Lion City’s IR Launch Strategy (#2)

Posted: May 31, 2009 in Uncategorized

Lion City’s IR Launch Strategy                     

Series #2 – Conditioning the Market

Posted on May 31st, 2009

Article contributed by:  M. H.   1-9

In my first series of discussion over the Lion City’s IR (Integrated Resorts) launch strategy, it was mentioned that Phase One of the Lion City’s IR launch should concentrate on its revenue streams & securing ‘bridgehead’ in order that the IR operator could position solidly for quick wins in a relatively short period of time.

Upon successful securing a firm bridgehead in the opening phase of the IR, an operator needs to be forward-looking instead of being bogged down by daily fire fights. Key improvements (mission critical) to the systems and processes should not drag more than two months to grapple, once an operator starts to dwell too deep into perfection at this stage, the tendency is to lose sight on its critical business growth phase – Conditioning the Market.

The phase of Conditioning (the market) requires an IR operator to place high priority on the following business growth enablers. They are,

(1)               ‘Super top-line’ management. For casinos to ride in a highly leverage position, a focused IR senior management team would have to put all energies onto increasing the ‘Super top-line’ for casinos. That is the Casino Drop. Well-coordinated marketing packages and product mix should aim at generating optimal casino drop sustainable on a daily basis. Failure to understand this concept will lead to the destruction of earlier success in securing the bridgehead.

(2)               Potential leakages on casino floor should be contained by now, into the phase of Conditioning. Otherwise, the first objective of generating optimal casino drop will fall through. This is the first thing to do when a casino opens its door.

(3)               Trials (of marketing programs and promotion) must be conducted as frequent as possible, leveraging on the IR post-opening flow of crowds. i.e. Start to test out various differentiation methods to better understand blocks of business coming into casinos and other product offering.

(4)               Service values.  Making customers ‘see for themselves’ what uniqueness of the IR’s service values thus constitutes to higher frequency of repeat transaction/buying. Operating processes covering customer service and any privileges management should be a top priority for audit by senior management, in particular during the phase of Conditioning.

(5)               Leverage of Sustainable Growth Pipelines.  The conditioning of right market segments will yield greater growth down the road, as compared to battling on low-margin & limited growth (but looks good) market segments. Adopting the concept of ‘affordable luxury’ combined with volume operations will provide greater thrust into the market yet with a viable risk-return approach.

There is this rather passionate calling all the time… resounding pleads to hunt for big whales and so-called easy-moneymaking VIP players market; as if with lower gaming taxation it could make the game turns much safer than ever. Those who truly understand the nature of VIP gaming arena would agree with the following profound statement:

“Up to a point, it is a matter of time that casinos may attempt to end up themselves in gambling…”

In my view, a casino should always remain an entertainment provider and not itself going into betting/gambling away their fate. VIP gaming has that appeal out front to trap most of the casinos, especially in Asia arena.

(Notes: The last of the three series – “Reinforce & Push” will be posted when ready.)

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