KENTUCKY LOTTERY CORPORATION REQUEST FOR PROPOSALS (RFP)
Creative Development and Production Services 2. Media Planning and Buying Services
PROPOSAL DUE DATE: January 6, 2023
PART VI – SCOPE OF WORK
6.1 BACKGROUND We are the Kentucky Lottery Corporation! We’re very proud of our state and the many beautiful things it has to offer such as beautiful bluegrass fields, mountainous views, and thoroughbred horses. We consider ourselves to be forward-thinking, creative and fun! Our mission at the Kentucky Lottery is very clear – we fuel imagination and fund education for ALL Kentuckians. This is done through lottery proceeds funding college scholarship and grant programs with over $4.4 Billion in funding since 1999. In order to do this, our plan is based on a structure which represents our operation. The most important part of our structure is our Proceeds, represented by the scholarship and grant programs we fund. The below structure represents our core elements: Partners, People, Principles, and Products. All of these elements are then supported by the foundation of our organization.
Performance.
- The KLC was created as a “de jure municipal corporation and political subdivision of the Commonwealth of Kentucky” pursuant to KRS 154A.010, et seq. The KLC currently employs approximately 163 staff members encompassing its corporate office located at 1011 West Main Street, Louisville, Kentucky 40202, and field employees located throughout the state.
- Brand: The position for the overall Kentucky Lottery Corporation brand is “Most Entertaining” with the organization’s vision being: “Become known as an organization that makes Kentucky a better place.” It’s mission: “Help make dreams comes true for Kentuckians…both big and small.” (See Brand Guidelines – Exhibit “B”).
- Research: The Lottery, with the assistance of its advertising agency, evaluates opportunities to advertise using standard measurements such as reach, frequency, impressions, cost per thousand, media value, awareness, ad recall, return on ad spend, etc., to ensure Lottery is spending its advertising dollars wisely. Opportunities to advertise using standard measurements listed below:
1. Player Demographics: Demographically, traditional Lottery players look much like Kentucky in terms of age, gender, education, and income based on self-reported tracking study data. Players 35-54 are most likely to play the Lottery, while players 55+ are least likely to play online. Those who report playing the Lottery in the past year skew slightly male at 52% to 48% female. Two-thirds of Lottery players
(67%) have above a high school education. About 62% of Lottery players self report making above $35,000, which is in line with Census data.
Player demographics vary by game, so any creative deliverable must take into consideration the intended audience/segment for the product in question. Please refer to the Kentucky Lottery Consumer Segmentation (Exhibit “C”) for a breakdown of attitudes/behavior preferences by game and additional audience Tracking Study. The Kentucky Lottery has engaged in consumer tracking on various metrics for over 20 years. The goal of this continuous study is to study a representative sample of Kentuckians on their attitudes and playership of the Kentucky Lottery and its game products.
Each quarter, the study collects at least 1000 responses. The sample is balanced according to the Kentucky census on five factors: age, gender, race, income, and geographic location in Kentucky. Key metrics covered in this study include:
• Awareness of advertising and games
• Overall and specific lottery game playership
• Frequency of play and purchase habits
• Relative spend on lottery
• Gaming behaviors and attitudes
• Beneficiary awareness (Where the money goes)
• Awareness of Play Responsibly logos
• Retail environment (Monitors, winner awareness, POS)
• Fun Club membership
• Demographics of game players
The Lottery uses this information to evaluate the effectiveness of our marketing and sales programs as well as to ensure that the player’s voice is heard as we develop new games and experiences.
4. Additional Marketing Research. Following is a list of the different types of research historically conducts or assisted by the advertising agency, in consultation with the Lottery’s in-house Research team, and used by the Kentucky Lottery:
a. Advertising Concept Testing – Various advertising concepts maybe tested then appears the Lottery might benefit from a change to a fresh campaign or for a campaign to support a new product.
b. Brand Monitoring – The objective is to track key brand performance metrics over time, gauge ongoing behaviors and perceptions, and uncover market issues in need of attention.
c. Media Consumption Study – Objective is to better understand Kentucky’s adults and their adoption and use of media and technology to better align our marketing efforts with the most effective media channels.
d. Player Focus Groups – To engage players on a qualitative basis for timely and cost-efficient insights into what drives sales. Player Focus groups may be used by the Lottery for product research, as well as marketing/advertising research, and they may be either conducted online or in-person as the situation dictates.
e. Segmentation Study – Historically conducted by an outside research vendor, the agency utilizes this information to uncover new insights about player attitudes, motivations, behaviors, and opinions that help drive marketing decisions.
D. Budget: The KLC’s approximate marketing and advertising expenditures are listed below. These figures are provided for historical information and are not a guarantee of any accounts under the contract anticipated to result from this RFP.
Budget
Media $ 9,743,609 $ 9,778,574
Production $ 1,106,534 $ 1,211,000
It is reasonable to assume that Offeror(s) have in-house capabilities that the KLC has previously subcontracted for. This information does not preclude any Offeror from proposing those services be provided in-house.
6.2 OBJECTIVE
The KLC plans to enter into an agreement with agencies or business organizations that have the expertise to provide all aspects of marketing services for the KLC, including but not limited to, services related to strategic marketing and advertising planning and management. The Successful Offeror shall work with the KLC to expand relevance of the KLC brand, grow revenues, expand player base, and continue to meet the evolving gaming and entertainment needs of Kentuckians 18 years of age or older. The Successful Offeror shall collaborate with the KLC to develop strategic and innovative marketing solutions that align with the KLC fiscal year and long-term business objectives, while also committing to operate according to responsible gaming principles and upholding the integrity of the KLC.
