Download Promotion - World Lottery Association

Are the 4P’s in balance?
Camelot’s use of the 4P’s
The National Lottery - Overview
• 95% of the UK population recognise logo
• £5bn+ brand (and in steady growth)
• The National Lottery owns 4 of the top 10 biggest FMCG
brands in the UK
• Coca Cola, Warburton Bread, Walkers Crisps, Hovis, Cadbury DM…
• Raised £24bn in good causes
• £36bn in prizes, £8.8bn in lottery duty and £3.7 for
retailers in commission
• Created 2,300 millionaires
• 73% of adults play our games
• The National Lottery has been the biggest civic re-generation
programme since Victorian times.
Camelot’s use of the 4P’s
How Camelot uses the 4 P’s
and
the importance of the 5th P…..
The 4P’s (and the 5th)
• Product
• Price
• Place
• Promotion
• People
Strategy
Four strategies
• Strengthen the National Lottery brand and give it
universal consumer appeal
• Enhance the core games range then diversify into new
products to better satisfy consumer needs
• Give consumers easy access to the National Lottery
brand wherever and whenever they want to play
• Build direct dialogue with consumers alongside
traditional mass comms.
Camelot’s adoption of the 4P’s
• Products:
Optimising and then diversifying our
product offering.
• Price:
Introduction of new price points across the
TNL portfolio (focus on core DBG/Instants)
• Place:
Multi-channel capability with an optimised
retail offering and a dynamically growing
e-commerce platform (wherever/whenever )
• Promotion:
Optimised marketing activity to deliver
relevant marketing messaging/promotions
through the most effective media (OME)
Product
Draw-based Games
Instants
Scratchcards
IWG’s
Product
• Draw-based games:
• Lotto, EuroMillions and Thunderball (3 core games)
• Distinct and differentiated positioning (price point, prizes, branding…)
• Secondary games meet frequency, behavioural and mechanical needs
• Instant Wins:
• Scratchcards at £1, £2, £3 and £5
• Instant Win Games 50p to £2
• Next Generation of lottery games: New Frontier
• New ways to play, new means of playing
• Essential to keep games relevant to changing consumers lives
• Channels and new technologies will shape the future of games
Product (and its development)
• Product change allows for step change in sales
• Makes players reappraise their relationship with our brands
– Behave differently to spend more, play more, or just play when they didn’t
before.
• Change must be consumer insight led (clear benefit)
– Increasingly important in the New Normal
• Renovation
– where incremental growth exists it is more profitable
– easier, quicker and minimises business complication.
• Innovation
– to deliver on new differentiated needs, where more profitable sources of
growth have been exhausted.
Product (and its development)
• Keep it simple and eliminate negatives
• Have a clear idea of your portfolio direction,
– and how it fits together – consumer, shopper, channel, systems etc.
• Create business choice
– The process needs to create business choices, make the most of the
opportunities, be quick, be thorough and create internal and external
confidence
• Camelot adopts a 3C’s process to innovation
– Consumer
– Capability
– Constraints
Approach to product development
Turnover
Beyond the Core
Extend the Core
Refresh &
Optimise the Core
£5bn
Renovate
Innovate
Diversify
Time
Price
Price
• Price Differentiation – a key driver in the UK TNL marketing mix
• Players will pay more for a better return
– Bigger jackpots
– More entertainment
– More chances to win
•
Little price differentiation in TNL portfolio until 2004
– Introduction of EuroMillions
EUML
– Heavier push into higher price point Scratchcards
– Both major growth drivers in the last 6 years
• Portfolio planning by price will continue
– EUML
EuroMillions
up to £2
up in
to Nov
£2 in2009
Nov 2009
– Thunderball strengthening at £1 in May 2010 – moving towards ‘value’
– Recession orientated low price ‘chances to win’ potential
• Scratchcards growth of £5 and IWG £2.
Place
Place
RETAIL
• 28,700 outlets (or 100,000+)
• Terminal, Dispenser, Playstation
• Split across industry sectors
– Multiples, Independents
– Convenience, Forecourts, Supermarkets…..
• Segmented estate
– Value and location
• Extended means of play
– FastPay EPOS and Cards
• Obsessive execution of brand strategy
– PIE
– Supply Chain
Place
DIRECT
• Over 12% of sales total sales
• c.6m registered users
• 78% retention of players
• 8m unique visitors to the website
• Sophisticated acquisition and retention tools
– Affiliates programme
– Optimised Search
– CPA models
– Partner
• Unlocking and enabling direct marketing opportunity
– opt in marketing comms
– beginning of one-to-one marketing
• 3, 6, 9 principle
Place
The rise of multi-channel
Multi-channel
• Lottery players expect to have anytime/ anywhere access
• Online access is part of the “new normal”
– digital/ online is part of the players’ routine and we need to
follow them
• Online distribution is therefore growing…
• …but having lottery products easily accessible for players’ to
find, use and consume, across channels, is at the at the heart
of Camelot’s commercial strategy
• UK National Lottery products are therefore available in-store;
over the internet; through continuous direct debit and on
mobile
Promotion
Promotion
The rise of multi-channel
Promotional mix
• Above the line media (drive awareness and footfall into retail)
• Channel media (below the line)
• Retail
• Online
• One-to-one and direct media
• In-store and on-line promotions
• prize competitions
• BOGOF
• third party
• Acquire and Retain players into our brands
Promotion
The rise of multi-channel
What is important
• Consistent messaging across all consumer touch-points
• IMAP process adopted at Camelot
• Ensure a cycle of Insight, Strategy, Planning, Execution is
followed
• Holistic brand management followed
Promotion
– Commercial
cycle
FCOM
– vision for the
commercial dept
Strategy
Brand Champion
Category
Strategy
P&L Performance
Holistic Insight
Insight &
Foresight
Category Teams
‘Who & Why’
The Facts! (ROI)
Commercial
Insight Team
Foresight
Channel Teams
Perfect ExecutionConsistent Brand
Message &
Consumer
Experience at all
Touchpoints
Execution
Integrated
Channel Plans
- One plan,
visible to
everyone
Planning
Consumer
& Channel
Marketing
Planning
Team
Promotion – EuroMillions
• Targeting all adults – new and existing players
• Research confirmed that EuroMillions players tended to Chase the Jackpot
• £2 increase - Worth the money
- Makes Lotto good value
• Research supported “Guaranteed UK Millionaire Every Week”
• Positive change to EuroMillions
- Makes EuroMillions more interesting to play
- Guaranteed at least one “big” winner from the UK every week
• Communications
-Needs to inform, excite and retain consumers
-Giving customers what they want, and explaining it in a way that is is easily understood
• Change to EuroMillions
- Make EuroMillions more interesting to play
- Guaranteed at least one “big” winner from the UK every week
Promotion – EuroMillions
Promotion – EuroMillions
Campaign look & feel
Key campaign equity
Launch – Retail
7th – 28th November
Online launch
Launch Home & Launch Landing Page
The
th
5
P…
5th P
• Products:
Optimising and then diversifying our
product offering. (Napoleon, Thor, Passkey
and beyond to new game territories)
• Price:
Introduction of new price points across the
TNL portfolio (focus on core DBG/Instants)
• Place:
Multi-channel capability with an optimised
retail offering and a dynamically growing
e-commerce platform (wherever/whenever )
• Promotion:
Optimised marketing activity to deliver
relevant marketing messaging/promotions
through the most effective media (OME)
• People:
Energised marketing & sales capability to
deliver our six point commercial plan.
Our consumer and our stakeholders
People
• Camelot staff who deliver our plans
• Our stakeholders:
• Regulator
• Government
• Good causes we represent
• Our retailers
• The consumer
People – the consumer is our boss