BuSiNeSS PlAN - California Lottery

3.1 Customer Demographicsand Playership TrendsOver the years, the CSL has used various tools to capture customerdemographics including an ongoing player tracking study and variouscommissioned studies. This data helps us identify our customer segments,their purchasing habits, the effectiveness of our marketing, and overallperformance. Most importantly, ongoing demographic research helpsus identify consumer trends, tailor our product development efforts toparallel these trends, evaluate the effectiveness of our distribution channels,and respond to the needs of our customers. The demographic databelow is from a study conducted by professors from the University ofCalifornia, Los Angeles that was commissioned by the CSL. While thisdata is currently in draft form and being reviewed for accuracy, nomaterial changes are anticipated.The majority of California’sadult population is between25 and 54 years of age,while the majority of lotterysales are to players between35 and 64 years of age.AgeFigure 3.1 – Total Sales by Age Group vs.California3.1 TotalPopulationSales by Age Groupbyvs.AgeCaliforniaGroupPopulation by Age Group30%25%% of Adult Population% of Total Annual LotterySales by Age Group20%15%10%5%0%18–24 25–34 35–44 45–54AgePopulation Data Source: 2005 American Community Survey55–64 65–74 75+Figure 3.1 compares total Lottery sales by age group to California’s adultpopulation by age group. The majority of California’s adult population isbetween 25 and 54 years of age, while the majority of lottery sales areto players between 35 and 64 years of age. Our player base continuesto age and shrink every year. This creates a growing imperative to reachnew customer segments.California Lottery 2007–2010 Business Plan – 31 –