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// PUBLIC GAMING INTERNATIONAL // November/December 2015
So, what does this tell us?
The original question was ”could differently “packaged”
scratch-off tickets be more appealing, better deliver against cat-
egory needs, and therefore help expand the category by increasing
playing and purchase occasions?” Our quantitative data seems to
suggest that the answer is a resounding “yes.”
In fact, there’s likely the opportunity for significant new lot-
tery revenue by following these guidelines. Experimenting with
new products that re-frame the way consumers (both players and
non-players) think about the category and better meet their true
needs would be the first step. From there, the lottery can open up
a variety of new buying occasions and distribution channels.
Lesson Number Two: Product form is one
thing, positioning is another
Now, changing the product form is not that simple. It requires
experimentation, the allocation of resources, testing and time.
And even though it may be essential for the future growth of the
category, it is still more of a mid-term solution.
But interestingly, “baby carrots” can also teach the lottery in-
dustry another lesson about how to grow its business faster. This
lesson is not about product experiences, but about the way the
products are positioned and communicated. It’s a lesson about
brand storytelling.
Let’s take another look at the carrot category but fast forward
to the year 2010. Baby carrots, as a new product format, had radi-
cally changed the way the category is perceived while leading to
significant growth and Mike Yorusek became a wealthy man by
selling his business to Bolthouse Farms, one of the country’s lead-
ing carrot producers (Mike passed away in 2005).
But, after ten years of consecutive growth, baby carrots and
the category overall started to stagnate. Just like so many other
categories, it suffered from the recession. People were buying and
eating less carrots to save money. Jeff Dunn, the CEO of Bolt-
house Farms (and an ex Coca-Cola marketer) was not satisfied
with this development and wanted to reinvigorate sales. Various
consumer research efforts (and talking to more than twenty ad-
vertising agencies) finally lead them to a completely fresh way to
position its baby carrots: “as junk food” (captured by the line “Eat
‘Em Like Junk Food”).
Common wisdom would have suggested to highlight the
product attributes and benefits of carrots. They’re healthy. But
everyone knew that already and it did not seem to have helped
consumption. Common wisdom might also have suggested to po-
sition baby carrots as a healthier option to junk food. But while
junk food and vegetables tap into very different consumer need
states with very different associations and expectation, this type
of comparison would have always made choosing baby carrots
look like a compromise. And who wants to compromise, espe-
cially when indulging?
The breakthrough came when the team decided to position
baby carrots not “against” junk food but “as part of the junk food
world” allowing it to tap into the same (indulging) conventions
as real junk food. This positioning wasn’t taken out of the blue.
Rather it was based on a product truth, In fact, baby carrots al-
ready possess many of the defining characteristics of our favorite
junk foods. They’re neon orange, they’re crunchy, they’re dippa-
ble, they’re kind of addictive.
A multichannel advertising campaign around this new posi-
tioning led to a lift in sales of over 10% versus the prior year in
the markets where it was tested.
Framing, or the context in which you present a product, brand
or idea, plays a huge role in psychology and in communication. In
fact, First-the-Trousers did an analysis of over 1200 case studies of