Client story de Lotto
Instant tickets (“Krasloten”) is a dynamic category sold in tobacco stores, bookshops and supermarkets. Every month, instant tickets are bought by approximately 600.000 individual buyers in the Netherlands. De Lotto launches new instant ticket promotions several times a year but, because shelf space is limited, adding extra shelf positions is not an option.* Therefore, De Lotto needed to understand which assortment was going to reach the largest group of consumers.
We suggested a conjoint methodology to build a preference model. This set up helped us to calculate the total reach/preference for all combinations of a subset of products including instant tickets that were not yet on the market. After the fieldwork, we ran an optimization algorithm to identify the best combination of products.
Based on the preference model did we build a Simstore simulator to:
- capture the incremental value of adding new SKUs to the portfolio
- identify the optimal product mix attracting the largest number of individual customers
De Lotto adjusted the instant ticket assortment on display based on the recommendations of the study. The assortment is much more balanced and is now aimed at attracting and satisfying two target groups: frequent buyers and potential buyers of instant tickets. The results of the study have also provided a solid foundation for further product innovation.