MGM Grand one of the world's leading and most respectable hotel and gaming companies, owns and operates 24 properties positioned in Nevada, Mississippi and Michigan, and has assets in four other properties in Nevada, New Jersey, Illinois and the United Kingdom. As it indicates in the mission statement below, in every their resorts their main aim is to provide high quality customer support in every center round the world to be able to improve shareholder value and sustainability.
"Our quest is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every nook of the world to be able to enhance shareholder value and also to sustain employee, customer and community associations. "
In addition, MGM Resorts International with 16 resorts and 165 restaurants facilitates responsible video games and has executed the American Video games Association's Code of Carry out for Responsible Video games at its video games properties.
Assessing Progress Opportunities
MGM Grand is considering to get more market share with its current products using a market penetration strategy. Because of this, each product (vacation resort) is varied to meet up with the needs of different market segments. MGM Grand diversifies its hotels mainly by charges strategies, and level of luxury.
Market Setting of Resorts
Bellagio using its gorgeous appearance and fascinating nature is put as one of the most high end hotels in Vegas. Pursuing that, Aria is growing its position in the international market with high sales in convention bookings. Aria expresses its significant difference with its modern day structures whereas Bellagio stands out with its AAA Five Gemstone Award winning modern casino. The third strong player of MGM Grand, Vdara offers a non-gaming, smoke-free environment.
Mandalay Bay points out itself as "Untamed Luxury" whereas Mirage uses the slogan "Vegas Begins Here". MGM Grand, on the other hands is "Maximum Vegas".
4Ps of Marketing
MGM Resort International has 12 hotels on NEVADA Strip and functions 7 more hotels in US and other locations. Bellagio, Aria offering the needs of the high end visitors, NY, NY, Monte Carlo, Luxor, Excalibur, Circus Circus MGM Grand, on the other palm are providing the needs of the varied market using its varied accommodation range. Vdara, Personal at MGM, The Hotel at Mandalay Bay are boutique hotels created for satisfying special needs of its site visitors. The Hotel at Mandalay Bay is mainly created for business travelers as well as pleasure seekers. City Centre using its luxury shops is put as "one of the world premiere shopping destination" bringing in all site visitors of NEVADA. MGM Grand Detroit serving luxury in the center of entertainment in the city mainly attracts top quality customers with its high end setting.
Brand name is an important key factor in MGM Grand's online marketing strategy therefore establishes different brands and means different pricing ways of each product in its profile.
For MGM Grand rates is an integral adjustable in differentiating the variety of the quality and thus prices demanded from customers. Bellagio is the high end product with the best pricing model followed by Aria. However MGM GRAND, Excalibur, Circus Circus, NY New York as well as others are effected by seasonal rates, special discounts and special deals.
As seen in the graph above Bellagio gets the highest price $130(for a week day), and Aria second highest with a $129 per nighttime price. The Hotel, Vdara, Signature at MGM are in the $110-90 price range. Circus Circus gets the most affordable price $38 per nights on the weekday followed by Monte Carlo, Excalibur, Luxor and NY NY.
Promotion in Las Vegas is mainly consisted of online advertising, Television advertisings, paper and B2B advertising. Hotel companies make special discounts in week days and nights and last second deals as a means of increasing hotel occupancy rates.
Visitors coming to Vegas are the key focuses on also MGM Resorts draws in customers through other websites, magazine advertisings.
MGM Grand's products challenge in the same oligopoly market with small number of vendors. MGM positions its product collection regarding its costing strategies and level of luxury. For that reason Aria, Bellagio are the in the luxury group whereas MGM Grand, Monte Carlo, Newyork Newyork, Luxor, Excalibur are in the centre range. Bellagio, Excalibur, MGM Grand become cash cows because of their market show and sanity in the market.
Vdara and Aria have a relatively high market share with a high progress rate and they will be penetrating the marketplace within the next periods. Stars, products with a higher market talk about in a fast-growing industry are mainly the hotels with concierge tourism. MGM has been investing on boutique hotel theory for the last years. This growing market provides much revenues and market share. Because of this Vdara, The Hotel and Signature are the actors for MGM. The hope is that personalities end up being the next cash cows.
Bellagio, MGM Grand, The Mirage, Mandalay Bay, Luxor, Excalibur, Newyork Newyork, Monte Carlo can be considered as cash cows currently being that they are generating profits.
Crystals, the shopping mall inside metropolis centre can be located as a question tag since it uses large amounts of cash with a comparatively low market show. With a 70% occupancy rate presently, 5 top end boutiques will be beginning its entry doors in Crystals soon.
Dogs, it is thought, should be sold off; nevertheless the companies keep them for several reasons including strategic strategies. For MGM Grand puppies are considered as company's low income like Circus Circus, however, company will keep them in its portfolio to penetrate the Las Vegas market.
MGM Grand's hotels do not only become a place to accommodate in NEVADA nonetheless they are also the advertising tools of MGM Grand. For instance Aria is advertised in the Excalibur's room programs. From another view, Crystals shops distribute savings for Vdara. Therefore even while some products are not bringing high amounts of cash, they act as tools to draw out the cash that will be considered as another reason to keep carefully the dogs.
The hotel chain plans to continue to work with the mobile route as a way of data acquisition and also to use information accumulated to expand after its existing on-property SMS offers. An MGM exec revealed some of the company's ideas and even offered the audience tips in terms of using the mobile channel.
According to MGM Las Vegas vice president of marketing, all the hotels in Vegas have the same level of mobile marketing programs jogging currently. MGM considers its mobile system as the best since it provides service for the top groups of travelers too. On top of that, MGM plans to build up a mobile end user segmentation action plan so that it can better focus on offers to consumers.
The mobile route has helped MGM talk with travelers in its hotels and when they are on the highway. MGM has been running mobile promotions targeting the 25-34 era demographic, because they are 65 percent more likely to SMS. The company has integrated Text message cell phone calls to action within its more traditional marketing initiatives: Broadcast, billboards, the attributes of trucks, printing and email.
MGM has used mobile to get consumers to word in and join its database of mobile users. Offers include discount rates for rooms, amenities, eating out and show seat tickets. As well as texting MGM places great focus on applications of its hotels for i phone and smart telephones. Currently MGM has 15 applications of which 150, 000 are downloaded as of November 15, 2010. (Retrievedfrom http://mgmresorts. investorroom. com/file. php/179/RequestMGM+060710+Goldman+Sachs. pdf on November 26, 2010)
Recently, MGM launched a mobile screen ad marketing campaign, with banner ads jogging across Yahoo Mobile and Platform-A. People that clicked on the banners advertised on web were taken up to a website landing page with on-property offers for eating, amenities and special discounts. MGM's mobile initiatives were not only helpful for guests, but also it offered the hotel a way of interacting with travelers while they are in Las Vegas.
MGM Mirage, one of the primary team players of MGM Grand will debut a new branded Visa credit-based card offering preferred status at the business's seven participating hotels, as well as the capability to earn gift idea certificates best for accommodations, eating out and shows.
The MGM Mirage Rewards Visa Card, issued by Standard bank One, will offer customers two rewards details per dollar spent at MGM Mirage resorts and casinos, and one point per dollar spent elsewhere on the card. Every 2, 500 points earned results a $25 present certificate good for rooms, restaurants and shows on the properties. It also provides cards holders with privileges such as preferred check-in and check-out. The business considers loyalty credit cards as an integral element for strengthening and advance romantic relationship with its current and clients.
CRM movement provides loyalty and better sales statistics to MGM Grand although MGM is not the only real company offering loyalty credit cards. Caesars Entertainment commenced offering the Caesars Entertainment MasterCard through Juniper Loan provider last Dec, offering greeting card holders comp us dollars towards rooms, dining, shows, spas, golf tee times and other amenities at 15 U. S. properties. Also unlike the MGM Mirage Rewards Visa Greeting card, Caesars' cards is linked to its Caesars Interconnection Card loyalty program, which offers comp us dollars for time spent participating in in the casinos.
In addition to the Rewards Visa Credit card, MGM offers Player Team Cards that can qualify for benefits and rewards at taking part Players Club resorts: ARIA, Bellagio, MGM Grand NEVADA, Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor, Excalibur, Beau Rivage and Platinum Punch in Mississippi, and MGM Grand Detroit. Basically this greeting card allows members to see current offers and promotions, check account balances, talk to Players Customers Services and view tax information statement. Devotion Credit card program has improved 60M in database and 29M current players Golf club customers. The brand new M life Player Club credit cards will be provided in 5 varieties Gold, Pearl, Sapphire, Platinium and Noir, each offering different privileges and making points.
Although the taught that CityCenter was expected to be the most powerful development engine unit of MGM over time has started to disappear, CityCenter continues to be keeping its importance. As the CityCenter was the most serious growth project of MGM through the company's most glorious years of 2005 and 2006, the company surfaced big marketing activities for CityCenter. Many of these actions took place right before the constructions started and continued with a continuous increase. Online sales adverts, as well as you to one sales, formed a major area of the marketing budget of City Centre.