presentation in pdf format

arcistanbul2012.com

presentation in pdf format

Plenary Session IThe Race for the digitallyempowered consumerAsian Racing Conference18 July 2012


Welcome on behalf of ARF ExcoOur first business session is about“Customers”a subject which has attracted a lot ofdiscussions in the last two ARCs


In the 32 nd ARC in Tokyo 2008


We raised the global awareness ofShrinkingcustomer base


Racing has to reachnew generationShrinkingcustomer base


Racing has toReach newShrinking generationcustomer baseNew Horizons forracing come fromunderstanding Customerand Customersegmentation


In the 33 rd ARC in Sydney


We discussed many ways to capturethe future customersBridging theGeneration Gap


Bridging theGeneration GapMarket segmentation& Strategies toreach new customers


MarketsegmentationBridging&theStrategiesGeneration Gapto reachnew customersRecruiting new fansfrom Generation Y & Z


How racing has performed since then ?Racing betting turnoverin general stays flat withdecrease in some countries


On the e-gaming world market, racingis also lagging behind in performanceHorseRacingFiguresMarket shareof horse racing40is only 5%35at US$1.61 bn3025201510501.551.110.73.653.241.940.831.695.023.882.311.191.895.694.62.741.362.413.131.512.656.62 7.435.21 5.83.531.612.898.07 9.1 9.85 11.14 10.94 11.782007 2008 2009 2010 2011E 2012EUS$bn $18.3 $22.5 $25.5 $29.5 $31.5 $34.07.996.22Sportsbetting Poker Casino Bingo Horse Racing/Other Gaming State LotteriesSource: H2 Gambling Capital


HorseRacingFiguresMarket shareof horse racingis only 5%40at35US$1.61 bn3025201510501.551.110.73.653.241.940.831.695.023.88From 2008 to 2012,other sports haveUS$3.71 bnincrease, butRacing onlyhas US$ 0.9 bn2.311.191.895.694.62.741.362.413.131.512.656.62 7.435.21 5.83.531.612.898.07 9.1 9.85 11.14 10.94 11.782007 2008 2009 2010 2011E 2012EUS$bn $18.3 $22.5 $25.5 $29.5 $31.5 $34.07.996.22Sportsbetting Poker Casino Bingo Horse Racing/Other Gaming State LotteriesSource: H2 Gambling Capital


HorseRacingFiguresMarket shareof horse racingis only 5%40at US$1.61 35bn3025201510501.551.110.73.653.24From 2008 to 2012,other sports haveUS$3.71 bnincrease, butRacing onlyhas US$ 0.9 bn1.940.831.695.023.882.311.191.895.694.62.741.362.41Other forms ofe-Gaming havealso clearlyout-performedracing3.131.512.656.62 7.435.21 5.83.531.612.898.07 9.1 9.85 11.14 10.94 11.782007 2008 2009 2010 2011E 2012EUS$bn $18.3 $22.5 $25.5 $29.5 $31.5 $34.07.996.22Sportsbetting Poker Casino Bingo Horse Racing/Other Gaming State LotteriesSource: H2 Gambling Capital


What are the reasons for this?• Firstly, our competitors have made betteruse of technology as an enabler to grow theircustomer base.• Secondly, besides the technology, ourcompetitors have a much betterunderstanding what the new customerswant, and have created more relevantcontent and a better experience for them.


What are the reasons for this?• Firstly, our competitors have made betteruse of technology as an enabler to grow theircustomer base.• Secondly, besides technology, ourcompetitors have a much betterunderstanding of what the new customerswant, and have created more relevantcontent and a better experience for them.


What has happened exactly in digitaltechnology?• In the last 2 years, we have seensignificant changes in digital platformswhich have influenced the expectationsof current customers.• When we want to connect to the newcustomer segment which is digitallyempowered, we have to fulfill hisneeds.


What has happened exactly in digitaltechnology?• In the last 2 years, we have seensignificant changes in digital platformswhich have influenced the expectationsof current customers.• When we want to connect to the newcustomer segment which is digitallyempowered, we have to fulfill theirneeds.


Surging internet accessWorldRegionsWORLD INTERNET USAGE AND POPULATION STATISTICSPopulation( 2011 Est.)December 31, 2011InternetUsersDec. 31,2000Internet UsersLatest DataPenetration(%Population)Growth2000-2011Users %of TableAfrica 1,037,524,058 4,514,400 139,875,242 13.5 % 2,988.4 % 6.2 %Asia 3,879,740,877 114,304,000 1,016,799,076 26.2 % 789.6 % 44.8 %Europe 816,426,346 105,096,093 500,723,686 61.3 % 376.4 % 22.1 %Middle East 216,258,843 3,284,800 77,020,995 35.6 % 2,244.8 % 3.4 %NorthAmericaLatinAmerica /Carib.Oceania /AustraliaWORLDTOTAL528%growthfrom 2000 -2011347,394,870 108,096,800 273,067,546 78.6 % 152.6 % 12.0 %597,283,165 18,068,919 235,819,740 39.5 % 1,205.1 % 10.4 %35,426,995 7,620,480 23,927,457 67.5 % 214.0 % 1.1 %6,930,055,154 360,985,492 2,267,233,742 32.7 % 528.1 % 100.0 %NOTES: (1) Internet Usage and World Population Statistics are for December 31, 2011. (2) CLICK oneach world region name for detailed regional usage information. (3) Demographic (Population)numbers are based on data from the US Census Bureau and local census agencies. (4) Internetusage information comes from data published by Nielsen Online, by the InternationalTelecommunications Union, by GfK, local Regulators and other reliable sources. (5) For definitions,disclaimers, and navigation help, please refer to the Site Surfing Guide. (6) Information in this site maybe cited, giving the due credit to www.internetworldstats.com. Copyright © 2001 - 2012, MiniwattsMarketing Group. All rights reserved worldwide.


Web DIY content experience will furtherincreaseWeb 1.0:• Web sites toprovideinformation tousers• Users are passiveWeb 2.0:• Users are active andconnecting to eachotherWeb 3.0:• Consumers createown content• Users are interactive


Rise of mobile devices70 millionunits ofAndroidsold in Q4 2011


Mobile is the future for all operatorsPaddy Power’s dot.comsportsbook – 38% wager inQ1 2012 comes from mobileWilliam Hilltargets 40% ofsportsbookrevenues frommobile by 2014


Mobile friendly apps become a priority30 billionApple AppsDownloaded


Rise of social media835 millionFacebookUsersin 2012 Q1


The next mega trend will be Gamification –More games will encroach our daily lives• These are great innovations thatare fun for consumers and alsoadd value to the businesses thatprovides them.


Our digitally-empoweredcustomers ask for :•Seamless connection, andintegrated across all devices•Excellence in terms of availablecontent and user experience•Effortless access to content andrecommendations, safely andsecurely.•Harmonisation of their digitallife, cross platformisation throughouttheir entire digital world


Will it be sufficient for racing to address all itschallenges by just embracing technologydevelopment?Recap of major challenges• Those interested are already in the game.• Non-racing customers, even those with gaming propensity, findno relevance in fixtures, programs and bet types.• Not appealing to potential major customer segments, e.g.young people, women, families and the middle class.• Lacks innovation in offering new value propositions.• Significant competition from both the growing gaming andentertainment industry.• One of the key reasons for racing’s slow response is thefragmentation in the racing clubs and wagering operatorswhich makes it difficult to create new customers experience.


Digital Technology provides a unique opportunityfor racing• In principle it can help us reconnect our“hundreds year old” game with today’scustomers; which means to reach out todifferent customer segments with differentneeds and experience expectation.


As it enables us to connect directly and establish aone-on-one relationship with customers


As it enables us to connect directly and establish aone-on-one relationship with customersBut technology is only an enablerand does not addressthe customer value proposition


To do this, we have to change our “Insideout” perspective to “Outside in” as anindustry to reach new customersLevel 1OrganisationInsideOut“We make,you take.”


Level 1OrganisationInsideOut“We make,you take.”Level 2OrganisationCustomerSegmentation“We knowyou andwhere youare and canuse that toencourageyou to buywhat we sell


Level 1OrganisationInsideOut“We make,you take.”Level 2OrganisationCustomerSegmentation“We knowyou andwhere youare and canuse that toencourageyou to buywhat we sellLevel 3OrganisationCustomerSolutions“You’vegot aneed, wecandeliver asolution.”


Level 1OrganisationLevel 2OrganisationLevel 3OrganisationLevel 4OrganisationInsideOut“We make,you take.”CustomerSegmentation“We knowyou andwhere youare and canuse that toencourageyou to buywhat we sellCustomerSolutions“You’vegot aneed, wecandeliver asolution.”Outside-in“Yourproblemsare ourproblems,today andtomorrow.”


Based on customer research we havedone in the Hong Kong Jockey Club• We know we have to create relevancy by extendingracing as a key lifestyle and leisure activity, andpositioning racing not only as a gaming activity.• We have to create an experience which is easier forthem to “Connect and understand racing” than ourtraditional way in presenting racing.• We have to make it easier to understand racing,easier for customer to access our information, andeasier to play, without compromising theattractiveness of racing as a mind game, and not agame of chance.


Based on customer research we havedone in the Hong Kong Jockey Club• We know we have to create relevancy by extendingracing as a key lifestyle and leisure activity inpositioning racing not only as a gaming activity.• We have to create an experience which is easier forthem to “Connect and understand racing” than ourtraditional way in presenting racing.• We have to make it easier to understand racing,easier for customer to access our information, andeasier to play, without compromising theattractiveness of racing as a mind game, and not agame of chance.


Based on customer research we havedone in the Hong Kong Jockey Club• We know we have to create relevancy by extendingracing as a key lifestyle and leisure activity inpositioning racing not only as a gaming activity.• We have to create an experience which is easier forthem to “Connect and understand racing” than ourtraditional way in presenting racing.• We have to make it easier to understand racing,easier for customer to access our information, andeasier to play; without compromising theattractiveness of racing as a mind game and not agame of chance.


In conclusionWe have to understand the behaviorand needs of customers better, and todeliver an offering which they willconsider as adding value to them.We have to embrace technology todeliver these offerings more and more,due to the growing expectations of ourcurrent and potential customers to bedigitally connected.


In conclusionWe have to understand the behaviorand needs of customers better, and todeliver an offering which they willconsider as adding value to them.We also have to embrace technology todeliver these offerings more and more,due to the growing expectations of ourcurrent and potential customers to bedigitally connected.


Plenary Session 1 OverviewIn the next part of Session 1, twospeakers will deep dive into thekey trends in digital behaviours,to help us really understandthe technology expectations of thedigitally empowered consumers


We will then have a coffee break.I hope you can drop me your questionsduring that time, and the panel ofspeakers will addressat the end of the session.


After the coffee break, the NBA willshare their story of how a differentbusiness model has useddigital technology to widentheir customer base.


This will be followed by speakersfrom 3 racing and wageringorganisations to demonstrate howthey have embraced digitaltechnology to meet theircustomers’ needs


Plenary Session ISpeakerMr Marcel Fenez18 July 2012

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