Product repositioning to strengthen attractiveness: the case study of New Lotto

Details

Supervisors

Poncin, Ingrid

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion (Mons)

Abstract

Fast technological development and rapidly changing business models force the Belgian National Lottery to adapt its strategy in order to satisfy better the emerging needs of customers on the digital gaming market. Progressively deteriorating performance of Lotto, the nation’s well-known lottery game, led the company to reposition its brand and thus to strengthen the attractiveness of the product by series of modifications which served as a main driver of product differentiation. The New Lotto and its repositioning process currently requires an efficient integration of digital touchpoints necessary for engaging with target audiences and their optimization predefined by Lotto’s inherent digital strategy. All these elements consequently evoke the following managerial question: “How to reposition a product in order to gain the attractiveness on the digital market in the case of New Lotto?”. In order to answer this question, the thesis provides first some necessary knowledge related to the problem through the exploratory phase which consists of three parts: the literature review, a presentation of the Belgian National Lottery and its activities, and finally, qualitative research collecting the data using the convenience sample of Lotto consumers. The combination of these three elements allowed to summarize the information necessary in order to set the design for the conceptual framework of the empirical phase where 6 hypotheses related to the research problem are constructed and afterwards tested by different statistical tools using the available quantitative data which were collected by different techniques. Consequently, the results of these tests which confirm or reject the hypotheses are discussed and serve as a base for managerial recommendations as well as an inspiration for further research. The results demonstrated that Lotto non-players don’t react better to the personalized newsletter than Lotto players. Meanwhile, the results of the exploratory phase challenge the necessity of personalization within CRM systems. Secondly, development of relevant touchpoints for target audience and their optimization is important in order to strengthen the attractiveness of the New Lotto. Finally, the customers’ choice of device used to interact with the brand in different stages of their customer journey helps to determine the target audience for new applications and consequently optimize the product development. From the practical point of view, the results of this thesis serve to optimize the existing touchpoints related to New Lotto. Nevertheless, the thesis identifies several recommendations with detailed proposals for future research necessary for the success of the New Lotto product.