Casinos targeting the Hispanic market: language and strategy

¶ … strategy successful?

The sudden resurgence experienced by the Primm Valley Casino Resorts is based entirely on the recreation firm's response to natural market behavior. As its own executives reveal in the article by Medina (2011), it was only when they observed the rising popularity of the casino with a growing Hispanic population that the Casino decided to go all-in on a strategy of Latino courtship. By responding to natural market behavior rather than attempting to shoehorn the casino to fit expected demographic responses -- as had been done somewhat unsuccessfully with country music fans and retirees -- the casino town has seen a natural response of interest by this inherent target group.

This kind of responsiveness is surely at the base of the firm's success. Moreover, the change in strategy represents a departure from conventional logic in the industry. As the article by Medina reports, "People have always said things like, "That demographic doesn't gamble," said Jay Thiel, the vice president of casino operations, who has worked in the industry for more than 30 years. 'But we looked around one day and realized that that's who was here. We had no idea how wrong that idea was.'" (Medina, p. 1) By being among the first in the industry -- and particularly by functioning in the enormous geographical shadows created both by Las Vegas and the California Indian gaming communities -- Primm Valley has virtually cornered the Spanish speaking market for gaming and associated recreation.

(2) What 3 principles and ideas from the readings can you use to explain this success?

Market segmentation is first and foremost an explanation for the success currently being experienced by the casino chain in question. As noted here above, the casino chain has become the first in its region to employ tactics designed to capitalize on a very distinct and loyal demographic. Namely, the use of Spanish-language signage, table-game instructions and marketing materials has helped to direct the attention of the Hispanic community to the casino town. Additionally, offerings such as Spanish-speaking dealers, popular Latino concert musicians and a facility that generally embraces the cultural practices of the American Hispanic community all create a sense that this demographic has been made especially welcome. The result has been a highly successful reinvention of the resort as a destination for a specific market segment.

Another principle which applies to this case is that of influence. Here, it can be said that the casino has largely allowed its identity to be shaped by the influence of its target market. Where previously it had enjoyed incidental inroads into the Hispanic gaming community simply by virtue of geographical distribution, its determination to allow the local Hispanic culture to drive its orientation, image and identity has made the Primm Valley resort a relatively incomparable experience of hospitability and opportunity for the Hispanic community.

A third principle, reference group, highlights the importance of this strategy in light of broader demographic patterns. Most notably, the United States is experiencing a continued influx of Hispanic immigrants from a wide range of countries, cultures and customs. The result is a population that is collectively the fastest growing in the United States. This means that significant population clusters are increasingly likely to trend toward Spanish-speaking practices and consumption of Latin culture. It is to the credit of Primm Valley that is recognized these trends as having valid market value. As the influx of Hispanic immigrants continues, this marketing orientation is likely to serve Primm Valley with continued growth and success.

(3) What lessons about targeting a new market can you take away?

The Primm Valley Casino Resorts demonstrate the critical value of responding to patterns external to the firm itself. Such is to say that just as the recession and its prevailing patterns contributed to the casino's financial slide of the previous seasons, so too would an embrace of prevailing external patterns help to drive its resurgence. By responding to the growth in size and cultural influence of the selected target group rather than simply responding to conventional knowledge on gambling market targets, Primm Valley would not just position itself for a return to growth. It would simultaneously differentiate itself in an increasingly saturated market.