Attachment 8C
Promotion Project Proposal
[FY14: Holiday – “Dashing Through The Snow”]
Document History
Version
Description
Author
Date
0.1
Initial Draft
Vuilcott
7.26.13
0.2
Retailer Incentive
Vuilcott
7.30.2013
0.3
Updates and added Summary
Vuilcott
8.8.2013
0.4
Update Retailer Incentive
Vuilcott
8.14.2013
Action Items
Dept.
Description
Date to be
Completed
Completed by
[Author]
SUMMARY : DASHING THROUGH THE SNOW
BACKGROUND DETAILS:
- First promotion where both Scratchers and Draw Games are included in the same “Second Chance” promotion
- Eligible Scratchers games are all of the Holiday-themed tickets
- Eligible Draw Games are tickets purchased and have draws that occur during the promotional dates
- Scratchers games include a $1, $2, $3, $5 and $10. Printed by Pollard, the $3, $5 and $10 on FX paper.
- Scratchers games will start 10/21. Promotion will launch 10/19 to coincide with the Mega Millions re-launch.
PROMOTION DETAILS:
- Promotion Dates are: 10/19 – 1/7/2014
- Second Chance promotion will have 4 drawings, awarding in each drawing:



4 Grand Prize Winners (12 total) – Warehouse Dash. (no cash option)
25 First Prize Winners (100 total) – $1,000 Shopping Spree.
100 Second Prize Winners (400 total) – $500 cash.
- Four drawings: 11/7 (Draw #1), 11/27 (Draw #2), 12/19 (Draw #3), 1/9 (Draw #4)
- Entry is online only. Holiday is our largest campaign, so we may receive pushback, but we will monitor.
- When players enter Scratchers tickets online, they will earn points and automatic entry into the promotion.
- When players enter Draw Games tickets online, entry will be similar to “Easy Entry” – the system we had before
PFP. IT will build a database to house the entries, and we will keep ownership of them.
RETAILER INCENTIVES:
- Two retailer incentives will run Oct. 19 – Jan. 4, 2014
- Statewide Ticket Entry Drawing. Retailers will receive entries based on their tickets being entered into the
player promotion by their customers. Drawing will occur at the end to award a grand prize of a Warehouse Dash
and 10 $500 cash prizes.
- Route-based “Half-Way There” contest.
Half-way through the contest, retailers will earn prizes based on how
many entries they currently have into the Statewide Ticket Entry Drawing contest. The top 5 retailers on each
route who have the most entries will receive 15 long-sleeve t-shirts for their staff.
BREAKEVEN/COSTS/FORECASTED SALES:
Projected Breakeven
Promotion Costs to Recover
Profit %
Extra Sales needed to Breakeven
Average
Weekly
Totals
$730,473
24.87%
$2,937,744
$244,812
Sales FY 2013
$256,940,557
$21,411,713
Total FY2014 Breakeven Sales
$259,878,301
$21,656,525
1.14%
$244,812
$262,156,647
$21,846,387
$2,278,347
$434,674
% Growth Needed to Breakeven
FY2014 Projected Sales
+/- Projected Sales to Breakeven
% +/- Projected to Breakeven
0.88%
% +/- Projected to FY 2013
2.03%
Page 2 of 9
1. Overview
1.1. Recap / Recommendation from previous year(s)
This is the first year Missouri Lottery will offer its players the opportunity to enter any
Draw Games ticket purchased during the promotional dates into the Holiday promotion.
The goal is true product integration from the beginning, the time players purchase their
tickets. Entry into the promotion will be per dollar amount, therefore, a $5 ticket will
equal 5 entries into the promotion.
1.2. Ticket Start
Inside Sales start date is Oct. 18, 2013. Deliveries begin Oct. 21, 2013
1.3. Scratchers Ticket Information
The Holiday season is a great time of year for the Lottery because of the ‘Scratchers As
Gifts’ campaign. To keep the holiday Scratchers looking fresh each year, Pollard is printing
our $2, $3, $5 and $10 Holiday Scratchers tickets with their one-of-a-kind Scratch FX
paper, which is similar to holographic paper. This new printing technique will add a shiny
cover to our tickets just in time to excite our players during the Holiday season. Each
ticket will gleam with a different texture of holographic-like paper.
The following five holiday-themed Scratchers games are scheduled to be introduced in the
sixth instant ticket game launch. All tickets listed below are eligible for entry into the
second chance promotion detailed in section II.
Price Point
Game
Number
$10
945
$5
946
Happy Holidays
3,000,000
15,000,000
$3
948
Bearing Gifts
3,600,000
10,800,000
$2
949
Santa Paws
5,280,000
10,560,000
$1
950
Secret Santa
8,400,000
7,420,000
60,580,000
Game Name
Ticket
Quantity
Season's Greetings 1,680,000
Total
Sales
16,800,000
1.4. Communication Vehicles / Support
P. O. S.
Media
Media Value Added
Website
Social Media
Retail Promotions
Publicity / Events
Clerk Tip Card, Gemini Brochure Holder Insert, HTP brochure, LCD
slide, mini poster, Playcenter Header, Playcenter Insert, Register
Tent, Retailer Sell-in, Static Cling, Winners Template
TV and Radio
“What’s New” box on homepage, Promo Module, Details, Rules and
Winners page.
See section 3.
See section 3.
None specific to promotion.
Page 3 of 9
1.5. Known Risks / Issues / Liabilities
Risk / Issue
Statement
Response /
Action Taken
2. Promotion Overview
2.1. Promotion Dates
October 19, 2013 – January 7, 2014
2.2. Promotion Description
The second chance promotion planned for this Holiday season is much greater than in years
past because of the addition of the Draw Games. Including the Draw Games into the Holiday
Scratchers campaign allows us to award more winners and higher prizes.
Since this promotion is the first of its kind, it needs a prize just as grand. The top prize in
the promotion will be trips to Chicago were players are guaranteed to participate in the
“Warehouse Dash” events and have the chance to earn up to $15,000 in merchandise! The
trips to Chicago will have all accommodations and spending cash. The first and second level
prizes will be $1,000 and $500 cash, respectively.
There will be four different drawings awarding more than 500 winners total (512). In each
drawing, we will award three winners of a Warehouse Dash, 25 winners of $1,000 cash and
100 winners of $500 cash.
Entry for the promotion will be online only. Scratchers entrants will need to enter through
their My Lottery Points For Prizes™ account. Draw Games entrants will need to enter on
MoLottery.com.
The Warehouse Dash trip will be the weekend of March 21, 2014. The trip includes airfare
for two, lodging for two (one-room), ground transportation in away city, dinner Friday
evening, all the merchandise the winner and guest can grab in 90 seconds in the Dash Event,
shipping of merchandise won and $500 spending money.
2.3. Draw Dates and Deadlines
ENTRY DEADLINE @ 5 p.m.
DRAWING DATES
DRAWING #1
Tuesday, Nov. 5, 2013
Thursday, Nov. 7, 2013
DRAWING #2
Monday, Nov. 25, 2013
Wednesday, Nov. 27, 2013
DRAWING #3
Tuesday, Dec. 17, 2013
Thursday, Dec. 19, 2013
DRAWING #4
Tuesday, Jan. 7, 2014
Thursday, Jan. 9, 2014
**Scratchers begin Oct. 21, 2013
**Promotion starts Oct. 19, 2013 with Mega Millions re-launch
Page 4 of 9
2.4. Prize Description
Grand Prize: Warehouse Dash. Three (3) prizes awarded per drawing; twelve prizes
awarded total. This prize includes a trip to Chicago where the winner and one guest will get
90 seconds to go on a “dash” through MDI’s merchandise warehouse facilities. The trip
includes travel for two, ground transportation, lodging, meals, spending cash and
merchandise prizes the winner and guest can grab from the dash! The Missouri Lottery will
pay standard federal and state withholding taxes for the grand prize based on the total prize
value. The winner will be responsible for any additional applicable taxes. No cash option is
available.
First Prize: $1,000 cash. Twenty-five (25) prizes awarded per drawing; 100 prizes
awarded total. The Missouri Lottery will pay standard federal and state withholding taxes
for the first prize based on the total prize value. Winners will be responsible for any
additional taxes.
Second Prize: $500 cash. One hundred (100) prizes awarded per drawing; 400 prizes
awarded total. Winners will receive a check for $500 the week following the drawing. No
taxes are paid on this prize.
SCRATCHERS HOLIDAY (FY14)
PRIZE
Warehouse Dash
NUM BER
OF
AM T. OF
WINNERS PRIZES PER
PRIZE COST PER DRAW DRAWING
$17,900.00
3
$53,700.00
TAXES
TOTAL
PRIZE
PACKAGE
COST
COST OF
PRIZES PER
DRAWING
TOTAL
NUM BER OF
DRAWINGS
TOTAL
NUM BER OF
WINNERS
TOTAL
PROM OTION
PRIZE COST
$7,311.27
$25,211.27
$75,633.80
4
12
$302,535.21
M DIs fee
Shopping Spree Gift Cards
$1,000.00
25
$25,000.00
$500 Cash
$500.00
100
$50,000.00
$408.45
$25,000.00
$1,408.45
$35,211.27
4
100
$140,845.07
$500.00
$50,000.00
4
400
$200,000.00
128
512
$128,700.00
$160,845.07
$668,380.28
2.5. Promotion Rules
3. Other Promotional Elements
3.1. Social Media
Page 5 of 9
3.2. Corporate Chain Account promotions
3.3. Event / Publicity
4. Promotion Drawing Information
4.1. Database Location
L:\Marketing\Promotions Databases\2013 Promotions\Holiday (FY14)
4.2. Promotion ID
The Promo ID is 31051.
4.3. Date of entries received from third party (if applicable)
DEADLINE TO ENTER (@ 11:59 pm) RECEIVE FILE FROM MDI
DRAWING DATES
DRAWING #1
Tuesday, Nov. 5, 2013
Wednesday, Nov. 6, 2013
Thursday, Nov. 7, 2013
DRAWING #2
Monday, Nov. 25, 2013
Tuesday, Nov. 26, 2013
Wednesday, Nov. 27, 2013
DRAWING #3
Tuesday, Dec. 17, 2013
Wednesday, Dec. 18, 2013
Thursday, Dec. 19, 2013
DRAWING #4
Tuesday, Jan. 7, 2014
Wednesday, Jan. 8, 2014
Thursday, Jan. 9, 2014
5. Retailer Incentive
5.1. Incentive Dates
October 19, 2013 – January 7, 2013
5.2. Incentive Description
There is two retailer incentives with this player promotion; a Statewide Ticket Entry
Drawing and a Route-based “Half-Way” Entry Contest.
Statewide Ticket Entry Drawing
During the same promotional dates as the player promotion (and listed above), all retailers
will earn entries into a drawing based on how many of their customers enter tickets online
into the corresponding player promotion, either through Points For Prizes or Easy Entry
that were sold at their location.
At the end of the promotion, Missouri Lottery will conduct a drawing from all entries
received, and award prizes based on order drawn to include a Warehouse Dash grand prize
and ten $500 cash prizes. The Warehouse Dash prize will be the exact same prize details as
listed in the player promotion.
The goal of this incentive is to reward the retailers who are promoting the loyalty program
to their customers, especially with the inclusion of Draw Games customers into the player
promotion. This is accomplished by awarding the retailers entries based on how many of
their customers are using the program with tickets purchased from their locations. Each
Page 6 of 9
ticket sold by the retailer that is entered either for points, or through Missouri Lottery’s
Easy Entry system, by a player equals one entry for that retailer into the contest. LSRs will
receive daily reports that can be downloaded through ‘getfiles’, which breaks down the
number of entries earned by each location. LSRs should use this information to report to
their retailers how they are doing and keep the retailers excite about continuously earning
more entries. This feature can also show how other retailers are performing on the same
route and where each retailer compares with their competition.
Route-based “Half-Way” Entry Contest
In conjunction with the Statewide Ticket Entry Drawing, a route-based “Half-Way” contest is
proposed to reward retailers half-way through the promotion that are excelling in earning
entries into the statewide drawing.
This contest will start on October 19 and run through the sales week of November 30, 2013.
The week of December 2, 2013, five retailers on each route will be awarded with a
merchandise prize pack based on how many entries they have earned into the promotion at
the half-way point. The retailers on each route with the greatest number of entries at this
point in the promotion will win a merchandise prize pack valued at under $75. Items in the
prize packs will be various sizes of a long sleeved t-shirt. The t-shirts will be designed
specifically for this promotion and denote that retailers who received this shirt won it
because they excelled in the promotion contest.
Retailers can win in both the Route-based “Half-Way” Contest and the Statewide Ticket
Entry Drawing.
5.3. Retailer Eligibility Rules
Retail winners are responsible for any applicable taxes on the prizes won.
Retailers may win in both the statewide drawing and the route contest.
Retailers are considered eligible for a prize in this promotion if they meet the following
criteria:
- Retailers must be an active Draw Games and/or Scratchers retailer (licensed and
currently selling product) at the end of the contest.
- Retailers must be in good standing with game accounting and have sold a ticket and
recruited their customer to enter that ticket into the “Dashing Through The Snow”
player promotion. For the purpose of this incentive, “good standing” is defined as being
current with sweeps/having no uncollected sweeps.
5.4. Incentive Rules
6. Goals / Objectives
The goals of the promotion are to:
 Support the Scratchers product during the holiday season when historically sales are high
and light or lapsed players purchase the product.
 Reward our Draw Games players with the same opportunity and entertainment as the
Scratchers players.
 Create player interest and provide player added value for purchase.
 Generate increased awareness for the Lottery and it’s products during a busy retail time.
Page 7 of 9


Incent retailers to continue promoting Lottery over their other products
Sales Goal of 3% throughout the duration of the promotion period.
7. Success Criteria
This section is based off of the goals provided in section 3. For the goals that are measurable, here
is how we can work to achieve the goals:
GOAL:
HOW TO ACHIEVE GOAL:
Sales Goal of 3% throughout the duration of the
promotion period.
Track this year’s sales and compare them to last
year’s sales. Goal is a 3% increase over last
year.
8. Cost / Breakeven / Sales Forecast
Project Budget
Promotion Prizes
$668,380
Retailer Incentive
Sales Category Contest
$20,000
Route Sales Contest
$15,000
$35,000
Advertising/P.O.S.Promo POS
$27,093
Radio, "Scratchers as Gifts" TV
Event/P.R.
Other
Grand Total
Projected Breakeven
Promotion Costs to Recover
Profit %
Extra Sales needed to Breakeven
$730,473
Average
Weekly
Totals
$730,473
24.87%
$2,937,744
$244,812
Sales FY 2013
$256,940,557
$21,411,713
Total FY2014 Breakeven Sales
$259,878,301
$21,656,525
1.14%
$244,812
$262,156,647
$21,846,387
$2,278,347
$434,674
% Growth Needed to Breakeven
FY2014 Projected Sales
+/- Projected Sales to Breakeven
% +/- Projected to Breakeven
0.88%
% +/- Projected to FY 2013
2.03%
Page 8 of 9
9. Promotion Project Execution
9.1. Internal Communication Process
Communicated To
Nancy Rollins /
Marketing Manager
Gary Gonder / COO
May Scheve /
Executive Director
Promotions
Committee
Sales Staff
Information Shared
Formal Proposal
Date of Communication
8.14.2013
Proposal Summary
Proposal Summary
Formal Proposal
8.26.2013
LSR Promotion Summary
9.4.2013
9.2. Department Roles and Responsibilities (when applicable)
Marketing: Submit initial promotion proposal and oversee completion of project. Conduct
promotional drawings.
Security: Review promotional drawing procedures, oversee all drawing activity, confirm
promotional winners as valid.
IT: Provide software needs as the approved project dictates necessary to its success.
Receive promotion entries from MDI and prepare entries ready for draw.
Game Accounting: Write checks and pay withholdings on all promotional winners. Provide
tax breakdowns on all promotional prizes in which Missouri Lottery pays taxes on.
Mailroom: Collect and sort mail-in and drop off entries for promotional drawings. Create
physical entries from the Web preliminary drawings. Utilize envelope stuffing machine to
send congratulatory winner letters when necessary.
Research: Provide assistance in determining measurable goals for player promotion and
ticket licensing. Provide requested research for project and expert advice specific to
promotional project. Provide forecasted sales and breakeven calculations as it pertains to
the promotion details. Provide sales reporting during promotional period for general
promotional needs, as well as sales tracking for any specific sales staff goals. Generally
responsible for final promotional analysis with assistance from product and promotions
managers.
Sales: Determine sales goals for Inside Sales and Lottery Sales Representatives and work
with Research to determine any reporting needs. Provide ongoing communication to sales
staff in regard to promotion status to maintain awareness of the campaign. Conduct Raffle
drawings as it relates to the draw and club games. Communicate and educate retailers on
the entire promotion project; to include, both player and retailer portion of the promotion.
Page 9 of 9