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1 NY Lottery Instant Cash Games (ICGs) Nittany Marketing Consulting Bela Florenthal Kirsten...

Date post:22-Dec-2015
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  • Slide 1
  • 1 NY Lottery Instant Cash Games (ICGs) Nittany Marketing Consulting Bela Florenthal Kirsten Grasshoff Lisa Laguna
  • Slide 2
  • 2 NY Lottery ~ ICGs Industry Analysis Organizational Assessment Marketing Engineering Analysis Recommendations Conclusions
  • Slide 3
  • 3 NY Lottery ~ ICGs While online lottery sales are decreasing nationwide, instant game sales are increasing dramatically.
  • Slide 4
  • 4 NY Lottery ~ ICGs Industry Analysis Organizational Assessment Marketing Engineering Analysis Recommendations Conclusions
  • Slide 5
  • 5 Interesting Lottery Facts ICGs were the game of choice in 1999 (over Lotto, Daily Numbers, Keno). ICGs averaged $78 per capita play in lottery states and $21 in non-lottery states in 1998. 20/80 rule ($1,619 or more per capita) Research is radically mixed as to whether income and education are positively or negatively correlated with lottery play
  • Slide 6
  • 6 NY Lottery ~ ICGs Industry Analysis Organizational Assessment Marketing Engineering Analysis Recommendations Conclusions
  • Slide 7
  • 7 SWOT Analysis Strengths NY Lottery Brand Name Large/strong distribution network Large portfolio of games Strong awareness of ICGs Weaknesses Lack of marketing research Limited Product Offering: Lack multi-state/multi-channel games Lack active games No strategic advertising methodology Weak Website promotion Opportunities Expand product offerings: Multi-channel gaming Internet and email promotions Multi-state games (PowerBall, BigGame) Expand reach: NJ commuters Tourists Threats Multi-state games Online gambling Government intervention in advertising Bad PR surrounding LOT scholarship program
  • Slide 8
  • 8 Marketing Mix Product What type of ICG should we offer? - Passive (traditional) - Active (probability) - Multi-state - Multi-channel Place Where should we sell the product? - additional research is needed Price What type price/payoffs should we offer? - $1 - $1 plus options to upgrade - Multi-dollar? Promotion What channels should we utilize? - additional research is needed What attributes should we emphasize? fun of gaming risk and adventure what you could do with the money
  • Slide 9
  • 9 NY Lottery ~ ICGs Industry Analysis Organizational Assessment Marketing Engineering Analysis Recommendations Conclusions
  • Slide 10
  • 10 Segmentation & Targeting Analysis: Segmentation Attitude towards playing ICG Psychographics Aspirations General Interests Targeting Most profitable segments
  • Slide 11
  • 11 Data Analysis Factor analysis Regression analysis Answer the following questions: Which segments should NY Lottery target A layered understanding of key segments aspirations, opinions and interests
  • Slide 12
  • 12 Predicted Model purchaseattitudeaspirationspsychographics general interests
  • Slide 13
  • 13 Model ~ Attitude Purchase Relationship purchase ICG lovers aspirationspsycho general interests Anti-Gaming + - Lo-Risk Gamblers Hi-Risk Gamblers ? ? Attitudes
  • Slide 14
  • 14 Attitude Factors 1 ~ ICG Lovers More fun then other lottery games Playing is exciting Entertainment for your money Will win one day Never get bored 2 ~ Anti-Gaming Throw money away Silly game Immoral 3 ~ Low Risk Gamblers People play for risk Chance to change life Special trip to store Selection part of fun Makes day better 4 ~ Hi Risk Gamblers Everyone has the same chance to win Low risk way of gaming Cant win enough =.73 =.69 =.48
  • Slide 15
  • 15 Model ~ Aspiration Attitude Relationship purchase Lo-Risk Gamblers Luxury DesiresICG lovers Attitudes Family Needs Aspirations
  • Slide 16
  • 16 Aspiration Factors 1 ~ Luxury Desires Own dream car Own a large house Own a yacht Star in a movie Spend an evening with a celebrity 2 ~ Family Needs Put children through college Ensure financial security Eliminate debt Spend time with family 3 ~ Self Needs To retire early To own a home To travel 4 ~ Intrinsic Motivation To go back to school Work for charity Pursue a hobby full time =.83 =.56 =.40 =.51
  • Slide 17
  • 17 Psychographic, General Interests & Aspiration Self-Motivated Middle American Success Oriented Discontent Psychographics Traditional Outdoor General Interests Luxury Desires Family Needs Aspirations Purchase Lo- Risk ICG lovers Attitudes Sophisticated
  • Slide 18
  • 18 Psychographic Factors 1 ~ Discontent Cant get ahead financially Want to change my life My life is out of control Money should be spent Live life in the moment 2 ~ Success Oriented I hate to lose Like to see results immediately Like to be considered a leader Impulse buyer Get bored easily 3 ~ Self - Motivated Things will go well in the future I like to do challenging things I do lots of interesting things I like to take risks I want to understand my inner-self 4 ~ Middle Americans My family is my life It is important to be patriotic Check and compare prices Prefer a quite secure life =.66 =.57 =.47 =.64
  • Slide 19
  • 19 General Interest Factors 1 ~ At Home Gardening Cooking Home Improvement Knitting & Sewing 2 ~ Outdoor Playing Sports Boating or Sailing Hiking and Camping Hunting and Fishing Exercise and Health 3 ~ Sophisticated Travel Reading Theater Visit Museums 4 ~ Traditional Collecting coins and stamps Playing board and word games Reading horoscope Cars =.63 =.69 =.68 =.66
  • Slide 20
  • 20 Analysis Summary Target Segments =Hard Working New Yorkers w/ Big Dreams They want financial security, more for their kids and time with the family They dream about living big, big cars, big homes, big boats They play for the fun of it and in hopes of fulfilling these dreams
  • Slide 21
  • 21 NY Lottery ~ ICGs Industry Analysis Organizational Assessment Marketing Engineering Analysis Recommendations Conclusions
  • Slide 22
  • 22 Develop a Marketing Plan product & price People play for the fun They enjoy imagining the dream becoming a reality They enjoy selecting among the products They are not heavy gamblers They do want to see results and do want to win Offer a variety of games, Frequently change offering Offer very small chances of winning big Offer big chances of winning small Multiple chance tickets Price of ticket should range from $1 to $3
  • Slide 23
  • 23 Develop an Advertising Plan Understanding from Factor and Regression Analysis Ad-Cad Recommendations Input
  • Slide 24
  • 24 AdCad Results Benefit Enjoyment Benefit presentation Extremely positive Information Strategy One sided message Format Fantasy, exaggeration or surrealism Emotion in Ad Positive emotions Strong emotions Presentation technique Close up of brand Large ad Color illustration Imagery
  • Slide 25
  • 25 NY LOTTERY INSTANT CASH GAMES, IMAGINE!
  • Slide 26
  • 26 Insert your family here
  • Slide 27
  • 27 A CHANCE FOR MORE Winning big with NY ICG changed our lives. We both still work but now we have enough money put away that Danny can go to any college he wants. And enough time for family vacations. Life is good.
  • Slide 28
  • 28 NY Lottery ~ ICGs Industry Analysis Organizational Assessment Marketing Engineering Analysis Recommendations Conclusions
  • Slide 29
  • 29 Two key groups should be targeted These groups are similar in terms of aspirations, psychographics and general interests These two groups can be reached via a similar marketing campaign Needs to be implemented in accord with legal and moral standards Further research needed to address Optimal media channels Optimal distribution channels Extent of product variety Conclusions
  • Slide 30
  • 30 Questions? Thank You
  • Slide 31
  • 31 Model ~ Aspiration Attitude Relationship purchase ICG lovers Luxury DesiresLo-Risk Attitudes Family Needs Aspirations Self-Motivated Middle American Success Oriented Discontent Psychographics
  • Slide 32
  • 32 General Interest, Psychographic Relationship Self-Motivated Middle American Success Oriented Psychographics Sophisticated Traditional Outdoor At Home General Interests Family Needs
  • Slide 33
  • 33 Lottery Financial Summary 20001999 Montana5,840,9857,177,635 NY (000)$1,365,143$1,413,329
  • Slide 34
  • 34 Lottery Trends Blurring of the two types of traditional games into new breeds Multi-state/multi-channel games (PowerBall) Probability games Games w/ options to upgrade Americans are looking for digital lottery entertainment
  • Slide 35
  • 35 Industry Promotion Trends Design Motivate non-players to play Encourage players to play more often/more types of games Encourage lapsed players to start playing again Influence public opinion about lotteries in general Channels Television Radio Billboards Point-of-sale Internet Themes Size-of-the-prize (tied for most common) Fun and excitement of playing (tied for most commonly used) Winner awareness
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