BuSiNeSS PlAN - California Lottery

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Other Communications VehiclesBig SpinConsumers like the idea of being able to purchase a Big Spin Scratchersticket for an opportunity to win millions on The Big Spin TV show. TheBig Spin Scratchers game continues to be one of the CSL’s bestperforming Scratchers games. However, many consumers have to bereminded that there is still a TV show and their perceptions are drivenby past experiences rather than recent ones. The Big Spin Show lacksentertainment value and is seen as being reminiscent of a 1950s gameshow. The Big Spin Show enjoys wide recognition and provides a communicationvehicle that few businesses enjoy. There is an opportunityto contemporize the show and leverage it to reinforce a new brand image.Retailer NetworkThe CSL’s network of over 19,000 retailers is a powerful communicationschannel. Through their daily interactions with our customers, the CSL’sretailers are the face of the Lottery. Generally, the message conveyed toour retailers is disjointed. There is a sometimes overwhelming amount ofCSL materials sent to retailers, and some of these materials get outdatedbefore they are removed. There is also no continuity of message orconsistency of branding to connect the many point of sale materials weprovide to retailers, and each different lottery game is given a uniquepersonality that can confuse the overall brand image the CSL wouldlike to project.Fortunately, largely through the efforts of our sales representatives, theCSL enjoys a very good relationship with its retailers. This relationshipcan be leveraged to more effectively utilize our retailer network as a toolto communicate our brand image.WebsiteOur website will be keyto connecting with ourplayers and reachingnew player segmentsin the future.Our website receives 5 million visitors and 19 million page views everymonth. If the search term “lottery” is entered into the Google searchengine, the first result is the CSL website. However, the CSL’s website isgeared toward functionality, not marketing. It is functional and informative,but not engaging or interactive. Given the continuing growth of theInternet as an important tool to interact with consumers, it is imperativethat our website be redesigned as an integral part of our marketing andcommunications efforts. Our website will be a key to connecting withour players and reaching new player segments in the future.– 66 –California Lottery 2007–2010 Business Plan
Public Relations and OutreachOur fractured relationship with our beneficiary and lack of political supporthas led to sporadic and haphazard public relations and outreach efforts.California’s size and geographic and cultural diversity have also made itdifficult and costly to reach consumers and stakeholders.Future efforts must promote the fact that millions of people win everyyear (winner awareness) and let consumers know where lottery moneygoes (proceeds awareness). Consumers need to know that people regularlywin money playing the lottery. Otherwise, consumers will have fewerreasons to play. The CSL was created by the voters, and voters have theright to know where lottery money goes and how it is being used. At thesame time, the CSL has a responsibility to put the funding in context –it only accounts for less than 2% of the education budget in California.Future efforts must promotethe fact that millions of peoplewin every year (winnerawareness) and let consumersknow where lottery moneygoes (proceeds awareness).Winner awareness and proceeds awareness efforts should be focusedat the regional and local levels. Attempting to cover the entire state ofCalifornia has often proven to be inefficient and ineffective.4.10 Barriers to SuccessFractured Relationship with BeneficiaryWhen the CSL was first established by Proposition 37 in 1984, it waspitched as the solution to all of education’s needs. In reality, the LegislativeAnalyst estimated that the CSL would generate about $500 million peryear for public education. The CSL has actually contributed over a$1 billion to public education for each of the last six fiscal years.As a result of this somewhat controversial start, the CSL has never enjoyeda good relationship with its beneficiary. The CSL no longer widelycommunicates its contributions to public education. In the absence ofthese communications, the general public has no knowledge of how theCSL benefits the state and is left wondering why California has a lottery.This has been detrimental to our ability to grow our player base, introducenew products, and connect with our customers.Education interest groups have consistently opposed efforts to increaseprize payouts even though higher prize payouts would significantly increasecontributions to public education.California Lottery 2007–2010 Business Plan – 67 –
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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
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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 and 74: Fig. 5.19 Budgeted Per Capita Adver
Page 75: There is an opportunity to reverse
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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BuSiNeSS PlAN - California Lottery

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