2. Are the 4P’s in balance?

3. Camelot’s use of the 4P’s

4. The National Lottery - Overview 95% of the UK population recognise logo £5bn+ brand (and in steady growth) The National Lottery owns 4 of the top 10 biggest FMCG brands in the UK Coca Cola, Warburton Bread, Walkers Crisps, Hovis, Cadbury DM… Raised £24bn in good causes £36bn in prizes, £8.8bn in lottery duty and £3.7 for retailers in commission Created 2,300 millionaires 73% of adults play our games The National Lottery has been the biggest civic re-generation programme since Victorian times.

5. Camelot’s use of the 4P’s

6. How Camelot uses the 4 P’s and the importance of the 5 th P…..

7. Product Price Place Promotion People

8. Four strategies Strengthen the National Lottery brand and give it universal consumer appeal Enhance the core games range then diversify into new products to better satisfy consumer needs Give consumers easy access to the National Lottery brand wherever and whenever they want to play Build direct dialogue with consumers alongside traditional mass comms. StrategyStrategy

9. Products:Optimising and then diversifying our product offering. Price:Introduction of new price points across the TNL portfolio (focus on core DBG/Instants) Place:Multi-channel capability with an optimised retail offering and a dynamically growing e-commerce platform (wherever/whenever ) Promotion:Optimised marketing activity to deliver relevant marketing messaging/promotions through the most effective media (OME)

10. Scratchcards IWG’s Draw-based Games Instants

11. Draw-based games: Lotto, EuroMillions and Thunderball (3 core games) Distinct and differentiated positioning (price point, prizes, branding…) Secondary games meet frequency, behavioural and mechanical needs Instant Wins: Scratchcards at £1, £2, £3 and £5 Instant Win Games 50p to £2 Next Generation of lottery games: New Frontier New ways to play, new means of playing Essential to keep games relevant to changing consumers lives Channels and new technologies will shape the future of games

12. Product change allows for step change in sales Makes players reappraise their relationship with our brands –Behave differently to spend more, play more, or just play when they didn’t before. Change must be consumer insight led (clear benefit) –Increasingly important in the New Normal Renovation –where incremental growth exists it is more profitable –easier, quicker and minimises business complication. Innovation –to deliver on new differentiated needs, where more profitable sources of growth have been exhausted.

13. Keep it simple and eliminate negatives Have a clear idea of your portfolio direction, –and how it fits together – consumer, shopper, channel, systems etc. Create business choice –The process needs to create business choices, make the most of the opportunities, be quick, be thorough and create internal and external confidence Camelot adopts a 3C’s process to innovation –Consumer –Capability –Constraints

14. Beyond the Core £5bn Refresh & Optimise the Core Extend the Core Time Turnover RenovateInnovate Diversify

16. Price Differentiation – a key driver in the UK TNL marketing mix Players will pay more for a better return –Bigger jackpots –More entertainment –More chances to win Little price differentiation in TNL portfolio until 2004 –Introduction of EUML –Heavier push into higher price point Scratchcards –Both major growth drivers in the last 6 years Portfolio planning by price will continue –EUML up to £2 in Nov 2009 –Thunderball strengthening at £1 in May 2010 – moving towards ‘value’ –Recession orientated low price ‘chances to win’ potential Scratchcards growth of £5 and IWG £2. Price Differentiation – a key driver in the UK TNL marketing mix Players will pay more for a better return –Bigger jackpots –More entertainment –More chances to win Little price differentiation in TNL portfolio until 2004 –Introduction of EuroMillions –Heavier push into higher price point Scratchcards –Both major growth drivers in the last 6 years Portfolio planning by price will continue –EuroMillions up to £2 in Nov 2009 –Thunderball strengthening at £1 in May 2010 – moving towards ‘value’ –Recession orientated low price ‘chances to win’ potential Scratchcards growth of £5 and IWG £2.

18. PlacePlace RETAIL 28,700 outlets (or 100,000+) Terminal, Dispenser, Playstation Split across industry sectors – Multiples, Independents – Convenience, Forecourts, Supermarkets….. Segmented estate – Value and location Extended means of play – FastPay EPOS and Cards Obsessive execution of brand strategy – PIE – Supply Chain

19. PlacePlace DIRECT Over 12% of sales total sales c.6m registered users 78% retention of players 8m unique visitors to the website Sophisticated acquisition and retention tools – Affiliates programme – Optimised Search – CPA models – Partner Unlocking and enabling direct marketing opportunity – opt in marketing comms – beginning of one-to-one marketing 3, 6, 9 principle

20. The rise of multi-channel Multi-channel Lottery players expect to have anytime/ anywhere access Online access is part of the “new normal” – digital/ online is part of the players’ routine and we need to follow them Online distribution is therefore growing… …but having lottery products easily accessible for players’ to find, use and consume, across channels, is at the at the heart of Camelot’s commercial strategy UK National Lottery products are therefore available in-store; over the internet; through continuous direct debit and on mobile PlacePlace

21. PromotionPromotion

22. The rise of multi-channel Promotional mix Above the line media (drive awareness and footfall into retail) Channel media (below the line) Retail Online One-to-one and direct media In-store and on-line promotions prize competitions BOGOF third party Acquire and Retain players into our brands PromotionPromotion

23. The rise of multi-channel What is important Consistent messaging across all consumer touch-points IMAP process adopted at Camelot Ensure a cycle of Insight, Strategy, Planning, Execution is followed Holistic brand management followed PromotionPromotion

24. FCOM – vision for the commercial dept Holistic Insight ‘Who & Why’ The Facts! (ROI) Foresight Brand Champion Category Strategy P&L Performance Strategy Integrated Channel Plans - One plan, visible to everyone Perfect Execution- Consistent Brand Message & Consumer Experience at all Touchpoints Execution Insight & Foresight Planning Category Teams Channel Teams Consumer & Channel Marketing Planning Team Commercial Insight Team Promotion – Commercial cycle

25. Promotion – EuroMillions Targeting all adults – new and existing players Research confirmed that EuroMillions players tended to Chase the Jackpot £2 increase - Worth the money - Makes Lotto good value Research supported “Guaranteed UK Millionaire Every Week” Positive change to EuroMillions - Makes EuroMillions more interesting to play - Guaranteed at least one “big” winner from the UK every week Communications -Needs to inform, excite and retain consumers -Giving customers what they want, and explaining it in a way that is is easily understood Change to EuroMillions - Make EuroMillions more interesting to play - Guaranteed at least one “big” winner from the UK every week

26. Promotion – EuroMillions

28. Campaign look & feel

30. Launch – Retail 7 th – 28 th November

31. Launch Home & Launch Landing Page

34. Products:Optimising and then diversifying our product offering. (Napoleon, Thor, Passkey and beyond to new game territories) Price:Introduction of new price points across the TNL portfolio (focus on core DBG/Instants) Place:Multi-channel capability with an optimised retail offering and a dynamically growing e-commerce platform (wherever/whenever ) Promotion:Optimised marketing activity to deliver relevant marketing messaging/promotions through the most effective media (OME) People:Energised marketing & sales capability to deliver our six point commercial plan. Our consumer and our stakeholders

35. Camelot staff who deliver our plans Our stakeholders: Regulator Government Good causes we represent Our retailers The consumer