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Circus circus case ppt

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Circus circus case ppt

  1. 2. INTRODUCTION <ul><li>Circus Circus Enterprises, Inc. was setup by John Sarno on 18 th October, 1968. </li></ul><ul><li>Purchased in 1974 for $50,000 as a small and unprofitable casino operation by partners William G. Bennett and William N. Pennington. </li></ul><ul><li>Went public with stock offering in October, 1983. </li></ul><ul><li>Within 5 years (1993-1997) the average return on invested capital was 16.5% and generation of Free Cash Flow was $1 billion. </li></ul>
  2. 3. <ul><li>Circus Circus is the 5 th largest U.S. gaming industry. </li></ul><ul><li>Circus has continued to broaden its market and now aims more at the middle income gambler and family-oriented vacationers as well as more upscale traveler and players. </li></ul><ul><li>Circus defines entertainment as pure play and fun, and it goes out of the way to see that customers have plenty of opportunities for both. </li></ul>
  3. 4. <ul><li>Aggressive growth strategy, innovative ideas, style, technology and strong cash position. </li></ul><ul><li>Major player in Las Vegas, Laughlin and Reno in Nevada and in U.S. </li></ul><ul><li>Wider market. </li></ul><ul><li>Product differentiation. </li></ul><ul><li>Rapid growth. </li></ul>
  4. 5. <ul><li>Poor market conditions. </li></ul><ul><li>Losing customer base. </li></ul><ul><li>Cannibalism. </li></ul><ul><li>Huge investments in development and innovation. </li></ul>
  5. 6. <ul><li>Increasing number of tourists. </li></ul><ul><li>Expanding market in other states of United States. </li></ul><ul><li>Increasing passion for gambling among individuals. </li></ul><ul><li>Joint ventures with other gambling industries. </li></ul>
  6. 7. <ul><li>Addition of extra rooms in the Vegas market has limited their ability to increase rates on their expanded room base. </li></ul><ul><li>Increasing competition in the gaming industry in Vegas and other cities of U.S. </li></ul><ul><li>Adverse government regulations. </li></ul>
  7. 8. SOURCES OF REVENUE AS A PERCENTAGE OF NET REVENUES
  8. 9. TREND IN REVENUE AND NET INCOME
  9. 10. EPS
  10. 11. CURRENT RATIO
  11. 12. TOTAL LIABILITIES/ TOTAL ASSETS
  12. 13. OPERATING PROFIT MARGIN %
  13. 14. SYMPTOMS <ul><li>Decreasing REVENUE from casino operations. </li></ul><ul><li>Decreasing NET INCOME. </li></ul><ul><li>Increasing LIABILITIES. </li></ul><ul><li>Losing customer base for casinos. </li></ul><ul><li>Changes in local laws, regulations and procedures as Circus moves into other locations outside Nevada. </li></ul>
  14. 15. PROBLEM DEFINITION <ul><li>Financial instability. </li></ul><ul><li>Increasing competition. </li></ul><ul><li>Government regulations. </li></ul>
  15. 16. EVALUATION OF ALTERNATIVES <ul><li>Focus more on other gaming areas like race-tracks, lotteries, bingo parlors, videogames etc. </li></ul><ul><li>Focus on other states in United States. </li></ul><ul><li>Multinational conglomerates. </li></ul><ul><li>Form a specialized task force. </li></ul>
  16. 17. RECOMMENDATIONS <ul><li>Create a soothing environment to both customers and the employees. </li></ul><ul><li>Take feedback from customers </li></ul><ul><li>Concentrate more on other means of entertainment. </li></ul><ul><li>Promote the casinos more in other states and countries. </li></ul><ul><li>Proper segmentation of the target market. </li></ul><ul><li>Well-trained employees and better customer service. </li></ul>
  17. 18. MARKETING CONCEPTS <ul><li>Services Marketing </li></ul><ul><ul><li>4 P’s – Product, Place, Price and Promotion </li></ul></ul><ul><ul><li>additional 3 P’s – People, Physical Evidence and Process </li></ul></ul><ul><li>Market Segmentation </li></ul><ul><li>Product Differentiation </li></ul><ul><li>Marketing Intelligence </li></ul>
  18. 19. CUSTOMER REVIEWS <ul><li>Customer reviews for Circus Circus casino and hotels, Las Vegas & Reno have been very good, however Excalibur reviews have been devastating. </li></ul><ul><li>http://www.travel-library.com/hotels/north_america/usa/nevada/las_vegas/excalibur_hotel_and_casino.html </li></ul><ul><li>http://www.travel-library.com/hotels/north_america/usa/nevada/las_vegas/circus_circus_hotel_casino_and_theme_park.html </li></ul><ul><li>http://www.orbitz.com/App/ViewSpecificHotelLP?masterId=7347&tabIndex=1 </li></ul>
  19. 20. CIRCUS CIRCUS ENTERPRISES, Inc. 1974-2008 <ul><li>http://www.lvstriphistory.com/ie/circus74.htm </li></ul>
  20. 21. ATTRACTIONS FROM CIRCUS CIRCUS
  21. 22. REAL MONTE CARLO CASINO
  22. 23. COLORADO BELLE
  23. 24. LUXOR
  24. 25. MANDALAY BAY
  25. 26. THE MIRAGE
  26. 27. THE EXCALIBUR
  27. 28. MGM
  28. 29. THANK YOU KAVITA SARMA ANGELIN SAM ROBINSON VEENA B.K. SANTANU DAS

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