Place/Distribution Channel Strategy
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Place/Distribution Channel Strategy
For the first three years, Penn National Gaming looks to increase Fitzpatrick’s market share by attracting more customers with the American gaming culture. Therefore, we believe with the adoption of our subsidiary’s six casinos in Dublin will act as the first step into not only focusing on slot machines but providing our customers with the best in-house experience in Ireland. To reach our goal, we plan to task the marketing department with ensuring that in the first year of business, all the six casinos incorporate all the necessary in-house activities and resources that depict the American casino. This move will target to increase the growth of casino gaming and get ahead of the competitors in this market category. The next two years would then follow intensive and aggressive marketing of our casinos as an alternative to the vast online and shops market.
As of now, we find only €65 million in revenue per year raised from Casinos in Ireland. That is approximately 5.9% of the Irish gaming industry, and by introducing an American love for casinos, we look to increase this figure double digits within the first three years. However, such will not be possible and productive without a proper cost analysis. Since our distribution channel mainly focuses on in-house gambling, the cost of facilities (gaming products, tables, chairs, and cards, among others), amenities (especially entertainment and sanitation), and lodging will play a significant role in this cost. We will need all of them in our six Fitzpatrick existing casinos for a start, costing €6 million.
We believe our proposed plan is viable in that; first, we are not looking to go and start from scratch. Acquiring Fitzpatrick will eliminate all the costs and marketing hurdles that accompany a business starting from zero. We also chose to go with using their already existing resources but refurbish and renovate them to fit and give an expression of the American gaming culture. Since our casinos will also provide entertainment and hotel services, we aim that our pool of customers will come from there and too because some of them will be tourists. In our six in-house gaming centers, our employees will have a basic wage and a commission depending on the number of customers assisted and attracted to play. Therefore, most of our employee activity will be to guide all our customers into understanding and familiarizing themselves with the American no gaming.