BuSiNeSS PlAN - California Lottery

More documents

Recommendations

Info

4.5 Retailer Network AssessmentThe backbone of the CSL is the strength of its retailer network. With over19,000 retailers statewide, the CSL has an unparalleled distribution andmarketing channel with respect to gaming alternatives in California.However, compared to the lottery industry, the CSL has fewer retailersper capita than the ten most populous states.Fig. 5.14 Population per RetailerFigureFiscal4.14Year–2005–06PopulationComparisonperof TenRetailerMost Populous StatesFiscal Year 2005–06 Comparison: Ten Most Populous States2,0001,5001,0005000%CA IL* PA FL TX NJ OH GA NY MI* Previous fiscal year dataSource: La Fleur’s 2007 World Lottery AlmanacFigure 4.14 shows that California appears to have a shortage of retailersbecause the population per retailer is the highest among the mostpopulous lottery states. However, as shown by Figure 4.15, sales per retaileris a significant factor in determining the optimum number of retailers.Retailer of the Year, DonutsGalore, is recognized forits outstanding performanceby the CSL. Left to Right:Joan Borucki, Director of theCSL presents the 2006 Retailerof the Year Award to ownersLang and Chun Sor. DaughterMiranda and son John wereon hand for the celebrationwith Tricia Metzger,Lottery Sales Director.– 56 –California Lottery 2007–2010 Business Plan
Fig. 5.15 Sales per RetailerFigure 4.15 – Sales per RetailerFiscal Year 2005–06 Comparison of Ten Most Populous StatesFiscal Year 2005–06 Comparison of Ten Most Populous States$400,000$350,000$300,000$250,000$200,000$150,000$100,000$50,000$0NY NJ GA PA FL OH IL* TX MI CA* Previous fiscal year dataSource: La Fleur’s 2007 World Lottery AlmanacAlthough California has fewer retailers per thousand of population thaneach of the other large states, it also has the lowest sales per retailer.While it may appear that sales may be increased simply by increasingthe number of retailers, this would be effective only if demand for lotteryproducts was sufficient to justify additional outlets. However, the datapresented in figures 4.14 and 4.15 suggest that demand for lottery productsin California is much lower than in the other states. Accordingly, additionalretail outlets may simply cannibalize existing sales rather than increaseoverall sales. The CSL has conducted several studies to determine theimpact of higher retailer saturation levels on net sales and profits, withinconclusive results. The CSL plans to continue studying this issue andconducting further tests. However, it is clear that the CSL must activelypursue trade styles that reflect consumer shopping trends.4.6 Efforts to Improvethe Business ModelThe CSL has been locked into the same basic business model sinceits inception. A major limitation with this model is that, in the absence ofself-service equipment, selling lottery products is labor intensive, and manyretailers and retail chains question the value of carrying lottery products.One of the most taxing aspects of being a lottery retailer is the requirementto carry and market 20 or more different Scratchers games at any giventime. Currently, there are no automated systems to track and documentCalifornia Lottery 2007–2010 Business Plan – 57 –
Page 3:
CommissionersJOHN MASS, of Los Ange
Page 6 and 7:
Introduction
Page 8 and 9:
IntroductionIn order to fulfill the
Page 10:
focus on huge jackpots and more foc
Page 14 and 15:
Figure 1.2 - 2004-05 K-12 Percent o
Page 16 and 17: 1.1% General Operating ExpensesGene
Page 18 and 19: SupermarketsAlthough supermarkets h
Page 20 and 21: handles all Spanish language advert
Page 22 and 23: Fantasy 5Value Proposition: The bet
Page 24 and 25: 1.6 Organizational Structureof the
Page 26 and 27: ITSD consists of four offices and t
Page 30 and 31: Integrity,Security,Honesty,and Fair
Page 32: The CSL not only employsinternal au
Page 35 and 36: Since its inception, the CSL has wo
Page 37 and 38: Last year, the California Problem G
Page 39 and 40: Marketanalysis
Page 41 and 42: EthnicityThe following charts show
Page 43 and 44: GenderThe household incomeof past m
Page 45 and 46: 3.2 Consumer ProductSales Compariso
Page 47 and 48: Technology TrendsAll of these techn
Page 49 and 50: are large, to maintain sales in lot
Page 51 and 52: IntroductionIn FY 05/06, the CSL re
Page 53 and 54: Figure 4.2 is a list of some of the
Page 55 and 56: Figure 4.4 - Overall PRIZE PAYOUTS
Page 57 and 58: Figure 4.5 shows that in terms of p
Page 59 and 60: Raffle GamesRaffle-style games are
Page 61 and 62: Pursuant to section 8880.64 of the
Page 63 and 64: Fig. 5.12 CSL Scratchers Game Growt
Page 65: As shown in Figure 5.13, the lotter
Page 69 and 70: etailers with special “Check-a-Ti
Page 71 and 72: Gaming System ComplexityThe CSL’s
Page 73 and 74: Fig. 5.19 Budgeted Per Capita Adver
Page 75 and 76: There is an opportunity to reverse
Page 77: Public Relations and OutreachOur fr
Page 80 and 81: Ticket Dispenser RestrictionsThe re
Page 82 and 83: IntroductionA careful analysis of o
Page 84 and 85: Unfortunately, increasing jackpot s
Page 86 and 87: Key StrategicInitiatives
Page 88 and 89: Shift the Jackpot ParadigmOur strat
Page 90 and 91: 12. Recruit Non-traditional Retaile
Page 92: www.calottery.com600 North 10th Str
show all

BuSiNeSS PlAN - California Lottery

Create successful ePaper yourself

Delete template?

Save as template?