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Betfair Marketing Audit

David Robert Fintell - 23890134

Submitted: October 2, 2012

David Fintell 23890134

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Executive Summary The purpose of this audit is to examine Betfair’s marketing operations in reference to problems observed with the delivery of the recent Puntathlon campaign and overall effectiveness. The audit looks at the marketing department and Puntathlon campaign, the Betfair Way, which is Betfair’s employee code of conduct, and encouragement of employee initiatives, and overall commitment to sustaining a competitive advantage, in order to pursue the following objectives: 1) Evaluate marketing planning efforts for the Puntathlon campaign and overall. Examine Puntathlon campaign delivery in order to identify discrepancies and/or areas that are lacking. 2) Explore the issue of unavailability of operations staff raised in the problem statement by analyzing the Betfair Way, a framework of standards for employees, and considering organisational support for employee initiatives. 3) Evaluate Betfair's stated commitment 'to become the logical first choice for punters by providing the best value and customer service … [and] investing in cutting-edge ... web design to maintain a standard that leads the wagering industry’ and efforts to benchmark itself against the competition in order to sustain a competitive advantage. Methods used and data collected include an interview with the Betfair Promotions Manager, several questionnaires designed to be delivered to the Promotions Manager, Marketing Staff, and Operations Staff, and collection of various reports. Analysis finds that whereas Betfair as a whole excels at the embracement of new trends in technology and consistently producing innovative products whilst sustaining its competitive advantage, Betfair’s teams in Australia must continue working to fulfill the same within their own operations. In regards to the Puntathlon campaign, Betfair can utilise available potential by integrating the campaign with use of its mobile betting apps and improving integration of technology by collaborating with operations staff. Betfair’s commitment to staying ahead of the competition in relation to its technology and product innovations should be readily apparent and capitalised upon to improve future campaigns. Recommendations discussed include: • Greater collaboration between marketing and operations departments • Methods for more efficient direct marketing targeting and maximizing campaign delivery by using all available technology • Improving measurability of campaign objectives and linkage to corporate objectives. • Implementation of flexible working hours during campaign periods Limitations for this audit include: • Limited time available on either end • Limited Betfair internal materials granted • Access to only one staff member


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Table of Contents Executive Summary ......................................................................................................................... 2

1.0 Introduction ................................................................................................................................ 4 1.1 Betfair ..................................................................................................................................................... 4 1.2 Online gambling industry .................................................................................................................. 4 1.3 Trending & CSFs ................................................................................................................................. 5 1.4 The Problem .......................................................................................................................................... 5 1.5 Scope of Audit ....................................................................................................................................... 6 1.6 Audit Objectives ................................................................................................................................... 6 1.7 Limitations ............................................................................................................................................ 7

2.0 Body of Audit .............................................................................................................................. 9 2.1 Framework ............................................................................................................................................ 9 2.2 Methodology and Rationale ............................................................................................................. 11

3.0 Analysis ...................................................................................................................................... 15 3.1 Objective 1: Marketing ..................................................................................................................... 15 3.2 Objective 2: Operations .................................................................................................................... 17 3.3 Objective 3: Competition ................................................................................................................. 18

4.0 Conclusion ................................................................................................................................. 20

5.0 Recommendations ................................................................................................................... 20

Bibliography .................................................................................................................................... 22 Appendix .......................................................................................................................................... 23

Appendix 1.0: Interview with [name removed], Promotions Manager ........................................ 23 Appendix 2.0: Questionnaire 1 .............................................................................................................. 25 Appendix 3.0: Questionnaire 1 Responses .......................................................................................... 27 Appendix 4.0: Questionnaire 2 .............................................................................................................. 29 Appendix 5.0: Questionnaire 3 .............................................................................................................. 31 Appendix 6.0: Betfair Way ..................................................................................................................... 32 Appendix 7.0: Betfair Annual Report .................................................................................................. 34 Appendix 8.0: Betfair Case Study ........................................................................................................ 37 Appendix 9.0: Approval Form .............................................................................................................. 39


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1.0 Introduction 1.1 Betfair Founded in 2000, Betfair Pty. Ltd. has grown to become the world’s largest online betting

exchange, reporting over $600 million in revenue for 2012. Allowing users to place bets on a

variety of sports matches and races taking place around the world, such as horse racing,

tennis, golf, Australian football, and soccer, as well as casino games and poker in some

markets, Betfair differentiates itself from the competition by utilizing an exchange model in

which odds are set by other players, as opposed to a bookmaker. This unique, non-risk based

model, in which Betfair receives only a commission based on a player’s winnings, has been

the key to the company’s success; Betfair has nonetheless implemented the risk-based Sports

book betting model in order to better contend with competitors such as Bet365, Sportsbet,

and Tom Waterhouse.

Based in London and Gibraltar, Betfair has expanded operations to Ireland, Malta and other

European countries, the US, and Australia: this audit will solely look at Betfair’s Australia-

based operations.

1.2 Online gambling industry Worth $33.6 billion globally in 2011 and expected to increase by 46.3% by 2016, the online

gambling industry is one experiencing strong but decelerated growth, facing many difficulties

related to legislation and varied government attitudes towards gambling across countries and

even states. Sports betting makes up the industry’s largest segment, accounting for nearly

50% of revenue; casino, poker, bingo, and lotteries make up the remainder. Europe represents

the largest geographical segment at nearly 50%, with Asia-Pacific in second place

representing more than a quarter. A five-forces analysis shows the industry is marked by:


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• Widely differing regulations worldwide; many jurisdictions in which online gambling

is illegal altogether

• Many competitors offering similar and different products

• Customers who may be prone to switching to find the best odds

1.3 Trending & CSFs Trends currently being experienced by or forecast for the online gambling industry include:

• Market liberalization

• Consolidation of competitors through mergers and acquisitions

• Business-to-business and business-to-government (state lotteries) outlook

• Mobile betting

Based on the nature of the online gambling industry, an analysis of Betfair’s success and

threats to continued success, and the scope of operations discussed in Betfair’s 2012 Annual

Report, the following can be considered as factors critical to Betfair’s success:

• Product innovation and differentiation along with a varied product offering

• Visibility amongst competitors

• Fast, reliable, top-quality infrastructure and easy-to-use products

• Embracement of new trends in technology, specifically mobile betting

• Strong knowledge and consideration of current and changing legislation

1.4 The Problem Whilst interviewing [name removed], Promotions Manager for Betfair Pty. Ltd., various

problems and issues currently faced by Betfair in Australia were discussed, such as:


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• A need to improve the competitively inferior sports book service and underlying

software

• Poor navigability of the Betfair website

• A weak multiples betting service, despite being a significant source of revenue

• Difficulty in collaboration between Melbourne-based marketing staff and Tasmania-

based operations staff

• Room for improved effectiveness in direct marketing for Puntathlon campaign

Based on the above issues, the following problem statement has been created to guide the

auditing process:

During Betfair Pty. Ltd.'s recent Puntathlon campaign surrounding the 2012 London

Olympic games, a key concern raised involves the unavailability of operations staff to

maintain and update the leader board over weekends. This audit aims to analyze

marketing effectiveness as related to the impact of this on the Puntathlon campaign and

business in general, as well as investigate further issues affecting full effectiveness of

the Puntathlon and other campaigns.

1.5 Scope of Audit This audit will be carried out in looking at Betfair’s recent Puntathlon campaign and

corresponding marketing strategy and objectives, Betfair’s framework of standards for

employees, the Betfair Way, internal marketing and organisational planning and support, and

the Betfair’s commitment to remaining ahead of the competition.

1.6 Audit Objectives Based on the above problem statement, this audit has the purpose of exploring the following

objectives:


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1) Evaluate marketing planning efforts for the Puntathlon campaign and overall.

Examine Puntathlon campaign delivery in order to identify discrepancies and/or

areas that are lacking.

2) Explore the issue of unavailability of operations staff raised in the problem

statement by analyzing the Betfair Way, a framework of standards for employees,

and considering organisational support for employee initiatives.

3) Evaluate Betfair's stated commitment 'to become the logical first choice for punters

by providing the best value and customer service … [and] investing in cutting-edge

... web design to maintain a standard that leads the wagering industry’ and efforts

to benchmark itself against the competition in order to sustain a competitive

advantage.

The following key will be used to refer to objectives:

Objective 1: Marketing, Objective 2: Operations, Objective 3: Competition

1.7 Limitations The data collected and scope of this audit is limited as a result of the following reasons:

Time: Due to time constraints and outside obligations on either end, the primary data

collected for this audit was slowed and is limited. Specifically, had time not been an issue,

further questionnaires would have been distributed to more members of Betfair’s marketing

staff as well as to members of Betfair’s operations staff.

Available material: Material available and granted for the purpose of this audit remained

limited: upon request of the department’s general marketing plan/strategy and the marketing

objectives for the Puntathlon campaign, only the latter was granted. Also, likely due to time


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constraints, a request for examples of individual and team Key Performance Indicators

received no response.

Access to staff: Having access to only one staff member at Betfair (the Promotions Manager)

slowed the auditing process. Whereas a questionnaire was to be sent to operations staff based

in Tasmania, this would have been redirected by the Promotions Manager and again relates to

time constraints.


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2.0 Body of Audit 2.1 Framework Summary of data collected:

Type Purpose Related Objective Source

Face-‐to-‐Face

Interview

Responses

Primary Gain insights and

understanding of business

as a whole and issues

currently being faced

1,2,3 [name removed],

Promotions Manager,

Betfair Pty. Ltd.

Responses to

Questionnaire 1

Primary Obtain insights in order to

assess marketing

effectiveness

1,2,3 [name removed],

Promotions Manager,

Betfair Pty. Ltd.

Online Gambling

Industry Report

Secondary Put the industry into

content and see where

Betfair stands

1: Marketing, 2:

Operations, 3:

Competition

Marketline

Puntathlon

Campaign Report

Secondary Assess effectiveness of

campaign and marketing

efforts

1 Betfair Pty. Ltd.

Betfair Way Secondary Understand general

expectations of Betfair

employees

2 Betfair Pty. Ltd.

Betfair Annual

Report

Secondary Obtain information on

financial and non-‐financial

company performance

1,2,3 Betfair Group plc

Betfair Case Study Secondary Obtain an outside look and

assessment of Betfair’s

global operations

1,2,3 Marketline


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As seen in the table above, forms of primary data collected include an initial interview with

the Promotions Manager at Betfair Pty. Ltd., as well as responses from the Promotions

Manager to a questionnaire designed to assess marketing strategy and efficiency, based on

information obtained through the interview. Secondary data collected include Betfair’s

employee code of conduct, the Betfair Way, and a report prepared by Betfair marketing staff

on the recent Puntathlon campaign that was discussed through the interview. In addition,

several outside reports and the Betfair 2012 Annual Report were collected.

Data requested unable to be collected:

Type Purpose Related

Objective

Intended source Reason not

collected

Examples of

Individual and

Team KPIs

Secondary Relate marketing staff

objectives to campaign

and corporate objectives

1 Promotions Manager,

Betfair Pty. Ltd.

No response

received to

request

General

Marketing Plan

Secondary Assess overall marketing

objectives and

effectiveness

1 Promotions Manager,

Betfair Pty. Ltd.

No response

received to

request

Responses to

Questionnaire 2

Primary Assess attitudes and

opinions of marketing

staff

1,2,3 Unspecified marketing

staff

Time, access

to staff

Responses to

Questionnaire 3

Primary Assess attitudes and

opinions of operations

staff

1,2,3 Unspecified operations

staff

Time, access

to staff

Unfortunately due to various reasons, the pieces of secondary and primary data in the table

above were unable to be collected. Had this not been the case, the audit would have been

strengthened in the following ways:


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• Individual and Team KPIs and General Marketing Plan: These would have made

it possible to better assess the department’s strategy, and how well objectives

correlate throughout all levels

• Responses to Questionnaire 2: These responses would have made it possible to

assess opinions and attitudes of marketing staff towards strategy and organisational

structure, recognition of outstanding employees, and the degree of understanding

between operations and marketing

• Responses to Questionnaire 3: These responses would have made it possible to

assess understanding of marketing strategy by operations staff as well as recognition

of outstanding employees

2.2 Methodology and Rationale To begin the audit process, the first step taken was to conduct a face-to-face interview with

[name removed], Promotions Manager, Betfair Pty. Ltd (Appendix 1.0: Interview with

Promotions Manager). This interview began by discussing the Puntathlon campaign, which

was the main intended element of the audit. The marketing of the campaign was first detailed,

followed by issues faced, such as:

• Unsuccessful targeting of SMSs sent to registered bettors

• Unavailability of operations to maintain the Leader Board, the keystone of the

campaign, over weekends

From that point, a variety of topics related to Betfair’s business and internal operations were

discussed. Relevant to the purpose of this audit, it was ascertained that:


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• Whereas Betfair is the only betting exchange, its multiples service is weak in

comparison to that of the competition

• Betfair is working to improve its weak multiples/sports book service as it is a

significant source of revenue

• There is a need to improve contact and collaboration between Melbourne-based

marketing staff and Tasmania-based operations staff

• There is a need to modify the 9 to 5 mindset in the organisation and introduce limited

weekend hours in order to improve service and delivery of campaigns

The next step to continue the audit was to obtain pieces of data that had been discussed in the

interview, namely the Betfair Way and the Puntathlon campaign report. The collection of

these pieces of data allows for the progression of the audit by:

1) Providing a reference with which to assess the issue of operations staff not being

available on weekends and the staff’s attitudes towards recognition of problem

solving and outstanding work, and

2) Providing linkable evidence regarding the objectives and delivery of the Puntathlon

campaign

Questionnaire 1: Following the interview and receipt of the Betfair Way and Puntathlon

Report, a questionnaire was designed and sent to Betfair’s Promotions Manager (Appendix

2.0: Questionnaire 1). The intent of the questionnaire was to obtain qualitative information

regarding internal marketing strategy and planning, marketing strategy in relation to the

competition, as well as information on any employee recognition systems in place. This

relates to the audit objectives as follows:


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Objective 1: Marketing: Asking questions such as whether or not a general marketing plan

exists*, in what ways strategy is communicated to employees*, and whether or not there are

clear strategies in place for achieving objectives provide for a wider understanding of

Betfair’s marketing efforts, and lead into follow-up questionnaires which assess employee’s

actual opinions and understanding of strategy.

* The answers to these questions (Appendix 3.0: Questionnaire 1 Responses) revealed that

each member of the marketing department has defined Key Performance Indicators, as does

each team. Had these been made available, along with information on Betfair’s general

marketing plan, responses to other questions in this questionnaire could have been

successfully evaluated, such as on the measurability of objectives and consistency between

marketing objectives and corporate objectives.

Objective 2: Operations: Questions in this section ask whether or not employees who come

up with new ideas or solutions to problems are acknowledged and/or rewarded, and in what

ways. Responses to the questions in this section then lead to questions in follow up

questionnaires, designed for marketing and operations staff, which assess actual employee

satisfaction with the acknowledgement/reward process in place.

Objective 3: Competition: Questions in this section find out whether or not Betfair is actively

monitoring the competition and setting benchmarks for itself to aspire to and how this is

achieved.

The responses to this questionnaire were used to evaluate Betfair and influenced two follow-

up questionnaires. The responses to Questionnaire 1 will be further utilised in the Analysis

section of this report.


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Although responses were not collected, two quantitative questionnaires were designed for the

purpose of assessing Betfair’s employees’ understanding of marketing strategy, opinions on

recognition of employees and attitudes towards putting in extra effort to solve problems, and

the degree of understanding between marketing and operations departments.

Questionnaire 2: designed for marketing staff and related to the audit objectives as follows

(Appendix 4.0: Questionnaire 2):

Objective 1: Marketing: Questions assess to what degree employees feel they are aware of

the work done by and issues faced by other departments, to what degree employees are aware

of and understand objectives at the individual, team, department and corporate levels and

how they all interrelate, and evaluates opinions of employees on greater implementation and

production of marketing strategy.

Objective 2: Operations: Questions in this section assess to what degree employees feel that

Betfair supports their efforts to work beyond their requirements to solve problems and to

what degree they are satisfied with the recognition received, for themselves and witnessed

given to coworkers, for such efforts.

Objective 3: Competition: This section assesses how aware employees and the organisation

itself are of the macro environment and to what degree employees feel that Betfair considers

and focuses on macro issues in its planning.

Questionnaire 3: designed for operations staff and related to the audit objectives as follows

(Appendix 5.0: Questionnaire 3):

Objective 1: Marketing: Questions in this section asses to what degree employees feel they

are aware of the work done by and issues faced by other departments and vice versa, and that

good relations exist between departments.


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Objective 2: Operations: This section assesses to what degree employees feel the company

and management support, encourage, and make use of their initiatives and input.

The analysis of data will be discussed in the following section, however a breakdown of the

analysis process is as follows:

Objective 1: Marketing: Considering information obtained in interview, look at Puntathlon

campaign report, responses to Questionnaire 1, and Betfair Annual Report to evaluate

effectiveness in marketing planning.

Objective 2: Operations: Considering information obtained in interview, look at Betfair

Way and responses to Questionnaire 1 to evaluate Betfair’s efforts and attempts to remedy

operations related issues as outlined.

Objective 3: Competition: Considering information obtained in interview, look at responses

to Questionnaire 1, Betfair Annual Report, and a Betfair Case Study to evaluate efforts to

sustain a competitive advantage and maintain cutting-edge technology.

3.0 Analysis 3.1 Objective 1: Marketing

Objective: Evaluate marketing planning efforts for the Puntathlon campaign and overall.

Examine Puntathlon campaign delivery in order to identify discrepancies and/or areas that

are lacking.

Issues discussed with Betfair’s Promotions Manager revealed that, most specifically, direct

marketing targeting efforts utilised during the Puntathlon campaign were inefficient. Also, it

was revealed that the marketing department did not collaborate fully with the operations


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department to ensure adequate delivery of the campaign, suggesting a potential lack of proper

planning.

Responses to Questionnaire 1 did not raise doubts regarding the efficiency of Betfair’s

overall marketing planning activities, however it did allow one key issue to be found.

Whereas marketing staff have both individual and team Key Performance Indicators

(Appendix 3.0, Question 8), as does Betfair as a whole, as found in pg. 25 of the company’s

2012 Annual Report (Appendix 8.0), the obtained objectives for the Puntathlon campaign

make no reference to these KPIs (Appendix 6.0). In addition, objectives are unspecific and

have no measurable goals attached to outcomes. For example, the objective ‘To increase

multis actives and spend’, while related to the Corporate KPI of actives, does not have an

attached goal or state what will be considered an acceptable result.

In addition, the campaign does not make us of Betfair’s commitment to staying ahead of key

trends, specifically mobile betting. SMSs were sent to registered users; assuming that many

of these users may likely have a smartphone, and that Betfair has produced mobile betting

apps for all major platforms, the potential exists to not only inform users of the campaign

through their phones, but also guide them to the relevant smartphone app. Alternatively, text

messages could be sent to users who have already downloaded and registered one of Betfair’s

smartphone apps onto their mobile phone, enhancing targeting efficiency.

Had responses to Questionnaires 2 and 3 been collected, the planning and collaboration

processes between the marketing and operations departments could be more properly

evaluated, though it is clear that a gap in communications between the two must be remedied.

Overall, the Puntathlon campaign is lacking in measurability of stated objectives and

targeting effectiveness and efficiency. Links between possibilities for improvement can


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clearly be drawn, however will potentially require a great deal of collaboration and

cooperation between the marketing and operations departments.

3.2 Objective 2: Operations

Objective: Explore the issue of unavailability of operations staff raised in the problem

statement by analyzing the Betfair Way, a framework of standards for employees, and

considering organisational support for employee initiatives.

During the initial interview with Betfair’s Promotions Manager, it became clear that

management is aware of the need to become more flexible and implement changes in order to

be able to effectively and efficiently deliver future campaigns, such as modifying standard

work hours and improving contact between the marketing and operations departments. The

issues of why this problem occurred and how to remedy it nonetheless remain.

Two of the five parts of the Betfair Way are Find A Way and Make It Better (Appendix 7.0:

Betfair Way), challenging employees to be creative in finding ways to solve problems and

improving upon the everyday. In order to begin assessing actual support for employees in

doing so, Questions 1 and 2 of Questionnaire 1 (Appendix 3.0) asked firstly whether or not

employees are rewarded for finding new solutions, and how. The response to Question 2

states that:

‘Prior to [our monthly] meeting we have the opportunity to nominate who we think

deserves to be the Star of The Month – ie who has gone above and beyond their call of

duty.’

This shows that Betfair does have a recognition system in place. A critical component for the

evaluation of the actual merit of this system would have been answers obtained to


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Questionnaire 2 and 3, assessing employees’ satisfaction with the recognition system in place

and management’s encouragement of the challenges set for employees by the Betfair Way.

It is certain that, in spite of strong ideals and systems in place to encourage innovation, a

degree of flexibility for employees to do so is lacking. The Promotions Manager stated in the

initial interview (Appendix 1.0, Line H8) that management is aware of the need to modify

working hours and would like to implement a contest for employees in which they will

compete for prizes by innovating and solving current problems. This represents a desire for

change; suggestions to further this will be offered in the recommendations section of this

report.

3.3 Objective 3: Competition

Objective: Evaluate Betfair's stated commitment 'to become the logical first choice for

punters by providing the best value and customer service … [and] investing in cutting-edge

... web design to maintain a standard that leads the wagering industry' and efforts to

benchmark itself against the competition in order to sustain a competitive advantage.

Apart from the information obtained during the interview with Betfair’s Promotions

Manager, the evaluation of this audit objective involves mainly looking at secondary pieces

of data, specifically Betfair’s most recent annual report and a Marketline case study on

Betfair in order to gain both inside and outside perspectives on Betfair’s commitments

towards maintaining high-quality platforms and stayed ahead of the competition. The initial

interview provided the following important insights:

Betfair’s staff is aware of what products are weak in comparison to the competition, i.e.

multiples (Appendix 1.0, Line H10) and a poorly navigable website

Betfair is actively workings towards improving the multiples product and navigability


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In response to Questionnaire 1, Question 18 (Appendix 3.0), ‘Does Betfair actively monitor

the competition and set benchmarks (namely for services provided)?’ [name removed],

Promotions Manager, stated:

‘We constantly monitor the competition and run regular waves of research to ensure we

know where we are at in relation to the competition.’

This substantiates the claim that Betfair is working on improving its services, and provides

insight into how staff became aware of what is lacking (regular waves of research).

Looking at the Betfair 2012 Annual Report (Appendix 8.0:), pgs. 15 & 21, further shows that

Betfair does not stop at offering its unique Betting Exchange, but works to also offer

essentially every other replicable product that its competitors have, with the intention of

becoming a ‘one-stop-shop’ (pg. 15). In addition to offering varied products to match

competitors, Betfair embraces the trend of mobile betting by offering apps for all major

mobile operating platforms, and recognizing that mobile betting could very well become the

dominant online channel.

Finally, a case study on Betfair defines product innovation as a hallmark of Betfair’s

(Marketline, 2012, Appendix 9.0). According to the case study, not only is Betfair furthering

its differentiation strategy by integrating products offered by competitors with its own unique

Exchange product, Betfair is implementing entirely unique products, for example casino

games in which the house has no statistical advantage to win.

Based on the above information collected, it is apparent that Betfair does indeed fulfill its

commitment to investing in innovation that leads the wagering industry. This is evident

through the efforts to maintain its core differentiated product while matching competitors’


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offerings, efforts to introduce entirely new products, and the fact that employees in

departments such as marketing are not only aware of issues related to this topic being faced,

but are also aware of current internal efforts to improve upon these issues.

4.0 Conclusion To conclude, whereas Betfair as a whole excels at the fulfillment of certain critical success

factors, namely the embracement of new trends in technology and consistently producing

innovative products whilst sustaining its competitive advantage with the Betting Exchange,

Betfair’s teams in Australia must continue working to fulfill the same success factors within

their own operations. In regards to the Puntathlon campaign, Betfair has not utilised the

potential available by integrating the campaign with use of its mobile betting apps. A lack of

collaboration between departments is the apparent cause of this; operations staff do not seem

to be consulted prior to development of campaigns. Remedying this may provide Betfair’s

marketing department the opportunity to utilize its available infrastructure in order to better

promote campaigns and engage users. What’s more, Betfair must ensure that employees are

actually able to solve campaign and support-related problems by means of offering adequate

support and ensuring a way for employees to modify schedules when necessary. Betfair does

fulfill its commitment to staying ahead of the competition in relation to its technology and

product innovations; this should be readily apparent and capitalized upon the utmost possible.

5.0 Recommendations Based on the analyses of the audit objectives and in considering the previously outlined

factors critical to Betfair’s success, the following recommendations are put forth:


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• Begin greater collaboration between marketing and operations departments, not only

to ensure proper delivery of campaigns, but also to brainstorm for new campaign

ideas entirely, based on technologies and innovations already in use or development.

• If possible, link smartphone app users to their mobile numbers, and utilise this

information during future campaigns by sending SMSs to these customers informing

them of current campaigns. The convenience of SMSs and mobile betting apps being

on the same device may prompt use.

• Improve measurability of campaign objectives and explicitly link campaign objectives

to corporate objectives. If not already in place, a management system such as the

Balanced Scorecard may be effective due to its ability to make objectives clearly

visible across levels and departments.

• Follow through with plans to implement employee contests that will initiate and fuel

the problem-solving process.

• Implement a form or flexible working hours, telecommuting, or weekend shift

rotating during periods where operations staff will be needed to support campaigns

and work over weekends.


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Bibliography Anonymous. (2011). Research and Markets Offers Report: Online Gambling Trends – 2010/2011. Entertainment Close-Up. Retrieved from: http://www.closeupmedia.com Berry, L., Conant, J. & Parasuraman, A. (1991). A Framework for Conducting a Services Marketing Audit. JAMS, Summer 1991, pg. 255-268 Betfair Group plc. (2012). Annual Report and Accounts 2012. London, United Kingdom : Author Kotler, P., Gregor, W., & Rodgers, W. (1977). The Marketing Audit Comes of Age. Sloan Management Review, 18(2), pg. 25-43 Marketline. (2011, December). Betfair: From startup to world’s largest betting exchange in ten years (ML00001-035). Retrieved from: http://www.marketlineinfo.com Marketline. (2012, July). Global Online Gambling (0199-0891). Retrieved from: http://www.marketlineinfo.com McDonald, M. (1991). The Marketing Audit: Translating marketing theory into practice. Oxford, United Kingdom : Butterworth-Heinemann Ltd


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Appendix Appendix 1.0: Interview with [name removed], Promotions Manager Transcription: David1: Hi [name removed]. Thanks for meeting with me. I’ll be asking you a few things about Betfair today… a summary of the Puntathlon campaign you mentioned and corresponding issues, what kinds of marketing activities you do, about your competitors, whether or not you have a customer loyalty program, your Australian corporate structure, number of employees, marketing roles, what you yourself do… D2: Tell me about the Puntathlon campaign. Manager1:: It was a campaign we ran for the London 2012 Olympics. We created a metal tally board where we kept track of punters and how many successful multiples bets they had placed. D3: Can you explain how multiples work? M2: It’s where a punter (bettor) places successive bets, and all of them must win in order for it to keep going and for the punter to win money. The point of it is that punters can take in greater winnings through this method, but they’re less likely to win, since one wrong bet and the whole bet falls out. So we ran the campaign for 2 weeks ad marketed it a few different ways. Below the line, we heavily utilised social media. On Facebook, we posted once a day, and on Twitter about twice a day. We also had it prominently advertised on our landing page throughout the campaign, and selected 5,000 registered users to receive emails regarding the campaign 1 day before it ran. D4: How did you select them? M3: We targeted them by value and frequency of their previous bets. D5: How else did you market the campaign? M4: We also made outbound calls to similarly chosen registered users and then sent follow-up SMSs. D6: Can you tell me about some of the problems your team faced with the campaign? M5: There were a few we’ve identified in preparing the post-campaign report. We only had about a 40% call-rate success out of the 5,000, so a lot of the follow-up SMSs were sent to non-engaged users. What we might do next time is only send the follow-up SMSs to those who answered and showed interest. D7: Anything else? M6: A big issue was that the leaderboard for the campaign wasn’t being updated over weekends. D8: So it was manually updated? M7: Yes. The problem is that our operations staff only works Monday thru Friday. D9: Do you have any ideas on how to fix that for next time? M8: We think we need to really try to change the 9 to 5 mindset and find a way to have some staff working on at least Saturday during big campaigns. It’s difficult because our operations staff is based in Tasmania whereas marketing and most of the rest of our departments are based here in Melbourne. For future campaigns we think it’d be worth the price of a few tickets to send some marketing staff down to Hobart for a day and collaborate with operations staff on how to best runt the campaigns. We also want to have some sort of a competition for staff, give them an incentive to solve these problems. D10: Do you have some sort of an employee code of conduct?


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M9: Yes, we have something called the Betfair Way, which is meant to guide the way our employees act to be in line with company ideals. D11: I’d like to see that if possible. Are there any other issues related to operations at the moment? M10: We have a relatively weak multiples product. It’s a big money maker for us, but in reality we’re pushing the use of an inferior product. We do have a team working on the multiples product 24/7, though. D12: Is there anything in particular you’re ahead of the competition on? M11: Yes, our exchange product. Our competitors stick to sports books. Many of them have stronger multiples, but we’re building ours and are working on improving the software. In all other aspects our software is top of the line, it’s only for multiples that we really need to improve. We are trying to fix the poor navigation on our site too, though. D13: Such as in what aspects? M12: We’re at the forefront in reporting and predicting dodgy behaviours like race fixing. D14: Do you have many competitors in Australia? M13: We have about 10-15. Sportsbet, Tom Waterhouse, Bet365 are some of the major ones. They all generally spend much more above the line. D15: What makes up most of your revenue? M14: About 80% comes from horse racing. Soccer is our next biggest sports, and tennis comes behind that. D16: Do you have a customer loyalty program? M15: Yes, it’s called Betfair Black. It’s intended for key customers that we break into three tiers: Silver, Gold, and Black (the highest). D17: What kind of benefits do they get out of joining? M16: We offer them free form analysis on races and soccer, free tickets to races and matches, Betfair merch, and different special offers. D18: Can you tell me a bit about your department and structure now? M17: There are 15 of us in marketing, based here in Melbourne, working on acquisition, affiliates like RaceNet, promotions, which is what I do, social media, sponsorships. D19: Who else is based in Melbourne? M18: Marketing, finance, the CEO and directors, legal, PR and our production team. D20: And in Hobart? M19: Operations, which includes our staff who deal with in-bound help, receive calls, market ops, and Telbet. We have affiliates in Melbourne and Sydney. With them we run educational sessions at different venues like the Crown, Star Casino, and Burswood to target potential users and really teach them about our product. D21: How many people attend the sessions? M20: We usually get about 100 guests per session. D22: OK. I think that about covers most of what I was looking to hear about today. Thanks M- I’ll be waiting to receive the report on the Puntathlon campaign you mentioned, and a copy of the Betfair Way.


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Appendix 2.0: Questionnaire 1 Form viewable at: https://docs.google.com/spreadsheet/viewform?formkey=dGxVTHBEYXhNVk16VnhhTWRoT2s5WlE6MQ#gid=0 Betfair Questionnaire 1 1. Are employees who come up with new ideas or solutions to problems acknowledged/rewarded for their efforts? Yes No Don't Know N/A Other: 1. Comments 2. In what ways are employees acknowledged/rewarded? Don't Know N/A Other: �� 2. Comments ��3. Does Betfair’s marketing team have a general marketing plan? Yes No Don't Know N/A Other: 3. Comments ��4. Is marketing strategy communicated to all employees? Yes No Don't Know N/A Other: 5. In what way(s) is the marketing strategy communicated to employees? ��6. Is marketing strategy regularly reviewed and updated? � Yes No Don't Know N/A Other: 6. Comments ��7. Are marketing objectives clearly stated and consistent with corporate objectives? Yes No Don't Know N/A Other: 7. Comments ��8. Are marketing objectives measurable? Yes No Don't Know N/A Other: 8. Comments �� 9. Are there clear strategies in place for achieving the stated marketing objectives? Yes No Don't Know N/A Other: 9. Comments ��10. Are sufficient resources made available? Yes No Don't Know N/A Other: 10. Comments ��11. Are all responsibilities and authority clearly made known? � Yes No Don't Know N/A Other:


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11. Comments ��Are there agreed objectives regarding 12. The product range? Yes No Don't Know N/A Other: ��13. Volume of sales (bets)? Yes No Don't Know N/A Other: ��13. Comments ��14. Market share? Yes No Don't Know N/A Other: 14. Market share? ��15. Number of customers? Yes No Don't Know N/A Other: 15. Comments ��16. Does Betfair actively research new and potentially attractive consumer segments? �� Yes No Don't Know N/A Other: 16. Comments 17. Does Betfair’s marketing team actively identify and create strategies with which to target new segments? Yes No Don't Know N/A Other: 17. Comments 18. Does Betfair actively monitor the competition and set benchmarks (namely for services provided)? Yes No Don't Know N/A Other: ��18. Comments � ��19. Does Betfair dedicate time and resources to new innovations in order to be ahead of the competition? Yes No Don't Know N/A Other: 19. Comments 20. Are these innovations a result of research into consumers' lifestyles? Yes No Don't Know N/A Other: 20. Comments ��Survey completed by, position and today's date: ��


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Appendix 3.0: Questionnaire 1 Responses Betfair Questionnaire 1 1. Are employees who come up with new ideas or solutions to problems acknowledged/rewarded for their efforts? Yes 2. In what ways are employees acknowledged/rewarded? ��We have a monthly meeting where we all get together and go through the highlights of the month and what we'll be working on next month. Prior to this meeting we have the opportunity to nominate who we think deserves to be the Star of The Month -‐-‐ ie who has gone above and beyond their call of duty. ��3. Does Betfair’s marketing team have a general marketing plan? Yes 3. Comments We come up with marketing plans for the major campaigns during the year (Spring carnival, Summer of Cricket/Tennis, Autumn Carnival, AFL/NRL seasons etc) ��4. Is marketing strategy communicated to all employees? Yes 5. In what way(s) is the marketing strategy communicated to employees? We brief all departments so each area of the business is aware of what we are doing and why. �� 6. Is marketing strategy regularly reviewed and updated? � Yes ��7. Are marketing objectives clearly stated and consistent with corporate objectives? Yes ��8. Are marketing objectives measurable? Yes 8. Comments ��We each have individual KPI (Key Performance Indicators). We also have team KPI's which relate to our individual ones. ��9. Are there clear strategies in place for achieving the stated marketing objectives? Yes 10. Are sufficient resources made available? Yes 11. Are all responsibilities and authority clearly made known? � Yes Are there agreed objectives regarding 12. The product range? Yes ��13. Volume of sales (bets)? Yes ��14. Market share? Yes


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��15. Number of customers? Yes ��16. Does Betfair actively research new and potentially attractive consumer segments? �� Yes 17. Does Betfair’s marketing team actively identify and create strategies with which to target new segments? Yes 18. Does Betfair actively monitor the competition and set benchmarks (namely for services provided)? Yes ��18. Comments �We constantly monitor the competition and run regular waves of research to ensure we know where we are at in relation to the competition. ��19. Does Betfair dedicate time and resources to new innovations in order to be ahead of the competition? Yes 20. Are these innovations a result of research into consumers' lifestyles? Yes ��Survey completed by, position and today's date: [name removed], Promotions Manager, 19 September 2012


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Appendix 4.0: Questionnaire 2 Form viewable at: https://docs.google.com/spreadsheet/viewform?formkey=dFpqem8xZXNtaVQwOUpkM3V4dFhwYWc6MQ Betfair Questionnaire 2 1. I feel staff in other departments understand and consider marketing objectives in their own work. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 2. I am aware of the efforts of other departments and consider this in my own work. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 3. I am aware of specific team objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 4. I understand my team’s objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 5. I am aware of specific department objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 6. I understand my department’s objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 7. I am aware of specific corporate objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 8. I understand how my own KPIs relate to team and corporate KPIs and objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 9. I understand my role in the marketing planning process. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 10. Other employees are clear about their role in the marketing planning process. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 11. Employees are always given clear instructions about the nature of their expected contribution to the marketing plan. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 12. Corporate directors use the marketing plan as the basis for making key marketing decisions. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 13. Corporate directors allocate adequate resources to ensure the marketing plan is completed satisfactorily. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 14. The need for a marketing plan is clearly explained to all employees. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 15. There is adequate information/data distributed upon which to base a marketing plan. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 16. Our marketing plan has a good balance between short-‐-‐term and long-‐-‐term objectives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 17. Enough time is allowed for the planning process. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree


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18. Marketing planning is a priority issue in our organisation. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 19. My department is aware of different market segments that we could be targeting. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 20. My company actively and effectively pursues new consumers and market segments. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 21. I feel my company encourages me to come up with new ideas and solutions to problems. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 22. I endeavor to come up with new ideas and solutions to problems. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 23. I feel my company will acknowledge/reward my hard work and new ideas. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 24. I feel satisfied with the way my company acknowledges my hard work and new ideas. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 25. My company gives adequate recognition to my coworkers when they deserve it. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 26. I am aware of where my company stands in relation to our competition. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 27. My company allocates sufficient time and resources to staying ahead of the competition. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 28. I am aware of current and future industry and consumer trends. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 29. My company stays ahead of these industry and consumer trends. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 30. Reasons for past successes or failures are analysed. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 31. Market opportunities are highlighted by the planning process. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 32. Our marketing plan demonstrates a high level of awareness of the macro issues facing us. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 33. There is a high awareness of micro issues in our plan. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 34. Our plan doesn’t duck the major problems and opportunities faced by the organisation. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree


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Appendix 5.0: Questionnaire 3 Form viewable at: https://docs.google.com/spreadsheet/viewform?formkey=dEVfeFZjVTBZRW9fZTh0by1VNmJPakE6MQ Betfair Questionnaire 3 1. Operations staff has the authority it needs to be effective. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 2. I am aware of the efforts of the marketing department and consider this in my own work. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

3. I feel the marketing department understands and considers the needs of employees in other departments. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

4. I feel the marketing department understands and considers the needs of employees in the operations department. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 5. There are good working relations between my department and the marketing department. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

6. The activities of various departments in my company are well coordinated to ensure effectiveness. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

7. My company supports innovation and employee initiatives. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 8. My company encourages me to come up with new ideas and solutions to problems. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

9. I feel my company will acknowledge/reward my hard work and new ideas. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

10. I feel satisfied with the way my company acknowledges my hard work and new ideas. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 11. My company gives recognition to my coworkers when they deserve it. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

12. Management encourages us to think outside the box in our work. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

13. Management gives us adequate support and resources to solve problems. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree 14. Members of my department regularly brainstorm and collaborate to solve problems. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree

15. Management encourages and utilises our input. 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree


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Appendix 6.0: Betfair Way

THE BETFAIR WAY1.

BUILD A GREAT REPUTATION

2. FIND A WAY

3. MAKE IT BETTER

4. SHARE STORIES

5. WALK IN THEIR SHOES

WHERE BETTER BETTORS BET.


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FIND A WAY

GET INVOLVED AND BE PREPARED TO TRY THINGS.

BE ENERGETIC AND FOCUSED ON GETTING

THINGS DONE.

2.

PLAYS BY THE RULES

KNOWS WHAT’S IMPORTANT

STRIVES TO LEARN AND DEVELOP

THE BETFAIR WAY


MAKE ITBETTER

CHALLENGE THE EVERYDAY. HAVE THE COURAGE TO

MAKE IT A BETTER PLACE FOR CUSTOMERS AND STAFF.

3.

KNOWS AND VALUES THEIR CUSTOMERS

COMMITTED TO IMPROVEMENT

THE BETFAIR WAY



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Appendix 7.0: Betfair Annual Report Pg. 25 (Re: Key Performance Indicators)


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Pg. 15 (Re: Product Development and Competition)


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Pg. 21 (Re: Mobile Betting Trend)


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Appendix 8.0: Betfair Case Study Pg. 11


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Pg. 12


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Appendix 9.0: Approval Form

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