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Student name: Course name: Subject name: Subject facilitator: Teaching Centre: No. of pages: Word count:

Jevon Jeffrey MBA Marketing Management Strategic Marketing Mrs Michelle Thomas Sital College of Higher Education 12 2446

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Table of Contents
Executive Summary ………………………………………………………………………… Page 1 SWOT Analysis ……………………………………………………………………… Page 2 Marketing Objectives ……………………………………………………………………. Page 6 Product Strategy …………………………………………………………………… Page 7 Conclusion ………………………………………………………………………Page 8 References

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Strategic Marketing
Marketing Plan for National Lotteries Control Board

Name:

Jevon Jeffrey

Lecturer: Ms. Michelle Ann Thomas. Word Count: 2446

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EXECUTIVE SUMMARY In existence for 45 years, the National Lotteries Control Board (NLCB) as a government statutory authority has been charged with the responsibility of earning revenue for national development through profits derived from our legal games of chance. Initially well known for its National Lottery Classic game, in 1994 we followed the trend international state and national lotteries were taking and launched the first two of a suite on On-­‐Line Games which has grown to include Play Whe, Lotto Plus, Pick 2, Cash Pot, Donsai/Keno and most recently, Pick 4. We also took advantage of new introductions in the global lottery market, re-­‐launching our Instant Win (Scratch Lotto) games in 1995 (after an initial market trial in 1988 Vision To be the leading force in the gaming and commercial service industry, driven by a commitment to people Mission To provide through a valued and committed team: -­‐ Creative gaming -­‐ Commercial services -­‐ Gaming regulation using technology-­‐driven solutions, in support of national development As a government statutory authority accountable and reporting to the Ministry of Finance through its Treasury Division, we must also bear in mind the Treasury Division’s goals in the course of our operations, ensuring that NLCB’s Vision and Mission are complementary to and supportive of those of our line authority: We currently market the following suite of gaming products, ever mindful of the need to re-­‐assess their market appeal and income-­‐generation potential: Online - Play Whe - Pick 2 - Pick 4 - Cash Pot - Lotto Plus - Donsai/Keno Offline - Scratch Competition for share of the gaming market consists of illegal games of chance (e.g. Whe Whe), an increasing number of ‘private members’ clubs/casinos, horse racing/OTB racing pools, as well as from online games of chance sold via the Internet. Indirect competition also exists from the wider entertainment sector (e.g. cinemas, bars, nightclubs), which competes for a share of our markets’ budget for entertainment. 5

NLCB has a current network of 800-­‐plus On-­‐Line Games Agents whose premises range in size from small to moderately large. Until now, limited effort and/or expenditure was expended on standardizing the look of these outlets to make them easily recognizable and identifiable to the public as NLCB points of retail for our games. So, despite nationwide coverage, our On-­‐Line Games agent network has emerged over time as a ‘hodge-­‐podge’ of locations with little or no clear corporate brand/game visibility or personality and a public perception of being less than professional, somewhat shabby, inconvenient and ‘out-­‐of-­‐the-­‐ way’. This perception is particularly evident between younger adult and A-­‐B market segments who represent a wide base of potential players to maintain the long-­‐term viability of NLCB On-­‐Line Games

SWOT Analysis Strengths - NLCB has an established and well-­‐known suite of gaming products with strong sub-­‐brand equity, which appeals to a broad segment of the local adult population over the age of 18 years - Our existing games have a strong and loyal player base upon which, with the right market and branding insights, we can further build by attracting new players from an emerging segment - We have an extensive distribution network of NLCB On-­‐Line Games Agents throughout Trinidad and Tobago that makes our games accessible to existing players - Our existing suite of NLCB On-­‐Line and Instant Win Games offers varying price points and play matrices, which are of specific appeal to a number of sub-­‐segments of our existing and upcoming player bases i.e. NLCB’s games to cater to specific player preferences and budget limitations - The introduction of a new game matrix for NLCB’s Lotto Plus has had a positive impact on sales., with ticket sales for this product steadily increasing – an indication that the game is being played with greater frequency, that the change was favourably received, and that it may have attracted new players to our existing player base - Sales of our Instant Win games (Scratch Lottery) are steadily increasing, indicating that winning ‘on-­‐ the-­‐spot’ is appealing to existing and potential players and may be attracting the emerging Young Adult segment vital to the future continuity of our On-­‐Line Games - In the gaming segment, only NLCB (via its game offering), is a generator of revenue for national development across wide-­‐reaching areas (such as sports, culture, health, education, community building, etc.)

Weaknesses 6

- As sub-­‐brands, NLCB’s On-­‐Line and Instant Win games are rapidly eroding public and player awareness of Corporate Brand NLCB as the games’ parent brand, resulting in a public disconnect from and lack of understanding of NLCB’s reason for being i.e. to contribute to national development - Major corporate branding inconsistencies in all aspects of marketing have resulted from the failure to replace changes in corporate logo and brand message simultaneously across all points of communication i.e. at NLCB corporate offices and locations, studio draws, On-­‐Line Games Agents, NLCB-­‐sponsored events, etc. This gives rise to public and consumer confusion and misperceptions and gives NLCB – the corporate entity – a potentially disorganised and chaotic public ‘face’ - There is ongoing evidence of public distrust of NLCB’s On-­‐Line Gaming practices with a common misperception being that draws are untrustworthy and ‘rigged’ in the Board’s favour - Ongoing research and consumer insights indicate that there is an untapped base of potential young adult and middle-­‐to-­‐upper income players who, although aware of NLCB’s game offering, find our existing dealer network inconvenient and not easily accessible and who also exhibit the tendency to prefer instant gratification or ‘big money’ wins - Fall-­‐off in advertising, promotion and P.R. of NLCB as a corporate entity that contributes significantly to national development, has resulted in low public awareness and lack of knowledge of the wider benefits of NLCB’s financial contribution to the country - The above is compounded by a dominance of promotion of NLCB-­‐sponsored cultural entertainment events, which had led to public misconception that monies derived from our games are being used frivolously and with minimal wider social conscience - NLCB’s online and mobile communications presence is weak with underutilisation of an expansive untapped market of potential players who rely on mobile devices as a primary information source.

- A tendency to rely on and heavily promote NLCB’s more popular On-­‐Line games (specifically, Play Whe) as primary revenue generators, with insufficient attention given to the fact that Play Whe sales are declining while sales for games such as Lotto Plus and Scratch are increasing - A growing need to holistically promote all games offered under the NLCB corporate brand umbrella in an effort to equalize each game’s contribution to the Board’s profitability - Statutory restrictions limit our ability to offer our gaming experience on a broader scale (e.g. online) for fear of encouraging the addiction of gambling - Reliance on our three (3) area offices in Port of Spain, San Fernando and Tobago as the redemption point for prize winnings over a specific dollar-­‐value, makes it inconvenient for winners to collect their winnings and places burdens on NLCB staff, who could be better utilised

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Threats - Increasing competition from illegal games of chance and particularly from ‘private member’ clubs/casinos, some of which are cannibalising on NLCB’s games by creating online systems parallel to NLCB’s system and running games of chance based on our games. Such places offer better odds, a more exciting and entertaining gaming environment as well as value-­‐added benefits for player patronage of their enterprises - Competition for ‘share of pocket’ from the wider entertainment segment – in particular, cinemas, nightclubs, bars, public parties and events – offers consumers a more tangible and immediate sense of gratification from the ‘experience’ - Competition from international games of chance available online, which offer the promise of larger prize payouts - Player tendency, specifically with reference to Lotto Plus, to wait for larger prize payouts before playing - An aging market of existing loyal ‘numbers’ games players (i.e. Play Whe and Pick 2) in an market where younger potential players have indicated lack of desire to play games to which they cannot relate personally and in which they feel little interest to play Opportunities - An emerging young market of potential players to which our existing games can be re-­‐tailored to be of greater appeal through a more exciting brand look and experience as well as through new avenues for advertising, promoting, disseminating information and communicating with them

- Interest in and willingness of possible new retail partners, who offer locations of greater access and convenience to potential new players - Increasing popularity of new electronic and mobile communication media through which potential new players and the wider public can access information about and gain exposure to Corporate Brand NLCB as a vibrant national development entity as well as to our suite of On-­‐Line and Instant Win Games - Economic downturn in which consumers are looking for new sources of income for which NLCB’s games provide an opportunity to obtain extra cash - Strong indicators that the young adult is gaining greater amenability to playing our Instant Win ‘Scratch Lotto’ games to satisfy their need for instant gratification and for the fun and suspense of actually playing the game - A new NLCB leadership team that brings, via its members, fresh ideas for enhancing and strengthening the NLCB brand from a corporate and holistic umbrella brand perspective and in so 8

doing, strengthen the public image of NLCB as an viable, forward-­‐thinking, people-­‐conscious corporate entity

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MARKETING OBJECTIVES

SALES/DISTRIBUTION - To re-­‐assess and grow our base of On-­‐Line Agents to ensure that NLCB’s gaming products are easily and conveniently accessible to existing and potential new game players - To establish branding consistency across all current and future retail distribution channels so that each sales outlet, regardless of size, is instantly recognised and indelibly linked to NLCB as a corporate entity PRODUCT, PRICING & PROFITABILITY - To continuously re-­‐assess our existing On-­‐Line and Instant Win Games, to enhance/refresh games where required, and to develop and introduce new products - To ensure that the combined effect of our games achieves maximum audience acceptance and appeal in an evolving gaming market and that they are perceived as be a vital, viable and non-­‐ invasive means of generating income for nation-­‐building - To examine and re-­‐evaluate the price points on each of our existing and future games to ensure that they are easily affordable to our market of players yet simultaneously profitable to NLCB and the Treasury - To institute measures for achieving all sales/revenue targets set for the Board ADVERTISING, PROMOTION & P.R. - To ensure NLCB gains maximum favourable public exposure through all forms of advertising, promotion and Public Relations including: (i) Above-­‐the-­‐line mass media (at product and corporate levels) (ii) Below-­‐the-­‐line promotional vehicles, events and corporate social responsibility activities (iii) Online and mobile communications media

(iii) Maintain mutually beneficial partnerships with NLCB’s line ministry, employees, our game provider (G-­‐Tech Latin America), our On-­‐Line Agent distribution network and critical external suppliers.

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PRODUCT STRATEGY During Fiscal 2012/2013, we will continue to closely monitor and reassess the performance and popularity of our On-­‐Line and Instant Win games, and where necessary, make game matrix changes and implement sales promotions to achieve target sales and revenues by as much as 15%. Plans are also in train for expanding our game portfolio with new games of appeal to the emerging potential player segments. Nevertheless, with declining sales in four (4) of our foundation games, and particularly in the case of Play Whe which still continues to the major contributor to NLCB’s bottom-­‐line, we feel a strategy for rewarding player loyalty must be implemented. Player Loyalty Programme

The time has come for NLCB to reward our existing players for their loyalty and, simultaneously, to attract new players through a loyalty programme that promotes increased play as well as adding-­‐value.

Such programmess include rewarding players with free premiums, play bonuses, points-­‐based and status-­‐based reward systems accessible via personalised player cards that offer the privilege of becoming members of an exclusive players club. Engaging player loyalty will offer our customers the sense of accomplishment and become of real personal value to them.

Short Term Strategy: Play Whe Loyalty Programme Given the trending shortfall in Play Whe sales, we plan to implement a Play-­‐Whe specific loyalty programme to re-­‐stimulate play. The programme’s mechanics will initially simple with the goal of incentivising Play Whe players by offering them the opportunity to collect and exchange non-­‐winning Play Whe tickets of a specified value for NLCB branded sporting gear kits themed to popular sports such as cricket, football, basket ball and cycling.

Long Term: On-­‐Line Games’ Player Loyalty Programme In the longer term, our plan is to introduce a loyalty programme, accessible via an electronic loyalty smart card, which we will offer to frequent players of our games. The card will offer the flexibility for NLCB to give Loyalty Club card holders access to NLCB special events and the opportunity to earn free tickets, etc during specific limited exclusive offer promotions. Long Term: Game matrix changes for better payouts to combat illegals and attract customers. It is forseen that With special promotions that pay better odds, will increase our market share by at least 20% in the new fiscal year. 11

CONCLUSION We envisage the detailed strategies mentioned in this Marketing Plan as the catalyst for injecting new life and a more favourable image for NLCB as a corporate brand, however, our planning and implementation process for Brand NLCB must be an ongoing one with new NLCB-­‐initiated plans for the growth of our corporate brand, our games and ultimately our long term-­‐viability and profitability.

DISTRIBUTION CHANNELS -­‐ Expansion of our Roamer network for increasing sales of NLCB On-­‐Line Games at public events and locations’ -­‐ Introduction of Online Subscription Services for sale of tickets for any NLCB On-­‐Line Game Tickets via a Secured Socket Layered (SSL) platform e.g. a customer can purchase a ticket to play the same numbers for draws over a time period (monthly, quarterly, annually) -­‐ Introduction of Ticket Purchase via Mobile Smart Phones

PRODUCT & SALES GROWTH -­‐ Introduction of new forms of games e.g. Bingos, Sports Wagers, Online Video Games (accessible via website) -­‐ Availability of Money Transfer Service hosted on our On-­‐Line Gaming technology platform -­‐ Introduction of Pre-­‐paid Gift Cards for use toward purchase of On-­‐Line Game tickets to encourage growth in new players via existing players -­‐ Introduction of a Pre-­‐Paid NLCB Debit Card for purchase of gaming tickets (Note: this is a good example of NLCB showing its promotion of responsible gaming since it will allow players to set a budget for their gaming activities as well as being a safer and more convenient option than making cash ticket purchases) -­‐ Additional dimensions to existing NLCB On-­‐Line Games via new game matrix introductions e.g. added-­‐cost features to increase chances of winning on a ticket or obtain higher winning payouts; online Instant Win games accessible on website ADVERTISING & PROMOTION -­‐ Increased use of Outdoor Media e.g. Signage, Electronic and Mobile Billboards, Bus Shelters, Public Transport Signage to promote Jackpot as well as Game awareness to our mobile community 12

-­‐ -­‐ -­‐

A planned, in-­‐depth and holistic approach to marketing and rejuvenating Brand NLCB, initially in the short to medium term and continued into the future, will result in the achievement of our core objective to create a positive and sustained favourable public image for Brand NLCB as a responsible organisation of major significance to our nation’s growth and development, and in so doing, attract he interest of a new base of players who will sustain NLCB’s sustained growth and success

Hosting NLCB-­‐initiated public events such as “Pan On The Promenade” at which tickets for ON-­‐Line Games and Instant Win Games can be sold Hosting of On-­‐Line Game-­‐themed ‘experience’ events at which the public is entertained while being exposed to a game Introduction of an Online Loyalty Programme accessible via the NLCB website as an extension of the Play Whe and Smart Card Loyalty Programmes

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References Kotler, Philip, and Kevin Lane Keller. Marketing management. 14th [ed.] ed. Upper Saddle River, N.J.: Prentice Hall, 2012. Print. McCarthy., E J. "The Marketing Mix and 4 Ps - Marketing Skills Training from MindTools.com." Mind Tools - Management Training, Leadership Training and Career Training. N.p., n.d. Web. 17 Sept. 2013. . "National Lotteries Control Board." National Lotteries Control Board. N.p., n.d. Web. 17 Sept. 2013. . Sheehan, Brian. Marketing management. Lausanne, Switzerland: AVA Pub. ;, 2011. Print. jamal1. "Swot Analysis in Gaming Console Industry - Research Papers - Jamal1." Free Term Papers, Research Papers, Essays, Book Notes | StudyMode.com. N.p., n.d. Web. 12 Sept. 2013. .

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