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Wynn Las Vegas is a resort and casino that is built around the Las Vegas strip. The casino is named after its developer and cost $2.7 billion. The resort is one of the most praised resorts in the country and it has won many awards. The resort includes a 614-foot hotel that covers 454 floors and villas.
The resort also includes a casino, retail space and a convention center. The resort has undertaken several initiatives to increase and maintain its customers. One of the methods that the resort has applied is delivering added value to its customers. This they achieve through various ways such as partnering with other organizations and offering the customers a time of their life.
The ever-increasing cutthroat competition across industries and within industries has inspired many organizations to invest heavily in developing stable customer relationship. Less competitive business plants are finding it difficult to adopt themselves to the sensitive market hence losing their market share.
To retain market share, it is important that an organization develop good customer relationship. Palmer (2008, p.135) cites establishment of good customers relationship as key to success in any service venture. In this regard, customer value addition has been cited as the best way of enhancing customer royalty.
Customer value addition is the sum total of gains which an entrepreneur promises a customer (Wright & Lovelock 1999). Therefore, this report presents findings on the effectiveness of Wynn Las Vegas’ value addition in fostering competitive edge. In addition, the report will analyze the approach used by Wynn Las Vegas in its service delivery.
Wynn Las Vegas is one of the world leading casinos and is exemplary when it comes to customer service delivery, customer satisfaction, as well as investment in infrastructure. Enz (2009, p. 167) asserts that Wynn Las Vegas property is the first Casino to receive both mobile five star and AAA five Diamond ratings.
The facility has a capacity of approximately 2,000 guest rooms, which are perfectly furnished. In addition, the management of the Casino has always endeavored to focus on improving customer services delivery. This has been done by offering recreational facilities such as private drive, pool, elevators, and musical entertainment to all its customers.
The facility has ultra-modern amenities and a sumptuous environment that are always furnished with outstanding service. The Wynn Las Vegas management is credited for their innovative ways of dealing with the customers’ needs. Wynn Las Vegas is furnished with the latest state-of-the-art in all its facilities.
In its bid in delivering added value to its customers, Wynn Las Vegas partnered with Avaya to offer intelligent communication in its rooms. Stephen A. Wynn the chairman and CEO of Wynn resorts had this to say about the partnership, “Superlative guest service is a hallmark of Wynn Las Vegas.
When we designed the new resort, we were committed to putting the very best technology to work in innovative ways. Avaya met that challenge with an Intelligent Communications solution that enables our guests to enjoy new levels of customer service throughout the resort” (Avaya 2010).
The casino has also partnered with luxury car makers Ferrari and Maserati. For customers this is the only place in the large Las Vegas metropolitan area as well as the whole of North America that has a certified Ferrari store. The store offers Wynn Las Vegas customers the opportunity to buy Ferrari branded apparels, electronics, or racing merchandise.
Enz (2009, p. 167) describes the casino as the first to combine both the accommodation key and the frequent-player key. This distinguishes the place from the rest, and customers can enjoy all the services offered by the establishment easily without having to go to a lot of trouble. On the competitive ground, Wynn Las Vegas leads the way by offering hyper-services anchored on customer value addition
Apart from indoors recreational facilities, the amenity provides outdoor recreational services. These facilities include an expansive golf course that attracts clients from all over the world. Besides, the casino has a world-class swimming pool where clients cool off their bodies during hot summers. The tennis lovers are also catered for by ensuring that their needs are taken care of. In addition, other unique features make the place a world-beater.
According to Manning (2007, p. 28) value addition creates strong customer relationship that provides a win-win philosophy. Value addition not only locks in customers, but it also set high standards that cannot be met by the competitors. Therefore, the entire process facilitates a competitive advantage for the organization.
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Value addition implies increases in prices, but this increase is can be justified by improving the quality of product and services that are delivered. However, value addition is not necessarily a mission that is done blindly but it requires identification of customers’ needs.
Manning (2007, p. 183) show that customer information forms the basis of product differentiation and quality improvement. Acquiring this information is usually a hard task that requires determination that is solely vested in organization strategic plan. Woodruff and Gardial (1996, 57) consider value to be the externality between the positive and the negative outcomes that is derived from enhancing customer relationship.
Limitations of Customer Value addition
Even though customer value addition has been successful in fostering good customer, relationship the strategy has several precincts. There are several challenges that are associated with this marketing process. The main challenge presented is that of the perception of customer when it comes to value added.
Lusch and Vargo (2006, p. 185) highlight sellers perceive customer value in terms of seller-controlled variables. These variables include aspects such as customers’ freedom of choices in consumption pattern. However, according to their analysis most customers do not appreciate the value of bundling since they only concentrate on what they want ignoring other services. Therefore, Wynn Las Vegas strategy of bundling fails to serve the intended purpose.
The other limitation that is associated with new customer value is undermined by the economic worth of a customer. This understanding requires the customer to translate value in monetary form. Thus, a customer thinks value in terms of a deal and therefore they fail to recognize addition services they did not pay for (Lusch & Vargo 2006, p.185).
This notion makes customers to perceive value as low cost. This analogy inhibits Wynn from offering wide range of services at high cost.
Finally, some customers perceive or only understand product value as value-in-use. This perception makes customers to see the product value in their own understanding. Such analogy makes customer only to value of the product in use rather than having the holistic worth of the products bundle in offer. Thus in this perspective customer utility is dependent on their experiences.
Delivering added Value in Wynn Las Vegas through Innovations
Innovation is defined as making things better to standards that are acceptable to markets, consumers, and governments. This may include products, ideas, services, and technologies. Innovation is different from invention in that it applies new notions or methods, whereas invention requires the creation of ideas or methods.
In the business world, innovation is used to stir up growth and create customer satisfaction. In Wynn Las Vegas, innovation has been one of the most important strategies used to deliver added value to their services.
In the casino branch, innovation has been applied in service delivery where the staff is always striving to meet the needs of the customer. After reporting in the lobby, a customer will be escorted to the tables and shown where other facilities are located. This is important for new visitors who might have a problem locating the facilities they want to access.
Besides the excellent service delivery, the casino was the first to introduce one ticket that can be used to access many facilities and services in the resort. This card offers the client a chance not only to save money but offers the convenience lacked in many establishments. In many establishments, clients are given many tickets for the services offered and losing one means they cannot access the service or facility.
Another innovation in the resort is offering different services and facilities to their customers. The casino has 1980 gaming machines, 162 table and poker games, betting points, restaurants and bars, golf course, shops, Olympic size swimming pool and a hotel with 2716 room.
This offers a customer the chance to have a holiday and not visit other places as they search for facilities or services during their stay. All these facilities have been designed to meet the standards expected by clients. Value addition can be seen in this innovative strategies such as, a customer has a variety of games and slotting machines they can engage in all provided in the same place.
The management of the resort have also been innovative in their marketing strategies. Customers are given coupons, which they can access through the internet and redeem in the establishment. Value addition in this instance can be seen when customers enjoy services and products offered by the establishment at subsidized prices.
Innovation has also been applied in offering customers products that are classy and meet very high standards. This can be seen in products such as the golf course and the Olympic size swimming pool. Value addition in this case is seen when the customers get to experience and use world-class products, which they cannot find anywhere else.
Delivering added Value in Wynn Las Vegas through Products
Philip Kotler states that marketing should be a “’social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others” (Cunningham, Kotler & Turner, 2001). According to him, products are a means to an end where the end is satisfaction of the clients’ needs or wants.
Customers or clients will choose to buy a product and will base their choice on their perceived value of it. A customer will be satisfied if the value of the product is the same or is more than the initial perception (value addition). According to Kotler there are five levels of a product. The first level is core benefit; this is explained as the need or want, which is satisfied by using the product or service.
The second level is the generic product, which is the version of the product that has the attributes that are needed for it to function. The third level is the expected product, which is the attributes or characteristics that are expected by customers when they buy the product.
Augmented product is the third product level and is defined as the inclusion of additional features (value addition) which may include benefits, attributes or after sale services that will serve to make the product stand out from the rest.
The fifth and final level is the potential product, which is defined as the augmentations and changes that the product can undergo. Researchers note that competition will usually take place at the augmented product level more than the other levels.
According to Levitt, “New competition is not between what companies produce in their factories, but between what they add to their factory output in the form of packaging, services, advertising, customer advice, financing, delivery arrangements, warehousing, and other things that people value” (Kotler, 2011).
Companies and organizations offer product range to their customers to increase their sales as well as offer value addition. Product mix refers to the number of service or product lines that are offered to the customer by the company. The range of the products or services may be expanded for various tactical uses.
This may be to counter competition or cater for seasonal fluctuations. At times, the company may reposition a product or services in such a way it is more appealing to new groups of clients or customers. Wynn Las Vegas provides a variety of services in the resort, which includes a casino, golf course, swimming pool, restaurants and many more. All these are structured and designed to offer maximum comfort to the customer (Belohlavek 2008).
Wynn Las Vegas uses several methods to add value to their customers. The main criterion that is used to meet the intrinsic customer needs is through provision of additional services. The firm offers additional services through bundling the products offered the customers.
In the resort, a customer has access to most of the facilities, which include shopping, dining and gambling. All these facilities allow a customer to indulge in various activities without necessarily paying extra cash. This makes it convenient for the customer because they do not have to go to other places to access different services and facilities.
Jones and Hill (2009, p. 316) describes product bundling as a basis for product differentiation that fends of competitors pursuit of matching organization performances.
Wynn Las Vegas has differentiated its services making them different from those of their competitors. The rooms are furnished with the best furniture available and this does not come at an extra cost. Customer can enjoy these facilities without having to pay high rates and thus give them the opportunity to spend the money on other things in the establishment.
The resort has also been fitted with some of the latest technologies and gadgets and this goes a long way in making the customer experience memorable. The resort has the largest distribution of HDTV as well as the largest Voice over IP technology in the hotel industry. This innovation venture not only meets the needs of the existing customers but its reputation attracts more customers to the facility.
The casino in the resort was the first to combine both the accommodation key and the frequent-player key. This distinguishes the place from the rest, and customers can enjoy all the services offered by the establishment easily without having to go to a lot of trouble. On the competitive ground, Wynn Las Vegas leads the way by offering hyper-services anchored on customer value addition (Enz 2009, p. 167)
Apart from indoors recreational facilities that include nightclubs, restaurants, bars and art gallery the resort provides outdoor recreational services. These facilities include an expansive golf course where clients can go and experience an excellent golfing session. Another attraction in this establishment is the Lake of Dreams.
Customers can also relax in the Olympic size swimming pool, while tennis lovers can play in the various courts in the resort. All this services and locations are bundled together and charged on one card that can be bought at a subsidized price. This makes it not only economical, but it allows the client (customer) to explore most places in the resort.
In offering value addition to its customers, Wynn Las Vegas has partnered with other organizations. The resort was the first to incorporate a car dealership in a casino. The partnership with Ferrari and Maserati has seen customers getting the opportunity to shop for a car while enjoying their stay in the casino. For customers this is the only place in the large Las Vegas metropolitan area as well as the whole of North America that has a certified Ferrari store.
In order to fortify its market placement or position, Wynn Las Vegas needs to improve on some areas to ensure that other players in the sector do not threaten its market position. The following recommendations are offered based on finding and analysis in this report.
The casino should consider offering free trial services to its customers. Once the firm generates new product or adds a new item to its brand, it can allow its customers to use them without surrendering their credit cards details. In its effort to deliver added value to its customers, Wynn Las Vegas should consider offering a long guarantee of membership to its members.
The extension of membership means that clients are more motivated to invest their money in the casino since they will be there for a long time. In addition, this would mean that the organization would manage to lock in their customer from visiting competitors. For the customer it would mean that they have access to the facilities offered by the establishment at a fair price.
Finally, it is recommendable that the management starts to develop customer evaluation mechanisms and feedback systems. Such mechanisms or systems will help the organization to monitor customer trends. Baker and Hart (2007, p. 405) identifies customer satisfaction as the epicenter.
They further assert that customer data allow the management to determine the extent of performance both on volumes of product sales as well as the rate at which new clients are received. Generally, most managers use customer data to develop new product brands (Craven, 2002, p. 138).
However, an expansion of the scope should not only facilitate acquisition of wide range of information. The metric scale should allow information to be assessed against performance indicators of the firm. Nevertheless, achieving a productive balance not only affords customer understanding but also foster fiscal efficiency (Baker & Hart, 2007, p. 406).
Once trends and changing perceptions are identified, then the organizations will always be able to respond to customer needs appropriately. On the other hand, a functional feedback system means that customers are kept up to date.
Many marketers have failed to pin point the various advantages that are associated with customer satisfaction. Stone and Ron (2007, p. 121) declared the death of customer relationship management that advocates for value addition.
However, from the outcomes at Wynn Lass Vegas, it is evident that customer value addition plays an integral role in creation of a business empire. It is evident that most managers are coy of investing heavily in customer value addition simply because they are dissuaded by fear.
All business endeavors are steered by determination to confront risk and hurdles that characterizes any business endeavors (Buttle, 1997, p. 69). As is the case with Wynn Lass Vegas, the management has reaped the benefits of investing in formidable customer service delivery and delivering added value to the customers.
For an organization or company to succeed, the most important thing to keep in mind is customer satisfaction. Wynn Las Vegas has been successful by applying various marketing mix approaches. It bundles its products and services in a way that not only increases the sales, but also helps in adding value.
Customers are treated with the utmost respect and in Wynn Las Vegas; customer satisfaction is the main goal. Companies and organization should emulate the resort and focus on adding value to the services or products.
As the need to increase sales increases, firms and organizations are pressed to come up with innovative ways of attracting and maintaining customers. The key issue or challenge is how to maintain good customer relationship. Wynn Las Vegas has achieved a milestone in good customer relation by ensuring all customers receive value for their money.
The continuous investment in value addition has made the casino one of the most successful organizations in the world. However, maintaining value addition has been a challenging overture for the firm. The challenge for the organization has been how to integrate customer needs in the strategic plan of the firm. Although the future of Wynn Las Vegas looks bright, there are a number of issues worthy looking into to guarantee best results in the future.
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