BuSiNeSS PlAN - California Lottery

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• When asked about their general perceptions of the CSL,31% of all educators had a negative view, while only 11% hada positive view. Even among past month players, only 38% hada positive view of the CSL, with 62% having either a neutralor negative view.• Only 8% of educators and school administrators believe the CSLis “making a difference” in the quality of education in California.Brand Image Evaluation FindingsIn today’s competitivemarketplace, consumersview a brand image asan integral part of theirpurchase decision.Companies continuallywork to differentiatethemselves and connectwith their customers inmeaningful ways that buildloyalty and understanding.A company’s brand image exists only in the minds of consumers and isdefined as what a consumer thinks and feels about the company. Brandimage is developed through the impressions made by consumers’ encounterswith our name, logo, marketing messages, and everything elsethat consumers see and hear about our business. In today’s competitivemarketplace, consumers view a brand image as an integral part of theirpurchase decision. Companies continually work to differentiate themselvesand connect with their customers in meaningful ways that buildloyalty and understanding.In January 2007, the CSL requested its marketing agency, BBDO West,to conduct a brand image audit to determine the state of our brandamongst Californians. The findings parallel the Positioning ResearchStudy by Crestwood Associates discussed above. The followingsummarizes the findings of the brand image audit.Umbrella BrandThe general public either feels nothing about the CSL, or associates it witheither a big government bureaucracy or a big, profit-driven business.In general, the public does not have a good understanding of the benefitsof the Lottery, where the money goes or what the money is being used for.There is a vague awareness of our mandate to provide funding for education;however, there is also a lot of skepticism as to whether this mandateis met sufficiently.Educators expressed negative feelings about the CSL because, eventhough they work within the education community, they do not knowwhere the money goes or what it is being used for.CSL employees are passionate about the CSL’s mission but in general,are discontent with the environment. Many employees feel that theirwork is not appreciated and their input is not considered. There is alsoa sense of apathy or lack of faith in the CSL’s vision.Retailers have a positive perception of the CSL through strong relationshipswith our sales force and the contributions of CSL’s games to their bottomline. However, they agree that there is inconsistency with CSL messaging.– 64 –California Lottery 2007–2010 Business Plan
There is an opportunity to reverse the negative image of the CSL brandand focus on demystifying the operations and purpose of the CSL.Besides specific tactics, a clearly defined positioning strategy is neededto invigorate the brand, create a rallying cry for employees and stakeholdersand create synergy across the portfolio.In terms of consumer brand awareness by game, the results aresomewhat mixed.SuperLOTTO PlusSuperLOTTO Plus is perceived as “California’s game.” It has strongbrand awareness and this is the reason why many consumers referto the CSL as “the Lotto.” Consumers enjoy the simplicity and familiarityof this game. There is an opportunity to leverage the loyalty, provenance,and affinity of this game.MEGA MillionsMEGA Millions is known as the big jackpot game amongst consumers.Unfortunately, it lacks a clear image and differentiation within the drawgame portfolio and there is a false belief that MEGA Millions revenueleaves the state, because it is a multi-state game. MEGA Millions isa relatively new game offering and does not have the brand equity orloyalty enjoyed by SuperLOTTO Plus.Fantasy 5, Daily 3, Daily Derby, and Hot SPOTFantasy 5, Daily 3, Daily Derby, and Hot SPOT continue to be nichegames with a small core following of frequent players. Fantasy 5 is seenas the game most similar to the original Lotto 6/49 game. Daily 3 andHot SPOT offer engaging play that is appealing to frequent players. Afternearly 10 years, Daily Derby is still seen as confusing and out of place.This information, when combined with the popularity of these typesof games in other states, shows there is an opportunity to expand theplayership of most of these games.ScratchersScratchers have the most compelling brand image of our product offerings.These games are seen as fun, interactive, and accessible. They providetremendous variety and instant gratification. Due to their popularity, thereis an opportunity to leverage Scratchers as a vehicle to increase playershipof games within the draw game portfolio.California Lottery 2007–2010 Business Plan – 65 –
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CommissionersJOHN MASS, of Los Ange
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Introduction
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IntroductionIn order to fulfill the
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focus on huge jackpots and more foc
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Figure 1.2 - 2004-05 K-12 Percent o
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1.1% General Operating ExpensesGene
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SupermarketsAlthough supermarkets h
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handles all Spanish language advert
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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 and 66: As shown in Figure 5.13, the lotter
Page 67 and 68: Fig. 5.15 Sales per RetailerFigure
Page 69 and 70: etailers with special “Check-a-Ti
Page 71 and 72: Gaming System ComplexityThe CSL’s
Page 73: Fig. 5.19 Budgeted Per Capita Adver
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
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