There has been a lot of discussion about the new "marketing" at Caesars -- both pre and post bankruptcy. Many of us are critical of the cuts in comps and offers. Some call it a blunder when Caesars has cut comps and offers. But is it a blunder?

Originally Posted by Dan Druff View Post
These are all big marketing blunders.
Let me take the side of "marketing" for a moment.

I can't imagine that they haven't got it all figured out. Most "offers" and "promotions" are set to reach maximum efficiency. In other words, if they want 100 players to show up, they will offer what is needed to get those 100 players. They have their computers, they know what the redemption rates are for various promotions -- and there is no guess work involved.

Yes, there will be those who will say that particular offers are not attractive enough for them to participate. I personally will not run off to Vegas for a $400 Macy's gift card -- because $400 is not a big enough "trigger" for me. But there are probably many hundreds of others who will gladly make the trip for that $400 gift card and that's all "marketing" cares about -- filling rooms at an expected cost.

Marketing is not about keeping anyone happy except the accountants.

Now, you can question whether or not they are losing certain bigger players by capping their offers -- and the answer is probably that they are. But maybe they don't give a damn because by cutting out certain "bigger players" they also can eliminate certain costs that big players have.

What do I mean by "costs" that bigger players have? Let's consider some of the little things: robes, shower gel, slippers, razors and shave cream -- over the past year they've been cut. Do any of you remember how, about five or so years ago, you could request "7 Stars Linens" in your room? These were special sheets and towels available on request only -- but they were also eliminated.

If marketing determines that they can obtain the same profit levels catering to lower level players who don't require the extras that bigger players get -- why bother catering to the bigger players?

Let me put it this way:

If Caesars can make $1 profit on a $1 player who gets comps for a $1 player, and if Caesars makes $1 profit on a $5 player who needs comps for a $5 player, why bother with the $5 player? It's the same $1 profit, isn't it?