recreation Board (the precursor to the LVCVA)with moneys acquired from a room tax levied on hoteland motel properties in Clark County. This revenueallowed the Las Vegas Convention Center to be con-structed and operate without any tax assessment onClark County residents and allowed the LVCVA tobegin a program of destination marketing.

On April 29, 1959, the Las Vegas Convention Centerofficially opened with a 20,340 square-foot rotunda, 18meeting rooms and a 90,000 square-foot exhibit hall. In itsfirst year of operation, the LVCVA hosted eight conven-tions that were attended by 22,519 delegates. In 2003,the Las Vegas Convention Center hosted more than24,463 conventions attended by 5.6 million delegates.

Recently Brilliant Results had the pleasure ofinterviewing Terry Jicinsky, Senior Vice President ofMarketing for the Las Vegas Convention andVisitors Authority.

BR: Of the campaigns that you and your team havedeveloped for Las Vegas which do you feel are themost notable/recognizable?

TJ: It is clearly our current campaign – ‘WhatHappens Here, Stays Here.’ It has been a campaignthat has resonated with the public and its use bycomedians ranging from Billy Crystal during the Oscarsto David Letterman interviewing First Lady LauraBush, making it a part of the popular vernacular.

BR: In your opinion, what are the key(s) to a suc-cessful marketing campaign for the City of Las Vegas?

TJ: Our success is based on connecting with theemotional element of traveling to Las Vegas.Consumers can place themselves mentally in LasVegas based on the imagery created by the cam-paign. The real beauty of ‘What Happens Here,Stays Here’ is that the experience is different forevery person. For some visitors, that means staying awake for 24 hours; others are eating at a gourmet restaurant, while still others seethemselves gambling at a Blackjack table. It’s thatand everything in between.

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BR: When planning a campaigndo you get the local businesses/casinos involved (either from a cre-ative and/or financial perspective)?

TJ: We are an independentorganization and our funding is thruthe hotel room tax. Our campaignsare free standing and funded 100%by hotel room tax; but we work veryclosely with the local businessesand casinos to make sure that themessage we are sending reflects theactual message of Las Vegas. OurBoard is made up of casino execu-tives, city mayors and council mem-bers. In developing destination branding, we work with focus groupsand do telephone surveys regarding our visitors’ LasVegas experiences and touch points that made theirvisit memorable for them. That is where the Las Vegasstories for our current campaign came from. Actually,‘What Happens Here, Stays Here’ is tongue in cheek,because people love to tell their stories to everyone, sothe tag line is the opposite of reality. Las Vegas is anescape so when visitors get back home they have stories to tell.

BR: We understand you are not a marketing man-ager for a casino, however we have seen a strongtrend involving casinos use of promotional merchan-dise and direct marketing tactics to draw players totheir respective properties, and more importantlykeep them there longer (loyalty rewards). What isyour opinion of this marketing strategy, and/or haveyou seen any particular property do an outstandingjob in this area?

TJ: One of the success factors for Las Vegas hotels isthat they go after niche markets and they have done anincredible job of communicating with their specific mar-ket segments. From the 1990’s focus on the family mar-ket to the Hard Rock and Palms that target Gen X and Yto the traditional casinos that focus on Baby Boomers.Las Vegas is very fortunate to be able to work within allmarket segments and offer something to almost everyAmerican – in fact, to a worldwide demographic.

BR: What promotional products and direct market-ing strategies have you used in your campaigns?

TJ: Our campaigns are very much branding cam-paigns that utilize TV and print in national lifestylemagazines with a minimal use of commodities.However, our campaigns for event planners and travelagents do use Las Vegas apparel and Las Vegas icon

products – everything from key chainsand pins to the Las Vegas sign. The LasVegas sign is one of hottest products – a12” desktop replica of the sign that islighted with chaser lights that go aroundthe sign is given to travel agents whocomplete a certification program thattests their knowledge of Las Vegas.

BR: When selecting promotional prod-ucts for use in a campaign, do you havea regular agency/distributor/supplierthat you prefer to work with? If so, why?

TJ: We are a government organiza-tion so we follow government regula-tions, which specify that we procureour products via an RFP process.

BR: Having developed successful marketing cam-paigns, we’re sure you receive marketing pieces fromother company’s trying to sell you things. What weresome of your favorite, or most memorable ones?

TJ: We receive a fair amount of unsolicited opportu-nities. They are filtered through our material manage-ment department and they bring forward ideas as partof the brain storming process. The principal challengelies in getting that initial vendor to agree that ideas areopen for the RFP process. However, custom, copyright-ed, or patented items can on occasion be exemptedfrom the RFP process allowing us to purchase fromthat initial vendor.

BR: In addition to being used in marketing cam-paigns, promotional merchandise seems to be biggerthan ever in the retail sector. Why do you think thatis, and what souvenir type products have you seenthat shouldn’t be ignored?

TJ: That is clearly happening, however, we don’tnecessarily play a role at the retail level. But, individualhotels and attractions are doing more and more of that.

BR: What was your favorite and/or most memo-rable Las Vegas brand marketing campaign?

TJ: When we look back over time they all reflectedthe time that we were in. I can look back to the late1980’s when we focused on the “American Way toPlay” that was one of my favorites. But, we have hadmany campaigns appropriate for the time period inwhich they have run that have worked very well. •

Additional information about the Las VegasConvention and Visitors Authority is available on theirwebsite at www.lvcva.com.

Terry Jicinsky, Senior Vice President ofMarketing for the Las Vegas Convention and Visitors Authority.

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~ A Bit of This & That

Off The Cuff Off The Cuff


Quote To Live By:

“Don’t find fault, find a remedy.”—Henry Ford (1863-1947) Industrialist

Did You Know?

º Hershey’s Kisses are called that because the machine that makes them looks like it’s kissing the conveyor belt.

º Half of all Americans live within 50 miles of what? Their birthplace.

º The percentage of Africa that is wilderness: 28%

º The percentage of North America that is wilderness: 38%

º Intelligent people have more zinc and copper in their hair.

º The 57 on the Heinz ketchup bottle represents the varieties of pickles the company once had.

º The Declaration of Independence was written on hemp paper.

º There are no clocks in Las Vegas gambling casinos.

º If you pour a tiny amount of liquor on a scorpion, it will instantly go mad and sting itselfto death.

º The phrase “rule of thumb” is derived from an old English law, which stated that youcouldn’t beat your wife with anything wider than your thumb.

The New York Stock Exchange – Who Knew:First ticker – 1867 First telephone – 1878 First electric lights – 1883

It took 50 years to go from 100.25 (1906) to 500.24 (1956) – 400point increase

It only took 10 years to go from 2002.25 (1987) to 7002.44 (1997) –5,000 point increase

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