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// PUBLIC GAMING INTERNATIONAL // July/August 2016
Following is an edited synopsis of the panel discussion held at PGRI SMART-Tech on April 7 in New York. You can view a video
of the complete presentation at
www.PGRItalks.com. Edited by Paul Jason, PGRI.
Tom Delacenserie:
Even though a few lotteries have begun to sell online, it is land-based
retail that sells our products. Over 99% of U.S. lottery sales happen at retail, and it will take a
long time for that to change in any measurable way. That is why it is vital for us to gain as much
understanding about the in-store consumer experience as we can. This ‘moment of truth’ when
the consumer makes the
final decision of buying
or not buying is under-
going a renaissance, with
merchants
rediscover-
ing the potential retail
has for connecting with
the consumer. Like most
business scenarios, this represents opportunity and challenge. Lottery can consolidate its strong
existing position at retail by dedicating itself to truly optimizing the in-store player experience
and its partner relationship with its retailers. The challenge is that if we don’t do that we will
lose ground against the community of CPG merchants who, along with the retailers, are chang-
ing the face of the retail shopping experience.
Maximizing in-store marketing and merchandising is about improving product awareness.
Product awareness at retail is the critical component to retail sales growth. Awareness can
be gained through expanding and improving existing space and product facings, additional
product signage, third party partnerships, or all of the above and then some. How can lottery
leverage its strengths, profitability per-square-foot, total sales, and growth to gain more space,
better location, and a stronger focus at store level? Jeff …
Jeff Sinacori:
The key is to develop products that the consumer loves, and building the
mutually beneficial relationship with the C-store owners to position lottery for success in
the retail environment. Traditionally, Lottery has focused on its own agenda for how to mer-
chandise its products. That’s not illogical and worked well in the past. But the future is being
driven by the consumer, and our customer which is the retailer. Our industry is finding great
success when we switch over to a retailer focus, speak the language of retailers, appreciate and
respect their goals and their perspectives on how to optimize lottery sales and the consumer
shopping experience.
Wendy Montgomery:
We have to realize that we’re competing not just for the customer’s
attention, but also for the retailer’s attention. We need to understand our retailers’ needs, their
concerns, and their objectives. We have to show retailers their ROI on Lottery. In Ontario, we
RETAIL OPTIMIZATION:
IN-STORE
MARKETING AND MERCHANDISING
How can Lottery be
“up-sold” and engage the
shopper in the store? How
can technology and Point-
of-Sale (POS) tools be
used to capture attention
and make it easier for the
consumer to understand
the portfolio of different
products and make their
selection? How can Mobile
Proximity Marketing be
applied to Lottery?
Moderator:
Tom Delacenserie,
Secretary,
Florida Lottery
Panelists:
Wendy Montgomery,
Vice President Marketing
& Sales,
Ontario Gaming
& Lottery OLG
Adam Perlow,
President &
Chief Executive Officer,
Hudson Alley Software
John Pittman,
Vice President Marketing,
INTRALOT USA
Tom Shaheen,
Executive Vice President
& Chief Policy Officer,
Linq3
Jeff Sinacori,
Vice President
Retail Development,
Scientific Games Corp.
We have to realize that we’re competing
not just for the customer’s attention,
but also for the retailer’s attention.
—Wendy Montgomery