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- -International Marketing 2011 Las Vegas Sands Corp Market Entry
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In the last episode
A u stra lia
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In the last episode
A u stra liaA New Challeng
e
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In the last episode
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In the last episode
Where will LVS find her match?
?
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Entry Strategy
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In the last episode
How will LVS pick? Environmental Organisational
Management
Brisbane Melbourne SydneyAdelaideDarwin Perth Hobart
City
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Weight Brisbane Perth Melbourne Sydney
Macro Indicators 50%
Population Size 40% 6 5 9 10
GDP per capita 40% 9 10 9 8
Median house price 20% 8 9 9 10
100% 7.6 7.8 9 9.2
Business Potential 50%
Level of existing competition 10.00% 6 6 6 6Overseas population 5.00% 6 9 9 7
Neighbouring Cities 20.00% 7 1 9 8
Domestic visitors 20.00% 5 5 7 9
International visitors 20.00% 5 5 7 9
Tourism Expenditure 20.00% 5 5 7 9
Unemployment 5.00% 9 8 6 6100% 5.8 4.7 7.4 8.3
Final Weightings 6.7 6.2 8.2 8.7
The Secret Score Sheet
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Sydney
Why Sydney? High score in Macro Indicators High score in Business Potential /Higher level of tourism expenditures Significantly larger population : . %Population 31 7 born overseas
City
BUT
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Sydney
Theres
Somethingabout
Miriam
Problem:-Legislation in NSW only 1 gaming licence allowed
Sydney
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,Target PositionBrand
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Segmentation
Upper
Middle
Lower
Demographic
Segment by Geographic and Demographic
Locals
Geographic
Travellers
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Segmentation
Locals Travellers
Hi Inc
Mid Inc
Lo Inc
Geographic
Australia #Ranks 9 in GDP per capita2nd - .largest gaming market in Asia Pacific at $2 7 billion
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Segmentation
Locals Travellers
Hi Inc
Mid Inc
Lo Inc
Geographic
Psychographic
Segment by Psychographic
VIPs-Day Tripper
VIPs-Day Tripper
Holiday/Business
Convention
Holiday/Business Conv
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Segmentation
Locals Travellers
Hi Inc
Mid Inc
Lo Inc
Geographic
VIPs-Day Tripper
VIPs-Day Tripper
Holiday/Business
Convention
Psychographic , %In Macau 70 of gaming revenue is from VIP &Holiday goers are in the mind set to spend enjoy
Holiday/Business Conv
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Segmentation
Segment
Name
Quantit
yLocal Day-trippers 20%Local VIPs 15%
Holiday Travellers 40%
Business Travelers 25%
Possible Purposes ofVisit
(Applies to allsegments)
Hotel
Gaming Casual / VIP (High Rollers)
Dining / Shopping
Any Combinations of Above
4 Market Segments:
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Target
Sydney
Target: &Local VIPs Holiday Travellers&Highest propensity to gamble highest disposable income
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Positioning
Price
LuxuryPokie Parlours
OnlineGambling
: . . .Explore The Venetian Sydney Enticing Exotic Exclusive
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Brand
Extend the successful Venetian brand to Australia :Slogan , !V e n i c e d o w n u n d er
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MarketingMix
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:ProductThe Venetian Sydney
Similar to other Venetian properties &Venetian theme luxury
-5 star hotel ,3 500 rooms -All suite only
, . .400 000 sq ft casino
&500 tables ,2 500 slots
MarketingMix
Property Suites TablesSlotsThe Venetian LasVegas
,7 100 240 ,3 020
The VenetianSydney ,3 500 500 ,2 500The Venetian Macao ,2 900 600 ,2 200
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:Product . .1 million sq ft of Grand Canal Shoppes
Upscale restaurants and retail stores along Venice style canal waterways . . . &1 2 million sq ft trade show convention complex , - & , -1 800 seat showroom 15 000 seat arena
Host premium entertainment activities
MarketingMix
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MarketingMix
, !I m all blinged up gal
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:Price ,In line with other LVS pricing for all services and facilities
Premium to local competition :Accommodation
- /$350 450 night ( - / )Offer more compelling than Star City $279 329 night
:Food fine dining /Upscale buffet $80 entry
:Gaming ;$20 min @ day $30min @ night . /Slots min $0 50 play
MarketingMix
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:Promotion : +Focus ENHANCE TVS brand image INTEGRATE Australian influence Swirling Sands Show
...Initially resembles the Australian outback Plays didgeridoo music every hour Jets shoot out coloured sand that swirls and dances to the music Think Crown Casino fire show
MarketingMix
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:Promotion & Miranda Kerr Victoria s Secret Show Kylie Minogue like Celine Dion @ LV MasterChef Celebrity Chef Restaurant
:Promotion Mass Media Database Management Star City Strategic Alliances Responsible Gaming Program
MarketingMix
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PerformanceMeasure
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PerformanceMeasure
:Melbourne Gaming Market -Crown Casino a model for forecast : .Current $1 6 billion revenue
:Sydney Gaming Market :Current $2 billion estimated :Forecast $3 billionDue to increased tourism and
expansion of market
:Venetian Sydney %Conservatively estimate 40 market share
: .First year $1 2 billion revenue
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Wedding
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, , , ,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 EvaluationRevenue: / /Gaming Hotel
/Restaurant ShopsMarket size: Tourist
,arrivals ExpendituresFeedback: Customer
,Surveys Complaints &React immediately
accordingly
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I also understand my:risks /Changes restrictions in
legislationsSensitivity to
discretionary consumerspending and tourismEnormous capital outlays
I understandmarriage is not a.word It is asentence .a life sentence
But I m here to nurture
,you and to grow with,you and bring you more
tourists throughout the
.seasons of life
Now I pronounce you husban
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!Thank You