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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
Introduction & Background
Can a marketing communications programme, in an era of economic recession and
its attendant significant changes in consumer behaviour, still by itself bring about the
desired results? This is the question posed and successfully answered by this case
study. Since 1987, the National Lottery in Ireland has been run by the An Post National
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Lottery Company. The Company currently provides a number of draw games within its
portfolio including Lotto, with draws on Wednesday and Friday; EuroMillions, with draws
on Tuesday and Friday; Monday Millions with draws on Monday; All or Nothing, with a
draw every day; and Millionaire Raffle, with a limited number of draws throughout the
year.
The National Lottery also offers a variety of Scratch Card offerings – at any given
time there could be up to 12 different Scratch Cards available – all of which offer
the distinctive proposition of the immediate win. Scratch Cards are very significant
strategically for the National Lottery. The Scratch Card category accounted for
approximately 20% of all National Lottery Sales in 2011 and is the second biggest
product in its portfolio. In that year over €106 million was won by Scratch Card players.
In addition, it is part of the remit of the National Lottery to generate funds for good
causes. Approximately 30c in every Euro spent on National Lottery games goes to a
variety of good causes.
There were two issues facing the Scratch Card sector at the beginning of 2011. Firstly,
there was a decline in sales due to the challenging economic environment. Secondly,
there were longer term issues. The category had a long-established older and rural
image, which was reflected in actual behaviour by relatively underperforming 18-24 year
Awards
old and Dublin categories.
Like many other products and services, the sales of the National Lottery declined over Leisure, Media & Entertainment
the past few years. Between 2008 and 2009 it has been calculated that the weekly sponsored by Ignite Research
Gold
discretionary income – which would fund the kind of impulse purchase behaviour which
Scratch Cards represents – had declined by 11%, and it declined by a further 8% in
2010. Overall, between 2008 and 2011, it is estimated that this income declined by over
40% (Source: Behaviour and Attitudes). Sales of Scratch Cards were affected, albeit not
to the same degree, but they did experience a decline of 4% throughout 2009, and a
further decline of 7% for 2010.
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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
Marketing Objectives
The Planning Department at DDFH&B consists of 5 full-time planners, all of whom have
regular direct contact with consumers via a variety of Qualitative Research techniques.
Over the past couple of years we have noticed an interesting phenomenon and
something that we had never encountered before i.e. that lapsed consumers can still feel
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as positively as regular consumers about a product or service. It’s just that their ability to
act on that positive feeling is circumscribed by their economic circumstances. They feel
that they can no longer afford the product or service even though, ideally, they would like
to continue to buy it.
They recognise this, realise that they are missing out but are prepared to compromise. Company Profile
This had implications when it came to determining the various objectives for this
campaign. We suspected that there was no point in having any of the “softer” traditional The DDFH&B Group consists of DDFH&B
and attitudinal Key Performance Indicators e.g. “makes Scratch Cards more appealing”
Advertising, Mindshare Media, Goosebump,
because even if we succeeded, this might not deliver the results. We had to set business
BespokewithDirection and RMG - the largest Irish
and marketing objectives which were grounded in measurable shifts in actual consumer
companies in creative advertising, media buying
behaviour i.e.
and customer relationship/ digital marketing
To halt the sales decline of Scratch cards seen in the preceding two years –
respectively. Together, we provide channel neutral,
2009 and 2010.
integrated marketing communications campaigns
Ideally, to increase sales for 2011.
that deliver real, measurable results.
To increase sales in those two categories i.e. younger players aged 18-24, and
Dublin, which traditionally underperformed for the category We achieve this level of integration by working in
Communications Objectives a number of small, multi-disciplined teams - we
Scratch Cards are at a disadvantage versus the other major games in the National call this ‘funsizing’. We continue to be one of
Lottery’s portfolio i.e. Lotto and EuroMillions, in that the nature of those games the most successful agencies in Ireland and are
means that they have almost constant marketing communications support. With happy to continue to work with great clients such
Lotto and EuroMillons, the Jackpot frequently rolls over and with between them, 4 as The National Lottery, Bord Gáis and Fáilte
draws every week, this has to be communicated on a regular basis. We had to find Ireland as well as new clients including SuperValu,
a communications vehicle that would highlight the unique nature of the Scratch Card Littlewoods, Lucozade and eircom.
offering but which would be sufficiently impactful to cut through the advertising clutter.
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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
The Task
What was simultaneously challenging and exciting about this task was that it had
to be a marketing communications solution. One of the features of recent years is
that consumers have become more deliberative about their purchases and more
demanding. This has manifested itself in a number of ways. They have a heightened
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price consciousness, will travel between several shopping outlets in order to get good
value and are more prepared to switch, for instance, Utility or Insurance providers. In
the FMCG category there is an expectation that a significant amount of their purchases
will be bought on promotion. Many manufacturers and providers of services have
recognised this and as well as offering price promotions and/or reductions, try to give
consumers more reasons to continue to stay with them – food brands highlight the
added benefits of their products e.g. 100% natural ingredients and in the motor trade,
Kia’s seven year warranty is a good example of what is involved.
The net result is a new consumer mindset that expects more for its custom and
demands that brands recognise in concrete ways that things have changed and that
they need to act accordingly.
The National Lottery is at a big disadvantage in this context. Under its licence, it can Surprise yourself
with Scratch Cards
promote its products via marketing communications but it cannot in any way incentivise
CONNECT 4 © 2011 Hasbro. All Rights Reserved.
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its players to play more. For instance, it could never offer its players a buy-one-get-
one-free type of promotion that is a feature of so many categories. In addition, if it was
to increase the prize money or reduce its cost, then that would reduce the amount of
money that would be available for the good causes that it supports.
Therefore, for the National Lottery was in a double-bind, confronted by a more cash-
strapped and more demanding consumer but unable to react like other brands had. The
tools at its disposal to achieve the very challenging objectives which it set for its Scratch
Card category in 2011 were very limited. From the start, it was clear that the solution
would have to be marketing communications-based.
Surprise yourself
CONNECT 4 © 2011 Hasbro. All Rights Reserved. with Scratch Cards 3
O27460 NL 48sheet ROUGHS DJV5.indd 1 16/02/2011 16:49
Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
The Strategy
As mentioned, Scratch Cards are at a disadvantage versus Lotto and EuroMillons in
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that they require and receive in some form, almost constant marketing communications
support. If it was to achieve its objectives, our strategy had to allow Scratch Cards to
punch above its weight to communicate its unique selling point and to do that, we had
to look at doing things differently than they had ever been done before.
The first point of difference was the decision to promote the Scratch Card category
itself, which had never been done before. Previously, the tendency had been to support
individual scratch cards, particularly those with a TV game show tie-in, like Winning
Streak, but we had never really promoted the “idea” of Scratch Cards, what made them
unique.
We knew from numerous qualitative research studies the mindset of the Scratch
Card player and understood what made playing Scratch Cards such a compelling
proposition for them. And we were confident that this would be also compelling to our
various lapsed and/or under-represented target audiences, if only they were reminded
of it. Unlike Lotto and EuroMillons, with Scratch Cards the prizes are already out in the
public domain. They are in shops, garages, supermarkets waiting to be discovered and
surprise lucky players. They offer the distinctive benefit and thrill of an immediate win.
The second point of difference related to the impulse nature of the majority of Scratch S28593 NL POS Cashmat Lenticular 330x225 outlines jc.indd 1 27/07/2011 16:02
Card purchases. Traditionally, the pattern for the National Lottery was to support
simultaneously a number of different products in-store with a variety of point-of-sale
material. But it was felt that on this occasion a new approach was merited. To coincide
with the launch of the ATL campaign, it was decided to give exclusive focus in-store to
Scratch Cards for the launch months.
There were two key elements to the creative brief; firstly to develop a communications
idea which would dramatise the USP of the category and secondly, to do so in a way
which would particularly appeal to a more youthful and urban audience than heretofore.
There was a similar emphasis in the media brief i.e. a switch from the media mix
traditionally employed to communicate to Lottery players to one which reflected the
desire to talk to younger and more urban players.
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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
The Idea & Communication Activity
The communications idea which gave creative expression to the campaign strategy was
“Surprise Yourself with a Scratch Card. The idea was defined in the initial launch TV ad
and featured Camouflage Man who, previously undetected in the background of various
scenarios, emerged into plain view at the precise moment when a player discovered that
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he had won.
This device, which served to dramatise the level of surprise of a Scratch Card winner, at
the moment of winning, served as a visual linking device for all of the campaign and gave
it a strong consistency and coherence.
As mentioned earlier, the campaign involved a substantial change of direction for the
National Lottery. Whereas previously the pattern had been to support selected Scratch
Card games with a combination of TV and press activity, this campaign involved
supporting the category as a whole via an integrated through the line campaign.
The campaign kicked off in February 2011 with a 2 week teaser campaign using 15
seconds TV advertisement. This was immediately followed by a multi-media campaign
which was activated through TV, Outdoor (48 and 6 sheets, including some innovative
lenticular 6 sheets), Bus Sides and Point of Sale including Toppers, Cashmats and
Window Surrounds.
Our media partner Starcom, very much bought into the strategic approach and felt it
should be reflected in the media strategy. In particular, they recommended that media
channels which were of particular relevance to the younger and more urban target
audiences should be included, arguing that in appealing to those audiences, one
would not alienate the older existing players. As a consequence, Outdoor and Digital
media had a role in this campaign which they never had for any previous advertising for
individual Scratch Cards. Both would engage a more youthful and/or urban audience.
Innovative lenticular 6 sheets allowed us to bring the campaign dramatically to life
59% Tv
in a very impactful way. And using On-line would allow us to engage with younger
consumers in what they see as their own space and the digital activity included pre-rolls, 7% Digital
homepage take-overs of relevant sites and standard formats. 34% Outdoor
In the event the percentage breakdown between the various channels see Fig.1 Fig. 1
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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
The Results
As mentioned at the outset, the ambition for this campaign was to deliver a set of
concrete results which represented measurable shifts in consumer behaviour, and this is
what was achieved in a context were no other element of the marketing mix e.g. price,
distribution, changed. Not alone did we reverse the two year trend of sales decline for
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Scratch Cards, but the category actually grew by 3.3% in 2011.
A number of contextual factors give further meaning to this achievement:
Overall National Lottery sales declined by 1.4% in 2011.
There was a 5% decline in footfall in National Lottery retail outlets and of all the
National Lottery portfolio, Scratch Cards are most subject to impulse purchasing
Source: National Lottery Annual Report 2011.
In addition, it has been calculated that the weekly discretionary income fell by an
additional 10% throughout 2011, making the achievement of a growth in sales even
more difficult to achieve.
At the outset of this process, we had identified that we wanted the success of this
campaign to be measurable by concrete evidence of changing consumer behaviour
and we identified two specific objectives i.e. that we should see a growth in the number
of 18-24 year olds and in Dublin consumers who were playing Scratch Cards. Both
objectives were achieved in 2011.
Among 18-24 year olds the ‘Play Scratch Cards Nowadays’ levels increased to
25% from 22%.
And the latest relevant data i.e. March 2012 suggests that this trend has gone
from strength to strength with a year-to-date monthly average ‘Play Nowadays’
level of an impressive 32%
Play Scratch Cards Nowadays level among Dubliners increased from 14% in
2010 to 20% in 2011.
And the latest relevant data suggests that this trend is also strengthening with a
year-to date monthly average for 2012 of 28%.
Sales in Dublin increased by 5.4% in 2011 versus 2010 which exceeded the
national sales average of 3.3%.
Source: B&A National Lottery Monthly Tracking Omnibus.
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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
Impact On Behavioural Attitude and Payback
As mentioned previously, the strategic objective of this campaign was to bring about a
change in consumer behaviour with regard to Scratch Cards. Over the past few years
a new consumer reality has developed, where positive attitudes to a brand are a less
successful indicator of positive behaviour in the form of purchasing that brand. We
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recognised that the consumer world had changed and that we need to focus on actual
behaviour rather than attitudes.
And the results above show that we were successful in the three objectives that we set
ourselves:
Reverse the two-year decline and ideally grow the sales of Scratch Cards.
Grow the sales of two traditionally underperforming categories i.e. younger, 18-
24 year olds and Dubliners.
The National Lottery is a non-profit organisation so calculating the Payback is not as
straightforward as it would be for a commercial equivalent. Profit in this instance is
defined as Surplus funds which is the amount of money going to Beneficiaries or Good
Causes. But we can put a financial value on the success of the campaign. Overall sales
of the National Lottery for 2011 were €761 million. See fig.2 to see how those sales
figures are divided.
Source: National Lottery Annual Report 2011.
Operating costs remained the same percentage in 2011 as they had in 2010
at 14% so any additional revenue, minus the percentage paid out in prize
money, could be counted as “profit”. Now it becomes a matter of calculating
the incremental sales revenue generated by the marketing communications
programme for Scratch Cards.
Sales of Scratch Cards increased by 3.3%.
Therefore the incremental sales amounted to €158.4 million minus €153.34
million for 2010, a difference of €5.06 million.
30.5%
Payout of prizes amounted to 60% of sales i.e. €3,339,600.
Return on investment therefore equals: Prize Fund
€5,060,000 14%
Operating costs
- €3,339,600
55.5% Surplus
€1,720,200
Divided by €650K (includes marketing communications support i.e. all
production and media costs) multiplied by 100% = 265%. Fig. 2
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Surprise Yourself with Scratch Cards from the National Lottery
DDFH&B
Summary
At the beginning of 2011, the National Lottery faced a significant challenge with its
Scratch Card product. Two years of successive sales decline had undermined the
second largest product in the National Lottery’s portfolio. And the environmental factors
did not give any significant grounds for thinking that the situation would get any better.
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From our own regular Qualitative Research studies we had observed a new consumer
trend i.e. that lapsed users of a brand might feel as positively about it as regular users,
but their perceived freedom to act on those positive attitudes had been limited by their
economic circumstances.
This shaped the objectives for the new marketing communications campaign. They had
to be measurable shifts in actual consumer behaviour.
We identified 3:
To halt the sales decline of Scratch Cards and ideally to increase sales for 2011.
To increase sales among 18-24 year olds.
To increase sales among Dubliners.
Surprise Yourself
Our understanding of the mindset of the regular Scratch Card player i.e. with
what makes
Scratch Cards from the National Lottery
playing such a compelling proposition to players – the surprise and thrill of the immediate
win – would, we felt, be also compelling to lapsed players, provided they were reminded
of it. And this became the basic platform or our strategy.
2012 ADFX ENTRIES WORDCOUNT:2970 DATES:FEB ‘11 – APR ‘11 PREPARED BY DDFH&B
The campaign requirement became clear – we needed a communications vehicle
which dramatised the USP of the category in an impactful and entertaining way.
We also recognised we needed to behave in a different way in-store. Of all National
Lottery purchases, Scratch Cards are most characterised by impulse purchasing. We
moved from a situation where a number of National Lottery products were supported
simultaneously in retail outlets, to one where Scratch Cards were given exclusive focus
for the first two months of the campaign.
All the objectives which we set for the campaign were achieved.We grew sales of the
category by 3.3%. We increased the number of players in two key categories i.e. 18-24
year olds and Dubliners. And most importantly, all this was achieved in a cost efficient
way. An incremental sales revenue of €1, 720,000 million was delivered for an investment
of €650k, giving an impressive return on investment of 265%.
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