A Strategy Document on How Gold Reef City Casino Could Take the Rewards Program - Assignment Example

Marketing Strategy Affiliate Introduction New and existing organizations are required to formulate marketing strategies that will enable it to achieve its set goals and objectives. Furthermore, marketing strategies also ensure the organization identifies the critical areas within it that need adequate and constant scrutiny. An organization can provide the business with focus and direction through providing opportunities worth chasing and threats to be avoided. It also translates the organizations vision, objectives and mission into effective marketing initiatives. The essay shall explore how the Gold Reef City casino could take the Rewards program from a functional experience for an emotional experience. A lot of time and resources go into running a business. Casinos, in particular, are a very tricky business to venture into because they require constant scrutiny, and if the owners are not cautious enough, the business may go bankrupt. Individuals frequent casinos to enjoy themselves while at the same time trying to make some money. Gambling is the primary activity that occurs within casinos and has brought both good and bad fortunes to the people who frequent casinos. Numerous numbers of people have lost billions of dollars in these casinos while quite a number of people have gained wealth from casinos. Some unscrupulous dealers operate some casinos and fleece their customers of their hard-earned money. It is, therefore, important that the authorities investigate these casinos for malpractice and fraud. Situation analysis The Gold Reef City Casino has to conduct a situation analysis before it can commence its operations. A situation analysis is a collection of methods that the organizations management uses to analyze its influences to better understand the organization`s capabilities, business environment and customers. A situation analysis consists of two areas namely micro and macroeconomics. Microeconomics refers to the study of business and individual decisions while macroeconomics refers to the study of higher decision makers, for example, the government. Macroeconomics looks at the external forces and factors that affect the business. The Gold Reef City casino has also conducted a situation analysis, and the recommendations were divided into two categories Micro and macroeconomics. The microeconomics include the new developments and upgrades that are well underway and the soon to be completed. The casino has invested in a new gaming area that is expected to bring in more customers and consequently more revenue. The incorporation of a new gaming system, which has improved the efficiency in the playing, and simulation of the games played. The macroeconomics includes the increase in the consumption of energy. With the rising costs of energy, especially fuel prices have led to the increase in costs and consequently the decline in productivity. The budget for the marketing strategy is estimated at five hundred thousand dollars while there are an additional five hundred thousand dollars for miscellaneous expenses as well as payment for the required licenses and permits. An effective marketing strategy involves the incorporation of the SOSTAC model. SOSTAC is an acronym that stands for situation, objectives, strategy, tactics, action and control. The situation requires the company examining its current position while the objective refers to where the company intends to go. It examines where the company`s position will be in the future. The strategy requires the organization to look at the big picture and formulate ways of how these objectives are going to be met. The tactics entail the formulas that the organization will use to attain the set goals and objectives (Chaffey, 2015). Action refers to the tasks that are assigned to individual people to execute. It also dictates the time as well as the individuals to undertake the specified tasks. It is also imperative that casinos conduct a SWOT analysis for the business. A SWOT analysis is a planning method that is used to evaluate the strengths, weaknesses, opportunities and strengths that are involved in a business venture. The Gold Reef City casino conducted a SWOT analysis and came up with the following findings. SWOT Analysis Strengths (Positive Internal Factors) The Gold Reef City Casino is a unique business since there is no other business of the same nature in the area. Casinos operate all year round, as they are not affected by seasons or the weather. One way or another, people will always have time and money to gamble. The casino is an entertainment spot where people can go to have a good time. There are plenty of games and activities that both children and adults can undertake to enjoy themselves (Böhm, 2009). Our casino offers unique products for all its customers, and this helps them distinguish the casino from its competitors. Weakness (Negative Internal Factors) Most of the issues raised came from the experiences the customers had while they used our facility. They complained that the level of our customer care and service left a lot to be desired. The casino, therefore, had to take drastic measures to maintain customer retention. The incompetent staff was fired, and the management took it upon themselves to improve the customer service. Some of the ideas they introduced was hiring personnel who had experience in the customer care industry. They also provided forums where the existing personnel would attend, and customer care/service experts talk to them on how to handle customers. The casino used outdated technology, which was difficult to use, and the equipment was slow in executing the orders it was given by the customers. The slow and outdated systems allowed for extensive cheating by some customers who were able to hack into the systems. Opportunities (Positive External Factors) Since the casino is the only kind of its nature operating in the area, provides an opportunity whereby the casino can exploit to maximize profits. The casino has constructed restaurants where customers who are not into gambling can relax and have a good meal. The general view about casinos is tainted with negative reviews. However, the Gold Reef City Casino has received praise from the community mainly because it is attracting customers from neighboring states which bring in more revenue. The casino is slowly gaining fame, which is reflecting positively on the town. The economy is growing, and there is a general curiosity surrounding the casino business as many individuals are now embracing the casinos. The casino has incorporated the use of new and innovative technology to improve its service delivery. In addition to this, the government has decided to lower the taxes on the casino to ensure the growth of the town. The main reason is that the casino is involved in other activities that positively influence the community such as environmental conservation. The lowering of taxes will ensure that the surplus revenue goes into good use. Due to the growing interest in casinos, the Gold Reef City Casino has brought in high performing slot machines to improve service delivery. Sports are a major crowd puller, and the casino has realized this. The casino has built in a sports bar filled with television screens that display all types of sports. The casino has done so to accommodate the customers who do not wish to partake in gambling. The community at first was against the existence of the casino but afterward when they saw the intentions were pure, changed their minds and embraced the business. The casino is also a major employer in the community with more than 50% of all the jobs going to the local community. Threats (negative external threats) Before a casino can begin its operations, it has to go through lots of scrutiny, which is normally done by the relevant authorities. It is because casinos have a bad reputation for being places where bad and illegal businesses are conducted. Many casinos have been closed after it was discovered that they operated illegal businesses on the side. Casinos are fronts for drugs, prostitution and human trafficking. Most of the casinos in the world are built using blood money and even if it is not the case, a scandal is bound to pop up at any time. Since the casino has no competitors, the management might not work as hard since there is no one to compete for the market share with. This mentality might lead to deteriorating morale among the personnel and consequently the decrease in revenue. The changes and fluctuations of the economy also pose a great threat towards the business. For example, the recent global recession led to the closure of numerous businesses and casinos suffered the most since without customers’ spending money, there is no revenue. Another major threat to casinos is the global interest in online gambling. The thought of playing poker and other gambling avenues online without going to the casino is a growing trend, which is negatively affecting the casino business. Conclusion A business that incorporates the SOSTAC model to create a marketing strategy is bound to succeed. Marketing strategies help the organization to position it as well as the products and services it offers in the market. It also helps in formulating the best way of attracting and retaining customers and obtaining a market share. The casino business can be a very lucrative business venture, however, with the constant changes in rules and regulations might hinder the business from realizing its full potential. The marketing strategy that the Gold Reef City Casino employs is bound to increase the businesses revenue input as well as securing a larger market share. Reference Böhm, A. (2009). The SWOT Analysis. München: GRIN Verlag. Chaffey, D. (2015, February 10). SOSTAC ® marketing planning model guide - Smart Insights Digital Marketing Advice. Retrieved May 12, 2015, from Read More