Harrah's Case

How does Harrah’s integrate the various elements of its marketing strategy to deliver more than the results of Database Marketing? (Think of all changes that have been made that bring about an integrative effect).

Gary Loveman launched three strategies to achieve the market competence of Harrah’s:

* A new organization structure:

Loveman built a new organization structure, and let the resident and their subordinates of each division of Harrah’s directly reporting to him instead of CEO. Before each property only cared about its own profit and loss, now each property integrated together and adopt the strategy and encourage customers to spend their money at Harrah’s locations broadly rather than simply at their property.

* Brand and service:

Also the Harrah’s strengthened the brand differentiation through promoting the profound emotion of gaming-the feeling of anticipation and exuberance. Harrah’s spent $15-20M per year in advertising to communicate the feeling of anticipation to the general audience.

Also at the service level, Harrah’s provided a variety of interventions, i.e.: service process design, reward and recognition, measurement of executives in as pervasive as possible fashion. And Harrah’s won the award for best service from casino player three years in a role.

* Customer Relationship Measurement:

CRM is the most important initiative to implement marketing tools and programs across all Harrah’s property. Under Miran marketing became a very quantitative undertaking.

CRM consists of two parts: Database marketing (DBM) and the total Gold program. Based on the data gained form DBM, Harrah’s applied a customer centric approach to direct marketing. They created New business program, the loyalty program-frequency upside, Loyalty program-budget upside, retention program.

Besides DBM, the total reward program played an essential role in the marketing strategy: First harrah’s estimate that there were about at least $100M loss every year by Harrah’s...