Business Plan - PowerPoint PPT Presentation


PPT – Business Plan PowerPoint presentation | free to view - id: 29a04-NjMwN


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation

Business Plan


Extended Play Games Top $3 Sellers. In Millions ... Holiday 'Gift Giving' marketing program. In-store POS and some advertising efforts ... – PowerPoint PPT presentation

Number of Views:62
Avg rating:3.0/5.0
Slides: 46
Provided by: jhase
Tags: business | gifts | holiday | plan | top


Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Business Plan

Business Plan BudgetFY 2006-2007
  • Presentation to the California State Lottery
  • June 27, 2006

Plan Development Process
  • Situation Analysis
  • Review of Product Performance, Industry Trends,
    Retailing Trends, Consumer Preferences / Data
  • Objectives that will allow us to reach Goals
  • Sales Goals
  • Strategies and Tactics to achieve Objectives

Another Record Year !
  • 3.56 billion in sales estimated
  • Up more than 200 million over last year
  • Education to receive 1.26 billion
  • Up about 85 million over last year
  • A 7 increase in sales and dollars to schools

Sales in FY 2006 Will Again Set an All-time Record
Education Contributions Also Hit Record High
(In Millions)
A Record Year for Retailers too
  • Lottery retailers earned a record 251 million
    for selling lottery products
  • Over a majority of retailers are independently
    owned small businesses

Record Year in Retail Compensation
How were these records achieved?
  • MEGA Millions SuperLOTTO Plus about 70 million
    higher than just SLP last year
  • 9 jackpots of 200 million or more
  • Scratchers up 170 million over FY 05-06
  • Addl dollars to fund the higher payout games
  • 5 Game Sales ability to have 4 introductions
  • Continued strength of Extended Play category

FY 2006 Will be Biggest Year in Scratchers Sales
3 and 5 Scratchers Account for Over 55 of
Product Sales
First 10 mos
FY 2006-2007 Business Plan Objectives
  • Maximize sales from games with greatest profit
    potential those w/ payouts of 50-55
  • Increase availability visibility of Lottery
  • Build stronger connections with Californians
  • Bolster the Lotterys infrastructure

Increasing Sales of Games w/ Greatest Profit
  • Lotto Games 50 Payouts
  • SuperLOTTO Plus and MEGA Millions
  • 1 and 2 Scratchers Games
  • 1 Games have Payout around 53
  • 2 Games have Payout around 57
  • Marketing Test for Daily Games
  • Research other Draw Games for the future
  • Marketing Plan outlines the details

Availability Visibility of Lottery
  • Analyze results from saturation study and
    potentially expand network in rest of CA
  • Look at alternative, non-traditional tradestyles
  • Research into new product delivery systems and
    potential future tests of such methods
  • Improve in-store merchandising with customized
    signage in chain stores

Building stronger connections to Californians
  • Personalize contact
  • Build involvement with the Brand
  • Associate products with excitement, entertainment
    and the social aspects of fun
  • Show the Lottery as doing its part to benefit
    public schools

Examples of Building Closer Bonds
  • Expanding Event Marketing efforts
  • Participating at some local community festivals
  • Sponsoring other local events
  • Additional Big Spin TV Show elements
  • Jackpot Captains Program
  • First step in a Lottery Players Club
  • Group Play Kit to members
  • A special website for them

Bolster Infrastructure
  • Ability to deliver key services for future growth
  • Additional Terminal Memory for new applications
  • Better Service that is more efficient
  • Retailer website enhancements
  • Automated forms
  • Staff Training and Workforce Planning

Product and Marketing Plan
Lotto Games 1,245 million
  • Represents a 5 increase over current yr
  • All the growth from the MEGA Millions game
  • This game has yet to reach its full potential
  • Typical for a new product
  • Compounded by the fact that players think of
    Lottery on Wednesday Saturdays
  • Planning additional marketing vehicles to boost
    awareness and playership

Lotto Took More Than 2 Years to Reach Full
Awareness and Playership of MEGA Millions Have
Playership data refers to of CA who have bought
a ticket in past month
Awareness data includes both aided and unaided
Knowledge of Draw Days Improving But Not
Lotto Games Advertising
  • TV Advertising to build the Brand
  • Nearly all TV dollars devoted to MM
  • SLP - supported by Radio and other media
  • Lotto Games Media Plan20 weeks of TV and 12
    weeks of Radio

New Media Vehicles
  • Changes in TV viewership
  • Fragmentation of the audience
  • A major challenge to reach the masses
  • Need to develop new ways.
  • To break through the clutter of advertising
  • To reach people in other places / times of day

Examples of New Media
  • Taxi Toppers
  • Website Banner Ads on Draw Days

Other Tactics
  • Jackpot Programs to boost awareness play
  • Consumer Promo to increase transaction size
  • Buy 7, Get a Free SLP Play
  • Recommended Start in mid-October
  • Sampling Program to generate trial
  • Coupons given at events thru radio stations
  • Redemption at Lottery Terminals by end of 2005

Scratchers 1,880 million
  • Based on proven success, continuehigher prize
    payout strategy
  • Budget constraint for prize money means sales
    goal lower than actual sales this year
  • Available dollars for just one 5 game
  • Compared to four games in FY 05-06
  • Total of 40 new games to be launched
  • If funds available, launch another 5 game
    towards the end of FY 06-07

Multiple 5 Games at Retail Boosted Sales During
Jan Feb
1 2 Games 15 increase
  • More 1 and 2 Games to be Launched
  • 15 at each price point
  • Compared to 12 - 1 and 11 - 2 in FY 05-06
  • Develop extended play games at 1 and 2 and
    incorporate popular features themes
  • Create retailer promotion for stocking and
    merchandising the 1 game category
  • Kick off the push with The Big Spin game

Extended Play Games Top 3 Sellers
In Millions
Based on First 16 weeks of sales as measured by
pack settlements
Big Spin is only Scratchers Game with Unaided
Name Awareness
Big Spin Among Top 1 Sellers
In Millions
Based on First 16 weeks of sales as measured by
pack settlements Except Big Spin, which is
the annual weekly average for 16 weeks
Other Scratchers Tactics
  • Holiday Gift Giving marketing program
  • In-store POS and some advertising efforts
  • Entertainment based Game in Spring
  • Strong Movie launches for the Summer
  • Numerous licensed properties being researched

Hot Spot 160 million
  • 1 Million Prize Promo planned for the year

Daily Games 315 million
  • General upward trend in Daily 3 sales
  • Conduct test in a smaller market
  • Marketing / advertising program against a Daily
    Game product and measure its ROI
  • Potentially launch statewide effort in late

Product Development Research
  • Testing potential new games for consumer appeal
    and sales estimation
  • Bingo-based Draw Game (revised concept)
  • Raffle-style games done in other states
  • 4-digit based game
  • Reviewing other concepts / ideas

FY 2006-2007 Product Plan
  • Sept Oct 1 Scratchers Games Big Spin
  • Oct Nov Lotto Games Promotion (3 weeks)
  • Nov Dec Promoting Scratchers as Gifts
  • Jan Feb Marketing Emphasis on MM / SLP
  • Mar-Apr Special April Scratchers Game
  • June-July TBD

Recap of Sales by Product
Budget for FY 06-07
  • .

Budget - Sales Prizes(in Millions)
Budget Administrative Expenses
  • Administrative Expenses total 435 million
  • Largest expense Retailer Compensation
  • 255 million representing about 7 of sales
  • Calculated on the 3.6 billion sales goal
  • Based on Commission approved regulations
  • 6 commission
  • Cashing Bonuses
  • ½ Jackpot Selling Bonus

Game Operations Budget
  • 60 million in expenditures
  • Based on sales goal of 3.6 billion
  • Many costs driven by sales figures
  • Includes reduction in ticket printing costs
  • Includes additional dollars for
  • Maintenance of newly installed ITVMs
  • Addl software programming and terminal upgrade

Communications Budget
  • 36 million budget
  • Base Budget for Advertising, POS, Broadcast,
    Consumer Promotions, Product Publicity Retailer
  • Incremental Funding of 1.6 million for
    additional retail merchandising
  • Additional playcenters
  • Customized signage

General Administration Budget
  • 76 million budget
  • Includes personnel costs, other contractual
    services, operating expenses and facility costs

Budget Administrative Expenses (in Millions)
FY 06/07 Budget - Education (in Millions)