2. Introduction
• Being Las Vegas one important destination in the travel
industry, in 2003 more than 35.5 million travelers made
Las Vegas their choice of destination and in 2000 was
the largest volume of visitors lagging more than 35.8
million travelers.
• LVCVA stands for: Las Vegas Convention and Visitors
Authority.
• Main Objective:
• To maximize the occupancy for the city hoteliers who
suffer from cyclical demand in travel industry
3. What bases does the
LVCVA use for segmenting
its target market?
5. DEMOGRAPHIC SEGMENTATION
• Notice Portland, Oregon, and Atlanta as emerging
regional markets based on their median
household incomes, their available flights to
LV, the cost of advertising in those markets, and
the propensity of their citizens to gamble, and
even location (African Americans, Hispanics. And
Asian Americans)
• Elderly couples, businesswomen, and young
professional males.
6. GEOGRAPHIC SEGMENTATION
It Is all major ethnic groups in an area – such as
city, country, or census tract.
· Target customers: African Americans, Hispanics
and Asian Americans
7. USAGE-RATE SEGMENTATION
• Noticed African American, Hispanics and
Asians visiting increasing, went to Canada
when they noticed drop in visitors.
8. PSYCHOGRAPHIC SEGMENTATION
• gambler with the growth of visitors and trends in
foreign visitors, there is increase level of expertise
(esp. in gambling) and changes the lifestyle of the
visitors. Relationship building with organizations
(International Association of Hispanic Meeting
Planners and the National Coalition of Black
Meeting Planners & Toronto’s Canadian Meeting
& Incentive Travel Symposium & Trade).
Hispanics’ historical preference for family or
group activities for vacations.
9. Does the LVCVA use an
undifferentiated ,a
concentrated,or
multisegment targeting
strategy? Why?
11. Because…
• They uses different types of promotional style
• Targeting cities like Portland, Oregon and
Atlanta that already have gambling through:
o Van featuring an Elvis impersonator
o Traditional Vegas showgirl
o Promote special travel deals for entertainment
option.
12. • Promote to ethnic chambers of commerce
and organization such as International
Association of Hispanic Meeting Planner and
National Coalition of Black Meeting Planner.
• More support = more investment = more
profit gain.
14. What is cannibalization?
• Cannibalization is the decrease demand for an
existing product that occurs when its vendor
or company produce a new product that
consume more than the old existing product.
15. No
• They should not be concern with it because it
will not consume more than the existing
product.
16. What do you think
makes the LVCVA so
successful?
17. Why Successful?
• They pay more attention on details to their
target customers or who they market to by
researches.
• It uses multisegment targeting strategy which
have more than one well-defined market
segments and develops a distinct marketing
mix for each.
• It uses multilevel promotion strategy to reach
many types of visitors.
18. Steps taken by LVCVA
• Advertise Las Vegas using series of TV
commercials which is “Vegas Stories” which
involves different types of people include
older Asian, African American women, elderly
couples, businesswomen, and young
professional males.
• Produce commercial recorded entirely in
Spanish for family or group activities for
vacation in Las Vegas.
19. • Promoting Las Vegas to ethnic chambers of
commerce and organizations.
• Promote special travel deals to promote the
entertainment options that Las Vegas offers in
addition to gambling.