MAY/JUNE 2012VOLUME 27 | ISSUE 3

THE OFFICIAL NEWSLETTER FOR CALIFORNIA LOTTERY RETAILERS

Save Mart Supermarket Stores

Rank High In Lottery Sales

CALIFORNIA LOTTERY COMMISSIONERSGregory AhernNathaniel Kirtman IIIJohn SmolinPhil Tagami

CALIFORNIA LOTTERY DIRECTOR Robert T. O’Neill

DEPUTY DIRECTOR OF SALESMichele Tong

CHIEF, NORTHERN FIELD OPERATIONSStacy Matsunami

CHIEF, SOUTHERN FIELD OPERATIONSJohn Garner

MANAGING EDITORNorma Minas

ASSISTANT EDITORTim Dugas

CONTRIBUTORSAl Alvarado, Key AccountsHarold D. Rubin-Smith, Key AccountsMin Chiang, Van Nuys DistrictLance DeAnda, Sacramento DistrictLaura DiGiambattista, HeadquartersVicki Esparza, HeadquartersJoie Hageman, East Bay DistrictElaine Hampton, Santa Fe Springs DistrictGeorge Karkazis, East Bay DistrictGreg Lau, Santa Fe Springs DistrictJudy Lagge, HeadquartersVickie Stempson, Central Valley District

COVER PHOTODoug Wood

DESIGNPage Design Group

Dear Retailer,We’ve had the best sales season on record and we’re getting

ready for even more sales! We experienced back-to-back

weeks of record sales, a MEGA Millions® jackpot that broke

all records at $656 million and a phenomenal advertising

campaign for the $5 California Lottery BLACK Scratchers®.

All of this is driving sales growth towards a grand finale this fiscal year with

contributions to public education projected at more than $1 billion!

Strike It Rich Scratchers are ready to take center stage and heat up summer

sales. We’ve also planned promotions to WOW you and your customers. A

retailer promotion begins at the end of June giving YOU a chance to strike it

rich with an opportunity to win up to $10,000! All you’ll have to do is activate

your new tickets and display five $5 games.

In mid-July, we’ll begin a player promotion that will give players a 2nd

Chance opportunity on the website to win Strike It Rich Scratchers. What’s

better than that winning feeling? Don’t miss out on this $250,000 top

prize Scratchers opportunity to make profits for you!

Make sure your customers have a chance to meet Lady Luck by keeping

the California Lottery BLACK Scratchers in your stores. You never know where

Lady Luck will choose her next lucky winner! With an edgy modern look, the

California Lottery BLACK Scratchers are a hit with players. Advertising will

continue through June. Keep up the great work when you Activate, Display

and Sell your new Scratchers. See your next Retailer Product Plan for addi-

tional details on our next retailer promotion coming your way.

Thank you for your commitment to ex$ell—your formula for success.

FOR MORE INFORMATION1-800-LOTTERY TDD 800-345-42751-800-568-8379

PROBLEM GAMBLING HELPLINE1-800-GAMBLER

WWW.CALOTTERY.BIZ

Remember to keep front and forward the $2 Stars & Stripes with a $15,000 top prize and 10 chances to win. Each sale pays tribute to California Peace Officers and assists the families of fallen officers. Additional details are available on our website www.calottery.com.

Michele Tong,

Deputy Director of Sales

2012 FAIRS AND FESTIVALSLos Angeles

Fiesta Broadway Festival

April 29

California Strawberry

Festival (Oxnard)

May 19–20

Sacramento Music Festival

May 25–28

San Diego County Fair

June 8–July 4

California State Fair,

Sacramento

July 12–29

Orange County Fair

July 13–August 12

Ventura County Fair

August 1–12

Oakland Chinatown StreetFest

August 25–26

Los Angeles County Fair

August 31–September 30

San Francisco

Autumn Moon Festival

September 22–23

The Big Fresno Fair

October 3–14

COMING THIS SUMMER ENTER TO WIN $10,000 Just Carry Five $5 Scratchers®

Summer 2012 can be your chance to win an

extra $10,000. The magic number is FIVE

$5 Scratchers activated and displayed at all

times! It’s a sure way to raise Lottery ticket

sales. Details are coming soon on how you

can win extra cash to reinvest in your busi-

ness or take a vacation. Your choice!

Activate, Display, Sell five of your

customers’ favorite $5 Scratchers from

our menu: California Lottery BLACK,

MEGA Crossword, Hot Streak, Set For Life

and coming soon Strike It Rich, Triple 777

and Black Pearls.

Reap summer profits when you

keep $5 tickets in your displays.

Details about this promotion are

coming soon from your Sales Rep.

Information will also be available

on the Lottery’s retailer website

at www.calottery.biz.

Save Mart Supermarkets has been a

California Lottery partner since 1985 serv-

ing Lottery players in Northern CA, the

Central Valley, East Bay and Silicon Valley.

Today, Save Mart Supermarkets’ Lottery

business has grown, placing them in the

top five Key Accounts in California. With

221 stores, including the acquisition of

Albertson’s stores and 45 FoodMaxx

stores, sales volume continues to grow.

Save Mart’s Steve Gaines, Senior Director

of Retail Services, is an astute businessman

who is always looking for ways to maximize

the chain’s return on investment by working

closely with his CA Lottery Key Accounts

Specialist, Harold D. Rubin-Smith, and by

understanding that Lottery products are

good for Save Mart Supermarkets’ continued

growth. He makes sure that all of his stores

follow the monthly ITVM schematics and

the Ideal Game Mix that he receives in the

Retailer Product Plan.

About half of the locations

in this chain provide

in-store pharmacies.

The supermarkets

and warehouse stores

operate under the

Save Mart Supermarkets, S-Mart,

Lucky, and FoodMaxx names. Save Mart

Supermarkets also owns distributor SMART

Refrigerated Transport. CEO Robert Piccinini

owns most of Save Mart Supermarkets,

which was founded in 1952 by his father,

Mike Piccinini, and uncle, Nick Tocco.

Lottery Sales Pave The Way to Profit For Save Mart Supermarkets

Save Mart’s Steve Gaines, Senior Director of Retail Services, is always looking for ways to grow sales with the California Lottery.

SALESMAKER May/June 2012 1 SALESMAKER May/June 2012 1

Once you have received and

confirmed your order, it’s

important that you activate

your Scratchers before you

display and sell. It is a

simple process. Simply

press “Scratchers” on your ter-

minal followed by “Pack Activation”

and scan the barcode on the pack.

Keep the activation slip that is

generated by the terminal for your

accounting purposes.

Activation starts the clock for this

pack to settle in 50 days from activa-

tion or when 80% of low tier winning

tickets are cashed. Skipping this step

can cause problems in your account-

HOW TO MANAGE YOUR

Scratchers® YOUR STEP-BY-STEP GUIDE

Take the time to manage your Scratchers inventory for higher profits. When you receive your Scratchers from the Lottery, be sure to follow the 6 easy steps:

1. Receive

2. Confirm

3. Activate

4. Display

5. Sell

6. Manage

Last issue we detailed Steps 1 & 2.

This issue will highlight Steps 3 & 4.

ing process and make your ticket man-

agement less efficient. This can also

cause customer service issues when

a player attempts to cash a ticket that

has not been activated. Your custom-

ers deserve the best service possible.

Keep them coming back by providing

ex$ell-ent customer service.

ACTIVATE

Now that you have received,

confirmed and activated

your new Scratchers, you’re

ready to display the new

Scratchers in your incounter,

stackable ticket dispensers

or ITVM. Check your Retail

Product Plan (RPP) or refer to

www.calottery.biz for information on

where to place your new tickets and

for information on which Scratchers

should be removed. Be sure every

DISPLAY4

bin is filled at all times. Empty bins

represent a loss in Lottery ticket

sales for you.

Inventory Management Is Important For ProfitsIt is important to your bottom line to

monitor how fast your inventory is mov-

ing. Lottery tickets are no exception to

the rule. Your terminal reports offers a

toolbox to assist you in keeping an accu-

rate look at inventory. Take the time to

familiarize yourself with your terminal

reports. Check out the new information

available at your fingertips.

See information on Gaming System

Upgrades on the back cover.

3

2 SALESMAKER May/June 2012

You are in business to make a profit and we’ve got tools to help you reach your goals. Take your Lottery business to the next level and catch the upward trend in sales. How? Just take the time to look over these simple tips.

Tools to Grow Your Lottery Business

How important is in-store Lottery equip-

ment placement? The answer is VERY

IMPORTANT. Nearly 60% of all purchasing

decisions are made by customers at the

register. Ticket displays and terminal place-

ment at the check-out counter raises sales

in your store because it spurs purchasing

decisions. The use of the planograms that

you receive each month in the Retailer

Product Plan (RPP) can increase your sales

by a minimum of 5%.

“TO DO” CHECKLIST➜➜ What is the ideal location for your Lottery

terminal or ticket display?

➜➜ Are Lottery ticket displays where your

customers can see them? Keep your

counters clear of other items. Less is more!

➜➜ Are your Lottery games visible and your

displays full of tickets? In this case you

want all ticket dispensers filled and new

tickets activated and displayed as soon as

you receive them. Follow the planogram

in your RPP.

ePOS (ELECTRONIC POINT OF SALE)Do you know 9% of customers buy because

a sign drew their attention to a product?

Your Lottery ePOS display can raise your

sales by an estimated $66 per week! Keep

ePOS located in a high-traffic area near your

busiest register.

➜➜ Keep your Lottery ePOS visible to your

customers and clear of all other items

that may block your customers vision of

the ePOS display.

➜➜ Adjust screen for optimal customer view.

PLAYCENTERSDo you know that your playcenter, in the

right location, can increase your sales 5.8%?

➜➜ Is the playcenter located in a visible and

high-traffic area? Proper placement of the

playcenter advertises to your customers

that you are a Lottery retailer. Make sure

your customers can easily see your

playcenter. Make it work to increase

your Lottery profits!

➜➜ Does the playcenter have the Lottery’s

latest brand and current point of

sale displayed?

➜➜ Is it clean and filled with the current

playslips for all draw games?

Your commitment to keeping up your play-

center and Scratchers equipment is key to

sales growth at your store. Keeping your

Lottery products in a convenient, visible

placement in your store shows your custom-

ers that being a Lottery retailer is important

to you. Ultimately, you will make more money

selling Lottery products each and every day!

DO THIS!

DON’TDO THIS!

KEEP BINS FULL LESS IS MORE KEEP PLAYCENTER VISIBLE

DON’T LEAVE BINS EMPTY DON’T OBSTRUCT VIEW OF ePOS

DON’T HIDE PLAYCENTER

(FOLLOW YOUR PLANOGRAM SEE RPP)

SALESMAKER May/June 2012 3

Raley’s 344Christina Lattrell (General Merchandise Manager), Manon Zonfello (Service Booth Clerk), Scott Gregerson (Store Director), Linda Swetland (Bookeeper, not shown), Vacaville

The $10 game continues to drive sales

upward. “This game has been so popular

that I load 3 packs of tickets every other

day to keep them stocked,” said Linda

Swetland. “I’ve never seen anything

like this.”

$250 MILLION CASH SPECTACULAR TOP PRIZE RETAILERS MAKE $5,000!

Bonfare MarketKevin Ly, Milpitas

Kevin Ly knows that it’s a win-win to keep

the $10 game full at all times and even

have more than one facing in his displays.

Since selling the BIG winning ticket of

$1,000,000, his sales have gone up an

additional 10%. He was already report-

ing strong sales over the past few months

since the launching of the $10 game. Other

top winners in this store won $25,000

and $10,000.

Liquor And TobaccoDung Pham, Palo Alto

Dung Pham has seen sales of Scratchers

skyrocket by 47%. This retailer always

activates and displays his tickets, offer-

ing his customers a great selection of

Scratchers. Sales are even better since

selling a $1,000,000 winning ticket.

Mary’s MobilIbrahim Mekhail, Glendale

Ibrahim knows that keeping his bins full

of Scratchers and offering customers a full

range of Lottery games sells more tickets. “At

first I didn’t think the $10 game was going to

sell well. We sold a lot of $5 and $3 games,

but when the $10 game arrived, it sold like

hotcakes,” said Ibrahim Mekhail. “My advice

is don’t underestimate your customers.

They will buy if it is available.”

My Vermont Discount LiquorSteve Yim, Los Angeles

Scratchers sales have grown by 30%

and continue to increase since the word

got out that a winning ticket was sold

here. “Sales have improved tremendously

since the arrival of the $10 ticket,” said

Steve Yim. “I increased my facings of the

$10 ticket and that increased sales even

more.” It also helps that Steve’s Lottery

business is a priority and everyone knows

it by the sign on his store.

4 SALESMAKER May/June 20124 SALESMAKER May/June 2012

LUCK HAS A NEW LOOK

The California Lottery has transformed

Lady Luck into a modern day icon with our

latest ticket—California Lottery BLACK—and

it’s paying off! Unlike any other Scratchers

we’ve introduced, this is an edgy, classy, VIP-

branded ticket that’s a hit among all players.

Besides television, movie theater and

radio advertising the Lottery is supporting

this game with billboards, bus shelters,

mobile billboards and on-line banner ads.

Adding extra presence at retail are Circle K

stores displaying the “curvy” in-store dan-

gler and Quik Stop Markets with a dangler,

door poster, brew topper, and free coffee

with a purchase of a California Lottery

BLACK Scratchers. Take advantage of the

support from the Lottery and use your

own in-store promotions to promote sales.

Be part of the sales momentum when you

activate, display and sell California Lottery

BLACK Scratchers.

Don’t forget to tell your customers to

check www.calottery.com/replay for a 2nd

Chance at winning $250,000.Wilshire World Postal, located in Los

Angeles, sold a winning SuperLotto Plus®

jackpot ticket for $8 Million on Saturday,

April 7, 2012. The owners, Hestia Lim and

her parents John Jonguk Lim and Kay Lim,

will receive a $40,000 bonus or a half of

one percent for selling the winning combi-

nation. Along with the cash windfall, sales

have already increased as word of the lucky

win spread in the area.

As Mr. Lim put it, “We are very lucky.”

The Lims have been a Lottery retailer since

September 2009, and plan to reinvest

the $40,000 back into their business.

Vacation plans are on hold right now as

Lim said, “I’m too busy to go on a vacation.”

Bakersfield Retailer Receives $85,000 for Selling $17 Million SuperLotto Plus® Jackpot

While no California Lottery player won

the historic $656 million MEGA Millions®

jackpot, one lucky

player in Bakersfield

became a multi-

millionaire. The Serrano family suc-

cessfully matched all six numbers in

the SuperLotto Plus drawing to claim a

jackpot prize worth $17 million.

The winning ticket was sold at Ming

Avenue Shell, which is located at 3698

Ming Avenue in Bakersfield. Ming

Avenue Shell will receive a bonus of

one half percent, or $85,000, for

selling the winning ticket.

Retailers can now direct players to

www.calottery.com for a new experience.

Whether your customers are looking for

the latest jackpot, winning numbers or to

preview the latest game from the Lottery,

there’s a newly designed website with

easy to access information. Players can

track their plays or enter their 2nd Chance

entries and even download a claim form.

The look and feel is optimistic, fun

and rewarding just like the Lottery brand.

Familiarize yourself with the public website

by clicking on the easy to follow links. Let

your customers know how they can double-

up on their Lottery play experience when

they visit the new www.calottery.com.

Coming soon is a redesigned

retailer website!

WWW.CALOTTERY.COM

California Lottery Website Is A Hit

Retailer Plans To Use $40,000 Bonus For Business Growth

SALESMAKER May/June 2012 5

New Upgrades ForLottery Gaming Terminal Reports

Adds “Free Tickets Cashed” line to easily calculate commissions on:

➜➜Scratchers Daily Report

➜➜Scratchers Weekly Invoice Report

➜➜Cashing Summary Report

➜ Clerk Sales Report

Gaming Terminal Changes:

➜➜A receipt will not issue for

unsuccessful pack activations;

only an error message will display

on-screen. If there is no slip,

the pack is not ready for sale.

➜➜Daily Derby prizes will display in

descending order from the top prize.

➜➜Removal of gift card button and

allowing of gift card cashing at

full value.

Coming soon, new changes to Lottery terminal reports will simplify Scratchers® Accounting for retailers as follows:

Scratchers Pack Return Report replaces the Non-Financial Pack Return Report

All returned tickets will show a dollar

amount. No more non-financial items.

Scratchers Game Activation Report

Adds “Settle” date and percent of

validations to track ticket packs

for accounting.

Scratchers Summary Inventory Report

Adds current call week (A or B)

to order week!

Scratchers Game Confirmation Report

Shows the days a pack is in

current status.

(Reports displayed are samples only)

(Reports displayed are samples only)