entering las vegas

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Entering Las Vegas Course name: Brand Management MGT 320 Instructor: Chris Shallow Presented by: Svetlana Puchkova Anglo American University Prague 2012

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Las Vegas Presentation

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Page 1: Entering Las Vegas

Entering Las Vegas

Course name: Brand Management MGT 320

Instructor: Chris ShallowPresented by: Svetlana Puchkova

Anglo American UniversityPrague 2012

Page 2: Entering Las Vegas

Sin City Start up city

Tony Hsieh, the CEO of shoe and apparel site Zappos.com (a division of Amazon.com) wants to turn the often overlooked and economically depressed downtown area of Las Vegas into a dense urban neighbourhood teeming with artists, entrepreneurs, and Internet workers

❖$350 M of his own money to be invested in LV

❖1 400 employees will be moved to the former 11 storey City Hall building in downtown LV in 2013 (already posted in wiki)

Page 3: Entering Las Vegas

Zappos.com ..a bit of a history

❖ 1999, Internet shoe retailer store. Investments of over $500K

❖ 2000, Revenue of $1,9M

❖ 2007, Gross sales $870M, expanded to sell clothing and accessories

❖ 2008, Annual Sales $1B; “23rd on Fortune’s top100 companies to work for”

❖ Amazon.com is buys Zappos.com for $940M in a stock and cash deal

❖ Tony Hseih remains as Zappos’s CEO. “Today we think of Zappos brand as about great service, and we just happened to sell shoes”

❖ Key insight: Excellent customer service

Page 4: Entering Las Vegas

Las Vegas..a bit more of a history ))

Spanish “the meadow”, describing the area and existence of spring water there

In 1905 a railroad was built to connect Salt Lake City and Los Angeles and in the same year the city of Las Vegas was established. The man considered as the “father” of Las Vegas was businessman C.P. “Pop” Squires with his wife fell in love with the place and played a major role in its development

1931 - “turning point”:

❖ “The Gateway to Boulder Dam”, later renamed Hoover Dam, provided thousands of construction jobs near LV during the Great Depression and made the area an attractive destination

❖ The process for obtaining a divorce was simplified;

❖ First gaming licence was issued;

❖ Pair-O-Dice Club formed on Highway 91 (Las Vegas Strip) was formed.

Page 5: Entering Las Vegas

Las Vegas..a bit more of a history ))

“The winners are those who control the game. All the rest are suckers.”

Mayer Lansky and Benjaming “Bugsy”Siegel

..on their way from LA to LV

Page 6: Entering Las Vegas

Las Vegas..the glamorous place to be ))

❖ 1946 Flamingo resort was built and named after “Bugsy” Seigal’s show dancer girlfriend Virginia Hills’s long skinny legs

Later he was murdered in her Beverly Hills house, which brought a lot of attention and publicity to Las Vegas, which then became an edgy and glamourous place to be

Page 7: Entering Las Vegas

Las Vegas..”bombs and boom” ))

❖ 1951 - “Able” a nuclear bomb testing site about 100 km from LV. Over 928 bomb experiments were conducted in Nevada and would not be disclosed until 1990s

❖ Atomic cocktails, postcards, atomic hairdos, ability to see a bomb bursting in the desert

Page 8: Entering Las Vegas

Atomic tests for tourist attraction

❖ 1954 - more than 8M visitors annually and $200M spent on gambling in LV

❖ 1957 - UNLV was founded (which was not the major event since the city was building its reputation on gambling and atomic tests)

Legalised gambling became untouchable from federal control

Page 9: Entering Las Vegas

Welcome to..

1959 - Betty Willis; $4000

Page 10: Entering Las Vegas

..Fabulous vegas

1960 - “Ocean’s Eleven”, Rat Pack - the symbol of booming Vegas

Page 11: Entering Las Vegas

King’s triumph in vegas

❖ 1969 - 1977 - the biggest Las Vegas icon. Elvis Presley played 837 shows

Contract for five years for four weeks, twice a year for $125K/week (in today’s money it is approx. $2M/week)

Page 12: Entering Las Vegas

Let it roll..

❖ 1966 - billionaire Howard Hughes lobbied legislators to allow corporations to own casinos

❖ 1970 - 1980s - dark era for the Las Vegas. Fire and gangster Spilotro’s expansion

❖ 1989 - Mirage. Steve Wynn build the only one for the last 16 years and the biggest casino resort

❖ 1998 - Steve Wynn, the famous Bellagio, the world’s most expensive resort, $1,8B

The new resorts began to grow like mushrooms after rain since then

“..the time of biggest construction booms and housing bubble in the nation”

Page 13: Entering Las Vegas

Provocative campaign 2005

Key ingredients:

❖ To be able to stand for something, do not try to be something for everyone

❖ To decide what you are and what you actually are not

❖ “Brand exist in minds and hearts of consumers. We needed emotionally charged campaign that would taped into both”

Page 14: Entering Las Vegas

what happens here stays here

❖ Three step approach:

❖ Accounting Planning “You cannot spend enough time to speak to your customer”. KI - people can cut loses in LV like nowhere else

❖ Brand Positioning “if you cannot boil dow your brand in three words you are not trying hard enough” Simple, Concise, Relevant

❖ What happens here stays here “gives to consumers a permission to enjoy themselves in a way they do not do elsewhere”

Page 15: Entering Las Vegas

Luck, ..or destiny

❖ First media campaign. Gained $6M before first media dollar was paid

❖ The line has been used by many celebrities on numerous events and appeared in many TV programs

❖ 2006 Las Vegas reached 2nd “hot brands” in America (behind Google)

Page 16: Entering Las Vegas

The party is over

Las Vegas in crisis

❖ Highest unemployment rate 15,5% (September 2010)

❖ More then 70% of homeowners with mortgages owe more to the bank than their houses are worth

Page 17: Entering Las Vegas

“Las Vegas has never been much good at diversification”

But will there be enough room under one “umbrella” for Sin City and Start Up City or there is there room only for one fascinating story?

Page 18: Entering Las Vegas

Successful Brand Extension/stretching

The Brand is about love in all its interpretations

Page 19: Entering Las Vegas

Not really..

Page 20: Entering Las Vegas

Conclusion

I believe that there would not be failure in Zappos/Vegas cooperation

The brand Las Vegas is going to get its, such needed in this difficult time capital injection, job places and hope for brighter future

Zappos, even if it is not successful in turning Sin City into Business Mecca, would place its name forever on a history board of Fabulous Las Vegas

Page 21: Entering Las Vegas

Sources

http://www.businessweek.com/magazine/las-vegas-startup-city-02022012.html

http://www.lasvegassun.com/news/2008/may/15/mammoths-mobsters-infinte-amounts-money/

http://www.atme.org/pubs/uploads/9_07_TMD_WWSH.pdf

http://money.cnn.com/2007/01/08/news/companies/brands_winnerslosers/index.htm

http://www.atme.org/pubs/uploads/9_07_TMD_WWSH.pdf

http://www.economist.com/node/17800101

http://en.wikipedia.org/wiki/Zappos.com

http://www.fourmilab.ch/etexts/www/atomic_tests_nevada/

http://www.businessweek.com/magazine/content/05_15/b3928109_mz017.htm

Page 22: Entering Las Vegas

Thank you!