Lessons from Successful New Product/Service … Toto had 4D, 5D, 6D, Lotto 6/42, 6/49 and 6/52...

APLA 2012, Sydney 1

Game Innovation

Presented by

Barry Lee

Senior Manager – Business Solutions Magnum Corporation Sdn Bhd

Malaysia

APLA 2012, Sydney 2

Game Innovation

Contents

1. Lottery Landscape in Malaysia

2. The most popular game - 4D

3. Why Innovate? Why New Games?

4. Game Innovation – Magnum’s Experience

5. Lessons Learnt

APLA 2012, Sydney 3

Lottery Landscape in Malaysia

Highly Regulated

Environment

Regulatory & Religious Constraints

No Sales Promotions or Advertisements

Strictly Land-Based. Online Prohibited

Selling conducted in Dedicated Retailer Outlets Only Can’t operate in Shopping Malls, Transport Hubs, Newsstands etc

Outlets must not be within sight of Places of Worship, Schools etc

APLA 2012, Sydney 4


3 National Lotteries

APLA 2012, Sydney 5


33% are Non-Muslims

54% are of Legal Playing Age

Addressable Target: Approx. 5 million+ Players

Population of 29 million

APLA 2012, Sydney 6


Numbers games 3D, 4D, 5D and 6D

Lotto games 6/42, 6/49 and 6/52

Passive game Big Sweep (7D plus Powerball)

Types of Games

Available Before Sept 2009

APLA 2012, Sydney 7


Sports Toto had 4D, 5D, 6D, Lotto 6/42, 6/49 and 6/52

Damacai had 3D, 4D and Big Sweep

Magnum had only 4D

Games offered by

the 3 Lotteries Before Sept 2009

A game all 3 offer!

APLA 2012, Sydney 8


Total Revenues from all Games 9 Billion

Revenue from 4D alone 7 Billion

Total

Lottery Revenues from 3 Lotteries

4D

Others

APLA 2012, Sydney 9

The Most Popular Game – 4D

Mystique surrounding Numbers

Meanings in 4D Numbers!

Customers have their own favourites

Why is 4D so popular?

As a result,

They fear missing out if they don’t buy!

APLA 2012, Sydney 10


Similar to Pick 4 game

1. Picks a 4-digit number from

0000 to 9999, e.g. 6652,

1234, 0070, 0120 etc.

2. Spend minimum $1 for one

game.

3. You win if the 4-digit number

picked matches one of the 23

4-digit numbers drawn.

How to Play?



Types of Plays and Prizes

Ways of Example 1st Prize 2nd Prize 3rd Prize Special Consolation

Plays Pays Pays Pays Prize Prize

Pays Pays

Straight 1234 $2,500 $1,000 $500 $180 $60

Match 4 numbers in exact order

4-Way Box 1112 $625 $250 $125 $45 $15

Match 4 numbers, of which 3 are the same, in any order

6-Way Box 1122 $417 $167 $84 $30 $10Match 4 numbers that consist of two pairs of identical numbers in any order

12-Way Box 1123 $209 $84 $42 $15 $5

Match 4 numbers, of which 2 are the same, in any order

24-Way Box 1234 $105 $42 $21 $8 $3

Match 4 numbers in any order

Straight

Boxed

Pick 4


Why Innovate? Why New Games?

Increased Competition

Changing Demographics

Changing Player Preferences

Why Innovate? Why New

Games?

Lotteries worldwide are facing the following challenges:


Why Innovate? Why New Games?

Why new games?

We had only one game while competitor had six!

Why innovate?

To regain market leadership, principally from the illegal operators!

Why Innovate?

Why New Games?

In Magnum’s case, apart from challenges just mentioned,


Game Innovation - Magnum’s Experience



Appeal to Existing Players

Appeal to New Players and

Broader Demographics

Has Life-Changing Appeal

Illegal Operators cannot Imitate

What Game to Launch?

A game that:



Our New Copyrighted Product,

first of its kind in the world,

was launched on

23 September 2009



Important Features of the Game

Taking inflation into consideration, priced boldly at $2 instead $1!

So that jackpots can grow quickly!

More prizes and easier to win! So more players can experience winning!

Exciting Cascading feature! Making winning millions very easy indeed!


Game Innovation – Magnum’s Experience

1. Pick two instead of one 4-digit

numbers from 0000 to 9999,

e.g. 1019 0120 or 6652 4509.

2. Spend min $2 for one game.

3. You win Jackpot 1 if the two 4-

digit numbers picked are drawn

as the winning numbers of any

two of the three top prizes.

How To Play?



1. Share the Same Draw Results

used for 4D game

2. Capitalizing on Popularity of 4D

game

3. Positioned as Turbo-Charged

Version of 4D game

Draw Results of 4D Jackpot



Standard Bet

Pick two 4D Numbers

2 Ways of Plays

System Bet

Pick three or more 4D Numbers

For example:

System 7 has

21 pairs of 4D Numbers

System 10 has

45 pairs of 4D Numbers



Prizes for 4D Jackpot

5 Divisions of Prizes to be Won

Min $10 million

when there is a

Cascade!

Division Prize Odds

1 Jackpot 1, Min $2 million 16.67mil

2 Jackpot 2, Min $100,000 1.67mil

3 $168 1,667

4 $68 500

5 $28 500



Effects of Cascade

Cap Jackpot 1 at $30mil

Responsible Gaming!

Jackpot 2 > $10 mil!

Easy to win $millions!

Buying Frenzy!!!

What is Cascade?

In a Responsible Way!



Magnum's 4D Jackpot vs Competitor's 3 Lotto Games

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

23-S

ep-0

9

28-N

ov-09

31-J

an-1

0

31-M

ar-1

0

1-Ju

n-10

1-Aug-1

0

5-Oct

-10

5-Dec

-10

6-Feb

-11

6-Apr-

11

8-Ju

n-11

13-A

ug-11

15-O

ct-1

1

14-D

ec-1

1

12-F

eb-1

2

14-A

pr-12

16-J

un-12

18-A

ug-12

Draw Date

Dra

w S

ale

s (

RM

Mil

)

Lotto 6/58

Lotto 6/55

Lotto 6/52

Lotto 6/49

Lotto 6/42

Magnum's 4D Jackpot

4D Jackpot outperforms competitor’s

3 Lotto games combined!



Performance of 4D Jackpot

Immediate Market Acceptance

Well Received by Existing Customers

500mil Sales in 1st Full Year of Operation

Appeal to Broader Demographic

Attracted New Customers

Attracted Ladies, Gen-X and Gen-Y

Increased Revenue

Increased No. of Customers

Increased Overall Sales

Sports Toto Launched The Same Game on 11 Jun 2011

Enjoyed the same level of success

Damacai also launched The Same Game on 23 Nov 2012


Game Innovation – Lessons Learnt

Analyze Your Strengths & Weaknesses Leader in 4D but lack Jackpot Game

Know Your Customers Customers prefer 4D but also attracted to Jackpot

Satisfy Customer Need Give them 4D with Jackpot

What Did We Learn?


Game Innovation

Thank You

Terima Kasih

谢谢 Nandri



Examples:

9409 7041

9409 2935

7041 2935

Win Jackpot 1

Odds: 1 in 16.67mil

How to Win Division 1 or Jackpot 1?



Examples:

9409 2128

9409 5657

9540 7041

Win Jackpot 2

Odds: 1 in 1.67mil

How to Win Division 2 or Jackpot 2?



Examples:

9409 0000

1111 9409

7041 9999

Win $168

Odds: 1 in 1,667

How to Win Division 3?



Examples:

2128 0000

1111 9540

5657 9876

Win $68

Odds: 1 in 500




Examples:

6038 0000

1111 1931

2257 9999

Win $28

Odds: 1 in 500








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Lessons from Successful New Product/Service … Toto had 4D, 5D, 6D, Lotto 6/42, 6/49 and 6/52...

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