Public Gaming July/August 2014 - page 20

Michele Argentieri:
It’s about distribution and visibility. So
if I can push a ‘buy something, get something free’ coupon to
someone who’s going into 7-Eleven, that’s about visibility of the
retailer’s product. Our Business Plan is focused on new avenues
of product visibility that supports distribution. By integrating the
goals of the retailer, I think we are redefining the meaning of vis-
ibility and distribution as it applies to Lottery. 
Paul Jason:
Michelle, do you have cross-promotions where
you produce a coupon or something that delivers value to the re-
tailer in the form of a discount on a food product or something?
Michele Argentieri:
In Indiana, we’re partnering with one of
our major chains, and they are giving away their proprietary wa-
ter product in a ‘buy X get Y.’ Buy a lottery product and get a bottle
of their water. And vice-versa, buy a private label product and get a
lottery ticket. We are working on co-op marketing planning strate-
gy to try to do a win/win for our retailers. These are all pilots, tests
to see if we can move the dial. These are the kind of partnerships
that we feel moves us in the direction to which Mark Hagen refers. 
Paul Jason:
Daniel, the Link3 concept displays an offer to buy
a lottery ticket at the pump. Can that display be used to promote
other objectives, like go into the store for a discount on a hot dog
or other food items?
Daniel Cage:
Certainly. And we are doing that. It’s what you
were saying, Michelle and Mark. One objective is to optimize the
shopping experience for the current customer. The other objective
is growing the customer base, attracting new customers. That’s as
true for the retailer as it is for Lottery. Just as GTECH, Scientific
Games, INTRALOT, Pollard, and others are introducing innovative
ideas to forge creative merchandising partnerships with the retailer,
Linq3 is trying to forge a better connection with the customer who
is outside at the pump and not necessarily even intending to go into
the store. We have a lot of flexibility to use the displays at the pump
to stimulate the customer at the pump to go in to the store. It could
be ‘buy X, get Y’, or ‘buy Powerball and get an instant ticket.’ The
retailer benefits by driving more traffic inside. There are lots of dif-
ferent things you can do depending on store type and objectives,
your store’s customer profile, short or long-term merchandising and
promotional strategies. Let’s connect better with all of these seg-
ments, the Millenials, women, internet shoppers, new players – and
apply all these concepts to drive store traffic and increased purchas-
ing from the whole spectrum of consumer profiles.
Exceeding Plan by Focusing on Execution
Beth Bresnahan, Executive Director, Massachusetts
Lottery:
What Michelle said about visibility is key. If we’re out
of sight, we’re out of mind. For us, it’s all about in-store visibility.
We are using a 17-year-old system that does not have ‘buy X get Y’
capabilities. So we are depend on fundamental execution, keeping
lottery products front and center, and maximizing the opportuni-
ties with the lower performing retailers by using the gold-star re-
tailers as models for them to emulate. A ‘best practices’ approach.
In terms of modernization and the application of new technology,
it is ironic to be on this panel because our objective is simple and
low-tech. We strive for the product to be presented in a clean, fresh
way; for the benefit of the existing customer who may know what
they want, or the new customer walking in for the first time. We
want them to see what they want, have an opportunity to choose
from an array of games, but not be overwhelmed by them. We
work with our 7,400 retailers, on a case-by-case basis, by applying
the basic tactics that we have found effective at helping our retail-
ers maximize the opportunities in their specific locations.
Paul Jason:
The Massachusetts Lottery has the highest per-
centage of retailers per capita and the highest lottery sales per cap-
ita in the country. Maybe the two are related? It seems that execut-
ing well on the basics is itself a good recipe for success. And even
with this extraordinary penetration, you continue to drive sales
increases. And with a minimal advertising budget at that.
Beth Bresnahan:
When my predecessor, Paul Sternberg, took
over the Mass Lottery back in 2011, we were at a crossroads. Our
sales had been in decline and we were viewed as a mature lottery
with no room to grow. We proved that wasn’t the case. We had a
$1 million gain in sales in the first six months. Our next year was a
record breaking year. Last year was another record breaking year.
We did $4.85 billion in sales using our existing footprint and our
existing products. So there was room to grow even within all of
our constraints. We recognize that we need to upgrade our tech-
nology, look to the future of online gaming, and how to modern-
ize the product. But we’re not waiting for new technology or new
channels of distribution or increased advertising budget to drive
growth. There’s a lot of room for growth where we are right now
and with the tools we have right now. We will continue on the path
we are on.
The Corporate Retailers’ View on
“Ask for the Order”
Mark Hagen:
It is unlikely that we’re going to ask our sales as-
sociates to plus-sell a lottery ticket. We have enough of a challenge
to plus-sell anything. And if we get them to plus-sell something,
they’re going to plus-sell food or proprietary beverages, not some-
thing that we make a 5% margin on. Sorry, but that’s the way it is.
That is why we like in-counter displays, right under the nose of
the customer when they are at the counter making their purchase.
That is the way to sell Lottery—it will sell itself, and we have the
data to prove it. We’re going to ask you to partner with us to make
sure Lottery is effectively merchandised and in-stock and we’re
confident that’s going to sell more lottery tickets.
Anne Kerstetter:
I have to agree, particularly because we
only sell in a self-serve format so we don’t get that opportunity to
directly ask the customer for the sale anyway. So we really need to
work with our partners to get the right promotional materials out
there, the right point of sale materials that’ll grab that customer’s
attention, that will effectively “ask for the sale.” And to emphasize
the point, though, I would agree with Mark that any up-selling
would be applied to other products, not Lottery. That doesn’t mean
Public Gaming International • July/August 2014
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