Marketers eye young crowds, branding

Thursday, Oct. 7, 2004 | 11:02 a.m.

The next generation of casino customer is already playing in Las Vegas.

Global Gaming Expo panelists examining what type of player will follow Baby Boomers, Generation X, Generation Y and the Millennials to the city's casinos said Wednesday that two market leaders -- the Palms and the Hard Rock Hotel -- are duking it out in a battle for supremacy over the hearts and budgets of the young, hip crowd.

Others on the periphery, panelists said, are Mandalay Bay, the Venetian and Green Valley Ranch Station.

The marketing panel, on the third day of the four-day G2E convention and trade show at the Las Vegas Convention Center, was accented with the appearance of the two "Palms girls" models, Ruth Quinn and Ryan Wahrenbrock. The two women were chosen last summer to personify the Palms image and customer.

Players who fall into the age demographic that ranges from 21 to 45 enjoy fresh rock bands, pool parties and active nightclubs, are sexually uninhibited and prefer table games to slot machines.

Noting that sex sells to the hip generation, panelist Glenn Buxton, a member of the American Marketing Association, said some locations have attractions, even though by most standards the location isn't considered particularly cool. He listed New York-New York's Coyote Ugly bar, Mandalay Bay's swimming-tops-optional Moorea Beach Club and the plan to develop the first-ever Hooters Hotel in Las Vegas as examples.

"They live like there's no tomorrow," said Hard Rock President Kevin Kelley of his target demographic. "If they have the disposable income in their pocket, it's time to party."

Kelley said the Hard Rock embraces irreverence and the resort's controversial advertising policies have landed it in trouble with state gaming regulators. A hearing is scheduled in November on state allegations that the Hard Rock failed to live up to its agreement to properly review its promotional materials. Two other allegations regarding advertising content were dismissed by the Nevada Gaming Commission last month.

The Hard Rock attitude has attracted numerous young and hip Hollywood celebrities. Ben Affleck and Jennifer Lopez are among the resort's customers who enjoy the atmosphere and being seen flashing large sums of money.

"We've created an atmosphere that they like to hang out in," Kelley said. "It's a product that enhances the lifestyle of our people."

Asked whether people in their 40s were still a part of the Hard Rock demographic, Kelley said the property was developed 10 years ago by people in their mid-30s -- and they still feel they're a part of the crowd.

"Generation X is a well-heeled crowd," he said. "They live for today and they're the best customer you could ask for."

Noting that the Hard Rock crowd prefers the social element of interactive table games to slot machines, Kelley said he sees a dilemma on the horizon for game manufacturers.

Most gaming supply companies are gearing up to design more slot machines, knowing that new gaming jurisdictions will demand thousands of slots. But Kelley believes customer demographics are shifting and the demand for table games is increasing.

He said the Hard Rock's revenue stream is vastly different from most casinos -- only about 35 percent of it comes from slot machines, compared with between 70 percent and 80 percent at most resorts.

What kind of slots would appeal to the Hard Rock masses?

"Maybe something themed with rock icons or pop icons," he said. "Or maybe extreme sports personalities. Some of those machines with television show themes like 'The Beverly Hillbillies' or 'M*A*S*H' were around before our best customers were even born."

Kelley said the Hard Rock is considering a prize promotion that would give winners a chance to enjoy extreme sports activities or send them to exotic locations for an extreme sports adventure.

Noting that the demographic of the Hard Rock and the Palms is drawn to the social experience of interactive games, panelist Brooke Dunn, an executive with Las Vegas-based Shuffle Master Inc., said his company is working on devices that enhance the table game experience.

The company is negotiating to distribute Star City Table Games' Rapid Roulette, a live roulette game in which players wager from computerized betting stations.

The company's automatic shuffling machines speed up play on table games and have generated new series of poker games.

"This demographic loves poker," Dunn said. "It's all over TV and it's everywhere. The games we offer is more inviting because it's in a group setting and we've taken some of the skill aspect, the bluffing, out of the game to make it a little less intimidating."

Shuffle Master also is demonstrating an automated low-stakes blackjack game. Dunn said many casinos can't afford to offer $1 blackjack tables because of the cost of providing a live dealer. Automated machines, he said, make low-stakes blackjack financially feasible.

Another marketing panel at Wednesday's G2E show focused on the importance of developing identifiable brands.

Steve Rosen, senior vice president of marketing for Caesars Entertainment Inc., said even though Caesars Palace has had several owners over the years -- and it could have another next year if the company is bought out by Harrah's Entertainment Inc. -- it has always managed to endure because it has always stood by its ancient Roman-themed branding.

John Marz, senior vice president of marketing and events for Mandalay Resort Group, said it is important for every department in the resort to buy off on the brand marketing strategy and at his property, managers from different departments, from operations to food and beverage, attend weekly marketing meetings.

"Once you've worked to build an upscale brand presence, if you put a McDonald's or a Pizza Hut in there, you're going to defeat what people think about you," he said.