Harrahs Entertainment Case Study Solution

Case | HBS Case Collection | October 2001 (Revised June 2004)

Harrah's Entertainment Inc.

by Rajiv Lal and Patricia Carrolo

Abstract

Describes a situation facing Philip Satre, chairman and CEO of Harrah's Entertainment, Inc. Satre was reading a May 2000 Wall Street Journal story that discussed the company's marketing success in targeting low rollers, the 100% growth in stock price and profits in the year to December 1999, and the revenue growth of 50%, which significantly outpaced the industry. The exciting articles aroused Satre's desire to know more about the activities of his then COO, Gary Loveman, and his team of "propeller heads" with respect to their database marketing efforts and the Total Reward Program. Satre was interested in two questions: He wanted to know how much these marketing efforts had contributed to Harrah's overall performance and whether these marketing results were a one-shot event or could be achieved year after year, especially as the competition introduced similar programs.

Keywords: Budgets and Budgeting; Marketing; Marketing Reference Programs; Performance Evaluation; Motivation and Incentives; Competitive Strategy;

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