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SalesmakerSalesmakerSEPTEMBER/OCTOBER 2010VOLUME 25 | ISSUE 5
The Official Newsletter for California Lottery Retailers
CALIFORNIA LOTTERY COMMISSIONERSJohn Mass, ChairmanJohn Menchaca
CALIFORNIA LOTTERY DIRECTORJoan M. Borucki
CHIEF DEPUTY DIRECTORLinh Nguyen
DEPUTY DIRECTOR OF SALES AND MARKETINGMichael Brennan
DEPUTY DIRECTOR OF SALESMichele Tong
CHIEF, NORTHERN FIELD OPERATIONSStacy Matsunami
MANAGING EDITORNorma Minas
ASSISTANT EDITORSTim Dugas Kelsey Rubstello
CONTRIBUTORSVan Nuys District OfficeJeff BermontWendi DoyonHank QuockBob BlankSteve FreundBob StillmanMario FloresDon KuzemkoSteven FontenetteCameron Kay
Santa Fe District OfficeJohn GarnerJames ScottDan Bristol
I’ve got great news to share with you that will not only please
your customers but raise your Lottery profits too! The California
Lottery is celebrating it’s 25th year in business and we’re
introducing new Scratchers® games with $50 million more in
prizes every month. By the end of September, the Lottery
will have issued higher prize payout Scratchers games
representing nearly 80% of the Scratchers inventory available for your
customers to purchase.
As our retailer, you and your customers will be able to cash
in on a variety of games including a $1 Scratchers Wild Doubler
game, a $2 Scratchers Double Match game and a $5 Scratchers
Stacks of Cash game. These exciting games have second chance
prizes including our 25th Anniversary Bonus Draw. Simply logon to
http://replay.calottery.com/. And if your customers are ready for
football, we’ve got a new relationship with the NFL featured in our
NFL Scratchers games. See page 1 for more information on these
exciting games.
Assembly Bill 142, signed by Governor Schwarzenegger last April,
gave the Lottery the flexibility to pay out more money to players. With
this legislation, the Lottery can now return 87% of revenue to the public
either in the form of prizes or payments to education. The remaining
13% is allotted for administrative expenses.
Other US lotteries have demonstrated how increased prize payouts
contribute to higher sales, and as a result, higher contributions to education.
With this change and your sales expertise, the California Lottery forecasts
that contributions to our public schools could increase by $34 million above
last year’s amount.
Thanks a million!
MICHAEL BRENNAN Deputy Director of Sales and Marketing
Dear Retailer,
East Bay District OfficeRobert MorganMona SandersBilly DangJohn ReadingSteve RidgleyGeorge KarkazisLesa Ross
GTECHJoe CordGeri KellerJohn Mazella
MarketingJose O’CampoEli Marquez
CORP. COMMUNICATIONSDoug Wood
DESIGNPage Design Group
FOR MORE INFORMATION CALL1-800-LOTTERY TDD 800-345-4275
PROBLEM GAMBLING HELPLINE1-800-GAMBLER
COVERCover Photography by Norma MinasRight to Left: Retailers Aqua Puro, D & K Liquor and World’s Fare Donuts Get a Lottery Makeover.
WWW.CALOTTERY.BIZ
The California Lottery is teaming up with
California’s NFL football franchises to put
out fantastic new Scratchers tickets
that give players a chance to win
unique prizes like season tickets,
luxury suites and tailgate parties, while
also giving players the opportunity to win
instant cash.
Here’s how the new tickets work —
players scratch off the 12 helmets on the tickets,
which feature team logos and pictures of each
team’s stadium, to see if they have won cash prizes
of up to $20,000.
But even if they don’t win the first time around,
there is nothing to worry about. All of these tickets can
be entered on our new football promotional web site —
www.calottery.com/football — which gives players a
second opportunity to win great prizes, including:
Are You Ready for Some Football…Scratchers?
�� Trips to training camp
�� Dinner with a Raiders legend
�� Jerseys and helmets signed by current 49ers, Raiders and Chargers players
�� Season tickets for the 2011 season
�� A trip for two to the 2011 NFL Draft
�� VIP road trips
�� VIP suites
�� Tailgate parties
Want to maximize your sales and profits? Activate
$5 games and display them for your customers.
Add $5 Scratchers to your “ideal mix” and you’ll
benefit with:
�� Lower handling costs
�� Higher commissions from the sale of a $5 game
�� More prizes for your players
�� Exciting top prizes
Lottery sales trends in other states
show higher prize payout Scratchers
tickets are a hit with players.
The California Lottery’s $5
Scratchers games offer BIG
top prizes for your players.
Current $5 Scratchers tickets
are Millions In Cash, with
$1,000,000 prizes, and
$100,000 Riches and Stacks
of Cash each with a $100,000
top prize.
Use $5 games to increase your sales and
keep your customers coming back for more!
New $5 Dollar Games Increase Your Profits
Fans get a chance to play the Field Goal Frenzy game,
upload their fanatic photo and try their hand at face painting
while testing their knowledge of team trivia.
The Replay promotion began on September 3, 2010 at
8 a.m. and continues through November 28, 2010. Remind
customers that each non-winning ticket can only be entered
once and is eligible for each draw category. When a player
enters an NFL Football Scratchers ticket code, that specific
code is only eligible for the team prizes associated with that
ticket. No mail-in entries will be accepted.
The site also keeps a running tally of how many fans
entered tickets with each team’s logo on them. Last season
the 49ers reigned supreme. Which team will come out on top
this year? Be sure your players support their favorite!
www.calottery.com/football
NEW GAMES
SALESMAKER September/October 2010 1
1
Extreme makeover retailers are approaching the finish line! In the next few pages you’ll see the three final retail locations nominated by their Sales Reps and voted as the best choice for a makeover in each of the Lottery’s nine districts.
C H E C K O U T T H I S I S S U E ’ S
EXTREME MAKEOVERS!
1
3
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2 SALESMAKER September/October 2010
15 HOT TIPS TO HELP SALES SOAR Are you looking for a way to boost your sales? Use this list of tips to determine what simple changes you can make to increase sales for your business and bring in new customers.
1. Activate, Activate, Activate! New games sell, sell, sell.
2. “Would you like a Lottery ticket?” Asking for the sale is an effective sales tool.
3. Carrying multiple $5 games increases sales.
4. Work with your Sales Rep to stock the “ideal mix” of games and watch sales grow!
5. Study your Retailer Product Plan for ticket placement. Keep your ticket displays full and use up-to-date Scratchers® schematics.
6. Tell your players about higher prize payout Scratchers® from the California Lottery! More prizes and winners are adding fun and excitement to the games.
7. Create a winner awareness area by displaying the tickets of past winners to create excitement for playing Lottery games in your store.
8. Keep your ticket displays full and use up-to-date Scratchers® schematics. See your RPP!
9. Tap into the California Lottery’s 25th anniversary game.
10. Keep your store windows free of clutter; take down outdated advertisements, signs, posters, stickers, etc.
11. Schedule a customer appreciation day, giving your Lottery players a special incentive for buying tickets — win a free t-shirt, candy bar, or soft drink with their $5 ticket purchase.
12. Connect with customers by greeting them by name and making a point to remember their favorite Lottery games too!
13. Learn about new games and promotions so you can inform and help your customers make their purchases.
14. Word of mouth really works! Create a “buzz” for all winners big or small. It builds excitement.
15. Keep key information available for customers such as current jackpot amounts, the Lottery’s web site address www.calottery.com and the phone number and address of the nearest Lottery office.
The final three stores are World’s Fare Donuts in
Hayward, D & K Liquors in Thousand Oaks and Aqua
Puro in Pomona.
The factors for judging a winning performance are
an overall percentage of sales increase, overall costs of
the makeover and return on investment, and percentage
of increase in retailer’s trade style position within the
district or Sales Rep territory.
Other considerations include any business-building
creativity/innovations, i.e. providing a computer area for
entering Replay tickets.
The grand finale is coming soon — just in time for
the Lottery’s 25th Anniversary.
1. It’s all about teamwork to accomplish hard work. Chief, Northern Field Operations Stacy Matsunami and District Sales Supervisor James Scott clean-up at Aqua Puro.
2. Steven Fontenette and Mario Flores at D & K Liquors prep the store for its makeover.
3. The World’s Fare Donuts makeover went smoothly as District Sales Rep Lesa Ross helped get things ready.
4. The Lee brothers work closely with their family members and District Sales Rep Dan Bristol to keep their business humming.
5. Bob Blank and Joe Cord used their expertise to hang additional POS at D & K Liquors.
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SALESMAKER September/October 2010 3
The excitement of a World Cup USA soccer game along with
whirling washers and hot dryers was not enough to keep
customers away from Aqua Puro. This Lottery retailer in a
strip mall in Pomona knows, in a big way, how to keep
customers flowing through the doors.
The “extreme makeover” of this location started with
top to bottom cleaning. Once the location was sparkling,
improvements included adhering large window and door logo
decals both inside and outside the store, a logo wrap on the
large water dispensing counter, laying down floor decals,
upgrading their Hot Spot monitor and extending the Lottery’s
presence into the adjoining laundromat with a large back-lit
jackpot sign. Free-standing signs were installed around the
busy parking lot areas to let customers know they were close
to a “Lottery destination” retailer!
Aqua Puro Cleans Up ON LOTTERY SALES
1 2
BEFORE
AFTER
1. Aqua Puro owners and Lottery makeover team members proudly posed in front of the store after its “extreme makeover” was completed.
2. District Sales Supervisor James Scott knows the value of partnership with Lottery retailers like Mr. Lee.4 SALESMAKER September/October 2010
RETAILER MAKEOVERS
It’s good business for owner Quang Lee who said,
“Lottery products have exceeded our expectations. We
would likely not be in business if it wasn’t for our Lottery
sales. They get better every day!”
The enthusiasm of the owners and their customers is
contagious and locals enjoy shopping for their Lottery tickets,
filling their water bottles and doing some laundry, too!
Customers visiting Aqua Puro to fill water jugs, do the
laundry, rent a DVD, or purchase a telephone card, are
presented with a prominent display of games—adding the
right level of excitement to a busy day. As customers go
about their normal routines of loading up the laundry, or
checking out the afternoon soaps on the large flat-screen
television, they can also take a few moments to buy their
favorite Scratchers tickets.
3. District Sales Rep Dan Bristol cleans the windows over the dryers to make it easy to install window graphics.
4. Loyal customers stand in line at the ambassador event following the makeover.
5. A place to post winning tickets is motivation for shoppers to buy Lottery products.
6. The Lottery makeover team celebrates after working to get this location in tip top shape!
7. Floor graphics are a great way to maximize valuable “real estate” in your store.
BEFORE
AFTER
BEFORE
AFTER
3
4
5
7
6
SALESMAKER September/October 2010 5
Staying in touch with customers is a priority for the owners of
the quaint D & K Liquors in Thousand Oaks. The Patel family,
including grandparents, provide their customers with the best
service possible and that includes using technology.
Besides a large flat-screen television broadcasting messages
about the store, customer appreciation events and Facebook
presence, Alpesh Patel dedicated a corner of D & K Liquors
for customers to register their second chance Replay tickets
or visit the Lottery’s public web site.
D & K Liquors’ extreme makeover included lots of scrubbing,
cleaning, painting, placement of banners and repositioning of
jackpot signs. Bright Lottery logo decals were placed on
existing signs outside the store. Inside, window decals, long
refrigerator-case toppers, and a brand new look for the front
counter made the store look clean and inviting. Last but not
least, D & K Liquors’ top feature is a Lottery winners’ corner
1
2
STOREFRONT BEFORE
STOREFRONT AFTER
Tech Savvy D & K LiquorsUSES INTERNET TO PROVIDE GREAT SERVICE
AFTER
6 SALESMAKER September/October 2010
RETAILER MAKEOVERS
with a bulletin board featuring all store winners and a
computer dedicated for customers to use to enter their
non-winning tickets for the California Lottery’s Replay
prizes! Now that’s a reason to shop at this store!
Winners are showcased at the busy little store and loyal
customers are always dropping by just to say hello. The
retailer even ordered a hundred clocks to give away to
those customers chosen for a second chance draw.
Customers on social rating internet site, Yelp, write about
their great customer service. This is one place you can call
to purchase a boutique liquor item, have it wrapped and
delivered to your best friend on their birthday! Wow, that’s
the kind of service that keeps your loyal customers
coming back for more.
4. This $20,000 Scratchers winner came by to celebrate his win and received a wall clock from D & K Liquors’ owner for his loyalty in purchasing and cashing tickets.
5. The refrigerators got a makeover with custom signage.
6. A special customer corner allows Lottery players the opportunity to register their Replay tickets at http://replay.calottery.com/.
7. The California Lottery’s team worked closely with the owner of D & K Liquors to complete this extreme makeover.
BEFORE
WINNER’S WALL AFTER
AFTER
AFTER
1. It’s a family affair for D & K Liquors.
2. Makeover group from the Van Nuys District knows the value of teamwork.
3. The counter gets a touch up by District Sales Rep Bob Stillman before the Lottery custom counter POS is installed.
3
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5
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7
SALESMAKER September/October 2010 7
Displaying the largest, sweetest donuts in the East Bay area
isn’t the only reason that customers come from far and near
to visit World’s Fare Donuts. This donut store is a popular
destination for locals to meet up with friends and family to
enjoy the sweet fare and play the variety of Lottery games
offered. It’s plain to see by the clientele that they love to visit
and stay to play for awhile.
That’s why it was a no-brainer during this “extreme
makeover” to add a Lottery corner—a cool spot just for
Lottery-playing donut lovers. A second Hot Spot monitor was
also added for players to double their enjoyment. A large wall
covered with old plaques was cleaned and transformed into a
winning wall where all winning tickets large and small were
posted for everyone to see.
World’s Fare DonutsSERVES UP SWEET PROFITS
BEFORE
AFTER
World’s Fare Donut owner, with District Sales Rep Steve Ridgley; District Sales Supervisor Mona Sanders; and Lottery Sales Manager Robert Morgan.
Wow, what a difference in the exterior of World’s Fare before and after!
8 SALESMAKER September/October 2010
RETAILER MAKEOVERS
New point of sales to strengthen the Lottery’s product
presence was installed both inside and outside the store. Two
large MEGA banners were installed above the corners of the
store and could be seen from a busy nearby intersection.
Windows on both sides of the building were decorated with
the new brand. Inside, large windows were covered with
Lottery branded point of sale adding a bright reminder for
the steady flow of donut lovers to buy a Lottery ticket. Small
potted plants with the Lottery logo and Hot Spot playslips
were added to each table.
World’s Fare Donuts is definitely a “sweet spot” for
sampling Lottery games.
World’s Fare Donuts got a top to bottom cleaning. This included a custom new wall for winning tickets. And they’ve got lots of winners!
World’s Fare Donuts customers enjoy coffee, donuts and playing Lottery games. Check out the table graphics.
BEFORE
BEFORE
AFTER
AFTER
AFTER
BEFORE
SALESMAKER September/October 2010 9
It could have happened anywhere in America, in any of 42
states and the thousands of terminals that sell MEGA Millions®
lottery tickets, but it happened on Friday, August 27 in the
sleepy seaside hamlet of Morro Bay, smack in the middle of
California’s central coast. Magic struck twice—once for the
winner of the $135 Million jackpot and once for the retailer
who sold the ticket and received $675,000 or a bonus of
one-half of one percent.
Chuck Harper, a Lottery retailer since 1988, sold the
winning ticket at his Bottle Liquor & Deli located in the heart
of the village. It’s safe to say that he is ecstatic about his
$675,000 jackpot bonus. “What if I had pressed the button
on the terminal one second later,” said Harper, “Would we
still have sold the winning Quick Pick® ticket?” This is the
largest prize ever sold in the small town of 10,000 residents
and in the top ten of California Lottery jackpots in 25 years.
Harper’s sales have increased considerably since the
lucky ticket was sold at his store. “Getting this bonus will
give us a chance to upgrade the front of our store,” said
Harper. “Even before this, I’ve been able to use the profits
from our Lottery sales to pay for one or two people’s wages
at the store. It’s really paid off for us.”
As for the big winner, the town is still waiting and
wondering. People up and down Main Street are asking each
other, “Why wouldn’t you claim your winnings?” How long
would you wait to claim YOUR millions?
Magic Strikes Twice at Morro Bay’s Bottle Liquor & DeliJACKPOT BONUS IS $675,000!
1. Chuck Harper shows off the large commemorative check given to him after he sold the winning ticket.
2. Chuck Harper plans to invest his incentive check on store upgrades, like the recent addition of the deli.
3. Bottle Liquor & Deli in downtown Morro Bay sold the sixth largest jackpot in Lottery history.
4. Owners of the Bottle Liquor and Deli, Chuck Harper and his parents Joy and Jack Harper received a $675,000 jackpot bonus.
5. Chuck Harper celebrates at a well attended ambassador event in his store with his District Sales Rep Cameron Kay and District Sales Supervisor Wendi Doyon.
1
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10 SALESMAKER September/October 2010
RETAILER NEWS
Fire up your Lottery sales—activate new Scratchers® games immediately.
Displaying new tickets gives customers more options to choose from,
but they can’t be played unless they’re activated! Customers enjoy the
excitement of new games, and will appreciate the variety you display.
Check out the latest Retailer Product Plan (RPP) to see what new
games are available to you. Follow the diagram to properly place
the new games in your vending machines and incounter displays.
ACT IVATE NEW SCRATCHERS® Watch Your Sales Go Up, Up, Up!
CLAIM DATE WINNER TICKET RETAILER ADDRESS RETAILER COUNTY RETAILER CITY
07/02/10 Susan O'Neill Club House 628 Camino De Los Mares Orange San Clemente
07/19/10 Pablo Ramirez Tastio Donuts 833 Cesar Chavez Boulevard, Suite A Los Angeles Los Angeles
07/28/10 Patricia Zalpis Foods Etc. 5290 Lakeshore Drive Lake Clearlake
08/05/10 Ronnie McCauley Kinly Donuts 2000 West Manchester Avenue Los Angeles Los Angeles
08/11/10 Joseph Parr H&M Food Store 2501 Jackson Ave San Joquin Escalon
08/13/10 Raymond Carrillo Pat Holden Liquor 860 South A Street Ventura Oxnard
08/18/10 Monica Talla Chevron Foothill 8801 Foothill Boulevard San Bernardino Rancho Cucamonga
08/23/10 Marcos Zamora CVS Pharmacy 30640 Rancho California Road San Diego Temecula
08/25/10 Sukhdev Gill Mel's Mini Mart & Liquor 1500 Kiely Blvd Santa Clara Santa Clara
09/01/10 Catherine Kay Happy's Liquor 12 West Sierra Madre Blvd Los Angeles Sierra Madre
Work with your Lottery Sales Rep to make sure you have the proper “ideal mix” of Scratchers games for your customers. Activating new games are the spark that will heat players up and ignite your sales.
SALESMAKER September/October 2010 11
WINNER TICKET RETAILER RETAILER CITY ENTRY TICKET
Larry Koch Valley Market San Diego Fantasy 5
Svend Mejdal Village Liquors Los Gatos TV Show #620
Frank Ganz Lucky #762 San Jose TV Show #640
Albert Stefani Chevron #1760 San Francisco TV Show #620
Moon Chung La Brea Valero Los Angeles TV Show #590
Beverly Brewster 7-Eleven #2173-18867J Los Angeles TV Show #590
Keo Koung Lee Heng Market Long Beach TV Show #640
Albert Vooskanian Circle K #76 Apple Valley Fantasy 5
Virginia Esparza 7-Eleven #2133-13847A Sylmar TV Show #640
Wilfred Rouse Big O Liquor Los Angeles TV Show #640
Joel Lopez The Happy Jug Fallbrook TV Show #620
Minda Ulep Familia Ranch Market Long Beach TV Show #620
Monica Cruz Quik Stop #2149 Brentwood TV Show #640
Anthony Acevedo Chevron #1476 Yucaipa TV Show #640
JULY & AUGUST’S CHEVY MALIBU WINNERS!
WINNER AMOUNT TICKET RETAILER RETAILER CITY ENTRY TICKET
Bessie Murray $ 84,000 7-Eleven #2366-14335 San Bruno TV Show #640
Mark Mondragon $ 60,000 7-Eleven #2368-14258 Salinas TV Show #620
Jesus Baltazar $ 60,000 Arco & Mini Market Santa Ana TV Show #620
Apolinar "Polo" Echeveste $ 40,000 Dales Liquor Carson TV Show #640
Harbir Baadh $ 25,000 White Lane Chevron Bakersfield TV Show #620
Sukhdev Gill $ 25,000 Mel's Mini Mart & Liquors Santa Clara TV Show #620
Cecilia Caravantes $ 20,000 Allans Market Wine & Lotto Port Hueneme TV Show #640
Tom Ta $ 20,000 Mira Mesa AM/PM San Diego TV Show #620
Jose Santmaria $ 20,000 Stop & Save San Jose TV Show #620
Karen Blankemeier $ 19,000 Vons Grocery #1987 Santee TV Show #620
Norma Manmano $ 17,000 Steve's Drive-In Liquor Harbor City TV Show #640
Robert Rodriguez $ 17,000 7-Eleven #2171-15960C Chino TV Show #640
Allen "Al" Stanko $ 15,500 USA Liquor El Cajon Fantasy 5
Gloria Tovar $ 15,000 George's Liquor Los Angeles TV Show #590
David Gonzalez $ 15,000 Major Liquor Los Angeles TV Show #640
JULY & AUGUST’S BIG MONEY WINNERS!
The “Make Me a Millionaire” television show is no longer televised.
How Sweet Are New Scratchers Games?Engage your customers with
Lottery games when you “keep
it in the sweet spot.” As a candy
shop would keep its shelves
stocked and showcased with
new and exciting goodies —
activate your Scratchers® and
display them in your vending
machine and incounter as soon
as you receive the shipment.
That way, your customers can
easily find their favorite games,
and new ones too.
Excitement is created for
your players when new games
are offered each month. Take
advantage of their interest and
see what happens to your sales!
Create a “sweet spot” for your
players to easily access.
12 SALESMAKER September/October 2010
HIGHER PRIZE PAYOUT SCRATCHERS®Now with over $50 million more in prizes every month!
Use this quick reference guide to answer customer
questions about the new higher prize payout Scratchers.
1. What are High Prize Payout Scratchers?
Beginning with the Millions in Cash Game introduced in June
2010, all new Scratchers launched since have been higher
payout games with more cash prizes — adding up to $50
million more in prizes every month.
2. How does the Lottery provide over $50 million more in prizes every month?
A new law, known as the Prize Payout Flexibility Bill,
allows the Lottery to offer players more prize money in all
Scratchers games compared to before the law was passed.
3. Is there one giant prize of $50 million every month?
No. The prizes are spread across all Scratchers games
adding up to over $50 million every month.
4. Are the odds of winning better?
Yes. The odds of winning a prize are better than they
were before.
5. Does this affect the Lottery’s contribution to education?
Yes. Better Scratchers with more prizes will increase
sales thereby increasing contributions to education.
Cash in on an economic stimulus to help your Lottery
business profits. If you are wondering how you can earn more
from your Lottery business, we’ve got the solution. Check out
how to display the hottest selling games in this month’s
Retailer Product Plan (RPP). By popular player demand, feature
$5 games in the “high five row” (top row in vending machines
or the row closest to customers in the in-counter displays).
Grouping games by price point helps players make that
purchase decision easier and quicker. Higher prize payout
tickets, $5, $3 and $2, games are displayed at the top
or upper rows of your vending machine and incounter.
The California Lottery’s new Scratchers will “WOW”
your players with more prizes. That means your players
will want to buy more tickets. The more your players win,
the more they play and that means higher profits for
your business.
It’s simple! More Prizes + More Winners = Higher Sales.Our new Scratchers are “way better!”
Your Customers Will
LOVE THESE GAMES!
PRICE POINT PAYOUTS
$1 games 56-58%
$2 games 60-62%
$3 games 62-63%
$5 games 66-67% (Overallpayoutisabout61%)
Do your customers know that Scratchers are now
better with over $50 million more in prizes every month?
The California Lottery launched a statewide advertising
campaign on September 13th that will run through
October 17th. The advertising campaign focuses on
creating awareness about the new higher prize payout
Scratchers. The supporting media elements are: TV,
radio, digital outdoor billboards, online banner ads,
radio promotions and in-store POS.
SALESMAKER September/October 2010 13SALESMAKER September/October 2010 13