NEW YORK UNIVERSITY Stern School of Business Marketing Department. MKTG-UB.0080 Tuesday 6:30 7:45pm Fall 2014
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1 NEW YORK UNIVERSITY Stern School of Business Marketing Department MKTG-UB.0080 Tuesday 6:30 7:45pm Fall 2014 Classroom Tisch UC-21 MARKETING THE LEISURE INDUSTRIES Two Credits Toward the BEMT minor Clinical Professor Marketing: Al Lieberman Executive Director, Entertainment, Media & Technology Program Telephone: Fax: Office: Tisch Building, 40 West 4 th Room 903 Office Hours: Tuesday 1-4 p.m., and by appointment TA: TBD TBD COURSE BACKGROUND This is a specialty marketing course designed to provide students with a framework for understanding the dynamics of marketing several leading sectors within the leisure industry. The focus is on understanding the development and application of marketing strategies and tactics for leisure companies competing for a share of the consumer's discretionary spending. The course will cover recent activities including mergers, acquisitions in those key sectors of the leisure industry: casinos, cruise ships, theme parks, eco-tourism, themed restaurants, resorts, leisure hotels, time shares. The course will explore marketing techniques that apply across the leisure companies, including licensing, sponsorships, line extensions and promotion. Discussion of evolution, and current status in these sectors through lectures, case studies, text and article readings and project work will be included. COURSE OBJECTIVES To provide students with a framework through case studies, lectures and readings of the critical marketing problems and opportunities for some of the most important companies within key sectors of the leisure industry. To learn the basic concepts, terms and principles which apply to marketing in the leisure industries. To analyze the activities of key companies within the industry based on case studies, corporate reports, in-class videos, and current readings. To become familiar with marketing strategies and techniques that cut across all the sectors of the leisure industry including classic vehicles such as advertising, public relations, direct marketing, promotion, social communities, internet websites and search portals. To recognize the underlying strategy of motivating consumers to spend their disposable income for enjoying and participating in the leisure industry, and to understand the connections between these various sectors in the utilization of certain marketing strategies and tactics. 1
2 COURSE REQUIREMENTS Class participation will be extremely important, since much of the study of the leisure industry is obtained from articles, on the job observation, guest speakers, and some selected texts. In addition there will be two case studies with written reports. The class will be graded on the following basis: Leisure Industry on the EMT Web Grading Cases 15%, 15% Individual Class participation (article) 10 % Individual Midterm 20% Individual Paper/Presentation 20%/20% Team TOTAL 100% INSTRUCTOR POLICIES Attendance/Lateness: Absences/Tardiness will lower your class participation grade significantly. Late assignments are unaccepted. If you miss any assignment deadlines, i.e. at the start of a class period on the due date, you forfeit a grade on that assignment. Cheating/Plagiarism: Cheating/Plagiarism will result in a grade of "F" for the assignment/exam for all parties involved Class Participation: It is essential that everyone contributes to class discussion - in the most time honored and Socratic Method. In this forum you will be expected to have read either the text or the case. We expect lively debate and a distinct point of view from any conversation, that can include challenging statement made in the press as well as by other classmates, not just the professor. Learning will come from each participant trying to understand the issues, cases, and media statements. Please continue with reading assignments as scheduled regardless of whether the class activities at times fall behind schedule. On occasion a cold call or brief pop quiz will be announced. Class participation will be graded on the quality of the interaction and will be measured against these criteria: Preparedness of the comments Extent of knowledge Ability to get to the heart of the matter Statement of practical relevant experience New insights Drawing on current news articles Listening skills Opening new doors for investigation Building on statements of others Exams There is a midterm based on class sessions and text. Please keep in mind there are no makeup exams for any reason. The cases will count for double if the exam is missed 2
3 Grade Appeals If you have any question about your grade - group or individual - (other than a numerical error on my part) please state your case in a typewritten detailed memo to me precisely why I should consider a change with supporting material from text and/or notes. Required Reading: Selections from the reading deck, text and class assignments for each week GUIDELINES FOR WRITTEN ASSIGNMENT 1. All papers are to be typed, double-spaced. 2. It is recommended that you follow a basic proposal or report format or a style book to present your work in a polished and professional manner. 3. Please take time to organize your work so that it is clear and concise. Your opening statement should be an introduction which states what your objective is and what you're going to discuss. The main body should present your findings in a logical and straightforward way. Summarize your findings or recommendations at the end in a conclusion. Break up your work into subheadings. 4. Make sure that your work is proofread and edited. You should ask a friend, colleague, or co-worker to help you with this. Your final draft should be free of errors in spelling, punctuation, and grammar; having someone else proofread is the most effective way to do this. 5. Some of you may want to use your work as a tool to help you in your career planning. This can be a very persuasive "calling card." It's well worth your time to develop this assignment into something you can use beyond this course. 6. Your assignment is expected to reflect your understanding and comprehension of the material covered in this course. This includes all the readings, supplementary handouts, and the lectures. Most of the detailed information concerning the various aspects of the course curriculum are contained in the extensive readings provided. Your assignment should represent the cumulative work product of this course and incorporate that information. 7. The assignments are due as noted on the syllabus attached. If for any reason you are unable to submit it on that day, you will have to make arrangements to send it to me directly. The university imposes a very tight deadline as to when the final grades are due, usually within a few days after the final. Assignments submitted to me via will not be accepted. REQUIRED READING: Readings from various texts including Selling the Seas Dickinson, Vladimir, Prentice Hall/FT, to be distributed in class HBS CASE PACKET: Carnival, Celebrity, Cirque de Soleil, Marriott E-Business, Harrah s CRM, Harrah s Promus, Available at the Broadway NYU Bookstore. 3
4 MARKETING THE LEISURE INDUSTRY WEEK DATE SUBJECT Tues. September 02 Tues. September 09 LEISURE MARKETING: INTRODUCTION/OVERVIEW Introduction: Al Lieberman, professional background. Students: Career interests and course objectives. What is Leisure Marketing: Definition, industries involved, perspective on integrated and US Leisure marketing. Experiential Overview Historical Perspective of Leisure Industries: Growth in recent years of major sectors in Leisure industry Curriculum Review: Assignment review, bibliography The relationship to the Entertainment Industry The Leisure Industry The Demographics, Psychographics, Revenue Statistics, Employment, Impact of Social, Political, and Economic phenomenon Seasonality, Natural Disasters, Leading Players in the Business, The Personalities The Power Brokers - The Changing Elements - products and participation focus on media budget, television commercials, print advertising, poster Assignment: Business Story from Trade papers or Travel blogs 3. Tues. September 16 Developing Customers, Segmenting the Market, and Gaining Repeat Customers: In the Cruise Industry Brief history of the industry and its evolution: how it is structured today. Trends in marketing: research, testing, commercials, trailers, media mix Discussion of the launch of Celebrity Cruises, including Finance, design, ship building, brand development, marketing & advertising, travel agent participation HBS CASE CARNIVAL CRUISES 4
5 4. Tues. September 23 Developing Customers, Segmenting the Market, and Gaining Repeat Customers: In the Cruise Industry (continued) Utilizing Market research, loyalty programs, pricing and promotions to build revenue Discussion of the Disney cruise, from testing with Premier Big Red Boat, launch of Disney Fleet, Use of Disney Characters, Amenities, Disney Island, Children Care, Adult Enjoyment HBS CASE CELEBRITY CRUISES 5. Tues. September 30 BRANDING LEISURE CITIES AND MARKETING LEADING (adult) BUSINESSES: Las Vegas, Atlantic City and Mohegan Sun, Connecticut History, early days of Las Vegas, Integrated selling the city and selling the casinos, Growth of the Strip, Players: Howard Hughes, Kirkorian, Adelson, Wynn, New Additions, Fact & Fiction, Godfather II, Casino, Leaving Las Vegas, Eliminating Organized Crime HBS CASE HARRAH s PROMUS 6. Tues. October 07 TARGETTING CUSTOMERS & CREATING UNIQUE BUSINESSES: Marketing Casinos, Gaming Venues & Attractions Launching a new Casino, the Station Casinos and the Fertitta Family, The Palms and the Maloof Family 17 Restaurants, simultaneous Entertainment, Shows Broadway and Major Stars, Celine Dion,CHER, Elton John, Bette Midler Discussion of BRANDING LAS VEGAS HBS CASE: HARRAH s CRM 7. Tues. October 21 CREATING, PACKAGING & PRICING FAMILY LIESURE: Theme and Amusement Parks Vocabulary and Technology: Important language. The Inspiration of Walt Disney,The Structure of the Industry: A look at the size of industry operators 5
6 and franchisees. The Problems and Opportunities Faced by the Industry. Independents Research - Program Development October 21 Term Paper Outlines Due 8. Tues. October 28 REINVENTING & REFRESHING FAMILY LEISURE EXPERIENCE: Theme and Amusement Parks IMPACT on the Cities, Orlando, Anaheim, Growth of the Competition, Global Theme Parks vs. Local or Domestic: SILVER DOLLAR CITY Branson, Missouri, DOLLYWOOD, Pigeon Forge, Tennesee How the Industry stays current, what is the Pricing Model, where are all the revenue Sources 9. Tues. November 04 SEARCH FOR UNIQUE CONTENT: Cirque de Soleil, Big Apple, Ringling Bros How have each of these major Circus Brands evolved, what is the incentive to visit, pricing, extraordinary recruiting of staff, performers, marketing, advertising, promotions. HBS Case: Cirque De Soleil 10. Tues. November 11 Midterm Open Notes 11. Tues. November 18 MARKETING & LINE EXTENDING LEADING BRANDS: Resorts and Hotels The Marriott Brand, Concept Themes, Disney Themes Hotels, Giant Hotels with Leisure Hotels vs. Boutique Brands HBS Case: Marriott E-Business 12. Tues. November 25 Hotels, Resorts, Time Shares, Village Clubs, Hotel Conglomerates- November 25 - Term Papers Due 6
7 13/14. PRESENTATIONS Power Points minutes: Alphabetical by Topic ASSIGNMENTS: A 20 page paper, double-spaced with bibliography, (please not just web listings) and any exhibits or graphs you with to include. The paper will be graded on the basis of content, clarity, grammar, spelling, organization, and innovative thinking. Where material has been excerpted footnotes must be used. The eleven teams selected randomly (five members on each team) are listed on the attached page. You will have some time during the first class to shift between teams, and then maintain that position through the balance of the term. 1. The paper will first focus on a single company and describe the current status of this company. 3-4pages 2. Provide a brief background on the sector in which the company operates, (beyond what we have covered in class) 2 pages 3. Identify the major two or three companies in the sector (no more), 2 pages 4. Brief listing of the key executives in the company selecting three of the following, Founder or CEO, Head of Marketing, Head of Promotion, Head of Entertainment or Content Development 1-1 ½ pages 5. Describe the core competency (one or more) of your company 2pages 6. Select one recent successful marketing activity implemented and one unsuccessful marketing activity, and explain your rationale. 3 4pages 7. Identify the challenges facing your company or those in its sector currently and into the foreseeable future, look at future trends of the industry 2 pages 8. Explain impact of technology on the company or those in the sector 2pages 9. Finally make a recommendation to the CEO of the company on next steps 1-2 pages 10. Don t forget An Executive Summary, a TABLE of CONTENTS, and page numbers TERM PAPER TOPICS: WYNN HOTELS & CASINOS MGM GRAND HOTELS MOHEGAN SUN IN BRIDEGPORT, CT. UNIVERSAL THEME PARKS IN ANAHEIM, ORLANDO, USA DISNEYLAND & DISNEY WORLD THEME PARKS IN ANAHEIM, ORLANDO. USA DISNEY THEMED HOTELS THEMED RESTAURANTS, HARLEY DAVIDSON, PLANET HOLLYWOOD LEGOLAND IN CARLSBAD, CA SILVER DOLLAR CITY, BRANSON, MO. CELEBRITY CRUISES, CARNIVAL CRUISES, PRINCESS LINES NORWEGIAN CRUISE LINES FOUR SEASONS HOTELS MARRIOTT VACATION VILLAGES STARWOOD HOTELS BOUTIQUE HOTELS 7
8 Leisure Marketing Case Assignments TOTALLY INDIVIDUAL with EXTRA CREDIT FOR VOLUNTEERING IN CLASS DURING CASE DISCUSSION Cases/Assignments Financial Times/The Economist Due Dates September 09 Individual Names everyone CARNIVAL CRUISES September 16 Last name A-H CELEBRITY CRUISES September 23 I-P HARRAH S PROMUS September 30 Last name Q-Z `HARRAH S CRM October 07 Last name A-H Outline for the Paper October 21 Everyone CIRQUE de SOLEIL November 04 Last name I-P Midterm November 11 - Open Notes everyone MARRIOTT E-BUSINESS November 18 Last name Q-Z Term Papers Due November 25 Everyone Presentations December 02, 09 Teams Alphabetical order Questions for the Cases QUESTIONS CARNIVAL CRUISES 1. WHAT IS CARNIVAL S CORE COMPETENCY WHAT DO THEY STAND FOR? HOW IS THIS INTEGRATED IN THEIR BRANDING INITITIATIVE 2. HOW HAS THE CRUISE INDUSTRY EVOLVED SINCE 1970? IS THERE ROOM FOR CONTINUED GROWTH? DESCRIBE AND EXPLAIN. 3. WHAT ARE THE FOUR SEGMENTS OF THE OVERALL MARKET? IN WHICH MARKET SEGMENT DOES CARNIVAL FIT? DECRIBE AND EXPLAIN. 4. HAS DEMAND FOR CRUISING OUTPACED THE NEW SHIP BUILD OR VICE VERSA? 5. HOW IS PRICING INCORPORATED INTO THE CARNIVAL MARKETING PROGRAM? WHAT DEOS THIS MEAN IN TERMS OF THE BRAND IMAGE & PERCEPTION OF THE CARNIVAL BRAND? 6. CARNIVAL CLAIMS TO OWN THE PSYCHOGRAPHICS OF FUN. THEY HAVE BECOME KNOW AS THE FUN SHIPS. HOW IS THIS IMAGE REINFORCED BY CARNIVAL? WHAT TYPE OF CARNIVAL CUSTOMER IS ATTRACTED TO THE CARNIVAL IMAGE? SINCE THE TRAVEL AGENT HAS HELPED TO BUILD THE CARNIVAL CRUISING BUSINESS, WHOM DO THEY SELECT TO GO ON CARNIVAL CRUISES? 7. HOW DOES CARNIVAL USE ADVERTISING AND DIRECT MARKETING TO BUILD THE CARNIVAL CUSTOMER BASE AND FILL THEIR SHIPS? HOW DO THEY GET THE MESSAGE OUT? 8. EXPLAIN THE DIFFERENCE BETWEEN THE FIRST TIME CRUISER AND THE HARD CORE FREQUENT CRUISING CUSTOMER? WHAT IS THE FOCUS OF CARNIVAL S CALL CENTERS? 8
9 9. EXPLAIN THEIR REVENUE ENHANCEMENT PROGRAM, AND ITS IMPORTANCE TO CARNIVAL S BOTTOM LINE? INCLUDE A DISCUSSION OF THE SAIL AND SIGN CARD. 10. HOW DOES CARNIVAL VIEW THE VALUE OF CUSTOMER DATA AND ITS USE OF INFORMATION SYSTEMS TO CLOSE THE VOYAGE QUESTIONS FOR CELEBRITY CRUISE: A TASTE OF LUXURY 1. WHAT IS CELEBRITY S CORE COMPETENCY. I.E. WHAT DOES THE COMPANY STAND FOR. ARE THESE COMPATIBLE GOALS? DESCRIBE AND EXPLAIN YOUR OPINION. 2. WHAT IS CELEBRITY S TARGET MARKET ITS CONSUMER NICHE? 3. WHAT DOES THE X STAND FOR ON CELEBRITY S LOGO 4. DESCRIBE AND EXPLAIN THE NEW INITIATIVES LAUNCHED WERE THEY WORTH THE EXTRA EXPENSE, EXPLAIN. 5. FROM THE CASE, WHAT WERE THE CRUISE INDUSTRY GROWTH TRENDS? 6. WHO ARE CONSIDERED THE LUXURY LINES? 7. WHO ARE CONSIDERED MASS MARKET LINES? 8. WHAT WERE THE PROBLEMS THE TRAVEL AGENTS FACED IN SELLING THE CRUISING EXPERIENCE? WERE THEY IMPORTANT TO THE CRUISE BUSINESS? 9. EXPLAIN THE IMPORTANCE OF STAFF AND CREW? HOW ARE THEY DIFFERENTIATED & TREATED? HOW WERE THEY TRAINED? HOW WERE THEY COMPENSATED? WHAT KIND OF LANGUAGE WERE THEY TRAINED TO USE WITH CUSTOMERS 10. WHAT ARE THE KEY ELEMENTS OF HAVING A SUCCESSFUL TIME CRUISE AS DESCRIBED BY CELEBRITY. 11. WHAT WERE THE KEY ELEMENTS OF THE CELEBRITY ADVERTISING CAMPAIGN AS DESCRIBED IN THE CASE? QUESTIONS FOR HARRAH S THE PROMUS COMPANIES CASE 1. WHAT WAS THE EARLY IMPETUS OR INCENTIVE TO CREATE GAMING OR GAMBLING IN THE U.S.? 2. WHY IS LAS VEGAS KNOWN AS SIN CITY? WAS NEVADA THE ONLY SSTATE TO HEP GAMING TO PROLIFERATE? WAS ATLANTIC CITY A REAL COMPETITOR? WHAT WERE THE OTHER GAMING OPTIONS, LIST AND DESCRIBE. 3. WHY DID LAS VEGAS OUT DISTANCE ALL THE OTHER GAMING OPTIONS AND COMPETITORS OUTSIDE OF NEVADA? 4. WHAT ARE THE PSYCHOGRAPHICS & DEMOGRAPHICS OF THE GAMING CUSTOMER IN THE U.S.? 5. WHO WERE THE MAJOR PLAYERS IN LAS VEGAS & WHY DID THEY PROSPER? 6. WHAT WERE THE PRINCIPLES (BUSINESS PRACTICES, INNOVATIONS) THAT ENABLED HARRAH S TO GROW AND OUTDISTANCE THE COMPETITION? LIST AND DESCRIBE. 7. HOW DID HARRAH S MOVE THEIR DECENTRALIZED MARKETING TO A COMPANY- WIDE APPROACH OF MARKETING? EXPLAIN THE INGREDIENTS OF THIS NEW PROGRAM & PARTICULARLY THE GOLD CARD PROGRAM. 8. HOW DID HARRAH S WORK WITH THE REGULATORY PROCESS IN ORDER TO MAXIMIZE THEIR OPPORTUNITY TO EXPAND THEIR GROWING GAMING EMPIRE INTO NEW AND DIVERSE GEOGRAPHIC AND VENUE SPECIFIC ARENAS. 9
10 QUESTIONS FOR HARRAH S ENTERTAINMENT REAL TIME CRM CASE 1. WHAT DROVE HARRAH S GROWTH AND WHAT WERE THE STEPS TAKEN TO BUILD THEIR EMPIRE THROUGH THE LATE 90 S & EARLY 2000? 2. WHY WAS THE CUSTOMER DATA BASE SO IMPORTANT TO THE NEXT PHASE OF HARRAH S GROWTH & PROFITABILITY? 3. EXPLAIN THE IMPLEMENTATION OF THESE SPECIAL PROGRAMS: A. TOTAL REWARDS B. HARRAH SCOM C. WINIT 4. WHY WAS THERE RESISTANCE TO CHANGE AMONG THE REGIONAL MANAGERS? 5. HOW DID HARRAH S CLOSE THE LOOP WITH CRM AT THEIR CASINOS USING THESE TOUCH POINTS: a. OBSERVED BEHAVIOR DATA b. ANALYZE & SEGMENT c. TARGETED OFFERS QUESTIONS FOR THE CIRQUE DE SOLEIL CASE 1. WHY WAS CIRQUE CONSIDERED A RE INVENTION OF THE CLASSIC CIRCUS? WHO IS THE AUDIENCE FOR THIS NEW CONCEPT>>? 2. WHIO INVENTED THE CONCEPT? WHAT WERE THE ORIGINS, THE EARLY EXPERIMENTS? 3. WHAT WAS THE CORE COMPETENCY AND THE ELEMENTS OF THE TRANSFORMATION? STAGE CRAFT, LIVE MUSIV, SONGS, TRANSDISCIPLINARY EXPERINCE, 4. WAS THE INTERACTION WITH HOLLYWOOD A SUCCESS? PLEASE EXPLAIN. 5. HOW DID CIRQUE ENTER LAS VEGAS? WHAT DID IT MEAN FOR THE BRAND? 6. WHAT WAS THE FORMULA FOR EXTENDING THE BRAND? 7. WHAT WERE THE ESSENTIAL ELEMENTS FOR EACH SHOW? HOW WERE THEY IMPLEMENTED? 8. HOW MANY SHOWS WERE FINALLY IMPLEMENTED? WHAT WERE THEY CALLED AND HOW DID THEY DIFFER? WHERE WERE THEY PERFORMED 9. WHAT WERE THE BIG PLANS FOR THE FIVE YEAR PROJECTED OPPROTUNITIES 10. HOW FAR HAD THEY EXPANDED GLOBALLLY BY 2005? MARRIOTT E-BUSINESS HBS CASE QUESTIONS 1. WHAT ARE MARRIOT S VARIOUS BUSINESS I.E. REVENUE PRODUCING OPERATIONS? 2. HOW HAS MARRIOTT EXTENDED ITS BRAND? WHAT ARE THE VARIOUS CONSUMER AUDIENCES FOR MARRIOTT S BRAND? 3. HOW HAS I.T. ENHANCED THE MARRIOTT BUSINESS MODEL? 4. WHAT ARE THE FOUR (4) KEY ELEMENTS OF MARRIOTT S E-BUSINESS STRTEGY? 5. WHO IS THE BUSINESS TO BUSINESS COMMERCIAL AUDIENCE FOR THE MARRRIOTT BRAND? 6. WHO ARE MARRIOTT S THREE (32) MAJOR COMPETITORS (NOT DESCRIBED IN THE CASE) 7. WHAT IS THE NATURE OF THE MARIOTT VACATION VILLAGE BRAND? DESCRIBE AND EXPLAIN 8. HOW IS MARRIOTT DOING IN 2011, 2012? 9. WHAT IS THE NATURE OF MARRIOTT S LEISURE MARKETING S STRATEGY? 10
11 TERM PAPER OUTLINE- TWO PAGES ONLY 1. EXECUTIVE SUMMARY TO BE ADDED AFTER THE PAPER IS COMPLETE 2. BACK GROUND OF THE SECTOR OF THE LEISURE INDUSTRY BRIEF (1/2 PAGE) 3. BACKGROUND AND STATUS OF THE COMPANY 4. COMPETITION BRIEF REVIEW 5. MARKETING SUCCESS, DESCRIBE 6. MARKETING FAILURE, DESCRIBE 7. TECHNOLOGY IMPACT ON THE COMPANY 8. FUTURE, TRENDS, RECOMMENDATIONS 9. BIBLIOGRAPHY 10. EXHIBITS, CHARTS 5 TEAM MEMBERS- 20 PAGES 4 TEAM MEMBERS 15 PAGES 3 TEAM MEMBERS 12 PAGES 11
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