The Success of Primm Valley Business Strategy Analysis

Medina (2011) highlights the case of a small-town Nevada casino that has successfully courted the Hispanic market, which tended to be ignored not only by Las Vegas but also by other similar casinos in the area. The article discusses some of the different tactics that the casino has used to build the market, and these tactics have tended to go well beyond employing Spanish-speaking dealers and using Spanish on signs. The companys targeting strategy began when it noticed that there were a lot of Hispanic people at its slot machines, and the casino then expanded on that idea, cultivating the market more comprehensively. One of the reasons why this targeting was so successful is that the target market is not only underserved by other competitors, but is also large. There are millions of Hispanics in the southwest, such that it could scarcely be considered to be a niche market. However, because this segment of the population had never been targeted directly by a casino, it was a niche market for the Nevada casino industry. Primm Valley had a history of targeting niche markets, but more were not as large as this one, nor were they as underserved. One of the key principles that plays into the success of the Primm Valley is segmentation. The company had experimented with psychographic segmentation before (country music fans, for example), and that helped them to segment this demographic. The managers noticed habits, for example using slot machines primarily, and were able to