MAGAZINE OF THE EUROPEAN LOTTERIES, 2011, SEPTEMBER ...

More documents

Recommendations

Info

GAMBLING TECHNOLOGIES: FUTURE & CHALLENGES PARTNERSHIPS FOR PERFORMANCE COOPERATIVE SERVICES PROGRAMS IMPROVE OPERATIONS, OPTIMISE GAMES AND REJUVENATE SALES Lottery organisations across Europe are entering one of the most exciting times in history. The advancement of Internet games, social media channels and innovative programs that ensure responsible play are culminating in a new era of growth and expansion across the continent. Rising to meet the demands of a more complex operating environment, expanding channels and changing player demographics, some of the most successful Lotteries in Europe have created new agreements – and a different kind of relationship with their suppliers. This movement is exactly why Chris Allen doesn’t think of Scientific Games as a supplier to Lotteries – but as a strategic business partner. Particularly, under the expanded contract arrangements known as Cooperative Services Programs (CSP) underway in multiple jurisdictions, that allow the combination of knowledge, years of experience, innovation and resources to improve the gaming experience, develop the retail marketplace and engage players with a Lottery brand. “When you’re in a partnership with a Lottery, you are able to get a real view, a more holistic view that enables you to work together to improve sales,” said Allen, Director of Global Performance Marketing for Scientific Games. “We work with the Lottery to analyze the game product, players, the retail marketplace and the supply chain from top to bottom—and the partnership allows us to have more educated conversations about opportunities for revenue growth and player development.” Scientific Games has a portfolio that allows it to bundle instant tickets, technology, facilities management, analytics and other services for Lottery partnerships – including design and installation of game management systems, telemarketing, field sales and retail development. Partnerships may also include end-to-end instant game management, research best practices, product reviews, player analysis, inventory and distribution, sales staff training and advising the Lottery on other key areas. Many of the company’s CSP best practices have been incubated in the U.S., beginning in the mid-1980s, with the concept for a customised partnership with the New York Lottery. After several variations, the model was GAMBLING TECHNOLOGIES 6 NEWS 37 SEPTEMBER 2011 brought to Europe in 2002 with the Lottomatica partnership and applied to the re-launch of the instant game category known as “Gratta e Vinci.” This partnership model helped drive instant ticket retail sales from u 411 million in 2004 to over u 9 billion in 2010. It has become one of the biggest Lotteries in the world. With performance management programs, Scientific Games builds on the
success of a Lottery’s traditional core retail product and customizes a plan to drive future growth based on the company’s experience working with so many Lotteries around the globe over the past four decades. The plan focuses on the core business areas of game product optimisation, retail development, retailer expansion and player acquisition. It is executed in Europe through Scientific Games’ printing facility in Leeds, technology center in Vienna, and company offices in London, Ballymahon, Stockholm, Hamburg, Bielefeld and Budapest. “Our program is a consumer oriented approach that manages multiple variables and brings end-to-end improvements and efficiencies across the supply chain,” said Allen. “It’s about best practices, but it’s also about innovation and distribution expertise: delivering the right product for the right player in the right location at the right time.” These same principles were deployed with the rollout of the China Sports Lottery, which has grown from 1,500 terminals in one province, to tens of thousands of terminals deployed throughout every province in China since its debut prior to the Beijing Olympics in 2008. Working together within Germany’s regulatory framework to drive business, Lotto Hessen and Scientific Games achieved success by delivering value to players in both product and retail execution, despite marketing restrictions. In order to do this, Lotto Hessen focused on increasing loyalty and improving the excitement and credibility of the entertainment brand by using promotional tickets and price point expansion in the game planning process, along with delivery to market. “Throughout the last five years of our partnership with Scientific Games on instant tickets, we benefitted from significant and steady year-on-year growth in revenues,” said Alex Sausmikat, Prokurist Marketing & Vetrieb at Lotto Hessen in Germany. “Combining Lotto Hessen’s market expertise and Scientific Games’ proven best practices helped us to achieve the best results in a highly regulated environment.” “We tailor each partnership arrangement to meet the specific requirements of the Lottery jurisdiction,” said Allen. “A close working relationship is key. The flexibility of the partnership approach also helps overcome differences in legislation, as well as the differences across Europe in culture, language, currency, consumer and retailer behavior.” In Lithuania, where an expanded partnership program with Scientific Games began in February 2011, sales have doubled in the last five months and are expected to double again by the year’s end, then again in 2012. “I am happy to say that the implementation of a new strategic game plan and the provision of Scientific Games’ additional marketing services have resulted in exceptional sales growth in 2011,” said Midaugas Marcinkevicius, IT Director for Olifeja. “We are excited and looking forward to even better results in the future.” After a competitive bid process, De Lotto selected Scientific Games’ CSP. The partnership began with the top 25 retailers from the Netherlands • Develop a variety of products that offer the expectation and desired value for all consumer segments • Ensure those products are delivered in the right manner to the right retailers and displayed in the way they were intended GAMBLING TECHNOLOGIES CSP Steps to Success 7 NEWS 37 SEPTEMBER 2011 traveling to New York City to learn about SalesMaker, which will be part of the Lottery’s upcoming retail expansion drive to recruit new retailers using best practices. SalesMaker is a retail development program created by Scientific Games that shows retailers the importance of the Lottery category to their overall business. The key objective of Sales- Maker is to create the ideal lottery point-of-sale environment at retail. Retailers receive continuous training and real-world demonstrations on how to position lottery products as a “business within a business.” “Thanks to Scientific Games’ CSP program we are finally able to have a real dialogue with our retailers and deliver the products they need, when they need them,” said Frank Bijman, Chief Creative Officer of De Lotto. “This dedication to our retailers, combined with Scientific Games’ superior instant ticket products and marketing services, leads us to believe we can expand the Dutch Lottery – hopefully by double digits.” Capturing the DNA of lottery best practices, Scientific Games’ CSP enables the company to manage a Lottery’s instant game operations as a means of improving operating efficiencies for the Lottery, while increasing sales through improved execution of retail and player development. • Work with retailers to embrace lottery as a category and leverage lottery traffic to enhance overall store profitability • Adjust and refine the process continually to ensure all initiatives are complementary and on target for maximum profit to lottery beneficiaries
Page 1 and 2: NEWS 37 MAGAZINE OF THE EUROPEAN LO
Page 3 and 4: FOREWORD DEAR EL MEMBERS, DEAR FRIE
Page 5 and 6: EDITORIAL THE EXPERTS HAVE THE FLOO
Page 7: weekly sales are more than 1 millio
Page 11 and 12: • The power of an effective and u
Page 13 and 14: THE NATIONAL LOTTERY COMPANY OF IRE
Page 15 and 16: CASE STUDY SOCIAL MEDIA, INESCAPABL
Page 17 and 18: ich the experiences with the brands
Page 19 and 20: and add new developments for their
Page 21 and 22: FUTURE & CHALLENGES Fromitsside,the
Page 23 and 24: In these economically tough times o
Page 25 and 26: ways of checking whether or not a t
Page 27 and 28: has developed a comprehensive guide
Page 29 and 30: TRADITION MEETS FASHION A JOINT EL/
Page 31 and 32: nancial imbalances. Taking individu
Page 33 and 34: Other lawyers presented on national
Page 35 and 36: and Risk Management Working Group a
Page 37 and 38: It was accepted that traditional lo
Page 39: Androulla Vassiliou (1 st rank, 6 t

MAGAZINE OF THE EUROPEAN LOTTERIES, 2011, SEPTEMBER ...

Create successful ePaper yourself

Delete template?

Save as template?