International Marketing 2011 - Las Vegas Sands Corp - Market Entry

In the last episode…

Australia
 In the last episode…

A New Australia Challenge

In the last episode…
 In the last episode…
Where will LVS find her match?

?
1. Entry Strategy Pick City

2. Target,
Set Aim
Position, Brand

3. Marketing
To Do
Methodology
Mix

4. Performance Look to Future

Measure

5. Love Wedding
1. Entry Strategy

2. Target,
Position, Brand

3. Marketing
Entry Strategy
Mix

4. Performance
Measure

5. Love
 In the last episode…
City

Brisbane Melbourne Darwin Adelaide Sydney Perth Hobart

How will LVS pick?

• Environmental
• Organisational
• Management
 The Secret Score Sheet

1. Entry Strategy Weight Brisbane Perth Melbourne Sydney

Macro Indicators 50%
Population Size 40% 6 5 9 10
GDP per capita 40% 9 10 9 8
2. Target, Median house price 20% 8 9 9 10
Position, Brand
100% 7.6 7.8 9 9.2
Business Potential 50%
3. Marketing Level of existing competition 10.00% 6 6 6 6
Mix Overseas population 5.00% 6 9 9 7
Neighbouring Cities 20.00% 7 1 9 8
Domestic visitors 20.00% 5 5 7 9
4. Performance International visitors 20.00% 5 5 7 9
Measure Tourism Expenditure 20.00% 5 5 7 9
Unemployment 5.00% 9 8 6 6
100% 5.8 4.7 7.4 8.3

5. Love Final Weightings   6.7 6.2 8.2 8.7

1. Entry Strategy City

Sydney
2. Target,
Position, Brand
Why Sydney?
3. Marketing • High score in Macro Indicators
Mix • High score in Business Potential
• Higher level of tourism /expenditures
• Significantly larger population
4. Performance • Population : 31.7% born overseas
Measure

5. Love

BUT…
 1. Entry Strategy

Sydney
2. Target, Position, Brand

There’s
3. Marketing Mix
Something
about
4. Performance Measure
Sydney
Miriam

5. Love Problem:
Legislation in NSW - only 1 gaming licence allowed
 1. Entry Strategy

Sydney
2. Target, Position, Brand
Let’s have a
deal, gal?

3. Marketing Mix

4. Performance Measure

Solution:
5. Love • Joint Venture with Star City Hotel
• Purpose : licensing, gain market entry
• Terms : % revenues, bring in expertise, shared resources, etc.
 1. Entry Strategy

2. Target, Position, Brand

Target, Position
3. Marketing Mix
Brand
4. Performance Measure

5. Love
 Segmentation
1. Entry Strategy

Geographic
2. Target, Position, Brand
Demographic Locals Travellers

Upper
3. Marketing Mix

Middle

4. Performance Measure
Lower

5. Love

Segment by Geographic and Demographic

 Segmentation
1. Entry Strategy

Geographic
2. Target, Position, Brand
Demographic Locals Travellers

Hi Inc
3. Marketing Mix

Mid Inc

4. Performance Measure
Lo Inc

5. Love
Australia
• Ranks #9 in GDP per capita
• 2nd largest gaming market in Asia-Pacific at $2.7 billion
 Segmentation
1. Entry Strategy

Geographic
2. Target, Position, Brand
Locals Travellers
Business/
Demographic

Hi Inc Day-Tripper VIPs Holiday

Convention
3. Marketing Mix
Day-Tripper VIPs Business/Conv Holiday
Mid Inc

4. Performance Measure
Lo Inc

Psychographic
5. Love

• Segment by Psychographic
 Segmentation
1. Entry Strategy

Geographic
2. Target, Position, Brand
Locals Travellers
Business/
Demographic

Hi Inc Day-Tripper VIPs Holiday

Convention
3. Marketing Mix
Day-Tripper VIPs Business/Conv Holiday
Mid Inc

4. Performance Measure
Lo Inc

Psychographic
5. Love

• In Macau, 70% of gaming revenue is from VIP

• Holiday goers are in the mind set to spend & enjoy
 Segmentation
1. Entry Strategy

2. Target, Position, Brand

4 Market Segments:
Possible Purposes of Visit
Segment Name Quantity (Applies to all segments)
Local Day-trippers 20% Hotel
3. Marketing Mix
Local VIPs 15% Gaming – Casual / VIP (High Rollers)
Holiday Travellers 40% Dining / Shopping

4. Performance Measure Business Travelers 25% Any Combinations of Above

5. Love
 Target
1. Entry Strategy

Sydney
2. Target, Position, Brand

3. Marketing Mix

4. Performance Measure

5. Love

Target : Local VIPs & Holiday Travellers

Highest propensity to gamble & highest disposable income
 Positioning
1. Entry Strategy

Price
2. Target, Position, Brand

3. Marketing Mix
Luxury
Pokie
Parlours
4. Performance Measure

Online
Gambling
5. Love

Explore The Venetian Sydney: Enticing. Exotic. Exclusive.

 Brand
1. Entry Strategy

2. Target, Position, Brand

3. Marketing Mix

4. Performance Measure

5. Love
• Extend the successful Venetian brand to Australia
• Slogan: Venice, down under!
 1. Entry Strategy

2. Target, Position, Brand

Marketing
3. Marketing Mix
Mix
4. Performance Measure

5. Love
 Marketing
Mix
1. Entry Strategy

Product:
2. Target, Position, Brand
The Venetian Sydney
• Similar to other Venetian properties
• Venetian theme & luxury
3. Marketing Mix
• 5-star hotel
• 3,500 rooms
• All-suite only

4. Performance Measure • 400,000 sq. ft. casino

• 500 tables & 2,500 slots

Property Suites Tables Slots

5. Love
The Venetian Las Vegas 7,100 240 3,020
The Venetian Sydney 3,500 500 2,500
The Venetian Macao 2,900 600 2,200
 Marketing
Mix
1. Entry Strategy

Product:
2. Target, Position, Brand

• 1 million sq. ft. of Grand Canal Shoppes

• Upscale restaurants and retail stores
along Venice style canal waterways
3. Marketing Mix
• 1.2 million sq. ft. trade show & convention
complex

4. Performance Measure
• 1,800-seat showroom & 15,000-seat arena
• Host premium entertainment
activities

5. Love
 Marketing
Mix
1. Entry Strategy

2. Target, Position, Brand

3. Marketing Mix

4. Performance Measure

5. Love

I’m all blinged up, gal!

 Marketing
Mix
1. Entry Strategy

Placement:
2. Target, Position, Brand
• Darling Harbour

• Prime location
3. Marketing Mix
• Upscale brand image

• Splendid ocean views, near CBD

4. Performance Measure • Easy access via public transport

• 30 minutes away from the airport

5. Love
 Marketing
Mix
1. Entry Strategy

Price:
2. Target, Position, Brand
• In line with other LVS, pricing for all
services and facilities

• Premium to local competition

3. Marketing Mix
• Accommodation:
• $350-450/night
• Offer more compelling than Star City
4. Performance Measure ($279-329/night )
• Food :
• fine dining
• Upscale buffet $80/entry
• Gaming:
5. Love • $20 min @ day; $30min @ night
• Slots min $0.50/play
 Marketing
Mix
1. Entry Strategy

2. Target, Position, Brand

3. Marketing Mix

4. Performance Measure
Promotion:
• Focus: ENHANCE TVS brand image + INTEGRATE Australian influence
• Swirling Sands Show
• Initially resembles the Australian outback...
5. Love • Plays didgeridoo music every hour
• Jets shoot out coloured sand that swirls and dances to the music
• Think Crown Casino fire show
 Marketing
Mix
1. Entry Strategy

2. Target, Position, Brand

3. Marketing Mix

4. Performance Measure

Promotion:
Promotion:
• Mass Media
• Miranda Kerr & Victoria’s Secret Show
5. Love • Database Management – Star City
• Kylie Minogue – like Celine Dion @ LV
• Strategic Alliances
• MasterChef Celebrity Chef Restaurant
• Responsible Gaming Program
 1. Entry Strategy

2. Target, Position, Brand Performance

Measure
3. Marketing Mix

4. Performance Measure

5. Love
 Performance
Measure
1. Entry Strategy

Melbourne Gaming Market:

2. Target, Position, Brand • Crown Casino - a model for forecast
• Current : $1.6 billion revenue

Sydney Gaming Market:

3. Marketing Mix • Current: $2 billion estimated
• Forecast : $3 billion
• Due to increased tourism and
expansion of market
4. Performance Measure
Venetian Sydney:
• Conservatively estimate 40% market share
• First year: $1.2 billion revenue

5. Love
 1. Entry Strategy

2. Target, Position, Brand

3. Marketing Mix
Wedding

4. Performance Measure

5. Love
 I, LVS, choose you, Sydney, to be
my Market Entry, to respect you
in your successes & in your
failures, and to love you in
sickness & in health…

Quarterly Evaluation:
• Revenue: Gaming/ Hotel/
Restaurant/ Shops
• Market size: Tourist arrivals,
Expenditures
• Feedback: Customer
Surveys , Complaints
• React immediately &
accordingly
I also understand my risks:
• Changes/restrictions in
legislations Now I
• Sensitivity to discretionary
consumer spending and
pronounce
tourism you husband
• Enormous capital outlays
and wife!!
But I’m here to nurture you,
and to grow with you, and
bring you more tourists
throughout the seasons of life.

I understand marriage is not

a word. It is a sentence –
a life sentence.
Thank You!