NZ Lotteries is in the business of selling dreams. However, Instant Kiwi wasn’t delivering on their promise; not enough people were winning and next to no one was winning anything worthwhile. Their core consumer demographic was aging, and they weren’t attracting younger players (18-35). International research showed us that to increase ticket sales we had to make a decent winning experience part of the equation.
Instant Kiwi evolved to deliver better prizes, and a new ticket architecture and design portfolio was created to align with different consumer segments. Profit was channeled back into the improvement of the product experience; overseas experience showed that resultant margin growth would take between 12-18 months to occur. This response would involve substantial calculated risk.
We identified a new value proposition that was better suited for younger players and our older core market. It delivered higher prize payouts and allowed players to win more often, plus greater differentiation through price positioning. With the higher priced games delivering better prizes, sales and profit grew. These changes were communicated through a nationwide campaign.
Instant Kiwi achieved measurably improved brand affinity. Plus, a first for the industry was realized. Never before, in an international lottery, was there a re-launch of a completely new range of products, new in-store merchandising, and a new brand campaign all on the same day. On top of that, none achieved this transformation in just six months. Sales increased by 28%, with profit maintained, despite the increased payout.