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Las Vegas as a Brand
Tony Hsieh, CEO of Zappos.com, aims to revitalize downtown Las Vegas with a $350 million investment to create a vibrant urban neighborhood. The document provides an overview of Zappos' history, financial growth, and impact on customer service, alongside Las Vegas' historical evolution into a gambling and entertainment hub. It concludes that the partnership between Zappos and Las Vegas could bring needed investment and hope for a better future, despite current economic challenges.
Las Vegas as a Brand
- 1. ENTERING LAS VEGAS Course name: Brand Management MGT 320 Instructor: Chris Shallow Presented by: Svetlana Puchkova Anglo American University Prague 2012
- 2. 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)
- 3. 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
- 4. 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.
- 5. 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
- 6. 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
- 7. 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
- 8. 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
- 9. ATOMIC TESTS FORTOURIST 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
- 10. ATOMIC TESTS FORTOURIST 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
- 11. WELCOME TO.. 1959 - Betty Willis; $4000
- 12. ..FABULOUS VEGAS 1960 -“Ocean’s Eleven”, Rat Pack - the symbol of booming Vegas
- 13. KING’S TRIUMPH INVEGAS ❖ 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)
- 14. 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”
- 15. 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”
- 16. 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”
- 17. 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)
- 18. THE PARTY ISOVER 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
- 19. “Las Vegas hasnever 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?
- 20. SUCCESSFUL BRAND EXTENSION/ STRETCHING
- 21. SUCCESSFUL BRAND EXTENSION/ STRETCHING The Brand is about love in all its interpretations
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- 25. CONCLUSION I believe thatthere 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
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