Marketing Thoughts by Domus Inc.

Recruiting non-traditional retailers to help lotteries reach the younger “don’t worry, spend happy” consumers

Most U.S. state lotteries enjoyed near-monopoly gaming status during their early years, with legitimate gaming competition coming only from resort casinos in Las Vegas and Atlantic City. However, times have changed and now the convenience of online gaming and the glitz and glam offered by the latest crop of gaming venues have led avid lottery ticket buyers astray.

Within any industry, the only way to thrive, not just survive, is to continuously evolve and find new opportunities to generate revenue, and the lottery is no different. Some states have joined Powerball and Mega Millions or added instant ticket vending machines. All of this is good, but an opportunity exists for more. We’re overlooking the most profitable untapped market: the get-rich-quick, money-obsessed younger generations who have money-burning holes in their pockets.

How do you target these spend-happy consumers? Simple; expand your retail footprint beyond traditional outlets to reach a wider, AKA younger, audience.

Through the proven success of retailer recruitment, state lotteries can identify, qualify and select non-traditional outlets to grow their sales pipeline and reach the 18-35 year olds that already have wish lists to help spend their not-yet-won lottery millions. Bowling centers, movie theaters, general discount stores, diners and cafes are all breeding grounds for the younger market. Why not leverage them and make their most popular customers your most popular customers?

Domus has been working on behalf of the Pennsylvania (PA) lottery for over 7 years and has successfully identified new revenue streams through non-traditional avenues to expand their retailer base and target an influx of new players including the elusive 18-35 customers. We’ve helped the PA lottery increase ticket sales by 58% in 2009, let us help you.

It’s no longer news. The down economy has put extreme pressures on small businesses across all industries from technology to service to retail over the past two years. While many businesses have not survived the economic downturn, those that have survived have only managed to do so by cutting costs dramatically – reducing wages and laying off staffers.

The entire country is concerned about the future of small businesses because of how vital they are to our country’s economic health. And despite continued attempts to revive the economy, small businesses continue to struggle with meeting their revenue goals.

What these businesses, such as retailers for instance, also need are solutions that will increase their revenue immediately, not just put more cash in their pocket that they will ultimately have to repay in the future.

One solution for them to consider: lottery sales.

Retailers earn commissions, risk free, off the sales of lottery tickets. On average, in the state of Pennsylvania, lottery retailers sell more than $375,000 each year and earn nearly $20,000 a year per location in commissions. And studies shows that 80 percent of lottery players buy an additional item when making their lottery purchase, so sales across the board increase when retailers sell lottery tickets.

It’s a simple solution to increasing revenue.

Domus is a marketing communications agency based in Philadelphia. For more information visit us at http://www.domusinc.com.

Advisory Councils consist of customers from varying levels of engagement and experts in specific fields. They are important to the success of any company because of the opinions, advice and insight they provide on current and future issues.  They offer outside perspectives on product positioning, strategies and other business decisions to help guide the company towards success. Capitalizing on their first-hand experiences with a product or brand can only benefit the organization and add legitimacy to your claims.

Advisory Councils are also powerful sales tools and they use the internet as their main messaging vehicle. They gather other consumer opinions from blogs and social media sites to compile as feedback, in addition to disseminating brand/product messaging to drive awareness and ultimately increase sales.

For organizations such as State Lotteries, an Advisory Council would serve to be invaluable. The Council would be built from retailer owners and active lottery players who would provide insight and feedback right from the horse’s mouth. Utilizing this insider information will help Lotteries better understand the retailer lifecycle and how to best fulfill partner needs. They can also offer suggestions for upcoming promotions and new game concepts, serving as the lotteries personal focus groups to improve customer satisfaction.

Domus, Inc. is a Philadelphia-based marketing communications consulting company. Please visit our web site at http://www.domusinc.com for more.

There’s a saying that even bad publicity is good publicity, but unless you’re Paris Hilton that is far from the case. Some companies may not see the value in public relations, but if they become victim to a devastating media disaster then the value of public relations becomes priceless. However, PR isn’t just meant to quality control major disasters, it’s one of the main branches of an integrated marketing campaign. PR will raise brand awareness through legitimate industry sources vs. paid advertisements and help shape how customers view a product, company or even…you.

For instance, the State Lotteries are no stranger to negative publicity. The amount of press covering stories of lottery winners whose lives have been negatively affected by the money trumps the number of positive winner awareness stories. With a solid PR program, that could be reversed. By broadcasting on tier one outlets and creating feature stories, positive life changing stories would be heard, attracting consumer attention which will help raise sales.

Bad publicity might get you on the map, but a negative impression is hard to shake. By implementing a fully integrated marketing program with a strong public relations presence and internet presence tracking, any product, brand or company can raise awareness levels and inevitably raise sales.

Domus is an integrated marketing communications firm based in Philadelphia. For more information, please visit our web site at http://www.domusinc.com.

Although mobile marketing is growing at significant rates in the U.S., there has not yet been a high adoption rate by state lotteries. With lottery revenues around the country struggling along with the rest of the economy, this might be an ideal avenue to add to the marketing mix.

There are many possibilities for lottery mobile marketing, from advertising current games, to providing jackpot sizes and winner notifications, to locating nearby retailers, and more. Simple programs like these would significantly keep lotteries in the forefront of likely buyers’ minds, which in turn should have a strong positive impact on sales volumes.

Domus, Inc. is a Philadelphia-based marketing communications firm with many years of experience providing lottery marketing services. For more information, please visit our web site.

In a previous blog, we discussed the importance of employee appreciation and making sure office morale is high so your loyal soldiers don’t jump ship. During a recession, that task is much more difficult with salary cuts, layoffs and other ramifications seen throughout businesses across the country. Hefty raises and generous bonuses are unheard of now; however there are ways to keep employees motivated, driven and committed to company success without breaking the bank.

It’s important to give your employees something they will appreciate, such as Lottery tickets, which make great incentives and are inexpensive gifts. For example, instant tickets have great odds so the chance of employees winning is high, driving office excitement. Also, the small token of appreciation is recognized, increasing employee value which in turn drives productivity. In addition, each state lottery has its own local beneficiary, for instance the Pennsylvania Lottery proceeds benefit older Pennsylvanians. So by purchasing tickets, you are contributing to local funding to help support your state.

Incentives are also used to motivate employees to drum up new business. By instituting a friendly office competition aimed at identifying potential new accounts, you motivate employees; bragging rights are priceless.

Domus, Inc. is a full service advertising, public relations (PR), internet marketing, and social media agency headquartered in Philadelphia, PA. Please visit our web site for more.

Products, such as lottery tickets, are often spur-of-the-moment purchases. These types of products benefit greatly by having broadly distributed buying opportunitites. States who have flat or too-slowly rising lottery sales can experience better returns on their marketing investment by funneling more funds into retailer recruitment programs vs. other areas. Of course, this doesn’t mean that states should not create new lottery games or that states should not advertise their lotteries, but ignoring retailer recruitment can greately diminish their overall ROI.

Effective retailer recruitment programs should involve more than just telemarketing efforts to bring in new retailers. Marketing research focusing on geographically segmented demographics and buying habits should be an essential component of the program. So should investments in POS materials, training, and other support mechanisms. Even coordinating targeted advertising can be part of the overall program.

Domus is a full-service advertising and marketing communications agency based in Philadelphia. We have been very successful in implementing lottery retailer recruitment programs, and see this as a continued growth avenue for state lotteries.

Robert Budens, President of the Patent Office Professional Association once said, “Innovation is the way America generally gets out of downturns.” In today’s economy, to keep your business above water and thriving, you’ll need to implement innovative techniques to help booster sales as well as keep office morale high so your loyal soldiers don’t abandon ship.

There are many innovative ways that can help drive sales and increase brand awareness. For instance in the lottery industry, proceeds are imperative to supporting seniors, funding education and other community programs so it’s important to find new ways to drive sales. The state lotteries could go beyond the traditional to revamp their websites and promote innovative campaigns through social networking sites to broaden their consumer base. Guerilla marketing campaigns are also successful tactics, driving consumers to purchase lottery tickets after witnessing attention-grabbing street promotions on their way to/from work. The possibilities are endless if you can start thinking outside the box, jar or whatever container holds your unconventional ideas captive.

Even though driving sales is top priority, building employee morale is just as important since they are instrumental in a company’s success. Institute friendly office competitions, establish theme days or simply distribute lottery tickets as a token of appreciation. Be as creative or traditional as you like.

Domus is a full-service advertising, public relations, interactive, and social media marketing agency based in Philadelphia. Our business model is unconventional, forward thinking and implemented specifically to meet the needs of our clients. For more information, visit our website, www.domusinc.com.

Brand presence management is a vital service helping organizations manage how their brand is perceived in the digital space. This includes actively monitoring blogs, news, and other social communities for any communication that could present an opportunity or threat.

In the lottery industry, negative perceptions have always surrounded jackpot winners. Research has shown that a significant number of lottery winners lose their winnings within five years, a fact that appeals to the media and casts a negative light on lotteries in general. Little has been done to reshape the positive appeal of winner awareness; however internet presence management can easily turn adversaries into advocates. With a shift in focus to online news, blogs and social networks, there is an opportunity to transform how people view lotteries and shed positive light over winner awareness.

It’s common for state lotteries to list big winners on their websites, but little follow-up is done. An active internet presence management campaign would be ideal to help raise winner awareness, which will help drive sales. By utilizing social networks and industry blogs, lotteries can promote the success stories and philanthropy work that is attributed to lottery winners. Likewise, negative connotations can be countered through active blog monitoring and participation.

Domus is a full-service advertising, public relations, interactive, and social media marketing agency based in Philadelphia. We are advocates of building a strong internet presence for our clients and making the most of the opportunities the internet has to offer. For more information, visit our website, www.domusinc.com.