[ORDER SOLUTION] Market Segmentation Strategy

Its For an Assignment. 1 Page. Nothing too crazy.  PART A – Las Vegas Case Viva Las Vegas In 2003, more than 35.5 million travelers made Las Vegas their destination of choice. It was the second largest volume of visitors the city had ever entertained, lagging just slightly behind the 35.8 million for the year 2000. Those numbers are remarkable given the recent slump in the travel industry and the city has the Las Vegas Convention and Visitors Authority to thank. For almost 50 years, the LVCVA has been promoting Las Vegas in an effort to maximize occupancy for the city’s hoteliers who suffer from the cyclical demand of the travel industry. The authority’s marketing of the city’s convention, lodging, and entertainment facilities to convention organizers, meeting planners, and leisure travelers plays an integral part in keeping hotel rooms and convention facilities occupied during off-peak times of the year. Many types of visitors go to Las Vegas for a variety of reasons, and the LVCVA uses a multilevel promotional strategy to reach them all. The organization’s promotional mix includes national television advertising, grassroots marketing, and relationship building with a variety of organizations. Each element is specifically designed to address issues within particular segments of it growing target market, such as changes in the composition of the visitor pool, shifts in visitors’ travel preferences, the emergence of potentially lucrative metropolitan markets, and trends in foreign visitors. An LVCVA study of the area’s visitors for 2001, for example, found that African Americans, Hispanics, and Asian Americans accounted for 9, 5, and 4 percent respectively of the visitor pool. The same study also revealed that the number of visitors from each of these groups has been steadily rising and that all U.S. visitors were beginning to prefer two- or three-day stays to weeklong vacations. With those data in hand, the LVCVA produced its award winning “Vegas Stories” series of TV commercials for 2003 and 2004. The irreverent ads poke fun at the sticky situations travelers might find themselves in as a result of too much revelry in the desert.  Using the tagline, “What happens here stays here”, the spots from the “Vegas Stories” campaign include an older Asian woman trying to alter an after-the-trip love letter while Roy Orbison’s “Only the Lonely” plays in the background and a bachelorette party of African American women riding quietly in a limousine until the group is slowly overcome with sheepish laughter. Other commercials depict elderly couples, businesswomen, and young professional males. The LVCVA also its first ever commercial recorded entirely in Spanish, which was written specifically to appeal to Hispanics’ historical preference for family or group activities for vacations. Additionally, the authority’s director of diversity began promoting Las Vegas to ethnic chambers of commerce and organizations like the International Association of Hispanic Meeting Planners and the National Coalition of Black Meeting Planners. Other research performed by the LVCVA identified Portland Oregon and Atlanta as emerging regional markets based on their median household incomes, their available fight to Las Vegas, the cost of advertising in those markets, and the propensity of their citizens to gamble. The LVCVA then bought billboards in each city, cruised the towns in a specially prepared van featuring an Elvis impersonator and a traditional Vegas showgirl, and promoted special travel deals to promote the entertainment options that Las Vegas offers in addition to gambling. The authority’s message carries beyond the borders of the United States too. When it noticed a significant drop in the visitor volume from Canada-Las Vegas’ leading source of international visitors-the LVCVA sent a delegation to Toronto. The group canvassed Toronto’s Canadian Meeting and Incentive Travel Symposium and Trade Show to persuade convention operators to host future productions in the desert. Representatives also met with convention and leisure travel planners and attended events in Montreal and Vancouver to promote their cause.  Las Vegas is clearly on the rise again thanks to the tireless work of the LVCVA and the authority has the hard data to prove it. As long as the LVCVA continues to understand its many diverse customers and communicate with them appropriately, the city of lights should continue to shine brightly for many years to come.   QUESTIONS FOR LAS VEGAS CASE What variables (geographic, demographic, psychographic etc.) does the LVCVA use for segmenting its target market? Support your answer with evidence from the case. Does the LVCVA use an undifferentiated, a concentrated, or a differentiated target market strategy? Explain your choice Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all U.S. citizens aged 18 to 75, speculate how you might segment this market based on lifestyle. What makes the LVCVA so successful?   WEEK 2 ASSIGNMENT PART B – Dunkin Donuts Case Read the opening vignette in chapter 6 on Dunkin’ Donuts. Each group should then answer the following questions: QUESTIONS What is Dunkin’ Donuts’ strategy? What is unique about their market segmentation strategy? Are there weaknesses in the Dunkin Donut strategy? If so, what are they? Do you see any uncovered market segments? If so, what are they? How would you exploit this?

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