Retail Executive Summit Nov. 5, 2013 May Scheve Reardon Executive Director, Missouri Lottery
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Transcript of Retail Executive Summit Nov. 5, 2013 May Scheve Reardon Executive Director, Missouri Lottery
Retail Executive SummitNov. 5, 2013
May Scheve ReardonExecutive Director, Missouri Lottery
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It Only Takes One!
PGRI Retail Executive Summit
Lotteries & Retailers Share the Same Goals, Challenges and Opportunities
Mutual Goals1. Build the brand2. Attract new customers3. Increase sales4. Improve the
bottom line
Mutual Challenges
1. Aging player base
2. Fewer cash customers
3. Lack of Lottery standardization
4. New distribution channels
Consumer Adoption of TechnologyIs Accelerating
Lottery Player Base Is Aging & Shrinking
Fewer Customers Carry Cash
There is a Lack of Standardization in the Lottery Business Model
There is a “Perceived Threat” ofAlternative Sales Channels
Mutual Opportunities
1. Promote the Lottery brand and loyalty.
2. Introduce new technology and distribution channels.
3. Work to standardize Lottery operations.
Explore New Ways to Promote the Brand and Loyalty
CY2012 contribution to education: $681,298 Mr. T’s – Cardwell, Mo.
“We are so proud of our store’s sales and the support to education that we’ve generated. We hope to do even better next year.” -Nicole Poynor
Lottery Advertising Has a Positive Impact on “Brand Relevance”
Advertising ImpactsLottery Relevance
www.smari.com
Cell Phone 100
Travel 86Google 86Cable TV 85
Facebook 77Coca-Cola 72
Missouri Lottery 71McDonald’s 71
NFL 70
Casinos 61
Beer 57Starbucks 54
40 30
20
10
Cell Phone 100 Cable TV 87Google 85Travel 85 Facebook
76
Coca Cola 71
McDonald's70
NFL
67
Missouri Lottery 66 Casinos 58Beer 56 Starbucks 49
30
20 10
FY12 FY13
FY12 Q1
FY12 Q2
FY12 Q3
FY12 Q4
FY13 Q1
FY13 Q2
FY13 Q3
FY13 Q4
66 65 66 65
71 71 69 71
Missouri Lottery RelevancePhilanthropic ads
• Play It Forward has had a significant positive impact on the perception of Lottery relevance.
Retailers Are Changing and Embracing Consumer Demands
• Self-checkout/self-select and other operational cost reduction initiatives
• Digital in-store display and endless aisles
• Multi channel initiativeso Use of mobile in storeo Click and pick
• Bring the store to the shopper
Use New Technology and DistributionChannels to Capture New Customers,
Sales & Commissions
Work Together To ImproveStandardization Of Lottery Licensing,
Distribution and Accounting
Lottery and Retailer Collaboration Has Led to Record Sales and Commissions
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY130
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2,000
2,500
3,000
3,500
4,000
4,500
Lottery Industry Total Salesand Retailer Incentives
(in millions)
Total Sales Retailer Incentives
Sale
s in
Mill
ions
Ret
aile
r Inc
entiv
es in
Mill
ions
How Can We Step Up Collaboration?What’s In Our Future?
Brick-and-Mortar Retail Will AlwaysBe #1 To Lotteries
CY2012 contribution to education: $209,273 Hy-Vee #1552 – St. Joseph, Mo.
“We are so proud to be able to help sponsor and contribute to education. We measure our success not just on sales and profit, but also on how we improve the communities we are part of.” - Brad McAnally, Store Director
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Thank You!